For the six months ended June 30, 2013, net interest income was $15.5 million, compared with $17.1 million for the same period of 2012. Net interest margin declined to 6.0% for the first six months of 2013 from 6.1% in the first six months of 2012.
Provision for loan losses was $559,000 in the first six months of 2013, compared with $2.7 million in the first six months of 2012.
Non-interest income increased to $2.9 million for the first six months of 2013, compared with $2.6 million for the same period of 2012. The increase was due primarily to higher other income in 2013 that included a $484,000 prepayment penalty from the early payoff of a mortgage backed pool, partially offset by lower service and other charges on deposit accounts and credit life insurance income, compared with the first six months of 2012.
Non-interest expense was down 13.9% to $14.9 million in the first six months of 2013, compared with $17.3 million in the first six months of 2012. The decline in non-interest expense was due primarily to a $2.5 million decrease in impairment of OREO, lower furniture and equipment expense and lower other expense, all compared with the first six months of 2012.Shareholders’ equity was $69.0 million, or $11.46 per share, at June 30, 2013, compared with $68.6 million, or $11.40 per share, at December 31, 2012, and $66.7 million, or $11.09 per share, at June 30, 2012. The increase in shareholders’ equity from retained earnings of $2.1 million was offset somewhat by a $1.7 million decrease in accumulated other comprehensive income, due to a decline in the market value of investment securities available-for- sale. The Company did not declare a cash dividend on its common stock for the second quarter of 2013. 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.”