United Security Bancshares Declares Stock Dividend
September 25 2008 - 9:48AM
PR Newswire (US)
FRESNO, Calif., Sept. 25 /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 has declared a
third quarter 2008 stock dividend of one percent (1%). The third
quarter 2008 stock dividend replaces the quarterly cash dividend
and reflects a similar value. The third quarter stock dividend will
be paid to shareholders of record on October 10, 2008 and the
dividend shares will be issued on October 22, 2008. Regarding the
announcement, Woods said, "The Company has paid out $25 million
from shareholders equity over the past two years in cash dividends
and in purchasing shares for retirement, to benefit shareholders.
The change in the dividend from cash to stock was employed 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. The Company's capital position
remains strong. However, the Board of Directors 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. The U.S. Congress is currently working
with the Secretary of the Treasury and others to develop
appropriate legislation to help mitigate depreciation in real
estate values. Until those actions are in place and have time to
work, the Board's action is in line with conservative management of
the Company over the long term: allowing capital to accumulate
during times of uncertainty while positioning the Company for
future growth opportunities. 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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