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FORM 10-QSB/A
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
( X ) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1995
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OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
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Commission File No. 000-18561
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UNITED SECURITY BANCORPORATION
Washington 91-1259511
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(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
N. 9506 Newport Highway, Spokane, WA 99218-1200
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (509) 467-6949
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Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. YES X NO
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The issuer has one class of capital stock, that being common stock. On May
12, 1995, there were 2,604,880 shares of such stock outstanding.
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UNITED SECURITY BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENT OF INCOME (CONTINUED)
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<CAPTION>
Three Months Ended March 31,
1995 1994
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<S> <C> <C>
NONINTEREST EXPENSES
Salaries and wages 746,427 698,547
Employee benefits 180,324 184,267
Occupancy expense, net 77,610 69,634
Net cost of operation of other
real estate 39,596
Writedowns and losses on foreclosed
real estate 0 0
Equipment expense 110,982 129,195
Other operating expense 554,151 528,944
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TOTAL NONINTEREST EXPENSES 1,709,090 1,610,587
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INCOME BEFORE INCOME TAXES 903,166 700,555
FEDERAL INCOME TAX EXPENSE 361,600 235,500
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NET INCOME $ 541,566 $ 465,055
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Per share amounts:
Earnings per common share:
Income before cumulative effect
of a change in accounting principle $ .34 $ .36
Cumulative effect on prior years (to
December 31, 1991) of changing to
a different income tax method 0.00 0.00
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NET INCOME $ .34 $ .36
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Cash dividends paid or declared per share $ 0.00 $ 0.00
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Average shares outstanding 1,604,880 1,305,585
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See Accompanying Notes to Consolidated Financial Statements.
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UNITED SECURITY BANCORPORATION AND SUBSIDIARIES
NET INCOME
Net income for the first quarter of 1995 was $541,000, compared to $465,000 for
the same period a year ago. The increase is primarily due to the increase in
net interest income from the first quarter of 1994.
It is anticipated that USB Insurance will show a minimal net profit by year-end
1995 due to the cessation of amortization of noncompetition agreements with
management employees in the second quarter of 1995. The write-off of accounts
will continue into 1997.
CAPITAL REQUIREMENTS
The Company's two bank subsidiaries are subject to regulatory capital
requirements of a minimum of 5% leverage ratio. 6% for Tier 1 capital and a
minimum of 10% for Tier 1 and Tier 2 in total in order to be classified as Well
Capitalized. Both bank subsidiaries met or exceeded regulatory capital
requirements and were well capitalized at March 31, 1995.
On March 27, 1995 a registration statement was filed with the Securities and
Exchange Commission for a public offering of 1,000,000 shares of common stock of
the Company to support the continued growth of the Company and its banking and
nonbanking subsidiaries. This offering was completed on May 12, 1995 (subject
to the possible future exercise of underwriters' purchase of an additional
150,000 shares) and yielded net proceeds to the Company of approximately $7.4
million.
On March 19, 1995, Joan K. Goldberg, Executive Vice President and Chief
Financial Officer of United Security Bank succumbed to cancer. USB is the
beneficiary of two life insurance policies. USB anticipates the receipt of the
net proceeds in the second quarter of 1995, amounting to approximately
$666,000.
LIQUIDITY
The primary liquidity needs of the two bank subsidiaries are to fund customer
loan demands and to cover large deposit withdrawals. By developing total
banking relationships with their customers, the banks have a relatively stable
base of deposits; however, the business cycles of customers can cause
significant changes in the deposit levels from month to month.
Liquidity has been monitored at adequate levels through the substantial dollars
invested in the Federal Funds market. The total investment portfolio is carried
with a slightly over five-year weighted maturity level.
In case of liquidity needs, the banks have set the following in order of
priority to meet those requirements:
1. Federal Funds sold
2. Federal Funds Purchased/Lines of Credit
3. Sale of portion or complete loans
4. Sale of portions of investment portfolio
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UNITED SECURITY BANCORPATION AND SUBSIDIARIES
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
UNITED SECURITY BANCORPORATION
William C. Dashiell
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William C. Dashiell, President
and Chief Executive Officer
Date: May 10, 1995 Jacqueline A. Barnard
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Jacqueline A. Barnard,
Assistant Vice President and
Secretary/Treasurer
(Principal Financial Officer,
duly authorized to sign on
behalf of registrant)
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