Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,367.95 105.39 0.65%
S&P 500 1,854.06 11.08 0.60%
NASDAQ 4,060.09 25.93 0.64%
Ticker Volume Price Price Delta
STOXX 50 3,139.26 47.74 1.54%
FTSE 100 6,584.17 42.56 0.65%
DAX 9,317.82 144.11 1.57%
Ticker Volume Price Price Delta
NIKKEI 14,417.68 420.87 3.01%
TOPIX 1,166.55 30.46 2.68%
HANG SENG 22,696.01 24.75 0.11%

United Security Bancshares - Fourth Quarter Profits: $2.9 million



      United Security Bancshares - Fourth Quarter Profits: $2.9 million

PR Newswire

FRESNO, Calif., Jan. 28, 2014

FRESNO, Calif., Jan. 28, 2014 /PRNewswire/ -- United Security Bancshares
(http://www.unitedsecuritybank.com/) (Nasdaq Global Select: UBFO) reported
today unaudited consolidated net income of $2,945,000 or $0.20 per basic and
diluted common share for the quarter ended December 31, 2013 and $7,269,000 or
$0.49 per basic and diluted common share for the year ended December 31, 2013,
as compared to $1,479,000 or $0.09 per basic and diluted common shares for the
quarter ended December 31, 2012 and $6,069,000 or $0.41 per basic and diluted
shares for the year ended December 31, 2012.

Annualized return on average equity (ROAE) for the quarter ended December 31,
2013 was 15.8%, compared to 8.56% for the same period in 2012, and was 10.09%
for the year ended December 31, 2013, compared to 9.20% for the year ended
December 31, 2012. Annualized return on average assets (ROAA) was 1.79% for
the three months ended December 31, 2013, compared to 0.93% for the same
period in 2012, and was 1.13% for the year ended December 31, 2013 compared to
0.97% for the year ended December 31, 2012.

Change in net income on a quarter-to-quarter comparative basis between the
fourth quarters of 2013 and 2012 is largely the result of a $2,686,000
reversal of valuation allowance on deferred tax during the quarter ended
December 31, 2013.  Partially offsetting the reversal of valuation allowance
during the quarter ended December 31, 2013, compared to the same period ended
December 31, 2012, was a decrease of $209,000 in interest income.  On a twelve
month comparative basis, changes in income were the result of a $2,117,000
decrease in provision for credit losses, a $2,686,000 reversal on valuation
allowance on deferred tax, and a $663,000 decrease in net cost of operation on
OREO, offset by a decrease of $1,739,000 on gains realized on the sale of
other investments and a $2,149,000 decrease in total interest income.

The Board of Directors of United Security Bancshares declared a fourth quarter
2013 stock dividend of one percent (1%) on December 17, 2013. The stock
dividend was payable to shareholders of record on January 10, 2014, and the
shares will be issued on January 22, 2014.

Dennis R. Woods, President and Chief Executive Officer of the Company, states,
"2013 provided a great deal of positive momentum for the Bank with reductions
in non-performing assets and stronger net income. The reversal of all $2.7
million of the allowance for deferred taxes is a further indication that the
dynamics of the Company are improving. We continue to see improvements in both
the local and the national economy and look forward to continued success in
2014."  Shareholders' equity at December 31, 2013 was $76,543,000, up
$7,102,000 from shareholders' equity of $69,441,000 at December 31, 2012. 

Net interest income before provision for credit losses for the quarter ended
December 31, 2013 totaled $5,362,000 and $21,391,000 for the year ended
December 31, 2013, a decrease of $62,000 from $5,424,000 reported for the
quarter ended December 31, 2012 and a decrease of $1,699,000 from the
$23,090,000 reported for the year ended December 31, 2012, respectively. The
net interest margin was 3.72% for the quarter ended December 31, 2013, and
3.87% for the year ended December 31, 2013, as compared to 4.03% for the
quarter ended December 31, 2012 and 4.40% for the year ended December 31,
2012. The Company continues to experience a decline in net interest margin due
to decreases in loan and investment income.

Noninterest income for the quarter ended December 31, 2013 totaled $929,000,
reflecting an increase of $478,000 from $451,000 in noninterest income
reported for the quarter ended December 31, 2012. Noninterest income for the
year ended December 31, 2013 totaled $3,968,000, reflecting a decrease of
$1,508,000 from $5,476,000 in noninterest income reported for the year ended
December 31, 2012. Customer service fees continue to provide the majority of
the Company's noninterest income, totaling $902,000 for the quarter ended
December 31, 2013, as compared to $883,000 for the quarter ended December 31,
2012, and $3,456,000 and $3,583,000 for the year ended December 31, 2013 and
2012, respectively. Changes in noninterest income on a quarter-to-quarter
comparative basis between the fourth quarters of 2013 and 2012 are largely the
result of $233,000 in reduction in losses on fair value option of financial
assets during the quarter ended December 31, 2013. The Company recorded a
$68,000 impairment loss on investments during the quarter ended December 31,
2012, compared to no loss for the same period ended December 31, 2013.   On a
year over year comparative basis, non-interest income decreased primarily due
to a $1,739,000 gain on sale of investment during the year ended December 31,
2012, compared to no gain for the same period ended December 31, 2013.

Noninterest expense totaled $5,902,000 for the quarter ended December 31,
2013, a increase of $358,000 as compared to $5,544,000 reported for the
quarter ended December 31, 2012. For the year ended December 31, 2013,
noninterest expense totaled $19,083,000, a decrease of $862,000 as compared to
$19,945,000 for the year ended December 31, 2012. Between the fourth quarters
of 2013 and 2012, professional fees and regulatory assessments decreased
$476,000 and $233,000, respectively, partially offset by increases in salaries
expense and loss on tax credit partnership.  On a twelve month comparative
basis, noninterest expense decreased primarily due to a $271,000 net cost on
OREO during the year ended December 31, 2013, compared to a net cost on OREO
of $934,000 for the same period ended December 31, 2012.

The Company had a provision for loan loss of $22,000 for the quarter ended
December 31, 2013 and a negative provision for loan loss of $1,098,000 for the
year ended December 31, 2013, compared to a provision of $9,000 for the
quarter ended December 31, 2012 and $1,019,000 for the year ended December 31,
2012. Net loan recoveries totaled $414,000 for the quarter ended December 31,
2013 and $302,000 for the year ended December 31, 2013, as compared to net
recoveries of $615,000 for the quarter ended December 31, 2012, and net
charge-offs of $2,883,000 for the year ended December 31, 2012. With a modest
recovery in the economy and real estate markets within our service area, we
have maintained an adequate allowance for loan losses which totaled 2.78% of
total loans at December 31, 2013 compared to 2.95% of total loans at
December 31, 2012. 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 December 31, 2013 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 $15,026,000 between December 31, 2012 and December 31, 2013.
Additionally, nonperforming assets as a percentage of total assets decreased
from 7.25% at December 31, 2012 to 5.04% at December 31, 2013. Nonaccrual
loans decreased $1,084,000 between December 31, 2012 and December 31, 2013,
while OREO, decreased $9,986,000 during the same period. Impaired loans
totaled $18,132,000 at December 31, 2013, a decrease of $3,799,000 from the
balance of $21,931,000 at December 31, 2012.

United Security Bancshares is a $630+ million bank holding company
headquartered in Fresno, California. United Security Bank, its principal
subsidiary is a California state chartered bank with 11 branches serving the
Central Valley and Campbell, and is a 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; (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 do 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 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, 2012, 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)
(in thousands)
                                          December 31, 2013  December 31, 2012
Assets
Cash and noninterest-bearing deposits in  20,193             27,481
other banks
Cash and due from Federal Reserve Bank    115,019            114,146
Cash and cash equivalents                 135,212            141,627
Interest-bearing deposits in other banks  1,515              1,507
Investment securities (AFS at market      43,616             31,844
value)
Loans and leases, net of unearned fees    395,013            400,033
Less: Allowance for credit losses         (10,988)           (11,784)
Net loans                                 384,025            388,249
Premises and equipment - net              12,122             12,262
Other real estate owned                   13,946             23,932
Goodwill and intangible assets            4,550              4,737
Cash surrender value of life insurance    17,203             16,681
Deferred income taxes                     11,630             9,724
Other assets                              12,110             18,314
Total assets                              635,929            648,877
Deposits:
Noninterest bearing demand deposits       214,317            217,014
Money market, NOW, and savings            244,686            246,888
Time                                      83,486             99,385
Total deposits                            542,489            563,287
Accrued interest payable                  44                 71
Other liabilities                         5,728              6,010
Junior subordinated debentures (at fair   11,125             10,068
value)
Total liabilities                         559,386            579,436
Shareholders' equity:
Common stock, no par value 20,000,000
shares authorized, 14,799,888 issued and  45,778             43,173
outstanding at December 31, 2013, and
14,217,303 at December 31, 2012
Retained earnings                         30,884             26,179
Accumulated other comprehensive income    (119)              89
Total shareholders' equity                76,543             69,441
Total liabilities and shareholders'       $    635,929       $    648,877
equity

 

United Security Bancshares
Consolidated Statements of Income (unaudited)
(in thousands, except per share amounts)
                            Three Months Ended December    Twelve Months Ended
                            31,                            December 31,
                            2013              2012         2013         2012
Interest income:
Interest and fees on      $ 5,414         $   5,507      $ 21,979     $ 23,184
loans
Interest on investment      208               347          703          1,720
securities
Interest on deposits in     89                67           312          224
FRB
Interest on deposits in     2                 1            8            23
other banks
Total interest income       5,713             5,922        23,002       25,151
Interest expense:
Interest on deposits        287               435          1,330        1,791
Interest on other           64                63           281          270
borrowed funds
Total interest expense      351               498          1,611        2,061
Net interest income
before provision for        5,362             5,424        21,391       23,090
credit losses
Provision for credit        22                9            (1,098)      1,019
losses
Net interest income         5,340             5,415        22,489       22,071
Non-interest income:
Customer service fees       902               883          3,456        3,583
Increase in cash
surrender value of bank     139               137          556          564
owned life insurance
Impairment loss on
investment securities,      —                 (68)         —            (284)
other than temporary loss
Loss on Fair Value Option   (257)             (490)        (776)        (774)
of Financial Assets
Loss on sale of             —                 (185)        —            (195)
securities
Gain on sale of other       —                 —            —            1,739
investment
Other non-interest income   145               174          732          843
Total non-interest income   929               451          3,968        5,476
Non-interest expense:
Salaries and employee       2,530             2,406        9,214        9,082
benefits
Occupancy expense           985               940          3,678        3,548
Data processing             59                24           185          77
Professional fees           139               615          1,275        1,707
Regulatory assessments      118               351          1,150        1,409
Director fees               57                60           232          256
Amortization of             47                56           187          304
intangibles
Correspondent bank          58                78           287          313
service charges
Loss (gain) on California   102               (168)        253          39
tax credit partnership
Net cost on operation of    1,307             696          271          934
OREO
Other non-interest          500               486          2,351        2,276
expense
Total non-interest          5,902             5,544        19,083       19,945
expense
Income before income tax    367               322          7,374        7,602
provision
Provision for (Benefit      (2,578)           (1,157)      105          1,533
from) income taxes
Net Income                $ 2,945         $   1,479      $ 7,269      $ 6,069

 

United Security Bancshares
Selected Financial Data (unaudited)
(in thousands, except per share amounts)
                          Three Months Ended December   Twelve Months Ended
                          31,                           December 31,
                          2013            2012          2013        2012
Basic earnings per share  $0.20           $0.09         $0.49       $0.41
Diluted earnings per      $0.20           $0.09         $0.49       $0.41
share
Weighted average basic    14,799,888      14,789,001    14,798,135  14,789,001
shares for EPS
Weighted average diluted  14,804,338      14,789,001    14,799,037  14,789,001
shares for EPS
Annualized return on:
Average assets            1.79%           0.93%         1.13%       0.97%
Average equity            15.80%          8.56%         10.09%      9.20%
Yield on interest-earning 3.96%           4.40%         4.15%       4.79%
assets
Cost of interest-bearing  0.40%           0.56%         0.47%       0.60%
liabilities
Net interest margin       3.72%           4.03%         3.87%       4.40%
Annualized net
charge-offs (recoveries)  (0.42)%         (0.64)%       (0.08)%     0.74%
to average loans
                          December 31,    December 31,
                          2013            2012
Shares outstanding -      14,799,888      14,217,303
period end
Book value per share      $5.17           $4.88
Tangible book value per   $4.86           $4.55
share
Efficiency ratio          73.45%          70.47%
Total nonperforming       $32,048         $47,074
assets
Nonperforming assets to   5.04%           7.25%
total assets
Total Impaired loans      $18,132         $21,931
Total nonaccrual loans    $12,341         $13,425
Allowance for credit      2.78%           2.95%
losses to total loans

 

SOURCE United Security Bancshares

Website: http://www.unitedsecuritybank.com
Contact: Dennis R. Woods, President and Chief Executive Officer of United
Security Bank, +1-559-248-4928, dwoods@unitedsecuritybank.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement