FRESNO, Calif., April 28 /PRNewswire-FirstCall/ -- Dennis R. Woods, President and Chief Executive
Officer of United Security Bancshares
(http://www.unitedsecuritybank.com/) (Nasdaq: UBFO) reported today
unaudited consolidated net income of $442,000, or $0.04
per basic and diluted common share, for the quarter ended
March 31, 2010, compared to
$921,000, or $0.07 per basic and diluted common share for the
quarter ended March 31, 2009, and a
net loss of ($426,000) or
($0.03) per basic and diluted common
share for the trailing quarter ended December 31, 2009.
Annualized return on average equity (ROE) for the quarter ended
March 31, 2010 was 2.33%, compared to
4.65% for the same period in 2009, and (2.18%) for the trailing
quarter ended December 31, 2009.
Annualized return on average assets (ROA) was 0.25% for quarter
ended March 31, 2010, compared to
.50% for the same period in 2009, and (.23%) for the trailing
quarter ended December 31, 2009.
The Board of Directors of United Security Bancshares declared a
2nd quarter 2010 stock dividend of one percent (1%). The stock
dividend replaces the quarterly cash dividend. The stock dividend
was payable to shareholders of record on April 9, 2010 and the shares were issued on
April 21, 2009.
Woods added, "The residential real estate market continues to
show signs of improvement in California! Median single family dwelling
prices were $255,000 for March 2010, up 2.4 percent from February 2010, and up 14.3 percent from a year
ago March. The year-over-year increase was the fifth month in a
row, following 27 months of year-over-year declines. The number of
new and resold houses and condos sold in March 2010 are estimated at 37,295 units
statewide, up 32.7 percent from February
2010, and up 3.0 percent from March
2009. The number of notices of default fell 4.2% from the
prior quarter marking the fourth consecutive quarter of decline of
residential foreclosure activity in California."
Shareholders' equity at March 31,
2010 was $76.8 million, up
$1 million from the trailing quarter
ended December 31, 2009 and down
$3.0 million from shareholders'
equity at March 31, 2009, which was
$79.8 million.
Net interest income for the 1st quarter 2010 was $7.16 million, up from $7.15 million the 1st quarter of 2009. The net
interest margin increased from 4.48% in the 1st quarter of 2009 to
4.78% in the 1st quarter of 2010. For the trailing quarter ended
December 31, 2009, net interest
income was $7.25 million and the net
interest margin was 4.68%.
Noninterest income for the 1st quarter of 2010 was $1,313,000, up $172,000 from $1,142,000 in 2009 for an increase of 15.1%. The
increase resulted primarily from the gain from the fair value
adjustment to the carrying amount of Trust Preferred Securities
during the 1st quarter of 2010 that was $215,000 greater, compared with the 1st quarter
of 2009.
Other operating expenses for the three months ended March 31, 2010 were $6,325,000 compared with $5,669,000 for the same period in 2009, an
increase of $656,000 or 11.6%.
Several expense items in combination account for the difference.
Four expense components accounted for much of the differences for
the three month periods. 1) FDIC assessments increased by
$248,000, 2) write-downs on
foreclosed properties were up $656,000, 3) impairment on collateralized
mortgage obligations were up $81,000,
and 4) other loan expense was down $190,000.
The provision for loan loss was $1,631,000 for the 1st quarter of 2010 and
$1,351,000 for the 1st quarter of
2009. In determining the adequacy of the allowance for loan losses,
Management's judgment is the primary determining factor for
establishing the amount of the provision for loan losses and
management considers the allowance for loan and lease losses at
March 31, 2010 to be adequate.
Non-performing assets decreased to 10.14% of total assets on
March 31, 2010 from 11.26% on
March 31, 2009 and 10.32% on
December 31, 2009. Net charged-off
loans were .35% of average loans during the 1st quarter of 2010
compared with 1.82% during the 1st quarter 2009 and 2.22% for the
trailing quarter ended December 31,
2009.
United Security Bancshares is a $710+ million bank holding
company. United Security Bank, its principal subsidiary is a state
chartered bank and member of the Federal Reserve Bank of
San Francisco.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended
and the Company intends such statements to be covered by the safe
harbor provisions for forward-looking statements contained in the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements are based on management's knowledge and belief as of
today and include information concerning the Company's possible or
assumed future financial condition, and its results of operations,
business and earnings outlook. These forward-looking statements are
subject to risks and uncertainties. A number of factors, some of
which are beyond the Company's ability to control or predict, could
cause future results to differ materially from those contemplated
by such forward-looking statements. These factors include (1)
changes in interest rates, (2) significant changes in banking laws
or regulations, (3) increased competition in the company's market,
(4) other-than-expected credit losses, (5) earthquake or other
natural disasters impacting the condition of real estate
collateral, (6) the effect of acquisitions and integration of
acquired businesses, (7) the impact of proposed and/or recently
adopted changes in laws, and regulations on the Company and its
business, including California tax
legislation and the subsequent Dec. 31,
2003, announcement by the Franchise Tax Board regarding the
taxation of REITs and RICs, (8) changing bank regulatory
conditions, policies, whether arising as new legislation or
regulatory initiatives or changes in our regulatory
classifications, that could lead to restrictions on activities of
banks generally or as to the Bank, including specifically the
formal order between the Federal Reserve Bank of San Francisco and the Company and the Bank,
and (9) unknown economic impacts caused by the State of California's budget issues.
Management cannot predict at this time the severity or duration of
the effects of the recent business slowdown on our specific
business activities and profitability. Weaker or a further decline
in capital and consumer spending, and related recessionary trends
could adversely affect our performance in a number of ways
including decreased demand for our products and services and
increased credit losses. Likewise, changes in interest rates, among
other things, could slow the rate of growth or put pressure on
current deposit levels and affect the ability of borrowers to repay
loans. Forward-looking statements speak only as of the date they
are made, and the company does not undertake to update
forward-looking statements to reflect circumstances or events that
occur after the date the statements are made, or to update earnings
guidance including the factors that influence earnings. For a more
complete discussion of these risks and uncertainties, see the
Company's Annual Report on Form 10-K for the year ended
December 31, 2009, and particularly
the section of Management's Discussion and Analysis. Readers
should carefully review all disclosures we file from time to time
with the Securities and Exchange Commission ("SEC").
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United Security Bancshares
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Consolidated Balance Sheets
(unaudited)
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(Dollars in thousands)
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March 31,
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March 31,
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December 31,
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2010
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2009
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2009
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Cash & nonint.-bearing deposits in
banks
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$16,607
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$14,610
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$17,644
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Interest-bearing deposits in banks
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3,970
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3,968
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3,313
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Federal funds sold
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21,160
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0
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11,585
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Investment securities AFS
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68,855
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87,621
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71,411
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Loans, net of unearned fees
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520,040
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541,915
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507,707
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Less: allowance for loan losses
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(16,204)
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(10,448)
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(15,016)
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Loans, net
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503,836
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531,467
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492,692
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Premises and equipment, net
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13,121
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13,959
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13,296
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Intangible assets
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9,165
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13,133
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9,425
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Other assets
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74,916
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68,632
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73,201
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TOTAL ASSETS
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$711,629
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$733,391
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$692,568
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Deposits:
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Noninterest-bearing demand & NOW
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183,919
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186,758
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187,754
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Savings & Money Market
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153,531
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138,479
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144,904
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Time
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245,032
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196,902
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229,002
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Total deposits
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582,482
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522,139
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561,660
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Borrowed funds
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37,000
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113,185
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40,000
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Other liabilities
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4,696
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6,338
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4,371
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Junior subordinated debentures
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10,616
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11,887
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10,716
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TOTAL LIABILITIES
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$634,794
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$653,550
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$616,747
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Shareholders' equity:
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Common shares outstanding:
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12,621,452 at Mar. 31, 2010
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12,622,013 at Mar. 31, 2009
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$38,235
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$35,776
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$37,575
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Retained earnings
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40,286
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47,720
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40,499
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Accumulated other comprehensive income
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(1,686)
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(3,656)
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(2,253)
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Total shareholders' equity
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76,835
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79,840
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75,820
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TOTAL LIABILITIES &
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SHAREHOLDERS' EQUITY
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711,629
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733,391
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692,568
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United Security Bancshares
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Three
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Three
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Three
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Consolidated Statements of Income
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Months
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Months
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Months
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(dollars in 000's, except per share
amounts)
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Ended
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Ended
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Ended
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(unaudited)
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March 31,
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March 31,
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December 31,
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2010
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2009
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2009
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Interest income
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$8,426
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$9,312
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$8,850
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Interest expense
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1,264
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2,164
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1,605
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Net interest income
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7,162
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7,148
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7,245
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Provision for loan losses
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1,631
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1,351
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4,781
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Other income
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1,313
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1,142
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2,870
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Other expenses
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6,325
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5,669
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6,353
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Income before income tax provision
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518
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1,269
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(1,020)
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Provision for income taxes
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76
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348
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(595)
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NET INCOME
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$442
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$921
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($426)
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United Security Bancshares
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Three
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Three
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Three
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Selected Financial Data
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Months
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Months
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Months
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(dollars in 000's except per share
amounts)
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Ended
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Ended
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Ended
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03/31/2010
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03/31/2009
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12/31/2009
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Basic Earnings Per Share
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$0.04
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$0.07
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($0.03)
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Diluted Earning Per Share
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$0.04
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$0.07
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($0.03)
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Annualized Return
on:
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Average Assets
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0.25%
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0.50%
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(0.23%)
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Average Equity
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2.33%
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4.65%
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(2.18%)
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Net Interest Margin
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4.78%
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4.48%
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4.68%
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Net Charge-offs to Average Loans
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0.35%
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1.82%
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2.22%
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03/31/2010
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03/31/2009
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12/31/2009
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Book Value Per Share
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$6.09
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$6.33
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$6.07
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Tangible Book Value Per Share
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$5.36
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$5.31
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$5.31
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Efficiency Ratio
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74.63%
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68.39%
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80.70%
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Non Performing Assets to Total Assets
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10.14%
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11.26%
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10.32%
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Allowance for Loan Losses to Total
Loans
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3.12%
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1.93%
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2.96%
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Shares Outstanding - period end
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12,621,452
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12,622,013
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12,496,499
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Basic Shares - YTD average
weighted
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12,621,452
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12,622,238
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12,496,578
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Diluted Shares - YTD average weighted
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12,621,452
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12,700,437
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12,496,578
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Basic Shares - QTD average
weighted
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12,621,452
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12,622,238
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12,496,525
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Diluted Shares - QTD average weighted
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12,621,452
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12,710,447
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12,496,525
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SOURCE United Security Bancshares