United Security Bancshares (UBFO) | Investment Case

1. Company Snapshot

1.a. Company Description

United Security Bancshares operates as the bank holding company for United Security Bank, a state-chartered bank that provides a range of commercial banking services to the business and professional community, and individuals in California.The company accepts various deposit products, including personal and business checking accounts, savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificates of deposit.It also provides real estate mortgage, commercial and industrial, real estate construction, and consumer loans, as well as agricultural, installment, and student loans.

In addition, the company offers online and mobile banking, safe deposit boxes, wire transfers, payroll direct deposit, cashier's check, cash management, traveler's check, money order, and foreign draft services, as well as interactive teller machines and ATM services.As of January 26, 2022, it operated 12 full-service branch offices in Fresno, Bakersfield, Campbell, Caruthers, Coalinga, Firebaugh, Mendota, Oakhurst, San Joaquin, and Taft.The company was founded in 1987 and is headquartered in Fresno, California.

Show Full description

1.b. Last Insights on UBFO

United Security Bancshares' recent performance was driven by a 5% year-over-year earnings growth in Q3, fueled by lower credit costs and net interest margin expansion. The company's Board of Directors declared a quarterly cash dividend of $0.12 per share, showcasing its commitment to shareholder returns. Zacks initiated coverage with a "Neutral" rating, citing tempered earnings volatility and rising costs. The company's Q2 2025 earnings report highlighted its operating results, and a comparison with Bank of Hawaii underscored its profitability and earnings strength.

1.c. Company Highlights

Last Price	10.03
Change Percentage	0.10%
Open	10.1
Previous Close	10.02
Market Cap ( Millions)	175
Volume	29272
Year High	10.49
Year Low	7.32
M A 50	9.37
M A 200	9.01

FCF Yield	11.80%
Dividend Yield	4.79%
ROE	8.50%
Debt / Equity	8.61%
Net Debt / EBIDTA	-314.54%
Price To Book	1.26
Price Earnings Ratio	15.21
Price To FCF	8.47
Price To sales	2.76
EV / EBITDA	6.85

2. Transcript Summary

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3. NewsRoom

Analyzing United Security Bancshares (NASDAQ:UBFO) & Bank of Hawaii (NYSE:BOH)

Oct -24

Source: defenseworld.net

UBFO's Q3 Earnings Rise Y/Y on Higher Net Interest Income

Oct -22

Source: zacks.com

United Security Bancshares Reports Second Quarter 2025 Earnings

Oct -16

Source: businesswire.com

United Security Bancshares Declares Quarterly Cash Dividend

Sep -24

Source: businesswire.com

Zacks Initiates Coverage of UBFO With Neutral Recommendation

Sep -05

Source: zacks.com

United Security Bancshares Reports Second Quarter 2025 Earnings

Jul -17

Source: businesswire.com

United Security Bancshares Declares Quarterly Cash Dividend

Jun -25

Source: businesswire.com

United Security Bancshares Appoints Jay Gill as Vice Chairman

Apr -28

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Banking and Related Activities

Expected Growth: 4.5%

United Security Bancshares' Banking and Related Activities segment is expected to grow driven by increasing demand for traditional banking services, expansion of digital banking channels, and a strong loan portfolio. Additionally, a growing customer base and strategic partnerships will contribute to the segment's growth.

7. Detailed Products

Commercial Loans

United Security Bancshares offers a range of commercial loans to support businesses of all sizes, including lines of credit, term loans, and construction loans.

Mortgage Loans

The company offers a variety of mortgage loan options, including fixed-rate and adjustable-rate loans, government-backed loans, and jumbo loans.

Consumer Loans

United Security Bancshares offers personal loans, auto loans, and home equity loans to support individuals' financial needs.

Deposit Accounts

The company offers a range of deposit accounts, including checking and savings accounts, certificates of deposit (CDs), and individual retirement accounts (IRAs).

Treasury Management Services

United Security Bancshares offers treasury management services, including cash management, wire transfer services, and account reconciliation.

Wealth Management Services

The company offers wealth management services, including investment management, trust services, and financial planning.

8. United Security Bancshares's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for United Security Bancshares is moderate due to the presence of alternative banking services and financial institutions.

Bargaining Power Of Customers

The bargaining power of customers for United Security Bancshares is low due to the lack of concentration of buyers and the availability of multiple banking options.

Bargaining Power Of Suppliers

The bargaining power of suppliers for United Security Bancshares is low due to the availability of multiple suppliers and the lack of concentration of suppliers.

Threat Of New Entrants

The threat of new entrants for United Security Bancshares is high due to the relatively low barriers to entry and the attractiveness of the banking industry.

Intensity Of Rivalry

The intensity of rivalry for United Security Bancshares is high due to the high level of competition in the banking industry and the presence of multiple established players.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	37.59%
Debt Cost	6.84%
Equity Weight	62.41%
Equity Cost	6.84%
WACC	6.84%
Leverage	60.22%

11. Quality Control: United Security Bancshares passed 4 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

United Security Bancshares

A-Score: 7.3/10

Value: 6.8

Growth: 5.9

Quality: 7.4

Yield: 9.0

Momentum: 7.0

Volatility: 7.7

1-Year Total Return ->

First United

A-Score: 6.8/10

Value: 6.8

Growth: 6.3

Quality: 6.8

Yield: 7.0

Momentum: 7.5

Volatility: 6.7

1-Year Total Return ->

Central Pacific Financial

A-Score: 6.7/10

Value: 6.6

Growth: 5.0

Quality: 7.0

Yield: 8.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

S&T Bancorp

A-Score: 6.2/10

Value: 5.7

Growth: 5.6

Quality: 6.4

Yield: 8.0

Momentum: 3.5

Volatility: 8.0

1-Year Total Return ->

Bank of Princeton

A-Score: 5.8/10

Value: 5.8

Growth: 5.0

Quality: 6.2

Yield: 7.0

Momentum: 2.5

Volatility: 8.0

1-Year Total Return ->

Hope Bancorp

A-Score: 5.3/10

Value: 5.8

Growth: 3.6

Quality: 5.5

Yield: 8.0

Momentum: 2.0

Volatility: 7.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-7.40%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.84%

United Security Bancshares - US9114601035

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on UBFO

1.c. Company Highlights

Higher Yield

Average Growth

Stable Momentum

Medium Volatility

Average Quality

Better Quality

Less Volatile

Strong Momentum

Fairly Valued

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Banking and Related Activities

Expected Growth: 4.5%

7. Detailed Products

Commercial Loans

Mortgage Loans

Consumer Loans

Deposit Accounts

Treasury Management Services

Wealth Management Services

8. United Security Bancshares's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: United Security Bancshares passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

10.03$

Current Price

10.03$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA