FRESNO, Calif., May 6 /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 $921,000, or $0.08 per diluted
common share, for the quarter ended March 31, 2009, compared to
$2,500,000, or $0.20 per diluted common share for the quarter ended
March 31, 2008, and $842,000 or $0.07 per diluted common share for
the trailing quarter ended December 31, 2008. Annualized return on
average equity (ROE) for the quarter ended March 31, 2009 was
4.65%, compared to 11.79% for the same period in 2008, and 4.18%
for the trailing quarter ended December 31, 2008. Annualized return
on average assets (ROA) was 0.50% for quarter ended March 31, 2009,
compared to 1.29% for the same period in 2008, and .43% for the
trailing quarter ended December 31, 2008. The low interest rate
environment, weak real estate market and economy all combined to
impact earnings adversely. The Board of Directors of United
Security Bancshares declared a 2nd quarter 2009 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 10, 2009 and the shares were issued on April 22, 2009.
Woods added, "The real estate markets may be changing! Even though
excessive numbers of newly foreclosed homes added to the market
each month continue and help drive prices down, March brought a
change with the average price of a Fresno home rising by 9% from
the prior month. The numbers of homes on Fresno-Clovis MLS for sale
fell from 3,300 in February 2008 to 2,311 in February 2009.
Home-buyers realize that home prices are an excellent value and
when combined with very low interest rates and the potential
$10,000 in tax credits for new homes and $8,000 interest free loan,
buying a home today is perhaps one of the best financial decisions
families can make for their future. The Government $860B stimulus
programs and housing package officially started April 1, 2009 and
will almost certainly be a catalyst for positive economic change in
the months ahead. "We read often that banks are not lending, even
banks that took government TARP funds. During the 1st quarter 2009
the Bank approved new loan commitments totaling $15 million and
renewed existing loan commitments totaling $81 million. While some
business sectors continue to experience degrees of difficulty,
others sectors experience degrees of prosperity. We remain
committed to providing the very best banking services to business
and individuals in the communities we serve, including loans to
help our customers survive and prosper during these difficult
economic times. "Regulatory capital ratios rose from 12.66% at
12/31/08 to 13.22% on March 31, 2009. Noninterest expenses declined
$585,000 during the 1st quarter 2009 as compared with the 4th
quarter 2008. The net interest margin improved from 4.02% for the
4th quarter 2008 to 4.49% for the 1st quarter 2009. Controlling
costs and improving interest rate margins and capital levels are
the main drivers for managing through difficult economic times."
Shareholders' equity at quarter end was $79.8 million. During the
past 12 months, dividends of $3.1 million were paid out of
shareholders' equity to shareholders and $.77 million was utilized
to purchase and retire shares of Company stock at an average price
of $12.93 per share. Net interest income for the 1st quarter 2009
was $7.1 million, down $.84 million from the 1st quarter of 2008
for a decrease of 3.6%. The net interest margin decreased from
4.62% in the 1st quarter of 2008 to 4.49% in the 1st quarter of
2009. For the trailing quarter ended December 31, 2008, net
interest income was $7.07 million and the net interest margin was
4.02%. Noninterest income for the 1st quarter of 2009 was
$1,142,000, down $1,191,000 from $2,333,000 in 2008 for a decrease
of 51.1%. The decrease resulted primarily from the gain from the
fair value adjustment to the carrying amount of Trust Preferred
Securities during the 1st quarter of 2008 that was $598,000
greater, compared with the 1st quarter of 2008. Other operating
expenses for the three months ended March 31, 2009 were $5,669,000
compared with $6,116,000 for the same period in 2008, a decrease of
$446,000 or 7.3%. Several expense items in combination account for
the difference. The provision for loan loss was $1,351,000 for the
1st quarter of 2009 and $265,000 for 1st quarter of 2008. 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, 2009 to be adequate. Non-performing assets increased to
11.14% of total assets on March 31, 2009 from 10.68% on December
31, 2008. Net charged-off loans were 4.47% of average loans during
the 1st quarter of 2009 compared with .04% during the 1st quarter
2008 and 2.31% for the trailing quarter ended December 31, 2008.
The increase for the 1st quarter 2009 is associated with the
reclassification of a lease asset to other receivables. A reserve
for loss allocated to the lease asset was charged against the
allowance and credited to the receivable. Excluding this item from
losses, Net charged-off loans were 1.86% of average loans during
the 1st quarter of 2009. United Security Bancshares is a $730+
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 regulatory, judicial, or legislative tax
treatment of business transactions, particularly recently enacted
California tax legislation and the subsequent Dec. 31, 2003,
announcement by the Franchise Tax Board regarding the taxation of
REITs and RICs; and (8) 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, 2008, and particularly the section of
Management's Discussion and Analysis. United Security Bancshares
Consolidated Balance Sheets (unaudited) (Dollars in thousands)
March 31, March 31, December 31, 2009 2008 2008 Cash &
nonint.-bearing deposits in banks $14,610 $21,914 $19,426
Interest-bearing deposits in banks 3,968 2,740 20,431 Federal funds
sold 0 0 0 Investment securities AFS 87,621 102,757 92,749 Loans,
net of unearned fees 541,915 576,511 548,742 Less: allowance for
loan losses (10,448) (10,924) (15,071) Loans, net 531,467 533,671
Premises and equipment, net 13,959 565,586 14,285 Intangible assets
13,133 15,295 13,417 Other assets 68,632 53,796 67,097 TOTAL ASSETS
$733,391 $762,089 $761,077 Deposits: Noninterest-bearing demand
& NOW 186,758 181,134 190,363 Savings & Money Market
138,479 165,625 133,367 Time 196,902 267,736 184,756 Total deposits
522,139 614,495 508,486 Borrowed funds 113,185 43,000 155,045 Other
liabilities 6,338 9,002 6,010 Junior subordinated debentures 11,887
12,777 11,926 TOTAL LIABILITIES $653,550 $679,274 $681,467
Shareholders' equity: Common shares outstanding: 12,129,506 at Mar.
31, 2009 11,833,566 at Mar. 31, 2008 $35,776 $32,238 $34,811
Retained earnings 47,720 50,958 47,722 Fair Value Adjustment -
Hedge 0 0 0 Accumulated other comprehensive income (3,656) (380)
(2,923) Total shareholders' equity $79,840 $82,815 $79,610 TOTAL
LIABILITIES & SHAREHOLDERS' EQUITY 733,391 762,089 761,077
United Security Bancshares Three Three Three Consolidated
Statements of Income Months Months Months (dollars in 000's, except
per Ended Ended Ended share amounts) (unaudited) March 31, March
31, December 31, 2009 2008 2008 Interest income $9,312 $12,744
$10,036 Interest expense 2,164 4,759 2,967 Net interest income
7,148 7,985 7,069 Provision for loan losses 1,351 265 2,383 Other
income 1,142 2,333 2,698 Other expenses 5,669 6,116 6,254 Income
before income tax provision 1,269 3,937 1,130 Provision for income
taxes 348 1,437 289 NET INCOME $921 $2,500 $842 United Security
Bancshares Three Three Three Selected Financial Data Months Months
Months (dollars in 000's except per Ended Ended Ended share
amounts) March 31, March 31, Dec. 31, 2008 2009 2008 Basic Earnings
Per Share $0.08 $0.20 $0.07 Diluted Earning Per Share $0.08 $0.20
$0.07 Annualized Return on: Average Assets 0.50% 1.29% 0.43%
Average Equity 4.65% 11.79% 4.18% Net Interest Margin 4.49% 4.62%
4.02% Net Charge-offs to Average Loans 4.47% 0.04% 2.31% March 31,
March 31, Dec. 31, 2008 2009 2008 Book Value Per Share $6.58 $7.00
$6.63 Tangible Book Value Per Share $5.50 $5.83 $5.51 Efficiency
Ratio 68.39% 59.27% 60.38% Non Performing Assets to Total Assets
11.14% 3.90% 10.68% Allowance for Loan Losses to Total Loans 1.93%
1.89% 2.75% Shares Outstanding - period end 12,129,506 11,833,566
12,010,372 Basic Shares - YTD average weighted 12,129,723
12,204,870 12,048,728 Diluted Shares - YTD average weighted
12,129,723 12,214,490 12,052,150 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/
Copyright
United Security Bancshares (NASDAQ:UBFO)
Historical Stock Chart
From Sep 2024 to Oct 2024
United Security Bancshares (NASDAQ:UBFO)
Historical Stock Chart
From Oct 2023 to Oct 2024