United Security Bancshares (USB) reported its financial results for the third quarter and nine months ended September 30, 2024, reflecting a mixed performance compared to the previous fiscal period. The company’s net income for Q3 2024 was $3.8 million, a slight decrease of 0.62% from $3.9 million in Q3 2023. For the nine months ended September 30, 2024, net income totaled $12.3 million, down from $14.4 million in the same period of 2023.
Total interest income for Q3 2024 increased to $15.8 million, up from $15.3 million in Q3 2023, while interest and fees on loans rose to $14.4 million, a 4.64% increase from $13.8 million. However, net interest income before provision for credit losses decreased by 0.91% to $11.8 million. The provision for credit losses recorded in Q3 2024 was $1.6 million, contrasting with no provision in Q3 2023.
Total assets as of September 30, 2024, were $1.26 billion, an increase from $1.21 billion at the end of 2023, but a decrease from $1.27 billion a year earlier. Total deposits rose to $1.07 billion, up 6.0% from $1.00 billion at the end of 2023, but down 7.8% from $1.15 billion a year prior. The company’s cash and cash equivalents increased to $47.9 million, compared to $40.8 million at the end of 2023.
USB's net loans increased to $958.6 million as of September 30, 2024, a 6.0% rise from $904.4 million at the end of 2023. The loan portfolio saw growth in commercial and industrial loans, real estate mortgage loans, and agricultural loans, while real estate construction loans decreased. The allowance for credit losses was $16.5 million, representing 1.69% of outstanding loan balances.
Noninterest income for Q3 2024 surged to $2.0 million, a significant increase from $114,000 in Q3 2023, driven by gains on fair value of marketable equity securities and junior subordinated debentures. Noninterest expenses rose to $7.1 million, primarily due to higher data processing expenses and salaries.
The company declared a cash dividend of $0.12 per share on September 24, 2024, and maintained a stock repurchase program of up to $3.0 million, with no shares repurchased during the reporting period. USB's Tier 1 Capital Ratio improved to 12.44% as of September 30, 2024, from 11.82% at the end of 2023, indicating a strong capital position.
About UNITED SECURITY BANCSHARES
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