Shareholders' Equity

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Shareholders' Equity

14. SHAREHOLDERS’ EQUITY

Dividends are paid at the discretion of the Company’s Board of Directors, based on the Company’s operating performance and financial position, including earnings, capital and liquidity. Dividends from the Bank are the Company’s primary source of funds for the payment of dividends to shareholders, and there are various legal and regulatory limits regarding the extent to which the Bank may pay dividends or otherwise supply funds to the Company. In addition, federal and state regulatory agencies have the authority to prevent the Company from paying a dividend to shareholders. The Company has not paid a dividend to its shareholders since the first quarter of 2011 due to substantial net losses at the Bank, and the Company can make no assurances that it will be able or permitted to pay dividends in the future.

The Company is subject to various regulatory capital requirements that prescribe quantitative measures of the Company’s assets, liabilities and certain off-balance sheet items. The Company’s regulators also have imposed qualitative guidelines for capital amounts and classifications such as risk weightings, capital components and other details. The quantitative measures to ensure capital adequacy require that the Company maintain amounts and ratios, as set forth in the schedule below, of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined in the regulations) and of Tier I capital to average total assets (as defined in the regulations). Failure to meet minimum capital requirements can initiate certain actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Management believes that, as of December 31, 2013 and 2012, the Company met all capital adequacy requirements imposed by its regulators.

As of December 31, 2013, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as “well-capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well-capitalized,” the Bank must maintain minimum total risk-based, Tier I risk-based and Tier I leverage ratios, as set forth in the table. There have been no conditions or events since that notification that management believes have changed the Bank’s categorization. The Bank was categorized as “well-capitalized” as of December 31, 2012, as well.

Actual capital amounts, as well as required and well capitalized total risk-based, Tier I risk-based, and Tier I leverage ratios as of December 31, 2013 and 2012, for the Company and the Bank were as follows:

	2013
	Actual					Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in Thousands)
Total Capital (to Risk Weighted Assets):
United Security Bancshares, Inc.	$	64,842		19.20	%	$	27,012		8.00	%		N/A		N/A
First United Security Bank		65,304		19.34	%		27,012		8.00	%	$	33,765		10.00	%
Tier I Capital (to Risk Weighted Assets):
United Security Bancshares, Inc.		60,557		17.93	%		13,506		4.00	%		N/A		N/A
First United Security Bank		61,019		18.07	%		13,506		4.00	%		20,259		6.00	%
Tier I Leverage (to Average Assets):
United Security Bancshares, Inc.		60,557		10.88	%		16,698		3.00	%		N/A		N/A
First United Security Bank		61,019		10.97	%		16,691		3.00	%		27,819		5.00	%

	2012
	Actual					Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in Thousands)
Total Capital (to Risk Weighted Assets):
United Security Bancshares, Inc.	$	63,957		17.05	%	$	30,008		8.00	%		N/A		N/A
First United Security Bank		64,422		17.17	%		30,008		8.00	%	$	37,510		10.00	%
Tier I Capital (to Risk Weighted Assets):
United Security Bancshares, Inc.		59,088		15.75	%		15,004		4.00	%		N/A		N/A
First United Security Bank		59,553		15.88	%		15,004		4.00	%		22,506		6.00	%
Tier I Leverage (to Average Assets):
United Security Bancshares, Inc.		59,088		10.51	%		16,873		3.00	%		N/A		N/A
First United Security Bank		59,553		10.60	%		16,862		3.00	%		28,104		5.00	%