21.

UNITED SECURITY BANCSHARES, INC. (PARENT COMPANY ONLY) FINANCIAL INFORMATION

Statements of Condition


	Year-Ended December 31,
	2011		2010
			(Restated)
ASSETS:
Cash on deposit	$	291,113	$	303,868
Investment in subsidiaries		66,400,536		73,470,475
Investment securities available-for-sale		—		203,520
Other assets		1		987,343

TOTAL ASSETS	$	66,691,650	$	74,965,206

LIABILITIES:
Other liabilities	$	484,352	$	442,767
SHAREHOLDERS' EQUITY		66,207,298		74,522,439

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	66,691,650	$	74,965,206


Statements of Income
	Year-Ended December 31,
	2011			2010
				(Restated)
INCOME
Dividend income, First United Security Bank	$	391,272		$	3,013,988
Interest income		3,231			1,325
Investment securities gains, net		78,607			—

Total income	$	473,110		$	3,015,313
EXPENSE		1,451,865			348,430

INCOME (LOSS) BEFORE EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES		(978,755	)		2,666,883
EQUITY IN (DISTRIBUTIONS IN EXCESS OF) UNDISTRIBUTED LOSS OF SUBSIDIARIES		(8,096,955	)		(5,972,958	)

NET LOSS	$	(9,075,710	)	$	(3,306,075	)

Less: Net loss attributable to noncontrolling interest		(763	)		(125,294	)

NET LOSS ATTRIBUTABLE TO USBI	$	(9,074,947	)	$	(3,180,781	)

Statements of Cash Flows


	Year-Ended December 31,
	2011			2010
				(Restated)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss attributable to USBI	$	(9,074,947	)	$	(3,180,781	)
Adjustments to reconcile net income to net cash provided by operating activities:
Distributions in excess of undistributed income of subsidiaries		8,096,192			5,847,665
Gain on sale of securities, net		(78,607	)		—
Decrease in other assets		987,342			—
Increase in other liabilities		71,900			75,741

Net cash provided by operating activities		1,880			2,742,625

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital contribution to subsidiary		—			(70,000	)
Proceeds from sales of investment securities, available for sale		201,287			—

Net cash provided by (used in) investing activities		201,287			(70,000	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock		25,350			—
Cash dividends paid		(241,272	)		(2,653,988	)

Net cash used in financing activities		(215,922	)		(2,653,988	)

DECREASE (INCREASE) IN CASH		(12,755	)		18,637
CASH AT BEGINNING OF YEAR		303,868			285,231

CASH AT END OF YEAR	$	291,113		$	303,868