United Security Bancshares reports 2020 net income of $9.0 million
United Security Bancshares (Nasdaq: UBFO) reported its financial results for 2020, with net income of $8.96 million, down from $15.17 million in 2019. The fourth quarter saw earnings of $1.92 million, a 33.61% decline year-over-year. Total assets rose to $1.1 billion, driven by increases in loans and deposits, notably $9.5 million in Paycheck Protection Program loans. However, net interest income dropped 21.58% to $28.85 million due to lower interest rates. The allowance for credit losses increased significantly, reflecting economic uncertainties from COVID-19. Book value per share increased to $6.93.
- Total assets increased by $135.7 million to $1.1 billion.
- Total loans rose by $57.8 million to $654.3 million.
- Total deposits increased by $134.3 million to $952.7 million.
- Book value per share increased from $6.83 to $6.93.
- Reduction in nonperforming assets by $3.77 million, or 17.76%.
- Net income decreased by $6.21 million compared to 2019.
- Fourth quarter net income down by 33.61% year-over-year.
- Net interest income after provision for credit losses decreased by 21.58%.
- Allowance for credit losses increased significantly to $2.77 million.
- ROAA and ROAE decreased to 0.86% and 7.55%, respectively.
United Security Bancshares (Nasdaq: UBFO) today announced its unaudited financial results for the year ended December 31, 2020. The Company recognized net income of
Fourth Quarter 2020 Highlights (at or for the quarter ended December 31, 2020, except where noted)
-
Net income for the quarter was
$1.92 2 million, or$0.11 per basic and diluted shares, representing a$973 thousand or33.61% decrease from$2.89 5 million, or$0.17 per basic and diluted shares, for the quarter ended December 31, 2019. The decrease is primarily the result of a reduction in interest income related to a lower interest rate environment and higher provision expense for the fourth quarter 2020. -
Total assets increased
$135.7 million to$1.1 billion , compared to$956.9 million at December 31, 2019 with increases of$58.0 million in gross loan balances,$75.1 million in cash equivalents, and$6.1 million in investment securities. -
Total loans, net of unearned fees, increased
$57.8 million to$654.3 million , compared to$596.6 million at December 31, 2019. Included in the increase are$9.5 million in Paycheck Protection Program (PPP) loans. At December 31, 2020 there were$515 thousand outstanding in PPP unearned fees. -
Total deposits increased
$134.3 million to$952.7 million , compared to$818.4 million at December 31, 2019. -
The allowance for credit losses as a percentage of gross loans decreased to
1.30% , compared to1.33% at December 31, 2019. The provision for credit losses totaled$631 thousand for the quarter, compared to$5 thousand for the quarter ended December 31, 2019. The increase in the provision for credit losses during the quarter ended December 31, 2020 was primarily the result of$826 thousand in charge-offs recognized in the student loan portfolio. -
Net interest income after the provision for credit losses was
$7.4 million for the quarter ended December 31, 2020, compared to$8.7 million for the quarter ended December 31, 2019. -
A loss on the fair value of junior subordinated debt of
$481 thousand was recorded for the quarter, as compared to a loss of$407 thousand for the quarter ended December 31, 2019. -
Book value per share increased to
$6.93 , compared to$6.83 at December 31, 2019. -
Net interest margin decreased to
3.15% from4.02% for the quarter ended December 31, 2019. -
Annualized average cost of deposits decreased to
0.19% from0.37% for the quarter ended December 31, 2019. -
Net charge-offs totaled
$817 thousand , compared to net charge-offs of$328 thousand for the quarter ended December 31, 2019. -
Capital positions remain well-capitalized with a
11.37% Tier 1 Leverage Ratio compared to12.82% as of December 31, 2019. -
Annualized return on average assets ("ROAA") was
0.70% , compared to1.21% for the quarter ended December 31, 2019. -
Annualized return on average equity ("ROAE") was
6.41% , compared to9.85% for the quarter ended December 31, 2019.
Dennis Woods, President and Chief Executive Officer, stated: "Our 2020 operating results were significantly impacted by the economic impact of the COVID-19 pandemic. These factors resulted in elevated credit loss provisions, deterioration in net interest margin due to a lower interest rate environment, and a reduction in customer service fee income as we waived many overdraft and ATM fees to provide relief to our customers. Despite the negative impacts of the pandemic, we achieved strong balance sheet growth in our loan portfolio, reduced nonperforming assets, opened a new branch, and grew deposit balances. Our unfunded loan commitments grew
Results of Operations
Net income for the year ended December 31, 2020 decreased
The annualized average cost of deposits was
Net interest income after the provision for credit losses for the year ended December 31, 2020 totaled
Net interest income after the provision for credit losses was
Noninterest income for the year ended December 31, 2020 totaled
Noninterest income for the quarter ended December 31, 2020 totaled
For the year ended December 31, 2020, noninterest expense totaled
Noninterest expense for the quarter ended December 31, 2020 totaled
The efficiency ratio for the year ended December 31, 2020 increased to
The Company recorded an income tax provision of
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
Total deposits increased
Shareholders’ equity at December 31, 2020 was
The Board of Directors of United Security Bancshares declared a cash dividend on common stock of
Credit Quality
The Company has recorded a provision for credit losses of
The Company's allowance for loan loss totaled
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
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, customers 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 or value 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, in particular 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) |
|
|
|
||||
|
December 31, 2020 |
|
December 31, 2019 |
||||
Assets |
|
|
|
||||
Cash and non-interest-bearing deposits in other banks |
$ |
29,490 |
|
|
$ |
27,291 |
|
Due from Federal Reserve Bank ("FRB") |
264,579 |
|
|
191,704 |
|
||
Cash and cash equivalents |
294,069 |
|
|
218,995 |
|
||
|
|
|
|
||||
Investment securities (at fair value) |
|
|
|
||||
Available-for-sale ("AFS") securities |
82,341 |
|
|
76,312 |
|
||
Marketable equity securities |
3,851 |
|
|
3,776 |
|
||
Total investment securities |
86,192 |
|
|
80,088 |
|
||
Loans |
655,411 |
|
|
597,374 |
|
||
Unearned fees and unamortized loan origination costs - net |
(1,064) |
|
|
(820) |
|
||
Allowance for credit losses |
(8,522) |
|
|
(7,908) |
|
||
Net loans |
645,825 |
|
|
588,646 |
|
||
|
|
|
|
||||
Premises and equipment - net |
8,164 |
|
|
9,380 |
|
||
Accrued interest receivable |
9,110 |
|
|
8,208 |
|
||
Other real estate owned ("OREO") |
5,004 |
|
|
6,753 |
|
||
Goodwill |
4,488 |
|
|
4,488 |
|
||
Deferred tax assets - net |
2,907 |
|
|
3,191 |
|
||
Cash surrender value of life insurance |
20,715 |
|
|
20,955 |
|
||
Operating lease right-of-use assets |
2,864 |
|
|
3,360 |
|
||
Other assets |
13,316 |
|
|
12,855 |
|
||
Total assets |
$ |
1,092,654 |
|
|
$ |
956,919 |
|
|
|
|
|
||||
Liabilities and Shareholders' Equity |
|
|
|
||||
Deposits |
|
|
|
||||
Non-interest-bearing |
$ |
391,897 |
|
|
$ |
311,950 |
|
Interest-bearing |
560,754 |
|
|
506,412 |
|
||
Total deposits |
952,651 |
|
|
818,362 |
|
||
|
|
|
|
||||
Accrued interest payable |
33 |
|
|
59 |
|
||
Operating lease liabilities |
2,966 |
|
|
3,463 |
|
||
Other liabilities |
8,273 |
|
|
8,239 |
|
||
Junior subordinated debentures (at fair value) |
10,924 |
|
|
10,808 |
|
||
Total liabilities |
974,847 |
|
|
840,931 |
|
||
|
|
|
|
||||
Shareholders' Equity |
|
|
|
||||
Common stock, no par value; 20,000,000 shares authorized; issued and outstanding: 17,009,883 at December 31, 2020 and 16,973,885 at December 31, 2019 |
59,397 |
|
|
58,973 |
|
||
Retained earnings |
59,138 |
|
|
57,647 |
|
||
Accumulated other comprehensive loss |
(728) |
|
(632) |
||||
Total shareholders' equity |
117,807 |
|
115,988 |
||||
Total liabilities and shareholders' equity |
$ |
1,092,654 |
|
|
$ |
956,919 |
|
United Security Bancshares |
|||||||||||||||
Consolidated Statements of Income (unaudited) |
|||||||||||||||
(in thousands) |
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Interest Income: |
|
|
|
|
|
|
|
||||||||
Interest and fees on loans |
$ |
8,127 |
|
$ |
8,292 |
|
|
$ |
31,749 |
|
|
$ |
34,025 |
|
|
Interest on investment securities |
306 |
|
437 |
|
1,433 |
|
1,797 |
||||||||
Interest on deposits in FRB |
63 |
|
829 |
|
730 |
|
4,880 |
||||||||
Total interest income |
8,496 |
|
9,558 |
|
|
33,912 |
|
|
40,702 |
|
|||||
|
|
|
|
|
|
|
|
||||||||
Interest Expense: |
|
|
|
|
|
|
|
||||||||
Interest on deposits |
452 |
|
758 |
|
2,014 |
|
3,432 |
||||||||
Interest on other borrowed funds |
47 |
|
104 |
|
276 |
|
456 |
||||||||
Total interest expense |
499 |
|
862 |
|
2,290 |
|
3,888 |
||||||||
Net Interest Income |
7,997 |
|
8,696 |
|
31,622 |
|
36,814 |
||||||||
Provision for Credit Losses |
631 |
|
5 |
|
2,769 |
|
20 |
||||||||
Net Interest Income after Provision for Credit Losses |
7,366 |
|
8,691 |
|
28,853 |
|
36,794 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Noninterest Income: |
|
|
|
|
|
|
|
||||||||
Customer service fees |
648 |
|
778 |
|
2,663 |
|
3,257 |
||||||||
Increase in cash surrender value of bank-owned life insurance |
122 |
|
89 |
|
504 |
|
|
528 |
|||||||
(Loss) gain on fair value of marketable equity securities |
(14) |
|
(11) |
|
74 |
|
117 |
||||||||
Gain on proceeds from bank-owned life insurance |
— |
|
|
— |
|
310 |
|
|
— |
|
|||||
(Loss) gain on fair value of junior subordinated debentures |
(481) |
|
(407) |
|
970 |
|
1,165 |
||||||||
Recovery on investment |
64 |
|
— |
|
64 |
|
|
— |
|
||||||
Loss on dissolution of real estate investment trust |
— |
|
|
— |
|
— |
|
|
(115) |
|
|||||
(Loss) gain on sale of assets |
— |
|
|
— |
|
— |
|
|
1 |
|
|||||
Other |
128 |
|
198 |
|
589 |
|
801 |
||||||||
Total noninterest income |
467 |
|
647 |
|
5,174 |
|
5,754 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Noninterest Expense: |
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits |
2,694 |
|
2,801 |
|
10,825 |
|
11,109 |
||||||||
Occupancy expense |
865 |
|
882 |
|
3,475 |
|
3,332 |
||||||||
Data processing |
107 |
|
181 |
|
493 |
|
583 |
||||||||
Professional fees |
691 |
|
757 |
|
2,672 |
|
3,180 |
||||||||
Regulatory assessments |
176 |
|
26 |
|
459 |
|
164 |
||||||||
Director fees |
94 |
|
91 |
|
376 |
|
373 |
||||||||
Correspondent bank service charges |
19 |
|
15 |
|
71 |
|
57 |
||||||||
Net cost on operation and sale of OREO |
4 |
|
22 |
|
972 |
|
244 |
||||||||
Other |
610 |
|
560 |
|
2,272 |
|
2,237 |
||||||||
Total noninterest expense |
5,260 |
|
5,335 |
|
21,615 |
|
21,279 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Income Before Provision for Taxes |
2,573 |
|
4,003 |
|
12,412 |
|
21,269 |
||||||||
Provision for Taxes on Income |
651 |
|
1,108 |
|
3,451 |
|
6,097 |
||||||||
Net Income |
$ |
1,922 |
|
$ |
2,895 |
|
$ |
8,961 |
|
|
$ |
15,172 |
|
||
|
|
|
|
|
|
|
|
||||||||
Basic earnings per common share |
$ |
0.11 |
|
$ |
0.17 |
|
$ |
0.53 |
|
|
$ |
0.90 |
|
||
Diluted earnings per common share |
$ |
0.11 |
|
$ |
0.17 |
|
$ |
0.53 |
|
|
$ |
0.89 |
|
||
Weighted average basic shares for EPS |
16,979,845 |
|
16,956,350 |
|
16,976,704 |
|
16,951,955 |
||||||||
Weighted average diluted shares for EPS |
17,017,265 |
|
16,994,260 |
|
16,998,584 |
|
16,984,796 |
||||||||
United Security Bancshares |
|||||||||||||||
Average Balances and Rates (unaudited) |
|||||||||||||||
(in thousands) |
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Average Balances: |
|
|
|
|
|
|
|
||||||||
Loans (1) |
$ |
662,445 |
|
|
$ |
578,082 |
|
|
$ |
639,815 |
|
|
$ |
576,015 |
|
Investment securities - taxable |
89,331 |
|
|
80,958 |
|
|
90,685 |
|
|
71,456 |
|
||||
Interest-bearing deposits in FRB |
258,071 |
|
|
198,803 |
|
|
217,273 |
|
|
223,488 |
|
||||
Total interest-earning assets |
1,009,847 |
|
|
857,843 |
|
|
947,773 |
|
|
870,960 |
|
||||
Allowance for credit losses |
(8,687) |
|
|
(8,199) |
|
|
(8,661) |
|
|
(8,386) |
|
||||
Cash and due from banks |
31,348 |
|
|
29,979 |
|
|
30,300 |
|
|
29,169 |
|
||||
Other real estate owned |
5,165 |
|
|
6,446 |
|
|
5,815 |
|
|
5,922 |
|
||||
Other non-earning assets |
61,525 |
|
|
62,937 |
|
|
61,742 |
|
|
61,572 |
|
||||
Total average assets |
$ |
1,099,198 |
|
|
$ |
949,006 |
|
|
$ |
1,036,969 |
|
|
$ |
959,237 |
|
|
|
|
|
|
|
|
|
||||||||
Interest-bearing deposits |
$ |
573,558 |
|
|
$ |
497,675 |
|
|
$ |
535,818 |
|
|
$ |
516,698 |
|
Junior subordinated debentures |
10,061 |
|
|
10,266 |
|
|
9,746 |
|
|
10,289 |
|
||||
Total interest-bearing liabilities |
583,619 |
|
|
507,941 |
|
|
545,564 |
|
|
526,987 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Non-interest-bearing deposits |
386,534 |
|
|
314,245 |
|
|
363,004 |
|
|
308,518 |
|
||||
Other liabilities |
9,861 |
|
|
10,230 |
|
|
9,674 |
|
|
9,683 |
|
||||
Total liabilities |
980,014 |
|
|
832,416 |
|
|
918,242 |
|
|
845,188 |
|
||||
Total equity |
119,184 |
|
|
116,590 |
|
|
118,727 |
|
|
114,049 |
|
||||
Total liabilities and equity |
$ |
1,099,198 |
|
|
$ |
949,006 |
|
|
$ |
1,036,969 |
|
|
$ |
959,237 |
|
|
|
|
|
|
|
|
|
||||||||
Average Rates: |
|
|
|
|
|
|
|
||||||||
Loans (1) |
4.88 |
% |
|
5.69 |
% |
|
4.96 |
% |
|
5.91 |
% |
||||
Investment securities |
1.36 |
% |
|
2.14 |
% |
|
1.58 |
% |
|
2.51 |
% |
||||
Interest-bearing deposits in FRB |
0.10 |
% |
|
1.65 |
% |
|
0.34 |
% |
|
2.18 |
% |
||||
Earning assets |
3.35 |
% |
|
4.42 |
% |
|
3.58 |
% |
|
4.67 |
% |
||||
Interest bearing deposits |
0.31 |
% |
|
0.60 |
% |
|
0.38 |
% |
|
0.66 |
% |
||||
Total deposits |
0.19 |
% |
|
0.37 |
% |
|
0.22 |
% |
|
0.42 |
% |
||||
Junior subordinated debentures |
1.86 |
% |
|
4.02 |
% |
|
2.83 |
% |
|
4.43 |
% |
||||
Total interest-bearing liabilities |
0.34 |
% |
|
0.67 |
% |
|
0.42 |
% |
|
0.74 |
% |
||||
Net interest margin (2) |
3.15 |
% |
|
4.02 |
% |
|
3.34 |
% |
|
4.22 |
% |
||||
(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) |
|
||||||||||||||||||
|
December 31, 2020 |
|
September 30, 2020 |
|
June 30, 2020 |
|
March 31, 2020 |
|
December 31, 2019 |
||||||||||
Cash and cash equivalents |
$ |
294,069 |
|
|
$ |
323,332 |
|
|
$ |
229,541 |
|
|
$ |
199,853 |
|
|
$ |
218,995 |
|
Investment securities |
86,192 |
|
|
91,782 |
|
|
96,739 |
|
|
97,486 |
|
|
80,088 |
|
|||||
Loans |
654,347 |
|
|
660,444 |
|
|
648,650 |
|
|
623,686 |
|
|
596,554 |
|
|||||
Allowance for credit losses |
(8,522) |
|
|
(8,708) |
|
|
(8,862) |
|
|
(9,120) |
|
|
(7,908) |
|
|||||
Net loans |
645,825 |
|
|
651,736 |
|
|
639,788 |
|
|
614,566 |
|
|
588,646 |
|
|||||
Other assets |
66,568 |
|
|
67,097 |
|
|
65,305 |
|
|
65,341 |
|
|
69,190 |
|
|||||
Total assets |
$ |
1,092,654 |
|
|
$ |
1,133,947 |
|
|
$ |
1,031,373 |
|
|
$ |
977,246 |
|
|
$ |
956,919 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest-bearing |
$ |
391,897 |
|
|
$ |
430,028 |
|
|
$ |
362,010 |
|
|
$ |
324,167 |
|
|
$ |
311,950 |
|
Interest-bearing |
560,754 |
|
|
564,755 |
|
|
531,102 |
|
|
516,270 |
|
|
506,412 |
|
|||||
Total deposits |
952,651 |
|
|
994,783 |
|
|
893,112 |
|
|
840,437 |
|
|
818,362 |
|
|||||
Other liabilities |
22,196 |
|
|
21,111 |
|
|
20,801 |
|
|
19,399 |
|
|
22,569 |
|
|||||
Total liabilities |
974,847 |
|
|
1,015,894 |
|
|
913,913 |
|
|
859,836 |
|
|
840,931 |
|
|||||
Total shareholders' equity |
117,807 |
|
|
118,053 |
|
|
117,460 |
|
|
117,410 |
|
|
115,988 |
|
|||||
Total liabilities and shareholder's equity |
$ |
1,092,654 |
|
|
$ |
1,133,947 |
|
|
$ |
1,031,373 |
|
|
$ |
977,246 |
|
|
$ |
956,919 |
|
United Security Bancshares |
|||||||||||||||||||
Condensed - Consolidated Statements of Income (unaudited) |
|||||||||||||||||||
(in thousands) |
For the Quarters Ended: |
||||||||||||||||||
|
December 31, 2020 |
|
September 30, 2020 |
|
June 30, 2020 |
|
March 31, 2020 |
|
December 31, 2019 |
||||||||||
Total interest income |
$ |
8,496 |
|
|
$ |
7,968 |
|
|
$ |
8,107 |
|
|
$ |
9,341 |
|
|
$ |
9,558 |
|
Total interest expense |
499 |
|
|
500 |
|
|
530 |
|
|
761 |
|
|
862 |
|
|||||
Net interest income |
7,997 |
|
|
7,468 |
|
|
7,577 |
|
|
8,580 |
|
|
8,696 |
|
|||||
Provision for credit losses |
631 |
|
|
4 |
|
|
428 |
|
|
1,707 |
|
|
5 |
|
|||||
Net interest income after provision for credit losses |
7,366 |
|
|
7,464 |
|
|
7,149 |
|
|
6,873 |
|
|
8,691 |
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total non-interest income |
467 |
|
|
911 |
|
|
1,214 |
|
|
2,580 |
|
|
647 |
|
|||||
Total non-interest expense |
5,260 |
|
|
5,210 |
|
|
5,553 |
|
|
5,591 |
|
|
5,335 |
|
|||||
Income before provision for taxes |
2,573 |
|
|
3,165 |
|
|
2,810 |
|
|
3,862 |
|
|
4,003 |
|
|||||
Provision for taxes on income |
651 |
|
|
894 |
|
|
798 |
|
|
1,108 |
|
|
1,108 |
|
|||||
Net income |
$ |
1,922 |
|
|
$ |
2,271 |
|
|
$ |
2,012 |
|
|
$ |
2,754 |
|
|
$ |
2,895 |
|
United Security Bancshares |
|||||||
Nonperforming Assets (unaudited) |
|||||||
(dollars in thousands) |
|||||||
|
December 31, 2020 |
|
December 31, 2019 |
||||
Commercial and industrial |
$ |
— |
|
|
$ |
75 |
|
RE construction & development |
11,057 |
|
|
11,478 |
|
||
Agricultural |
439 |
|
|
144 |
|
||
Total nonaccrual loans |
$ |
11,496 |
|
|
$ |
11,697 |
|
|
|
|
|
||||
Loans past due 90 days and still accruing |
513 |
|
|
386 |
|
||
Restructured loans |
535 |
|
|
2,389 |
|
||
Total nonperforming loans |
$ |
12,544 |
|
|
$ |
14,472 |
|
Other real estate owned |
5,004 |
|
|
6,753 |
|
||
Total nonperforming assets |
$ |
17,548 |
|
|
$ |
21,225 |
|
|
|
|
|
||||
Nonperforming loans to total gross loans |
1.90 |
% |
|
2.42 |
% |
||
Nonperforming assets to total assets |
1.60 |
% |
|
2.22 |
% |
||
Allowance for credit losses to nonperforming loans |
68.44 |
% |
|
54.64 |
% |
||
United Security Bancshares |
|||||||||
Selected Financial Data (unaudited) |
|||||||||
(dollars in thousands, except per share amounts) |
|||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||
|
|
|
|
|
|
|
|
||
Return on average assets |
0.70 |
% |
|
1.21 |
% |
|
|
|
|
Return on average equity |
6.41 |
% |
|
9.85 |
% |
|
|
|
|
Net charge-off to average loans |
0.49 |
% |
|
0.23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
|
December 31, 2020 |
|
December 31, 2019 |
|
|
|
|
||
Shares outstanding - period end |
17,009,883 |
|
|
16,973,885 |
|
|
|
|
|
Book value per share |
|
|
|
|
|
|
|
|
|
Efficiency ratio (1) |
58.74 |
% |
|
49.99 |
% |
|
|
|
|
Total impaired loans |
|
|
|
|
|
|
|
|
|
Net loan to deposit ratio |
67.79 |
% |
|
71.93 |
% |
|
|
|
|
Allowance for credit losses to total loans |
1.30 |
% |
|
1.33 |
% |
|
|
|
|
Tier 1 capital to adjusted average assets (leverage) |
|
|
|
|
|
|
|
||
Company |
11.37 |
% |
|
12.82 |
% |
|
|
|
|
Bank |
11.17 |
% |
|
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) |
|||||||||||||||
|
|
Year Ended December 31, |
|
|
|
|
|||||||||
|
|
2020 |
|
2019 |
|
Change $ |
|
Change % |
|||||||
Net income |
|
$ |
8,961 |
|
|
$ |
15,172 |
|
|
$ |
(6,211) |
|
|
(40.94) |
% |
|
|
|
|
|
|
|
|
|
|||||||
TRUPs (1) fair value adjustment gain |
|
970 |
|
|
1,165 |
|
|
|
|
|
|||||
Write down on OREO (2) |
|
(727) |
|
|
— |
|
|
|
|
|
|||||
Loss on sale of OREO (2) |
|
(113) |
|
|
— |
|
|
|
|
|
|||||
|
|
130 |
|
|
1,165 |
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||
Income tax effect |
|
38 |
|
|
338 |
|
|
|
|
|
|||||
Non-core items net of taxes |
|
92 |
|
|
827 |
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||
Non-GAAP core net income |
|
$ |
8,869 |
|
|
$ |
14,345 |
|
|
$ |
(5,476) |
|
|
(38.17) |
% |
|
|
|
|
|
|
|
|
|
|||||||
Core net income basic earnings per share (EPS) |
|
0.52 |
|
|
0.85 |
|
|
|
|
|
|||||
Core net income diluted earnings per share (EPS) |
|
0.52 |
|
|
0.84 |
|
|
|
|
|
|||||
(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/20210127005956/en/
FAQ
What were United Security Bancshares' net income results for 2020?
How did the fourth quarter earnings of UBFO compare to last year?
What was the impact of COVID-19 on UBFO's financial performance?
What was the book value per share for UBFO at the end of 2020?
How did total assets change for United Security Bancshares in 2020?
