United Security Bancshares, Inc. (NASDAQ: USBI) today reported a 78.9% increase in net income to $3.9 million, or $0.65 per diluted share, for the year ended December 31, 2013, compared with $2.2 million, or $0.36 per diluted share, for the year ended December 31, 2012. Net income for the fourth quarter of 2013 rose 8.2% to $955,000, or $0.16 per diluted share, compared with net income of $883,000, or $0.15 per diluted share, for the fourth quarter of 2012.
“We made solid progress in building our profitability and reducing problem assets since last year,” stated James F. House, President and CEO of United Security Bancshares, Inc. “At the close of 2013, we marked our seventh consecutive quarter of positive income as we benefited from our program to reduce non-performing loans, other real estate owned (OREO) and expenses related to OREO. The fourth quarter of 2013 also marked our sixth consecutive quarter of reducing OREO and our fifth consecutive quarter of reducing non-performing assets. Our non-performing assets were down 44% to $21.5 million compared with the fourth quarter of last year.”
“We have seen some indications of improvement in our local economy, primarily related to rising timber prices and improvements in certain customer balance sheets. However, economic conditions remain weak in certain other sectors, including real estate development and construction. Furthermore, while we continue our program of reducing non-performing loans, competition in the commercial lending space remains fierce. As a result of the mixed economic conditions and the competitive environment, new loan production remained below the level of loan payoffs and reduction in problem assets for the year. We expect this trend to continue to restrain our earnings growth in 2014. Our primary focus in 2014 will be to add quality loans while continuing to reduce non-performing loans. We believe that making progress in these areas will be key to building future profitability. We are fortunate to have a strong capital base that is well above the minimum regulatory requirements and that will support our future growth,” continued Mr. House.
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