United Security Bancshares (UBFO) Bundle
A Brief History of United Security Bancshares (UBFO)
Background
Background
United Security Bancshares, trading under the ticker symbol UBFO, was established in 1982 in the banking sector. The company is headquartered in Fresno, California. It primarily engages in providing banking and financial services to individuals and businesses.
Corporate Structure and Growth
UBFO operates as the holding company for United Security Bank. Over the years, the bank has expanded its operations through acquisitions, enhancing its market presence in the San Joaquin Valley.
- Year of Establishment: 1982
- Headquarters: Fresno, California
- Primary Services: Commercial and retail banking
Financial Performance
As of the end of 2022, United Security Bancshares reported total assets of $1.1 billion, demonstrating steady growth over the years.
| Year | Total Assets ($ Billion) | Net Income ($ Million) | EPS ($) |
|---|---|---|---|
| 2018 | 0.85 | 5.0 | 0.52 |
| 2019 | 0.92 | 5.3 | 0.56 |
| 2020 | 0.99 | 6.1 | 0.66 |
| 2021 | 1.05 | 6.7 | 0.71 |
| 2022 | 1.1 | 7.1 | 0.75 |
Stock Performance
The stock price of UBFO has exhibited fluctuations typical of the banking sector. As of October 2023, the stock was trading at approximately $13.25 per share.
Acquisitions
Throughout its history, UBFO has made several strategic acquisitions to bolster its resources and customer base:
- Acquisition of First Bank of the Valley in 1997
- Acquisition of Central Valley Bank in 2009
Regulatory Environment
UBFO operates under the supervision of the Office of the Comptroller of the Currency (OCC) and adheres to the regulations set forth by the Federal Deposit Insurance Corporation (FDIC), ensuring compliance with banking standards.
Community Engagement
United Security Bancshares plays an active role in community development, contributing to local charities and sponsoring various community initiatives.
- Annual donations exceeding $100,000 to local organizations
- Participation in community financial literacy programs
Recent Developments
In 2023, UBFO announced plans to enhance its digital banking services, investing $2 million in technology upgrades to improve customer experience.
A Who Owns United Security Bancshares (UBFO)
Ownership Structure
Ownership Structure
As of the most recent filings, United Security Bancshares (UBFO) exhibits a diverse ownership structure comprising institutional investors, insiders, and retail shareholders.
Shareholder Composition
| Type of Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| Institutional Investors | 42.3% | 1,394,000 |
| Insiders | 11.7% | 385,000 |
| Retail Investors | 46.0% | 1,500,000 |
Top Institutional Investors
| Investor Name | Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group | 450,000 | 13.8% |
| BlackRock, Inc. | 350,000 | 10.8% |
| State Street Corporation | 300,000 | 9.2% |
Insider Ownership
The breakdown of insider ownership is as follows:
- CEO: 200,000 shares
- CFO: 100,000 shares
- Board Members: 85,000 shares
Market Performance and Share Price
As of the latest trading session, United Security Bancshares (UBFO) trades at $10.50 per share, with a market capitalization of approximately $34 million.
Total Outstanding Shares
United Security Bancshares has a total of 3,600,000 shares outstanding.
Recent Shareholder Changes
Recent SEC filings indicate that institutional ownership has increased by 3% in the last quarter, while insider ownership remains stable.
Conclusion on Share Ownership
The ownership landscape of United Security Bancshares (UBFO) reflects a healthy mix of institutional, insider, and retail investors, showcasing a solid foundation for continued growth.
United Security Bancshares (UBFO) Mission Statement
Company Overview
United Security Bancshares (NASDAQ: UBFO) is a bank holding company headquartered in Fresno, California. It operates through its banking subsidiary, United Security Bank, which provides a range of financial products and services primarily to small and mid-sized businesses and consumers in Central California.
Mission Statement
The mission of United Security Bancshares is to deliver exceptional financial services characterized by a deep commitment to the communities it serves, ensuring client satisfaction, fostering employee development, and maximizing shareholder value.
Core Values
- Integrity: Upholding the highest standards of ethics and accountability.
- Community Focus: Engaging with and supporting local communities.
- Customer Commitment: Providing quality service and innovative financial solutions.
- Teamwork: Fostering collaboration among employees for mutual success.
- Excellence: Striving for continual improvement in all aspects of operations.
Financial Performance
As of Q3 2023, United Security Bancshares has reported significant financial metrics that underline its commitment to operational excellence and customer service:
| Financial Metric | Amount |
|---|---|
| Total Assets | $782 million |
| Total Loans | $564 million |
| Total Deposits | $652 million |
| Net Income | $8 million |
| Earnings per Share (EPS) | $0.70 |
| Return on Assets (ROA) | 1.03% |
| Return on Equity (ROE) | 10.12% |
Community Involvement
United Security Bancshares actively engages in initiatives that enhance community welfare. The company supports various local charities, educational programs, and economic development projects. In 2023, the bank allocated over $250,000 in philanthropic donations.
Strategic Goals
- Enhance Customer Experience: Continuously improve service delivery.
- Expand Market Reach: Increase branch presence in underserved areas.
- Leverage Technology: Invest in digital banking solutions for improved efficiency.
- Foster Employee Growth: Implement training programs and career development initiatives.
Conclusion
United Security Bancshares’ mission and values reflect its commitment to its customers, employees, and communities. The company’s financial health and community involvement underscore its role as a significant player in California's banking landscape.
How United Security Bancshares (UBFO) Works
Company Overview
United Security Bancshares, trading under the ticker symbol UBFO, is a bank holding company based in California. It operates through its subsidiary, United Security Bank, primarily focused on providing banking and financial services to individuals and small to medium-sized businesses.
Financial Performance
As of the third quarter of 2023, United Security Bancshares reported the following financial highlights:
| Financial Metric | Q3 2023 | Q2 2023 | Q3 2022 |
|---|---|---|---|
| Total Assets | $658 million | $645 million | $610 million |
| Total Deposits | $580 million | $570 million | $540 million |
| Net Income | $2.5 million | $2.2 million | $2.0 million |
| Earnings Per Share (EPS) | $0.35 | $0.31 | $0.28 |
| Return on Assets (ROA) | 1.52% | 1.45% | 1.35% |
| Return on Equity (ROE) | 10.75% | 10.50% | 9.90% |
Business Segments
- Commercial Banking
- Residential Lending
- Small Business Services
Loan Portfolio
The loan portfolio of United Security Bancshares is diverse, consisting of:
| Loan Type | Amount ($ million) | Percentage of Total Loans |
|---|---|---|
| Commercial Loans | $250 million | 45% |
| Residential Mortgages | $200 million | 36% |
| Consumer Loans | $50 million | 9% |
| Small Business Loans | $40 million | 7% |
Market Position
United Security Bancshares operates primarily in the Central Valley region of California, focusing on community banking. The company's market share in its operational area is approximately 3.5%, with a strong emphasis on customer service and community-oriented banking solutions.
Regulatory Environment
UBFO is subject to the regulations of the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC). Compliance with the Dodd-Frank Act and the Community Reinvestment Act (CRA) forms part of its operational framework.
Recent Developments
In August 2023, the bank announced a new digital banking platform aimed at enhancing customer experience. This platform includes mobile banking capabilities and an upgraded online banking interface.
Competitive Landscape
UBFO competes with several community banks and credit unions within its service area. Its key competitors include:
- First California Bank
- Bank of the Sierra
- Westamerica Bank
Future Outlook
Analysts forecast a growth in net income by approximately 8% year-over-year for the upcoming fiscal year, driven by an anticipated increase in loan demand and expansion of deposit services.
How United Security Bancshares (UBFO) Makes Money
Interest Income
United Security Bancshares generates a significant portion of its revenue through interest income derived from its lending activities. As of the latest financial statements, total interest income amounted to $16.5 million for the fiscal year 2022.
Non-Interest Income
The company also earns non-interest income from various sources. This includes service charges on deposit accounts and fees from loan origination. For the year ended December 31, 2022, total non-interest income was reported at $2 million.
Loan Portfolio
United Security Bancshares maintains a diversified loan portfolio. The breakdown of the loan types as of Q2 2023 is as follows:
| Loan Type | Amount ($ million) | Percentage of Total Loans |
|---|---|---|
| Commercial Loans | 50 | 35% |
| Residential Mortgages | 40 | 28% |
| Consumer Loans | 30 | 21% |
| Other Loans | 15 | 10% |
Deposit Accounts
The bank attracts deposits through various account offerings, which serve as a primary funding source for their lending operations. As of June 30, 2023, total deposits were reported at $250 million.
Net Interest Margin
One key metric for measuring profitability in banking is the net interest margin (NIM). For United Security Bancshares, the NIM for the fiscal year 2022 was approximately 3.5%, reflecting the efficiency in managing interest income relative to interest expenses.
Operating Expenses
Operating expenses, which include salaries, benefits, and other overhead costs, were recorded at $10 million for the year 2022. This reflects the bank's focus on maintaining efficient operational structures.
Asset Quality
Maintaining a healthy level of asset quality is crucial for profitability. As of the second quarter of 2023, the non-performing asset ratio was 0.5%, indicating a solid management of credit risk.
Investment Securities
United Security Bancshares also holds investment securities, contributing to its revenue stream. As of December 31, 2022, the total investment securities portfolio was valued at $70 million, with an average yield of 2.1%.
Market Presence
The bank operates primarily in the Central California region and has established a customer base that supports its revenue-generating activities. This regional focus allows for tailored financial solutions.
Recent Financial Performance
In the latest earnings report for Q2 2023, United Security Bancshares reported a net income of $4 million, representing a 20% increase compared to the same quarter in the previous year.
Future Growth Prospects
Looking ahead, United Security Bancshares plans to expand its lending capabilities and improve its service offerings, which may enhance both interest and non-interest income streams.
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