Written by The Business Journal Staff
United Security Bancshares, parent company of Fresno’s United Security Bank, reported net income of $2.75 million for the first quarter, down 31% compared to the same time last year.
The decrease in net income is a result of a reduction in interest income related to lower interest rates and a provision for loan losses.
The provision for credit losses totaled $1.7 million, compared to $6,000 for the quarter ended March 31, 2019. “The increase in provision reflects an expectation of significant deterioration in the macro-economic environment as a result of the impact of COVID-19, net charge-offs, and loan growth,” according to a news release.
Dennis Woods, president and CEO, stated: “Although we saw growth in both our loan and deposit portfolios during this first quarter, we cannot predict the full impact COVID-19 will have on our markets and economy. Our strong credit quality, ample liquidity, and capital level provide a solid foundation as we navigate through these uncertain times.”
The bank’s total assets increased by 2.12% in the quarter, for a total of $977.24 million.