United Security Bancshares (UBFO) has reported 4.83 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $1.56 million, or $0.09 a share in the quarter, compared with $1.63 million, or $0.10 a share for the same period last year. Revenue during the quarter went up marginally by 1.21 percent to $8.14 million from $8.04 million in the previous year period. Net interest income for the quarter rose 9.47 percent over the prior year period to $7.38 million. Non-interest income for the quarter fell 9.85 percent over the last year period to $0.74 million.
United Security Bancshares has made negative provision of $0.01 million for loan losses during the quarter, compared with a negative provision of $0.48 million in the same period last year.
Net interest margin improved 1 basis points to 4.15 percent in the quarter from 4.14 percent in the last year period. Efficiency ratio for the quarter improved to 60.68 percent from 61.49 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
“We have consistently exceeded our goals of loan growth and core earnings growth for the last three years, while maintaining strong liquidity and capital levels. Core earnings grew 10% in 2016 and our credit quality metrics continue to improve while our reserve levels remain strong. We plan to continue this momentum into 2017," said Dennis R. Woods, President and Chief Executive Officer of the Company. The Company defines core earnings as pretax income less gain or loss on sales, OREO expenses, provision or recovery of provision for loan loss, bonus expense, and gain or loss on fair value of financial liability.
Deposits stood at $676.63 million as on Dec. 31, 2016, up 8.82 percent compared with $621.80 million on Dec. 31, 2015.
Loans to deposits ratio was 84.21 percent for the quarter, up from 82.87 percent for the previous year quarter.
Noninterest-bearing deposit liabilities were $262.70 million or 38.82 percent of total deposits on Dec. 31, 2016, compared with $262.17 million or 42.16 percent of total deposits on Dec. 31, 2015.
Investments stood at $57.49 million as on Dec. 31, 2016, up 86.10 percent or $26.60 million from year-ago. Shareholders equity was at $96.36 million as on Dec. 31, 2016.
Return on assets moved down 11 basis points to 0.79 percent in the quarter from 0.90 percent in the last year period. At the same time, return on equity decreased 89 basis points to 6.38 percent in the quarter from 7.27 percent in the last year period.
Credit quality improves
United Security Bancshares recorded an improvement in credit quality during the quarter. Nonperforming assets moved down 41.17 percent or $13.21 million to $18.88 million on Dec. 31, 2016 from $32.09 million on Dec. 31, 2015. Nonperforming assets to total loans was 3.31 percent in the quarter, down from 6.23 percent in the last year period. Meanwhile, nonperforming assets to total assets was 2.40 percent in the quarter, down from 4.42 percent in the last year period. Book value per share was $5.77 for the quarter, up 3.41 percent or $0.19 compared to $5.58 for the same period last year.
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