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United Security Bancshares, Inc. Reports Growth In Third Quarter And Nine Months Net Income

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. Specifically, with respect to the statement regarding the return to accrual status of the referenced loan relationship, these factors include, but are not limited to, general economic, market and other conditions that could affect the borrower’s ability to repay. Additionally, 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,
2012 2011
(Unaudited)
ASSETS
 
Cash and Due from Banks $ 9,800 $ 9,491
Interest-Bearing Deposits in Banks   52,035     43,306  
Total Cash and Cash Equivalents 61,835 52,797
Federal Funds Sold 5,000 -
Investment Securities Available-for-Sale, at fair market value 102,572 122,170
Investment Securities Held-to-Maturity, at cost 12,191 1,170
Federal Home Loan Bank Stock, at cost 936 2,861
Loans, net of allowance for loan losses of $19,886 and $22,267, respectively 344,733 381,085
Premises and Equipment, net 8,949 9,050
Cash Surrender Value of Bank-Owned Life Insurance 13,209 12,922
Accrued Interest Receivable 3,308 3,958
Investment in Limited Partnerships 854 1,456
Other Real Estate Owned 13,608 16,774
Other Assets   17,127     17,567  
Total Assets $ 584,322   $ 621,810  
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits $ 506,628 $ 527,073
Accrued Interest Expense 523 790
Short-Term Borrowings 1,332 356
Long-Term Debt - 20,000
Other Liabilities   7,745     7,384  
Total Liabilities   516,228     555,603  
 
Shareholders’ Equity:

Common Stock, par value $0.01 per share, 10,000,000 shares authorized; 7,327,560 shares issued; 6,023,622 and 6,015,737 shares outstanding, respectively

73

73

Surplus 9,284 9,259
Accumulated Other Comprehensive Income, net of tax 3,470 3,004
Retained Earnings 76,403 75,091
Less Treasury Stock: 1,303,938 and 1,306,823 shares at cost, respectively (21,123 ) (21,208 )
Noncontrolling Interest   (13 )   (12 )
 
Total Shareholders’ Equity   68,094     66,207  
 
Total Liabilities and Shareholders’ Equity $ 584,322   $ 621,810  

 
 

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,
2012   2011 2012   2011
(Unaudited) (Unaudited)
 
INTEREST INCOME:
Interest and Fees on Loans $ 8,488 $ 9,342 $ 26,454 $ 27,699
Interest on Investment Securities   840   1,357     2,632   4,051  
Total Interest Income 9,328 10,699 29,086 31,750
 
INTEREST EXPENSE:
Interest on Deposits 1,027 1,566 3,549 4,742
Interest on Borrowings   4   161     119   631  
Total Interest Expense   1,031   1,727     3,668   5,373  
 
NET INTEREST INCOME 8,297 8,972 25,418 26,377
 
PROVISION FOR LOAN LOSSES   492   2,262     3,175   5,176  
 

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

7,805 6,710 22,243 21,201
 
NON-INTEREST INCOME:
Service and Other Charges on Deposit Accounts 639 731 1,870 2,169
Credit Life Insurance Income 272 236 613 576
Other Income   542   628     1,575   2,235  
Total Non-Interest Income 1,453 1,595 4,058 4,980
 
NON-INTEREST EXPENSE:
Salaries and Employee Benefits 3,433 3,817 10,912 11,238
Occupancy Expense 488 519 1,416 1,462
Furniture and Equipment Expense 317 332 970 952
Impairment on Other Real Estate 377 2,956 3,241 3,842
Loss on Sale of Other Real Estate 572 328 1,032 836
Other Expense   2,375   2,641     7,261   7,849  
Total Non-Interest Expense   7,562   10,593     24,832   26,179  
 
INCOME (LOSS) BEFORE INCOME TAXES 1,696 (2,288 ) 1,469 2
 

PROVISION FOR (BENEFIT FROM) INCOME TAXES

 

517

 

(979

)

 

157

 

(411

)

 
NET INCOME (LOSS) $ 1,179 $ (1,309 ) $ 1,312 $ 413  

Less: Net Loss Attributable to Noncontrolling Interest

 

-

 

-

   

-

 

(1

)

NET INCOME (LOSS) ATTRIBUTABLE TO USBI $ 1,179 $ (1,309 ) $ 1,312 $ 414  

BASIC AND DILUTED NET INCOME (LOSS) ATTRIBUTABLE TO USBI PER SHARE

$ 0.20 $ (0.22 ) $ 0.22 $ 0.07  
 
DIVIDENDS PER SHARE $ 0.00 $ 0.00   $ 0.00 $ 0.04  




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