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United Security Bancshares, Inc. Reports Third Quarter Results

Stocks in this article: USBI

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 FINANCIAL CONDITION

(Dollars in Thousands, Except Per Share Data)

 
  September 30,   December 31,
2011 2010
(Unaudited)
ASSETS
 
Cash and Due from Banks $ 10,884 $ 10,330
Interest-Bearing Deposits in Banks   34,668     3,201  
Total Cash and Cash Equivalents 45,552 13,531
Investment Securities Available-for-Sale, at fair market value 140,165 135,877
Investment Securities Held-to-Maturity, at cost 1,170 1,210
Federal Home Loan Bank Stock, at cost 3,471 5,093
Loans, net of allowance for loan losses of $15,261 and $20,936, respectively 382,387 387,478
Premises and Equipment, net 9,142 16,609
Cash Surrender Value of Bank-Owned Life Insurance 12,817 12,499
Accrued Interest Receivable 3,941 5,110
Goodwill 4,098 4,098
Investment in Limited Partnerships 1,476 1,766
Other Real Estate Owned 22,993 25,632
Other Assets   11,580     12,836  
Total Assets $ 638,792   $ 621,739  
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits $ 531,312 $ 503,530
Accrued Interest Expense 859 2,235
Short-Term Borrowings 1,307 970
Long-Term Debt 20,000 30,000
Other Liabilities   7,852     10,481  
Total Liabilities   561,330     547,216  
Commitments and Contingencies
Shareholders’ Equity:

Common Stock, par value $0.01 per share, 10,000,000 sharesauthorized; 7,317,560 shares issued; 6,010,737 and 6,011,012 sharesoutstanding, respectively

73

73

Surplus 9,233 9,233
Accumulated Other Comprehensive Income, net of tax 4,796 3,412
Retained Earnings 84,580 84,408
Less Treasury Stock: 1,306,823 and 1,306,548 shares at cost, respectively (21,208 ) (21,205 )
Noncontrolling Interest   (12 )   (1,398 )
 
Total Shareholders’ Equity   77,462     74,523  
 
Total Liabilities and Shareholders’ Equity $ 638,792   $ 621,739  

 

UNITED SECURITY BANCSHARES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in Thousands, Except Per Share Data)

 
  Three Months Ended   Nine Months Ended
September 30, September 30,
2011   2010 2011   2010
(Unaudited) (Unaudited)
 
INTEREST INCOME:
Interest and Fees on Loans $ 9,342 $ 9,754 $ 27,699 $ 28,600
Interest on Investment Securities   1,357     1,663     4,051     5,256  
Total Interest Income 10,699 11,417 31,750 33,856
 
INTEREST EXPENSE:
Interest on Deposits 1,566 1,913 4,742 5,871
Interest on Borrowings   161     539     631     2,035  
Total Interest Expense   1,727     2,452     5,373     7,906  
 
NET INTEREST INCOME 8,972 8,965 26,377 25,950
 
PROVISION FOR LOAN LOSSES   2,262     1,386     5,176     6,811  
 

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

6,710 7,579 21,201 19,139
 
NON-INTEREST INCOME:
Service and Other Charges on Deposit Accounts 731 814 2,169 2,263
Credit Life Insurance Income 236 250 576 592
Other Income   628     494     2,235     5,838  
Total Non-Interest Income 1,595 1,558 4,980 8,693
 
NON-INTEREST EXPENSE:
Salaries and Employee Benefits 3,817 3,476 11,238 10,562
Occupancy Expense 519 493 1,462 1,421
Furniture and Equipment Expense 332 311 952 937
Impairment on Other Real Estate 2,956 2,031 3,842 2,431
Loss on Sale of Other Real Estate 328 129 836 641
Other Expense   2,641     2,446     7,849     7,456  
Total Non-Interest Expense   10,593     8,886     26,179     23,448  
 
INCOME (LOSS) BEFORE INCOME TAXES (2,288 ) 251 2 4,384
 

PROVISION FOR (BENEFIT FROM) INCOME TAXES

 

(979

)

 

(100

)

 

(411

)

 

1,221

 
 
NET INCOME (LOSS) $ (1,309 ) $ 351   $ 413   $ 3,163  

Less: Net Loss Attributable to Noncontrolling Interest

 

-

   

-

   

(1

)

 

(125

)

NET INCOME (LOSS) ATTRIBUTABLE TO USBI $ (1,309 ) $ 351   $ 414   $ 3,288  
BASIC AND DILUTED NET INCOME (LOSS)
ATTRIBUTABLE TO USBI PER SHARE $ (0.22 ) $ 0.06   $ 0.07   $ 0.55  
 
DIVIDENDS PER SHARE $ 0.00   $ 0.11   $ 0.04   $ 0.33  




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