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United Security Bancshares reports 3rd quarter net income of $ 2.6 million FRESNO , CA - October 20 , 2021. United Security Bancshares ( Nasdaq : UBFO ) today announced its unaudited financial results for the three and nine months ended September 30 , 2021. The Company recognized net income of $ 6.7 million , or $ 0.40 per basic and diluted share , for the nine months ended September 30 , 2021 , compared to net income of $ 7.0 million , or $ 0.41 per basic and diluted share for the nine months ended September 30 , 2020 . Third Quarter 2021 Highlights ( at or for the quarter ended September 30 , 2021 , except where noted ) " • Net income for the quarter increased 15.0 % to $ 2.6 million , compared to $ 2.3 million for the quarter ended September 30 , 2020. The increase is primarily the result of an increase of $ 1,470,000 in loan interest income and fees and an increase of $ 307,000 in investment securities income , partially offset by an increase of $ 449,000 to the provision for credit losses . Total assets increased 18.3 % to $ 1.29 billion , compared to $ 1.09 billion at December 31 , 2020 . Total loans , net of unearned fees , increased 23.7 % to $ 809.1 million , compared to $ 654.3 million at December 31 , 2020 . Total investments increased 92.0 % , or $ 79.3 million , to $ 165.5 million , compared to $ 86.2 million at December 31 , 2020 . Total deposits increased 20.8 % to $ 1.15 billion , compared to $ 952.7 million at December 31 , 2020 . The allowance for credit losses as a percentage of gross loans decreased to 1.13 % , compared to 1.30 % at December 31 , 2020. The decrease in the allowance for credit losses as a percentage of gross loans is from a change in loan mix . The loan mix change is primarily a result of an increase in residential mortgage loans purchased during the previous quarter . Net interest income before the provision for credit losses increased 22.9 % to $ 9.3 million for the quarter ended September 30 , 2021 , compared to $ 7.6 million for the quarter ended September 30 , 2020 . " Book value per share increased to $ 7.00 , compared to $ 6.93 at December 31 , 2020 . " " Net interest margin increased to 3.17 % from 3.02 % for the quarter ended September 30 , 2020 . Annualized average cost of deposits decreased to 0.17 % from 0.19 % for the quarter ended September 30 , 2020 . Net charge - offs totaled $ 509,000 , compared to net charge - offs of $ 157,000 for the quarter ended September 30 , 2020 . Capital position remains well - capitalized with a 9.96 % Tier 1 Leverage Ratio compared to 11.37 % as of December 31 , 2020 . Annualized return on average assets ( " ROAA " ) was 0.82 % , compared to 0.83 % for the quarter ended September 30 , 2020 . Annualized return on average equity ( " ROAE " ) was 8.62 % , compared to 7.61 % for the quarter ended September 30 , 2020 . Dennis Woods , President and Chief Executive Officer , stated : " We realized the full impact of the first phase of our 2021 Strategy in our earnings during the third quarter . As part of the second phase of the 2021 Strategy , we invested an additional $ 55 million in our mortgage loan portfolio , which will settle during the fourth quarter . Core net income , which is a non - GAAP measure , grew 9.3 % during 2021 , compared to the nine months ended September 30 , 2020 despite the challenging interest rate environment . Our outlook on growth and profitability for the remainder of 2021 remains upbeat . " Results of Operations Nine Months Ended September 30 , 2021 : Net income for the nine months ended September 30 , 2021 decreased $ 311,000 when compared to the nine months ended September 30 , 2020. The decrease is the result of the change in the fair value of junior subordinated debentures , partially offset by a reduced provision for credit losses , and an increase of $ 1,902,000 in loan interest income and fees . The change in fair value of junior subordinated debentures , which is caused by changes in LIBOR rates , was reflected as a $ 1.5 million gain for the nine months ended September 30 , 2020 , compared to a $ 691,000 loss for the nine months ended September 30 , 2021. The provision for credit losses was $ 1.7 million for the nine months ended September 30 , 2021 , compared to $ 2.1 million for the nine months ended September 30 , 2020. ROAE for the nine months ended September 30 , 2021 was 7.55 % , compared to 7.93 % for the nine months ended September 30 , 2020. ROAA was 0.75 % for the nine months ended September 30 , 2021 , compared to 0.93 % for the nine months ended September 30 , 2020 . 1