Total non-interest expense increased 12.6% to $8.2 million in the second quarter of 2011, compared with $7.2 million in the second quarter of 2010. Salary and benefit costs rose 6.2% to $3.9 million, other real estate expenses increased 8.3% to $571,000 and other expense was up 28.9% to $2.9 million, all compared with the second quarter of 2010.
United Security Bancshares and First United Security Bank continued to be rated as ‘well-capitalized,’ the highest regulatory rating, as of June 30, 2011. Total risk-based capital was 17.1% for the Company and for the Bank, compared with a regulatory requirement of 10.0% for a well-capitalized institution and a minimum regulatory requirement of 8.0%. Tier 1 risk-based capital was 15.8% for the Company and for the Bank, both measures significantly above the requirement of 6.0% for a well-capitalized institution and minimum regulatory requirement of 4.0%.
Six Months Results
For the first six months of 2011, net income attributable to USBI was $1.7 million, or $0.29 per diluted share, compared with $2.9 million, or $0.49 per diluted share, for the first six months of 2010.For the six months ended June 30, 2011, net interest income increased 2.5% to $17.4 million, compared with $17.0 million for the same period of 2010. Net interest margin improved to 6.18% for the first six months of 2011 from 5.61% in the first six months of 2010. Provision for loan losses was $2.9 million in the first six months of 2011, compared with $5.4 million in the first six months of 2010. Non-interest income declined to $3.4 million for the first six months of 2011, compared with $7.0 million for the same period of 2010. The 2010 results included an insurance settlement of $4.2 million arising from the proceeds of the Company’s fidelity bond claim that was included in other income for the first six months of 2010.