8-K

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): June 7, 2007

UNITED SECURITY BANCSHARES, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware	0-14549	63-0843362
(State of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

131 West Front Street, P.O. Box 249, Thomasville, Alabama 36784

(Address of principal executive offices, including zip code)

(336) 636-5424

(Registrant’s telephone number, including area code)

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 8.01. Other Events.

On June 7, 2007, United Security Bancshares, Inc. (the “Company”) issued a press release announcing that the Company recently detected evidence suggesting irregularities in certain loan transactions within Acceptance Loan Company, a subsidiary of the Company. 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 June 7, 2007

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.
Date: June 7, 2007	By:	/s/ Robert Steen
		Robert Steen Assistant Vice President, Assistant Treasurer, Principal Financial Officer, and Principal Accounting Officer

INDEX TO EXHIBITS

Exhibit Number	Exhibit
99.1	Press Release dated June 7, 2007

EX-99.1

EXHIBIT 99.1

UNITED SECURITY BANCSHARES, INC.

ANNOUNCES AN INTERNAL INVESTIGATION

THOMASVILLE, ALA. (June 7, 2007) — United Security Bancshares, Inc. (NASDAQ: USBI) (the “Company”) today announced that the Company recently detected evidence suggesting irregularities in certain loan transactions within Acceptance Loan Company (“ALC”), a subsidiary of the Company. The irregularities appear to be primarily limited to two ALC branches and largely related to the making of improper or fraudulent loans and the improper or fraudulent handling of repossessed automobiles. The Company has initiated an internal investigation with the assistance of outside legal counsel, as well as an outside forensic accountant. At this time the Company has not completed its review of the financial impact of the irregularities, or the extent to which any losses will be covered by insurance or recoverable in a civil action. At this point of the investigation, the Company has identified approximately $3.8 million of potential losses. The Company is also assessing potential additional losses from loans where potential delinquencies have not been identified due to the irregularities. Upon discovering the irregularities, the Company discussed the matter with its independent auditors and notified the Chairman of its Audit Committee.

The Company’s President and Chief Executive Officer, R. Terry Phillips, said, “I want to assure our shareholders that we are taking this matter extremely seriously and are working diligently, along with outside experts, to perform a full and complete investigation. We are committed to meeting the highest standards in all aspects of our business and remain focused on providing our customers with quality products and services and the highest level of customer service. We have taken appropriate actions at the identified ALC branches in question to ensure that these activities have ceased.”

United Security Bancshares, Inc., a Delaware corporation, is a bank holding company with its principal offices in Thomasville, Alabama. The Company operates a commercial banking subsidiary, First United Security Bank. The Bank has nineteen banking offices in Alabama, and its market area includes counties in Alabama as well as Mississippi.

Statements contained in this press release which are not historical facts are forward-looking statements. Such forward-looking statements are necessarily estimates reflecting the best judgment of United Security Bancshares, Inc.’s senior management based upon current information and involve a number of risks and uncertainties. Such statements include, without limitation, any estimates with respect to losses relating to the irregularities discussed in this press release. Certain factors which 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. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements. Any such statement speaks only as of the date the statement was made. The Company undertakes no obligation to update or revise any forward-looking statements.

Contacts: United Security Bancshares, Inc. R. Terry Phillips Chief Executive Officer (334) 636-5424 United Security Bancshares, Inc. Robert Steen Principal Financial Officer and Principal Accounting Officer (334) 636-5424