Core Insights - United Security Bancshares reported a 35.7% year-over-year increase in earnings per share for Q4 2025, reaching 19 cents, while full-year earnings decreased by 16.9% to $12.3 million [1][3] Financial Performance - Net income for Q4 2025 was $3.4 million, a 36.8% increase from $2.5 million in the same quarter last year, driven by a reduction in credit loss provisions and lower borrowing costs [2] - Net interest income for Q4 rose 3.3% year-over-year to $12.2 million, with net interest margin expanding to 4.36% from 4.22% [4] - For the full year, net interest income before provisions for credit losses increased by 4.1% to $48.8 million, with the annual net interest margin improving to 4.41% [5] Noninterest Income and Expenses - Noninterest income surged over tenfold in Q4 to $1.3 million, primarily due to gains from the fair value and partial redemption of junior subordinated debentures [6] - Noninterest expenses rose 18.5% year-over-year to $8.8 million, largely due to merger-related costs and increased salaries, leading to a worsened efficiency ratio of 65.1% [7] Management Commentary - The CEO highlighted strong execution in Q4, emphasizing net income growth and margin expansion, attributing improvements to effective deposit cost control [8] Performance Drivers - Lower borrowing costs and deposit expenses helped mitigate declines in loan and investment income, while elevated provision expenses and rising costs pressured profitability [9] Credit Quality - The allowance for credit losses decreased to 1.62% of total loans, and non-performing assets fell to 1.12% of total assets, although net loan charge-offs more than doubled to $6.1 million [10] Strategic Developments - An all-stock merger agreement with Community West Bancshares was announced, expected to close in 2026, alongside a cash dividend declaration of 12 cents per share [11] - The company redeemed $6 million in TruPS, generating gains of $0.5 million for the year, enhancing capital flexibility [12]

Core Viewpoint - The proposed sale of United Security Bancshares to Community West Bancshares is under investigation to assess whether the transaction adequately values United Security Bancshares [1] Group 1: Transaction Details - Shareholders of United Security Bancshares will receive 0.4520 shares of Community West Bancshares for each share they own in United [1] Group 2: Legal Investigation - Kahn Swick & Foti, LLC is investigating the adequacy of the proposed transaction and the process leading to it [1] - The firm is open to discussions regarding legal rights related to the proposed sale without obligation or cost to interested parties [2]

Financial Performance - For the year ended December 31, 2025, the company reported net income of $12.3 million, a decrease of 16.88% compared to $14.8 million for the year ended December 31, 2024[13]. - Net income for the fourth quarter of 2025 increased 36.83% to $3.4 million, compared to $2.5 million for the fourth quarter of 2024[4]. - Net income for the twelve months ended December 31, 2025, was $12,288 thousand, down from $14,783 thousand in 2024, a decrease of 16.9%[36]. - Basic net income per common share decreased to $0.70 in 2025 from $0.85 in 2024, a decline of 17.6%[36]. Interest Income and Margin - The net interest margin increased to 4.36% for the quarter ended December 31, 2025, compared to 4.22% for the same quarter in 2024[4]. - Net interest income for the twelve months ended December 31, 2025, was $48,771 thousand, compared to $46,850 thousand for the same period in 2024, reflecting a growth of 4.1%[36]. - Total interest income for Q4 2025 was $14,899,000, a decrease from $15,626,000 in Q3 2025[42]. - Net interest income after provision for credit losses for Q4 2025 was $11,727,000, compared to $11,471,000 in Q3 2025[42]. Noninterest Income and Expense - Noninterest income for the quarter ended December 31, 2025, totaled $1.3 million, an increase of 1020.83% from $120,000 in the same quarter of 2024[8]. - Noninterest income for the year ended December 31, 2025, totaled $5.1 million, an increase of $373,000 from $4.7 million in 2024, primarily due to a gain of $391,000 on the fair value of TruPS[16]. - Noninterest expense increased 18.55% to $8.8 million for the quarter ended December 31, 2025, compared to $7.4 million for the same quarter in 2024[9]. - Noninterest expense for the year ended December 31, 2025, totaled $31.6 million, reflecting a $3.3 million increase over $28.3 million in 2024, driven by increases in salaries, employee benefits, and merger expenses[17]. - Total noninterest expense increased to $31,588 thousand in 2025 from $28,280 thousand in 2024, representing an increase of 8.1%[36]. Asset and Deposit Growth - Total assets increased by $36.6 million, or 3.02%, from December 31, 2024, to December 31, 2025, with total cash and cash equivalents increasing by $64.7 million[20]. - Total deposits increased 2.95% to $1.09 billion compared to $1.06 billion at December 31, 2024[4]. - Total deposits increased by $31.2 million, or 2.95%, to $1.09 billion during the year ended December 31, 2025, driven by a $61.7 million increase in noninterest-bearing deposits[21]. - Total deposits rose to $1,088,780 thousand in 2025, up from $1,057,622 thousand in 2024, marking an increase of 2.9%[35]. - Total deposits reached $1,088,780,000 as of December 31, 2025, up from $1,075,900,000 at the end of Q3 2025[41]. Credit Losses and Nonperforming Assets - The company recorded a provision for credit losses of $468,000 for the quarter ended December 31, 2025, down from $1.2 million for the same quarter in 2024[4]. - The Company recorded a provision for credit losses of $5.6 million for the year ended December 31, 2025, compared to $3.0 million in 2024, primarily due to deterioration in the student loan portfolio[24]. - Provision for credit losses increased to $5,574 thousand for the twelve months ended December 31, 2025, compared to $2,963 thousand in 2024, an increase of 88.2%[36]. - Non-performing assets decreased to $13.9 million, or 1.12% of total assets, down from 1.42% in 2024, attributed to a decrease in nonaccrual loans[26]. - Total nonperforming assets decreased to $13,907,000 as of December 31, 2025, from $17,201,000 a year prior[43]. - Nonperforming loans to total gross loans ratio improved to 0.63% as of December 31, 2025, down from 1.36% a year earlier[43]. - The allowance for credit losses to nonperforming loans ratio increased to 258.68% as of December 31, 2025, from 127.16% a year earlier[43]. Efficiency and Ratios - The efficiency ratio for the quarter ended December 31, 2025, increased to 65.09%, compared to 60.79% for the same quarter in 2024[10]. - The efficiency ratio for the year ended December 31, 2025, increased to 58.76%, compared to 54.82% in 2024, indicating that noninterest expenses grew faster than noninterest income and net interest income[18]. - The efficiency ratio for Q4 2025 was 65.09%, compared to 60.79% in Q4 2024[44]. - Return on average assets for Q4 2025 was 1.12%, an increase from 0.81% in Q4 2024[44]. Shareholder Information - Shareholders' equity at December 31, 2025, totaled $139.7 million, an increase of $9.3 million from $130.4 million in 2024, attributed to $12.3 million in net income[22]. - The Company declared a cash dividend of $0.12 per share on December 16, 2025, to be paid on January 13, 2026[23]. - The company reported a total shareholders' equity of $139,683 thousand in 2025, up from $130,362 thousand in 2024, an increase of 7.5%[35]. - Book value per share increased to $7.94 as of December 31, 2025, compared to $7.51 a year earlier[44]. Merger Information - The company’s pending merger with Community West Bancshares is on track to close in 2026, which is expected to enhance value for customers, employees, and shareholders[3].

Core Points - Community West Bancshares and United Security Bancshares are set to merge in an all-stock transaction, with two directors from United Security Bancshares joining the board of Community West Bancshares upon completion of the merger [1][2] - The merger aims to enhance the banking franchise and better serve communities in Central California [2] Company Overview - Community West Bancshares, established in 1979, operates Community West Bank, which provides a range of banking services across Central California [3] - United Security Bancshares, founded in 1987, is the holding company for United Security Bank, offering commercial and personal banking services through 13 branches in various locations [5] Leadership Changes - Jagroop "Jay" Gill, the largest shareholder and Vice Chairman of United Security Bancshares, is expected to be appointed Vice Chairman of Community West Bancshares' board [1]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Viewpoint - United Security Bancshares declared a regular quarterly cash dividend of $0.12 per share on its common stock, reflecting the company's ongoing commitment to returning value to shareholders [1]. Group 1: Dividend Announcement - The dividend is scheduled to be payable on January 13, 2026 [1]. - Shareholders of record as of December 26, 2025, will be eligible to receive the dividend [1]. Group 2: Company Overview - United Security Bancshares is the parent company of United Security Bank, listed on NASDAQ under the ticker UBFO [1].

Core Viewpoint - Monteverde & Associates PC is investigating the proposed sale of United Security Bancshares to Community West Bancshares, questioning the fairness of the deal for shareholders [1]. Group 1: Company Overview - Monteverde & Associates PC is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report and has recovered millions for shareholders [1]. - The firm is headquartered in the Empire State Building, New York City, and specializes in class action securities litigation [2]. Group 2: Transaction Details - Under the terms of the proposed transaction, United Security shareholders are expected to receive 0.4520 shares of Community West common stock for each share of United Security common stock [1].

Core Viewpoint - Halper Sadeh LLC is investigating the fairness of the sale of United Security Bancshares to Community West Bancshares, specifically whether the exchange ratio of 0.4520 shares of Community West common stock for each share of United Security common stock is equitable for United Security shareholders [1]. Group 1 - The investigation focuses on potential violations of federal securities laws and breaches of fiduciary duties by United Security and its board of directors [3]. - Key concerns include whether the best possible consideration was obtained for shareholders, if Community West is underpaying for United Security, and whether all material information necessary for shareholders to assess the merger was disclosed [3]. - Halper Sadeh LLC may seek increased consideration for shareholders, additional disclosures, and other forms of relief related to the proposed transaction [4].

Core Viewpoint - The Ademi Firm is investigating United Security Bancshares for potential breaches of fiduciary duty related to its transaction with Community West Bancshares [1] Transaction Details - United Security Bancshares shareholders will receive 0.4520 shares of Community West Bancshares common stock for each share they own, valuing United Security Bancshares at $10.88 per share based on Community West Bancshares' closing price of $24.06 on December 16, 2025 [2] - Insiders of United Security Bancshares will receive substantial benefits as part of change of control arrangements [2] Investigation Focus - The transaction agreement imposes significant penalties for United Security Bancshares if it accepts competing bids, which may limit shareholder options [3] - The investigation will assess whether the board of directors of United Security Bancshares is fulfilling its fiduciary duties to all shareholders [3]

Core Viewpoint - Community West Bancshares and United Security Bancshares have announced a definitive merger agreement to combine in an all-stock transaction [1] Company Summary - Community West Bancshares is the parent company of Community West Bank, located in Fresno, California [1] - United Security Bancshares is the parent company of United Security Bank, also based in Fresno, California [1] - The merger will involve United Security Bancshares merging into Community West Bancshares [1]