United Security Bancshares (UBFO): Marketing Mix Analysis [11-2024 Updated]
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United Security Bancshares (UBFO) Bundle
As United Security Bancshares (UBFO) continues to navigate the competitive banking landscape in 2024, its marketing mix—comprising Product, Place, Promotion, and Price—plays a crucial role in driving its success. Discover how this California-based institution leverages its core banking services, strategically located branches, community-focused promotions, and competitive pricing strategies to meet the needs of both individuals and businesses. Read on to explore the details of UBFO's approach to the four P's of marketing.
United Security Bancshares (UBFO) - Marketing Mix: Product
Core business: banking services
The core business of United Security Bancshares (UBFO) is centered around providing comprehensive banking services to its customers.
Primary offerings: loans and deposits
The primary offerings of UBFO include various types of loans and deposit accounts tailored to meet the needs of both individual and business customers.
Loan portfolio: $975.2 million as of September 30, 2024
As of September 30, 2024, the total loan portfolio for United Security Bancshares stood at $975.2 million, reflecting a growth of 6.0% from $920.0 million at December 31, 2023.
Key loan segments: real estate mortgages, commercial loans, agricultural loans
The loan portfolio is diversified across several key segments:
- Real estate mortgages: $687.9 million (70.5% of total loans)
- Commercial loans: $56.7 million (5.8% of total loans)
- Agricultural loans: $66.5 million (6.8% of total loans)
- Real estate construction and development: $123.6 million (12.7% of total loans)
- Installment and student loans: $40.4 million (4.2% of total loans)
| 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% |
Investment securities: approximately $168.8 million
As of September 30, 2024, the total investment securities held by UBFO were approximately $168.8 million, a decrease from $184.6 million at December 31, 2023.
Focus on residential and commercial real estate lending
United Security Bancshares maintains a strong focus on residential and commercial real estate lending, with commercial real estate loans totaling $439.2 million at September 30, 2024.
Customer-centric solutions for businesses and individuals
UBFO aims to provide customer-centric solutions, offering tailored loan products and deposit accounts designed to meet the unique needs of both business and individual customers.
United Security Bancshares (UBFO) - Marketing Mix: Place
Headquarters
The headquarters of United Security Bancshares is located in Fresno, California.
Branch Operations
United Security Bancshares operates a total of 13 banking branches across the following counties in California:
- Fresno
- Madera
- Kern
- Santa Clara
Interactive Teller Machines (ITMs)
In addition to traditional banking services, United Security Bancshares offers additional services through interactive teller machines (ITMs), enhancing customer accessibility and convenience.
Geographic Focus
The company's geographic focus is primarily within California, particularly in the Central Valley region, which is critical for its operational strategy and community engagement efforts.
Community Engagement
United Security Bancshares places a strong emphasis on local community engagement and support, which is reflected in its banking operations and marketing strategies aimed at fostering relationships within the communities it serves.
| Metric | Value |
|---|---|
| Number of Branches | 13 |
| Counties Operated | Fresno, Madera, Kern, Santa Clara |
| Headquarters Location | Fresno, California |
| ITMs Available | Yes |
| Focus Area | California, primarily Central Valley |
United Security Bancshares (UBFO) - Marketing Mix: Promotion
Marketing strategy emphasizes customer relationships
United Security Bancshares focuses on building strong customer relationships through personalized banking solutions and community engagement. The company emphasizes long-term partnerships with core customers to provide tailored deposit and lending solutions. As of September 30, 2024, net income was $12.3 million, reflecting a decrease from $14.4 million in the same period in 2023.
Utilizes local advertising and community events
The bank actively participates in local advertising and community events to enhance brand visibility and foster trust within the communities it serves. This includes sponsoring local events and engaging in community service initiatives. The total deposits increased to $1.07 billion as of September 30, 2024, a 6.0% increase from $1.00 billion at December 31, 2023.
Focus on digital marketing to reach a broader audience
United Security Bancshares has expanded its digital marketing efforts to reach a wider audience. This includes targeted online advertising and enhancing its online banking platform to attract younger customers. The annualized average cost of deposits was 1.18% for the quarter ended September 30, 2024, compared to 0.71% for the same quarter in 2023.
Promotion of banking products through educational content
The bank promotes its banking products through educational content, providing resources that help customers understand financial products and services. This strategy aims to empower customers and increase product uptake. Interest and fees on loans increased by 4.64% to $14.4 million for the quarter ended September 30, 2024, compared to $13.8 million in the third quarter of 2023.
Engagement through social media platforms to enhance brand visibility
United Security Bancshares leverages social media platforms to engage with customers and enhance brand visibility. The bank utilizes platforms like Facebook and Instagram to share updates and financial tips. The total fair value of junior subordinated debentures increased by $65,000 during the quarter ended September 30, 2024.
| Promotion Strategy | Details | Impact |
|---|---|---|
| Customer Relationships | Long-term partnerships with core customers | Net income at $12.3 million (2024) |
| Local Advertising | Participation in community events | Total deposits increased to $1.07 billion |
| Digital Marketing | Targeted online ads and enhanced online banking | Annualized cost of deposits at 1.18% |
| Educational Content | Resources for understanding financial products | Interest and fees on loans at $14.4 million |
| Social Media Engagement | Active presence on platforms like Facebook and Instagram | Fair value of junior subordinated debentures increased by $65,000 |
United Security Bancshares (UBFO) - Marketing Mix: Price
Competitive interest rates on loans and deposits
United Security Bancshares (UBFO) maintains competitive interest rates for both loans and deposits, which is essential for attracting and retaining customers in the banking sector. The company’s strategic pricing policies are designed to balance profitability with customer satisfaction.
Average yield on loan portfolio
The average yield on the loan portfolio was reported at 6.01% for the nine months ended September 30, 2024, reflecting an increase from 5.70% during the same period in 2023.
Average cost of deposits
The average cost of deposits for the quarter ended September 30, 2024, was 1.18%, up from 0.71% for the same quarter in 2023.
Commitment to maintaining low cost of funds
United Security Bancshares is committed to maintaining a low cost of funds through disciplined pricing strategies. This approach has enabled the company to effectively compete in a rising interest rate environment while still offering attractive rates to customers.
Dividend payout
The company declared a dividend payout of $0.12 per share as of September 30, 2024, maintaining a consistent return to shareholders.
| Financial Metric | Value | Comparison to Previous Year |
|---|---|---|
| Average Yield on Loan Portfolio | 6.01% | Increased from 5.70% |
| Average Cost of Deposits | 1.18% | Increased from 0.71% |
| Dividend Payout per Share | $0.12 | Consistent with previous period |
| Net Income for Q3 2024 | $3.8 million | Decreased from $3.9 million |
In summary, United Security Bancshares (UBFO) effectively leverages its marketing mix to maintain a strong position in the competitive banking sector. With a robust product offering focused on loans and deposits, a strategic place rooted in community engagement, innovative promotion through digital channels and local events, and a price strategy that emphasizes competitive rates, UBFO demonstrates a commitment to meeting the needs of its customers while fostering growth within its operational regions. This comprehensive approach not only enhances customer relationships but also solidifies UBFO's reputation as a trusted banking partner in California.
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.