United Security Bancshares, Inc. Announces Quarterly Earnings

Apr 30, 2001, 01:00 ET from United Security Bancshares, Inc.

    THOMASVILLE, Ala., April 30 /PRNewswire/ -- United Security Bancshares,
 Inc. (Nasdaq: USBI) today reported net income for the quarter ended March 31,
 2001, excluding the cumulative effect of a change in accounting principle of
 $200,000, amounted to $1,635,000 compared to $2,050,000 for the same period of
 2000, a 20% decline.  Net income after the effect of the adoption of the
 Financial Accounting Standards Board Opinion No. 133 was $1,435,000.  On a
 diluted per share basis, net income for the first quarter of 2001 was $0.40,
 compared to $0.57 for the same period of 2000.  A decline in net interest
 margin of $458,000 and an increase in the provision for credit losses of
 $377,000 were the major factors for the decline.  The sharp drop in interest
 rates which the company experienced in the first quarter contributed to
 narrowing net interest margins, as the cost of funds did not decrease as
 rapidly as interest revenue.  Credit losses at the finance company subsidiary,
 Acceptance Loan Company, accounted for the increased provision for credit
 losses.
     At March 31, 2001, total assets amounted to $516,678,000, a 7.8% increase
 over March 31, 2000.  Total deposits showed an increase of $18,579,000 for a
 5.7% growth rate.  Loan and lease receivables, net of unearned discount,
 increased 7.0% to $310,753,000, and shareholders' equity totaled $68,673,000,
 which represented a book value of $19.22 per share.  Dividends were increased
 $0.02 per share to $0.25 during the first quarter.
 
 
                        UNITED SECURITY BANCSHARES, INC.
                        (Unaudited Financial Highlights)
            (In thousands, except per share amounts and percentages)
 
 
                                                        Three Months Ended
                                                               March 31
                                                         2001           2000
     Earnings Summary:
     Net Interest Revenue                              $7,333         $7,791
 
     Provision for Credit Losses                        1,503          1,126
 
     Non-Interest Revenue                               1,107          1,003
 
     Non-Interest Expense                               4,712          4,848
 
     Income Before Income Taxes                         2,225          2,820
     Income Tax Provision                                 590            770
 
     Net Income Before Cumulative Effect
       Of a Change in Accounting Principle             $1,635         $2,050
     Cumulative Effect of a Change
       In Accounting Principle                           (200)             0
 
     Net Income After Effect of a Change
       In Accounting Principle                          1,435          2,050
 
 
 
 
                                                         Three Months Ended
                                                              March 31
                                                         2001           2000
 
     Earnings Per Share:
       Basic                                             0.40           0.57
       Diluted                                           0.40           0.57
 
     Dividends Per Share                                 0.25           0.23
 
 
     Balance Sheet Summary:
       Total Assets                                  $516,678       $479,452
       Total Earnings Assets                          484,493        444,740
       Loan and Lease Receivables,
         Net of Unearned Discount                     310,753        290,491
       Allowance for Credit Losses                      6,615          5,688
       Total Deposits                                 345,097        326,518
       Common Shareholders' Equity                     68,673         62,296
       Book Value Per Share                             19.22          17.45
 
     Average Balance Sheet Data:
       Total Assets                                  $511,207       $480,539
       Total Earnings Assets                          481,319        442,616
       Loan and Lease Receivables,
         Net of Unearned Discount                     307,863        286,523
       Total Deposits                                 341,390        328,018
       Common Shareholders' Equity                     68,164         61,372
 
     Performance Ratios:
       Return on Average Assets                         1.11%          1.71%
       Return on Common Equity                          8.42%         13.36%
 
     Net Interest Margin                                6.09%          7.04%
 
     Average Shares Outstanding:
       Basic                                        3,571,608      3,570,314
       Diluted                                      3,580,374      3,581,422
 
 
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SOURCE United Security Bancshares, Inc.
    THOMASVILLE, Ala., April 30 /PRNewswire/ -- United Security Bancshares,
 Inc. (Nasdaq: USBI) today reported net income for the quarter ended March 31,
 2001, excluding the cumulative effect of a change in accounting principle of
 $200,000, amounted to $1,635,000 compared to $2,050,000 for the same period of
 2000, a 20% decline.  Net income after the effect of the adoption of the
 Financial Accounting Standards Board Opinion No. 133 was $1,435,000.  On a
 diluted per share basis, net income for the first quarter of 2001 was $0.40,
 compared to $0.57 for the same period of 2000.  A decline in net interest
 margin of $458,000 and an increase in the provision for credit losses of
 $377,000 were the major factors for the decline.  The sharp drop in interest
 rates which the company experienced in the first quarter contributed to
 narrowing net interest margins, as the cost of funds did not decrease as
 rapidly as interest revenue.  Credit losses at the finance company subsidiary,
 Acceptance Loan Company, accounted for the increased provision for credit
 losses.
     At March 31, 2001, total assets amounted to $516,678,000, a 7.8% increase
 over March 31, 2000.  Total deposits showed an increase of $18,579,000 for a
 5.7% growth rate.  Loan and lease receivables, net of unearned discount,
 increased 7.0% to $310,753,000, and shareholders' equity totaled $68,673,000,
 which represented a book value of $19.22 per share.  Dividends were increased
 $0.02 per share to $0.25 during the first quarter.
 
 
                        UNITED SECURITY BANCSHARES, INC.
                        (Unaudited Financial Highlights)
            (In thousands, except per share amounts and percentages)
 
 
                                                        Three Months Ended
                                                               March 31
                                                         2001           2000
     Earnings Summary:
     Net Interest Revenue                              $7,333         $7,791
 
     Provision for Credit Losses                        1,503          1,126
 
     Non-Interest Revenue                               1,107          1,003
 
     Non-Interest Expense                               4,712          4,848
 
     Income Before Income Taxes                         2,225          2,820
     Income Tax Provision                                 590            770
 
     Net Income Before Cumulative Effect
       Of a Change in Accounting Principle             $1,635         $2,050
     Cumulative Effect of a Change
       In Accounting Principle                           (200)             0
 
     Net Income After Effect of a Change
       In Accounting Principle                          1,435          2,050
 
 
 
 
                                                         Three Months Ended
                                                              March 31
                                                         2001           2000
 
     Earnings Per Share:
       Basic                                             0.40           0.57
       Diluted                                           0.40           0.57
 
     Dividends Per Share                                 0.25           0.23
 
 
     Balance Sheet Summary:
       Total Assets                                  $516,678       $479,452
       Total Earnings Assets                          484,493        444,740
       Loan and Lease Receivables,
         Net of Unearned Discount                     310,753        290,491
       Allowance for Credit Losses                      6,615          5,688
       Total Deposits                                 345,097        326,518
       Common Shareholders' Equity                     68,673         62,296
       Book Value Per Share                             19.22          17.45
 
     Average Balance Sheet Data:
       Total Assets                                  $511,207       $480,539
       Total Earnings Assets                          481,319        442,616
       Loan and Lease Receivables,
         Net of Unearned Discount                     307,863        286,523
       Total Deposits                                 341,390        328,018
       Common Shareholders' Equity                     68,164         61,372
 
     Performance Ratios:
       Return on Average Assets                         1.11%          1.71%
       Return on Common Equity                          8.42%         13.36%
 
     Net Interest Margin                                6.09%          7.04%
 
     Average Shares Outstanding:
       Basic                                        3,571,608      3,570,314
       Diluted                                      3,580,374      3,581,422
 
 
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 SOURCE  United Security Bancshares, Inc.