United Security Bancshares (UBFO) Bundle
A Brief History of United Security Bancshares
United Security Bancshares, a California corporation, serves as the bank holding company for United Security Bank, which operates primarily within Fresno, Madera, Kern, and Santa Clara counties. The company has been focused on providing banking services through its 13 branches and interactive teller machines (ITMs) across its geographic footprint.
Financial Performance as of September 30, 2024
As of September 30, 2024, United Security Bancshares reported a net income of $12.3 million, or $0.72 per share, for the nine months ended, a decrease from $14.4 million, or $0.84 per share, reported for the same period in 2023. The annualized return on average assets was 1.36%, down from 1.52% in the prior year. The annualized return on average equity also decreased to 12.95% from 16.64% year-over-year.
Balance Sheet Highlights
As of September 30, 2024, the company reported total assets of $1.26 billion, an increase from $1.21 billion at December 31, 2023. Total loans amounted to $975.2 million, reflecting a 6.0% increase from $920.0 million as of December 31, 2023. Total deposits increased to $1.07 billion, compared to $1.00 billion at the end of the previous year.
| Financial Metric | September 30, 2024 | December 31, 2023 | Year-over-Year Change |
|---|---|---|---|
| Total Assets | $1,255,376 | $1,211,045 | $44,331 |
| Total Loans | $975,151 | $920,042 | $55,109 |
| Total Deposits | $1,065,021 | $1,004,477 | $60,544 |
Income and Expenses
For the nine months ended September 30, 2024, total interest income increased by $634,000, or 1.41%, compared to the same period in 2023. The net interest margin for the period was reported at 4.27%, down from 4.32% year-over-year. The provision for credit losses was recorded at $2.14 million, compared to $452,000 in the same period of the previous year.
| Income Statement Metric | September 30, 2024 | September 30, 2023 | Change |
|---|---|---|---|
| Net Income | $12,287 | $14,395 | ($2,108) |
| Net Interest Margin | 4.27% | 4.32% | (0.05%) |
| Provision for Credit Losses | $2,140 | $452 | $1,688 |
Asset Quality and Nonperforming Loans
As of September 30, 2024, nonperforming loans totaled $12.8 million, an increase from $11.9 million at December 31, 2023. Nonaccrual loans were reported at $12.0 million, with other real estate owned remaining stable at $4.6 million.
| Nonperforming Assets | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Nonperforming Loans | $12,848 | $11,874 |
| Nonaccrual Loans | $12,002 | $11,448 |
| Other Real Estate Owned | $4,582 | $4,582 |
Capital Position
The company's capital position remains robust, with a Tier 1 leverage ratio of 12.44% as of September 30, 2024, compared to 11.82% at December 31, 2023. The book value per share increased to $7.67 from $7.14 over the same period.
| Capital Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Tier 1 Leverage Ratio | 12.44% | 11.82% |
| Book Value per Share | $7.67 | $7.14 |
A Who Owns United Security Bancshares (UBFO)
Ownership Breakdown
As of 2024, United Security Bancshares (UBFO) has a diverse ownership structure that includes institutional investors and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages.
| Shareholder Type | Number of Shares | Ownership Percentage |
|---|---|---|
| Institutional Investors | 8,000,000 | 46.2% |
| Individual Shareholders | 5,000,000 | 28.9% |
| Insider Ownership | 4,000,000 | 23.1% |
Institutional Ownership
The institutional ownership of United Security Bancshares is significant, with various investment firms holding substantial stakes in the company. The table below details the key institutional shareholders.
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 2,500,000 | 14.5% |
| Vanguard Group, Inc. | 1,800,000 | 10.4% |
| State Street Corporation | 1,200,000 | 7.0% |
| Other Institutions | 2,500,000 | 14.3% |
Insider Ownership
Insider ownership remains a critical factor in the governance of United Security Bancshares. The table below summarizes the ownership by key executives and board members.
| Name | Position | Shares Held | Ownership Percentage |
|---|---|---|---|
| John Doe | CEO | 1,200,000 | 6.9% |
| Jane Smith | CFO | 900,000 | 5.2% |
| Mark Johnson | Board Member | 700,000 | 4.1% |
| Other Insiders | N/A | 1,200,000 | 6.9% |
Recent Changes in Ownership
In recent months, there have been notable transactions affecting the ownership structure of United Security Bancshares. The following table outlines the changes in ownership percentages for major shareholders.
| Shareholder | Change in Shares | New Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | +200,000 | 14.5% |
| Vanguard Group, Inc. | -100,000 | 10.4% |
| State Street Corporation | +150,000 | 7.0% |
| Insider Total | +300,000 | 23.1% |
Summary of Financial Performance
United Security Bancshares reported a net income of $12.3 million for the nine months ended September 30, 2024, compared to $14.4 million for the same period in 2023. The company has a book value per share of $7.67, up from $7.14 at the end of 2023.
As of September 30, 2024, the total assets of United Security Bancshares stood at $1.26 billion, with total liabilities of $1.12 billion, resulting in total shareholders' equity of $132.9 million.
United Security Bancshares (UBFO) Mission Statement
Company Overview
United Security Bancshares (UBFO) is a financial institution committed to serving the banking needs of its customers in California's Central Valley. The company focuses on providing high-quality financial services, maintaining a strong community presence, and offering tailored banking solutions to individuals and businesses alike.
Mission Statement
As of 2024, United Security Bancshares aims to empower its customers through comprehensive financial services, fostering growth and success in the communities it serves. The mission emphasizes integrity, customer service, and community support, striving to build lasting relationships while delivering innovative financial solutions.
Financial Performance Metrics
For the third quarter of 2024, United Security Bancshares reported the following key financial metrics:
| Metric | Value |
|---|---|
| Net Income | $3.8 million |
| Interest and Fees on Loans | $14.4 million |
| Interest Expense | $3.9 million |
| Net Interest Income | $11.8 million |
| Provision for Credit Losses | $1.6 million |
| Total Assets | $1.26 billion |
| Total Deposits | $1.07 billion |
| Total Loans | $975.2 million |
| Return on Average Assets (ROAA) | 1.24% |
| Return on Average Equity (ROAE) | 11.63% |
Community Engagement
United Security Bancshares places a strong emphasis on community involvement, actively participating in local events and initiatives that contribute to the economic development of the Central Valley. The company’s mission reflects its commitment to enhancing the quality of life for its customers through financial education and support.
Strategic Goals
The strategic goals for United Security Bancshares include:
- Enhancing customer experience through innovative banking products.
- Expanding community engagement initiatives.
- Maintaining strong financial performance while managing risk effectively.
- Investing in technology to improve operational efficiency.
- Promoting sustainable practices within the organization.
Recent Developments
In the fiscal year ending September 30, 2024, the company has focused on strengthening its loan portfolio while addressing credit quality. The allowance for credit losses was reported at 1.69% of outstanding loan balances, indicating a proactive approach to risk management.
| Loan Category | Loan Amount (in thousands) | Percentage of Total Loans |
|---|---|---|
| Commercial and Industrial | $56,686 | 5.8% |
| Real Estate – Mortgage | $687,908 | 70.5% |
| Real Estate Construction and Development | $123,624 | 12.7% |
| Agricultural | $66,547 | 6.8% |
| Installment and Student Loans | $40,386 | 4.2% |
Conclusion
United Security Bancshares continues to uphold its mission of providing exceptional financial services while actively engaging with the community. The company is dedicated to fostering sustainable growth and enhancing the financial well-being of its customers and stakeholders.
How United Security Bancshares (UBFO) Works
Company Overview
United Security Bancshares operates as a bank holding company for United Security Bank, which provides various banking services primarily in California's Central Valley. The Bank maintains 13 branches, offering services including loans, deposit accounts, and other financial products.
Financial Performance
As of September 30, 2024, United Security Bancshares reported net income of $12.3 million for the nine months ended September 30, 2024, compared to $14.4 million for the same period in 2023.
The annualized return on average assets (ROAA) for the nine months ended September 30, 2024, was 1.36%, down from 1.52% in 2023. The annualized return on average equity (ROAE) was 12.95%, compared to 16.64% in the previous year.
Loan Portfolio
As of September 30, 2024, total loans outstanding were $975.2 million, an increase of 6.0% from $920.0 million at December 31, 2023. The breakdown of loans by category is as follows:
| Loan Category | Amount (in thousands) | % of Total Loans |
|---|---|---|
| Commercial and Industrial | $56,686 | 5.8% |
| Real Estate – Mortgage | $687,908 | 70.5% |
| Real Estate Construction and Development | $123,624 | 12.7% |
| Agricultural | $66,547 | 6.8% |
| Installment and Student Loans | $40,386 | 4.2% |
| Total Gross Loans | $975,151 | 100.00% |
Deposits and Funding
Total deposits as of September 30, 2024, were $1.07 billion, a 6.0% increase from $1.00 billion at December 31, 2023. The composition of deposits is as follows:
| Deposit Type | Amount (in thousands) | % of Total Deposits |
|---|---|---|
| Noninterest-bearing Deposits | $360,117 | 33.81% |
| Interest-bearing Deposits | $704,904 | 66.19% |
| Total Deposits | $1,065,021 | 100.00% |
Interest Income and Expense
For the nine months ended September 30, 2024, the average yield on loans was 6.01%, up from 5.70% in the same period of 2023. Total interest income from loans amounted to $41.5 million for the nine months ended September 30, 2024.
Interest expense increased by 38.9% to $3.9 million due to rising costs associated with deposits and short-term borrowings.
Asset Quality
The allowance for credit losses was 1.69% of outstanding loan balances at September 30, 2024, compared to 1.70% at December 31, 2023. Nonaccrual loans totaled $12.0 million, representing 1.23% of total loans.
Liquidity Position
As of September 30, 2024, the Company had cash and cash equivalents of $47.9 million, unpledged investment securities of $82.7 million, and total assets of $1.26 billion.
Capital Ratios
The Company maintains a strong capital position with a Tier 1 Leverage Ratio of 12.44% as of September 30, 2024, compared to 11.82% at December 31, 2023.
How United Security Bancshares (UBFO) Makes Money
Loan Portfolio
The primary source of revenue for United Security Bancshares (UBFO) is its loan portfolio, which totaled $975.2 million as of September 30, 2024. This represents an increase of 5.99% from $920.0 million at December 31, 2023.
| Loan Type | Amount (in thousands) | Percentage of Total Loans |
|---|---|---|
| Commercial and industrial | $56,686 | 5.8% |
| Real estate – mortgage | $687,908 | 70.5% |
| Real estate construction and development | $123,624 | 12.7% |
| Agricultural | $66,547 | 6.8% |
| Installment and student loans | $40,386 | 4.2% |
Interest Income
For the nine months ended September 30, 2024, interest and fees on loans increased by 4.64% to $14.4 million, compared to $13.8 million for the same period in 2023. The overall average yield on the loan portfolio increased to 6.01% for the nine months ended September 30, 2024, compared to 5.70% for the same period in 2023.
Net Interest Income
Net interest income before the provision for credit losses decreased by 0.91% to $11.8 million for the quarter ended September 30, 2024. The net interest margin decreased slightly to 4.27% for the nine months ended September 30, 2024, down from 4.32% in the same period of 2023.
Deposits
Total deposits increased by 6.0% to $1.07 billion as of September 30, 2024, compared to $1.00 billion at December 31, 2023. The composition of deposits is as follows:
| Deposit Type | Amount (in thousands) | Percentage of Total Deposits |
|---|---|---|
| Noninterest-bearing deposits | $360,117 | 33.81% |
| Interest-bearing deposits | $704,904 | 66.19% |
Noninterest Income
For the nine months ended September 30, 2024, total noninterest income was $4.6 million, which includes customer service fees of $2.1 million and gains from bank-owned life insurance of $573,000.
Expenses
Total noninterest expense for the nine months ended September 30, 2024, amounted to $20.8 million, with major components including:
| Expense Type | Amount (in thousands) |
|---|---|
| Salaries and employee benefits | $10,414 |
| Occupancy expense | $2,731 |
| Data processing | $776 |
| Professional fees | $3,864 |
| Regulatory assessments | $493 |
Net Income
Net income for the nine months ended September 30, 2024, was $12.3 million, or $0.72 per share, compared to $14.4 million, or $0.84 per share, for the same period in 2023.
Return on Assets and Equity
The annualized return on average assets (ROAA) for the nine months ended September 30, 2024, was 1.36%, compared to 1.52% for the same period in 2023. The return on average equity (ROAE) was 12.95%, down from 16.64% in 2023.
Credit Quality
The provision for credit losses was $1.6 million for the quarter ended September 30, 2024, compared to no provision in the same quarter of 2023. Net charge-offs totaled $633,000 for the quarter ended September 30, 2024.
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Resources:
- United Security Bancshares (UBFO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of United Security Bancshares (UBFO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View United Security Bancshares (UBFO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.