FRESNO, Calif., July 17, 2019 /PRNewswire/ -- United Security Bancshares (Nasdaq: UBFO) today announced its unaudited financial results for the three and six months ended June 30, 2019. The Company reported consolidated net income of $4,097,000, or $0.24 per basic and diluted common share, for the quarter ended June 30, 2019, as compared to $3,392,000, or $0.20 per basic and diluted common share, for the quarter ended June 30, 2018. The Company recognized net income of $8,104,000 for the six months ended June 30, 2019, an increase of 24% compared to the net income of $6,549,000 recognized for the six months ended June 30, 2018. Basic and diluted earnings per share increased to $0.48 for the six months ended June 30, 2019, as compared to basic and diluted earnings per share of $0.39 for the six months ended June 30, 2018.

Second Quarter 2019 Highlights (at or for the quarter ended June 30, 2019, except where noted)

  • Net interest income after provision for credit losses increased to $9,299,000, compared to $8,914,000 for the quarter ended June 30, 2018, and decreased from $9,454,000 in the preceding quarter.
  • Net interest margin increased to 4.28% from 4.03% for the quarter ended June 30, 2018, and decreased from 4.45% in the preceding quarter.
  • Net recoveries totaled $31,000, compared to net recoveries of $445,000 for the quarter ended June 30, 2018, and $16,000 in the preceding quarter.
  • Capital positions remain strong with a 12.43% Tier 1 Leverage Ratio, a 15.47% Common Equity Tier 1 Ratio; a 16.90% Tier 1 Risk-Based Capital Ratio; and a 18.15% Total Risk-Based Capital Ratio.
  • Annualized return on average assets ("ROAA") was 1.71%, compared to 1.58% for the quarter ended June 30, 2018, and 1.74% in the preceding quarter.
  • Annualized return on average equity ("ROAE") was 14.53%, compared to 12.95% for the quarter ended June 30, 2018, and 14.80% in the preceding quarter.
  • Total loans, net of unearned fees, decreased to $572,810,000, compared to $587,814,000 at December 31, 2018.
  • Other real estate owned balances remained at $5,745,000 at June 30, 2019 when compared to $5,745,000 at December 31, 2018.
  • The allowance for credit losses as a percentage of gross loans increased to 1.48%, compared to 1.43% at December 31, 2018.
  • Total deposits increased to $870,915,000, compared to $805,643,000 at December 31, 2018.
  • Book value per share increased to $6.69, compared to $6.45 at December 31, 2018.

Dennis Woods, President and Chief Executive Officer, stated: "Throughout the second quarter of 2019 the Company continued to build upon the successes of our recent history. For the first time in our Company's history we are reporting total assets in excess of $1 billion. During the second quarter, deposits increased $39.3 million, and the resulting increases in interest income helped our book value per share grow from $6.58 to $6.69. We expect to capitalize on our historic growth and look forward to a very exciting rest of 2019.

Results of Operations

ROAE for the six months ended June 30, 2019 was 14.57%, compared to 12.69% for the six months ended June 30, 2018.  ROAA was 1.71% for the six months ended June 30, 2019, compared to 1.57% for the six months ended June 30, 2018.  Annualized ROAE for the quarter ended June 30, 2019 was 14.53% compared to 12.95% for the same period in 2018. Annualized ROAA was 1.71% for the quarter ended June 30, 2019, compared to 1.58% for the same period in 2018.

The annualized average cost of deposits was 0.43% for the quarter ended June 30, 2019 and 0.30% for the quarter ended June 30, 2018. The increase in the cost of deposits is attributed to increases in average balances and rates paid on time deposits and money market accounts. Interest-bearing deposits increased 23.78% between June 30, 2018 and 2019 to an average balance of $522,382,000.

Net interest income after the provision for credit losses for the six months ended June 30, 2019 totaled $18,753,000, an increase of $1,325,000, or 7.60%, from $17,428,000 for the same period ended June 30, 2018. The Company's net interest margin increased from 4.26% for the six months ended June 30, 2018 to 4.36% for the six months ended June 30, 2019.  The increase was the result of increases in loan yields, investment yields, and yields on overnight funds, partially offset by the increasing costs of deposits. The yield on loans increased from 5.36% for the six months ended June 30, 2018 to 6.01% for the six months ended June 30, 2019. The yield on loans for the six months ended June 30, 2018 includes $550,000 in writedowns of unamortized insurance premiums on the student loan portfolio, which was a result of the dissolution of the insurance carrier. The increase in net interest income on a year-over-year comparison is the result of higher interest rates on loans and an increase in overnight funds and investment securities, partially offset by increasing costs of deposits and a decline in loan balances. Net interest income after the provision for credit losses for the quarter ended June 30, 2019 totaled $9,299,000, an increase of $385,000 or 4.32% from the net interest income of $8,914,000 for the same period ended June 30, 2018.

Non-interest income for the six months ended June 30, 2019 totaled $3,252,000, reflecting an increase of $1,160,000 from the $2,092,000 in non-interest income reported for the six months ended June 30, 2018.  Customer service fees, which represent the largest portion of the Company's non-interest income, totaled $1,639,000 and $1,971,000 for the six months ended June 30, 2019 and 2018, respectively.  The decrease in customer service fees is attributed to the closure of the Financial Services department during the third quarter of 2018.  On a year-over-year comparative basis, non-interest income increased primarily due to a $911,000 gain on the fair value of junior subordinated debentures (TRUPs) for the six months ended June 30, 2019, compared to a $661,000 loss for the same period ended June 30, 2018.  The change in the fair value of TRUPs reflected in non-interest income was caused by fluctuations in the LIBOR yield curve.  Non-interest income for the six months ended June 30, 2019 also includes a $114,000 loss resulting from the dissolution of the USB Real Estate Investment Trust (REIT) which was completed in February 2019.  Non-interest income for the six months ended June 30, 2018 includes a $171,000 gain recorded on the death benefit proceeds of bank-owned life insurance.

Non-interest income for the quarter ended June 30, 2019 totaled $1,729,000, reflecting an increase of $560,000 from the $1,169,000 in non-interest income reported for the quarter ended June 30, 2018.  The increase during the period was primarily due to the recording of a $497,000 gain on the fair value of TRUPs for the quarter ended June 30, 2019, as compared to a $192,000 loss for the quarter ended June 30, 2018. The change in the fair value of junior subordinated debentures (TRUPs) reflected in non-interest income was primarily caused by fluctuations in the LIBOR yield curve. Customer service fees totaled $830,000 for the quarter ended June 30, 2019, as compared to $1,020,000 for the quarter ended June 30, 2018.  The decrease is partially attributed to the closing of the Financial Services department.

For the six months ended June 30, 2019, non-interest expense totaled $10,609,000, an increase of $291,000 compared to $10,318,000 for the six months ended June 30, 2018.  On a year-over-year comparative basis, non-interest expense increased primarily due to increases of $417,000 in professional fees, $40,000 in data processing, and $175,000 in other expense, partially offset by a decrease of $439,000 in salaries and employee benefits. The increase in professional fees is mainly attributed to an increase in legal fees, the increase in data processing is primarily due to additional service fees, and the increase in other expenses was attributed to workman's compensation insurance expense. The decrease in salary and employee benefits is attributed to lower equity award expense. Non-interest expense for the six months ended June 30, 2018 includes a $121,000 recovery of workman's compensation insurance expense.

Non-interest expense totaled $5,262,000 for the quarter ended June 30, 2019, an decrease of $56,000 as compared to $5,318,000 reported for the quarter ended June 30, 2018. On a quarter-over-quarter comparative basis, non-interest expense decreased primarily due to decreases in salary and employee benefits as a result of lower equity award expenses, partially offset by increases in data processing expenses and professional fees.

The Company recorded an income tax provision of $3,292,000 for the six months ended June 30, 2019, compared to $2,653,000 for the same period in 2018. The effective tax rate for the six months ended June 30, 2019 was 28.89%, compared to 28.83% for the six months ended June 30, 2018. For the quarter ended June 30, 2019, the Company recorded a tax provision of $1,669,000, compared to a provision of $1,373,000 for the same period in 2018.

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, recovery of provision for credit losses, and gain on sale of other real estate owned (OREO). As such, Core Net Income would have been $7,457,000 for the six months ended June 30, 2019, an increase of approximately 23% compared to net income of $6,085,000 for the same period in 2018. Management believes that financial results are more comparative excluding the impact of such non-core items.

Balance Sheet Review

Total assets increased $73,435,000, or 7.87%, for the six months ended June 30, 2019, due primarily to increases of $87,998,000 in overnight funds held at the Federal Reserve. This increase is partially reflective of the increase of $65,272,000 in deposits during the first six months of 2019.  Loan balances decreased by $14,512,000 for the six months ended June 30, 2019 and investment securities decreased by $6,453,000. Unfunded loan commitments increased $32,191,000 to $208,544,000 during the first six months of 2019. With the adoption of ASU 2016-02, effective January 1, 2019, the Company began to recognize an operating lease right-of-use asset and operating lease liability.  At June 30, 2019, the operating lease right-of-use was $3,836,000 and the operating lease liability was $3,938,000.

Total deposits increased $65,272,000, or 8.10%, to $870,915,000 during the six months ended June 30, 2019.  This increase was due to an increase of $66,199,000 in NOW, money market, and savings accounts and an increase of $11,452,000 in noninterest bearing deposits, partially offset by a a decrease of $12,379,000 in time deposits.  Total money market and savings accounts increased 15.38% to $496,690,000 at June 30, 2019, compared to $430,491,000 at December 31, 2018.  Noninterest bearing deposits increased 3.91% to $304,172,000 at June 30, 2019, compared to $292,720,000 at December 31, 2018. 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 $77,651,000.

Shareholders' equity at June 30, 2019 was $113,338,000, up $4,098,000 from shareholders' equity of $109,240,000 at December 31, 2018. The increase in equity was a result of net earnings for the period, partially offset by cash dividends.

The Board of Directors of United Security Bancshares declared a cash dividend on common stock of $0.11 per share on June 25, 2019. The dividend will be payable on July 18, 2019, to shareholders of record as of July 8, 2019. The Board of Directors of United Security Bancshares declared a cash dividend on common stock of $0.11 per share on March 26, 2019. The dividend was payable on April 17, 2019, to shareholders of record as of April 8, 2019. 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 $10,000 for the six months ended June 30, 2019, compared to a recovery of provision of $1,325,000 for the six months ended June 30, 2018.  Net loan recoveries totaled $47,000 for the six months ended June 30, 2019, as compared to net recoveries of $483,000 for the six months ended June 30, 2018. The Company recorded a provision for credit loss of $4,000 for the quarter ended June 30, 2019, compared to a recovery of provision for credit losses of $1,136,000 for the quarter ended June 30, 2018.  Net loan recoveries totaled $31,000 for the quarter ended June 30, 2019, as compared to net loan recoveries of $445,000 for the quarter ended June 30, 2018.

The Company's allowance for loan loss totaled 1.48% of the loan portfolio at June 30, 2019, compared to 1.43% at December 31, 2018. In determining the adequacy of the allowance for loan losses, the judgment of the Company's management is a significant factor. Management considers the allowance for credit losses at June 30, 2019 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 $461,000 between December 31, 2018 and June 30, 2019 to $21,168,000.  Nonperforming assets as a percentage of total assets decreased from 2.32% at December 31, 2018 to 2.10% at June 30, 2019.  The decrease in nonperforming assets is mainly attributed to decreases in nonaccrual loans and restructured loans. Nonaccrual loans decreased $415,000 between December 31, 2018 and June 30, 2019 to $11,637,000. Restructured loans decreased $876,000 between December 31, 2018 and June 30, 2019. OREO totaled $5,745,000 at June 30, 2019 and December 31, 2018.

About United Security Bancshares

United Security Bancshares (NASDAQ: UBFO) is the holding company for United Security Bank, which was founded in 1987. United Security Bank is headquartered in Fresno and operates 11 full-service branch offices in Fresno, Bakersfield, Campbell, Caruthers, Coalinga, Firebaugh, Oakhurst, San Joaquin, and Taft.  Additionally, United Security Bank operates Commercial Real Estate Construction, Commercial Lending, and Consumer Lending departments.  For more information, please visit www.unitedsecuritybank.com.

Non-GAAP Financial Measures

This press release and the accompanying financial tables contain a non-GAAP financial measure (Net Income before Non-Core) within the meaning of the Securities and Exchange Commission's Regulation G. In the accompanying financial tables, the Company has provided a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure. The Company's management believes that this non-GAAP financial measure provides useful information about the Company's results of operations and/or financial position to both investors and management. The Company provides this non-GAAP financial measure to investors to assist them in performing their analysis of its historical operating results. The non-GAAP financial measure shows the Company's operating results before consideration of certain adjustments and, consequently, this non-GAAP financial measure should not be construed as an alternative to net income (loss) as an indicator of the Company's operating performance, as determined in accordance with GAAP. The Company may calculate this non-GAAP financial measure differently than other companies.

Forward-Looking Statements

This news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Company intends such statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." Forward-looking statements are based on management's knowledge and belief as of today and are not guarantees of future performance, nor should they be relied upon as representing management's views as of any subsequent date. Forward-looking statements are subject to risks and uncertainties and actual results may differ materially from those presented.  Factors that might cause such differences, some of which are beyond the Company's ability to control or predict, include, but are not limited to: (1) changes in general economic and financial market conditions, either nationally or locally, (2) changes in interest rates, (3) changes in banking laws or regulations, (4) increased competition in the Company's market, impacting the ability to execute its business plans, (5) loss of key personnel, (6) unanticipated credit losses, (7) earthquakes or other natural disasters impacting the local economy and/or the condition of real estate collateral, (8) the impact of technological changes and the ability to develop and maintain secure and reliable electronic systems, and (9) 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, 2018, and particularly the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations."  Readers should carefully review all disclosures the Company files from time to time with the Securities and Exchange Commission.

United Security Bancshares

Consolidated Balance Sheets (unaudited)

(in thousands)


June 30, 2019


December 31, 2018

Assets




Cash and non-interest-bearing deposits in other banks

$

30,074



$

28,949


Due from Federal Reserve Bank ("FRB")

279,386



191,388


Cash and cash equivalents

309,460



220,337


Investment securities (at fair value)




Available for sale ("AFS") securities

59,863



66,426


Marketable equity securities

3,769



3,659


Total investment securities

63,632



70,085


Loans

573,421



587,933


Unearned fees and unamortized loan origination costs - net

(611)



(119)


Allowance for credit losses

(8,452)



(8,395)


Net loans

564,358



579,419


Premises and equipment - net

9,529



9,837


Accrued interest receivable

10,314



8,341


Other real estate owned

5,745



5,745


Goodwill

4,488



4,488


Deferred tax assets - net

3,095



3,174


Cash surrender value of life insurance

20,535



20,244


Operating lease right-of-use assets

3,836




Other assets

11,501



11,388


Total assets

$

1,006,493



$

933,058






Liabilities and Shareholders' Equity




Deposits




Non-interest-bearing

$

304,172



$

292,720


Interest-bearing

566,743



512,923


Total deposits

870,915



805,643






Accrued interest payable

77



57


Operating lease liabilities

3,938




Other liabilities

7,729



7,963


Junior subordinated debentures (at fair value)

10,496



10,155


Total liabilities

893,155



823,818






Shareholders' Equity




Common stock, no par value; 20,000,000 shares authorized; issued and outstanding: 16,953,744 at June 30, 2019 and 16,946,622 at December 31, 2018

58,818



58,624


Retained earnings

54,312



49,942


Accumulated other comprehensive income

208



674


Total shareholders' equity

113,338



109,240


Total liabilities and shareholders' equity

$

1,006,493



$

933,058


 

United Security Bancshares

Consolidated Statements of Income (unaudited)

(in thousands)


Three Months Ended June 30,


Six Months Ended June 30,


2019


2018


2019


2018

Interest Income:








Interest and fees on loans

$

8,443



$

7,491



$

17,085



$

15,717


Interest on investment securities

444



265



921



457


Interest on deposits in FRB

1,424



681



2,722



1,065


Total interest income

10,311



8,437



20,728



17,239










Interest Expense:








Interest on deposits

890



550



1,724



937


Interest on other borrowed funds

118



109



241



199


Total interest expense

1,008



659



1,965



1,136


Net Interest Income

9,303



7,778



18,763



16,103


Provision (Recovery of Provision) for Credit Losses

4



(1,136)



10



(1,325)


Net Interest Income after Provision (Recovery of Provision) for Credit Losses

9,299



8,914



18,753



17,428










Noninterest Income:








Customer service fees

830



1,020



1,639



1,971


Increase in cash surrender value of bank-owned life insurance

147



132



292



257


Gain (loss) on fair value of marketable equity securities

53



(18)



110



(78)


Gain on proceeds from bank-owned life insurance







171


Gain (loss) on fair value of junior subordinated debentures

497



(192)



911



(661)


Loss on dissolution of real estate investment trust

(5)





(114)




Gain on sale of assets

6



29



6



29


Other

201



198



408



403


Total noninterest income

1,729



1,169



3,252



2,092










Noninterest Expense:








Salaries and employee benefits

2,760



3,010



5,532



5,971


Occupancy expense

808



834



1,621



1,599


Data processing

144



99



251



211


Professional fees

746



614



1,559



1,142


Regulatory assessments

83



78



176



161


Director fees

95



81



186



162


Correspondent bank service charges

14



17



28



34


Loss on California tax credit partnership



5





9


Net cost on operation and sale of OREO

87



49



152



100


Other

525



531



1,104



929


Total noninterest expense

5,262



5,318



10,609



10,318










Income Before Provision for Taxes

5,766



4,765



11,396



9,202


Provision for Taxes on Income

1,669



1,373



3,292



2,653


Net Income

$

4,097



$

3,392



$

8,104



$

6,549










Basic earnings per common share

$

0.24



$

0.20



$

0.48



$

0.39


Diluted earnings per common share

$

0.24



$

0.20



$

0.48



$

0.39


Weighted average basic shares for EPS

16,950,564



16,899,968



16,948,810



16,895,135


Weighted average diluted shares for EPS

16,981,705



16,957,282



16,977,224



16,935,911


 

United Security Bancshares

Average Balances and Rates (unaudited)

(in thousands)

Three Months Ended June 30,


Six Months Ended June 30,


2019


2018


2019


2018

Average Balances:








Loans (1)

$

568,600



$

576,670



$

573,436



$

590,905


Investment securities – taxable

65,268



49,752



66,772



47,381


Interest-bearing deposits in FRB

238,898



148,441



227,335



124,215


Total interest-earning assets

872,766



774,863



867,543



762,501


Allowance for credit losses

(8,442)



(9,291)



(8,449)



(9,364)


Cash and due from banks

29,232



27,067



28,793



26,906


Other real estate owned

5,745



5,683



5,745



5,745


Other non-earning assets

61,174



53,944



60,434



53,855


Total average assets

$

960,475



$

852,266



$

954,066



$

839,643










Interest-bearing deposits

$

522,308



$

442,797



$

522,382



$

422,008


Junior subordinated debentures

10,378



9,493



10,235



9,641


Total interest-bearing liabilities

532,686



452,290



532,617



431,649


Non-interest-bearing deposits

305,211



290,490



300,035



297,712


Other liabilities

9,495



5,485



9,262



6,199


Total liabilities

847,392



748,265



841,914



735,560


Total equity

113,083



104,001



112,152



104,083


Total liabilities and equity

$

960,475



$

852,266



$

954,066



$

839,643










Average Rates:








Loans (1)

5.96

%


5.21

%


6.01

%


5.36

%

Investment securities- taxable

2.73

%


2.14

%


2.78

%


1.95

%

Interest-bearing deposits in FRB

2.39

%


1.84

%


2.41

%


1.73

%

Earning assets

4.74

%


4.37

%


4.82

%


4.56

%

Interest bearing deposits

0.68

%


0.50

%


0.67

%


0.45

%

Total deposits

0.43

%


0.30

%


0.42

%


0.26

%

Junior subordinated debentures

4.56

%


4.61

%


4.75

%


4.16

%

Total interest-bearing liabilities

0.76

%


0.58

%


0.74

%


0.53

%

Net interest margin (2)

4.28

%


4.03

%


4.36

%


4.26

%



(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, 2019


March 31, 2019


December 31, 2018


September 30, 2018


June 30, 2018

Cash and cash equivalents

$

309,460



$

260,701



$

220,337



$

207,300



$

191,128


Investment securities

63,632



66,604



70,085



65,727



60,383


Loans

572,810



579,617



587,814



577,598



574,351


Allowance for credit losses

(8,452)



(8,417)



(8,395)



(8,798)



(8,425)


Net loans

564,358



571,200



579,419



568,800



565,926


Other assets

69,043



65,535



63,217



62,201



62,031


Total assets

$

1,006,493



$

964,040



$

933,058



$

904,028



$

879,468












Non-interest-bearing

$

304,172



$

300,476



$

292,720



$

315,213



$

281,686


Interest-bearing

566,743



531,101



512,923



463,670



475,277


Total deposits

870,915



831,577



805,643



778,883



756,963


Other liabilities

22,240



21,270



18,175



18,099



17,289


Total liabilities

893,155



852,847



823,818



796,982



774,252


Total shareholders' equity

113,338



111,193



109,240



107,046



105,216


Total liabilities and shareholder's equity

$

1,006,493



$

964,040



$

933,058



$

904,028



$

879,468


 

United Security Bancshares

Condensed - Consolidated Statements of Income (unaudited)

(in thousands)

For the Quarters Ended:


June 30, 2019


March 31, 2019


December 31, 2018


September 30, 2018


June 30, 2018

Total interest income

$

10,311



$

10,417



$

9,821



$

9,554



$

8,437


Total interest expense

1,008



957



876



691



659


Net interest income

9,303



9,460



8,945



8,863



7,778


Provision (recovery of provision) for credit losses

4



6



(65)



(373)



(1,136)


Net interest income after provision (recovery of provision) for credit losses

9,299



9,454



9,010



9,236



8,914












Total non-interest income

1,729



1,523



1,665



849



1,169


Total non-interest expense

5,262



5,347



5,473



5,143



5,318


Income before provision for taxes

5,766



5,630



5,202



4,942



4,765


Provision for taxes on income

1,669



1,623



1,254



1,424



1,373


Net income

$

4,097



$

4,007



$

3,948



$

3,518



$

3,392


 

United Security Bancshares

Nonperforming Assets (unaudited)

(dollars in thousands)


June 30, 2019


December 31, 2018

Commercial and industrial

$

75



$


Real estate - mortgage



389


RE construction & development

11,562



11,663


Total nonaccrual loans

$

11,637



$

12,052






Loans past due 90 days and still accruing

341




Restructured loans

3,445



3,832


Total nonperforming loans

$

15,423



$

15,884


Other real estate owned

5,745



5,745


Total nonperforming assets

$

21,168



$

21,629






Nonperforming assets to total gross loans

2.69

%


2.70

%

Nonperforming assets to total assets

2.10

%


2.32

%

Allowance for credit losses to nonperforming loans

54.80

%


52.85

%

 

United Security Bancshares

Selected Financial Data (unaudited)

(dollars in thousands, except per share amounts)


Three Months Ended June 30,


Six Months Ended June 30,


2019


2018


2019


2018









Return on average assets

1.71

%


1.58

%


1.71

%


1.57

%

Return on average equity

14.53

%


12.95

%


14.57

%


12.69

%

Net recoveries to average loans

(0.02)

%


(0.31)

%


(0.02)

%


(0.16)

%










June 30, 2019


December 31, 2018





Shares outstanding - period end

16,953,744



16,946,622






Book value per share

$6.69



$6.45






Efficiency ratio (1)

48.19

%


54.34

%





Total impaired loans

$18,054



$18,683






Net loan to deposit ratio

64.80

%


71.92

%





Allowance for credit losses to total loans

1.48

%


1.43

%





Total capital to risk weighted assets








Company

18.15

%


17.80

%





Bank

18.04

%


17.70

%





Tier 1 capital to risk-weighted assets








Company

16.90

%


16.55

%





Bank

16.79

%


16.45

%





Common equity tier 1 capital to risk-weighted assets








Company

15.47

%


15.15

%





Bank

16.79

%


16.45

%





Tier 1 capital to adjusted average assets (leverage)








Company

12.43

%


12.15

%





Bank

12.33

%


12.16

%







(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,







2019


2018


Change $


Change %

Net income


$

8,104



$

6,549



$

1,555



23.74

%










TRUPs (1) fair value adjustment gain (loss)


911



(661)






Reversal of provision for credit losses (2)




1,315








911



654















Income tax effect


264



190






Non-core items net of taxes


647



464















Non-GAAP core net income


$

7,457



$

6,085



$

1,372



22.55

%



(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)

A reversal of provision for credit losses is not part of Non-GAAP Core Income. This reversal from the allowance for credit losses was in excess of the calculated reserve for the period. The recovery of provision for credit losses of $1,325,000 for the six months ended June 30, 2018, within the Consolidated Statements of Income, includes this reversal of provision for credit losses of $1,315,000 and a provision for overdrafts of $10,000.  For the six months ended June 30, 2019, there was no reversal from the allowance for credit losses in excess of the calculated reserve for the period. The provision for credit losses of $10,000, as reported within the Consolidated Statements of Income, represents the provision for overdrafts.

 

Cision View original content:http://www.prnewswire.com/news-releases/united-security-bancshares-reports-2nd-quarter-net-income-of-4-1-million-300887017.html

SOURCE United Security Bancshares


Source: United Security Bancshares