United Security Bancshares has reported a net income of $583,000, or $0.10 per diluted share, for the fourth quarter of 2008, compared with $1.9 million, or $0.31 per diluted share, for the fourth quarter of 2007.
Net interest income decreased 8.5% to $8.8 million in the fourth quarter of 2008, compared with $9.7 million in the fourth quarter of 2007.
For the year ended December 31, 2008, the company has reported that its net income rose to $5.4 million, or $0.89 per diluted share, compared with $349,000, or $0.06 per diluted share, for the year ended December 31, 2007.
For the 12 months ended December 31, 2008, net interest income decreased 13.1% to $35.2 million, compared with $40.5 million for the same period in 2007.
Terry Phillips, president and CEO of United Security Bancshares, said: Our fourth quarter earnings did not reach last year’s levels due primarily to declining interest rates in 2008 that reduced our interest income on loans, our largest revenue source. The Federal Reserve lowered the funds rate by 4.25% during 2008 and that had a direct impact on the rates we charge on loans. We also experienced increased competition for deposits in the second half of 2008 from certain banks in our market that resulted in higher deposit costs than normal.
