8-K

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549FORM 8-KCURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934



Date of Report (Date of earliest event reported):  May 6, 2013

UNITED SECURITY BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

Delaware	0-14549	63-0843362
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)

131 West Front Street, P.O. Box 249, Thomasville, Alabama 36784
(Address of principal executive offices, including zip code)

(334) 636-5424
(Registrant’s telephone number, including area code)

N/A
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On May 6, 2013, United Security Bancshares, Inc. issued a press release announcing financial results for the first quarter ended March 31, 2013.  The press release is attached as Exhibit 99.1 to this Form 8-K and is furnished to, but not filed with, the Commission.  

Item 9.01 Financial Statements and Exhibits.

(d)	Exhibits
	Exhibit Number	Exhibit
	99.1	Press Release dated May 6, 2013

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		UNITED SECURITY BANCSHARES, INC.
			By:	/s/ Robert D. Steen
			Name:	Robert D. Steen
				Vice President, Treasurer and Assistant Secretary,
				Chief Financial Officer and Principal Accounting Officer
Dated:	May 6, 2013

INDEX TO EXHIBITS

Exhibit Number	Exhibit
99.1	Press Release dated May 6, 2013*

*This exhibit is furnished to, but not filed with, the Commission by inclusion herein.

EX-99.1

Exhibit 99.1

United Security Bancshares, Inc. Reports Improved First Quarter Results

Net Income Rises to $886,000 in First Quarter

THOMASVILLE, Ala.--(BUSINESS WIRE)--May 6, 2013--United Security Bancshares, Inc. (NASDAQ: USBI) today reported an increase in net income for the first quarter ended March 31, 2013, compared with the first quarter of 2012. Net income rose to $886,000, or $0.15 per diluted share, for the first quarter ended March 31, 2013, compared with a net loss of $(1.2) million, or $(0.21) per diluted share, for the first quarter of 2012.

“We are pleased with United Security’s solid recovery in earnings over the past year and our progress in reducing non-performing assets,” stated James F. House, President and CEO of United Security Bancshares, Inc. “This was our fourth consecutive quarter of positive earnings, third consecutive quarter of reducing other real estate owned (OREO) and second consecutive quarter of reducing non-performing assets. We are pleased with the improvement in our asset quality over the past year, and this has been a key driver in our improved earnings performance.”

“We reduced non-performing assets 25% from the highs reached last year. We have reduced OREO, and our non-accrual loans are down over $10 million since the peak in 2012. Our charge-offs and write-downs of OREO are also down substantially from the first quarter of last year. We are making noticeable progress in improving our asset quality and remain focused on resolving problem loans and selling OREO to improve our earnings potential.”

“We expect that our major challenge in 2013 will be adding quality loans to replace loans that will pay off this year. Loan demand remains soft in many of our markets due to weak demand for commercial loans as well as residential and commercial real estate loans, which historically have been primary drivers for new loans. We are fortunate to have weathered the recession and emerge with a strong capital base to support our future growth as the economy improves,” continued Mr. House.

First Quarter Results

Net income rose to $886,000, or $0.15 per diluted share, for the first quarter of 2013, compared with a net loss of $(1.2) million, or $(0.21) per diluted share, for the first quarter of 2012.

“Our improved profitability over the past year has strengthened our capital ratios. We maintained our ‘well capitalized’ rating, the highest regulatory rating, throughout the recession without any assistance from the Federal government,” stated Mr. House. “First quarter 2013 total risk-based capital rose to 18.1% for the holding company and 18.2% for First United Security Bank, compared with the regulatory requirement of 10.0% for a well-capitalized institution and the minimum regulatory requirement of 8.0%. Tier 1 risk-based capital increased to 16.8% for the holding company and 16.9% for the bank, both measures significantly above the regulatory requirement of 6.0% for a well-capitalized institution and the minimum regulatory requirement of 4.0%. Also, the Tier 1 leverage ratio increased to 10.7% for both the holding company and the bank.”

Interest income totaled $8.6 million for the quarter ended March 31, 2013, compared with $10.0 million for the quarter ended March 31, 2012. Net interest margin improved to 6.1%, compared with 6.0% in the first quarter of 2012. The increase in net interest margin was due primarily to lower cost of funds compared with the first quarter of the prior year.

Net loans declined to $321.0 million in the first quarter of 2013, compared with $337.4 million at December 31, 2012. The decrease in net loans was due to loan payoffs and write-downs outpacing new loan production. An overall weak economy in the bank’s markets, primarily centered in the real estate sector, has been a significant factor in lower loan demand over the past year.

Interest expense declined 46% to $789,000 in the first quarter of 2013, compared with $1.5 million in the first quarter of 2012. The decline in interest expense was due primarily to lower average rates paid on interest bearing deposits.

Provision for loan losses declined to $506,000 in the first quarter of 2013, or 0.6% of annualized average loans, compared with $2.2 million, or 3.8% of annualized average loans, in the first quarter of 2012. Net charge-offs declined to $3.0 million in the first quarter of 2013, compared with $3.7 million in the first quarter of 2012.

Total non-interest income increased to $1.6 million in the first quarter of 2013, compared with $1.3 million in the first quarter of the prior year. The increase was due primarily to higher other income that included a $484,000 prepayment penalty from the early payoff of a mortgage backed pool, partially offset by lower service and other charges on deposit accounts and credit life insurance income.

Non-interest expense declined to $7.7 million in the first quarter of 2013, compared with $9.8 million in the first quarter of 2012. The decrease in non-interest expense resulted primarily from a $2.4 million decrease in total expenses related to OREO compared with the prior year’s first quarter. Impairment costs for OREO declined 93% to $197,000 in the first quarter of 2013, compared with $2.8 million in the first quarter of 2012. OREO totaled $12.4 million at March 31, 2013, a 15.4% decline from $14.6 million at March 31, 2012, representing the third consecutive quarterly decrease in OREO.

About United Security Bancshares, Inc.

United Security Bancshares, Inc. is a bank holding company that operates nineteen banking offices in Alabama through First United Security Bank. In addition, the Company’s operations include Acceptance Loan Company, Inc., a consumer loan company, and FUSB Reinsurance, Inc., an underwriter of credit life and credit accident and health insurance policies sold to the Bank’s and ALC’s consumer loan customers. The Company’s stock is traded on the Nasdaq Capital Market under the symbol “USBI.”

Forward-Looking Statements

This press release contains forward-looking statements, as defined by federal securities laws. Statements contained in this press release that are not historical facts are forward-looking statements. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. USBI undertakes no obligation to update these statements following the date of this press release, except as required by law. In addition, USBI, through its senior management, may make from time to time forward-looking public statements concerning the matters described herein. Such forward-looking statements are necessarily estimates reflecting the best judgment of USBI’s senior management based upon current information and involve a number of risks and uncertainties. Certain factors that could affect the accuracy of such forward-looking statements are identified in the public filings made by USBI with the Securities and Exchange Commission, and forward-looking statements contained in this press release or in other public statements of USBI or its senior management should be considered in light of those factors. Specifically, with respect to statements relating to loan demand, growth and earnings potential and the adequacy of the allowance for loan losses for USBI, these factors include, but are not limited to, the rate of growth (or lack thereof) in the economy, the relative strength and weakness in the consumer and commercial credit sectors and in the real estate markets and collateral values. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements.

UNITED SECURITY BANCSHARES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (In Thousands of Dollars, Except Per Share Data)
	March 31,			December 31,
	2013			2012
	(Unaudited)
ASSETS
Cash and Due from Banks	$	9,364		$	12,181
Interest-Bearing Deposits in Other Banks		59,235			41,945
Total Cash and Cash Equivalents		68,599			54,126
Federal Funds Sold		5,000			5,000
Investment Securities Available-for-Sale, at fair value		92,396			92,614
Investment Securities Held-to-Maturity, at amortized cost		26,166			21,136
Federal Home Loan Bank Stock, at cost		681			936
Loans, net of allowance for loan losses of $16,793 and $19,278, respectively		321,007			337,400
Premises and Equipment, net		8,784			8,903
Cash Surrender Value of Bank-Owned Life Insurance		13,392			13,303
Accrued Interest Receivable		2,701			3,101
Investment in Limited Partnerships		836			836
Other Real Estate Owned		12,382			13,286
Other Assets		12,695			16,492
Total Assets	$	564,639		$	567,133
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits	$	486,782		$	489,034
Accrued Interest Expense		291			413
Other Liabilities		8,165			8,401
Short-Term Borrowings		399			638
Total Liabilities		495,637			498,486
Commitments and Contingencies
Shareholders’ Equity:
Common Stock, par value $0.01 per share, 10,000,000 shares authorized; 7,327,560 shares issued; 6,023,622 shares outstanding		73			73
Surplus		9,284			9,284
Accumulated Other Comprehensive Income, net of tax		2,608			3,139
Retained Earnings		78,173			77,287
Less Treasury Stock: 1,303,938 shares at cost		(21,123	)		(21,123	)
Noncontrolling Interest		(13	)		(13	)
Total Shareholders’ Equity		69,002			68,647
Total Liabilities and Shareholders’ Equity	$	564,639		$	567,133

UNITED SECURITY BANCSHARES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands of Dollars, Except Per Share Data)
	Three Months Ended
	March 31,
	2013		2012
	(Unaudited)
INTEREST INCOME:
Interest and Fees on Loans	$	7,910	$	9,083
Interest on Investment Securities		684		927
Total Interest Income		8,594		10,010
INTEREST EXPENSE:
Interest on Deposits		787		1,375
Interest on Borrowings		2		85
Total Interest Expense		789		1,460
NET INTEREST INCOME		7,805		8,550
PROVISION FOR LOAN LOSSES		506		2,215
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		7,299		6,335
NON-INTEREST INCOME:
Service and Other Charges on Deposit Accounts		590		628
Credit Life Insurance Income		110		119
Other Income		923		527
Total Non-Interest Income		1,623		1,274
NON-INTEREST EXPENSE:
Salaries and Employee Benefits		4,012		3,764
Occupancy Expense		461		447
Furniture and Equipment Expense		283		310
Impairment on Other Real Estate		197		2,834
Loss on Sale of Other Real Estate		445		194
Other Expense		2,294		2,279
Total Non-Interest Expense		7,692		9,828
INCOME (LOSS) BEFORE INCOME TAXES		1,230		(2,219	)
PROVISION FOR (BENEFIT FROM) INCOME TAXES		344		(982	)
NET INCOME (LOSS)	$	886	$	(1,237	)
BASIC AND DILUTED NET INCOME (LOSS) PER SHARE	$	0.15	$	(0.21	)
DIVIDENDS PER SHARE	$	-	$	-

CONTACT:
United Security Bancshares, Inc.
Robert Steen, 334-636-5424