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United Security Bancshares, Inc. Reports 2010 Results

About United Security Bancshares, Inc.

United Security Bancshares, Inc. is a bank holding company that operates nineteen banking offices in Alabama through First United Security Bank. In addition, the Company’s operations include Acceptance Loan Company, Inc., a consumer loan company, and FUSB Reinsurance, Inc., an underwriter of credit life and credit accident and health insurance policies sold to the bank’s and ALC’s consumer loan customers. The Company’s stock is traded on the Nasdaq Capital Market under the symbol “USBI.”

Forward-Looking Statements

This press release contains forward-looking statements, as defined by federal securities laws. Statements contained in this press release that are not historical facts are forward-looking statements. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. USBI undertakes no obligation to update these statements following the date of this press release, except as required by law. In addition, USBI, through its senior management, may make from time to time forward-looking public statements concerning the matters described herein. Such forward-looking statements are necessarily estimates reflecting the best judgment of USBI’s senior management based upon current information and involve a number of risks and uncertainties. Certain factors that could affect the accuracy of such forward-looking statements are identified in the public filings made by USBI with the Securities and Exchange Commission, and forward-looking statements contained in this press release or in other public statements of USBI or its senior management should be considered in light of those factors. With respect to the adequacy of the allowance for loan losses for USBI, these factors include, but are not limited to, the rate of growth (or lack thereof) in the economy, the relative strength and weakness in the consumer and commercial credit sectors and in the real estate markets and collateral values. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements.

UNITED SECURITY BANCSHARES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in Thousands, Except Per Share Data)

 
Three Months Ended Twelve Months Ended
December 31, December 31,
  2010       2009     2010       2009  
(Unaudited) (Unaudited)
 
INTEREST INCOME:
Interest and Fees on Loans $ 9,486 $ 9,645 $ 38,086 $ 38,795
Interest on Investment Securities   1,486     2,111     6,742     8,679  
Total Interest Income 10,972 11,756 44,828 47,474
 
INTEREST EXPENSE:
Interest on Deposits 1,729 2,066 7,600 9,581
Interest on Borrowings   438     826     2,473     3,619  
Total Interest Expense   2,167     2,892     10,073     13,200  
 
NET INTEREST INCOME 8,805 8,864 34,755 34,274
 
PROVISION FOR LOAN LOSSES   3,847     4,244     10,658     9,101  
 
NET INTEREST INCOME AFTER

PROVISION FOR LOAN LOSSES

4,958

4,620

24,097

25,173

 
NON-INTEREST INCOME:
Service and Other Charges on Deposit

Accounts

798

721

3,061

2,871

Credit Life Insurance Income 347 351 939 997
Other (Loss) Income   (582 )   312     4,491     3,927  
Total Non-Interest Income 563 1,384 8,491 7,795
 
NON-INTEREST EXPENSE:
Salaries and Employee Benefits 3,203 3,419 13,765 13,594
Occupancy Expense 439 489 1,860 1,901
Furniture and Equipment Expense 323 348 1,260 1,274
Impairment on Other Real Estate Owned 1,895 192 3,538 637
Other Expense   1,904     2,574     10,024     9,410  
Total Non-Interest Expense   7,764     7,022     30,447     26,816  
 
(LOSS) INCOME BEFORE INCOME

TAXES

(2,243

)

(1,018

)

2,141

6,152

(BENEFIT FROM) PROVISION FOR

INCOME TAXES

 

(1,027

)

 

(604

)

 

194

   

1,562

 
NET (LOSS) INCOME $ (1,216 ) $ (414 ) $ 1,947   $ 4,590  
Less: Net Loss Attributable to

Noncontrolling Interest

 

-

   

-

   

(125

)

 

(164

)

NET (LOSS) INCOME ATTRIBUTABLE

TO USBI

$

(1,216

)

$

(414

)

$

2,072

 

$

4,754

 
BASIC AND DILUTED NET (LOSS)
INCOME ATTRIBUTABLE TO USBI

PER SHARE

$

(0.20

)

$

(0.07

)

$

0.34

 

$

0.79

 
 
DIVIDENDS PER SHARE $ 0.11   $ 0.11   $ 0.44   $ 0.60  

 

UNITED SECURITY BANCSHARES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in Thousands, Except Per Share Data)

   
December 31, December

31,

  2010     2009  
(Unaudited)
ASSETS
Cash and Due from Banks $ 10,330 $ 12,323
Interest Bearing Deposits in Banks   3,202     126  
Total Cash and Cash Equivalents 13,532 12,449
Federal Funds Sold - 4,545
Investment Securities Available-for-Sale, at fair market value 135,877 194,754
Investment Securities Held-to-Maturity, at cost 1,210 1,250
Federal Home Loan Bank Stock, at cost 5,093 5,700
Loans, net of allowance for loan losses of $12,463 and $10,004,

respectively

395,951 402,504
Premises and Equipment, net 16,609 17,253
Cash Surrender Value of Bank-Owned Life Insurance 12,499 12,037
Accrued Interest Receivable 5,110 5,095
Goodwill 4,098 4,098
Investment in Limited Partnerships 1,766 1,925
Other Real Estate Owned 25,632 21,439
Other Assets   9,616     8,705  
Total Assets $ 626,993   $ 691,754  
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits $ 503,530 $ 513,053
Accrued Interest Payable 2,236 2,477
Short-Term Borrowings 970 620
Long-Term Debt 30,000 85,000
Other Liabilities   10,481     9,140  
Total Liabilities   547,217     610,290  
Commitments and Contingencies
Shareholders’ Equity:
Common Stock, par value $0.01 per share, 10,000,000 shares authorized;
7,317,560 shares issued; 6,011,012 and 6,017,582 shares outstanding,

respectively

73

73

Surplus 9,233 9,233
Accumulated Other Comprehensive Income, net of tax 3,412 4,316
Retained Earnings 89,661 90,242
Less Treasury Stock: 1,306,548 and 1,299,978 shares at cost, respectively (21,205 ) (21,127 )
Noncontrolling Interest   (1,398 )   (1,273 )
 
Total Shareholders’ Equity   79,776     81,464  
 
Total Liabilities and Shareholders’ Equity $ 626,993   $ 691,754  




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