United Security Bancshares Reports 2nd Quarter Net Income of $2.7 Million
United Security Bancshares (Nasdaq: UBFO) reported unaudited financial results for the six months ended June 30, 2021, posting a net income of $4.1 million, down from $4.8 million in 2020. For Q2 2021, net income rose 34.44% to $2.7 million, driven by increased loan interest income and reduced OREO expenses. Total assets increased 12.67% to $1.23 billion, while total loans surged 28.69% to $842 million. The net interest margin contracted to 3.22%. The allowance for credit losses decreased to 1.09%, indicating improved credit quality. The company declared a cash dividend of $0.11 per share, payable on July 16, 2021.
- Net income for Q2 2021 increased 34.44% to $2.7 million.
- Total assets rose 12.67% to $1.23 billion.
- Total loans increased 28.69% to $842 million.
- Net interest income increased 15.27% to $8.9 million for Q2 2021.
- The allowance for credit losses decreased to 1.09% of gross loans.
- Net income for the six months decreased by $653,000 compared to the same period in 2020.
- Net interest margin contracted from 3.39% to 3.22%.
- Noninterest income decreased $2.6 million to $1.2 million over the same period in 2020.
- ROAE declined from 8.09% to 7.00% for the six months ended June 30, 2021.
United Security Bancshares (Nasdaq: UBFO) today announced its unaudited financial results for the three and six months ended June 30, 2021. The Company recognized net income of
Second Quarter 2021 Highlights (at or for the quarter ended June 30, 2021, except where noted)
-
Net income for the quarter increased
34.44% to$2.7 million , compared to$2.0 million for the quarter ended June 30, 2020. The increase is primarily the result of an increase of$859,000 in loan interest income and fees, and decrease in OREO expense of$890,000. -
Total assets increased
12.67% to$1.23 billion , compared to$1.09 billion at December 31, 2020. -
Total loans, net of unearned fees, increased
28.69% to$842.0 million , compared to$654.3 million at December 31, 2020. -
Total investments increased
98.12% , or$84.6 million , to$170.8 million , compared to$86.2 million at December 31, 2020. -
Total deposits increased
14.46% to$1.09 billion , compared to$952.7 million at December 31, 2020. -
The allowance for credit losses as a percentage of gross loans decreased to
1.09% , compared to1.30% at December 31, 2020. The decrease in the allowance for credit losses as a percentage of gross loans is from improved credit quality resulting from an increase in residential mortgage loans purchased during the quarter. -
Net interest income after the provision for credit losses was
$8.1 million for the quarter ended June 30, 2021, compared to$7.3 million for the quarter ended June 30, 2020. -
Book value per share increased to
$6.96 , compared to$6.93 at December 31, 2020. -
Net interest margin decreased to
3.22% from3.39% for the quarter ended June 30, 2020. -
Annualized average cost of deposits decreased to
0.17% from0.21% for the quarter ended June 30, 2020. -
Net charge-offs totaled
$174,000 , compared to net charge-offs of$686,000 for the quarter ended June 30, 2020. -
Capital position remains well-capitalized with a
10.28% Tier 1 Leverage Ratio compared to11.37% as of December 31, 2020. -
Annualized return on average assets ("ROAA") was
0.89% , compared to0.80% for the quarter ended June 30, 2020. -
Annualized return on average equity ("ROAE") was
9.15% , compared to6.80% for the quarter ended June 30, 2020.
Dennis Woods, President and Chief Executive Officer, stated: "We successfully executed the first phase of our 2021 Strategy to deploy excess cash during the second quarter, and although this improved our results for the second quarter, we will see the full impact reflected in our earnings during the third quarter and beyond. We grew our loan and investment portfolios by
Results of Operations
Six Months Ended June 30, 2021:
Net income for the six months ended June 30, 2021 decreased
The annualized average cost of deposits was
Net interest income for the six months ended June 30, 2021 totaled
Noninterest income for the six months ended June 30, 2021 totaled
For the six months ended June 30, 2021, noninterest expense totaled
The efficiency ratio for the six months ended June 30, 2021 increased to
The Company recorded an income tax provision of
Quarter Ended June 30, 2021:
For the quarter ended June 30, 2021, the Company reported net income of
Net interest income was
Noninterest income for the quarter ended June 30, 2021 totaled
Noninterest expense for the quarter ended June 30, 2021 totaled
The Company recorded an income tax provision of
Balance Sheet Review
Total assets increased
Total deposits increased
Shareholders’ equity at June 30, 2021 was
The Board of Directors of United Security Bancshares declared a cash dividend on common stock of
Credit Quality
The Company 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
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.
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, California. 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 press 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, or other similar outbreaks, including the effects of the steps being taken to address the pandemic and their impact on the Company’s markets, 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 markets, impacting the ability to execute its business plans, (6) loss of key personnel, (7) unanticipated credit losses, (8) drought, 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, (10) uncertainty regarding the replacement of LIBOR, and (11) 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, 2020, 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 |
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Consolidated Balance Sheets (unaudited) |
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(in thousands) |
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June 30, 2021 |
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December 31, 2020 |
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June 30, 2020 |
||||||||||
Assets |
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||||||||||
Cash and non-interest-bearing deposits in other banks |
$ |
43,240 |
|
|
$ |
29,490 |
|
|
$ |
34,985 |
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|
|||
Due from Federal Reserve Bank ("FRB") |
117,668 |
|
|
264,579 |
|
|
194,556 |
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||||||
Cash and cash equivalents |
160,908 |
|
|
294,069 |
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|
229,541 |
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Investment securities (at fair value) |
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||||||||||
Available-for-sale ("AFS") securities |
166,976 |
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|
82,341 |
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92,877 |
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Marketable equity securities |
3,791 |
|
|
3,851 |
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|
3,862 |
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||||||
Total investment securities |
170,767 |
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|
86,192 |
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|
96,739 |
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||||||
Loans |
841,103 |
|
|
655,411 |
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|
649,654 |
|
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||||||
Unearned fees and unamortized loan origination costs - net |
946 |
|
|
(1,064 |
) |
|
(1,004 |
) |
|
||||||
Allowance for credit losses |
(9,200 |
) |
|
(8,522 |
) |
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(8,862 |
) |
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Net loans |
832,849 |
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|
645,825 |
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|
639,788 |
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Premises and equipment - net |
8,877 |
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|
9,110 |
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|
9,441 |
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||||||
Accrued interest receivable |
8,600 |
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|
8,164 |
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|
9,146 |
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Other real estate owned |
4,753 |
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|
5,004 |
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|
5,018 |
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||||||
Goodwill |
4,488 |
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|
4,488 |
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4,488 |
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||||||
Deferred tax assets - net |
3,063 |
|
|
2,907 |
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|
2,574 |
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Cash surrender value of life insurance |
21,904 |
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|
20,715 |
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|
20,279 |
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||||||
Operating lease right-of-use assets |
2,600 |
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|
2,864 |
|
|
3,065 |
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Other assets |
12,246 |
|
|
13,316 |
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|
11,294 |
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Total assets |
$ |
1,231,055 |
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|
$ |
1,092,654 |
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|
$ |
1,031,373 |
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Liabilities and Shareholders' Equity |
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Deposits |
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Non-interest-bearing |
$ |
442,140 |
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|
$ |
391,897 |
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|
$ |
362,010 |
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Interest-bearing |
648,302 |
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|
560,754 |
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|
531,102 |
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Total deposits |
1,090,442 |
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|
952,651 |
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|
893,112 |
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||||||||||
Operating lease liabilities |
2,707 |
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|
2,967 |
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|
3,168 |
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Other liabilities |
8,288 |
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|
8,305 |
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|
7,862 |
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||||||
Junior subordinated debentures (at fair value) |
11,253 |
|
|
10,924 |
|
|
9,771 |
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Total liabilities |
1,112,690 |
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|
974,847 |
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|
913,913 |
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Shareholders' Equity |
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Common stock, no par value; 20,000,000 shares authorized; issued and outstanding: 17,010,288 at June 30, 2021, 17,009,883 at December 31, 2020, and 16,977,239 at June 30, 2020. |
59,496 |
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|
59,397 |
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|
59,181 |
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Retained earnings |
59,507 |
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|
59,138 |
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|
58,680 |
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Accumulated other comprehensive loss |
(638 |
) |
|
(728 |
) |
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(401 |
) |
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Total shareholders' equity |
118,365 |
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|
117,807 |
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|
117,460 |
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Total liabilities and shareholders' equity |
$ |
1,231,055 |
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|
$ |
1,092,654 |
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$ |
1,031,373 |
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United Security Bancshares |
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Consolidated Statements of Income (unaudited) |
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(in thousands) |
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Three Months Ended |
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Six Months Ended June 30, |
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|
June 30,
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March 31,
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|
June 30,
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2021 |
|
2020 |
||||||||
Interest Income: |
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Interest and fees on loans |
$ |
8,708 |
|
$ |
8,071 |
|
|
$ |
7,849 |
|
|
$ |
16,779 |
|
|
$ |
16,348 |
Interest on investment securities |
654 |
|
387 |
|
|
356 |
|
|
1,041 |
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|
784 |
|||||
Interest on deposits in FRB |
42 |
|
62 |
|
|
38 |
|
|
104 |
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|
605 |
|||||
Total interest income |
9,404 |
|
8,520 |
|
|
8,243 |
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|
17,924 |
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|
17,737 |
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Interest Expense: |
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||||||||
Interest on deposits |
468 |
|
427 |
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|
447 |
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|
895 |
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|
1,111 |
|||||
Interest on other borrowed funds |
45 |
|
46 |
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|
83 |
|
|
92 |
|
|
180 |
|||||
Total interest expense |
513 |
|
473 |
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|
530 |
|
|
987 |
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|
1,291 |
|||||
Net Interest Income |
8,891 |
|
8,047 |
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|
7,713 |
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|
16,937 |
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|
16,446 |
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Provision for Credit Losses |
826 |
|
375 |
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|
428 |
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|
1,201 |
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|
2,134 |
|||||
Net Interest Income after Provision for Credit Losses |
8,065 |
|
7,672 |
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|
7,285 |
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|
15,736 |
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|
14,312 |
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Noninterest Income: |
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Customer service fees |
692 |
|
656 |
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|
618 |
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|
1,348 |
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|
1,346 |
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Increase in cash surrender value of bank-owned life insurance |
138 |
|
132 |
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|
127 |
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|
269 |
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|
258 |
|||||
Unrealized gain (loss) on fair value of marketable equity securities |
— |
|
(60 |
) |
|
71 |
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|
(60 |
) |
|
85 |
|||||
Gain on proceeds from bank-owned life insurance |
— |
|
— |
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|
310 |
|
|
— |
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|
310 |
|||||
Gain (loss) on fair value of junior subordinated debentures |
377 |
|
(1,033 |
) |
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(30 |
) |
|
(656 |
) |
|
1,469 |
|||||
Gain on sale of assets |
— |
|
— |
|
|
— |
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|
13 |
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|
— |
|||||
Other |
115 |
|
133 |
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|
118 |
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|
248 |
|
|
328 |
|||||
Total noninterest income |
1,322 |
|
(172 |
) |
|
1,214 |
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|
1,162 |
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|
3,796 |
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Noninterest Expense: |
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Salaries and employee benefits |
2,893 |
|
3,024 |
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|
2,414 |
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5,917 |
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|
5,409 |
|||||
Occupancy expense |
837 |
|
856 |
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|
869 |
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|
1,693 |
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|
1,723 |
|||||
Data processing |
148 |
|
87 |
|
|
135 |
|
|
235 |
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|
247 |
|||||
Professional fees |
865 |
|
827 |
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|
691 |
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|
1,690 |
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|
1,546 |
|||||
Regulatory assessments |
123 |
|
166 |
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|
77 |
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|
289 |
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|
162 |
|||||
Director fees |
92 |
|
92 |
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|
94 |
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|
184 |
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|
188 |
|||||
Correspondent bank service charges |
23 |
|
19 |
|
|
17 |
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|
42 |
|
|
33 |
|||||
Net cost on operation and sale of OREO |
18 |
|
25 |
|
|
780 |
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|
43 |
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|
933 |
|||||
Other |
606 |
|
469 |
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|
612 |
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|
1,077 |
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|
1,193 |
|||||
Total noninterest expense |
5,605 |
|
5,565 |
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|
5,689 |
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|
11,170 |
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|
11,434 |
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Income Before Provision for Taxes |
3,782 |
|
1,935 |
|
|
2,810 |
|
|
5,728 |
|
|
6,674 |
|||||
Provision for Taxes on Income |
1,077 |
|
537 |
|
|
798 |
|
|
1,613 |
|
|
1,906 |
|||||
Net Income |
2,705 |
|
1,398 |
|
|
2,012 |
|
|
$ |
4,115 |
|
|
$ |
4,768 |
|||
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Basic earnings per common share |
$ |
0.16 |
|
$ |
0.08 |
|
|
$ |
0.12 |
|
|
$ |
0.24 |
|
|
$ |
0.28 |
Diluted earnings per common share |
$ |
0.16 |
|
$ |
0.08 |
|
|
$ |
0.12 |
|
|
$ |
0.24 |
|
|
$ |
0.28 |
Weighted average basic shares for EPS |
17,010,288 |
|
17,010,131 |
|
|
16,975,588 |
|
|
17,010,210 |
|
|
16,974,845 |
|||||
Weighted average diluted shares for EPS |
17,032,878 |
|
17,026,752 |
|
|
16,988,778 |
|
|
17,027,477 |
|
|
16,992,223 |
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United Security Bancshares |
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Average Balances and Rates (unaudited) |
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(in thousands) |
Three Months Ended |
|
Six Months Ended June 30, |
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|
June 30, 2021 |
|
March 31, 2021 |
|
June 30, 2020 |
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2021 |
|
2020 |
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Average Balances: |
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||||||||||
Loans (1) |
$ |
762,090 |
|
|
$ |
669,723 |
|
|
$ |
636,840 |
|
|
$ |
716,162 |
|
|
$ |
619,950 |
|
Investment securities |
164,908 |
|
|
103,236 |
|
|
97,209 |
|
|
134,243 |
|
|
89,655 |
|
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Interest-bearing deposits in FRB |
180,061 |
|
|
258,918 |
|
|
182,755 |
|
|
219,272 |
|
|
180,751 |
|
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Total interest-earning assets |
1,107,059 |
|
|
1,031,877 |
|
|
916,804 |
|
|
1,069,677 |
|
|
890,356 |
|
|||||
Allowance for credit losses |
(8,552 |
) |
|
(8,507 |
) |
|
(9,124 |
) |
|
(8,535 |
) |
|
(8,515 |
) |
|||||
Cash and due from banks |
48,415 |
|
|
41,650 |
|
|
28,432 |
|
|
45,051 |
|
|
28,857 |
|
|||||
Other real estate owned |
4,965 |
|
|
5,074 |
|
|
5,969 |
|
|
5,019 |
|
|
6,452 |
|
|||||
Other non-earning assets |
71,387 |
|
|
60,641 |
|
|
64,224 |
|
|
66,048 |
|
|
62,845 |
|
|||||
Total average assets |
$ |
1,223,274 |
|
|
$ |
1,130,735 |
|
|
$ |
1,006,305 |
|
|
$ |
1,177,260 |
|
|
$ |
979,995 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits |
$ |
637,444 |
|
|
$ |
578,513 |
|
|
$ |
516,271 |
|
|
$ |
608,141 |
|
|
$ |
508,648 |
|
Junior subordinated debentures |
10,961 |
|
|
10,896 |
|
|
8,494 |
|
|
10,929 |
|
|
9,605 |
|
|||||
Total interest-bearing liabilities |
648,405 |
|
|
589,409 |
|
|
524,765 |
|
|
619,070 |
|
|
518,253 |
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest-bearing deposits |
446,352 |
|
|
412,455 |
|
|
352,309 |
|
|
429,513 |
|
|
333,330 |
|
|||||
Other liabilities |
9,657 |
|
|
9,914 |
|
|
10,120 |
|
|
9,773 |
|
|
9,899 |
|
|||||
Total liabilities |
1,104,414 |
|
|
1,011,778 |
|
|
887,194 |
|
|
1,058,356 |
|
|
861,482 |
|
|||||
Total equity |
118,860 |
|
|
118,957 |
|
|
119,111 |
|
|
118,904 |
|
|
118,513 |
|
|||||
Total liabilities and equity |
$ |
1,223,274 |
|
|
$ |
1,130,735 |
|
|
$ |
1,006,305 |
|
|
$ |
1,177,260 |
|
|
$ |
979,995 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average Rates: |
|
|
|
|
|
|
|
|
|
||||||||||
Loans (1) |
4.58 |
% |
|
4.89 |
% |
|
4.96 |
% |
|
4.72 |
% |
|
5.30 |
% |
|||||
Investment securities |
1.59 |
% |
|
1.52 |
% |
|
1.47 |
% |
|
1.56 |
% |
|
1.76 |
% |
|||||
Interest-bearing deposits in FRB |
0.09 |
% |
|
0.10 |
% |
|
0.08 |
% |
|
0.10 |
% |
|
0.67 |
% |
|||||
Earning assets |
3.41 |
% |
|
3.35 |
% |
|
3.62 |
% |
|
3.38 |
% |
|
4.01 |
% |
|||||
Interest bearing deposits |
0.29 |
% |
|
0.30 |
% |
|
0.35 |
% |
|
0.30 |
% |
|
0.44 |
% |
|||||
Total deposits |
0.17 |
% |
|
0.17 |
% |
|
0.21 |
% |
|
0.17 |
% |
|
0.27 |
% |
|||||
Junior subordinated debentures |
1.65 |
% |
|
1.71 |
% |
|
3.93 |
% |
|
1.70 |
% |
|
3.77 |
% |
|||||
Total interest-bearing liabilities |
0.32 |
% |
|
0.33 |
% |
|
0.41 |
% |
|
0.32 |
% |
|
0.50 |
% |
|||||
Net interest margin (2) |
3.22 |
% |
|
3.16 |
% |
|
3.39 |
% |
|
3.19 |
% |
|
3.72 |
% |
|||||
(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, 2021 |
|
March 31, 2021 |
|
December 31, 2020 |
|
September 30, 2020 |
|
June 30, 2020 |
|||||||||||||||
Cash and cash equivalents |
$ |
160,908 |
|
|
|
$ |
307,909 |
|
|
|
$ |
294,069 |
|
|
|
$ |
323,332 |
|
|
|
$ |
229,541 |
|
|
Investment securities |
170,767 |
|
|
|
147,340 |
|
|
|
86,192 |
|
|
|
91,782 |
|
|
|
96,739 |
|
|
|||||
Loans |
842,049 |
|
|
|
674,489 |
|
|
|
654,347 |
|
|
|
660,444 |
|
|
|
648,650 |
|
|
|||||
Allowance for credit losses |
(9,200 |
) |
|
|
(8,549 |
) |
|
|
(8,522 |
) |
|
|
(8,708 |
) |
|
|
(8,862 |
) |
|
|||||
Net loans |
832,849 |
|
|
|
665,940 |
|
|
|
645,825 |
|
|
|
651,736 |
|
|
|
639,788 |
|
|
|||||
Other assets |
66,531 |
|
|
|
65,747 |
|
|
|
66,568 |
|
|
|
67,097 |
|
|
|
65,305 |
|
|
|||||
Total assets |
$ |
1,231,055 |
|
|
|
$ |
1,186,936 |
|
|
|
$ |
1,092,654 |
|
|
|
$ |
1,133,947 |
|
|
|
$ |
1,031,373 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Non-interest-bearing |
$ |
442,140 |
|
|
|
$ |
429,005 |
|
|
|
$ |
391,897 |
|
|
|
$ |
430,028 |
|
|
|
$ |
362,010 |
|
|
Interest-bearing |
648,302 |
|
|
|
618,776 |
|
|
|
560,754 |
|
|
|
564,755 |
|
|
|
531,102 |
|
|
|||||
Total deposits |
1,090,442 |
|
|
|
1,047,781 |
|
|
|
952,651 |
|
|
|
994,783 |
|
|
|
893,112 |
|
|
|||||
Other liabilities |
22,248 |
|
|
|
21,822 |
|
|
|
22,196 |
|
|
|
21,111 |
|
|
|
20,801 |
|
|
|||||
Total liabilities |
1,112,690 |
|
|
|
1,069,603 |
|
|
|
974,847 |
|
|
|
1,015,894 |
|
|
|
913,913 |
|
|
|||||
Total shareholders' equity |
118,365 |
|
|
|
117,333 |
|
|
|
117,807 |
|
|
|
118,053 |
|
|
|
117,460 |
|
|
|||||
Total liabilities and shareholder's equity |
$ |
1,231,055 |
|
|
|
$ |
1,186,936 |
|
|
|
$ |
1,092,654 |
|
|
|
$ |
1,133,947 |
|
|
|
$ |
1,031,373 |
|
|
United Security Bancshares |
|
|
|
|
|
|
|
|
||||||||||||
Condensed - Consolidated Statements of Income (unaudited) |
|
|
|
|
||||||||||||||||
(in thousands) |
For the Quarters Ended: |
|||||||||||||||||||
|
June 30, 2021 |
|
March 31, 2021 |
|
December 31, 2020 |
|
September 30, 2020 |
|
June 30, 2020 |
|||||||||||
Total interest income |
$ |
9,404 |
|
|
$ |
8,520 |
|
|
|
$ |
8,496 |
|
|
$ |
7,968 |
|
|
$ |
8,107 |
|
Total interest expense |
513 |
|
|
473 |
|
|
|
499 |
|
|
500 |
|
|
530 |
|
|||||
Net interest income |
8,891 |
|
|
8,047 |
|
|
|
7,997 |
|
|
7,468 |
|
|
7,577 |
|
|||||
Provision for credit losses |
826 |
|
|
375 |
|
|
|
631 |
|
|
4 |
|
|
428 |
|
|||||
Net interest income after provision for credit losses |
8,065 |
|
|
7,672 |
|
|
|
7,366 |
|
|
7,464 |
|
|
7,149 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total non-interest (loss) income |
1,322 |
|
|
(159 |
) |
|
|
467 |
|
|
911 |
|
|
1,214 |
|
|||||
Total non-interest expense |
5,605 |
|
|
5,565 |
|
|
|
5,260 |
|
|
5,210 |
|
|
5,553 |
|
|||||
Income before provision for taxes |
3,782 |
|
|
1,948 |
|
|
|
2,573 |
|
|
3,165 |
|
|
2,810 |
|
|||||
Provision for taxes on income |
1,077 |
|
|
537 |
|
|
|
651 |
|
|
894 |
|
|
798 |
|
|||||
Net income |
$ |
2,705 |
|
|
$ |
1,411 |
|
|
|
$ |
1,922 |
|
|
$ |
2,271 |
|
|
$ |
2,012 |
|
United Security Bancshares |
|
|
|
|
|
||||||
Nonperforming Assets (unaudited) |
|
|
|
|
|
||||||
(dollars in thousands) |
|
|
|
|
|
||||||
|
June 30, 2021 |
|
December 31, 2020 |
|
June 30, 2020 |
||||||
RE construction & development |
10,940 |
|
|
11,057 |
|
|
11,109 |
|
|||
Agricultural |
325 |
|
|
439 |
|
|
514 |
|
|||
Total nonaccrual loans |
$ |
11,265 |
|
|
$ |
11,496 |
|
|
$ |
11,623 |
|
|
|
|
|
|
|
||||||
Loans past due 90 days and still accruing |
156 |
|
|
513 |
|
|
269 |
|
|||
Restructured loans |
412 |
|
|
535 |
|
|
2,105 |
|
|||
Total nonperforming loans |
$ |
11,833 |
|
|
$ |
12,544 |
|
|
$ |
13,997 |
|
Other real estate owned |
4,753 |
|
|
5,004 |
|
|
5,018 |
|
|||
Total nonperforming assets |
$ |
16,586 |
|
|
$ |
17,548 |
|
|
$ |
19,015 |
|
|
|
|
|
|
|
||||||
Nonperforming loans to total gross loans |
1.41 |
% |
|
1.91 |
% |
|
2.15 |
% |
|||
Nonperforming assets to total assets |
1.35 |
% |
|
1.61 |
% |
|
1.84 |
% |
|||
Allowance for credit losses to nonperforming loans |
77.75 |
% |
|
67.94 |
% |
|
63.31 |
% |
|||
United Security Bancshares |
|
|
|
|
|
|
|
||
Selected Financial Data (unaudited) |
|
|
|
|
|
|
|
||
(dollars in thousands, except per share amounts) |
|
|
|
|
|
|
|||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||
|
|
|
|
|
|
|
|
||
Return on average assets |
0.89 |
% |
|
0.80 |
% |
|
|
|
|
Return on average equity |
9.15 |
% |
|
6.80 |
% |
|
|
|
|
Net charge-off to average loans |
0.09 |
% |
|
0.43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
|
June 30, 2021 |
|
December 31, 2020 |
|
|
|
|
||
Shares outstanding - period end |
17,010,288 |
|
|
17,009,883 |
|
|
|
|
|
Book value per share |
|
|
|
|
|
|
|
|
|
Efficiency ratio (1) |
61.72 |
% |
|
58.74 |
% |
|
|
|
|
Total impaired loans |
|
|
|
|
|
|
|
|
|
Net loan to deposit ratio |
76.38 |
% |
|
67.79 |
% |
|
|
|
|
Allowance for credit losses to total loans |
1.09 |
% |
|
1.30 |
% |
|
|
|
|
Tier 1 capital to adjusted average assets (leverage) |
|
|
|
|
|
|
|
||
Company |
10.28 |
% |
|
11.37 |
% |
|
|
|
|
Bank |
10.11 |
% |
|
11.17 |
% |
|
|
|
|
(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, |
|
|
|
|
||||||||||||
|
|
2021 |
|
|
2020 |
|
|
Change $ |
|
Change % |
||||||||
Net income |
|
$ |
4,115 |
|
|
|
$ |
4,768 |
|
|
|
$ |
(653 |
) |
|
|
(13.70 |
)% |
|
|
|
|
|
|
|
|
|
||||||||||
Junior subordinated debenture (1) fair value adjustment |
|
(656 |
) |
|
|
1,469 |
|
|
|
|
|
|
||||||
Write down on OREO (2) |
|
— |
|
|
|
(727 |
) |
|
|
|
|
|
||||||
Loss on sale of OREO (2) |
|
— |
|
|
|
(113 |
) |
|
|
|
|
|
||||||
Total non-core items |
|
(656 |
) |
|
|
629 |
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||||
Income tax effect |
|
190 |
|
|
|
(182 |
) |
|
|
|
|
|
||||||
Non-core items net of taxes |
|
(466 |
) |
|
|
447 |
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||||
Non-GAAP core net income |
|
$ |
4,581 |
|
|
|
$ |
4,321 |
|
|
|
$ |
260 |
|
|
|
6.02 |
% |
(1) Junior subordinated debenture 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 or Loss on sale of OREO is considered a one-time event and therefore is not part of Core Income. |
||||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20210721005953/en/
FAQ
What were the net income figures for UBFO in Q2 2021?
How much did total assets increase for UBFO by June 30, 2021?
What was the dividend declared by UBFO in June 2021?
How did net interest income change for UBFO in Q2 2021?
What is the current net interest margin for UBFO?
