United Security Bancshares Inc. of Thomasville, Ala., announced late Thursday that it discovered evidence of potential fraud at one of its subsidiaries.
The $659 million-asset company said that it has launched an internal investigation after detecting “irregularities in certain loan transactions” at its Acceptance Loan Co. subsidiary.
“The irregularities appear to be primarily limited to two ALC branches and largely related to the making of improper or fraudulent loans and the improper or fraudulent handling of repossessed automobiles,” the company said in a press release.
The company has identified $3.8 million in potential losses.
"I want to assure our shareholders that we are taking this matter extremely seriously and are working diligently, along with outside experts, to perform a full and complete investigation,” R. Terry Phillips, United Security’s president and chief executive officer said in the press release.
The company’s shares have declined steadily over the past month, falling roughly 10% to a near-52 week low just under $27 a share.
