United Security Bancshares operates a commercial banking subsidiary First United Security Bank. First United Security Bank has banking offices located in Thomasville Coffeeville Fulton Gilbertown Grove Hill Butler Jackson Brent Centreville Woodstock Harpersville Bucksville and Calera Alabama United Security Bancshares Inc. has a market cap of $81.7 million; its shares were traded at around $13.57 with a P/E ratio of 17.2 and P/S ratio of 1.4. The dividend yield of United Security Bancshares Inc. stocks is 8%.
Highlight of Business Operations:Total non-interest income decreased $114,000, or 8.4%, for the first quarter of 2009. Service charges and fees on deposit accounts decreased $130,000. Income on bank-owned life insurance increased $4,000, while commissions on credit insurance increased $70,000. Letters of credit and commitment fees decreased $11,000, and all other fees and charges decreased $47,000.
Total non-interest expense decreased $9,000, or 0.2%, in the first quarter of 2009. Salary and employee benefits decreased $69,000; occupancy expense increased $6,000; advertising expense decreased $4,000; stationery and supplies expense increased $13,000; telephone and data circuit expense increased $12,000; and legal and attorney fees increased $188,000.
In comparing financial condition at December 31, 2008 to March 31, 2009, total assets increased $10.1 million to $678.1 million, while liabilities increased $9.6 million to $599.0 million. Shareholders equity increased $440,000 as a result of an increase in other comprehensive income of $803,000, offset by an increase in treasury stock of $3,000 and dividends paid in excess of earnings of $360,000.
Investment securities decreased $4.2 million, or 2.3%, during the first three months of 2009. Investments provide the Company with a stable form of liquidity while maximizing earnings yield. Loans, net of unearned income, decreased $1.6 million, from $408.0 million at December 31, 2008, to $406.4 million at March 31, 2009, due to the slowdown in construction and real estate development in the trade areas served by the Company. Deposits increased $10.5 million, or 2.2%, during the first three months of 2009.
At March 31, 2009, the allowance for loan losses was $8.7 million, or 2.2% of loans net of unearned income, compared to $7.8 million, or 1.8% of loans net of unearned income, at March 31, 2008, and $8.5 million, or 2.1% of loans net of unearned income, at December 31, 2008. The coverage ratio of the allowance for loan losses to non-performing assets increased to 23.0% at March 31, 2009, compared to 22.6% at December 31, 2008. Loans on non-accrual declined $688,000, accruing loans past due 90 days or more declined $1.7 million and real estate acquired in settlement of loans increased $2.5 million, as compared to December 31, 2008.
Impaired loans totaled $20.2 million, $24.4 million and $5.6 million as of March 31, 2009, December 31, 2008 and March 31, 2008, respectively. Impaired loans at March 31, 2009 consist mainly of seven commercial real estate loans and three residential development loans. Based on managements analysis, these loans are considered impaired based on current collateral values. There was approximately $1.8 million, $1.6 million and $1.3 million in the allowance for loan losses specifically allocated to these impaired loans at March 31, 2009, December 31, 2008 and March 31, 2008, respectively.
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