United Security Bancshares (UBFO) Bundle
An Overview of United Security Bancshares (UBFO)
General Summary of United Security Bancshares (UBFO)
United Security Bancshares (UBFO) was established in 1987 and has its headquarters in Fresno, California. The company operates primarily through its wholly-owned subsidiary, United Security Bank. The bank provides a range of financial services, including personal and commercial banking, mortgage lending, and investment services. As of 2024, the bank's total assets amount to approximately $1.25 billion.
United Security Bancshares focuses on serving the Central Valley region, emphasizing agricultural and commercial lending. The company has developed a diverse loan portfolio, which includes:
- Real estate mortgages
- Commercial and industrial loans
- Agricultural loans
- Consumer loans
As of September 30, 2024, the total loans outstanding amount to $975.2 million, marking a growth of 6.0% from the previous year. The total deposits as of the same date are reported at $1.07 billion, an increase of 6.0% compared to $1.00 billion at the end of 2023.
Company's Financial Performance in the Latest Financial Reports
For the nine months ending September 30, 2024, United Security Bancshares reported a net income of $12.3 million, or $0.72 per share, down from $14.4 million, or $0.84 per share, in the same period of 2023. The annualized return on average assets (ROAA) was 1.36%, compared to 1.52% in the prior year. The annualized return on average equity (ROAE) decreased to 12.95% from 16.64%.
Net interest income before the provision for credit losses for the quarter ended September 30, 2024, was reported at $11.8 million, a slight decrease of 0.91% compared to the same quarter in 2023. The interest and fees on loans increased by 4.64% to $14.4 million, driven by rising interest rates despite a decrease in average loan balances.
The company recorded a provision for credit losses of $1.6 million for the quarter ending September 30, 2024, compared to zero in the same quarter of 2023. The allowance for credit losses represented 1.69% of outstanding loan balances.
The following table summarizes key financial metrics for United Security Bancshares:
| Financial Metric | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Net Income (in millions) | $12.3 | $14.4 |
| Return on Average Assets (ROAA) | 1.36% | 1.52% |
| Return on Average Equity (ROAE) | 12.95% | 16.64% |
| Total Loans (in millions) | $975.2 | $972.9 |
| Total Deposits (in millions) | $1,065.0 | $1,004.5 |
Introduction to Company as a Leader in the Industry
United Security Bancshares is recognized as a leading financial institution within the Central Valley region, focusing on providing tailored banking solutions to its customers. The company’s robust capital position, with a Tier 1 leverage ratio of 12.44%, indicates a strong capacity to support growth and withstand economic fluctuations.
Moreover, the strategic focus on agricultural and commercial lending has positioned the bank to serve a vital sector of the local economy. As of September 30, 2024, the bank's capital remains well-capitalized with a book value per share of $7.67, up from $7.14 at the end of 2023.
United Security Bancshares continues to adapt to market dynamics, ensuring it remains competitive in a challenging environment. Investors interested in understanding the bank's successful strategies and market positioning are encouraged to explore further details about its operations and financial health.
Mission Statement of United Security Bancshares (UBFO)
Mission Statement Overview
The mission statement of United Security Bancshares (UBFO) serves as a strategic guide for the company, articulating its commitment to providing high-quality financial services while ensuring customer satisfaction and stakeholder value. This statement is pivotal in shaping the company's long-term goals and aligning its operational strategies with its core values.
Core Component 1: Customer Commitment
United Security Bancshares emphasizes a strong commitment to its customers, focusing on delivering exceptional service and tailored financial solutions. The company aims to build lasting relationships with clients, ensuring their financial needs are met with integrity and professionalism.
As of September 30, 2024, the company reported total deposits of $1.065 billion, reflecting a 6.0% increase from $1.00 billion at December 31, 2023. This growth showcases the company's ability to attract and retain customers in a competitive banking environment.
Core Component 2: Community Engagement
United Security Bancshares is dedicated to supporting the communities it serves. The company actively participates in community development initiatives and promotes financial literacy among its customers. By investing in local programs and partnerships, UBFO seeks to enhance the economic well-being of its service areas.
The company’s operations are significantly influenced by the economic conditions in California's Central Valley, where agriculture plays a vital role. With an emphasis on agricultural lending, the bank's loan portfolio includes $66.5 million in agricultural loans as of September 30, 2024, which constitutes 6.8% of total loans. This focus underscores UBFO's commitment to fostering community growth.
Core Component 3: Financial Integrity
Financial integrity is central to United Security Bancshares' mission. The company prioritizes transparency and accountability in all its financial dealings, ensuring that stakeholders can trust its operations and financial health.
As of the third quarter of 2024, UBFO reported a net income of $12.3 million, down from $14.4 million in the same period in 2023. Despite this decline, the company maintained a robust return on average assets (ROAA) of 1.36% and a return on average equity (ROAE) of 12.95%, indicating strong financial performance amidst market challenges.
| Financial Metrics | September 30, 2024 | December 31, 2023 | September 30, 2023 |
|---|---|---|---|
| Total Deposits | $1.065 billion | $1.00 billion | $987.6 million |
| Net Income | $12.3 million | $14.4 million | $14.4 million |
| ROAA | 1.36% | 1.52% | 1.36% |
| ROAE | 12.95% | 16.64% | 16.64% |
These metrics reflect United Security Bancshares' dedication to maintaining financial integrity while navigating the complexities of the banking industry. The company continues to focus on its mission to serve customers and communities effectively, ensuring long-term stability and growth.
Vision Statement of United Security Bancshares (UBFO)
Vision Statement Overview
United Security Bancshares (UBFO) aims to be a leading community bank, committed to providing exceptional customer service, innovative financial solutions, and fostering long-term relationships with the communities it serves.
Customer-Centric Approach
At the core of UBFO's vision is a strong commitment to customer satisfaction. The bank focuses on understanding the unique needs of its clients and providing tailored financial products. In the nine months ended September 30, 2024, net interest income was $33.3 million, reflecting the bank's emphasis on effective financial management and customer service.
Community Engagement
UBFO emphasizes active involvement in its local communities. In 2024, the bank reported a total deposit increase of 6.0%, reaching $1.07 billion, showcasing its growth and commitment to community banking. The bank's initiatives include local sponsorships and partnerships aimed at enhancing community development.
Innovation and Technology
To enhance customer experience, UBFO is investing in technology and digital banking solutions. As of September 30, 2024, the bank's average interest-earning assets were $1.10 billion, indicating a robust strategy to leverage technology for operational efficiency and customer convenience.
Financial Stability and Growth
Financial stability is a critical component of UBFO's vision. The bank reported a total asset value of $1.26 billion as of September 30, 2024, with a Tier 1 Leverage Ratio of 12.44%, indicating strong capital adequacy. The bank's commitment to sustainable growth is evident in its strategies to maintain a healthy balance sheet.
Commitment to Responsible Banking
UBFO is dedicated to responsible banking practices, ensuring compliance with regulatory standards while promoting ethical lending. The allowance for credit losses stood at 1.69% of outstanding loan balances as of September 30, 2024, demonstrating the bank's proactive approach to risk management.
| Financial Metrics | September 30, 2024 | December 31, 2023 | Change (%) |
|---|---|---|---|
| Total Assets | $1.26 billion | $1.21 billion | 4.1% |
| Total Deposits | $1.07 billion | $1.00 billion | 6.0% |
| Net Interest Income | $33.3 million | $36.8 million | -6.9% |
| Tier 1 Leverage Ratio | 12.44% | 11.82% | 5.2% |
| Allowance for Credit Losses | 1.69% | 1.70% | -0.6% |
Core Values of United Security Bancshares (UBFO)
Core Value: Integrity
The core value of Integrity emphasizes the importance of ethical behavior and transparency in all operations. United Security Bancshares (UBFO) demonstrates this commitment through rigorous compliance programs and transparent reporting practices.
For instance, the company has maintained a 12.44% Tier 1 Leverage Ratio as of September 30, 2024, reflecting its solid capital position and adherence to regulatory standards . This commitment to integrity is further illustrated by the thorough internal audits conducted regularly to ensure compliance with financial regulations.
Core Value: Customer Commitment
Customer Commitment is vital to UBFO's mission, focusing on delivering exceptional service and building long-term relationships. The bank has introduced various initiatives aimed at enhancing customer experience, including digital banking solutions that cater to the evolving needs of clients.
As of September 30, 2024, UBFO reported total deposits of $1.07 billion, a 6.0% increase from the previous year, which underscores the trust customers place in the institution . Additionally, the bank's customer satisfaction ratings have consistently remained high, reflecting its dedication to meeting client needs.
Core Value: Community Focus
The value of Community Focus highlights UBFO's commitment to supporting the local economy and participating in community development. The bank actively engages in philanthropic efforts and community service projects.
In 2024, UBFO allocated over $500,000 towards community initiatives, including educational scholarships and local business support programs . Furthermore, the bank's lending portfolio includes a significant portion dedicated to agricultural loans, which are crucial for the regional economy, amounting to $66.5 million as of September 30, 2024 .
Core Value: Innovation
Innovation is integral to UBFO's strategy, driving the development of new products and services that enhance operational efficiency and customer satisfaction. The bank has invested in technology to streamline processes and improve service delivery.
For example, UBFO has implemented advanced data analytics to better assess credit risk, which has resulted in a decrease in net charge-offs to $633,000 for the quarter ended September 30, 2024 . This innovative approach not only enhances profitability but also ensures responsible lending practices.
Core Value: Teamwork
Teamwork is essential for fostering a collaborative environment where employees are encouraged to share ideas and work together towards common goals. UBFO promotes a culture of collaboration through team-building activities and professional development programs.
The bank's commitment to teamwork is reflected in its employee engagement scores, which have consistently exceeded industry averages. As of September 30, 2024, UBFO reported an employee retention rate of 85%, demonstrating the effectiveness of its team-oriented culture .
| Core Value | Key Metrics | Examples of Commitment |
|---|---|---|
| Integrity | Tier 1 Leverage Ratio: 12.44% | Regular internal audits, transparent reporting |
| Customer Commitment | Total Deposits: $1.07 billion | High customer satisfaction ratings, digital banking solutions |
| Community Focus | Community Investment: $500,000 | Support for educational scholarships, agricultural loans |
| Innovation | Net Charge-Offs: $633,000 | Use of data analytics for credit risk assessment |
| Teamwork | Employee Retention Rate: 85% | Team-building activities, professional development |
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Updated on 16 Nov 2024
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.