11-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 11-K

ANNUAL REPORT

PURSUANT TO SECTION 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

(Mark One):

x ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2005

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission file number 0-14549

A. Full title of the plan and the address of the plan, if different from that of the issuer named below:

United Security Bancshares, Inc.

Employee Stock Ownership Plan (With 401(k) Provisions)

B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

United Security Bancshares, Inc.

131 West Front Street

P.O. Box 249

Thomasville, Alabama 36784

UNITED SECURITY BANCSHARES, INC.

EMPLOYEE STOCK OWNERSHIP PLAN (With 401(k) Provisions)

FINANCIAL REPORT

DECEMBER 31, 2005

TABLE OF CONTENTS

	Page
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	1
FINANCIAL STATEMENTS
Statements of net assets available for benefits	2
Statement of changes in net assets available for benefits	3
Notes to financial statements	4 - 7
SUPPLEMENTAL SCHEDULE	8

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Audit Committee

United Security Bancshares, Inc.

Thomasville, Alabama

We have audited the accompanying statements of net assets available for benefits of the United Security Bancshares, Inc. Employee Stock Ownership Plan (With 401(k) Provisions) as of December 31, 2005 and 2004, and the related statement of changes in net assets available for benefits for the year ended December 31, 2005. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the United Security Bancshares, Inc. Employee Stock Ownership Plan (With 401(k) Provisions) as of December 31, 2005 and 2004, and the changes in net assets available for benefits for the year ended December 31, 2005, in accordance with U.S. generally accepted accounting principles.

Our audit was performed for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedule of assets (held at end of year) as of December 31, 2005, is presented for purpose of additional analysis and is not a required part of the financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in our audit of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

Birmingham, Alabama

June 22, 2006

1

UNITED SECURITY BANCSHARES, INC.

EMPLOYEE STOCK OWNERSHIP PLAN (With 401(k) Provisions)

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS

DECEMBER 31, 2005 AND 2004

	2005		2004
Assets
Cash	$	66,009	$	450
Investments, at fair value:
Participant directed:
Common Stock, United Security Bancshares, Inc.		8,203,136		9,644,565
Mutual funds		5,292,306		4,581,818
Other		118,100		67,833
		13,613,542		14,294,216
Nonparticipant directed:
Life insurance contracts, at cash value		33,433		32,364
Total Investments		13,646,975		14,326,580
Accrued interest and dividends		65,205		54,606
Net assets available for benefits	$	13,778,189	$	14,381,636

See Notes to Financial Statements.

2

UNITED SECURITY BANCSHARES, INC.

EMPLOYEE STOCK OWNERSHIP PLAN (With 401(k) Provisions)

STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS

FOR THE YEAR ENDED DECEMBER 31, 2005

Additions to net assets attributed to:
Company contributions	$	491,753
Participant contributions		624,000
Interest and dividend income		394,629
Income from life insurance policies		1,069
Net depreciation in fair value of investments		(1,824,853	)
Total additions		(313,402	)
Deductions from net assets attributed to:
Benefit payments to participants		287,336
Life insurance premiums		2,709
Total deductions		290,045
Net decrease in net assets available for benefits		(603,447	)
Net assets available for benefits at beginning of year		14,381,636
Net assets available for benefits at end of year	$	13,778,189

See Notes to Financial Statements.

3

UNITED SECURITY BANCSHARES, INC.

EMPLOYEE STOCK OWNERSHIP PLAN (With 401(k) Provisions)

NOTES TO FINANCIAL STATEMENTS

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The financial statements of the United Security Bancshares, Inc. Employee Stock Ownership Plan (With 401(k) Provisions) (the “Plan”) have been prepared in accordance with U.S. generally accepted accounting principles. Income on securities is recorded on the accrual basis and investments are recorded at fair value as stated below.

Investment Valuation

The Plan’s investments in cash equivalents are stated at fair value, which approximates cost. The shares of mutual funds, pooled bond funds, and common stock are valued at quoted market prices on the last business day of the plan year.

Purchases and sales of securities are recorded on a trade-date basis. Dividends are recorded on the ex-dividend date.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Risks and Uncertainties

The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statements of net assets available for benefits.

Payment of Benefits

Benefits are recorded when paid.

NOTE 2. DESCRIPTION OF THE PLAN

The following description of the Plan provides only general information. Participants should refer to the Plan Document for a more complete description of the Plan’s provisions.

General

The Plan is a controlled group defined contribution plan, which provides savings benefits for substantially all employees of the following controlled group of United Security Bancshares, Inc. (collectively, the Company):

United Security Bancshares, Inc. (parent company)

First United Security Bank

Acceptance Loan Company

First Courier Corporation

The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).

4

NOTES TO FINANCIAL STATEMENTS

NOTE 2. DESCRIPTION OF THE PLAN (Continued)

Contributions

Each year, participants may contribute up to a total of 15% of pretax annual compensation, as defined in the Plan. Participants may also rollover amounts representing distributions from other qualified defined benefit or defined contribution plans and conduit IRAs. The Company may, at its discretion, match 100% of the participants’ pretax deferrals up to a total of 6% of base compensation that a participant contributes to the Plan.

Participant Accounts

Each participant’s account is credited with the participant’s contributions, the Company’s match and Plan earnings. Allocations are based on participant earnings or account balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s account.

Vesting

Employees are eligible to participate in the Plan on the first day of the month following their initial date of service. Effective January 1, 2003, participants are immediately vested in their contributions, the Company matching contributions and the earnings thereon. Prior to January 1, 2003, participants are immediately vested in their contributions, but are subject to a six year vesting schedule in employer contributions.

Forfeitures

Prior to January 1, 2003, Participants who were not credited with at least 1,000 hours of service during the Plan year forfeited any employer contributions received for that Plan year. The forfeitures are used to reduce future employer contributions to the Plan. Effective January 1, 2003, participants are immediately vested in their contributions; therefore, the Plan no longer has forfeitures to reduce future employer contributions to the Plan.

Payment of Benefits

Upon termination of service, death, disability or retirement, a participant may receive a lump sum amount or a benefit in the form of an annuity equal to the vested value of his or her account.

Plan Termination

Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. Participants are always 100% vested in their contributions.

5

NOTES TO FINANCIAL STATEMENTS

NOTE 3. INVESTMENTS

The fair values of individual investments that represent 5% or more of the Plan’s net assets are as follows:

	2005		2004
Common stock, United Security Bancshares, Inc.	$	8,203,136	$	9,644,565
American Century 20th Century Ultra Advanced Fund		1,053,452		1,123,643
Federated Prime Obligation Fund		929,625		735,742

For the years ended December 31, 2005 and 2004, the Plan’s investments (including investments bought, sold, transferred as well as held during the year) appreciated (depreciated) in fair value as determined by quoted market prices as follows:

	2005			2004
Common stock, United Security Bancshares, Inc.	$	(1,984,240	)	$	1,528,432
Mutual funds		159,620			326,492
Other		(233	)		(132	)
Total	$	(1,824,853	)	$	1,854,792

NOTE 4. NONPARTICIPANT-DIRECTED INVESTMENTS

Nonparticipant-directed investments consist of life insurance contracts that certain participants have purchased under the terms of the Plan. The life insurance contracts are stated at the current cash surrender value. The participants pay the annual premiums of the insurance policies from their respective participant accounts.

NOTE 5. TRANSACTIONS WITH PARTIES-IN-INTEREST

Plan investments are managed by The Trust Company of Sterne, Agee & Leach, Inc. The Trust Company of Sterne, Agee & Leach, Inc. is the trustee as defined by the Plan and, therefore, these transactions qualify as party-in-interest transactions. Fees paid by the Plan for investment brokerage services amounted to $4,835 and $9,997 for the years ended December 31, 2005 and 2004, respectively.

During the years ended December 31, 2005 and 2004, the Plan purchased 17,300 and 41,772 shares at a cost of $501,305 and $959,531, respectively, of United Security Bancshares Inc. Common Stock. There were no sales for the years ended December 31, 2005 and 2004.

The Company pays for all legal, accounting and other services on behalf of the Plan.

6

NOTES TO FINANCIAL STATEMENTS

NOTE 6. RECONCILIATION OF FINANCIAL STATEMENTS TO THE FORM 5500

The following is a reconciliation of net assets available for benefits per the financial statements at December 31, 2005 and 2004 to the Form 5500:

	2005			2004
Net assets available for benefits per the financial statements	$	13,778,189		$	14,381,636
Cash to accrual adjustment for accrued interest and dividends		(65,205	)		(54,606	)
Net assets available for benefits per the Form 5500	$	13,712,984		$	14,327,030

The following is a reconciliation of changes in net assets available for benefits per the financial statements at December 31, 2005 and 2004 to the Form 5500:

	2005			2004
Change in net assets available for benefits per the financial statements	$	(603,447	)	$	2,792,328
Timing differences associated with benefit payments		0			13,348
Adjustment to insurance contract values		0			(23,374	)
Cash to accrual adjustment for accrued interest and dividends		(10,599	)		(9,683	)
Timing differences associated with investment transactions		0			(25,613	)
Change in net assets available for benefits per the Form 5500	$	(614,046	)	$	2,747,006

NOTE 7. INCOME TAX STATUS

The Internal Revenue Service has determined and informed the Company by letter dated June 21, 2002, that the Plan and related trust are designed in accordance with applicable sections of the Internal Revenue Code (IRC). Although the Plan has been amended since receiving the determination letter, the Plan administrator believes the Plan is designed and is currently being operated in compliance with applicable requirements of the IRC.

7

Supplemental Schedule

UNITED SECURITY BANCSHARES, INC.

Employee Stock Ownership Plan (With 401(k) Provisions)

(Plan Number 001)

(Employer Identification Number 63-0318800)

Schedule H, Line 4i

Schedule of Assets (Held at End of Year)

December 31, 2005

(a)	(b) Identity of Issue, Borrower, Lessor, or Similar Party	(c) Description of Investment including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value	(d) Cost	(e) Current Value
*	United Security Bancshares, Inc. Common Stock	305,973 shares	**	$	8,203,136
	Accessor U.S. Government Money Market Fund	115,267 face amount	**		115,267
	Federated Prime Obligation Fund	929,625 shares	**		929,625
	GNMA Pool 9% due 8/15/2017	2,611 face amount	**		2,832
	Accessor Aggressive Growth Fund	6,502 shares	**		103,897
	Accessor Balanced Allocation Fund	8,599 shares	**		136,547
	Accessor Growth Allocation Fund	8,033 shares	**		129,489
	American Century 20th Century Ultra Fund	35,494 shares	**		1,053,452
	American Century 20th Century International Fund	38,517 shares	**		388,255
	Dreyfus S&P 500 Index Fund	14,347 shares	**		521,517
	Federated Stock Trust	20,556 shares	**		642,376
	Federated Equity Kaufman Fund	72,491 shares	**		405,951
	Federated Capital Appreciation Fund	6,224 shares	**		156,100
	Goldman Sachs Short Duration Fund	31,034 shares	**		299,482
	Accessor Income & Growth Fund	5,180 shares	**		80,658
	Accessor Income Allocation Fund	2,333 shares	**		34,846
	Federated Total Return Bond Fund	38,873 shares	**		410,112
	Life insurance contracts	Life insurance policies	***		33,433
				$	13,646,975

* Party-in-interest.

** Cost not included, funds are participant directed.

*** Investments in life insurance contracts are nonparticipant-directed. The face amount of the policies at December 31, 2005 was $269,008.

8

SIGNATURE

The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the plan administrator has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

	UNITED SECURITY BANCSHARES, INC. EMPLOYEE STOCK OWNERSHIP PLAN (WITH 401(K) PROVISIONS)
Date: June 26, 2006	By:	/s/ Larry M. Sellers
		Larry M. Sellers
		Vice President, Secretary, and Treasurer of United Security Bancshares, Inc., the Plan Administrator of the United Security Bancshares, Inc. Employee Stock Ownership Plan (With 401(k) Provisions)

Exhibit Index

Exhibit 23         Consent of Independent Registered Public Accounting Firm

EX-23

Exhibit 23

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in Registration Statement No. 333-110013 on Form S-8 of the United Security Bancshares, Inc. Employee Stock Ownership Plan (With 401(k) Provisions) of our report dated June 22, 2006, appearing in this Annual Report on Form 11-K of the United Security Bancshares, Inc. Employee Stock Ownership Plan (With 401(k) Provisions) for the year ended December 31, 2005.

Birmingham, Alabama

June 26, 2006