United Security Bancshares(UBFO) - 2024 Q2 - Quarterly Results

Financial Performance - Net income for the quarter ended June 30, 2024, decreased 2.72% to $4.3 million, compared to $4.4 million for the same quarter in 2023[1] - Net income for Q2 2024 was $4,297,000, compared to $4,161,000 in Q1 2024 and $4,417,000 in Q2 2023, reflecting a year-over-year decrease of 2.7%[34] - Core net income for the six months ended June 30, 2024, was $8,824 thousand, a decrease of 14.8% from $10,359 thousand in the same period of 2023[43] Interest Income and Margin - Net interest margin decreased to 4.28% for the quarter ended June 30, 2024, down from 4.35% for the same quarter in 2023[3] - Total interest income for Q2 2024 was $14,972,000, a slight increase from $14,879,000 in Q1 2024 but a decrease from $15,086,000 in Q2 2023[34] - Net interest income after provision for credit losses for Q2 2024 was $11,503,000, compared to $11,541,000 in Q1 2024 and $11,413,000 in Q2 2023[34] - Net interest income for the quarter ended June 30, 2024, was $11,522 thousand, compared to $11,714 thousand for the previous quarter, reflecting a decrease of 1.63%[39] Loans and Deposits - Total loans, net of unearned fees, increased 3.19% to $949.4 million, compared to $920.0 million at December 31, 2023[3] - Total deposits increased 0.2% to $1.01 billion, compared to $1.00 billion at December 31, 2023[3] - Total deposits increased by $2.1 million, or 0.2%, to $1.0 billion as of June 30, 2024, driven by a $32.5 million increase in interest-bearing deposits[20] - The net loan-to-deposit ratio as of June 30, 2024, was 92.80%, an increase from 90.04% at the end of 2023[41] Credit Losses and Nonperforming Assets - The allowance for credit losses as a percentage of gross loans decreased to 1.61%, compared to 1.70% at December 31, 2023[3] - The provision for credit losses was $192,000 for the six months ended June 30, 2024, down from $598,000 for the same period in 2023[24] - Non-performing assets increased by $844,000 to $17.3 million, representing 1.42% of total assets as of June 30, 2024[26] - Nonperforming loans to total gross loans ratio was 1.34% as of June 30, 2024, compared to 1.29% at the end of 2023[40] Efficiency and Expenses - The efficiency ratio for the quarter ended June 30, 2024, increased to 53.49%, compared to 45.76% for the same quarter in 2023[10] - Total noninterest expense for Q2 2024 was $6,973,000, up from $6,738,000 in Q1 2024 and $6,207,000 in Q2 2023[34] Shareholder Equity and Dividends - Shareholders' equity rose to $127.4 million, an increase of $4.8 million from $122.5 million at December 31, 2023, due to $8.5 million in net income[21] - A cash dividend of $0.12 per share was declared on June 25, 2024, payable on July 23, 2024[23] Asset Growth - Total assets increased to $1.22 billion as of June 30, 2024, from $1.21 billion at December 31, 2023[33] - Total assets as of June 30, 2024, were $1,219,822 thousand, a slight increase from $1,206,404 thousand on March 31, 2024[38]