$FUSB

UNITED SECURITY BANCSHARES INC

CIK:0000717806|SEC Filings

Interim Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest income:
Interest and fees on loans	$ 12,554	$ 12,989	$ 25,045	$ 25,230
Interest on investment securities	1,719	1,335	3,406	2,747
Interest on deposits in banks	300	451	898	739
Other	84	79	248	156
Total interest income	14,657	14,854	29,597	28,872
Interest expense:
Interest on deposits	4,916	5,125	10,526	9,994
Interest on borrowings	241	253	356	505
Total interest expense	5,157	5,378	10,882	10,499
Net interest income	9,500	9,476	18,715	18,373
Provision for credit losses	939	2,717	1,193	3,245
Net interest income after provision for credit losses	8,561	6,759	17,522	15,128
Non-interest income:
Net gain on sales and prepayments of investment securities	455	0	458	2
Revenue from Contract with Customer, Including Assessed Tax	$ 277	$ 278	$ 560	$ 566
Revenue, Product and Service [Extensible Enumeration]	us-gaap:ServiceMember	us-gaap:ServiceMember	us-gaap:ServiceMember	us-gaap:ServiceMember
Lease income	$ 272	$ 269	$ 541	$ 553
Other income, net	314	302	599	603
Total non-interest income	1,318	849	2,158	1,724
Non-interest expense:
Salaries and employee benefits	3,898	3,945	7,712	7,681
Net occupancy and equipment	1,016	937	1,987	1,812
Computer services	457	421	794	833
Insurance expense and assessments	408	366	823	750
Fees for professional services	310	470	638	685
Other expense	1,554	1,305	3,030	2,601
Total non-interest expense	7,643	7,444	14,984	14,362
Income before income taxes	2,236	164	4,696	2,490
Provision for income taxes	483	9	998	563
Net income	$ 1,753	$ 155	$ 3,698	$ 1,927
Basic net income per share	$ 0.31	$ 0.03	$ 0.65	$ 0.33
Diluted net income per share	0.31	0.03	0.64	0.32
Dividends per share	$ 0.07	$ 0.07	$ 0.14	$ 0.14

Interim Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 3,698	$ 1,927
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	930	838
Provision for credit losses	1,193	3,245
Deferred income tax expense	281	119
Reclassification of unrealized gains on terminated derivative contracts	(96)	(97)
Stock-based compensation expense	389	381
Net accretion of securities	(527)	(312)
Amortization of intangible assets	0	37
Net gain on sales and prepayments of investment securities	(458)	(2)
Net loss on premises and equipment and other real estate	213	14
Changes in assets and liabilities:
Increase in cash surrender value of bank owned life insurance	(177)	(142)
Increase in accrued interest receivable	(64)	(279)
Decrease in other assets	98	268
Increase (decrease) in accrued interest expense	(1,000)	230
Increase (decrease) in other liabilities	320	(574)
Net cash provided by operating activities	4,800	5,653
Cash flows from investing activities:
Net decrease in federal funds sold and securities purchased under reverse repurchase agreements	0	877
Purchases of investment securities, available-for-sale	(25,433)	(9,645)
Proceeds from the sale of investment securities, available-for-sale	7,087	0
Proceeds from maturities and prepayments of investment securities, available-for-sale	19,898	24,993
Proceeds from maturities and prepayments of investment securities, held-to-maturity	84	121
Net increase in Federal Home Loan Bank stock	(988)	(485)
Net (increase) in loans and leases held for investment	(9,251)	(51,052)
Proceeds from the sale of premises and equipment, other real estate and repossessions	544	628
Purchases of premises and equipment	(1,815)	(2,321)
Net cash used in investing activities	(9,874)	(36,884)
Cash flows from financing activities:
Net increase (decrease) in deposits	(30,006)	14,289
Net increase in short-term borrowings	25,000	25,000
Net share-based compensation transactions	(108)	20
Repurchases of common stock	(3,641)	(535)
Dividends paid	(781)	(804)
Net cash (used in) provided by financing activities	(9,536)	37,970
Net increase (decrease) in cash and cash equivalents	(14,610)	6,739
Cash and cash equivalents, beginning of period	73,547	47,216
Cash and cash equivalents, end of period	58,937	53,955
Supplemental disclosures:
Interest	11,882	10,269
Income taxes	1,540	458
Non-cash transactions:
Assets acquired in settlement of loans	502	768
Reissuance of treasury stock as compensation	$ 0	$ 434

Interim Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands

Jun. 30, 2026

Dec. 31, 2025

ASSETS

Cash and due from banks

$ 11,707

$ 9,401

Interest-bearing deposits in banks

47,230

64,146

Total cash and cash equivalents

58,937

73,547

Federal funds sold and securities purchased under reverse repurchase agreements

4,850

Investment securities available-for-sale, at fair value (amortized cost $168,469 and $169,037; net of allowance for credit losses of $- and $-)

165,578

168,075

Investment securities held-to-maturity, at amortized cost, net of allowance for credit losses of $- and $-, (fair value 2026 - $364, 2025 - $449)

381

465

Federal Home Loan Bank stock, at cost

1,779

791

Loans and leases held for investment

860,635

853,018

Less: allowance for credit losses on loans and leases

10,882

10,704

Net loans and leases held for investment

^[1]

849,753

842,314

Premises and equipment, net of accumulated depreciation

27,212

26,284

Cash surrender value of bank-owned life insurance

17,555

17,378

Accrued interest receivable

3,980

3,916

Goodwill and core deposit intangible, net

7,435

Other real estate owned

175

256

Other assets

9,984

9,474

Total assets

1,147,619

1,154,785

LIABILITIES AND SHAREHOLDERS’ EQUITY

Non-interest-bearing

149,800

153,809

Interest-bearing

848,156

874,153

Total deposits

997,956

1,027,962

Accrued interest expense

1,526

2,526

Other liabilities

7,870

7,704

Short-term borrowings

25,000

Long-term borrowings

10,982

10,945

Total liabilities

1,043,334

1,049,137

Shareholders’ equity:

Common stock, par value $0.01 per share, 10,000,000 shares authorized; 8,019,126 and 7,947,303 shares issued, respectively; 5,523,209 and 5,699,696 shares outstanding, respectively

Additional paid-in capital

16,411

16,005

Accumulated other comprehensive loss, net of tax

(1,700)

(780)

Retained earnings

124,166

121,249

Less treasury stock: 2,495,917 and 2,247,607 shares at cost, respectively

(34,672)

(30,905)

Total shareholders’ equity

104,285

105,648

Total liabilities and shareholders’ equity

$ 1,147,619

$ 1,154,785

[1]

Loans are presented net of unearned income and unamortized deferred fees and costs of $0.4 million and $0.6 million as of June 30, 2026 and December 31, 2025, respectively. Loans are also presented net of unamortized premiums associated with indirect loans of $17.0 million and $15.6 million as of June 30, 2026 and December 31, 2025, respectively.