United Security Bancshares (Nasdaq: UBFO) today announced
its unaudited financial results for the nine months ended September
30, 2020. The Company recognized net income of $7,038,000, or $0.41
per diluted share for the nine months ended September 30, 2020,
compared to net income of $12,276,000,or $0.72 per diluted share
for the nine months ended September 30, 2019.
Third Quarter 2020 Highlights (at or for the quarter
ended September 30, 2020, except where noted)
- Net income for the quarter was $2.27 million, representing a
$1.90 million or 45.58% decrease from $4.17 million for the quarter
ended September 30, 2019. The decrease is primarily the result of a
reduction in interest income related to a lower interest rate
environment.
- Total assets increased 18.50% to $1.13 billion, compared to
$956.92 million at December 31, 2019.
- Total loans, net of unearned fees, increased 10.71% to $660.44
million, compared to $596.55 million at December 31, 2019. Included
in the increase are $25.89 million in Paycheck Protection Program
(PPP) loans.
- Total deposits increased 21.56% to $994.78 million, compared to
$818.36 million at December 31, 2019.
- The allowance for credit losses as a percentage of gross loans
decreased to 1.32%, compared to 1.33% at December 31, 2019. The
provision for credit losses totaled $4,000 for the quarter,
compared to $5,000 for the quarter ended September 30, 2019.
- Net interest income after the provision for credit losses was
$7,464,000 for the quarter ended September 30, 2020, compared to
$9,351,000 for the quarter ended September 30, 2019.
- A loss on the fair value of junior subordinated debt of $18,000
was recorded for the quarter, as compared to a $660,000 gain for
the quarter ended September 30, 2019.
- Book value per share increased to $6.95, compared to $6.83 at
December 31, 2019.
- Net interest margin decreased to 2.97% from 4.17% for the
quarter ended September 30, 2019.
- Annualized average cost of deposits decreased to 0.19% from
0.45% for the quarter ended September 30, 2019.
- Net charge-offs totaled $157,000, compared to net charge-offs
of $226,000 for the quarter ended September 30, 2019.
- Capital positions remain well-capitalized with a 11.38% Tier 1
Leverage Ratio compared to 12.82% as of December 31, 2019.
- Annualized return on average assets ("ROAA") was 0.83%,
compared to 1.69% for the quarter ended September 30, 2019.
- Annualized return on average equity ("ROAE") was 7.61%,
compared to 14.36% for the quarter ended September 30, 2019.
Dennis Woods, President and Chief Executive Officer, stated:
"Our institution continues to seek out growth and income
opportunities as the industry adjusts to the negative impacts of
the COVID-19 pandemic. During these uncertain times our institution
has maintained strong loan and deposit balances seeing increases in
both during the period. During the third quarter we successfully
expanded our footprint by opening a branch in the city of Mendota.
We look forward to continuing to serve our communities during these
challenging times."
Results of Operations
Net income for the nine months ended September 30, 2020
decreased $5,238,000 when compared to the nine months ended
September 30, 2019. This decrease was due to a reduction in
interest income, a result of a decrease in yields, and the
provision for credit losses recorded during the current year. ROAE
for the nine months ended September 30, 2020 was 7.93%, compared to
14.50% for the nine months ended September 30, 2019. ROAA was 0.93%
for the nine months ended September 30, 2020, compared to 1.70% for
the nine months ended September 30, 2019.
The annualized average cost of deposits was 0.24% for the nine
months ended September 30, 2020, a decrease from 0.43% for the nine
months ended September 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 increased 0.01% between the
periods ended September 30, 2019 and 2020 from $523,104,000 to
$523,136,000.
Net interest income after the provision for credit losses for
the nine months ended September 30, 2020 totaled $21,487,000, a
decrease of $6,616,000, or 23.54%, from $28,103,000 for the same
period ended September 30, 2019. Net interest income after the
provision for credit losses includes a provision for credit losses
of $2,138,000 for the nine months ended September 30, 2020,
compared to a provision of $15,000 for the nine months ended
September 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 4.30% for the nine
months ended September 30, 2019 to 3.40% for the nine months ended
September 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 5.98% for the nine months ended September 30,
2019 to 4.99% for the nine months ended September 30, 2020. The
yield on interest bearing liabilities decreased from 0.76% for the
nine months ended September 30, 2019 to 0.45% for the nine months
ended September 30, 2020.
Net interest income after the provision for credit losses was
$7,464,000 for the quarter ended September 30, 2020, representing a
$1,887,000 or 20.18% decrease compared to the same period ended
September 30, 2019. The Company's net interest margin decreased
from 4.17% to 2.97% between the quarters ended September 30, 2019
and September 30, 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.
Noninterest income for the nine months ended September 30, 2020
totaled $4,706,000, reflecting a decrease of $399,000 from the
$5,105,000 in non-interest income reported for the nine months
ended September 30, 2019. Customer service fees totaled $2,014,000
and $2,479,000 for the nine months ended September 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 recorded a
decrease of $120,000 in the gain on the fair value of junior
subordinated debentures (TRUPs) for the nine months ended September
30, 2020 of $1,451,000, compared to a $1,571,000 gain for the same
period ended September 30, 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 nine months ended
September 30, 2020 includes a $310,000 gain in proceeds from
bank-owned life insurance.
Noninterest income for the quarter ended September 30, 2020
totaled $911,000, reflecting a decrease of $942,000 from the
$1,853,000 in non-interest income reported for the quarter ended
September 30, 2019. The decrease is attributed to a $171,000
decrease in customer service fees and a $678,000 decrease in the
gain 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 nine months ended September 30, 2020, noninterest
expense totaled $16,355,000, an increase of $412,000 compared to
$15,943,000 for the nine months ended September 30, 2019. On a
year-over-year comparative basis, non-interest expense increased
primarily due to a $745,000 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 $442,000 in
professional fees and decreases of $176,000 in salaries and
employee benefits. Salary and employee benefits expense for the
nine months ended September 30, 2019 includes a $231,000 reduction
in bonus expense. Also included in net cost on operation and sale
of OREO for the nine months ended September 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 September 30, 2020
totaled $5,210,000, a decrease of $125,000 as compared to
$5,335,000 reported for the quarter ended September 30, 2019. On a
quarter-over-quarter comparative basis, non-interest expense
decreased due to a $140,000 decrease in professional fees and a
$53,000 decrease in salaries and employee benefits expense,
partially offset by increases of $158,000 in regulatory assessments
and $58,000 in occupancy expense.
The efficiency ratio for the nine months ended September 30,
2020 increased to 57.73%, compared to 47.99% for the nine months
ended September 30, 2019. The increase is 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 $2,800,000 for
the nine months ended September 30, 2020, compared to $4,989,000
for the same period in 2019. The effective tax rate for the nine
months ended September 30, 2020 was 28.46%, compared to 28.90% for
the nine months ended September 30, 2019. The Company recorded an
income tax provision of $894,000 for the quarter ended September
30, 2020, compared to $1,696,000 for the same period in 2019. The
effective tax rate for the quarter ended September 30, 2020 was
28.25%, compared to 28.90% for the same period ended September 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 $177,028,000, or 18.50%, between
September 30, 2020 and December 31, 2019, due primarily to
increases of $64,108,000 in gross loan balances and $11,694,000 in
investment securities. Total cash and cash equivalents increased
$104,337,000 between December 31, 2019 and September 30, 2020.
Unfunded loan commitments increased from $197,559,000 at December
31, 2019 to $204,522,000 at September 30, 2020. OREO balances
decreased from $6,753,000 at December 31, 2019 to $5,018,000 at
September 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 second quarter.
Total deposits increased $176,421,000, or 21.56%, to
$994,783,000 during the nine months ended September 30, 2020. This
increase was due to an increase of $118,078,000 in noninterest
bearing deposits, $45,771,000 in NOW and money market accounts, and
$14,390,000 in savings accounts, partially offset by a decrease of
$1,818,000 in time deposits. In total, NOW, money market and
savings accounts increased 13.64% to $501,173,000 at September 30,
2020, compared to $441,012,000 at December 31, 2019. Noninterest
bearing deposits increased 37.85% to $430,028,000 at September 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 $174,692,000.
Shareholders’ equity at September 30, 2020 was $118,053,000, an
increase of $2,065,000 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
September 30, 2020 there was an accumulated other comprehensive
loss of $320,000, as compared to an accumulated other comprehensive
loss of $632,000 at December 31, 2019. The change from December 31,
2019 to September 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 non-LIBOR
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 September 22,
2020. The dividend will be payable on October 16, 2020, to
shareholders of record as of October 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
$2,138,000 for the nine months ended September 30, 2020, compared
to a provision of $15,000 for the nine months ended September 30,
2019. Net loan charge-offs totaled $1,338,000 for the nine months
ended September 30, 2020, as compared to net loan charge-offs of
$180,000 for the nine months ended September 30, 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 September 30, 2020, the Company had executed 23
payment deferrals or modifications on outstanding loan balances of
$69,814,000 in connection with the COVID-19 relief provided by the
CARES Act and interagency guidance issued in March 2020. These
deferrals 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 $4,000 for the quarter
ended September 30, 2020, compared to a provision of $5,000 for the
quarter ended September 30, 2019.
The Company's allowance for loan loss totaled 1.32% of the loan
portfolio at September 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 1.37% of the loan
portfolio at September 30, 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 $3,010,000 between December 31, 2019
and September 30, 2020 to $18,215,000. Nonperforming assets as a
percentage of total assets decreased from 2.22% at December 31,
2019 to 1.61% at September 30, 2020. The decrease in nonperforming
assets is primarily attributed to the reduction in OREO that
occurred during the period. Additionally, restructured loans
decreased $616,000 between December 31, 2019 and September 30,
2020, and nonaccrual loans decreased $162,000 between December 31,
2019 and September 30, 2020 to $11,535,000. OREO balances decreased
from $6,753,000 at December 31, 2019 to $5,018,000 at September 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 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 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)
September 30, 2020
December 31, 2019
Assets
Cash and non-interest-bearing deposits in
other banks
$
29,197
$
27,291
Due from Federal Reserve Bank ("FRB")
294,135
191,704
Cash and cash equivalents
323,332
218,995
Investment securities (at fair value)
Available-for-sale ("AFS") securities
87,917
76,312
Marketable equity securities
3,865
3,776
Total investment securities
91,782
80,088
Loans
661,482
597,374
Unearned fees and unamortized loan
origination costs - net
(1,038
)
(820
)
Allowance for credit losses
(8,708
)
(7,908
)
Net loans
651,736
588,646
Premises and equipment - net
9,379
9,380
Accrued interest receivable
10,099
8,208
Other real estate owned ("OREO")
5,018
6,753
Goodwill
4,488
4,488
Deferred tax assets - net
2,631
3,191
Cash surrender value of life insurance
20,403
20,955
Operating lease right-of-use assets
2,914
3,360
Other assets
12,165
12,855
Total assets
$
1,133,947
$
956,919
Liabilities and Shareholders'
Equity
Deposits
Non-interest-bearing
$
430,028
$
311,950
Interest-bearing
564,755
506,412
Total deposits
994,783
818,362
Accrued interest payable
36
59
Operating lease liabilities
3,017
3,463
Other liabilities
7,977
8,239
Junior subordinated debentures (at fair
value)
10,081
10,808
Total liabilities
1,015,894
840,931
Shareholders' Equity
Common stock, no par value; 20,000,000
shares authorized; issued and outstanding: 16,977,239 at September
30, 2020 and 16,973,885 at December 31, 2019
59,289
58,973
Retained earnings
59,084
57,647
Accumulated other comprehensive loss
(320
)
(632
)
Total shareholders' equity
118,053
115,988
Total liabilities and shareholders'
equity
$
1,133,947
$
956,919
United Security Bancshares
Consolidated Statements of Income
(unaudited)
(in thousands)
Three Months Ended September
30,
Nine Months Ended September
30,
2020
2019
2020
2019
Interest Income:
Interest and fees on loans
$
7,563
$
8,648
$
23,622
$
25,733
Interest on investment securities
343
439
1,127
1,360
Interest on deposits in FRB
62
1,330
667
4,052
Total interest income
7,968
10,417
25,416
31,145
Interest Expense:
Interest on deposits
451
950
1,562
2,675
Interest on other borrowed funds
49
111
229
352
Total interest expense
500
1,061
1,791
3,027
Net Interest Income
7,468
9,356
23,625
28,118
Provision for Credit Losses
4
5
2,138
15
Net Interest Income after Provision for
Credit Losses
7,464
9,351
21,487
28,103
Noninterest Income:
Customer service fees
668
839
2,014
2,479
Increase in cash surrender value of
bank-owned life insurance
124
147
382
438
Gain on fair value of marketable equity
securities
4
18
89
128
Gain on proceeds from bank-owned life
insurance
—
—
310
—
(Loss) gain on fair value of junior
subordinated debentures
(18
)
660
1,451
1,571
Loss on dissolution of real estate
investment trust
—
(1
)
—
(115
)
(Loss) gain on sale of assets
—
(5
)
—
1
Other
133
195
460
603
Total noninterest income
911
1,853
4,706
5,105
Noninterest Expense:
Salaries and employee benefits
2,722
2,775
8,131
8,307
Occupancy expense
887
829
2,609
2,450
Data processing
139
151
386
402
Professional fees
724
864
1,981
2,423
Regulatory assessments
121
(37
)
283
138
Director fees
94
95
282
281
Correspondent bank service charges
19
14
52
42
Net cost on operation and sale of OREO
35
71
968
223
Other
469
573
1,663
1,677
Total noninterest expense
5,210
5,335
16,355
15,943
Income Before Provision for
Taxes
3,165
5,869
9,838
17,265
Provision for Taxes on Income
894
1,696
2,800
4,989
Net Income
$
2,271
$
4,173
$
7,038
$
12,276
Basic earnings per common share
$
0.13
$
0.25
$
0.41
$
0.72
Diluted earnings per common share
$
0.13
$
0.25
$
0.41
$
0.72
Weighted average basic shares for EPS
16,977,239
16,953,744
16,975,648
16,950,474
Weighted average diluted shares for
EPS
17,000,501
16,990,162
16,993,180
16,981,619
United Security Bancshares
Average Balances and Rates
(unaudited)
(in thousands)
Three Months Ended September
30,
Nine Months Ended September
30,
2020
2019
2020
2019
Average Balances:
Loans (1)
$
656,501
$
579,035
$
632,221
$
575,323
Investment securities
94,076
71,168
91,140
68,254
Interest-bearing deposits in FRB
248,722
240,605
203,574
231,807
Total interest-earning assets
999,299
890,808
926,935
875,384
Allowance for credit losses
(8,917)
(8,448)
(8,650)
(8,449)
Cash and due from banks
32,106
29,105
29,948
28,898
Other real estate owned
5,204
5,745
6,033
5,745
Other non-earning assets
60,479
62,752
61,872
61,112
Total average assets
$
1,088,171
$
979,962
$
1,016,138
$
962,690
Interest-bearing deposits
$
551,797
$
524,437
$
523,136
$
523,104
Junior subordinated debentures
9,710
10,416
9,640
10,296
Total interest-bearing liabilities
561,507
534,853
532,776
533,400
Non-interest-bearing deposits
398,282
319,547
355,114
306,590
Other liabilities
9,689
10,319
9,675
9,506
Total liabilities
969,478
864,719
897,565
849,496
Total equity
118,693
115,243
118,573
113,194
Total liabilities and equity
$
1,088,171
$
979,962
$
1,016,138
$
962,690
Average Rates:
Loans (1)
4.58
%
5.93
%
4.99
%
5.98
%
Investment securities
1.45
%
2.45
%
1.65
%
2.66
%
Interest-bearing deposits in FRB
0.10
%
2.19
%
0.44
%
2.34
%
Earning assets
3.17
%
4.64
%
3.66
%
4.76
%
Interest bearing deposits
0.33
%
0.72
%
0.40
%
0.68
%
Total deposits
0.19
%
0.45
%
0.24
%
0.43
%
Junior subordinated debentures
2.01
%
4.23
%
3.17
%
4.57
%
Total interest-bearing liabilities
0.35
%
0.79
%
0.45
%
0.76
%
Net interest margin (2)
2.97
%
4.17
%
3.40
%
4.30
%
(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)
September 30, 2020
June 30, 2020
March 31, 2020
December 31, 2019
September 30, 2019
Cash and cash equivalents
$
323,332
$
229,541
$
199,853
$
218,995
$
245,943
Investment securities
91,782
96,739
97,486
80,088
81,651
Loans
660,444
648,650
623,686
596,554
569,500
Allowance for credit losses
(8,708
)
(8,862
)
(9,120
)
(7,908
)
(8,230
)
Net loans
651,736
639,788
614,566
588,646
561,270
Other assets
67,097
65,305
65,341
69,190
68,534
Total assets
$
1,133,947
$
1,031,373
$
977,246
$
956,919
$
957,398
Non-interest-bearing
$
430,028
$
362,010
$
324,167
$
311,950
$
333,156
Interest-bearing
564,755
531,102
516,270
506,412
487,067
Total deposits
994,783
893,112
840,437
818,362
820,223
Other liabilities
21,111
20,801
19,399
22,569
21,965
Total liabilities
1,015,894
913,913
859,836
840,931
842,188
Total shareholders' equity
118,053
117,460
117,410
115,988
115,210
Total liabilities and shareholder's
equity
$
1,133,947
$
1,031,373
$
977,246
$
956,919
$
957,398
United Security Bancshares
Condensed - Consolidated Statements of
Income (unaudited)
(in thousands)
For the Quarters
Ended:
September 30, 2020
June 30, 2020
March 31, 2020
December 31, 2019
September 30, 2019
Total interest income
$
7,968
$
8,107
$
9,341
$
9,558
$
10,417
Total interest expense
500
530
761
862
1,061
Net interest income
7,468
7,577
8,580
8,696
9,356
Provision for credit losses
4
428
1,707
5
5
Net interest income after provision for
credit losses
7,464
7,149
6,873
8,691
9,351
Total non-interest income
911
1,214
2,580
647
1,853
Total non-interest expense
5,210
5,553
5,591
5,335
5,335
Income before provision for taxes
3,165
2,810
3,862
4,003
5,869
Provision for taxes on income
894
798
1,108
1,108
1,696
Net income
$
2,271
$
2,012
$
2,754
$
2,895
$
4,173
United Security Bancshares
Nonperforming Assets
(unaudited)
(dollars in thousands)
September 30, 2020
December 31, 2019
Commercial and industrial
$
—
$
75
RE construction & development
11,058
11,478
Agricultural
477
144
Total nonaccrual loans
$
11,535
$
11,697
Loans past due 90 days and still
accruing
53
386
Restructured loans
1,609
2,389
Total nonperforming loans
$
13,197
$
14,472
Other real estate owned
5,018
6,753
Total nonperforming assets
$
18,215
$
21,225
Nonperforming loans to total gross
loans
2.00
%
2.42
%
Nonperforming assets to total assets
1.61
%
2.22
%
Allowance for credit losses to
nonperforming loans
65.98
%
54.64
%
United Security Bancshares
Selected Financial Data
(unaudited)
(dollars in thousands, except per share
amounts)
Three Months Ended September
30,
Nine Months Ended September
30,
2020
2019
2020
2019
Return on average assets
0.83
%
1.69
%
0.93%
1.70%
Return on average equity
7.61
%
14.36
%
7.93%
14.50%
Net charge-off to average loans
0.10
%
0.15
%
0.28%
0.04%
September 30, 2020
December 31, 2019
Shares outstanding - period end
16,977,239
16,973,885
Book value per share
$6.95
$6.83
Efficiency ratio (1)
57.73
%
49.99
%
Total impaired loans
$15,059
$17,072
Net loan to deposit ratio
65.52
%
71.93
%
Allowance for credit losses to total
loans
1.32
%
1.33
%
Tier 1 capital to adjusted average assets
(leverage)
Company
11.38
%
12.82
%
Bank
11.24
%
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)
Nine Months Ended September
30,
2020
2019
Change $
Change %
Net income
$
7,038
$
12,276
$
(5,238
)
(42.67
)%
TRUPs (1) fair value adjustment gain
1,451
1,571
Write down on OREO (2)
(727
)
—
Loss on sale of OREO (2)
(113
)
—
611
1,571
Income tax effect
177
456
Non-core items net of taxes
434
1,115
Non-GAAP core net income
$
6,604
$
11,161
$
(4,557
)
(40.83
)%
(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/20201015006006/en/
Dennis Woods, President & 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