Saturday, November 6, 2010

United Security Bancshares, Inc. Solid Growth
"United Security reported solid growth in its core operations in the third quarter, but our earnings remain below historical returns due to the continued weakness in the economy and the associated higher costs of non-performing loans, foreclosed properties and provision for loan losses," - R. Terry Phillips, President and CEO of United Security Bancshares, Inc. �'We reported growth in our net interest income and non-interest income, higher net interest margin and a lower provision for loan losses compared with the third quarter of last year; however, we took a $1.6 million impairment charge during the quarter to reflect a decline in real estate values on certain other real estate owned properties. �We remain focused on improving our asset quality and believe that this will play a key part in building future earnings."

"The decrease in our loan loss provision was due to a slowdown in new problem loans, lower charge-offs and higher reserves compared with the third quarter of last year," stated Mr. Phillips. "We have experienced a decline in non-accrual loans and 90 day past due loans since last year. Our biggest risk factor for future earnings growth relates to problem loans, so we remain focused on minimizing potential losses by moving problem loans through the collection, foreclosure and disposition process to minimize future loan losses. This strategy, in part, accounts for the higher level of real estate acquired in settlement of loans."


IN OTHER WORDS.. they are going to foreclose more to increase revenue??? UHUM didnt' they get paid 2 or more times for these "problems"? Isn't there an investigation into fraud on loans and foreclosure proceedings? (maybe they are rushing to avoid moratorium?) AND LAST QuESTION: WHAT about requirements to modify, to contact borrowers and try to salvage the:" loan" ?

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