SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2004. |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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FOR THE TRANSITION PERIOD FROM TO |
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Commission file number: 000-32987 |
UNITED SECURITY BANCSHARES
(Exact name of registrant as specified in its charter)
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CALIFORNIA |
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91-2112732 |
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(State or other
jurisdiction of |
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(I.R.S. Employer |
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1525 East Shaw Ave., Fresno, California |
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93710 |
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(Address of principal executive offices) |
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(Zip Code) |
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Registrants telephone number, including area code (559) 248-4943 |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing for the past 90 days.
Yes ý No o
Aggregate market value of the Common Stock held by non-affiliates as of the last business day of the registrant’s most recently completed second fiscal quarter - June 30, 2003: $74,240,456
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act).
Yes o No ý
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Common Stock, no par value
(Title of Class)
Shares outstanding as of April 30, 2004: 5,511,539
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PART I. Financial Information |
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ITEM 1. Financial Statements |
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ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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ITEM 3. Quantitative and Qualitative Disclosures about Market Risk |
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Certifications |
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2
United Security Bancshares and Subsidiaries
Consolidated Statements of Condition - - Balance Sheets
March 31, 2004 (unaudited) and December 31, 2003
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(in thousands except shares) |
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March 31 |
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December 31, |
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Assets |
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Cash and due from banks |
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$ |
17,096 |
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$ |
22,480 |
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Federal funds sold and securities purchased under agreements to resell |
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24,150 |
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26,110 |
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Cash and cash equivalents |
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41,246 |
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48,590 |
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Interest-bearing deposits in other banks |
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7,265 |
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7,212 |
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Investment securities available for sale |
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79,313 |
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83,735 |
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Loans and leases |
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360,637 |
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345,662 |
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Unearned fees |
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(788 |
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(865 |
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Allowance for credit losses |
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(5,580 |
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(6,081 |
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Net loans |
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354,269 |
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338,716 |
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Accrued interest receivable |
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2,279 |
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2,110 |
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Premises and equipment - net |
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5,288 |
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4,567 |
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Other real estate owned |
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2,718 |
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2,718 |
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Intangible assets |
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1,860 |
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1,947 |
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Cash surrender value of life insurance |
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2,644 |
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2,621 |
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Investment in limited partnership |
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4,593 |
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4,689 |
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Deferred income taxes |
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2,846 |
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3,135 |
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Other assets |
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6,448 |
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6,548 |
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Total assets |
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$ |
510,769 |
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$ |
506,588 |
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Liabilities & Shareholders’ Equity |
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Liabilities |
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Deposits |
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Noninterest bearing |
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$ |
91,163 |
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$ |
94,597 |
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Interest bearing |
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352,548 |
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345,847 |
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Total deposits |
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443,711 |
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440,444 |
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Other borrowings |
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253 |
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345 |
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Accrued interest payable |
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701 |
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800 |
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Accounts payable and other liabilities |
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4,510 |
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4,963 |
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Trust Preferred securities |
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0 |
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15,000 |
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Junior subordinated debentures |
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15,464 |
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0 |
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Total liabilities |
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464,639 |
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461,552 |
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Commitments and Contingent Liabilities |
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Shareholders’ Equity |
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Common stock, no par value 10,000,000 shares authorized, 5,510,539 and 5,512,538 issued and outstanding, in 2004 and 2003, respectively |
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18,033 |
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18,227 |
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Retained earnings |
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27,906 |
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27,093 |
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Unearned ESOP shares |
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(221 |
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(313 |
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Accumulated other comprehensive income |
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412 |
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29 |
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Total shareholders’ equity |
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46,130 |
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45,036 |
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Total liabilities and shareholders’ equity |
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$ |
510,769 |
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$ |
506,588 |
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See notes to financial statements
3
United Security Bancshares and Subsidiaries
Consolidated Statements of Income and Comprehensive Income
Three Months Ended March 31, 2004 and 2003 (unaudited)
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(In thousands except shares and EPS) |
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2004 |
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2003 |
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Interest Income: |
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Loans, including fees |
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$ |
5,649 |
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$ |
5,795 |
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Investment securities – AFS – taxable |
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753 |
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811 |
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Investment securities – AFS – nontaxable |
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32 |
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34 |
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Federal funds sold and securities purchased under agreements to resell |
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60 |
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45 |
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Interest on deposits in other banks |
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72 |
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100 |
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Total interest income |
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6,566 |
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6,785 |
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Interest Expense: |
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Interest on deposits |
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1,261 |
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1,629 |
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Interest on other borrowings |
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195 |
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549 |
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Total interest expense |
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1,456 |
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2,178 |
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Net Interest Income Before Provision for Credit Losses |
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5,110 |
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4,607 |
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Provision for Credit Losses |
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243 |
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245 |
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Net Interest Income |
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4,867 |
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4,362 |
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Noninterest Income: |
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Customer service fees |
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979 |
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916 |
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Gain on sale of securities |
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37 |
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0 |
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Gain on sale of loans |
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0 |
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21 |
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Gain on sale of other real estate owned |
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12 |
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37 |
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Shared appreciation income |
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0 |
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11 |
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Other |
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76 |
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123 |
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Total noninterest income |
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1,104 |
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1,108 |
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Noninterest Expense: |
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