EX-99.1 2 us5509ex991.htm EXHIBIT 99.1

Exhibit 99.1

United Security Bancshares, Inc. Announces Quarterly Earnings

          THOMASVILLE, Ala., April 24 /PRNewswire-FirstCall/ -- United Security Bancshares, Inc. (Nasdaq: USBI) (“USB”) today reported net income for the quarter ended March 31, 2006, of $3,680,000, compared to $3,302,000 for the same period of 2005, an 11.4% increase.  On a per share basis, net income for the first quarter of 2006 was $0.57, compared to $0.51 for the same period of 2005, an 11.8% increase.

          Increased net income was primarily due to improved net interest income. Net interest income increased 9.5% in the first quarter of 2006 compared to the same period in 2005.  The net yield on earning assets improved from 7.32% at March 31, 2005, to 7.62% at March 31, 2006.  This increase is due to an overall increase in the average yield on loans and investment securities as well as increased volume of earning assets.  Non-interest income improved slightly due to an increase in service charges on deposit accounts.  Non- interest expense increased 7.3% primarily due to increased salary and benefit costs.

          Performance ratios remain excellent with return on average assets of 2.37% and return on average equity of 16.87%.

          At March 31, 2006, total assets amounted to $634,676,000, a 5.4% increase over March 31, 2005.  Total deposits increased 5.0% to $435,476,000.  Loans, net of unearned discount, increased 10.4% to $448,730,000, and shareholders’ equity totaled $88,302,000, which represented a book value of $13.77 per share.  Regular dividends were increased 15.0% to $0.23 per share in the first quarter, and a special dividend of $0.15 per share was also declared.

UNITED SECURITY BANCSHARES, INC.
(Unaudited Financial Highlights)
(In thousands, except per share amounts and percentages)

 

 

Three Months Ended
March 31,

 

 

 


 

 

 

2006

 

2005

 

 

 



 



 

Earnings Summary:

 

 

 

 

 

 

 

Net Interest Income

 

$

10,735

 

$

9,808

 

Provision for Credit Losses

 

 

815

 

 

796

 

Non-Interest Income

 

 

1,284

 

 

1,154

 

Non-Interest Expense

 

 

5,745

 

 

5,356

 

Income Before Income Taxes

 

 

5,459

 

 

4,810

 

Income Tax Provision

 

 

1,779

 

 

1,508

 

Net Income

 

$

3,680

 

$

3,302

 




 

 

Three Months Ended
March 31,

 

 

 


 

 

 

2006

 

2005

 

 

 



 



 

Basic and Diluted

 

$

0.57

 

$

0.51

 

Dividends Per Share

 

 

0.38

 

 

0.35

 

Balance Sheet Summary:

 

 

 

 

 

 

 

Total Assets

 

$

634,676

 

$

602,394

 

Total Earning Assets

 

 

575,739

 

 

550,230

 

Loans, Net of Unearned Discount

 

 

448,730

 

 

406,426

 

Allowance for Credit Losses

 

 

7,662

 

 

7,081

 

Total Deposits

 

 

435,476

 

 

414,856

 

Common Shareholders’ Equity

 

 

88,302

 

 

82,344

 

Book Value Per Share

 

$

13.77

 

$

12.84

 

Average Balance Sheet Data:

 

 

 

 

 

 

 

Total Assets

 

$

629,677

 

$

595,467

 

Total Earning Assets

 

 

571,168

 

 

543,214

 

Loans, Net of Unearned Discount

 

 

443,548

 

 

405,322

 

Total Deposits

 

 

436,140

 

 

409,236

 

Common Shareholders’ Equity

 

 

88,490

 

 

82,922

 

Performance Ratios:

 

 

 

 

 

 

 

Return on Average Assets

 

 

2.37

%

 

2.25

%

Return on Common Equity

 

 

16.87

%

 

16.15

%

Average Shares Outstanding:

 

 

 

 

 

 

 

Basic and Diluted

 

 

6,424,412

 

 

6,429,428

 

          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 USB’s senior management based upon current information and involve a number of risks and uncertainties.  Certain factors which could affect the accuracy of such forward-looking statements are identified in the public filings made by USB with the Securities and Exchange Commission, and forward-looking statements contained in this press release or in other public statements of USB 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.

SOURCE  United Security Bancshares, Inc.
           -0-                                                04/24/2006
           /CONTACT:  Larry Sellers or Robert Steen of United Security Bancshares, Inc., +1-334-636-5424/
           (USBI)