Note 3 - Net Income Per Share

6 Months Ended

Jun. 30, 2016

3.	NET INCOME PER SHARE

Basic net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding. Included in basic shares are certain shares that have been accrued as of the balance sheet date as deferred comp

ensation for members of USBI’s Board of Directors. Diluted net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding, adjusted for the effect of potentially dilutive stock awards outstanding during the period. The dilutive shares consist of nonqualified stock option grants issued to employees and members of USBI’s Board of Directors pursuant to the United Security Bancshares, Inc. 2013 Incentive Plan (the “2013 Incentive Plan”) previously approved by USBI’s shareholders. The following table reflects weighted average shares used to calculate basic and diluted net income per share for the periods presented.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Basic shares		6,147,727		6,139,268		6,145,326		6,136,882
Dilutive shares		272,550		177,050		272,550		177,050
Diluted shares		6,420,277		6,316,318		6,417,876		6,313,932

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
	(Dollars in Thousands, Except Per Share Data)				(Dollars in Thousands, Except Per Share Data)
Net income	$	462	$	774	$	779	$	1,610
Basic net income per share	$	0.08	$	0.13	$	0.13	$	0.26
Diluted net income per share	$	0.07	$	0.12	$	0.12	$	0.25