FRESNO, Calif., Oct. 17,
2017 /PRNewswire/ -- United Security Bancshares
(Nasdaq: UBFO), today announced its unaudited financial results for
the quarter ended September 30, 2017. The Company
reported consolidated net income of $2,741,000, or $0.16 per basic and diluted common share, for the
quarter ended September 30, 2017, as compared to $2,040,000, or $0.12 per basic and diluted common share, for the
quarter ended September 30, 2016. The Company recognized
net income of $7,004,000 for the nine
months ended September 30, 2017, an increase of 20.14%
compared to the net income of $5,830,000 recognized for the nine months ended
September 30, 2016. Basic and diluted earnings per share
increased to $0.41 for the nine
months ended September 30, 2017, as compared to $0.35 for the nine months ended
September 30, 2016.
Third Quarter 2017 Highlights (at or for the quarter
ended September 30, 2017, except where noted)
- Net interest income after provision for credit losses increased
to $8,150,000 compared to
$7,400,000 for the quarter ended
September 30, 2016, and increased from $7,724,000 for the quarter ended June 30, 2017.
- Net interest margin increased to 4.35% from 4.27% for the
quarter ended September 30, 2016.
- Net recoveries totaled $145,000,
compared to net recoveries of $110,000 in the preceding quarter and net
recoveries of $6,000 for the quarter
ended September 30, 2016.
- Total loans increased to $583,601,000, compared to $570,834,000 at December 31, 2016.
- Nonperforming assets as a percentage of total assets decreased
to 2.12%, compared to 2.40% at December 31, 2016.
- Nonperforming assets decreased approximately $965,000 between December 31, 2016 and
September 30, 2017.
- Other real estate owned balances decreased to $5,745,000 at September 30, 2017 when
compared to $6,471,000, at
December 31, 2016.
- The allowance for credit losses as a percentage of gross loans
increased to 1.57%, compared to 1.56% at December 31,
2016.
- Total deposits increased to $725,298,000, compared to $676,629,000 at December 31, 2016.
- Tangible book value per share increased to $5.72, compared to $5.52 at December 31, 2016.
Dennis Woods, President and Chief
Executive Officer, stated: "We are pleased to report another solid
quarter of earnings, building upon what has so far been a
successful 2017. Excluding Non-Core items such as the Fair Value
Adjustment for Trust Preferred Securities ("TRUPS") and the gain on
sale of Other Real Estate Owned (OREO), net income would be
$7,215,000 for the nine months ended
September 30, 2017, an increase of approximately 25.07%
compared to net income of $5,769,000
for same period in 2016. Neither of these items are part of Core
Income and specifically the TRUPS Fair Value Adjustment is
dependent upon market rates, which can 'add to' or 'subtract from'
Core Income and mask Core Income change." A reconciliation of
Core Income, as a non-GAAP measure, to Net Income appears at the
end of this Press Release.
Results of Operations
Annualized return on average equity (ROAE) for the nine months
ended September 30, 2017 was 9.42%, compared to 8.38% for the
nine months ended September 30, 2016. Annualized return
on average assets (ROAA) was 1.17% for the nine months ended
September 30, 2017, compared to 1.04% for the nine months
ended September 30, 2016. ROAE for the quarter ended
September 30, 2017 was 10.77% compared to 8.53% for the same
period in 2016. ROAA was 1.33% for the quarter ended
September 30, 2017, compared to 1.07% for the same period in
2016. The average cost of deposits was 0.20% for the quarter
ended September 30, 2017, up from 0.18% for the quarter ended
September 30, 2016.
Net interest income after the provision for credit losses for
the nine months ended September 30, 2017 totaled $23,081,000, an increase of $2,393,000, or 11.57%, from the net interest
income of $20,688,000 for the same
period ended September 30, 2016. The Company's net interest
margin increased from 4.10% for the nine months ended
September 30, 2016 to 4.24% for the nine months ended
September 30, 2017. The 14 basis point increase in net
interest margin in the period-to-period comparison was the result
of higher yields on both the loan portfolio and overnight deposits,
partially offset by declining yields on the investment
portfolio. The yield on loans increased from 5.20% for the
nine months ended September 30, 2016 to 5.39% for the nine
months ended September 30, 2017. The 19 basis point increase
in loan yields is primarily the result of growth of the
higher-yielding student loan portfolio and increases on rates
throughout the loan portfolio reflecting the increase in the prime
rate. The increase in net interest income on a year-over-year
comparison is the result of loan growth. Net interest income
after the provision for credit losses for the quarter ended
September 30, 2017 totaled $8,150,000, an increase of $750,000 from the net interest income of
$7,400,000 for the same period ended
September 30, 2016.
Non-interest income for the nine months ended September 30,
2017 totaled $3,151,000, reflecting a
decrease of $622,000 from
$3,773,000 in non-interest income
reported for the nine months ended September 30, 2016.
Customer service fees, which represent the largest portion of the
Company's non-interest income, totaled $2,897,000 and $2,867,000 for the nine months ended September 30, 2017 and 2016, respectively.
On a year-over-year comparative basis, non-interest income
decreased primarily due to the change in fair value option of
financial liability caused by fluctuations in the LIBOR yield
curve. The Company recorded a $688,000 loss on the fair value option of
financial liability for the nine months ended September 30,
2017, compared to a $48,000 gain for
the same period ended September 30, 2016.
Non-interest income for the quarter ended September 30,
2017 totaled $1,176,000, reflecting
an increase of $390,000 from
$786,000 in non-interest income
reported for the quarter ended September 30, 2016. This
increase was primarily due to a $88,000 loss recorded on the fair value option of
financial liability for the quarter ended September 30, 2017,
compared to a $423,000 loss for the
same period ended 2016. The change in the fair value of financial
liability was primarily caused by fluctuations in the LIBOR yield
curve. Customer service fees totaled $959,000 for the quarter ended September 30,
2017, as compared to $924,000 for the
quarter ended September 30, 2016.
For the nine months ended September 30, 2017, non-interest
expense totaled $14,543,000, a
decrease of $445,000 compared to
$14,988,000 for the nine months ended
September 30, 2016. On a year-over-year comparative
basis, non-interest expense decreased primarily due to decreases of
$473,000 in the net cost on operation
and sale of OREO, $319,000 in
regulatory assessments, and $204,000
in professional fees, partially offset by an increase of
$557,000 in salaries and employee
benefit expenses. Professional fees for the nine months ended
September 30, 2016, included a $125,000 legal settlement. Salaries and employee
benefit expenses for the nine months ended September 30, 2017,
reflect increases in salaries, higher group insurance expenses, and
increases in incentives and bonuses.
Non-interest expense totaled $4,745,000 for the quarter ended
September 30, 2017, a decrease of $119,000 as compared to $4,864,000 reported for the quarter ended
September 30, 2016. On a quarter-over-quarter comparative
basis, non-interest expense decreased primarily due to decreases in
regulatory assessments, professional fees, and net cost on
operation and sale of OREO.
Balance Sheet Review
Total assets increased $55,535,000, or 7.05%, for the nine months ended
September 30, 2017, due primarily to increases of $46,860,000 in overnight funds and $12,767,000 in gross loan balances. The increase
in loan balances is primarily attributed to the student loan
portfolio, which consists entirely of loans to medical and pharmacy
students.
Total deposits increased $48,669,000, or 7.19%, to $725,298,000 during the nine months ended
September 30, 2017. The overall increase was led by an
increase of $53,180,000 in
noninterest bearing deposits and an increase of $32,474,000 in NOW, money market, and savings
accounts. These increases were offset by a decrease of $36,985,000 in time deposits. Interest bearing
deposits and savings accounts increased 10.44% to $343,415,000 at September 30, 2017, compared
to $310,941,000 at December 31,
2016. Noninterest bearing deposits increased 20.24% to
$315,877,000 at September 30,
2017, compared to $262,697,000 at
December 31, 2016. As a result of the increases in demand
deposits, NOW, money market, and saving accounts, net core deposits
increased $85,654,000.
Shareholders' equity at September 30, 2017 was $101,108,000, up $4,454,000 from shareholders' equity of
$96,654,000 at December 31,
2016.
The Board of Directors of United Security Bancshares declared
cash dividends on common stock on April 25,
2017 and June 27, 2017, for
$0.05 per share, and on September 26, 2017, for $0.07 per share. The dividends were payable
May 17, 2017, to shareholders of
record as of May 8, 2017, and
were payable on July 21, 2017, to
shareholders of record as of July 7,
2017. The current dividend is payable October 19, 2017, to shareholders of record as of
October 10, 2017. No assurances
can be provided that future dividends, whether payable in stock or
cash, will be declared and/or as to the timing of such future
dividends, if any.
Credit Quality
The Company recorded a recovery of provision for credit losses
of $24,000 for the nine months ended
September 30, 2017, compared to a recovery of provision of
$7,000 for the nine months ended
September 30, 2016. Net loan recoveries totaled
$280,000 for the nine months ended
September 30, 2017, as compared to net charge-offs of
$788,000 for the nine months ended
September 30, 2016. The Company recorded a provision for
credit loss of $7,000 for the quarter
ended September 30, 2017, compared to a provision for credit
losses of $4,000 for the quarter
ended September 30, 2016. Net loan recoveries totaled
$145,000 for the quarter ended
September 30, 2017, as compared to net loan recoveries of
$6,000 for the quarter ended
September 30, 2016.
The Company has maintained an adequate allowance for loan losses
which totaled 1.57% of total loans at September 30, 2017,
compared to 1.56% of total loans at December 31, 2016. In
determining the adequacy of the allowance for loan losses, the
judgment of the Company's management is a significant factor and
management considers the allowance for credit losses at
September 30, 2017 to be adequate.
Non-performing assets, comprised of nonaccrual loans, troubled
debt restructures (TDR), other real estate owned through
foreclosure (OREO), and loans more than 90 days past due and still
accruing interest, decreased approximately $965,000 between December 31, 2016 and
September 30, 2017 to $17,916,000. Nonperforming assets as a
percentage of total assets decreased from 2.40% at
December 31, 2016 to 2.12% at September 30, 2017.
The decrease in nonperforming assets is mainly attributed to
decreases in nonaccrual loans, impaired loans and OREO.
Nonaccrual loans decreased $2,119,000
between December 31, 2016 and September 30, 2017 to
$5,145,000. Impaired loans
totaled $15,338,000 at
September 30, 2017, a decrease of $841,000 from the balance of $16,179,000 at December 31, 2016. OREO
totaled $5,745,000 at
September 30, 2017 as compared to $6,471,000 at December 31, 2016.
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 11 full-service branch
offices in Fresno, Bakersfield, Campbell, Caruthers, Coalinga, Firebaugh, Oakhurst, San
Joaquin, and Taft. Additionally, United Security Bank
operates Commercial Real Estate Construction, Commercial Lending,
Consumer Lending, and Financial Services 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 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; (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,
(9) failure to comply with the written regulatory agreement under
which the Company is subject and (10) unknown economic impacts
caused by the State of
California's budget issues, including the effect on Federal
spending due to sequestration required by the Budget Control Act of
2011. Management cannot predict at this time the severity or
duration of the effects of the recent business slowdown on the
Company's specific business activities and profitability. Weaker or
a further decline in capital and consumer spending, and related
recessionary trends could adversely affect the Company's
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, 2016, and
particularly 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
("SEC").
|
United Security
Bancshares
|
|
|
|
|
Consolidated
Balance Sheets (unaudited)
|
|
|
|
|
(in
thousands)
|
|
|
|
|
September 30,
2017
|
|
December 31,
2016
|
|
Assets
|
|
|
|
|
Cash and
non-interest-bearing deposits in other banks
|
$
|
22,688
|
|
|
$
|
25,781
|
|
|
Cash and due from
Federal Reserve Bank
|
137,204
|
|
|
87,251
|
|
|
Cash and cash
equivalents
|
159,892
|
|
|
113,032
|
|
|
Interest-bearing
deposits in other banks
|
654
|
|
|
650
|
|
|
Investment securities
available for sale (at fair value)
|
48,356
|
|
|
57,491
|
|
|
Loans and leases, net
of unearned fees
|
583,601
|
|
|
570,834
|
|
|
Less: Allowance for
credit losses
|
(9,158)
|
|
|
(8,902)
|
|
|
Net loans
|
574,443
|
|
|
561,932
|
|
|
Premises and
equipment - net
|
10,469
|
|
|
10,445
|
|
|
Other real estate
owned
|
5,745
|
|
|
6,471
|
|
|
Goodwill and
intangible assets
|
4,488
|
|
|
4,488
|
|
|
Cash surrender value
of life insurance
|
19,447
|
|
|
19,047
|
|
|
Deferred income tax
asset - net
|
3,423
|
|
|
3,298
|
|
|
Accrued interest
receivable
|
5,846
|
|
|
3,895
|
|
|
Other
assets
|
10,744
|
|
|
7,223
|
|
|
Total
assets
|
$
|
843,507
|
|
|
$
|
787,972
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Deposits
|
|
|
|
|
Non-interest bearing
demand deposits
|
$
|
315,877
|
|
|
$
|
262,697
|
|
|
Money market, NOW, and
savings
|
343,415
|
|
|
310,941
|
|
|
Time
|
66,006
|
|
|
102,991
|
|
|
Total
deposits
|
725,298
|
|
|
676,629
|
|
|
Accrued interest
payable
|
41
|
|
|
76
|
|
|
Other
liabilities
|
7,526
|
|
|
5,781
|
|
|
Junior subordinated
debentures (at fair value)
|
9,534
|
|
|
8,832
|
|
|
Total
liabilities
|
742,399
|
|
|
691,318
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
Common stock, no par
value 20,000,000 shares authorized, 16,885,615 issued and
outstanding at September 30, 2017, and 16,705,594 at December 31,
2016
|
57,861
|
|
|
56,557
|
|
|
Retained
earnings
|
43,615
|
|
|
40,701
|
|
|
Accumulated other
comprehensive loss
|
(368)
|
|
|
(604)
|
|
|
Total
shareholders' equity
|
101,108
|
|
|
96,654
|
|
|
Total liabilities
and shareholders' equity
|
$
|
843,507
|
|
|
$
|
787,972
|
|
|
United Security
Bancshares
|
|
|
|
|
|
|
Consolidated
Statements of Income
(unaudited)
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine months ended
September 30,
|
|
2017
|
2016
|
|
2017
|
2016
|
|
Interest
income:
|
|
|
|
|
|
|
Interest and fees on
loans
|
$
|
7,978
|
$
|
7,435
|
|
$
|
22,782
|
$
|
20,722
|
|
Interest on
investment securities
|
238
|
244
|
|
691
|
618
|
|
Interest on deposits
in FRB
|
375
|
72
|
|
858
|
348
|
|
Interest on deposits
in other banks
|
1
|
2
|
|
4
|
6
|
|
Total interest
income
|
8,592
|
7,753
|
|
24,335
|
21,694
|
|
Interest
expense:
|
|
|
|
|
|
|
Interest on
deposits
|
355
|
289
|
|
1,055
|
837
|
|
Interest on other
borrowed funds
|
80
|
60
|
|
223
|
176
|
|
Total interest
expense
|
435
|
349
|
|
1,278
|
1,013
|
|
Net interest
income
|
8,157
|
7,404
|
|
23,057
|
20,681
|
|
Provision
(recovery) for Credit Losses
|
7
|
4
|
|
(24)
|
(7)
|
|
Net interest
income after provision (recovery)
for credit losses
|
8,150
|
7,400
|
|
23,081
|
20,688
|
|
Non-interest
income:
|
|
|
|
|
|
|
Customer service
fees
|
959
|
924
|
|
2,897
|
2,867
|
|
Increase in cash
surrender value of bank-owned
life insurance
|
134
|
131
|
|
401
|
394
|
|
(Loss) gain on Fair
Value of Financial Liability
|
(88)
|
(423)
|
|
(688)
|
48
|
|
Loss on sale of other
investment
|
3
|
—
|
|
3
|
—
|
|
Other non-interest
income
|
168
|
154
|
|
538
|
464
|
|
Total non-interest
income
|
1,176
|
786
|
|
3,151
|
3,773
|
|
Non-interest
expense:
|
|
|
|
|
|
|
Salaries and employee
benefits
|
2,578
|
2,533
|
|
8,149
|
7,592
|
|
Occupancy
expense
|
1,087
|
1,097
|
|
3,144
|
3,212
|
|
Data
processing
|
29
|
23
|
|
81
|
108
|
|
Professional
fees
|
311
|
327
|
|
912
|
1,116
|
|
Regulatory
assessments
|
43
|
131
|
|
313
|
632
|
|
Director
fees
|
72
|
75
|
|
215
|
218
|
|
Correspondent bank
service charges
|
18
|
20
|
|
55
|
59
|
|
(Gain) loss on
California tax credit partnership
|
(1)
|
49
|
|
118
|
122
|
|
Net loss (gain) on
operation and sale of OREO
|
21
|
39
|
|
(257)
|
216
|
|
Other non-interest
expense
|
587
|
570
|
|
1,813
|
1,713
|
|
Total non-interest
expense
|
4,745
|
4,864
|
|
14,543
|
14,988
|
|
|
|
|
|
|
|
Income before
income tax provision
|
4,581
|
3,322
|
|
11,689
|
9,473
|
|
Provision for
income taxes
|
1,840
|
1,282
|
|
4,685
|
3,643
|
|
Net
income
|
$
|
2,741
|
$
|
2,040
|
|
$
|
7,004
|
$
|
5,830
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
|
0.16
|
$
|
0.12
|
|
$
|
0.41
|
$
|
0.35
|
|
Diluted earnings per
common share
|
$
|
0.16
|
$
|
0.12
|
|
$
|
0.41
|
$
|
0.35
|
|
Weighted average
basic shares for EPS
|
16,885,615
|
16,881,422
|
|
16,885,578
|
16,880,835
|
|
Weighted average
diluted shares for EPS
|
16,907,267
|
16,891,066
|
|
16,904,063
|
16,887,078
|
|
|
|
|
|
|
|
United Security
Bancshares
|
|
|
|
|
|
|
|
|
Average Balances
and Rates (unaudited)
|
|
|
|
|
|
|
|
|
(in
thousands)
|
Three Months Ended
September 30,
|
|
Nine months ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Average
Balances:
|
|
|
|
|
|
|
|
|
Loans (1)
|
$
|
574,484
|
|
|
$
|
574,885
|
|
|
$
|
565,068
|
|
|
$
|
532,133
|
|
|
Investment securities
– taxable
|
51,811
|
|
|
56,887
|
|
|
54,284
|
|
|
46,384
|
|
|
Interest-bearing deposits in other
banks
|
654
|
|
|
1,533
|
|
|
652
|
|
|
1,531
|
|
|
Interest-bearing deposits in FRB
|
117,803
|
|
|
56,264
|
|
|
107,921
|
|
|
93,305
|
|
|
Total interest-earning
assets
|
744,752
|
|
|
689,569
|
|
|
727,925
|
|
|
673,353
|
|
|
Allowance for credit
losses
|
(9,104)
|
|
|
(8,913)
|
|
|
(9,017)
|
|
|
(9,439)
|
|
|
Cash and due from
banks
|
22,375
|
|
|
21,857
|
|
|
21,393
|
|
|
22,126
|
|
|
Other real estate
owned
|
5,745
|
|
|
7,407
|
|
|
6,083
|
|
|
9,797
|
|
|
Other non-earning
assets
|
52,856
|
|
|
49,846
|
|
|
51,687
|
|
|
49,452
|
|
|
Total average
assets
|
816,624
|
|
|
759,766
|
|
|
798,071
|
|
|
745,289
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
deposits
|
391,353
|
|
|
372,909
|
|
|
398,963
|
|
|
368,464
|
|
|
Junior subordinated
debentures
|
9,399
|
|
|
7,805
|
|
|
9,114
|
|
|
7,995
|
|
|
Total interest-bearing
liabilities
|
400,752
|
|
|
380,714
|
|
|
408,077
|
|
|
376,459
|
|
|
Non-interest-bearing
deposits
|
308,480
|
|
|
275,878
|
|
|
283,783
|
|
|
268,820
|
|
|
Other
liabilities
|
6,390
|
|
|
8,267
|
|
|
6,818
|
|
|
7,291
|
|
|
Total
liabilities
|
715,622
|
|
|
664,859
|
|
|
698,678
|
|
|
652,570
|
|
|
Total
equity
|
101,002
|
|
|
94,907
|
|
|
99,393
|
|
|
92,719
|
|
|
Total liabilities and
equity
|
$
|
816,624
|
|
|
$
|
759,766
|
|
|
$
|
798,071
|
|
|
$
|
745,289
|
|
|
|
|
|
|
|
|
|
|
Average
Rates:
|
|
|
|
|
|
|
|
|
Loans (1)
|
5.51
|
%
|
|
5.15
|
%
|
|
5.39
|
%
|
|
5.20
|
%
|
|
Investment
securities- taxable
|
1.82
|
%
|
|
1.71
|
%
|
|
1.70
|
%
|
|
1.78
|
%
|
|
Interest-bearing
deposits in other banks
|
0.61
|
%
|
|
0.52
|
%
|
|
0.82
|
%
|
|
0.52
|
%
|
|
Interest-bearing
deposits in FRB
|
1.26
|
%
|
|
0.51
|
%
|
|
1.06
|
%
|
|
0.50
|
%
|
|
Earning
assets
|
4.58
|
%
|
|
4.47
|
%
|
|
4.47
|
%
|
|
4.30
|
%
|
|
Interest bearing
deposits
|
0.36
|
%
|
|
0.31
|
%
|
|
0.35
|
%
|
|
0.30
|
%
|
|
Junior subordinated
debentures
|
3.38
|
%
|
|
3.06
|
%
|
|
3.27
|
%
|
|
2.94
|
%
|
|
Total
interest-bearing liabilities
|
0.43
|
%
|
|
0.36
|
%
|
|
0.42
|
%
|
|
0.36
|
%
|
|
Net interest
margin
|
4.35
|
%
|
|
4.27
|
%
|
|
4.24
|
%
|
|
4.10
|
%
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
United Security
Bancshares
|
|
|
|
|
|
|
Credit Quality
(unaudited)
|
|
|
|
|
|
|
(dollars in
thousands)
|
|
|
|
|
|
|
September 30,
2017
|
|
December 31,
2016
|
|
September 30,
2016
|
|
Commercial and
industrial
|
$
|
271
|
|
|
$
|
565
|
|
|
$
|
569
|
|
|
Real estate -
mortgage
|
466
|
|
|
1,126
|
|
|
1,539
|
|
|
RE construction &
development
|
4,408
|
|
|
4,608
|
|
|
4,674
|
|
|
Installment/other
|
—
|
|
|
965
|
|
|
965
|
|
|
Total Nonaccrual
Loans
|
$
|
5,145
|
|
|
$
|
7,264
|
|
|
$
|
7,747
|
|
|
|
|
|
|
|
|
Loans past due 90
days and still accruing
|
—
|
|
|
—
|
|
|
—
|
|
|
Restructured
Loans
|
7,026
|
|
|
5,146
|
|
|
3,826
|
|
|
Total nonperforming
loans
|
$
|
12,171
|
|
|
$
|
12,410
|
|
|
$
|
11,573
|
|
|
Other real estate
owned
|
5,745
|
|
|
6,471
|
|
|
7,065
|
|
|
Total nonperforming
assets
|
$
|
17,916
|
|
|
$
|
18,881
|
|
|
$
|
18,638
|
|
|
|
|
|
|
|
|
Nonperforming assets
to total gross loans
|
3.07
|
%
|
|
3.31
|
%
|
|
3.32
|
%
|
|
Nonperforming assets
to total assets
|
2.12
|
%
|
|
2.40
|
%
|
|
2.38
|
%
|
|
Allowance for loan
losses to nonperforming loans
|
75.24
|
%
|
|
71.73
|
%
|
|
77.06
|
%
|
|
United Security
Bancshares
|
|
|
|
|
|
|
|
|
Selected Financial
Data (unaudited)
|
|
|
|
|
|
|
|
|
(dollars in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine months ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
1.33
|
%
|
|
1.07
|
%
|
|
1.17%
|
|
1.04%
|
|
Return on average
equity
|
10.77
|
%
|
|
8.53
|
%
|
|
9.42%
|
|
8.38%
|
|
Net (recoveries)
charge-offs to average loans
|
(0.10)%
|
|
|
0.00
|
%
|
|
(0.07)%
|
|
0.20%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2017
|
|
December 31,
2016
|
|
|
|
|
|
Shares outstanding -
period end
|
16,885,615
|
|
|
16,705,594
|
|
|
|
|
|
|
Book value per
share
|
$5.99
|
|
|
$5.79
|
|
|
|
|
|
|
Tangible book value
per share (1)
|
$5.72
|
|
|
$5.52
|
|
|
|
|
|
|
Efficiency ratio
(2)
|
55.03
|
%
|
|
61.49
|
%
|
|
|
|
|
|
Total impaired
loans
|
$15,338
|
|
|
$16,179
|
|
|
|
|
|
|
Net Loan to deposit
ratio
|
79.20
|
%
|
|
83.05
|
%
|
|
|
|
|
|
Allowance for credit
losses to total loans
|
1.57
|
%
|
|
1.56
|
%
|
|
|
|
|
|
Total capital to risk
weighted assets
|
|
|
|
|
|
|
|
|
Company
|
17.97
|
%
|
|
17.26
|
%
|
|
|
|
|
|
Bank
|
17.85
|
%
|
|
17.19
|
%
|
|
|
|
|
|
Tier 1 capital to
risk-weighted assets
|
|
|
|
|
|
|
|
|
Company
|
16.72
|
%
|
|
16.01
|
%
|
|
|
|
|
|
Bank
|
16.60
|
%
|
|
15.94
|
%
|
|
|
|
|
|
Common equity tier 1
capital to risk-weighted assets
|
|
|
|
|
|
|
|
|
Company
|
15.29
|
%
|
|
14.68
|
%
|
|
|
|
|
|
Bank
|
16.60
|
%
|
|
15.94
|
%
|
|
|
|
|
|
Tier 1 capital to
adjusted average assets (leverage)
|
|
|
|
|
|
|
|
|
Company
|
12.96
|
%
|
|
12.97
|
%
|
|
|
|
|
|
Bank
|
12.95
|
%
|
|
12.99
|
%
|
|
|
|
|
|
|
(1) Tangible book
value per share is defined as total shareholders' equity minus
goodwill divided by shares outstanding.
|
|
|
(2) Efficiency ratio
is defined as total noninterest expense minus net cost on operation
of OREO divided by net interest income before provision for credit
losses plus total noninterest income minus loss on fair value of
financial liability.
|
|
United Security
Bancshares
|
|
|
|
|
|
|
|
|
|
Selected Financial
Data
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Information (dollars in thousands)
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30
|
|
|
|
|
|
|
2017
|
|
2016
|
|
Change
$
|
|
Change
%
|
|
TRUPs (1) Fair Value
Adjustment (Loss) Gain Pretax
|
|
(688)
|
|
|
48
|
|
|
|
|
|
|
Gain on sale of Other
Real Estate Owned (OREO) (2)
|
|
336
|
|
|
53
|
|
|
|
|
|
|
Total balance of
Non-Core items
|
|
(352)
|
|
|
101
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax Effect
(40%)
|
|
(141)
|
|
|
40
|
|
|
|
|
|
|
Non-Core Items Net of
Taxes
|
|
(211)
|
|
|
61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
7,004
|
|
|
5,830
|
|
|
1,174
|
|
|
20.14
|
%
|
|
Non-GAAP Core Net
Income
|
|
7,215
|
|
|
5,769
|
|
|
1,446
|
|
|
25.07
|
%
|
|
|
(1) Trust Preferred
Securities ("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 Core Income change.
|
|
|
(2) Gain on
sale of Other Real Estate Owned (OREO) is not part of Core
Income.
|
View original
content:http://www.prnewswire.com/news-releases/united-security-bancshares-reports-3rd-quarter-2017-earnings-of-27-million-300538446.html
SOURCE United Security Bancshares