FRESNO, Calif., Oct. 15 /PRNewswire-FirstCall/ -- Dennis R. Woods, President and Chief Executive
Officer of United Security Bancshares
http://www.unitedsecuritybank.com/ (Nasdaq: UBFO) reported today
unaudited results for the quarter and year-to-date periods ended
September 30, 2010. Consolidated net
income was $410,000, or $0.03 per basic and diluted common share for the
quarter ended September 30, 2010,
compared to $693,000, or $0.05 per basic and diluted common share for the
quarter ended September 30, 2009. Net
income was $515,000 or $0.04 per basic and diluted common share for the
previous quarter ended June 30,
2010.
Net income was $1,368,000, or
$0.11 per basic and diluted common
share, for the nine months ended September
30, 2010, compared to a loss of $4,112,000, or $0.32 per basic and diluted common share for the
nine months ended September 30,
2009.
Annualized return on average equity (ROE) for the quarter ended
September 30, 2010 was 2.07%,
compared to 3.63% for the same period in 2009, and 2.65% for the
previous quarter ended June 30, 2010.
Annualized return on average assets (ROA) was 0.23% for quarter
ended September 30, 2010 compared to
0.38% for the same period in 2009, and 0.29% for the previous
quarter ended June 30, 2010.
The Board of Directors of United Security Bancshares declared a
4th 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 October 8, 2010, and the shares will be issued on
October 20, 2010.
Woods added, "Improvements in the housing sector seen in the
first half of year dissipated in the 3rd quarter with the loss of
the home buyer tax credit program. The now-expired credits may have
encouraged buyers to purchase homes sooner than they would have
otherwise and created a market lull once they expired. Other
factors like weak job growth and high unemployment play a
significant factor in home purchase decisions. For most people out
home shopping now, there are ultra-low mortgage rates and this may
spur home sales in time."
"We continue to see improvements in the Company's capital
ratios, liquidity, problem asset levels, and earnings continue to
show improvement over the year-ago period as reflected in net
income of $1,368,000 reported for the
nine months ended September 30, 2010
as compared to a net loss of $4,112,000 reported for the nine months ended
September 2009. Reengineering
ourselves along with a lot of hard work continues to pay-off and
that is very rewarding."
Shareholders' equity at September 30,
2010 was $78,654,000 and
Shareholders' equity at September 30,
2009 was $76,698,000.
Net interest income before provision for credit loss for the 3rd
quarter 2010 was $6,820,000, down
from $7,159,000 reported during the
3rd quarter of 2009. The net interest margin was 4.38% in the 3rd
quarter of 2010 and 4.61% in the 3rd quarter of 2009. For the
previous quarter ended June 30, 2010,
net interest income was $7,376,000
and the net interest margin was 4.87%. The net interest margin was
4.66% for the nine months ended September
30, 2010 and 4.46% for the same period in 2009.
Noninterest income for the 3rd quarter of 2010 was $1,470,000, up $451,000 from $1,019,000 in the 3rd quarter of 2009 for an
increase of 44.2%. The net losses on other real estate owned
through foreclosure (OREO) sales were $11,000 in the 3rd quarter of 2010 compared with
net losses of $611,000 in the 3rd
quarter of 2009, and this is the primary component accounting for
the change in noninterest income.
Noninterest income year-to-date ended September 30, 2010 was $5,462,000, up $2,024,000 from $3,438,000 reported in 2009 for an increase of
58.9%. The increase resulted primarily from the gain from the fair
value adjustment to the carrying amount of Trust Preferred
Securities that was up $555,000,
gains on the sale of OREO up $853,000
and gains on the sale of loans up $508,000 as compared with nine-months ended
September 30, 2009.
Other operating expenses for the three months ended September 30, 2010 were $6,580,000 compared with $6,849,000 for the same period in 2009, a
decrease of $269,000 or 3.9%. For the
nine months ended September 30, 2010,
other operating expenses totaled $20,952,000, down $662,000 from $21,614,000, for the same period in 2009. The
table below shows the changes in expense components for the 3rd
quarter and year-to-date periods.
|
|
OTHER
OPERATING EXPENSE CHANGES
|
Three
Months
|
|
Nine
Months
|
|
|
Third
Quarter Changes
|
|
YTD
Changes
|
|
|
2010 vs.
2009
|
|
2010 vs.
2009
|
|
|
(000'S)
|
|
(000'S)
|
|
SALARIES & OTHER EMPL
BENEFITS
|
125
|
|
227
|
|
FDIC ASSESSMENT
|
303
|
|
592
|
|
OREO EXPENSE
|
(110)
|
|
(186)
|
|
WRITE-DOWN OREO
EXPENSE
|
120
|
|
843
|
|
GOODWILL IMPAIRMENT
|
0
|
|
(1,612)
|
|
IMPAIRMENT ON CMO'S
|
70
|
|
368
|
|
SUNDRY LOSSES -
OPERATIONS
|
(813)
|
|
(814)
|
|
OTHER
|
36
|
|
(80)
|
|
TOTAL
|
(269)
|
|
(662)
|
|
|
|
|
|
|
|
The provision for loan loss was $1,226,000 for the 3rd quarter of 2010 and
$436,000 for 3rd quarter of 2009.
Year-to-date ending September 30, the
provision for loan loss was $3,376,000 for 2010 and $8,593,000 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 September 30,
2010 to be adequate.
Non-performing assets decreased to 9.22% of total assets on
September 30, 2010 down from 12.43%
on September 30, 2009. Net
charged-off loans were 0.21% of average loans during the 3rd
quarter of 2010 compared with 1.70% during the 3rd quarter of 2009
and 3.67% for the previous quarter ended June 30, 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").
|
|
United Security
Bancshares
|
|
Consolidated Balance Sheets
(unaudited)
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
2010
|
|
2009
|
|
Cash & nonint.-bearing
deposits in banks
|
$14,031
|
|
$15,327
|
|
Interest-bearing deposits in
banks
|
90,902
|
|
9,473
|
|
Federal funds sold
|
780
|
|
0
|
|
Investment securities
AFS
|
56,638
|
|
80,754
|
|
Loans, net of unearned
fees
|
471,594
|
|
533,253
|
|
Less: allowance for loan
losses
|
(12,975)
|
|
(14,413)
|
|
Loans, net
|
458,619
|
|
518,840
|
|
Premises and equipment,
net
|
12,625
|
|
13,362
|
|
Intangible assets
|
7,360
|
|
9,664
|
|
Other real estate
owned
|
34,254
|
|
34,841
|
|
Other assets
|
34,958
|
|
39,564
|
|
TOTAL
ASSETS
|
$710,167
|
|
$721,825
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
Noninterest-bearing demand &
NOW
|
216,858
|
|
176,657
|
|
Savings & Money
Market
|
155,205
|
|
167,493
|
|
Time
|
214,904
|
|
227,920
|
|
Total deposits
|
586,967
|
|
572,070
|
|
|
|
|
|
|
Borrowed funds
|
32,000
|
|
54,360
|
|
Other liabilities
|
2,488
|
|
7,187
|
|
Junior subordinated
debentures
|
10,058
|
|
11,510
|
|
TOTAL
LIABILITIES
|
$631,513
|
|
$645,127
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
Common shares
outstanding:
|
|
|
|
|
12,875,097 at Sep. 30,
2010
|
|
|
|
|
12,372,771 at Sep. 30,
2009
|
$39,375
|
|
$36,987
|
|
Retained earnings
|
40,097
|
|
41,498
|
|
Accumulated other comprehensive
income
|
(818)
|
|
(1,787)
|
|
Total shareholders'
equity
|
78,654
|
|
76,698
|
|
TOTAL LIABILITIES
&
|
|
|
|
|
SHAREHOLDERS' EQUITY
|
710,167
|
|
721,825
|
|
|
|
|
|
|
|
|
|
United Security
Bancshares
|
Three
|
|
Three
|
|
|
Nine
|
|
Nine
|
|
Consolidated Statements of
Income
|
Months
|
|
Months
|
|
|
Months
|
|
Months
|
|
(dollars in 000's, except per
share amounts)
|
Ended
|
|
Ended
|
|
|
Ended
|
|
Ended
|
|
(unaudited)
|
Sept.
30,
|
|
Sept.
30,
|
|
|
Sept.
30,
|
|
Sept.
30,
|
|
|
2010
|
|
2009
|
|
|
2010
|
|
2009
|
|
Interest income
|
$7,962
|
|
$8,870
|
|
|
$24,906
|
|
$26,824
|
|
Interest expense
|
1,142
|
|
1,711
|
|
|
3,548
|
|
5,722
|
|
Net interest income
|
6,820
|
|
7,159
|
|
|
21,358
|
|
21,102
|
|
Provision for loan
losses
|
1,226
|
|
436
|
|
|
3,376
|
|
8,593
|
|
Other income
|
1,470
|
|
1,019
|
|
|
5,462
|
|
3,438
|
|
Other expenses
|
6,580
|
|
6,849
|
|
|
20,952
|
|
21,614
|
|
Income before income tax
provision
|
484
|
|
893
|
|
|
2,492
|
|
(5,667)
|
|
Provision for income
taxes
|
74
|
|
200
|
|
|
1,124
|
|
(1,555)
|
|
NET INCOME
|
$410
|
|
$693
|
|
|
$1,368
|
|
($4,112)
|
|
|
|
|
|
|
|
|
|
|
|
United Security
Bancshares
|
Three
|
|
Three
|
|
|
Nine
|
|
Nine
|
|
Selected Financial
Data
|
Months
|
|
Months
|
|
|
Months
|
|
Months
|
|
(dollars in 000's except per
share amounts)
|
Ended
|
|
Ended
|
|
|
Ended
|
|
Ended
|
|
|
30-Sep-10
|
|
30-Sep-09
|
|
|
30-Sep-10
|
|
30-Sep-09
|
|
Basic Earnings Per
Share
|
$0.03
|
|
$0.05
|
|
|
$0.11
|
|
($0.32)
|
|
Diluted Earning Per
Share
|
$0.03
|
|
$0.05
|
|
|
$0.11
|
|
($0.32)
|
|
|
|
|
|
|
|
|
|
|
|
Annualized
Return on:
|
|
|
|
|
|
|
|
|
|
Average Assets
|
0.23%
|
|
0.38%
|
|
|
0.26%
|
|
-0.74%
|
|
Average Equity
|
2.07%
|
|
3.63%
|
|
|
2.35%
|
|
-6.95%
|
|
Net Interest Margin
|
4.38%
|
|
4.61%
|
|
|
4.66%
|
|
4.46%
|
|
|
|
|
|
|
|
|
|
|
|
Net Charge-offs to Average
Loans
|
0.21%
|
|
1.70%
|
|
|
1.44%
|
|
1.52%
|
|
|
|
|
|
|
|
|
|
|
|
|
30-Sep-10
|
|
30-Sep-09
|
|
|
|
|
|
|
Book Value Per Share
|
$6.11
|
|
$6.20
|
|
|
|
|
|
|
Tangible Book Value Per
Share
|
$5.54
|
|
$5.42
|
|
|
|
|
|
|
Efficiency Ratio
|
78.12%
|
|
88.08%
|
|
|
|
|
|
|
Non Performing Assets to Total
Assets
|
9.22%
|
|
12.43%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Loan Losses to
Total Loans
|
2.75%
|
|
2.70%
|
|
|
|
|
|
|
Shares Outstanding - period
end
|
12,875,097
|
|
12,372,771
|
|
|
|
|
|
|
Basic Shares - YTD average
weighted
|
12,875,097
|
|
12,875,097
|
|
|
|
|
|
|
Diluted Shares - YTD average
weighted
|
12,875,097
|
|
12,875,097
|
|
|
|
|
|
|
Basic Shares - QTD average
weighted
|
12,875,097
|
|
12,875,097
|
|
|
|
|
|
|
Diluted Shares - QTD average
weighted
|
12,875,097
|
|
12,875,097
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE United Security Bancshares
Copyright . 15 PR Newswire