United Security Bancshares (Nasdaq: UBFO) today announced
its unaudited financial results for the six months ended June 30,
2020. The Company recognized net income of $4,768,000 for the six
months ended June 30, 2020, a decrease of 41.2% compared to the net
income of $8,104,000 recognized for the six months ended June 30,
2019. Basic and diluted earnings per share decreased to $0.28 for
the six months ended June 30, 2020, as compared to basic and
diluted earnings per share of $0.48 for the six months ended June
30, 2019.
Second Quarter 2020 Highlights (at or for the quarter
ended June 30, 2020, except where noted)
- Net income for the quarter was $2,012,000, representing a
$2,085,000 or 50.89% decrease from $4,097,000 for the quarter ended
June 30, 2019. The decrease is a result of a reduction in interest
income related to a lower rate environment, a provision for loan
losses, and a write-down on OREO.
- The allowance for credit losses as a percentage of gross loans
increased to 1.37%, compared to 1.33% at December 31, 2019. The
provision for credit losses totaled $428,000 for the quarter,
compared to $4,000 for the quarter ended June 30, 2019. The
increase in provision is attributed to net charge-offs realized
during the quarter..
- A loss on the fair value of junior subordinated debt of $30,000
was recorded for the quarter, as compared to a $497,000 gain for
the quarter ended June 30, 2019.
- Total loans, net of unearned fees, increased 8.73% to
$648,650,000, compared to $596,554,000 at December 31, 2019.
Included in the increase are $26,035,000 in Paycheck Protection
Program (PPP) loans.
- Total deposits increased 9.13% to $893,112,000, compared to
$818,362,000 atDecember 31, 2019.
- Book value per share increased to $6.92, compared to $6.83 at
December 31, 2019.
- Net interest margin decreased to 3.33% from 4.28% for the
quarter ended June 30, 2019.
- Annualized average cost of deposits decreased to 0.21% from
0.42% for the quarter ended June 30, 2019.
- Net charge-offs totaled $686,000, compared to net recoveries of
$31,000 for the quarter ended June 30, 2019.
- Capital positions remain strong with a 12.25% Tier 1 Leverage
Ratio, a 14.71% Common Equity Tier 1 Ratio; a 15.92% Tier 1
Risk-Based Capital Ratio; and a 17.16% Total Risk-Based Capital
Ratio.
- Annualized return on average assets ("ROAA") was 0.80%,
compared to 1.71% for the quarter ended June 30, 2019.
- Annualized return on average equity ("ROAE") was 6.80%,
compared to 14.53% for the quarter ended June 30, 2019.
Dennis Woods, President and Chief Executive Officer, stated:
"Although our institution continues to be impacted by negative
industry-wide effects of the COVID-19 pandemic, we continue to see
strong growth as we have reached record highs in loan and deposit
balances. We funded over 200 SBA PPP loans for our borrowers over
the last quarter, resulting in $26,035,000 in balances and
$1,028,000 in unearned fees to be recognized over the life of the
loans. We believe our strong credit quality, ample liquidity, and
capital level provide a solid foundation as we continue to navigate
through these challenging times."
Results of Operations
ROAE for the six months ended June 30, 2020 was 8.09%, compared
to 14.57% for the six months ended June 30, 2019. ROAA was 0.98%
for the six months ended June 30, 2020, compared to 1.71% for the
six months ended June 30, 2019.
The annualized average cost of deposits was 0.21% for the
quarter ended June 30, 2020, a decrease from 0.42% for quarter
ended June 30, 2019. The decrease in the cost of deposits is
primarily attributed to reductions on deposit rates made in the
fourth quarter of 2019 and first quarter of 2020. Average
interest-bearing deposits decreased 1.16% between the quarters
ended June 30, 2019 and 2020 to $516,271,000.
Net interest income after the provision for credit losses for
the six months ended June 30, 2020 totaled $14,023,000, a decrease
of $4,730,000, or 25.22%, from $18,753,000 for the same period
ended June 30, 2019. Net interest income after the provision for
credit losses includes a provision for credit losses of $2,134,000
for the six months ended June 30, 2020, compared to a provision of
$10,000 for the six months ended June 30, 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 4.36% for the six months ended June 30, 2019 to
3.65% for the six months ended June 30, 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 6.01% for the six months
ended June 30, 2019 to 5.21% for the six months ended June 30,
2020. The yield on interest bearing liabilities decreased from
0.74% for the six months ended June 30, 2019 to 0.50% for the six
months ended June 30, 2020.
Net interest income after the provision for credit losses was
$7,149,000 for the quarter ended June 30, 2020, representing a
$2,150,000 or 23.1% decrease compared to the same period ended June
30, 2019. The Company's net interest margin decreased from 4.28% to
3.33% between the quarters ended June 30, 2019 and June 30, 2020.
The reduction in net interest margin is driven by the reduction in
yields on all interest earnings assets, partially offset by a
decrease in interest expense on deposits.
Non-interest income for the six months ended June 30, 2020
totaled $3,796,000, reflecting an increase of $544,000 from the
$3,252,000 in non-interest income reported for the six months ended
June 30, 2019. Customer service fees totaled $1,346,000 and
$1,639,000 for the six months ended June 30, 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 increased
primarily due to a $1,469,000 gain on the fair value of junior
subordinated debentures (TRUPs) for the six months ended June 30,
2020, compared to a $911,000 gain for the same period ended June
30, 2019. The change in the fair value of TRUPs reflected in
non-interest income was caused by fluctuations in the LIBOR yield
curve. Non-interest income for the six months ended June 30, 2019
includes a $114,000 loss resulting from the dissolution of the USB
Real Estate Investment Trust (REIT) which was completed in February
2019. Non-interest income for the six months ended June 30, 2020
includes a $310,000 gain in proceeds from bank-owned life
insurance.
Noninterest income for the quarter ended June 30, 2020 totaled
$1,214,000, reflecting a decrease of $515,000 from the $1,729,000
in non-interest income reported for the quarter ended June 30,
2019. The decrease is attributed to a $212,000 reduction in
customer service fees and a $527,000 decrease in gain on fair value
of TRUPS, partially offset by a $310,000 gain in proceeds from
bank-owned life insurance.
For the six months ended June 30, 2020, non-interest expense
totaled $11,145,000, an increase of $536,000 compared to
$10,609,000 for the six months ended June 30, 2019. On a
year-over-year comparative basis, non-interest expense increased
primarily due to a $781,000 increase in expenses related to other
real estate owned, which included a write-down of $727,000 on one
property. This was partially offset by decreases of $302,000 in
professional fees and decreases of $123,000 in salaries and
employee benefits. Salary and employee benefits expense for the six
months ended June 30, 2019 includes a $231,000 reduction in bonus
expense. Also included in net cost on operation and sale of OREO
for the six months ended June 30, 2020 is a $113,000 loss on sale.
The decrease in professional fees is attributed to a reduction in
legal expense.
Noninterest expense for the quarter ended June 30, 2020 totaled
$5,553,000, an increase of $291,000 as compared to $5,262,000
reported for the quarter ended June 30, 2019. On a
quarter-over-quarter comparative basis, non-interest expense
increased due to a $727,000 write-down on OREO, partially offset by
a $346,000 decrease in salaries and employee benefits expense and a
$191,000 decrease in professional fees.
The efficiency ratio for the six months ended June 30, 2020
declined to 55.86%, compared to 48.19% for the six months ended
June 30, 2019. The decline is attributed to a reduction in net
interest income as a result of the balance sheet repricing in to a
lower rate environment, partially offset by an increase in gain on
the fair value of TRUPs.
The Company recorded an income tax provision of $1,906,000 for
the six months ended June 30, 2020, compared to $3,292,000 for the
same period in 2019. The effective tax rate for the six months
ended June 30, 2020 was 28.56%, compared to 28.89% for the six
months ended June 30, 2019. The Company recorded an income tax
provision of $798,000 for the quarter ended June 30, 2020, compared
to $1,669,000 for the same period in 2019. The effective tax rate
for the quarter ended June 30, 2020 was 28.40%, compared to 28.95%
for the same period ended June 30, 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 $74,454,000, or 7.78%, for the six months
ended June 30, 2020, due primarily to increases of $52,280,000 in
gross loan balances and $16,651,000 in investment securities.
Unfunded loan commitments increased from $197,559,000 at December
31, 2019 to $231,275,000 at June 30, 2020. OREO balances decreased
from $6,753,000 at December 31, 2019 to $5,018,000 at June 30,
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
current quarter.
Total deposits increased $74,750,000, or 9.13%, to $893,112,000
during the six months ended June 30, 2020. This increase was due to
an increase of $50,060,000 in noninterest bearing deposits,
$17,340,000 in NOW and money market accounts, and $9,075,000 in
savings accounts, partially offset by a decrease of $1,725,000 in
time deposits. In total, NOW, money market and savings accounts
increased 5.99% to $467,427,000 at June 30, 2020, compared to
$441,012,000 at December 31, 2019. Noninterest bearing deposits
increased 16.05% to $362,010,000 at June 30, 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 $72,823,000.
Shareholders’ equity at June 30, 2020 was $117,460,000, an
increase of $1,472,000 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
June 30, 2020 there was an accumulated other comprehensive loss of
$401,000, as compared to an accumulated other comprehensive loss of
$632,000 at December 31, 2019. The change from December 31, 2019 to
June 30, 2020 was the result of unrealized gains on available for
sale securities, partially offset by losses on junior subordinated
debentures (TRUPs) caused by a change in yields during the
period.
The Board of Directors of United Security Bancshares declared a
cash dividend on common stock of $0.11 per share on June 23, 2020.
The dividend was payable on July 15, 2020, to shareholders of
record as of July 6, 2020. 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
$2,134,000 for the six months ended June 30, 2020, compared to a
provision of $10,000 for the six months ended June 30, 2019. Net
loan charge-offs totaled $1,180,000 for the six months ended June
30, 2020, as compared to net recoveries of $47,000 for the six
months ended June 30, 2019. The provision recorded during the year
is attributed to growth of the loan portfolio, net charge-offs, and
uncertainty related to the economic effects of COVID-19. COVID-19
has resulted in an economic slowdown and increased unemployment
rates. As of June 30, 2020, the Company had executed 25 payment
deferrals or modifications on outstanding loan balances of
$69,997,000 in connection with the COVID-19 relief provided by the
CARES Act. These deferrals were generally no more than six months
in duration and were not considered troubled debt restructurings
based on interagency guidance issued in March 2020. The Company
recorded a provision for credit loss of $428,000 for the quarter
ended June 30, 2020, compared to a provision of $4,000 for the
quarter ended June 30, 2019. The provision for the quarter ended
June 30, 2020 was driven by net charge-offs on the student loan
portfolio and one construction and land development loan.
The Company's allowance for loan loss totaled 1.37% of the loan
portfolio at June 30, 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 1.42% of the loan portfolio at
June 30, 2020. In determining the adequacy of the allowance for
loan losses, the judgment of the Company's management is a
significant factor. Management considers the allowance for credit
losses at June 30, 2020 to be adequate.
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 $2,210,000 between December 31, 2019
and June 30, 2020 to $19,015,000. Nonperforming assets as a
percentage of total assets decreased from 2.22% at December 31,
2019 to 1.84% at June 30, 2020. The decrease in nonperforming
assets is primarily attributed to the reduction in OREO that
occurred during the period, partially offset by restructured loans
which decreased $31,000 between December 31, 2019 and June 30,
2020. Nonaccrual loans decreased $74,000 between December 31, 2019
and June 30, 2020 to $11,623,000. OREO balances decreased from
$6,753,000 at December 31, 2019 to $5,018,000 at June 30, 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 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, 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 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 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, 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.
United Security Bancshares
Consolidated Balance Sheets
(unaudited)
(in thousands)
June 30, 2020
December 31, 2019
Assets
Cash and non-interest-bearing deposits in
other banks
$
34,985
$
27,291
Due from Federal Reserve Bank ("FRB")
194,556
191,704
Cash and cash equivalents
229,541
218,995
Investment securities (at fair value)
Available-for-sale ("AFS") securities
92,877
76,312
Marketable equity securities
3,862
3,776
Total investment securities
96,739
80,088
Loans
649,654
597,374
Unearned fees and unamortized loan
origination costs - net
(1,004)
(820)
Allowance for credit losses
(8,862)
(7,908)
Net loans
639,788
588,646
Premises and equipment - net
9,441
9,380
Accrued interest receivable
9,146
8,208
Other real estate owned ("OREO")
5,018
6,753
Goodwill
4,488
4,488
Deferred tax assets - net
2,574
3,191
Cash surrender value of life insurance
20,279
20,955
Operating lease right-of-use assets
3,065
3,360
Other assets
11,294
12,855
Total assets
$
1,031,373
$
956,919
Liabilities and Shareholders'
Equity
Deposits
Non-interest-bearing
$
362,010
$
311,950
Interest-bearing
531,102
506,412
Total deposits
893,112
818,362
Accrued interest payable
36
59
Operating lease liabilities
3,168
3,463
Other liabilities
7,826
8,239
Junior subordinated debentures (at fair
value)
9,771
10,808
Total liabilities
913,913
840,931
Shareholders' Equity
Common stock, no par value; 20,000,000
shares authorized; issued and outstanding: 16,977,239 at June 30,
2020 and 16,973,885 at December 31, 2019
59,181
58,973
Retained earnings
58,680
57,647
Accumulated other comprehensive loss
(401)
(632)
Total shareholders' equity
117,460
115,988
Total liabilities and shareholders'
equity
$
1,031,373
$
956,919
United Security Bancshares
Consolidated Statements of Income
(unaudited)
(in thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2020
2019
2020
2019
Interest Income:
Interest and fees on loans
$
7,713
$
8,443
$
16,059
$
17,085
Interest on investment securities
356
444
784
921
Interest on deposits in FRB
38
1,424
605
2,722
Total interest income
8,107
10,311
17,448
20,728
Interest Expense:
Interest on deposits
447
890
1,111
1,724
Interest on other borrowed funds
83
118
180
241
Total interest expense
530
1,008
1,291
1,965
Net Interest Income
7,577
9,303
16,157
18,763
Provision for Credit Losses
428
4
2,134
10
Net Interest Income after Provision for
Credit Losses
7,149
9,299
14,023
18,753
Noninterest Income:
Customer service fees
618
830
1,346
1,639
Increase in cash surrender value of
bank-owned life insurance
127
147
258
292
Gain on fair value of marketable equity
securities
71
53
85
110
Gain on proceeds from bank-owned life
insurance
310
—
310
—
(Loss) gain on fair value of junior
subordinated debentures
(30)
497
1,469
911
Loss on dissolution of real estate
investment trust
—
(5)
—
(114)
Gain on sale of assets
—
6
—
6
Other
118
201
328
408
Total noninterest income
1,214
1,729
3,796
3,252
Noninterest Expense:
Salaries and employee benefits
2,414
2,760
5,409
5,532
Occupancy expense
869
808
1,723
1,621
Data processing
135
144
247
251
Professional fees
555
746
1,257
1,559
Regulatory assessments
77
83
162
176
Director fees
94
95
188
186
Correspondent bank service charges
17
14
33
28
Net cost on operation and sale of OREO
780
87
933
152
Other
612
525
1,193
1,104
Total noninterest expense
5,553
5,262
11,145
10,609
Income Before Provision for
Taxes
2,810
5,766
6,674
11,396
Provision for Taxes on Income
798
1,669
1,906
3,292
Net Income
$
2,012
$
4,097
$
4,768
$
8,104
Basic earnings per common share
$
0.12
$
0.24
$
0.28
$
0.48
Diluted earnings per common share
$
0.12
$
0.24
$
0.28
$
0.48
Weighted average basic shares for EPS
16,975,588
16,950,564
16,974,845
16,948,810
Weighted average diluted shares for
EPS
16,988,778
16,981,705
16,992,223
16,977,224
United Security Bancshares
Average Balances and Rates
(unaudited)
(in thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2020
2019
2020
2019
Average Balances:
Loans (1)
$
636,840
$
568,600
$
619,950
$
573,436
Investment securities – taxable
97,209
65,268
89,655
66,772
Interest-bearing deposits in FRB
182,755
238,898
180,751
227,335
Total interest-earning assets
916,804
872,766
890,356
867,543
Allowance for credit losses
(9,124)
(8,442)
(8,515)
(8,449)
Cash and due from banks
28,432
29,232
28,857
28,793
Other real estate owned
5,969
5,745
6,452
5,745
Other non-earning assets
64,224
61,174
62,845
60,434
Total average assets
$
1,006,305
$
960,475
$
979,995
$
954,066
Interest-bearing deposits
$
516,271
$
522,308
$
508,648
$
522,382
Junior subordinated debentures
8,494
10,378
9,605
10,235
Total interest-bearing liabilities
524,765
532,686
518,253
532,617
Non-interest-bearing deposits
352,309
305,211
333,330
300,035
Other liabilities
10,120
9,495
9,899
9,262
Total liabilities
887,194
847,392
861,482
841,914
Total equity
119,111
113,083
118,513
112,152
Total liabilities and equity
$
1,006,305
$
960,475
$
979,995
$
954,066
Average Rates:
Loans (1)
4.87
%
5.96
%
5.21
%
6.01
%
Investment securities- taxable
1.47
%
2.73
%
1.76
%
2.78
%
Interest-bearing deposits in FRB
0.08
%
2.39
%
0.67
%
2.41
%
Earning assets
3.56
%
4.74
%
3.94
%
4.82
%
Interest bearing deposits
0.35
%
0.68
%
0.44
%
0.67
%
Total deposits
0.21
%
0.43
%
0.27
%
0.42
%
Junior subordinated debentures
3.93
%
4.56
%
3.77
%
4.75
%
Total interest-bearing liabilities
0.41
%
0.76
%
0.50
%
0.74
%
Net interest margin (2)
3.33
%
4.28
%
3.65
%
4.36
%
(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)
June 30, 2020
March 31, 2020
December 31, 2019
September 30, 2019
June 30, 2019
Cash and cash equivalents
$
229,541
$
199,853
$
218,995
$
245,943
$
309,460
Investment securities
96,739
97,486
80,088
81,651
63,632
Loans
648,650
623,686
596,554
569,500
572,810
Allowance for credit losses
(8,862)
(9,120)
(7,908)
(8,230)
(8,452)
Net loans
639,788
614,566
588,646
561,270
564,358
Other assets
65,305
65,341
69,190
68,534
69,043
Total assets
$
1,031,373
$
977,246
$
956,919
$
957,398
$
1,006,493
Non-interest-bearing
$
362,010
$
324,167
$
311,950
$
333,156
$
304,172
Interest-bearing
531,102
516,270
506,412
487,067
566,743
Total deposits
893,112
840,437
818,362
820,223
870,915
Other liabilities
20,801
19,399
22,569
21,965
22,240
Total liabilities
913,913
859,836
840,931
842,188
893,155
Total shareholders' equity
117,460
117,410
115,988
115,210
113,338
Total liabilities and shareholder's
equity
$
1,031,373
$
977,246
$
956,919
$
957,398
$
1,006,493
United Security Bancshares
Condensed - Consolidated Statements of
Income (unaudited)
(in thousands)
For the Quarters
Ended:
June 30, 2020
March 31, 2020
December 31, 2019
September 30, 2019
June 30, 2019
Total interest income
$
8,107
$
9,341
$
9,558
$
10,417
$
10,311
Total interest expense
530
761
862
1,061
1,008
Net interest income
7,577
8,580
8,696
9,356
9,303
Provision for credit losses
428
1,707
5
5
4
Net interest income after provision for
credit losses
7,149
6,873
8,691
9,351
9,299
Total non-interest income
1,214
2,580
647
1,853
1,729
Total non-interest expense
5,553
5,591
5,335
5,335
5,262
Income before provision for taxes
2,810
3,862
4,003
5,869
5,766
Provision for taxes on income
798
1,108
1,108
1,696
1,669
Net income
$
2,012
$
2,754
$
2,895
$
4,173
$
4,097
United Security Bancshares
Nonperforming Assets
(unaudited)
(dollars in thousands)
June 30, 2020
December 31, 2019
Commercial and industrial
$
—
$
75
RE construction & development
11,109
11,478
Agricultural
514
144
Total nonaccrual loans
$
11,623
$
11,697
Loans past due 90 days and still
accruing
269
386
Restructured loans
2,105
2,389
Total nonperforming loans
$
13,997
$
14,472
Other real estate owned
5,018
6,753
Total nonperforming assets
$
19,015
$
21,225
Nonperforming loans to total gross
loans
2.15
%
2.42
%
Nonperforming assets to total assets
1.84
%
2.22
%
Allowance for credit losses to
nonperforming loans
63.31
%
54.64
%
United Security Bancshares
Selected Financial Data
(unaudited)
(dollars in thousands, except per share
amounts)
Three Months Ended June
30,
Six Months Ended June
30,
2020
2019
2020
2019
Return on average assets
0.80
%
1.71
%
0.98%
1.71%
Return on average equity
6.80
%
14.53
%
8.09%
14.57%
Net charge-off (recoveries) to average
loans
0.43
%
(0.02)
%
0.38%
(0.02)%
June 30, 2020
December 31, 2019
Shares outstanding - period end
16,977,239
16,973,885
Book value per share
$6.92
$6.83
Efficiency ratio (1)
55.86
%
49.99
%
Total impaired loans
$15,453
$17,072
Net loan to deposit ratio
71.64
%
71.93
%
Allowance for credit losses to total
loans
1.37
%
1.33
%
Total capital to risk weighted assets
Company
17.16
%
17.98
%
Bank
16.97
%
17.78
%
Tier 1 capital to risk-weighted assets
Company
15.92
%
16.81
%
Bank
15.74
%
16.61
%
Common equity tier 1 capital to
risk-weighted assets
Company
14.71
%
15.39
%
Bank
15.74
%
16.61
%
Tier 1 capital to adjusted average assets
(leverage)
Company
12.25
%
12.82
%
Bank
12.10
%
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)
Six Months Ended June
30,
2020
2019
Change $
Change %
Net income
$
4,768
$
8,104
$
(3,336)
(41.16)
%
TRUPs (1) fair value adjustment gain
1,469
911
Write down on OREO
(727)
Loss on sale of OREO
(113)
—
629
911
Income tax effect
182
264
Non-core items net of taxes
447
647
Non-GAAP core net income
$
4,321
$
7,457
$
(3,136)
(42.05)
%
(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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200715005924/en/
Dennis Woods, President and CEO (559) 248-4928
United Security Bancshares (NASDAQ:UBFO)
Historical Stock Chart
From Jul 2024 to Jul 2024
United Security Bancshares (NASDAQ:UBFO)
Historical Stock Chart
From Jul 2023 to Jul 2024