United Security Bancshares Declares Stock Dividend
December 19 2008 - 6:25PM
PR Newswire (US)
FRESNO, Calif., Dec. 19 /PRNewswire-FirstCall/ -- Dennis R. Woods,
President and Chief Executive Officer of United Security Bancshares
http://www.unitedsecuritybank.com/ (NASDAQ:UBFO) reported that the
Board of Directors of United Security Bancshares declared a first
quarter 2009 stock dividend of one percent (1%). The stock dividend
replaces the quarterly cash dividend and reflects a similar value.
The stock dividend will be paid to shareholders of record on
January 9, 2009 and the dividend shares will be issued on January
21, 2009. Regarding the announcement, Woods said, "The Company paid
out $25 million from shareholders equity over the past two years in
cash dividends and by purchasing shares for retirement, to benefit
shareholders. The change in the dividend from cash to stock was
employed last quarter as a precaution against the uncertainties in
the 1-4 family residential real estate market and its impact on the
Company's construction and related land and lot loan portfolio.
Those conditions persist but the Company's capital position remains
strong. However, the Board of Directors once again decided, given
the current uncertainties in the economy and unprecedented declines
in real estate valuations in our markets, it is prudent to retain
capital in this environment. Many of our shareholders use the cash
dividends to purchase additional shares each quarter and the stock
dividend will make that unnecessary. Shareholders who prefer cash
may sell all or a portion of the stock dividend shares in the open
market to meet their cash needs. This change in dividend policy is
in concert with managing the capital of the Company in the best
interest of the shareholders. After the uncertainties in the
economy subside, the Board of Directors expects to resume paying
the quarterly cash dividend." DATASOURCE: United Security
Bancshares CONTACT: Dennis R. Woods, President and Chief Executive
Officer of United Security Bank, +1-559-248-4928 Web site:
http://www.unitedsecuritybank.com/
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