UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant to
Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date of Report (Date of
earliest event reported): January 28, 2016
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 January 28, 2016, United Security Bancshares, Inc. issued a press release announcing financial results for the fourth quarter and year ended December 31, 2015. 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. |
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|
Exhibit Number |
Exhibit |
|
99.1 |
Press Release dated January 28, 2016 |
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/ Thomas S. Elley |
||||
|
Name: |
Thomas S. Elley |
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Vice President, Treasurer and Assistant Secretary, |
Dated: January 28, 2016
INDEX TO EXHIBITS
Exhibit Number |
Exhibit |
99.1 |
Press Release dated January 28, 2016* |
*This exhibit is furnished to, but not filed with, the Commission by
inclusion herein.
Exhibit 99.1
United Security Bancshares, Inc. Reports Fourth Quarter and Year-End Results
Reports Fourth Quarter Loan Growth and Continued Reductions in Non-Performing Assets
THOMASVILLE, Ala.--(BUSINESS WIRE)--January 28, 2016--United Security Bancshares, Inc. (Nasdaq: USBI) today reported net income of $2.6 million, or $0.41 per diluted share, for the year ended December 31, 2015, compared to net income of $3.5 million, or $0.57 per diluted share, for the year ended December 31, 2014. Net income for the fourth quarter of 2015 totaled $441,000, or $0.07 per diluted share, compared to $720,000, or $0.12 per diluted share, for the fourth quarter of 2014.
Fourth Quarter Highlights
“We are pleased to report significant loan growth in the fourth quarter, as well as continued improvement in asset quality,” said James F. House, President and Chief Executive Officer of United Security Bancshares, Inc. “Our efforts to resolve problem assets over the past several years have resulted in reductions in non-performing assets at a faster pace than we originally expected. As a result, we have now begun to focus more effort on generating quality loans. We expect that continued progress in reducing non-performing assets, combined with focused efforts on quality commercial loan generation, will contribute to future growth in earnings.”
“Earnings in 2015 were below last year’s results due primarily to decreased loan volume at First US Bank. Although we had substantial growth in the Bank’s loan portfolio during the fourth quarter, we experienced decreases during the first three quarters of the year. A portion of these decreases resulted from the continued resolution of problem assets and the migration of loans off of the balance sheet that did not meet the Bank’s current credit standards. At this point, we believe that the Bank is well-positioned to expand its commercial loan production capabilities. We are already beginning to see increased opportunity from the Bank’s new location in downtown Tuscaloosa, and we continue to look for opportunities to expand in other markets as well. We also remain optimistic about opportunities for expanding our consumer loan portfolio through our subsidiary, Acceptance Loan Company, Inc. (“ALC”). ALC experienced consistent loan growth through 2015, ending the year with net loans of $81.7 million, an increase of 13% over December 31, 2014,” continued Mr. House.
Results of Operations
Balance Sheet Management
About United Security Bancshares, Inc.
United Security Bancshares, Inc. is a bank holding company that operates twenty banking offices in Alabama through First US 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. The Company undertakes no obligation to update these statements following the date of this press release, except as required by law. In addition, the Company, 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 the Company’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 the Company with the Securities and Exchange Commission, and forward-looking statements contained in this press release or in other public statements of the Company 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, geographic expansion and the adequacy of the allowance for loan losses for the Company, these factors include, but are not limited to, the rate of growth (or lack thereof) in the economy generally and in the Bank’s and ALC’s service areas, the availability of quality loans in the Bank’s and ALC’s service areas, 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 SELECTED FINANCIAL DATA – LINKED QUARTERS (Dollars in Thousands, Except Per Share Data) |
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Quarter Ended | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
Results of Operations: | |||||||||||||||||||||||||
Interest income | $ | 7,513 | $ | 7,328 | $ | 7,735 | $ | 7,321 | $ | 7,686 | |||||||||||||||
Interest expense | 549 | 561 | 565 | 614 | 636 | ||||||||||||||||||||
Net interest income | 6,964 | 6,767 | 7,170 | 6,707 | 7,050 | ||||||||||||||||||||
Provision (reduction in reserve) for loan losses | 415 | (78 | ) | 45 | (166 | ) | (169 | ) | |||||||||||||||||
Net interest income after provision (reduction in reserve) for loan losses |
6,549 |
6,845 | 7,125 | 6,873 | 7,219 | ||||||||||||||||||||
Non-interest income | 1,176 | 996 | 1,068 | 1,291 | 1,279 | ||||||||||||||||||||
Non-interest expense | 7,203 | 7,090 | 7,107 | 6,977 | 7,246 | ||||||||||||||||||||
Income before income taxes | 522 | 751 | 1,086 | 1,187 | 1,252 | ||||||||||||||||||||
Provision for income taxes | 81 | 207 | 312 | 351 | 532 | ||||||||||||||||||||
Net income | $ | 441 | $ | 544 | $ | 774 | $ | 836 | $ | 720 | |||||||||||||||
Per Share Data: | |||||||||||||||||||||||||
Basic net income per share | $ | 0.07 | $ | 0.09 | $ | 0.13 | $ | 0.14 | $ | 0.12 | |||||||||||||||
Diluted net income per share | $ | 0.07 | $ | 0.09 | $ | 0.12 | $ | 0.13 | $ | 0.12 | |||||||||||||||
Dividends declared | $ | 0.02 | $ | 0.02 | $ | 0.02 | $ | 0.02 | $ | 0.02 | |||||||||||||||
Period-End Balance Sheet: | |||||||||||||||||||||||||
Total assets | $ | 575,782 | $ | 548,537 | $ | 560,650 | $ | 564,882 | $ | 572,609 | |||||||||||||||
Loans, net of allowance for loan losses | 255,432 | 237,715 | 244,993 | 239,218 | 259,516 | ||||||||||||||||||||
Allowance for loan losses | 3,781 | 4,345 | 5,008 | 5,401 | 6,168 | ||||||||||||||||||||
Investment securities, net | 231,202 | 239,009 | 246,176 | 249,864 | 234,086 | ||||||||||||||||||||
Total deposits | 479,258 | 463,266 | 471,141 | 475,288 | 483,659 | ||||||||||||||||||||
Long-term debt | 5,000 | - | 5,000 | 5,000 | 5,000 | ||||||||||||||||||||
Total shareholders’ equity | 76,316 | 76,283 | 75,783 | 75,745 | 75,162 | ||||||||||||||||||||
Performance Ratios: | |||||||||||||||||||||||||
Return on average assets (annualized) | 0.31 | % | 0.39 | % | 0.55 | % | 0.59 | % | 0.50 | % | |||||||||||||||
Return on average equity (annualized) | 2.28 | % | 2.84 | % | 4.09 | % | 4.47 | % | 3.83 | % | |||||||||||||||
Asset Quality: | |||||||||||||||||||||||||
Allowance for loan losses as % of loans | 1.46 | % | 1.80 | % | 2.00 | % | 2.21 | % | 2.32 | % | |||||||||||||||
Nonperforming assets as % of total assets | 1.59 | % | 1.98 | % | 1.96 | % | 2.27 | % | 2.50 | % | |||||||||||||||
UNITED SECURITY BANCSHARES, INC. AND SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in Thousands, Except Share and Per Share Data) |
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December 31, |
December 31, |
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2015 | 2014 | |||||||||
(Unaudited) | ||||||||||
ASSETS | ||||||||||
Cash and due from banks | $ | 7,088 | $ | 9,697 | ||||||
Interest-bearing deposits in banks | 36,984 | 24,469 | ||||||||
Total cash and cash equivalents | 44,072 | 34,166 | ||||||||
Investment securities available-for-sale, at fair value | 198,843 | 204,966 | ||||||||
Investment securities held-to-maturity, at amortized cost | 32,359 | 29,120 | ||||||||
Federal Home Loan Bank stock, at cost | 1,025 | 738 | ||||||||
Loans, net of allowance for loan losses of $3,781 and $6,168, respectively | 255,432 | 259,516 | ||||||||
Premises and equipment, net | 12,084 | 9,764 | ||||||||
Cash surrender value of bank-owned life insurance | 14,292 | 13,975 | ||||||||
Accrued interest receivable | 1,833 | 2,235 | ||||||||
Other real estate owned | 6,038 | 7,735 | ||||||||
Other assets | 9,804 | 10,394 | ||||||||
Total assets | $ | 575,782 | $ | 572,609 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||
Deposits | $ | 479,258 | $ | 483,659 | ||||||
Accrued interest expense | 180 | 221 | ||||||||
Other liabilities | 7,674 | 8,131 | ||||||||
Short-term borrowings | 7,354 | 436 | ||||||||
Long-term debt | 5,000 | 5,000 | ||||||||
Total liabilities | 499,466 | 497,447 | ||||||||
Shareholders’ equity: | ||||||||||
Common stock, par value $0.01 per share, 10,000,000 shares authorized; 7,329,060 shares issued; 6,038,554 and 6,034,059 shares outstanding, respectively |
73 | 73 | ||||||||
Surplus | 9,844 | 9,577 | ||||||||
Accumulated other comprehensive income, net of tax | 536 | 1,829 | ||||||||
Retained earnings | 86,693 | 84,582 | ||||||||
Less treasury stock: 1,290,506 and 1,295,001 shares at cost, respectively | (20,817 | ) | (20,886 | ) | ||||||
Noncontrolling interest | (13 | ) | (13 | ) | ||||||
Total shareholders’ equity | 76,316 | 75,162 | ||||||||
Total liabilities and shareholders’ equity | $ | 575,782 | $ | 572,609 | ||||||
UNITED SECURITY BANCSHARES, INC. AND SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in Thousands, Except Per Share Data) |
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Three Months Ended | Twelve Months Ended | |||||||||||||||||
December 31, | December 31, | |||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||
Interest income: | ||||||||||||||||||
Interest and fees on loans | $ | 6,362 | $ | 6,501 | $ | 25,177 | $ | 26,929 | ||||||||||
Interest on investment securities | 1,151 | 1,185 | 4,720 | 4,432 | ||||||||||||||
Total interest income | 7,513 | 7,686 | 29,897 | 31,361 | ||||||||||||||
Interest expense: | ||||||||||||||||||
Interest on deposits | 541 | 628 | 2,262 | 2,522 | ||||||||||||||
Interest on borrowings | 8 | 8 | 27 | 31 | ||||||||||||||
Total interest expense | 549 | 636 | 2,289 | 2,553 | ||||||||||||||
Net interest income | 6,964 | 7,050 | 27,608 | 28,808 | ||||||||||||||
Provision (reduction in reserve) for loan losses | 415 | (169 | ) | 216 | (74 | ) | ||||||||||||
Net interest income after provision (reduction in reserve) for loan losses |
6,549 |
7,219 |
27,392 |
28,882 |
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Non-interest income: | ||||||||||||||||||
Service and other charges on deposit accounts |
453 |
524 |
1,844 |
2,096 |
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Credit insurance income | 162 | 271 | 501 | 694 | ||||||||||||||
Other income | 561 | 484 | 2,186 | 2,301 | ||||||||||||||
Total non-interest income | 1,176 | 1,279 | 4,531 | 5,091 | ||||||||||||||
Non-interest expense: | ||||||||||||||||||
Salaries and employee benefits | 4,151 | 4,108 | 16,664 | 16,690 | ||||||||||||||
Net occupancy and equipment | 769 | 810 | 3,116 | 3,226 | ||||||||||||||
Other real estate/foreclosure expense, net | 213 | 428 | 1,027 | 1,077 | ||||||||||||||
Other expense | 2,070 | 1,900 | 7,570 | 7,602 | ||||||||||||||
Total non-interest expense | 7,203 | 7,246 | 28,377 | 28,595 | ||||||||||||||
Income before income taxes | 522 | 1,252 | 3,546 | 5,378 | ||||||||||||||
Provision for income taxes | 81 | 532 | 951 | 1,829 | ||||||||||||||
Net income | $ | 441 | $ | 720 | $ | 2,595 | $ | 3,549 | ||||||||||
Basic net income per share | $ | 0.07 | $ | 0.12 | $ | 0.42 | $ | 0.58 | ||||||||||
Diluted net income per share | $ | 0.07 | $ | 0.12 | $ | 0.41 | $ | 0.57 | ||||||||||
Dividends per share | $ | 0.02 | $ | 0.02 | $ | 0.08 | $ | 0.03 |
CONTACT:
United Security Bancshares, Inc.
Thomas S. Elley,
334-636-5424