EX-99.1 2 us6582ex991.htm EXHIBIT 99.1

Exhibit 99.1

United Security Bancshares, Inc. Announces Quarterly and Six Month Earnings

          THOMASVILLE, Ala., July 28 /PRNewswire-FirstCall/ -- United Security Bancshares, Inc. (Nasdaq: USBI) (USB) today reported net income for the quarter ended June 30, 2006, of $3,476,000 compared to $3,578,000 for the same period of 2005, a 2.9% decrease.  On a diluted per share basis, net income for the second quarter of 2006 was $0.54, compared to $0.56 for the same period of 2005, a 3.6% decrease.  While net income shows a slight decrease quarter-to- date, year-to-date net income increased $276,000 from $6,880,000 in 2005 to $7,156,000 in 2006.  Likewise, net income per share increased from $1.07 in 2005 to $1.12 in 2006, a 4.7% increase.

          Net interest income increased 5.9% in the second quarter of 2006 compared to the same period in 2005.  The net yield on earning assets improved from 7.36% at June 30, 2005, to 7.54% at June 30, 2006.  This increase is due to an overall increase in the average yield on loans and investments as well as increased volume of earning assets.  An increase in non-performing assets required an increase in the provision for loan losses of $266,000 quarter-to- date, and $285,000 year-to-date, compared to last year.  Non-interest income increased slightly but was offset by increased non-interest expense and income taxes year-to-date 2006 compared to 2005.

          Performance ratios remain strong with return on average assets of 2.29% and return on average equity of 16.35%.

          At June 30, 2006, total assets amounted to $636,621,000, a 5.5% increase over June 30, 2005.  Total deposits showed an increase of $39,787,000, or 9.7%. Loans, net of unearned discount, increased 7.3% to $445,924,000, and shareholders’ equity totaled $88,051,000, which represented a book value of $13.84 per share.  Dividends remain at $0.23 per share for the second quarter.

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

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

 

 

 

 

 

2006

 

2005

 

2006

 

2005

 

 

 

 

 

 

 

Earnings Summary:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

$

10,720

 

$

10,127

 

$

21,455

 

$

19,935

 

Provision for Credit Losses

 

 

975

 

 

709

 

 

1,790

 

 

1,505

 

Non-Interest Income

 

 

1,384

 

 

1,343

 

 

2,668

 

 

2,497

 

Non-Interest Expense

 

 

5,937

 

 

6,048

 

 

11,683

 

 

11,404

 

Income Before Income Taxes

 

 

5,192

 

 

4,713

 

 

10,650

 

 

9,523

 

Income Tax Provision

 

 

1,716

 

 

1,135

 

 

3,494

 

 

2,643

 

Net Income

 

$

3,476

 

$

3,578

 

$

7,156

 

$

6,880

 

Earnings Per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

$

0.54

 

$

0.56

 

$

1.12

 

$

1.07

 

Dividends Per Share

 

$

0.23

 

$

0.20

 

$

0.61

 

$

0.55

 


 

 

June 30,

 

 

 

 

 

 

2006

 

2005

 

 

 

 

 

Balance Sheet Summary:

 

 

 

 

 

 

 

Total Assets

 

$

636,621

 

$

603,491

 

Total Earning Assets

 

 

576,455

 

 

548,381

 

Loans, Net of Unearned

 

 

445,924

 

 

415,735

 

Discount

 

 

 

 

 

 

 

Allowance for Credit Losses

 

 

7,779

 

 

7,192

 

Total Deposits

 

 

451,331

 

 

411,544

 

Common Shareholders’ Equity

 

 

88,051

 

 

84,933

 

Book Value Per Share

 

$

13.84

 

$

13.21

 

Average Balance Sheet Data:

 

 

 

 

 

 

 

Total Assets

 

$

631,081

 

$

599,239

 

Total Earning Assets

 

 

573,760

 

 

546,053

 

Loans, Net of Unearned Discount

 

 

444,899

 

 

407,121

 

Total Deposits

 

 

438,367

 

 

412,378

 

Common Shareholders’ Equity

 

 

88,286

 

 

83,872

 

Performance Ratios:

 

 

 

 

 

 

 

Return on Average Assets

 

 

2.29

%

 

2.31

%

Return on Common Equity

 

 

16.35

%

 

16.54

%

Average Shares Outstanding:

 

 

 

 

 

 

 

Basic and Diluted

 

 

6,404,628

 

 

6,428,702

 

          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-                                                  07/28/2006
           /CONTACT:  Larry Sellers or Robert Steen, both of United Security Bancshares, Inc., +1-334-636-5424/
           (USBI)