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
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.
