United Security Bancshares Elects to Defer Interest Payments on Subordinated Debentures
September 25 2009 - 4:19PM
PR Newswire (US)
FRESNO, Calif., Sept. 25 /PRNewswire-FirstCall/ -- United Security
Bancshares (NASDAQ:UBFO) (the "Company") announced that the Board
of Directors (the "Board") has elected to defer interest payments
on the Company's $15.0 million of junior subordinated debentures
relating to its trust preferred securities beginning with the next
interest payment date of October 1, 2009. The terms of the
debentures and trust indentures allow for the Company to defer
interest payments for up to 20 consecutive quarters without default
or penalty. During the period that the interest deferrals are
elected, the Company will continue to record interest expense
associated with the debentures. Upon the expiration of the deferral
period, all accrued and unpaid interest will be due and payable.
During the deferral period, the Company is precluded from paying
cash dividends to shareholders or repurchasing its stock. The
election to defer interest payments on the junior subordinated
debentures will allow the Company to maintain a stronger cash and
liquidity position. "The decision to defer interest payments is one
that we took quite seriously, and was made after careful
consideration of the challenges current market conditions pose for
the Company," said Dennis R. Woods, President and Chief Executive
Officer. Woods added, "Although the Company's capital level,
regulatory capital ratios and core earnings remain strong, we
believe our actions in this challenging economic environment are in
the best long-term interest of our shareholders and customers." At
June 30, 2009, all of the Company's capital ratios were above the
"well capitalized" minimums under regulatory guidelines, with total
risk-based capital ratio at 13.0% and the Tier 1 leverage ratio at
11.2%. United Security Bancshares
(http://www.unitedsecuritybank.com/) 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. 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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