FRESNO, Calif., July 22 /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 $515,000, or $0.04
per basic and diluted common share, for the quarter ended
June 30, 2010, compared to a loss of
($5,726,000), or ($0.45) per basic and diluted common share for
the quarter ended June 30, 2009. Net
income was $442,000 or $0.04 per basic and diluted common share for the
previous quarter ended March 31,
2010.
For six-months ended June 30,
2010, net income was $957,000,
or $0.08 per basic and diluted common
share. For six-months ended June 30,
2009, the net loss was ($4,805,000) or ($0.38) per basic and diluted common share.
Annualized return on average equity (ROE) for the quarter ended
June 30, 2010 was 2.65%, compared to
(28.45%) for the same period in 2009, and 2.33% for the previous
quarter ended March 31, 2010.
Annualized return on average assets (ROA) was 0.29% for quarter
ended June 30, 2010, compared to
(3.11%) for the same period in 2009, and 0.25% for the previous
quarter ended March 31, 2010.
The Board of Directors of United Security Bancshares declared a
3rd 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 July 9, 2010 and the shares were issued on
July 21, 2010.
Woods added, "We continue to see improvements throughout the
Company as capital ratios, liquidity, problem asset levels and
earnings continue to show obvious improvement as reflected in this
report. It did not happen without significant hard work but hard
work pays-off and that is very rewarding."
"DataQuick reports residential real estate market continues to
show signs of improvement as well in California. Median single-family dwelling
prices in California were
$270,000 for June 2010, down 2.9 percent from April 2010, and up 9.8 percent from a year ago
June. The year-over-year increase in June was the eighth month in a
row, following 27 months of year-over-year declines."
"The number of new and resold houses and condos sold in
June 2010 are estimated at 43,964
units statewide, up 7.3 percent from May
2010, and down 0.5 percent from June
2009. Of the existing homes sold last month, 34.7 percent
were foreclosed properties over the past year. That was down from
35.4 percent in May 2010 and down
from 45.6 percent a year ago."
Shareholders' equity at June 30,
2010 was $77.9 million and
Shareholders' equity at June 30, 2009
was $74.0 million.
Net interest income before provision for credit loss for the 2nd
quarter 2010 was $7.38 million, up
from $6.8 million the 2nd quarter of
2009. The net interest margin increased from 4.30% in the 2nd
quarter of 2009 to 4.87% in the 2nd quarter of 2010. For the
previous quarter ended March 31,
2010, net interest income was $7.16
million and the net interest margin was 4.78%.
Noninterest income for the 2nd quarter of 2010 was $2,679,000, up $1,402,000 from $1,277,000 in 2009 for an increase of 109.8%. The
increase resulted primarily from the gain on a fair value
adjustment to the carrying amount of Trust Preferred Securities of
$514,000, gains on the sale of OREO
of $232,000 and gains on the sale of
loans of $511,000 as compared with
the 2nd quarter of 2009.
Noninterest income year-to-date ended June 30, 2010 was $3,993,000, up $1,574,000 from $2,418,000 in 2009 for an increase of 65.1%. The
increase resulted primarily from the gain from the fair value
adjustment to the carrying amount of Trust Preferred Securities
that was up $729,000, gains on the
sale of OREO up $263,000 and gains on
the sale of loans up $511,000 as
compared with six-months ended June 30,
2009
Other operating expenses for the three months ended June 30, 2010 were $8,048,000 compared with $9,095,000 for the same period in 2009, a
decrease of $1,047,000 or 11.5%. The
primary factor contributing to the decrease for the quarterly
comparison was a decline of $1,612,000 in goodwill impairment expense for
2010.
For the six months ended June 30,
2010, other operating expenses totaled $14,373,000, down $391,000 from $14,764,000 for the same period in 2009. Three
items account for most of the year-to-date decrease. For the
six-month period ended June 30, 2010
FDIC assessments increased by $289,000, write-downs on foreclosed properties
were up $723,000 and the goodwill
impairment expense declined by $1,612,000 as compared with the same period in
2009.
The provision for loan loss was $519,000 for the 2nd quarter of 2010 and
$6,806,000 for 2nd quarter of 2009.
Year-to-date ending June 30, the
provision for loan loss was $2,150,000 for 2010 and $8,158,000 for 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 June 30,
2010 to be adequate.
Non-performing assets decreased to 9.17% of total assets on
June 30, 2010 from 14.03% on
June 30, 2009 and 10.14% on
March 31, 2009. Net charged-off loans
were 3.67% of average loans during the 2nd quarter of 2010 compared
with 1.04% during the 2nd quarter 2009 and 0.35% for the previous
quarter ended March 31, 2010.
United Security Bancshares is a $700+ 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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June 30
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June 30
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|
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2010
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2009
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Cash & nonint.-bearing
deposits in banks
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$38,886
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$16,458
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Interest-bearing deposits in
banks
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1,480
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3,605
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Federal funds sold
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40,665
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0
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Investment securities
AFS
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59,796
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81,767
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Loans, net of unearned
fees
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494,462
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547,754
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Less: allowance for loan
losses
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(12,057)
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(15,842)
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Loans, net
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482,406
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531,912
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Premises and equipment,
net
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12,822
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13,662
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Intangible assets
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7,553
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9,884
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Other real estate
owned
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32,810
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37,065
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Other assets
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35,136
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44,179
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TOTAL ASSETS
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$711,554
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$738,532
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Deposits:
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Noninterest-bearing demand &
NOW
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198,572
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170,993
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Savings & Money
Market
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145,019
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148,808
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Time
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240,166
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191,072
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Total deposits
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583,757
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510,873
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Borrowed funds
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37,000
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135,305
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Other liabilities
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2,646
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6,432
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Junior subordinated
debentures
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10,209
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11,927
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TOTAL LIABILITIES
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$633,612
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$664,537
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Shareholders' equity:
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Common shares
outstanding:
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12,747,642 at Jun. 30,
2010
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12,250,294 at Jun. 30,
2009
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$38,792
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$36,362
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Retained earnings
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40,259
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41,418
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Accumulated other comprehensive
income
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(1,109)
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(3,784)
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Total shareholders'
equity
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77,942
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73,995
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TOTAL LIABILITIES
&
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SHAREHOLDERS' EQUITY
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711,554
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738,532
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United Security
Bancshares
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Three
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Three
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Six
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Six
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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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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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Ended
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(unaudited)
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June 30,
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June 30,
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June 30,
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June 30,
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2010
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2009
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2010
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2009
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Interest income
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$8,518
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$8,642
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$16,944
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$17,954
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Interest expense
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1,141
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1,847
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2,406
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4,011
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Net interest income
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7,376
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6,795
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14,538
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13,943
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Provision for loan
losses
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519
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6,806
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2,150
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8,158
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Other income
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2,679
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1,277
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3,993
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2,418
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Other expenses
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8,048
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9,095
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14,373
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14,764
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Income before income tax
provision
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1,489
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(7,829)
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2,007
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(6,561)
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Provision for income
taxes
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974
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(2,103)
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1,050
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(1,756)
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NET INCOME
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$515
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($5,726)
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$957
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($4,805)
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United Security
Bancshares
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Three
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Three
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Six
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Six
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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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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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Ended
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30-Jun-10
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30-Jun-09
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30-Jun-10
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30-Jun-09
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Basic Earnings Per
Share
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$0.04
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($0.45)
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$0.08
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($0.38)
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Diluted Earning Per
Share
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$0.04
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($0.45)
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$0.08
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($0.38)
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Annualized Return
on:
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Average Assets
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0.29%
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(3.10%)
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0.27%
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(1.30%)
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Average Equity
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2.65%
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(28.45%)
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2.49%
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(12.04%)
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Net Interest Margin
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4.87%
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4.31%
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4.82%
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4.40%
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Net Charge-offs to Average
Loans
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3.67%
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1.04%
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2.02%
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1.43%
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30-Jun-10
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30-Jun-09
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Book Value Per Share
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$6.11
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$6.04
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Tangible Book Value Per
Share
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$5.52
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$5.23
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Efficiency Ratio
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77.56%
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90.24%
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Non Performing Assets to Total
Assets
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9.17%
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14.03%
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Allowance for Loan Losses to
Total Loans
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2.44%
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1.93%
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Shares Outstanding - period
end
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12,747,642
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12,250,294
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Basic Shares - YTD average
weighted
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12,747,642
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12,747,642
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Diluted Shares - YTD average
weighted
|
12,747,642
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12,747,642
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Basic Shares - QTD average
weighted
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12,747,642
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12,747,642
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|
|
|
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Diluted Shares - QTD average
weighted
|
12,747,642
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12,747,642
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SOURCE United Security Bancshares