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United Security Bancshares reports 1st quarter net income of $ 1.4 million FRESNO , CA - April 21 , 2021. United Security Bancshares ( Nasdaq : UBFO ) today announced its unaudited financial results for the quarter ended March 31 , 2021. The Company recognized net income of $ 1,411,000 , or $ 0.08 per basic and diluted share for the quarter ended March 31 , 2021 , compared to net income of $ 2,754,000 , or $ 0.16 per basic and diluted share for the quarter ended March 31 , 2020 . First Quarter 2021 Highlights ( at or for the quarter ended March 31 , 2021 , except where noted ) " " " " Net income for the quarter was $ 1.41 million , representing a $ 1.34 million or 48.77 % decrease from $ 2.75 million for the quarter ended March 31 , 2020 . The decrease is primarily the result of the change in LIBOR rates between periods , causing a $ 1.03 million loss for the quarter ended March 31 , 2021 on the fair value of junior subordinated debentures , compared to a $ 1.50 million gain for the quarter ended March 31 , 2020 . Total assets increased 8.63 % to $ 1.19 billion , compared to $ 1.09 billion at December 31 , 2020 . Total loans , net of unearned fees , increased 3.08 % to $ 674.49 million , compared to $ 654.35 million at December 31 , 2020 . Total deposits increased 9.99 % to $ 1.05 billion , compared to $ 952.65 million at December 31 , 2020 . The allowance for credit losses as a percentage of gross loans decreased to 1.27 % , compared to 1.30 % at December 31 , 2020. The provision for credit losses totaled $ 375,000 for the quarter , compared to $ 1,707,000 for the quarter ended March 31 , 2020 . Net interest income after the provision for credit losses was $ 7,672,000 for the quarter ended March 31 , 2021 , compared to $ 7,026,000 for the quarter ended March 31 , 2020 . Book value per share decreased to $ 6.90 , compared to $ 6.93 at December 31 , 2020 . Net interest margin decreased to 3.16 % from 4.00 % for the quarter ended March 31 , 2020 . Annualized average cost of deposits decreased to 0.17 % from 0.33 % for the quarter ended March 31 , 2020 . Net charge - offs totaled $ 348,000 , compared to net charge - offs of $ 495,000 for the quarter ended March 31 , 2020 . Capital positions remain well - capitalized with a 11.02 % Tier 1 Leverage Ratio compared to 11.37 % as of December 31 , 2020 . Annualized return on average assets ( " ROAA " ) was 0.51 % , compared to 1.16 % for the quarter ended March 31 , 2020 . Annualized return on average equity ( " ROAE " ) was 4.82 % , compared to 9.37 % for the quarter ended March 31 , 2020 . " Over the last year , as our customers and communities struggled with the global COVID - 19 pandemic , the Company maintained a large cash reserve to support unanticipated business impacts , credit challenges , and to fund SBA PPP loans . As we are now seeing increases in vaccine availability , along with an improving employment and business environment , we have begun to execute on our 2021 strategy . The plan includes deploying $ 200 million of excess cash balances into the loan and investment portfolios . We anticipate the $ 200 million rebalancing will be completed by the end of the second quarter , " stated Dennis Woods , President and CEO of United Security Bancshares and United Security Bank . Woods added , " We recognized $ 1.4 million in net income during the first quarter of 2021 , compared to $ 2.8 million during the same period in 2020. The decrease is largely driven by the change in fair value on our junior subordinated debt . Our core net income , a non - GAAP measure , which excludes the fair value adjustment on junior subordinated debt and gain / loss on OREO , increased 21 % to $ 2.1 million between the first quarter 2020 and 2021. " Provided at the end of this Press Release is a reconciliation of Core Net Income , as a non - GAAP measure , to Net Income . This reconciliation excludes Non- Core items such as the Fair Value Adjustment for TRUPS and gain or loss on sale of other real estate owned ( OREO ) . Management believes that financial results are more comparative excluding the impact of such non - core items . Results of Operations Net income for the quarter ended March 31 , 2021 decreased $ 1,343,000 when compared to the quarter ended March 31 , 2020. The decrease is the result of the change in the fair value of junior subordinated debentures caused by a change in LIBOR rates . ROAE for the quarter ended March 31 , 2021 was 4.82 % , compared to 9.37 % for the quarter ended March 31 , 2020. ROAA was 0.51 % for the quarter ended March 31 , 2021 , compared to 1.16 % for the quarter ended March 31 , 2020 .