United Security Bank 1st Quarter Return - 17.8%

Apr 12, 2001, 01:00 ET from United Security Bank

    FRESNO, Calif., April 12 /PRNewswire/ -- Dennis R. Woods, President and
 Chief Executive Officer of United Security Bank
 http://www.unitedsecuritybank.com/ (OTC Bulletin Board:   UBFO.OB), reported
 today the results of operations for the first quarter of 2001. Net income of
 $1,512,000 was up 5.0% or $72,000 over the first quarter for 2000.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000321/USBLOGO )
     Woods added, "Nationally, we saw signs of an economic slowdown emerging in
 the fourth quarter 2000 and it quickly manifested itself in the first quarter
 2001. Despite the national scene, the local economy continued to show strength
 in many areas. The sharp decline in interest rates during the quarter
 negatively impacted margins, but the bank managed a modest growth in net
 income and a very respectable 17.8% return on shareholders' equity. I am very
 pleased with these results, particularly in light of the volatile quarter just
 ended."
     Basic earnings per share for the quarter were $0.28 compared with $0.27
 for 2000, an increase of 3.7%. Diluted earnings per share for the quarter were
 $0.27 compared with $0.26 a year ago for an increase of 3.8%.
     Annualized 2001 return on average equity was 17.8% and the return on
 average assets was 1.73%. For the same period in 2000, ROAE was 19.9% and ROAA
 was 1.95%. The decreases in 2001 are primarily attributable to the 150 basis
 point decline in interest rates administered by the Federal Reserve Bank
 during the quarter.
     The 50th consecutive quarterly cash dividend of $0.115 per share, up from
 $0.10 last quarter and $0.08 a year ago, was declared on March 27, 2001 to be
 paid on April 25, 2001 to shareholders of record on April 13, 2001. The
 increase marks the third consecutive time the Board has increased the dividend
 on a nine-month cycle rather than twelve months. As a result, shareholders
 will realize a 23.6% indicated increase in their annualized dividends during
 2001.
     Shareholders' equity ended the quarter at $34,709,000, an increase of
 16.7% over March 31, 2000 and dividends of $1.94 million were paid to
 shareholders during the year 2000.
     First quarter 2001 net interest income increased by $361,000 over the same
 period in 2000, from $4,016,000 to $4,377,000, an increase of 9.0%. The net
 interest margin decreased from 6.03% for the three months in 2000 to 5.44% for
 2001, again primarily attributable to the 150 basis point decline in interest
 rates administered by the Federal Reserve Bank during the quarter
     Noninterest income for the first quarter of 2001 was $636,000, down
 slightly from $674,000 in 2000 for a drop of 5.8%, the primary result of a
 decline in ATM fees.
     First quarter operating expenses for the three months ended March 31 were
 $2,240,000 for 2001 and $2,184,000 for 2000, an increase of $56,000 or 2.6%.
 The primary factors contributing to the rise were salaries and other employee
 benefits. The efficiency ratio improved to 44.7% for 2001 from 46.57% in 2000.
     The provision for loan loss contribution was $375,000 for first quarter
 2001, up $75,000 or 25% over 2000. We believe this prudent in light of the
 loan growth achieved and because of the economic weakening apparent in much of
 the nation.
     Non-performing assets were 2.13% of total assets on March 31, 2001, up
 slightly from 1.63% at December 31, 2000. Other Real Estate Owned was .69% of
 total assets on March 31, 2001.
     United Security Bank is a $360 million state banking corporation and
 member of the Federal Reserve Bank of San Francisco. The Bank was again
 awarded the highest bank ratings for 2000: a Super Premier Performing bank by
 Findley Reports, listed in Sheshunoff's Highest Rated Banks of America for
 2000 and a Blue Ribbon bank by Veribanc Report. During 1999 the bank was
 awarded a 5-Star financial institution by Bauer Financial Reports and a 5-Star
 financial institution by California Research Corporation.
     This press release may include forward-looking statements that involve
 inherent risks and uncertainties. A number of important factors could cause
 actual results to differ materially from those in the forward-looking
 statements. Those factors include fluctuations in interest rates, inflation,
 government regulations, the process of integrating acquisitions and economic
 conditions and competition in the geographic and business areas in which the
 Company conducts its operations.
 
 

SOURCE United Security Bank
    FRESNO, Calif., April 12 /PRNewswire/ -- Dennis R. Woods, President and
 Chief Executive Officer of United Security Bank
 http://www.unitedsecuritybank.com/ (OTC Bulletin Board:   UBFO.OB), reported
 today the results of operations for the first quarter of 2001. Net income of
 $1,512,000 was up 5.0% or $72,000 over the first quarter for 2000.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000321/USBLOGO )
     Woods added, "Nationally, we saw signs of an economic slowdown emerging in
 the fourth quarter 2000 and it quickly manifested itself in the first quarter
 2001. Despite the national scene, the local economy continued to show strength
 in many areas. The sharp decline in interest rates during the quarter
 negatively impacted margins, but the bank managed a modest growth in net
 income and a very respectable 17.8% return on shareholders' equity. I am very
 pleased with these results, particularly in light of the volatile quarter just
 ended."
     Basic earnings per share for the quarter were $0.28 compared with $0.27
 for 2000, an increase of 3.7%. Diluted earnings per share for the quarter were
 $0.27 compared with $0.26 a year ago for an increase of 3.8%.
     Annualized 2001 return on average equity was 17.8% and the return on
 average assets was 1.73%. For the same period in 2000, ROAE was 19.9% and ROAA
 was 1.95%. The decreases in 2001 are primarily attributable to the 150 basis
 point decline in interest rates administered by the Federal Reserve Bank
 during the quarter.
     The 50th consecutive quarterly cash dividend of $0.115 per share, up from
 $0.10 last quarter and $0.08 a year ago, was declared on March 27, 2001 to be
 paid on April 25, 2001 to shareholders of record on April 13, 2001. The
 increase marks the third consecutive time the Board has increased the dividend
 on a nine-month cycle rather than twelve months. As a result, shareholders
 will realize a 23.6% indicated increase in their annualized dividends during
 2001.
     Shareholders' equity ended the quarter at $34,709,000, an increase of
 16.7% over March 31, 2000 and dividends of $1.94 million were paid to
 shareholders during the year 2000.
     First quarter 2001 net interest income increased by $361,000 over the same
 period in 2000, from $4,016,000 to $4,377,000, an increase of 9.0%. The net
 interest margin decreased from 6.03% for the three months in 2000 to 5.44% for
 2001, again primarily attributable to the 150 basis point decline in interest
 rates administered by the Federal Reserve Bank during the quarter
     Noninterest income for the first quarter of 2001 was $636,000, down
 slightly from $674,000 in 2000 for a drop of 5.8%, the primary result of a
 decline in ATM fees.
     First quarter operating expenses for the three months ended March 31 were
 $2,240,000 for 2001 and $2,184,000 for 2000, an increase of $56,000 or 2.6%.
 The primary factors contributing to the rise were salaries and other employee
 benefits. The efficiency ratio improved to 44.7% for 2001 from 46.57% in 2000.
     The provision for loan loss contribution was $375,000 for first quarter
 2001, up $75,000 or 25% over 2000. We believe this prudent in light of the
 loan growth achieved and because of the economic weakening apparent in much of
 the nation.
     Non-performing assets were 2.13% of total assets on March 31, 2001, up
 slightly from 1.63% at December 31, 2000. Other Real Estate Owned was .69% of
 total assets on March 31, 2001.
     United Security Bank is a $360 million state banking corporation and
 member of the Federal Reserve Bank of San Francisco. The Bank was again
 awarded the highest bank ratings for 2000: a Super Premier Performing bank by
 Findley Reports, listed in Sheshunoff's Highest Rated Banks of America for
 2000 and a Blue Ribbon bank by Veribanc Report. During 1999 the bank was
 awarded a 5-Star financial institution by Bauer Financial Reports and a 5-Star
 financial institution by California Research Corporation.
     This press release may include forward-looking statements that involve
 inherent risks and uncertainties. A number of important factors could cause
 actual results to differ materially from those in the forward-looking
 statements. Those factors include fluctuations in interest rates, inflation,
 government regulations, the process of integrating acquisitions and economic
 conditions and competition in the geographic and business areas in which the
 Company conducts its operations.
 
 SOURCE  United Security Bank