United Security Bancshares, Inc. (Nasdaq: USBI) today reported an increase in net income attributable to USBI for the fourth quarter of 2012 to $883,000, or $0.15 per diluted share, compared with a net loss attributable to USBI of ($9.5 million), or ($1.58) per diluted share, for the fourth quarter of 2011. Net income attributable to USBI rose to $2.2 million, or $0.36 per diluted share, for the year ended December 31, 2012, compared with a net loss attributable to USBI of ($9.1 million), or ($1.51) per diluted share, in 2011. “The fourth quarter of 2012 was our third consecutive quarter to report growth in net income, which resulted in large part from reduced non-interest expenses, charges related to other real estate and non-performing loans, including significant reductions in charge-offs and our provision for loan losses,” stated James F. House, President and CEO of United Security Bancshares, Inc. “We have been very successful over the past year in improving our asset quality, which has been a key driver in our improved earnings performance." “We reduced non-performing loans by $8.8 million from the third quarter of 2012. We benefited from increased sales of other real estate owned (OREO) and successfully resolved a large loan that was placed on non-accrual status in the third quarter. We are pleased with our progress in reducing the level of non-performing assets, as highlighted by non-accrual loans declining $8.0 million to $23.6 million and OREO declining $0.3 million to $13.3 million from the third quarter of 2012. Our charge-offs and write-downs of OREO were also down from last year. In addition, our loans accruing 90-days past due declined $0.5 million to $1.6 million as of December 31, 2012, as compared to $2.1 million as of September 30, 2012. Although we made solid progress in reducing non-performing assets during 2012, they still remain at elevated levels, and we remain focused on resolving problem loans and selling OREO to improve our long-term profitability."