Press Release

United Security Bancshares Reports 1st Quarter Net Income of $2.8 Million

Company Release - 4/15/2020 5:30 PM ET

FRESNO, Calif.--(BUSINESS WIRE)-- United Security Bancshares (Nasdaq: UBFO) today announced its unaudited financial results for the quarter ended March 31, 2020. The Company recognized net income of $2,754,000 for the quarter ended March 31, 2020, a decrease of 31% compared to the net income of $4,007,000 recognized for the quarter ended March 31, 2019. Basic and diluted earnings per share decreased to $0.16 for the quarter ended March 31, 2020, as compared to basic and diluted earnings per share of $0.24 for the quarter ended March 31, 2019.

First Quarter 2020 Highlights (at or for the quarter ended March 31, 2020, except where noted)

  • Net income for the quarter decreased $1,253,000 or 31.27% to $2,754,000, compared to $4,007,000 for the quarter ended March 31, 2019. The decrease is a result of a reduction in interest income related to a lower rate environment and a provision for loan losses, partially offset by a gain on the fair value of junior subordinated debt.
  • The allowance for credit losses as a percentage of gross loans increased to 1.46%, compared to 1.33% at December 31, 2019. The provision for credit losses totaled $1,707,000, compared to $6,000 for the quarter ended March 31, 2019. The increase in provision reflects an expectation of significant deterioration in the macro-economic environment as a result of the impact of COVID-19, net charge-offs, and loan growth.
  • The gain on the fair value of junior subordinated debt was $1,498,000 for the quarter, compared to $414,000 for the quarter ended March 31, 2019.
  • Total loans, net of unearned fees, increased 4.55% to $623,686,000, compared to $596,554,000 at December 31, 2019.
  • Total deposits increased to $840,437,000, compared to $818,362,000 atDecember 31, 2019.
  • Book value per share increased to $6.92, compared to $6.83 at December 31, 2019.
  • Net interest margin decreased to 4.00% from 4.45% for the quarter ended March 31, 2019.
  • Annualized average cost of deposits decreased to 0.33% from 0.41% for the quarter ended March 31, 2019.
  • Net charge-offs totaled $495,000, compared to net recoveries of $16,000 for the quarter ended March 31, 2019.
  • Capital positions remain strong with a 12.77% Tier 1 Leverage Ratio, a 14.92% Common Equity Tier 1 Ratio; a 15.99% Tier 1 Risk-Based Capital Ratio; and a 17.24% Total Risk-Based Capital Ratio.
  • Annualized return on average assets ("ROAA") was 1.19%, compared to 1.71% for the quarter ended March 31, 2019.
  • Annualized return on average equity ("ROAE") was 9.65%, compared to 14.61% for the quarter ended March 31, 2019.

Dennis Woods, President and Chief Executive Officer, stated: "Although we saw growth in both our loan and deposit portfolios during this first quarter, we cannot predict the full impact COVID-19 will have on our markets and economy. Our strong credit quality, ample liquidity, and capital level provide a solid foundation as we navigate through these uncertain times."

Results of Operations

ROAE for the quarter ended March 31, 2020 was 9.65%, compared to 14.61% for the quarter ended March 31, 2019. ROAA was 1.19% for the quarter ended March 31, 2020, compared to 1.71% for the quarter ended March 31, 2019. The annualized average cost of deposits was 0.33% for the quarter ended March 31, 2020, a decrease from 0.41% for quarter ended March 31, 2019. Average interest-bearing deposits decreased 4.10% between the quarters ended March 31, 2019 and 2020 to an average balance of $501,026,000.

Net interest income after the provision for credit losses for the quarter ended March 31, 2020 totaled $6,873,000, a decrease of $2,581,000, or 27.30%, from $9,454,000 for the same period ended March 31, 2019. Net interest income after the provision for credit losses includes a provision for credit losses of $1,707,000 for the quarter ended March 31, 2020, compared to a provision of $6,000 for the quarter ended March 31, 2019. During the first quarter of 2020, the Federal Reserve cut its benchmark rate by 1.50%. As a result, the Prime rate decreased from 4.75% to 3.25%. A majority of the Company's floating rate loans and investments are indexed to the Prime rate. The Company's net interest margin decreased from 4.45% for the quarter ended March 31, 2019 to 4.00% for the quarter ended March 31, 2020. The decrease was the result of decreases in yields on overnight fed funds, loans, and investment securities, partially offset by a decrease in interest expense. The yield on loans decreased from 6.06% for the quarter ended March 31, 2019 to 5.57% for the quarter ended March 31, 2020. The yield on interest bearing liabilities decreased from 0.73% for the quarter ended March 31, 2019 to 0.60% for the quarter ended March 31, 2020.

Non-interest income for the quarter ended March 31, 2020 totaled $2,580,000, reflecting an increase of $1,057,000 from the $1,523,000 in non-interest income reported for the quarter ended March 31, 2019. Customer service fees totaled $728,000 and $809,000 for the quarter ended March 31, 2020 and 2019, respectively. On a year-over-year comparative basis, non-interest income increased primarily due to a $1,498,000 gain on the fair value of junior subordinated debentures (TRUPs) for the quarter ended March 31, 2020, compared to a $414,000 gain for the same period ended March 31, 2019. 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 quarter ended March 31, 2019 includes a $109,000 loss resulting from the dissolution of the USB Real Estate Investment Trust (REIT) which was completed in February 2019.

For the quarter ended March 31, 2020, non-interest expense totaled $5,591,000, an increase of $244,000 compared to $5,347,000 for the quarter ended March 31, 2019. On a year-over-year comparative basis, non-interest expense increased primarily due to increases of $223,000 in salaries and employee benefits, $88,000 in expenses related to other real estate owned, and $40,000 in occupancy expense, partially offset by decreases of $111,000 in professional fees. Salary and employee benefits expense for the quarter ended March 31, 2019 includes a $231,000 reversal of bonus expense. Included in net cost on operation and sale of OREO for the quarter ended March 31, 2020 is a $113,000 loss on sale. The decrease in professional fees is attributed to a reduction in legal expense.

The efficiency ratio for the quarter ended March 31, 2020 deteriorated to 50.10%, compared to 48.68% for the quarter ended March 31, 2019. The decline is attributed to a reduction in net interest income as a result of the balance sheet repricing in a lower rate environment, partially offset by an increase in gain on the fair value of TRUPs.

The Company recorded an income tax provision of $1,108,000 for the quarter ended March 31, 2020, compared to $1,623,000 for the same period in 2019. The effective tax rate for the quarter ended March 31, 2020 was 28.69%, compared to 28.83% for the quarter ended March 31, 2019.

Provided at the end of this Press Release is a reconciliation of Core Net Income, as a non-GAAP measure, to Net Income. This reconciliation excludes Non-Core items such as the Fair Value Adjustment for TRUPs, recovery of provision for credit losses, 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 $20,327,000, or 2.12%, for the quarter ended March 31, 2020, due primarily to increases of $17,398,000 in investment securities and $26,391,000 in gross loan balances. Unfunded loan commitments increased from $197,559,000 at December 31, 2019 to $209,014,000 at March 31, 2020. OREO balances decreased from $6,753,000 at December 31, 2019 to $5,745,000 at March 31, 2020. The reduction was attributed to a $1,008,000 sale of OREO.

Total deposits increased $22,075,000, or 2.70%, to $840,437,000 during the quarter ended March 31, 2020. This increase was due to an increase of $12,217,000 in noninterest bearing deposits, $9,448,000 in NOW and money market accounts, and $4,062,000 in savings accounts, partially offset by a decrease of $3,652,000 in time deposits. In total, NOW, money market and savings accounts increased 3.06% to $454,522,000 at March 31, 2020, compared to $441,012,000 at December 31, 2019. Noninterest bearing deposits increased 3.92% to $324,167,000 at March 31, 2020, compared to $311,950,000 at December 31, 2019. As a result of the net increase, core deposits, which is made up of the balance of noninterest bearing deposits, NOW, money market, savings, and time deposits accounts less than $250,000, increased $22,897,000.

Shareholders’ equity at March 31, 2020 was $117,410,000, an increase of $1,422,000 from shareholders’ equity of $115,988,000 at December 31, 2019. The increase in equity was the result of net earnings for the period, partially offset by cash dividends. At March 31, 2020 there was accumulated other comprehensive loss of $174,000, as compared to accumulated other comprehensive loss of $632,000 at December 31, 2019. The change from December 31, 2019 to March 31, 2020 was the result of unrealized gains on junior subordinated debentures (TRUPs) caused by a change in yields during the period.

The Board of Directors of United Security Bancshares declared a cash dividend on common stock of $0.11 per share on March 24, 2020. The dividend was payable on April 15, 2020, to shareholders of record as of April 6, 2020. No assurances can be provided that future dividends will be declared and/or as to the timing of such future dividends, if any.

Credit Quality

The Company has recorded a provision for credit losses of $1,707,000 for the quarter ended March 31, 2020, compared to a provision of $6,000 for the quarter ended March 31, 2019. Net loan charge-offs totaled $495,000 for the quarter ended March 31, 2020, as compared to net recoveries of $16,000 for the quarter ended March 31, 2019. The provision recorded during the quarter is attributed to growth of the loan portfolio, net charge-offs, and uncertainty related to COVID-19. COVID-19 is precipitating an economic recession and it is unknown whether or not the economy will bounce back quickly.

The Company's allowance for loan loss totaled 1.46% of the loan portfolio at March 31, 2020, compared to 1.33% at December 31, 2019. 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 March 31, 2020 to be adequate.

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 $266,000 between December 31, 2019 and March 31, 2020 to $20,959,000. Nonperforming assets as a percentage of total assets decreased from 2.22% at December 31, 2019 to 2.14% at March 31, 2020. The decrease in nonperforming assets is primarily attributed to the reduction in OREO that occurred during the period, offset by nonaccrual loans which increased $332,000 between December 31, 2019 and March 31, 2020 to $12,029,000. Total restructured loans decreased $1,872,000 between December 31, 2019 and March 31, 2020. OREO balances decreased from $6,753,000 at December 31, 2019 to $5,745,000 at March 31, 2020.

About United Security Bancshares

United Security Bancshares (NASDAQ: UBFO) is the holding company for United Security Bank, which was founded in 1987. United Security Bank is headquartered in Fresno and operates 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) the effects of the COVID-19 pandemic, including the effects of the steps being taken to address the pandemic and their impact on the Company’s market and employees, (2) changes in general economic and financial market conditions, either nationally or locally, (3) changes in interest rates, (4) changes in banking laws or regulations, (5) increased competition in the Company's market, impacting the ability to execute its business plans, (6) loss of key personnel, (7) unanticipated credit losses, (8) earthquakes or other natural disasters impacting the local economy and/or the condition of real estate collateral, (9) the impact of technological changes and the ability to develop and maintain secure and reliable electronic systems, and (10) changes in accounting policies or procedures.

The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. For a more complete discussion of these risks and uncertainties, see the Company’s Annual Report on Form 10-K, for the year ended December 31, 2019, and particularly the section entitled "Management’s Discussion and Analysis of Financial Condition and Results of Operations." Readers should carefully review all disclosures the Company files from time to time with the Securities and Exchange Commission.

United Security Bancshares

Consolidated Balance Sheets (unaudited)

(in thousands)

 

March 31, 2020

 

December 31, 2019

Assets

 

 

 

Cash and non-interest-bearing deposits in other banks

$

28,134

 

 

$

27,291

 

Due from Federal Reserve Bank ("FRB")

171,719

 

 

191,704

 

Cash and cash equivalents

199,853

 

 

218,995

 

 

 

 

 

Investment securities (at fair value)

 

 

 

Available for sale ("AFS") securities

93,695

 

 

76,312

 

Marketable equity securities

3,791

 

 

3,776

 

Total investment securities

97,486

 

 

80,088

 

Loans

623,765

 

 

597,374

 

Unearned fees and unamortized loan origination costs - net

(79

)

 

(820

)

Allowance for credit losses

(9,120

)

 

(7,908

)

Net loans

614,566

 

 

588,646

 

 

 

 

 

Premises and equipment - net

9,279

 

 

9,380

 

Accrued interest receivable

8,285

 

 

8,208

 

Other real estate owned ("OREO")

5,745

 

 

6,753

 

Goodwill

4,488

 

 

4,488

 

Deferred tax assets - net

2,555

 

 

3,191

 

Cash surrender value of life insurance

21,086

 

 

20,955

 

Operating lease right-of-use assets

3,214

 

 

3,360

 

Other assets

10,689

 

 

12,855

 

Total assets

$

977,246

 

 

$

956,919

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

Deposits

 

 

 

Non-interest-bearing

$

324,167

 

 

$

311,950

 

Interest-bearing

516,270

 

 

506,412

 

Total deposits

840,437

 

 

818,362

 

 

 

 

 

Accrued interest payable

50

 

 

59

 

Operating lease liabilities

3,317

 

 

3,463

 

Other liabilities

7,486

 

 

8,239

 

Junior subordinated debentures (at fair value)

8,546

 

 

10,808

 

Total liabilities

859,836

 

 

840,931

 

 

 

 

 

Shareholders' Equity

 

 

 

Common stock, no par value; 20,000,000 shares authorized; issued and outstanding: 16,974,235 at March 31, 2020 and 16,973,885 at December 31, 2019

59,050

 

 

58,973

 

Retained earnings

58,534

 

 

57,647

 

Accumulated other comprehensive loss

(174

)

 

(632

)

Total shareholders' equity

117,410

 

 

115,988

 

Total liabilities and shareholders' equity

$

977,246

 

 

$

956,919

 

United Security Bancshares

Consolidated Statements of Income (unaudited)

(in thousands)

 

Three Months Ended March 31,

 

2020

 

2019

Interest Income:

 

 

 

Interest and fees on loans

$

8,346

 

$

8,642

 

Interest on investment securities

 

428

 

 

477

 

Interest on deposits in FRB

 

567

 

 

1,298

 

Total interest income

 

9,341

 

 

10,417

 

 

 

 

 

Interest Expense:

 

 

 

Interest on deposits

 

664

 

 

834

 

Interest on other borrowed funds

 

97

 

 

123

 

Total interest expense

 

761

 

 

957

 

Net Interest Income

 

8,580

 

 

9,460

 

Provision for Credit Losses

 

1,707

 

 

6

 

Net Interest Income after Provision for Credit Losses

 

6,873

 

 

9,454

 

 

 

 

 

Noninterest Income:

 

 

 

Customer service fees

 

728

 

 

809

 

Increase in cash surrender value of bank-owned life insurance

 

131

 

 

145

 

Gain on fair value of marketable equity securities

 

14

 

 

57

 

Gain on fair value of junior subordinated debentures

 

1,498

 

 

414

 

Loss on dissolution of real estate investment trust

 

 

(109

)

Other

 

209

 

 

207

 

Total noninterest income

 

2,580

 

 

1,523

 

 

 

 

 

Noninterest Expense:

 

 

 

Salaries and employee benefits

 

2,995

 

 

2,772

 

Occupancy expense

 

853

 

 

813

 

Data processing

 

112

 

 

107

 

Professional fees

 

702

 

 

813

 

Regulatory assessments

 

85

 

 

93

 

Director fees

 

94

 

 

91

 

Correspondent bank service charges

 

15

 

 

14

 

Net cost on operation and sale of OREO

 

153

 

 

65

 

Other

 

582

 

 

579

 

Total noninterest expense

 

5,591

 

 

5,347

 

 

 

 

 

Income Before Provision for Taxes

 

3,862

 

 

5,630

 

Provision for Taxes on Income

 

1,108

 

 

1,623

 

Net Income

$

2,754

 

$

4,007

 

 

 

 

 

Basic earnings per common share

$

0.16

 

$

0.24

 

Diluted earnings per common share

$

0.16

 

$

0.24

 

Weighted average basic shares for EPS

 

16,974,100

 

 

16,947,040

 

Weighted average diluted shares for EPS

 

16,994,727

 

 

16,972,630

 

United Security Bancshares

 

 

 

Average Balances and Rates (unaudited)

 

 

 

(in thousands)

Three Months Ended March 31,

 

2020

 

2019

Average Balances:

 

 

 

Loans (1)

$

603,060

 

 

$

578,326

 

Investment securities – taxable

82,101

 

 

68,293

 

Interest-bearing deposits in FRB

178,748

 

 

215,644

 

Total interest-earning assets

863,909

 

 

862,263

 

Allowance for credit losses

(7,905

)

 

(8,458

)

Cash and due from banks

29,282

 

 

28,349

 

Other real estate owned

6,628

 

 

5,745

 

Other non-earning assets

61,810

 

 

59,685

 

Total average assets

$

953,724

 

 

$

947,584

 

 

 

 

 

Interest-bearing deposits

$

501,026

 

 

$

522,457

 

Junior subordinated debentures

10,714

 

 

10,090

 

Total interest-bearing liabilities

511,740

 

 

532,547

 

 

 

 

 

Non-interest-bearing deposits

314,389

 

 

294,801

 

Other liabilities

9,679

 

 

9,025

 

Total liabilities

835,808

 

 

836,373

 

Total equity

117,916

 

 

111,211

 

Total liabilities and equity

$

953,724

 

 

$

947,584

 

 

 

 

 

Average Rates:

 

 

 

Loans (1)

5.57

%

 

6.06

%

Investment securities- taxable

2.10

%

 

2.83

%

Interest-bearing deposits in FRB

1.28

%

 

2.44

%

Earning assets

4.35

%

 

4.90

%

Interest bearing deposits

0.53

%

 

0.65

%

Total deposits

0.33

%

 

0.41

%

Junior subordinated debentures

3.64

%

 

4.94

%

Total interest-bearing liabilities

0.60

%

 

0.73

%

Net interest margin (2)

4.00

%

 

4.45

%

(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)

 

March 31, 2020

 

December 31, 2019

 

September 30, 2019

 

June 30, 2019

 

March 31, 2019

Cash and cash equivalents

$

199,853

 

 

$

218,995

 

 

$

245,943

 

 

$

309,460

 

 

$

260,701

 

Investment securities

97,486

 

 

80,088

 

 

81,651

 

 

63,632

 

 

66,604

 

Loans

623,686

 

 

596,554

 

 

569,500

 

 

572,810

 

 

579,617

 

Allowance for credit losses

(9,120

)

 

(7,908

)

 

(8,230

)

 

(8,452

)

 

(8,417

)

Net loans

614,566

 

 

588,646

 

 

561,270

 

 

564,358

 

 

571,200

 

Other assets

65,341

 

 

69,190

 

 

68,534

 

 

69,043

 

 

65,535

 

Total assets

$

977,246

 

 

$

956,919

 

 

$

957,398

 

 

$

1,006,493

 

 

$

964,040

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing

$

324,167

 

 

$

311,950

 

 

$

333,156

 

 

$

304,172

 

 

$

300,476

 

Interest-bearing

516,270

 

 

506,412

 

 

487,067

 

 

566,743

 

 

531,101

 

Total deposits

840,437

 

 

818,362

 

 

820,223

 

 

870,915

 

 

831,577

 

Other liabilities

19,399

 

 

22,569

 

 

21,965

 

 

22,240

 

 

21,270

 

Total liabilities

859,836

 

 

840,931

 

 

842,188

 

 

893,155

 

 

852,847

 

Total shareholders' equity

117,410

 

 

115,988

 

 

115,210

 

 

113,338

 

 

111,193

 

Total liabilities and shareholder's equity

$

977,246

 

 

$

956,919

 

 

$

957,398

 

 

$

1,006,493

 

 

$

964,040

 

United Security Bancshares

Condensed - Consolidated Statements of Income (unaudited)

(in thousands)

For the Quarters Ended:

 

March 31, 2020

 

December 31, 2019

 

September 30, 2019

 

June 30, 2019

 

March 31, 2019

Total interest income

$

9,341

 

 

$

9,558

 

 

$

10,417

 

 

$

10,311

 

 

$

10,417

 

Total interest expense

761

 

 

862

 

 

1,061

 

 

1,008

 

 

957

 

Net interest income

8,580

 

 

8,696

 

 

9,356

 

 

9,303

 

 

9,460

 

Provision for credit losses

1,707

 

 

5

 

 

5

 

 

4

 

 

6

 

Net interest income after provision for credit losses

6,873

 

 

8,691

 

 

9,351

 

 

9,299

 

 

9,454

 

 

 

 

 

 

 

 

 

 

 

Total non-interest income

2,580

 

 

647

 

 

1,853

 

 

1,729

 

 

1,523

 

Total non-interest expense

5,591

 

 

5,335

 

 

5,335

 

 

5,262

 

 

5,347

 

Income before provision for taxes

3,862

 

 

4,003

 

 

5,869

 

 

5,766

 

 

5,630

 

Provision for taxes on income

1,108

 

 

1,108

 

 

1,696

 

 

1,669

 

 

1,623

 

Net income

$

2,754

 

 

$

2,895

 

 

$

4,173

 

 

$

4,097

 

 

$

4,007

 

United Security Bancshares

Nonperforming Assets (unaudited)

(dollars in thousands)

 

 

 

 

March 31, 2020

 

December 31, 2019

Commercial and industrial

$

75

 

 

$

75

 

RE construction & development

11,411

 

 

11,478

 

Agricultural

543

 

 

144

 

Total nonaccrual loans

$

12,029

 

 

$

11,697

 

 

 

 

 

Loans past due 90 days and still accruing

1,061

 

 

386

 

Restructured loans

2,124

 

 

2,389

 

Total nonperforming loans

$

15,214

 

 

$

14,472

 

Other real estate owned

5,745

 

 

6,753

 

Total nonperforming assets

$

20,959

 

 

$

21,225

 

 

 

 

 

Nonperforming loans to total gross loans

2.44

%

 

2.42

%

Nonperforming assets to total assets

2.14

%

 

2.22

%

Allowance for credit losses to nonperforming loans

59.94

%

 

54.64

%

United Security Bancshares

Selected Financial Data (unaudited)

(dollars in thousands, except per share amounts)

 

 

 

Three Months Ended March 31,

 

2020

 

2019

 

 

 

 

Return on average assets

1.19

%

 

1.71

%

Return on average equity

9.65

%

 

14.61

%

Net charge-off (recoveries) to average loans

0.33

%

 

(0.01

)%

 

 

 

 

 

 

 

 

 

March 31, 2020

 

December 31, 2019

Shares outstanding - period end

16,974,235

 

 

16,973,885

 

Book value per share

$6.92

 

 

$6.83

 

Efficiency ratio (1)

50.10

%

 

49.99

%

Total impaired loans

$16,509

 

 

$17,072

 

Net loan to deposit ratio

73.12

%

 

71.93

%

Allowance for credit losses to total loans

1.46

%

 

1.33

%

Total capital to risk weighted assets

 

 

 

Company

17.24

%

 

17.98

%

Bank

17.21

%

 

17.78

%

Tier 1 capital to risk-weighted assets

 

 

 

Company

15.99

%

 

16.81

%

Bank

15.96

%

 

16.61

%

Common equity tier 1 capital to risk-weighted assets

 

 

 

Company

14.92

%

 

15.39

%

Bank

15.96

%

 

16.61

%

Tier 1 capital to adjusted average assets (leverage)

 

 

 

Company

12.77

%

 

12.82

%

Bank

12.76

%

 

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)

 

 

Three Months Ended March 31,

 

 

 

 

 

 

2020

 

2019

 

Change $

 

Change %

Net income

 

$

2,754

 

 

$

4,007

 

 

$

(1,253

)

 

(31.27

)%

 

 

 

 

 

 

 

 

 

TRUPs (1) fair value adjustment gain

 

1,498

 

 

414

 

 

 

 

 

Loss on sale of OREO

 

(113

)

 

 

 

 

 

 

 

 

1,385

 

 

414

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax effect

 

402

 

 

120

 

 

 

 

 

Non-core items net of taxes

 

983

 

 

294

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP core net income

 

$

1,771

 

 

$

3,713

 

 

$

(1,942

)

 

(52.30

)%

(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.

 

Dennis Woods, President and CEO
(559)248-4928

Source: United Security Bancshares