United Security Bancshares Inc. reported a loss of $1.3 million in third quarter as the Thomasville, Ala., company continued to be plagued by problem real estate loans.
The $639 million-asset company said after stock markets closed on Monday that while net interest and noninterest income increased year over year, a 63% increase in its provision for loan losses and $3 million impairment charge on foreclosed properties dragged down earnings. The company reported a profit of $351,000 in last year's third quarter, though those results are subject to change pending the results of a restatement.
The company also announced Monday that James F. House, a former division president at BancTrust Financial Group Inc. in Mobile, had taken over as its president and CEO House replaced R. Terry Phillips, who resigned in June after the company announced that it was restating its 2010 results and that it expects to report a loss of $3.2 million for the year.
House also serves as president and CEO of the subsidiary, First United Security Bank and as a member of the boards for the company and bank, United Security said in a press release. As part of his employment, House received a one-time grant of 5,000 United Security common shares and is eligible to receive up to an additional 5,000 shares based on certain conditions.
United Security's stock was trading at $5.07 midday Tuesday. The shares have lost nearly 60% of their value since the start of the year.