United Security Bancshares Declares Stock Dividend

FRESNO, Calif., March 27  /PRNewswire-FirstCall/ -- Dennis R. Woods, President and Chief Executive Officer of United Security Bancshares http://www.unitedsecuritybank.com/ (NASDAQ:UBFO) reported that the Board of Directors of United Security Bancshares declared a 2nd quarter 2009 stock dividend of one percent (1%). The stock dividend replaces the quarterly cash dividend. The stock dividend will be paid to shareholders of record on April 10, 2009 and the dividend shares will be issued on April 22, 2009.

The change in the dividend from cash to stock was employed last year as a precaution against the uncertainties in the 1-4 family residential real estate market and its impact on the Company's construction and related land and lot loan portfolio. Those conditions persist but the Company's capital position remains strong. However, the Board of Directors decided, given the current uncertainties in the economy and unprecedented declines in real estate valuations in our markets, it is prudent to retain capital in this environment.

Many of our shareholders use the cash dividends to purchase additional shares each quarter and the stock dividend will make that unnecessary. Shareholders who prefer cash may sell all or a portion of the stock dividend shares in the open market to meet their cash needs. This change in dividend policy is in concert with managing the capital of the Company in the best interest of the shareholders. After the uncertainties in the economy subside, the Board of Directors expects to resume paying the quarterly cash dividend. 

DATASOURCE: United Security Bancshares



CONTACT:  Dennis R. Woods, President and Chief Executive Officer of

United Security Bancshares, [phone]



Web Site:  http://www.unitedsecuritybank.com/ 

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