United Security Bancshares (UBFO) has reported a marginal increase of a 0.11 percent in profit for the quarter ended Mar. 31, 2017. The company has earned $1.77 million, or $0.10 a share, compared with $1.77 million or $0.10 a share, a year ago.
Revenue during the quarter went down marginally by 0.95 percent to $8.12 million from $8.19 million in the previous year period. Net interest income for the quarter rose 9.33 percent over the prior year period to $7.23 million. Non-interest income for the quarter fell 41.77 percent over the last year period to $0.91 million.
United Security Bancshares has made provision of $0.02 million for loan losses during the quarter, compared with a negative provision of $0.02 million in the same period last year.
Net interest margin contracted 2 basis points to 4.10 percent in the quarter from 4.12 percent in the last year period. Efficiency ratio for the quarter improved to 60.88 percent from 61.49 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
Dennis Woods, president and chief executive officer, added: "There is an important matter not apparent to the casual reader of this earnings release that I want to point out. Excluding the Fair Value Adjustment for Trust Preferred Securities ("TRUPS"), net income was $1,972,600 for the three months ended March 31, 2017, an increase of approximately 27% compared to net income of $1,554,200 for the three months ended March 31, 2016." Mr. Woods explained that "the TRUPS Fair Value Adjustment is not part of Core Income and depending upon market rates, can 'add to' or 'subtract from' Core Income and mask Core Income change."
Loans to deposits ratio was 81.55 percent for the quarter, down from 84.21 percent for the previous year quarter.
Investments stood at $55.35 million as on Mar. 31, 2017. Shareholders equity was at $98.50 million as on Mar. 31, 2017.
Return on assets moved down 6 basis points to 0.92 percent in the quarter from 0.98 percent in the last year period. At the same time, return on equity decreased 48 basis points to 7.34 percent in the quarter from 7.82 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 36.17 percent or $11.28 million to $19.91 million on Mar. 31, 2017 from $31.19 million on Mar. 31, 2016. Nonperforming assets to total loans was 3.63 percent in the quarter, down from 6.02 percent in the last year period. Meanwhile, nonperforming assets to total assets was 2.54 percent in the quarter, down from 4.20 percent in the last year period.
Book value per share was $5.84 for the quarter, up 0.86 percent or $0.05 compared to $5.79 for the same period last year.
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