United Security Bancshares reported consolidated unaudited earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported net income was $693,000 as compared with a net loss of $1,342,000 for the third quarter in 2008. Basic and diluted earnings per share were $0.06 compared with basic and diluted loss per share of $0.11 for the third quarter 2008. Return on average equity was 3.64% and the return on average assets 0.38% compared with a negative return on average equity was 6.48% and the negative return on average assets was 0.68% for the third quarter 2008. Net interest income for the 3rd quarter 2009 was $7.16 million, down $267,000 from the 3rd quarter of 2008 for a decrease of 3.6%. The net interest margin increased from 4.17% in the 3rd quarter 2008 to 4.61% in 2009. Income before income tax provision was $894,000 against loss before income tax provision $2.6 million for the same quarter a year ago period. For the nine-month period, the company reported net loss was $4,112,000 compared with net income of $3,228,000 in 2008. Negative return on average equity was 6.95% and the negative return on average assets was 0.74%. For the same period in 2008, return on average equity was 5.18% and return on average assets was 0.56%. For the nine months ended September 30, 2009 net interest income was $21,102,000, down $2,038,000 from $23,140,000 for the same period in 2008 for 8.81% decline. The net interest margin was 4.44% for the nine month period ended September 30, 2008 and 4.46% for the same period in 2009. Loss before income tax provision was $5.6 million against income before income tax provision of $4.5 million for the same period a year ago. Book value per share was $6.20 against $6.70 per share as on September 30, 2009. The company reported diluted loss per share of $0.33 compared to the diluted earnings per share of $0.26 for the same period a year ago.

United Security Bancshares - Conference Presentation Calls

United Security Bancshares announced that the Board of Directors has elected to defer interest payments on the Company's $15.0 million of junior subordinated debentures relating to its trust preferred securities beginning with the next interest payment date of October 1, 2009. The terms of the debentures and trust indentures allow for the Company to defer interest payments for up to 20 consecutive quarters without default or penalty. During the period that the interest deferrals are elected, the Company will continue to record interest expense associated with the debentures. Upon the expiration of the deferral period, all accrued and unpaid interest will be due and payable. During the deferral period, the Company is precluded from paying cash dividends to shareholders or repurchasing its stock. The election to defer interest payments on the junior subordinated debentures will allow the Company to maintain a stronger cash and liquidity position.