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)
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| Three Months Ended |
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| 2006 |
| 2005 |
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Earnings Summary: |
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Net Interest Income |
| $ | 10,735 |
| $ | 9,808 |
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Provision for Credit Losses |
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| 815 |
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| 796 |
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Non-Interest Income |
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| 1,284 |
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| 1,154 |
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Non-Interest Expense |
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| 5,745 |
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| 5,356 |
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Income Before Income Taxes |
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| 5,459 |
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| 4,810 |
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Income Tax Provision |
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| 1,779 |
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| 1,508 |
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Net Income |
| $ | 3,680 |
| $ | 3,302 |
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| Three Months Ended |
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| 2006 |
| 2005 |
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Basic and Diluted |
| $ | 0.57 |
| $ | 0.51 |
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Dividends Per Share |
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| 0.38 |
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| 0.35 |
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Balance Sheet Summary: |
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Total Assets |
| $ | 634,676 |
| $ | 602,394 |
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Total Earning Assets |
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| 575,739 |
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| 550,230 |
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Loans, Net of Unearned Discount |
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| 448,730 |
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| 406,426 |
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Allowance for Credit Losses |
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| 7,662 |
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| 7,081 |
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Total Deposits |
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| 435,476 |
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| 414,856 |
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Common Shareholders’ Equity |
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| 88,302 |
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| 82,344 |
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Book Value Per Share |
| $ | 13.77 |
| $ | 12.84 |
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Average Balance Sheet Data: |
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Total Assets |
| $ | 629,677 |
| $ | 595,467 |
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Total Earning Assets |
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| 571,168 |
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| 543,214 |
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Loans, Net of Unearned Discount |
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| 443,548 |
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| 405,322 |
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Total Deposits |
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| 436,140 |
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| 409,236 |
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Common Shareholders’ Equity |
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| 88,490 |
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| 82,922 |
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Performance Ratios: |
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Return on Average Assets |
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| 2.37 | % |
| 2.25 | % |
Return on Common Equity |
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| 16.87 | % |
| 16.15 | % |
Average Shares Outstanding: |
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Basic and Diluted |
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| 6,424,412 |
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| 6,429,428 |
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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)