United Security Bancshares (Nasdaq: UBFO) today announced
its unaudited financial results for the year ended December 31,
2020. The Company recognized net income of $8,961,000, or $0.53 per
basic and diluted shares for the year ended December 31, 2020,
compared to net income of $15,172,000, or $0.90 per basic and $0.89
per diluted shares for the year ended December 31, 2019.
Fourth Quarter 2020 Highlights (at or for the quarter
ended December 31, 2020, except where noted)
- Net income for the quarter was $1.922 million, or $0.11 per
basic and diluted shares, representing a $973 thousand or 33.61%
decrease from $2.895 million, or $0.17 per basic and diluted
shares, for the quarter ended December 31, 2019. The decrease is
primarily the result of a reduction in interest income related to a
lower interest rate environment and higher provision expense for
the fourth quarter 2020.
- Total assets increased $135.7 million to $1.1 billion, compared
to $956.9 million at December 31, 2019 with increases of $58.0
million in gross loan balances, $75.1 million in cash equivalents,
and $6.1 million in investment securities.
- Total loans, net of unearned fees, increased $57.8 million to
$654.3 million, compared to $596.6 million at December 31, 2019.
Included in the increase are $9.5 million in Paycheck Protection
Program (PPP) loans. At December 31, 2020 there were $515 thousand
outstanding in PPP unearned fees.
- Total deposits increased $134.3 million to $952.7 million,
compared to $818.4 million at December 31, 2019.
- The allowance for credit losses as a percentage of gross loans
decreased to 1.30%, compared to 1.33% at December 31, 2019. The
provision for credit losses totaled $631 thousand for the quarter,
compared to $5 thousand for the quarter ended December 31, 2019.
The increase in the provision for credit losses during the quarter
ended December 31, 2020 was primarily the result of $826 thousand
in charge-offs recognized in the student loan portfolio.
- Net interest income after the provision for credit losses was
$7.4 million for the quarter ended December 31, 2020, compared to
$8.7 million for the quarter ended December 31, 2019.
- A loss on the fair value of junior subordinated debt of $481
thousand was recorded for the quarter, as compared to a loss of
$407 thousand for the quarter ended December 31, 2019.
- Book value per share increased to $6.93, compared to $6.83 at
December 31, 2019.
- Net interest margin decreased to 3.15% from 4.02% for the
quarter ended December 31, 2019.
- Annualized average cost of deposits decreased to 0.19% from
0.37% for the quarter ended December 31, 2019.
- Net charge-offs totaled $817 thousand, compared to net
charge-offs of $328 thousand for the quarter ended December 31,
2019.
- Capital positions remain well-capitalized with a 11.37% Tier 1
Leverage Ratio compared to 12.82% as of December 31, 2019.
- Annualized return on average assets ("ROAA") was 0.70%,
compared to 1.21% for the quarter ended December 31, 2019.
- Annualized return on average equity ("ROAE") was 6.41%,
compared to 9.85% for the quarter ended December 31, 2019.
Dennis Woods, President and Chief Executive Officer, stated:
"Our 2020 operating results were significantly impacted by the
economic impact of the COVID-19 pandemic. These factors resulted in
elevated credit loss provisions, deterioration in net interest
margin due to a lower interest rate environment, and a reduction in
customer service fee income as we waived many overdraft and ATM
fees to provide relief to our customers. Despite the negative
impacts of the pandemic, we achieved strong balance sheet growth in
our loan portfolio, reduced nonperforming assets, opened a new
branch, and grew deposit balances. Our unfunded loan commitments
grew $27.4 million during 2020, providing a solid foundation
heading into 2021 as we navigate through the pandemic and into
economic recovery. In 2021, we will continue to focus on the safety
of our employees amid the pandemic, and delivering high quality
products and services to our customers, while strategically
managing our business to optimize profitability in this challenging
environment. Our 2021 plan is centered on repositioning our balance
sheet for the current environment, while maintaining strong
liquidity and capital levels."
Results of Operations
Net income for the year ended December 31, 2020 decreased
$6,211,000 when compared to the year ended December 31, 2019. This
decrease was due to a reduction in interest income, a result of a
decrease in yields, and the increased provision for credit losses
recorded during the current year. ROAE for the year ended December
31, 2020 was 7.55%, compared to 13.30% for the year ended December
31, 2019. ROAA was 0.86% for the year ended December 31, 2020,
compared to 1.58% for the year ended December 31, 2019.
The annualized average cost of deposits was 0.22% for the year
ended December 31, 2020, a decrease from 0.42% for the year ended
December 31, 2019. The decrease in the cost of deposits is
primarily attributed to reductions on deposit rates made in the
first quarter of 2020. Average interest-bearing deposits increased
3.70% between the years ended December 31, 2019 and 2020 from
$516,698,000 to $535,818,000.
Net interest income after the provision for credit losses for
the year ended December 31, 2020 totaled $28,853,000, a decrease of
$7,941,000, or 21.58%, from $36,794,000 for the same period ended
December 31, 2019. Net interest income after the provision for
credit losses includes a provision for credit losses of $2,769,000
for the year ended December 31, 2020, compared to a provision of
$20,000 for the year ended December 31, 2019. During the first
quarter of 2020, the Federal Reserve cut its benchmark rate by
1.50%. As a result, the Prime rate decreased from 4.75% to 3.25%. A
majority of the Company's floating rate loans and investments are
indexed to the Prime rate. The Company's net interest margin
decreased from 4.22% for the year ended December 31, 2019 to 3.34%
for the year ended December 31, 2020. The decrease was the result
of decreases in yields on overnight fed funds, loans, and
investment securities, partially offset by a decrease in interest
expense. The yield on loans decreased from 5.91% for the year ended
December 31, 2019 to 4.96% for the year ended December 31, 2020.
The yield on interest bearing liabilities decreased from 0.74% for
the year ended December 31, 2019 to 0.42% for the year ended
December 31, 2020.
Net interest income after the provision for credit losses was
$7,366,000 for the quarter ended December 31, 2020, representing a
$1,325,000, or 15.25%, decrease compared to the same period ended
December 31, 2019. The Company's net interest margin decreased from
4.02% to 3.15% between the quarters ended December 31, 2019 and
December 31, 2020. The reduction in net interest margin is driven
by the reduction in yields on all interest earning assets,
partially offset by a decrease in interest expense on deposits.
Included in interest income for the quarter ended December 31, 2020
is $517,000 in loan fee income related to SBA PPP loans.
Noninterest income for the year ended December 31, 2020 totaled
$5,174,000, reflecting a decrease of $580,000 from the $5,754,000
in non-interest income reported for the year ended December 31,
2019. Customer service fees totaled $2,663,000 and $3,257,000 for
the year ended December 31, 2020 and 2019, respectively. The
decrease in customer service fees is attributed to lower fees and
surcharges related to insufficient funds and electronic transfers
recognized during the year. On a year-over-year comparative basis,
non-interest income recorded a decrease of $195,000 in the loss on
the fair value of junior subordinated debentures (TRUPs). A gain of
$970,000 was realized for the year ended December 31, 2020,
compared to a gain of $1,165,000 for the same period ended December
31, 2019. The change in the fair value of TRUPs reflected in
noninterest income was caused by fluctuations in the LIBOR yield
curve. Noninterest income for the year ended December 31, 2020
includes a $310,000 gain in proceeds from bank-owned life
insurance.
Noninterest income for the quarter ended December 31, 2020
totaled $467,000, reflecting a decrease of $180,000 from the
$647,000 in non-interest income reported for the quarter ended
December 31, 2019. The decrease is attributed to a $130,000
decrease in customer service fees and a $74,000 increase in the
loss on fair value of TRUPs. The change in the fair value of TRUPs
reflected in noninterest income was caused by fluctuations in the
LIBOR yield curve. The decrease in customer service fees is
primarily the result of lower fees and surcharges related to
insufficient funds and electronic transfers.
For the year ended December 31, 2020, noninterest expense
totaled $21,615,000, an increase of $336,000 compared to
$21,279,000 for the year ended December 31, 2019. On a
year-over-year comparative basis, non-interest expense increased
primarily due to a $728,000 increase in expenses related to other
real estate owned. The increase in OREO expense was partially due
to a write-down of $727,000 on one property and a $113,000 loss on
sale of another property. This was partially offset by decreases of
$508,000 in professional fees and decreases of $284,000 in salaries
and employee benefits. The decrease in professional fees is
attributed to a reduction in legal and consulting expense.
Noninterest expense for the quarter ended December 31, 2020
totaled $5,260,000, a decrease of $75,000 as compared to $5,335,000
reported for the quarter ended December 31, 2019. On a
quarter-over-quarter comparative basis, non-interest expense
decreased due to a $107,000 decrease in salaries and employee
benefits expense, a $74,000 decrease in data processing expenses,
and a $66,000 decrease in professional fees, partially offset by an
increase of $150,000 in regulatory assessments. The increase in
regulatory assessments during the 4th quarter 2020 was due an
increase in the FDIC assessment rate.
The efficiency ratio for the year ended December 31, 2020
increased to 58.74%, compared to 49.99% for the year ended December
31, 2019. The increase is mainly attributed to a reduction in net
interest income as a result of the balance sheet repricing in a
lower rate environment, a decrease in customer service fees, and an
increase in OREO expense.
The Company recorded an income tax provision of $3,451,000 for
the year ended December 31, 2020, compared to $6,097,000 for the
same period in 2019. The effective tax rate for the year ended
December 31, 2020 was 27.80%, compared to 28.67% for the year ended
December 31, 2019. The Company recorded an income tax provision of
$651,000 for the quarter ended December 31, 2020, compared to
$1,108,000 for the same period in 2019. The effective tax rate for
the quarter ended December 31, 2020 was 25.30%, compared to 27.68%
for the same period ended December 31, 2019.
Provided at the end of this Press Release is a reconciliation of
Core Net Income, as a non-GAAP measure, to Net Income. This
reconciliation excludes Non-Core items such as the Fair Value
Adjustment for TRUPs and gain or loss on sale of other real estate
owned (OREO). Management believes that financial results are more
comparative excluding the impact of such non-core items.
Balance Sheet Review
Total assets increased $135,735,000, or 14.18%, between December
31, 2020 and December 31, 2019, due partially to increases of
$58,037,000 in gross loan balances and $6,104,000 in investment
securities. Total cash and cash equivalents increased $75,074,000
between December 31, 2019 and December 31, 2020. Unfunded loan
commitments increased from $197,559,000 at December 31, 2019 to
$224,972,000 at December 31, 2020. OREO balances decreased from
$6,753,000 at December 31, 2019 to $5,004,000 at December 31, 2020.
The reduction is attributed to the sale of one OREO property during
the first quarter and a $727,000 write down on OREO in the second
quarter.
Total deposits increased $134,289,000, or 16.41%, to
$952,651,000 during the year ended December 31, 2020. This increase
was due to an increase of $79,947,000 in noninterest bearing
deposits, $41,631,000 in NOW and money market accounts, and
$16,591,000 in savings accounts, partially offset by a decrease of
$3,880,000 in time deposits. In total, NOW, money market and
savings accounts increased 13.20% to $499,234,000 at December 31,
2020, compared to $441,012,000 at December 31, 2019. Noninterest
bearing deposits increased 25.63% to $391,897,000 at December 31,
2020, compared to $311,950,000 at December 31, 2019. As a result of
the net increase, core deposits, which is made up of the balance of
noninterest bearing deposits, NOW, money market, savings, and time
deposits accounts less than $250,000, increased $133,545,000.
Shareholders’ equity at December 31, 2020 was $117,807,000, an
increase of $1,819,000 from shareholders’ equity of $115,988,000 at
December 31, 2019. The increase in equity was the result of net
earnings for the period, partially offset by cash dividends. At
December 31, 2020 there was an accumulated other comprehensive loss
of $728,000, as compared to an accumulated other comprehensive loss
of $632,000 at December 31, 2019. The change from December 31, 2019
to December 31, 2020 was the result of losses on junior
subordinated debentures (TRUPs) caused by a change in non-LIBOR
yields during the period and unrealized loss on unrecognized post
retirement costs, partially offset by unrealized gains on available
for sale securities.
The Board of Directors of United Security Bancshares declared a
cash dividend on common stock of $0.11 per share on December 15,
2020. The dividend was payable on January 19, 2021, to shareholders
of record as of January 4, 2021. No assurances can be provided that
future dividends will be declared and/or as to the timing of such
future dividends, if any.
Credit Quality
The Company has recorded a provision for credit losses of
$2,769,000 for the year ended December 31, 2020, compared to a
provision of $20,000 for the year ended December 31, 2019. Net loan
charge-offs totaled $2,155,000 for the year ended December 31,
2020, as compared to net loan charge-offs of $507,000 for the year
ended December 31, 2019. The provision recorded during the year is
attributed to growth of the loan portfolio, increases in net
charge-offs, and adjustment in qualitative factors related to the
economic uncertainties caused by COVID-19. As of December 31, 2020,
the Company had 1 remaining payment modification of $12,500,000 in
connection with the COVID-19 relief provided by the CARES Act and
interagency guidance issued in March 2020. The original deferrals
of $69.8 million were generally no more than six months in duration
and were not considered troubled debt restructurings. The Company
recorded a provision for credit loss of $631,000 for the quarter
ended December 31, 2020, compared to a provision of $5,000 for the
quarter ended December 31, 2019.
The Company's allowance for loan loss totaled 1.30% of the loan
portfolio at December 31, 2020, compared to 1.33% at December 31,
2019. Excluding the SBA PPP loans, which are fully government
guaranteed, the allowance for loan loss totaled 1.32% of the loan
portfolio at December 31, 2020.
Non-performing assets, comprised of nonaccrual loans, troubled
debt restructures (TDRs), other real estate owned through
foreclosure (OREO), and loans more than 90 days past due and still
accruing interest, decreased $3,769,000 or 17.76% between December
31, 2019 and December 31, 2020 to $17,456,000. Nonperforming assets
as a percentage of total assets decreased from 2.22% at December
31, 2019 to 1.60% at December 31, 2020. The decrease in
nonperforming assets is primarily attributed to the reduction in
OREO, nonaccrual loans, and accruing TDR balances. Restructured
loans decreased $1,761,000 between December 31, 2019 and December
31, 2020, and nonaccrual loans decreased $201,000 between December
31, 2019 and December 31, 2020 to $11,496,000. OREO balances
decreased from $6,753,000 at December 31, 2019 to $5,004,000 at
December 31, 2020.
About United Security Bancshares
United Security Bancshares (NASDAQ: UBFO) is the holding company
for United Security Bank, which was founded in 1987. United
Security Bank is headquartered in Fresno and operates 12
full-service branch offices in Fresno, Bakersfield, Campbell,
Caruthers, Coalinga, Firebaugh, Mendota, Oakhurst, San Joaquin, and
Taft. Additionally, United Security Bank operates Commercial Real
Estate Construction, Commercial Lending, and Consumer Lending
departments. For more information, please visit www.unitedsecuritybank.com.
Non-GAAP Financial Measures
This press release and the accompanying financial tables contain
a non-GAAP financial measure (Net Income before Non-Core) within
the meaning of the Securities and Exchange Commission’s Regulation
G. In the accompanying financial tables, the Company has provided a
reconciliation of this non-GAAP financial measure to the most
directly comparable GAAP financial measure. The Company’s
management believes that this non-GAAP financial measure provides
useful information about the Company’s results of operations and/or
financial position to both investors and management. The Company
provides this non-GAAP financial measure to investors to assist
them in performing their analysis of its historical operating
results. The non-GAAP financial measure shows the Company's
operating results before consideration of certain adjustments and,
consequently, this non-GAAP financial measure should not be
construed as an alternative to net income (loss) as an indicator of
the Company's operating performance, as determined in accordance
with GAAP. The Company may calculate this non-GAAP financial
measure differently than other companies.
Forward-Looking Statements
This news release may contain 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 can be identified by the fact that they
do not relate strictly to historical or current facts and often
include the words "believe," "expect," "anticipate," "intend,"
"plan," "estimate," or words of similar meaning, or future or
conditional verbs such as "will," "would," "should," "could," or
"may." Forward-looking statements are based on management’s
knowledge and belief as of today and are not guarantees of future
performance, nor should they be relied upon as representing
management's views as of any subsequent date. Forward-looking
statements are subject to risks and uncertainties and actual
results may differ materially from those presented. Factors that
might cause such differences, some of which are beyond the
Company’s ability to control or predict, include, but are not
limited to: (1) the effects of the COVID-19 pandemic, including the
effects of the steps being taken to address the pandemic and their
impact on the Company’s market, customers and employees, (2)
changes in general economic and financial market conditions, either
nationally or locally, (3) changes in interest rates, (4) changes
in banking laws or regulations, (5) increased competition in the
Company's market, impacting the ability to execute its business
plans, (6) loss of key personnel, (7) unanticipated credit losses,
(8) earthquakes or other natural disasters impacting the local
economy and/or the condition or value of real estate collateral,
(9) the impact of technological changes and the ability to develop
and maintain secure and reliable electronic systems, and (10)
changes in accounting policies or procedures.
The Company undertakes no obligation to publicly revise these
forward-looking statements to reflect subsequent events or
circumstances. 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, 2019, in particular the section entitled
"Management’s Discussion and Analysis of Financial Condition and
Results of Operations." Readers should carefully review all
disclosures the Company files from time to time with the Securities
and Exchange Commission.
United Security Bancshares
Consolidated Balance Sheets
(unaudited)
(in thousands)
December 31, 2020
December 31, 2019
Assets
Cash and non-interest-bearing deposits in
other banks
$
29,490
$
27,291
Due from Federal Reserve Bank ("FRB")
264,579
191,704
Cash and cash equivalents
294,069
218,995
Investment securities (at fair value)
Available-for-sale ("AFS") securities
82,341
76,312
Marketable equity securities
3,851
3,776
Total investment securities
86,192
80,088
Loans
655,411
597,374
Unearned fees and unamortized loan
origination costs - net
(1,064)
(820)
Allowance for credit losses
(8,522)
(7,908)
Net loans
645,825
588,646
Premises and equipment - net
8,164
9,380
Accrued interest receivable
9,110
8,208
Other real estate owned ("OREO")
5,004
6,753
Goodwill
4,488
4,488
Deferred tax assets - net
2,907
3,191
Cash surrender value of life insurance
20,715
20,955
Operating lease right-of-use assets
2,864
3,360
Other assets
13,316
12,855
Total assets
$
1,092,654
$
956,919
Liabilities and Shareholders'
Equity
Deposits
Non-interest-bearing
$
391,897
$
311,950
Interest-bearing
560,754
506,412
Total deposits
952,651
818,362
Accrued interest payable
33
59
Operating lease liabilities
2,966
3,463
Other liabilities
8,273
8,239
Junior subordinated debentures (at fair
value)
10,924
10,808
Total liabilities
974,847
840,931
Shareholders' Equity
Common stock, no par value; 20,000,000
shares authorized; issued and outstanding: 17,009,883 at December
31, 2020 and 16,973,885 at December 31, 2019
59,397
58,973
Retained earnings
59,138
57,647
Accumulated other comprehensive loss
(728)
(632)
Total shareholders' equity
117,807
115,988
Total liabilities and shareholders'
equity
$
1,092,654
$
956,919
United Security Bancshares
Consolidated Statements of Income
(unaudited)
(in thousands)
Three Months Ended December
31,
Year Ended December
31,
2020
2019
2020
2019
Interest Income:
Interest and fees on loans
$
8,127
$
8,292
$
31,749
$
34,025
Interest on investment securities
306
437
1,433
1,797
Interest on deposits in FRB
63
829
730
4,880
Total interest income
8,496
9,558
33,912
40,702
Interest Expense:
Interest on deposits
452
758
2,014
3,432
Interest on other borrowed funds
47
104
276
456
Total interest expense
499
862
2,290
3,888
Net Interest Income
7,997
8,696
31,622
36,814
Provision for Credit Losses
631
5
2,769
20
Net Interest Income after Provision for
Credit Losses
7,366
8,691
28,853
36,794
Noninterest Income:
Customer service fees
648
778
2,663
3,257
Increase in cash surrender value of
bank-owned life insurance
122
89
504
528
(Loss) gain on fair value of marketable
equity securities
(14)
(11)
74
117
Gain on proceeds from bank-owned life
insurance
—
—
310
—
(Loss) gain on fair value of junior
subordinated debentures
(481)
(407)
970
1,165
Recovery on investment
64
—
64
—
Loss on dissolution of real estate
investment trust
—
—
—
(115)
(Loss) gain on sale of assets
—
—
—
1
Other
128
198
589
801
Total noninterest income
467
647
5,174
5,754
Noninterest Expense:
Salaries and employee benefits
2,694
2,801
10,825
11,109
Occupancy expense
865
882
3,475
3,332
Data processing
107
181
493
583
Professional fees
691
757
2,672
3,180
Regulatory assessments
176
26
459
164
Director fees
94
91
376
373
Correspondent bank service charges
19
15
71
57
Net cost on operation and sale of OREO
4
22
972
244
Other
610
560
2,272
2,237
Total noninterest expense
5,260
5,335
21,615
21,279
Income Before Provision for
Taxes
2,573
4,003
12,412
21,269
Provision for Taxes on Income
651
1,108
3,451
6,097
Net Income
$
1,922
$
2,895
$
8,961
$
15,172
Basic earnings per common share
$
0.11
$
0.17
$
0.53
$
0.90
Diluted earnings per common share
$
0.11
$
0.17
$
0.53
$
0.89
Weighted average basic shares for EPS
16,979,845
16,956,350
16,976,704
16,951,955
Weighted average diluted shares for
EPS
17,017,265
16,994,260
16,998,584
16,984,796
United Security Bancshares
Average Balances and Rates
(unaudited)
(in thousands)
Three Months Ended December
31,
Year Ended December
31,
2020
2019
2020
2019
Average Balances:
Loans (1)
$
662,445
$
578,082
$
639,815
$
576,015
Investment securities - taxable
89,331
80,958
90,685
71,456
Interest-bearing deposits in FRB
258,071
198,803
217,273
223,488
Total interest-earning assets
1,009,847
857,843
947,773
870,960
Allowance for credit losses
(8,687)
(8,199)
(8,661)
(8,386)
Cash and due from banks
31,348
29,979
30,300
29,169
Other real estate owned
5,165
6,446
5,815
5,922
Other non-earning assets
61,525
62,937
61,742
61,572
Total average assets
$
1,099,198
$
949,006
$
1,036,969
$
959,237
Interest-bearing deposits
$
573,558
$
497,675
$
535,818
$
516,698
Junior subordinated debentures
10,061
10,266
9,746
10,289
Total interest-bearing liabilities
583,619
507,941
545,564
526,987
Non-interest-bearing deposits
386,534
314,245
363,004
308,518
Other liabilities
9,861
10,230
9,674
9,683
Total liabilities
980,014
832,416
918,242
845,188
Total equity
119,184
116,590
118,727
114,049
Total liabilities and equity
$
1,099,198
$
949,006
$
1,036,969
$
959,237
Average Rates:
Loans (1)
4.88
%
5.69
%
4.96
%
5.91
%
Investment securities
1.36
%
2.14
%
1.58
%
2.51
%
Interest-bearing deposits in FRB
0.10
%
1.65
%
0.34
%
2.18
%
Earning assets
3.35
%
4.42
%
3.58
%
4.67
%
Interest bearing deposits
0.31
%
0.60
%
0.38
%
0.66
%
Total deposits
0.19
%
0.37
%
0.22
%
0.42
%
Junior subordinated debentures
1.86
%
4.02
%
2.83
%
4.43
%
Total interest-bearing liabilities
0.34
%
0.67
%
0.42
%
0.74
%
Net interest margin (2)
3.15
%
4.02
%
3.34
%
4.22
%
(1) Loan amounts include nonaccrual loans, but the related
interest income has been included only if collected for the period
prior to the loan being placed on a nonaccrual basis.
(2) Net interest margin is computed by dividing annualized net
interest income by average interest-earning assets.
United Security Bancshares
Condensed - Consolidated Balance Sheets
(unaudited)
(in thousands)
December 31, 2020
September 30, 2020
June 30, 2020
March 31, 2020
December 31, 2019
Cash and cash equivalents
$
294,069
$
323,332
$
229,541
$
199,853
$
218,995
Investment securities
86,192
91,782
96,739
97,486
80,088
Loans
654,347
660,444
648,650
623,686
596,554
Allowance for credit losses
(8,522)
(8,708)
(8,862)
(9,120)
(7,908)
Net loans
645,825
651,736
639,788
614,566
588,646
Other assets
66,568
67,097
65,305
65,341
69,190
Total assets
$
1,092,654
$
1,133,947
$
1,031,373
$
977,246
$
956,919
Non-interest-bearing
$
391,897
$
430,028
$
362,010
$
324,167
$
311,950
Interest-bearing
560,754
564,755
531,102
516,270
506,412
Total deposits
952,651
994,783
893,112
840,437
818,362
Other liabilities
22,196
21,111
20,801
19,399
22,569
Total liabilities
974,847
1,015,894
913,913
859,836
840,931
Total shareholders' equity
117,807
118,053
117,460
117,410
115,988
Total liabilities and shareholder's
equity
$
1,092,654
$
1,133,947
$
1,031,373
$
977,246
$
956,919
United Security Bancshares
Condensed - Consolidated Statements of
Income (unaudited)
(in thousands)
For the Quarters
Ended:
December 31, 2020
September 30, 2020
June 30, 2020
March 31, 2020
December 31, 2019
Total interest income
$
8,496
$
7,968
$
8,107
$
9,341
$
9,558
Total interest expense
499
500
530
761
862
Net interest income
7,997
7,468
7,577
8,580
8,696
Provision for credit losses
631
4
428
1,707
5
Net interest income after provision for
credit losses
7,366
7,464
7,149
6,873
8,691
Total non-interest income
467
911
1,214
2,580
647
Total non-interest expense
5,260
5,210
5,553
5,591
5,335
Income before provision for taxes
2,573
3,165
2,810
3,862
4,003
Provision for taxes on income
651
894
798
1,108
1,108
Net income
$
1,922
$
2,271
$
2,012
$
2,754
$
2,895
United Security Bancshares
Nonperforming Assets
(unaudited)
(dollars in thousands)
December 31, 2020
December 31, 2019
Commercial and industrial
$
—
$
75
RE construction & development
11,057
11,478
Agricultural
439
144
Total nonaccrual loans
$
11,496
$
11,697
Loans past due 90 days and still
accruing
513
386
Restructured loans
535
2,389
Total nonperforming loans
$
12,544
$
14,472
Other real estate owned
5,004
6,753
Total nonperforming assets
$
17,548
$
21,225
Nonperforming loans to total gross
loans
1.90
%
2.42
%
Nonperforming assets to total assets
1.60
%
2.22
%
Allowance for credit losses to
nonperforming loans
68.44
%
54.64
%
United Security Bancshares
Selected Financial Data
(unaudited)
(dollars in thousands, except per share
amounts)
Three Months Ended December 31,
Year Ended December
31,
2020
2019
2020
2019
Return on average assets
0.70
%
1.21
%
0.86%
1.58%
Return on average equity
6.41
%
9.85
%
7.55%
13.30%
Net charge-off to average loans
0.49
%
0.23
%
0.34%
0.09%
December 31, 2020
December 31, 2019
Shares outstanding - period end
17,009,883
16,973,885
Book value per share
$6.93
$6.83
Efficiency ratio (1)
58.74
%
49.99
%
Total impaired loans
$13,376
$17,072
Net loan to deposit ratio
67.79
%
71.93
%
Allowance for credit losses to total
loans
1.30
%
1.33
%
Tier 1 capital to adjusted average assets
(leverage)
Company
11.37
%
12.82
%
Bank
11.17
%
12.83
%
(1) Efficiency ratio is defined as total noninterest expense
divided by net interest income before provision for credit losses
plus total noninterest income.
United Security Bancshares
Net Income before Non-Core
Reconciliation
Non-GAAP Information (dollars in
thousands)
(unaudited)
Year Ended December
31,
2020
2019
Change $
Change %
Net income
$
8,961
$
15,172
$
(6,211)
(40.94)
%
TRUPs (1) fair value adjustment gain
970
1,165
Write down on OREO (2)
(727)
—
Loss on sale of OREO (2)
(113)
—
130
1,165
Income tax effect
38
338
Non-core items net of taxes
92
827
Non-GAAP core net income
$
8,869
$
14,345
$
(5,476)
(38.17)
%
Core net income basic earnings per share
(EPS)
0.52
0.85
Core net income diluted earnings per share
(EPS)
0.52
0.84
(1) TRUPs Fair Value Adjustment is not part of Core Income and
depending upon market rates, can “add to” or “subtract from” Core
Income and mask Non-GAAP Core Income change.
(2) Write down and loss on sale of OREO are considered one-time
events and therefore are not part of Core Income.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210127005956/en/
Dennis Woods, President & CEO 559-248-4928
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