Exhibit 99.1
United Security Bancshares, Inc. Announces Quarterly and Six Month Earnings
United Security Bancshares, Inc. (Nasdaq: USBI-news) today reported net
income for the quarter ended June 30, 2003, of $2,509,000 compared to $2,157,000
for the same period of 2002, a 16% increase. On a diluted per share basis, net
income for the second quarter of 2003 was $0.78, compared to $0.66 for the same
period of 2002, an 18% increase.
The primary factor for the increase in net income over the same period
last year was the improved operating performance of the Company's finance
company subsidiary, Acceptance Loan Company (ALC). Overall, ALC has
experienced significantly less charge-offs during 2003 than 2002 as a result
of improved monitoring of the credit portfolio at ALC. Net income at ALC for
the six months ended June 30, 2003, was $957,000 compared to $444,000 for the
same period of 2002.
As a result of this increased performance, return on average assets rose
to 1.79% and return on average equity increased to 14.32%.
At June 30, 2003, total assets amounted to $541,816,000, a 3% increase
over June 30, 2002. Total deposits showed an increase of $14,301,000, or 4%.
Loan and lease receivables, net of unearned discount, increased 5% to
$360,532,000, and shareholders' equity totaled $69,342,000, which represented
a book value of $21.56 per share. Dividends remain at $0.33 per share for the
second quarter.
UNITED SECURITY BANCSHARES, INC.
(Unaudited Financial Highlights)
(In thousands, except per share amounts and percentages)
3 Months Ended 6 Months Ended
June 30 June 30
2003 2002 2003 2002
Earnings Summary:
Net Interest Revenue 8,527 7,795 16,585 15,401
Provision for
Credit Losses 1,007 1,172 1,998 2,008
Non-Interest Revenue 1,384 1,262 2,696 2,319
Non-Interest Expense 5,285 4,894 10,368 9,752
Income Before
Income Taxes 3,619 2,991 6,915 5,960
Income Tax Provision 1,110 834 2,065 1,674
Net Income 2,509 2,157 4,850 4,286
Earnings Per Share:
Basic 0.78 0.66 1.51 1.30
Diluted 0.78 0.66 1.51 1.30
Dividends Per Share 0.33 0.30 0.66 0.60
June 30,
2003 2002
Balance Sheet Summary:
Total Assets $541,816 $523,653
Total Earnings Assets 499,857 490,730
Loan and Lease Receivables,
Net of Unearned Discount 360,532 342,398
Allowance for Credit Losses 6,536 6,036
Total Deposits 367,555 353,254
Common Shareholders' Equity 69,342 64,328
Book Value Per Share $21.56 $19.98
Average Balance Sheet Data:
Total Assets $545,492 $528,667
Total Earnings Assets 507,907 498,367
Loan and Lease Receivables,
Net of Unearned Discount 358,702 343,719
Total Deposits 365,286 360,958
Common Shareholders' Equity 68,283 64,700
As of
June 30,
2003 2002
Performance Ratios:
Return on Average Assets 1.79% 1.63%
Return on Common Equity 14.32% 13.36%
Net Interest Margin 6.58% 6.23%
Average Shares Outstanding
Basic 3,215,559 3,290,966
Diluted 3,215,559 3,290,966
SOURCE: United Security Bancshares, Inc.
CONTACT: Larry Sellers or Robert Steen
United Security Bancshares, Inc., 334-636-5424