United Security Bancshares(UBFO) - 2024 Q1 - Quarterly Results

Financial Performance - For the quarter ended March 31, 2024, United Security Bancshares reported net income of $4.2 million, a decrease of 31.15% from $6.1 million for the same period in 2023[1]. - Net income decreased to $4,161,000 for the three months ended March 31, 2024, down 32% from $6,125,000 in the prior year[20]. - Net income for the quarter ended March 31, 2024, decreased 32.1% to $4.2 million, compared to $6.1 million for the same period in 2023[28]. - The return on average assets was 1.40% for the three months ended March 31, 2024, down from 1.95% in the prior year[24]. Interest Income and Margin - Total interest income for the three months ended March 31, 2024, was $14,879,000, an increase of 2.2% from $14,559,000 in the same period of 2023[20]. - Net interest income before the provision for credit losses totaled $11.7 million, down 9.51% from $12.9 million in Q1 2023[7]. - The net interest margin decreased from 4.51% in Q1 2023 to 4.35% in Q1 2024 due to rising deposit and borrowing costs[7]. - The net interest margin for the period was 4.35%, slightly down from 4.51% in the previous year[21]. - Net interest margin decreased to 4.35% for the quarter ended March 31, 2024, compared to 4.51% for the quarter ended March 31, 2023[26]. Expenses - Noninterest expense rose to $6.7 million, an increase of 8.06% from $6.2 million in the same quarter last year, driven by higher professional fees and salaries[8]. - Total noninterest expense increased to $6,738,000, up 8% from $6,240,000 in the same period of 2023[20]. - The efficiency ratio rose to 52.96% for the three months ended March 31, 2024, compared to 43.48% in the prior year, indicating decreased operational efficiency[24]. - The efficiency ratio for the quarter ended March 31, 2024, increased to 52.96%, compared to 43.48% for the same period in 2023[30]. Assets and Equity - Total assets decreased by $4.6 million, or 0.4%, from December 31, 2023, to March 31, 2024, with gross loan balances increasing by $9.6 million[10]. - Total assets as of March 31, 2024, were $1,206,404,000, a decrease from $1,261,194,000 in the same period last year[23]. - Shareholders' equity increased to $124.2 million as of March 31, 2024, up from $122.5 million at the end of 2023, primarily due to net income[12]. Loans and Commitments - Average loans decreased to $904,392,000 from $947,453,000 year-over-year, reflecting a decline of 4.5%[21]. - Total loans, net of unearned fees, increased 1.02% to $929.4 million, compared to $920.0 million at December 31, 2023[26]. - Unfunded loan commitments rose from $183.5 million at December 31, 2023, to $190.3 million at March 31, 2024[10]. Credit Losses - The provision for credit losses was $173,000, compared to a reversal of $493,000 in the same period last year, indicating a shift towards increased credit loss provisions[20]. - The provision for credit losses was $173,000 for the quarter ended March 31, 2024, compared to a reversal of provision of $493,000 for the same period in 2023[35]. - The allowance for credit losses was 1.66% of the loan portfolio at March 31, 2024, slightly down from 1.70% at December 31, 2023[13]. Noninterest Income - Noninterest income totaled $1,053,000, a decrease of 27.3% from $1,448,000 in the prior year[20]. - Noninterest income for the quarter ended March 31, 2024, totaled $1.1 million, a decrease of $395,000 compared to $1.4 million for the same period in 2023[29]. Deposits - The annualized average cost of deposits increased to 0.72% in Q1 2024 from 0.48% in Q1 2023, while average interest-bearing deposits decreased by 12.9% from $689.7 million to $601.0 million[3]. - Total deposits decreased 4.8% to $955.9 million during the quarter ended March 31, 2024, compared to $1.0 billion at December 31, 2023[32]. Other - The effective tax rate for Q1 2024 was 28.9%, compared to 29.2% for the same period in 2023[9]. - Book value per share increased to $7.17, compared to $7.14 at December 31, 2023[26]. - Non-performing assets decreased to $16.3 million, representing 1.35% of total assets as of March 31, 2024, down from 1.36% at December 31, 2023[36]. - The Company declared a cash dividend of $0.12 per share, payable on April 22, 2024[34].