United Security Bancshares (Nasdaq: UBFO) at present announced its unaudited monetary outcomes for the three and 6 months ended June 30, 2019. Throughout the quarter, the company announced a net profit of $ four.097,000, or $ 0.24 per share, and a diluted share. ended June 30, 2019, compared to $ 3,392,000, or $ zero.20 per share for the primary and diluted share for the quarter ended June 30, 2018. The company recorded net revenue of $ 8,104,000 for the six months ended June 30, 2019, a rise of 24% in comparison with a net profit of $ 6,549,000 recorded for the six months ended June 30, 2018. Primary and diluted earnings per share rose to $ 0.48 for the six months ended June 30, 2019, compared to $ 0.39 for primary and diluted earnings
Second quarter 2019 Highlights (for the quarter ended June 30, 2019, until in any other case noted)  Net curiosity revenue after mortgage loss provisions elevated by $ 9,999,000 compared to $ 8,914,000 in the quarter ending June 30, 2018 and decreased from $ 9,454,000 in the earlier quarter.
Dennis Woods, President and Chi CEO stated: “The company continued the success of our current history in the second quarter of 2019. For the first time in the history of our firm, we are reporting a complete of over $ 1 billion in belongings. Throughout the second quarter, deposits elevated by $ 39.three million, leading to larger interest revenue from $ 6.58 per share to $ 6.69. We anticipate to benefit from historical progress and sit up for a very thrilling end in 2019.
ROAE for the six months ended June 30, 2014 was 14.57% when it was six months 12.69% ended June 30, 2018. ROAA was 1 , 71% over the six months ending June 30, 2019, in comparison with 1.57% in the six months ended June 30, 2018. The annual ROAE for the quarter ending 30 June 2019 was 14.53% compared to 12.95% for the similar interval in 2018. The annual ROAA was 1.71% for the quarter ending 30 June 2019 compared to 1.58% for the similar interval in 2018.  The typical annual value of deposits was 0.43% for the quarter ending June 30, 2019 and 0.30% for the quarter ending June 30, 2018. The rise in deposit prices is because of a rise in average balances and interest rates on deposits and money market accounts. Interest-bearing deposits grew by 23.78% on June 30, 2018, and averaged USD 522,382,000.
Net curiosity revenue after the six-month mortgage loss provision for June 30, 2019 was $ 18,753,000, or $ 1,325,000. or 7.60%, from $ 17.428,000 over the interval ended June 30, 2018. The corporate's net curiosity margin increased from four.26 per cent for the six months ended June 30, 2018 to 4.36 per cent for the six months ended June 30, 2019. As a results of the improve in mortgage yields, investment revenue and overnight funds, part of the value of deposits was compensated. The return on loans rose from 5.36% in the six months ended June 30, 2018 to six.01% in the six months ended June 30, 2019. Loan yield for the six months ended June 30, 2018 consists of $ 550,000 in premium write-downs for insurance coverage mortgage portfolio on account of insurance coverage winding-up. The increase in net interest revenue in comparison with the reference yr is due to larger interest rates on loans and a rise in overnight funds and Securities, partly offset by greater deposit prices and lower loan balances. Net curiosity revenue after the provision for credit losses for the quarter ended June 30, 2019 totaled $ 9,299,000, or $ 385,000, or four.32 % of the $ eight.914,000 net curiosity revenue for the interval ended June 30, 2018.
The six-month revenue ended June 30, 2019 totaled $ 3,252,000, equal to a $ 1,160,000 improve from $ 2,022,000 reported for the six months ended June 30, 2018. Customer Service Fees, representing most of the Firm's non-interest revenue, totaled $ 1,639,000 and $ 3071,000 throughout the six months ended June 30, 2019 and 2018. The decline in customer support charges is because of the closure of the Monetary Providers Department in the third quarter of 2018. Comparable comparable comparable interest revenue elevated mainly resulting from a achieve of $ 911,000 in the truthful value of juniors. Capital Loans (TRUP) for the six months ended June 30, 2016 compared to a lack of $ 661,000 for the similar interval ended June 30, 2018. The change in the truthful value of TRUPs, reflected in non-interest revenue, was resulting from trade fee modifications. LIBOR yield curve. The six-month non-interest revenue ended June 30, 2019 additionally consists of a loss of $ 114,000 on account of the demolition of the USB Real Property Funding Belief (REIT) accomplished in February 2019. , 2018 Consists of a $ 171,000 Profit Recognized for the Bank's Life Insurance coverage Demise Instances.
Non-interest revenue for the quarter ended June 30, 2019 was $ 1,729,000, reflecting a $ 560,000 improve in curiosity revenue from $ 1,169,000 reported for the quarter ending June 30, 2018. The rise in the period was primarily resulting from a achieve of $ 497,000 on TRUPs' truthful value as of June 30, 2019, in comparison with a lack of $ 192,000 in the quarter ending June 30, 2018. The change in the truthful value of lower-yielding bonds (TRUPs) aside from those reflected in curiosity revenue was mainly resulting from fluctuations in the LIBOR yield curve. Customer service fees have been $ 830,000 in the quarter ending June 30, 2019, to $ 1,zero20,000 in the quarter ending 3020 2018. The decrease was partly on account of the closure of the monetary providers division
At the end of June six months ended 30, 2019, non-interest bills totaled $ 10,609,000, which is $ 291,000 more than in the six months ended March 30, 2018, $ 10,318,000. At comparable costs, the improve in rates of interest throughout the yr was primarily because of a rise of $ 417,000 in professional charges, $ 40,000 in knowledge processing, and $ 175,000 at different prices, partly offset by a decrease of $ 439,000 in salaries and employee benefits. The increase in professional charges is especially as a consequence of the improve in litigation prices, the improve in knowledge processing mainly because of additional service charges, and the improve in other bills was as a result of the employer's compensation prices. The lower in wages and worker advantages is because of decrease prices for share rewards. Non-interest expenses for the six months ended June 30, 2018 embrace a refund of $ 121,000 in compensation for work expenses.
Non-interest expenses amounted to $ 5,262,000 in the quarter ended June 30, 2019. at the end of the quarter ending June 30, 2018. At comparable prices, quarterly comparable bills decreased primarily resulting from decrease wage and employee benefits because of decrease fairness prices.
The corporate recorded an revenue tax of $ 3,292,000 for the six months ended June 30, 2019, in comparison with $ 2,653,000 for the similar period in 2018. The efficient tax fee for the six months ended June 30, 2019 was 28.89% compared to 28.83% for the six months ended June 30, 2018. The corporate recorded a tax legal responsibility of $ 1,669,000 over the quarter ending June 30, 2019
At the finish of this press launch, the net revenue of the Core net non-GAAP measure is offered. This reconciliation doesn’t embrace non-core gadgets, similar to TRUP's truthful value adjustment, credit score loss provisions and profit from the sale of different owned properties (OREO). Therefore, Core Net Revenue would have been $ 7,457,000 for the six months ended June 30, 2019, which is about 23% more than the net profit of $ 6,065,000 for the similar period in 2016. Administration believes that financial results are more comparable besides for influence
Stability Sheet Evaluate
Complete belongings elevated by $ 73.435,000, or 7.87 % in the six months ended June 30, 2019, mainly on account of in a single day funds held by the Federal Reserve . This improve partly reflects the progress of deposits by $ 65,272,000 during the first six months of 2016. The mortgage stability decreased by $ 14,512,000 on June 30, 2019, and the Securities dropped by $ 6,453,000. Unfunded credit commitments elevated by $ 32,191,000 to $ 208,544,000 throughout the first six months of 2016. As a results of the introduction of ASU 2016-02, which entered into drive on 1 January 2019, the company started recording operating leasing belongings and operating lease liabilities. On June 30, 2019, the operating lease was $ 3,836,000 and the working lease was $ three,938,000.
Complete deposits elevated by $ 65,272,000, or eight.10 % to $ 870,915,000 during the six months ended June 30, 2019. was as a consequence of an increase of $ 66,000 in NYT, cash market and financial savings accounts and $ 11,452,000 in non-interest-bearing deposits, partly offset by a $ 12,379,000 lower in time period deposits. The entire volume of cash market and savings accounts elevated by 15.38% to $ 496,690,000 compared to June 30, 2019, in comparison with $ 430,491,000 on December 31, 2018. Non-interest-bearing deposits elevated by 3.91% to $ 304,172,000 compared to June 30, 2019, in comparison with $ 292,720,000 at December 31, 2018. As a result of the net improve, core deposits, which include a stability of interest-free deposits, NYT, money markets, savings and deposits, are under $ 250,000, a rise of $ 77,651,000.
Equity 30.6. 2019 was $ 113,338,000, or $ four,098,000 of share capital, $ 109,240,000 on December 31, 2018. The rise in fairness was attributable to the net profit for the financial yr, partly compensated by money dividend
The United Security Bancshares Board of Directors announced a dividend of $ 0.11 per share on June 25, 2019. The dividend might be paid on July 18, 2009 to shareholders who have been registered as of July 8, 2019. On March 26, 2016, United Security Bancshares executives introduced a dividend of $ zero.11 per share. The dividend was paid on April 17, 2019 to shareholders who have been registered on April 8, 2019. dividends are reported and / or the timing of such future dividends, if any.
The Company has recognized a mortgage lack of $ 10,000 in the reserve for the six months ended June 30, 2019. recoveries of $ 1 345 000 for the six months ended June 30, 2018. The net debt reimbursement was $ 47,000 for the six months ended June 30, 2019, compared to net recoveries of $ 483,000 for the six months ended June 30, 2018. booked a provision for credit loss of $ 4,000 for the quarter ended June 30, 2019, compared with the recoveries of $ 30 million in credit score loss provisions for the quarter ended June 30, 2018. Net Debt Recovery $ 31,000 Arter ended June 30, 2019 compared to net recoveries of $ 445,000 for the quarter ended June 30, 2019.
The company's mortgage loss provision was 1.48% of the mortgage portfolio as of June 30, 2019, compared to 1.43% on December 31, 2018. In figuring out the adequacy of credit score loss compensation, the judgment of the company management is a vital factor. Management believes that the compensation for credit score losses is enough on June 30, 2016.
Failed funds consisting of short-term loans, problematic debt rescheduling (TDR), different foreclosure properties (OREO) and loans over 90 days overdue and accrued interest rates fell by around $ 461,000 on December 31, 2018 and 30 Between June 20, 2019 and June 2019, it was $ 21,168,000. As of 31 December 2018, non-assets as a proportion of complete belongings decreased from 2.32% to 2.10% on 30 June 2019. The decline in unchanged belongings was primarily resulting from a decline in short-term loans and restructured loans. Unofficial loans fell by $ 415,000 between December 31, 2013 and June 30, 2016 to $ 11,637,000. The restructured loans fell by $ 876,000 between 31 December 2018 and 30 June 2019. OREO was $ 5,745,000 on June 30, 2019 and December 31, 2018.
About United Security Bancshares
United Security Bancshares (NASDAQ: UBFO) United Security Bank, founded in 1987. The headquarters of United Security Financial institution is situated in Fresno and it has 11 full-service branches in Fresno, Bakersfield, Campbell, Caruthers, Coaling, Firebaugh, Oakhurst, San Joaquin and Taft. In addition, United Security Financial institution makes use of business real estate, business credit and shopper loans. Further info could be found at www.unitedsecuritybank.com
Non-GAAP Monetary Measures
This press release and the related financial tables current a non-GAAP monetary measure (net profit earlier than non-core financing). Securities and Trade Commission Regulation G. In the accompanying financial tables, the Company has submitted this non-GAAP financial measure to the financial measure of the most immediately comparable accounting standards. The corporate's management believes that this non-GAAP monetary transaction supplies useful info on the company's efficiency and / or financial position for both buyers and administration. The corporate supplies buyers with this non-GAAP financial help that helps them analyze their historic working results. The non-GAAP financial measure demonstrates the firm's working results prior to the remedy of certain adjustments, and subsequently this non-GAAP financial measure shouldn’t be thought-about as an alternative choice to net revenue (loss), which is indicative of the company's operations as defined in accordance with GAAP. In contrast to other corporations, the company can calculate this non-GAAP financial measure.
This text might include forward-looking statements in the manner referred to in section 27A of the 1933 Securities Act, as amended, and Part 21E of the Securities Act of 1934, as amended, and the Firm intends to: that such statements are included in forward-looking statements beneath the Personal Securities Settlement Act 1995; recognizes that they don’t seem to be intently associated to historical or present information and sometimes embrace the phrases "believe", "wait", "anticipate", "intend", "plans", "estimates" or comparable phrases, or future or contingent verbs, reminiscent of "will", "would", "should", "could" or "can." The forward-looking statements are based mostly on management's information and belief at present and will not be guarantees of future efficiency and shouldn’t be relied upon to symbolize management's views from the day afterwards. Ahead-looking statements are subject to dangers and uncertainties and precise outcomes might differ materially from those introduced. The elements which will trigger such variations, a few of which are the Company's incapability to handle or predict, embrace: (1) modifications in the common economic and monetary market state of affairs, both nationally or regionally, (2) modifications in rates of interest, (three) banking laws, or – (four) increased competitors in the company market, influence on the implementation of enterprise plans, (5) loss of key personnel, (6) sudden credit score losses, (7) earthquakes or different pure disasters affecting the local financial system and / or the situation of property collateral (8) the effects of modifications and the capability to develop and keep secure and reliable electronic techniques; and 9) modifications in accounting insurance policies or procedures.
The Company isn’t required to evaluate these forward-looking statements to mirror future occasions or circumstances. For more info on these risks and uncertainties, see the Company's Annual Report for the yr ended December 31, 2018, and particularly the section “Management Discussion and Analysis of Financial Situation and Performance”. Readers should rigorously evaluate all info revealed by the firm on the Securities and Trade Commission