Total non-interest income was $1.2 million in the second quarter of 2013, compared with $1.3 million in the second quarter of 2012. The decline in non-interest income was due to lower service charges, credit life insurance income and other income, all compared with the second quarter of 2012.
Total non-interest expense declined 3.5% to $7.2 million in the second quarter of 2013, compared with $7.4 million in the second quarter of 2012. The decline in non-interest expense was due primarily to lower other expense, compared with the second quarter of 2012. Total OREO related expenses were $425,000 in the second quarter of 2013, which marked the second lowest quarter of OREO expenses in over two years. OREO totaled $12.4 million at June 30, 2013, an 18% decline from $15.0 million at June 30, 2012, representing the fourth consecutive quarterly decrease in OREO.
United Security Bancshares and First United Security Bank continued to be rated as ‘well-capitalized,’ the highest regulatory rating, at the end of the second quarter of 2013. Total risk-based capital was 19.0% for the Company and 19.2% for the Bank, significantly above the regulatory requirement of 10.0% for a well-capitalized institution and the minimum regulatory requirement of 8.0%. Tier 1 risk-based capital was 17.8% for the Company and 17.9% for the Bank, both measures significantly above the regulatory requirement of 6.0% for a well-capitalized institution and the minimum regulatory requirement of 4.0%. Tier 1 leverage ratio rose to 11.3% for the Company and 11.4% for the Bank.
Six Months ResultsFor the first six months of 2013, net income was $2.1 million, or $0.34 per diluted share, compared with $133,000, or $0.02 per diluted share, for the first six months of 2012. The increase in earnings for the first six months of 2013 was due to a decline in the provision for loan losses, growth in non-interest income and lower non-interest expenses, all compared with the first six months of 2012.
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