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United Security Bancshares, Inc. Reports Improved Second Quarter Results

Shareholders’ equity was $66.7 million, or $11.09 per share, at June 30, 2012, compared with $66.2 million, or $11.01 per share, at December 31, 2011, and $77.9 million, or $12.96 per share, at June 30, 2011. United Security did not declare a cash dividend on its common stock for the second quarter of 2012.

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)

 
    June 30,     December 31,
2012 2011
(Unaudited)
ASSETS
Cash and Due from Banks $ 11,992 $ 9,491
Interest Bearing Deposits in Banks   62,809     43,306  
Total Cash and Cash Equivalents 74,801 52,797
Investment Securities Available-for-Sale, at fair market value 107,457 122,170
Investment Securities Held-to-Maturity, at cost 5,163 1,170
Federal Home Loan Bank Stock, at cost 1,418 2,861

Loans, net of allowance for loan losses of $20,154 and $22,267, respectively

355,411

381,085

Premises and Equipment, net 9,040 9,050
Cash Surrender Value of Bank-Owned Life Insurance 13,116 12,922
Accrued Interest Receivable 3,370 3,958
Investment in Limited Partnerships 1,416 1,456
Other Real Estate Owned 15,005 16,774
Other Assets   17,088     17,567  
Total Assets $ 603,285   $ 621,810  
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits $ 527,247 $ 527,073
Accrued Interest Expense 574 790
Short-Term Borrowings 714 356
Long-Term Debt - 20,000
Other Liabilities   8,009     7,384  
Total Liabilities   536,544     555,603  
Shareholders’ Equity:

Common Stock, par value $0.01 per share, 10,000,000 shares authorized; 7,322,560 shares issued; 6,017,732 and 6,015,737 shares outstanding, respectively

 

73

 

73

Surplus 9,259 9,259
Accumulated Other Comprehensive Income, net of tax 3,347 3,004
Retained Earnings 75,224 75,091

Less Treasury Stock: 1,304,828 and 1,306,823 shares at cost, respectively

(21,150

)

(21,208

)

Noncontrolling Interest   (12 )   (12 )
 
Total Shareholders’ Equity   66,741     66,207  
 
Total Liabilities and Shareholders’ Equity $ 603,285   $ 621,810  
 

 

UNITED SECURITY BANCSHARES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in Thousands, Except Per Share Data)

 
    Three Months Ended     Six Months Ended
June 30, June 30,
2012     2011 2012     2011
(Unaudited) (Unaudited)
 
INTEREST INCOME:
Interest and Fees on Loans $ 8,883 $ 9,270 $ 17,966 $ 18,357
Interest on Investment Securities   865   1,337     1,792     2,694  
Total Interest Income 9,748 10,607 19,758 21,051
 
INTEREST EXPENSE:
Interest on Deposits 1,147 1,579 2,522 3,176
Interest on Borrowings   30   200     115     470  
Total Interest Expense   1,177   1,779     2,637     3,646  
 
NET INTEREST INCOME 8,571 8,828 17,121 17,405
 
PROVISION FOR LOAN LOSSES   468   1,609     2,683     2,914  
 

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

8,103

7,219

14,438

14,491

 
NON-INTEREST INCOME:

Service and Other Charges on Deposit Accounts

603

722

1,231

1,438

Credit Life Insurance Income 222 218 341 340
Other Income   506   1,256     1,033     1,607  
Total Non-Interest Income 1,331 2,196 2,605 3,385
 
NON-INTEREST EXPENSE:
Salaries and Employee Benefits 3,714 3,851 7,479 7,421
Occupancy Expense 480 467 928 943
Furniture and Equipment Expense 343 317 653 620
Impairment on Other Real Estate 30 402 2,864 886
Loss on Sale of Other Real Estate 266 169 460 508
Other Expense   2,607   2,945     4,886     5,208  
Total Non-Interest Expense   7,440   8,151     17,270     15,586  
 

INCOME (LOSS) BEFORE INCOME TAXES

1,994

1,264

(227

)

2,290

PROVISION FOR (BENEFIT FROM) INCOME TAXES

 

623

 

361

   

(360

)

 

568

 
NET INCOME $ 1,371 $ 903   $ 133   $ 1,722  

Less: Net Loss Attributable to Noncontrolling Interest

 

-

 

(1

)

 

-

   

(1

)

NET INCOME ATTRIBUTABLE TO USBI $ 1,371 $ 904 $ 133 $ 1,723

BASIC AND DILUTED NET INCOME ATTRIBUTABLE TO USBI PER SHARE

$

0.23

$

0.15

 

$

0.02

 

$

0.29

 
 
DIVIDENDS PER SHARE $ - $ -   $ -   $ 0.04  




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