EX-99.1 2 us7677ex991.htm EXHIBIT 99.1

Exhibit 99.1

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

          THOMASVILLE, Ala., Oct. 30 /PRNewswire-FirstCall/ -- United Security Bancshares, Inc. (Nasdaq: USBI) (USB) today reported net income for the quarter ended September 30, 2006, of $3,455,000 compared to $3,721,000 for the same period of 2005.  On a diluted per share basis, net income for the third quarter of 2006 was $0.54, compared to $0.58 for the same period of 2005. While net income shows a decrease quarter-to-date, year-to-date net income increased $11,000 from $10,600,000 in 2005 to $10,611,000 in 2006.  Likewise, net income per share increased from $1.65 in 2005 to $1.66 in 2006.

          Net interest income increased 4.9% in the third quarter of 2006 compared to the same period in 2005.  The net yield on earning assets improved from 7.36% at September 30, 2005, to 7.49% at September 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 $101,000 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 2.24% and return on average equity of 16.10%.

           At September 30, 2006, total assets amounted to $645,497,000, a 3.7% increase over September 30, 2005.  Total deposits showed an increase of $20,087,000, or 4.7%. Loans, net of unearned discount, increased 3.3% to $442,765,000, and shareholders’ equity totaled $89,696,000, which represented a book value of $14.18 per share.  Dividends remain at $0.23 per share for the third quarter.

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

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

 

 

 

 

 

2006

 

2005

 

2006

 

2005

 

 

 

 

 

 

 

Earnings Summary:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

$

10,751

 

$

10,249

 

$

32,206

 

$

30,183

 

Provision for Credit Losses

 

 

763

 

 

947

 

 

2,553

 

 

2,452

 

Non-Interest Income

 

 

1,548

 

 

1,496

 

 

4,216

 

 

3,992

 

Non-Interest Expense

 

 

6,322

 

 

5,710

 

 

18,005

 

 

17,113

 

Income Before Income Taxes

 

 

5,214

 

 

5,088

 

 

15,864

 

 

14,610

 

Income Tax Provision

 

 

1,759

 

 

1,367

 

 

5,253

 

 

4,010

 

Net Income

 

$

3,455

 

$

3,721

 

$

10,611

 

$

10,600

 

Earnings Per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

$

0.54

 

$

0.58

 

$

1.66

 

$

1.65

 

Dividends Per Share

 

$

0.23

 

$

0.20

 

$

0.84

 

$

0.75

 


 

 

September 30,

 

 

 

 

 

 

2006

 

2005

 

 

 

 

 

Balance Sheet Summary:

 

 

 

 

 

 

 

Total Assets

 

$

645,497

 

$

622,567

 

Total Earning Assets

 

 

585,308

 

 

565,220

 

Loans, Net of Unearned Discount

 

 

442,765

 

 

428,813

 

Allowance for Credit Losses

 

 

7,522

 

 

7,371

 

Total Deposits

 

 

450,681

 

 

430,594

 

Common Shareholders’ Equity

 

 

89,696

 

 

86,585

 

Book Value Per Share

 

$

14.18

 

$

13.47

 

Average Balance Sheet Data:

 

 

 

 

 

 

 

Total Assets

 

$

631,993

 

$

602,429

 

Total Earning Assets

 

 

575,091

 

 

548,369

 

Loans, Net of Unearned Discount

 

 

443,683

 

 

412,897

 

Total Deposits

 

 

440,827

 

 

413,283

 

Common Shareholders’ Equity

 

 

88,117

 

 

84,404

 

Performance Ratios:

 

 

 

 

 

 

 

Return on Average Assets

 

 

2.24

%

 

2.35

%

Return on Common Equity

 

 

16.10

%

 

16.79

%

Average Shares Outstanding:

 

 

 

 

 

 

 

Basic and Diluted

 

 

6,383

 

 

6,428

 

          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-                    10/30/2006
          /CONTACT:  Larry Sellers or Robert Steen, +1-334-636-5424, of United Security Bancshares, Inc./
          (USBI)