Financial Performance - Total assets increased 2.9% to $1.37 billion compared to $1.33 billion at December 31, 2021[166] - Total loans, net of unearned fees, increased 10.4% to $962.2 million compared to $871.5 million at December 31, 2021[166] - Net interest income before the provision for credit losses increased 24.0% to $32.6 million for the nine months ended September 30, 2022, compared to $26.3 million for the same period in 2021[166] - Return on average assets ("ROAA") was 1.03% for the nine months ended September 30, 2022, compared to 0.75% for the same period in 2021[166] - Return on average equity ("ROAE") was 11.99% for the nine months ended September 30, 2022, compared to 7.55% for the same period in 2021[166] - Total interest income increased by $6.7 million, or 24.1%, for the nine months ended September 30, 2022, compared to the same period in 2021[192] - The company reported an increase in net interest income of $3,393 thousand for the three months ended September 30, 2022, compared to the same period in 2021[190] Asset and Liability Management - Total average assets reached $1,383,157 thousand in 2022, up from $1,270,323 thousand in 2021, reflecting a growth of approximately 8.9%[183] - Total liabilities increased to $1,269,329 thousand in 2022 from $1,149,771 thousand in 2021, marking a growth of about 10.4%[183] - Total shareholders' equity decreased to $113,828 thousand in 2022 from $120,552 thousand in 2021, indicating a decline of approximately 5.6%[183] - Cash and cash equivalents decreased by $93.2 million, or 42.5%, between December 31, 2021, and September 30, 2022[207] - Total deposits reached $1.24 billion, reflecting an increase of $52.7 million, or 4.4%, from $1.19 billion at December 31, 2021[221] - Average interest-bearing liabilities increased to $739.2 million for the nine months ended September 30, 2022, from $641.9 million for the same period in 2021[208] Loan Portfolio and Credit Quality - The loan portfolio totaled $960.5 million at September 30, 2022, an increase of $91.2 million, or 10.5%, from $869.3 million at December 31, 2021[209] - Real estate mortgage loans increased by $74.7 million, or 13.4%, during the first nine months of 2022[210] - Commercial and industrial loans increased by $16.9 million between December 31, 2021, and September 30, 2022[215] - Total loans outstanding increased from $809.1 million at September 30, 2021 to $962.2 million at September 30, 2022, representing a growth of 18.9%[270] - Impaired and classified loans totaled $11.8 million, or 1.2% of gross loans, as of September 30, 2022, down from $13.7 million, or 1.6%, at December 31, 2021[232] - The allowance for loan losses increased to $10.063 million as of September 30, 2022, from $9.333 million at December 31, 2021[241] Interest Income and Expense - Total interest income increased by $3.6 million, or 36.9%, for the three months ended September 30, 2022, compared to the same period in 2021[190] - The average yield on total interest-earning assets increased by 84 basis points, driven by higher yields on investment securities and loans due to market rate increases[190] - Net interest margin improved to 3.95% for the three months ended September 30, 2022, compared to 3.17% in the same period of 2021[190] - Total interest expense increased by approximately $399,000, or 26.1%, for the nine months ended September 30, 2022, compared to the same period in 2021[195] - Interest expense as a percentage of average earning assets rose to 0.24% in 2022 from 0.18% in 2021[190] Economic and Market Conditions - The Federal Open Market Committee increased the overnight benchmark rate by 300bps during 2022 to combat rising inflation[169] - The prime rate increased from 3.25% at September 30, 2021, to 6.25% at September 30, 2022, impacting both interest income and expense[188] - The effective tax rate for the nine months ended September 30, 2022, was 28.87%, compared to 28.28% for the same period in 2021[206] - The company continues to monitor economic conditions in the real estate market to adjust the allowance for loan losses as necessary[264] Dividends and Capital Management - The Company declared a cash dividend of $0.11 per share on common stock on September 27, 2022, totaling approximately $1.9 million[286] - The Bank's Tier 1 Capital Ratio was 9.60% at September 30, 2022, compared to 9.80% at September 30, 2021[280] - The Company's capital position remains well-capitalized with a 9.56% Tier 1 Leverage Ratio compared to 9.79% as of December 31, 2021[166] Noninterest Income and Expenses - Noninterest income decreased by $1.3 million to $789,000 for the nine months ended September 30, 2022, compared to $2.1 million in the same period in 2021[199] - Professional fees increased by $433,000, or 17.2%, for the nine months ended September 30, 2022, compared to the same period in 2021[202] - Salaries and employee benefits remained relatively stable, decreasing slightly by $13,000 to $8.8 million for the nine months ended September 30, 2022[202]

Table of Contents SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Commission file number: 000-32897 UNITED SECURITY BANCSHARES (Exact name of registrant as specified in its charter) | CALIFORNIA | 91-2112732 | | --- | --- | | (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | | 2126 Inyo Street, Fresno, California | 93721 | | (Address of principal executive offices) | (Zip Code) | Registrants telephone number, including area code (559) ...

Table of Contents SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Commission file number: 000-32897 UNITED SECURITY BANCSHARES (Exact name of registrant as specified in its charter) | CALIFORNIA | 91-2112732 | | --- | --- | | (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | | 2126 Inyo Street, Fresno, California | 93721 | | (Address of principal executive offices) | (Zip Code) | Registrants telephone number, including area code (559) ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2021. ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO . Commission file number: 000-32987 UNITED SECURITY BANCSHARES (Exact name of registrant as specified in its charter) CALIFORNIA 91-2112732 (State or other jurisdiction of i ...

Table of Content Indicate by check mark whether the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing for the past 90 days. Yes ☒ No ☐ Indicate by chec ...

UNITED SECURITY BANCSHARES (Exact name of registrant as specified in its charter) | CALIFORNIA | 91-2112732 | | --- | --- | | (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | | 2126 Inyo Street, Fresno, California | 93721 | | (Address of principal executive offices) | (Zip Code) | Registrants telephone number, including area code (559) 248-4943 Table of Content SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Commission file number: 0 ...

Table of Content SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Commission file number: 000-32897 UNITED SECURITY BANCSHARES (Exact name of registrant as specified in its charter) | CALIFORNIA | 91-2112732 | | --- | --- | | (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | | 2126 Inyo Street, Fresno, California | 93721 | | (Address of principal executive offices) | (Zip Code) | Registrants telephone number, including area code (559) ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2020. ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO . Commission file number: 000-32987 UNITED SECURITY BANCSHARES (Exact name of registrant as specified in its charter) CALIFORNIA 91-2112732 (State or other jurisdiction of i ...

Financial Performance - For the nine months ended September 30, 2020, the Company reported net income of $7,038,000, or $0.41 per share, compared to $12,276,000, or $0.72 per share, for the same period in 2019[176]. - The Company's return on average assets decreased to 0.93% for the nine months ended September 30, 2020, down from 1.70% for the same period in 2019[176]. - Total interest income decreased by $5,729,000, or 18.39%, compared to the same period in 2019[188]. - Noninterest income for the quarter ended September 30, 2020 decreased by $942,000 to $911,000, a decline of 50.84% compared to the same quarter in 2019[194]. - Noninterest income for the nine months ended September 30, 2020 decreased by $399,000 to $4,706,000, a decline of 7.82% compared to the same period in 2019[196]. - The effective tax rate for the nine months ended September 30, 2020, was 28.46%, a decrease from 28.90% for the same period in 2019[201]. Credit Losses and Provisions - The provision for credit losses recognized during the period ended September 30, 2020, was $2,138,000, contributing to the decrease in net income[176]. - The provision for credit losses was $2,138,000 for the nine months ended September 30, 2020, compared to only $15,000 for the same period in 2019, indicating a significant increase in risk assessment[262]. - Net charge-offs for the nine months ended September 30, 2020 totaled $1,338,000, a substantial increase from $180,000 for the same period in 2019[263]. - The allowance for credit losses at September 30, 2020 was 1.32% of outstanding loan balances, down from 1.45% at September 30, 2019[264]. Loan and Deposit Growth - Total loans outstanding increased from $569,500,000 at September 30, 2019 to $660,444,000 at September 30, 2020, representing a growth of 15.95%[263]. - Total deposits reached $994,783,000, an increase of $176,421,000, or 21.56%, from $818,362,000 at December 31, 2019[211]. - Noninterest-bearing checking accounts increased to $355,114,000, compared to $306,590,000 in the previous year[181]. - Interest-bearing deposits increased by $58,343,000, or 11.52%, from $506,412,000 at December 31, 2019, to $564,755,000 at September 30, 2020[213]. Asset Management - Total assets increased by $177,028,000, or 18.50%, to $1,133,947,000 as of September 30, 2020, compared to $956,919,000 at December 31, 2019[202]. - Average earning assets were approximately $926,935,000 for the nine months ended September 30, 2020, compared to $875,384,000 for the same period in 2019[203]. - The loan to deposit ratio was 65.5% at September 30, 2020, compared to 71.9% at December 31, 2019, indicating improved liquidity management[269]. Economic Impact and Market Conditions - The unemployment rate in Fresno County was reported at 10.4% as of September 2020, indicating economic challenges in the local market[164]. - The Company anticipates a short-term slowdown in new loan originations due to COVID-19, focusing on balance sheet management and maintaining market share[175]. - The Company is actively working with COVID-19 affected borrowers to defer payments, interest, and fees, which may impact future interest income[166]. Regulatory Compliance and Capital Ratios - The Company's capital ratios were in excess of all regulatory requirements as of September 30, 2020, indicating sufficient capital to withstand an extended economic recession[167]. - The Bank's ratio of tangible shareholders' equity to total tangible assets was 12.4% at September 30, 2020, well above the required minimum of 9%[277]. - The Company and the Bank meet all capital adequacy requirements and are expected to continue meeting minimum capital requirements in the foreseeable future[284]. Dividends and Stock Repurchase - The Bank paid $6,027,000 in cash dividends to the Holding Company during the nine months ended September 30, 2020[288]. - The Board of Directors declared a cash dividend of $0.11 per share on the Company's common stock on September 22, 2020, with approximately $1,867,000 transferred from retained earnings for distribution[289]. - The Company has authorized the repurchase of up to $3,000,000 of outstanding stock, representing 2.6% of total shareholders' equity of $118,053,000 as of September 30, 2020[287].

Financial Performance - For the six months ended June 30, 2020, the Company reported net income of $4,768,000 or $0.28 per share, a decrease from $8,104,000 or $0.48 per share for the same period in 2019 [179]. - Total interest income decreased by $3,280,000, or 15.82%, for the six months ended June 30, 2020, compared to the same period in 2019 [190]. - The company reported a decrease in net interest income of $1,726,000 for the three months ended June 30, 2020, compared to the same period in 2019 [188]. - Noninterest income for the quarter ended June 30, 2020, decreased by $515,000 to $1,214,000, a decline of 29.79% compared to the same quarter in 2019 [196]. - Noninterest income for the six months ended June 30, 2020, increased by $544,000 to $3,796,000, a rise of 16.73% compared to the same period in 2019 [197]. - The effective tax rate for the six months ended June 30, 2020, was 28.56%, a slight decrease from 28.89% for the same period in 2019 [202]. Asset and Liability Management - Total assets increased by $74,454,000, or 7.78%, to $1,031,373,000 as of June 30, 2020, compared to $956,919,000 at December 31, 2019 [203]. - Total deposits reached $893,112,000 at June 30, 2020, an increase of $74,750,000, or 9.13%, from $818,362,000 at December 31, 2019 [214]. - The loan to deposit ratio was 71.6% at June 30, 2020, slightly down from 71.9% at December 31, 2019 [270]. - Average interest-bearing liabilities decreased to $518,253,000 for the six months ended June 30, 2020, from $532,617,000 in the same period of 2019 [204]. - The Company held no brokered deposits at June 30, 2020, indicating a conservative funding strategy [193]. Loan Portfolio and Credit Quality - The Company anticipates potential increases in its required allowance for credit loss due to heightened credit risk in the loan portfolio resulting from COVID-19 [168]. - The allowance for credit losses was $9,124,000 for the period, compared to $8,442,000 in the previous year [181]. - Total impaired loans decreased from $17,072,000 at December 31, 2019 to $15,453,000 at June 30, 2020, a reduction of approximately 9.46% [240]. - Nonperforming loans decreased from $14,472,000 at December 31, 2019 to $13,997,000 at June 30, 2020, a decline of about 3.29% [251]. - The allowance for loan losses to nonperforming loans increased from 54.64% at December 31, 2019 to 63.31% at June 30, 2020 [252]. - The total allowance for loan losses increased to $8.86 million as of June 30, 2020, compared to $7.91 million at December 31, 2019 [230]. Economic and Market Conditions - The unemployment rate in Fresno County reached 15.7% as of May 2020, significantly impacting the local economy [167]. - Management recognizes increased risk of loss due to exposure to local and worldwide economic conditions, particularly in light of COVID-19 impacts [259]. - The Company is actively working with COVID-19 affected borrowers to defer payments, interest, and fees, in line with regulatory guidance [169]. - The Company continues to evaluate its strategic business plan in response to changing economic and market factors, focusing on balance sheet management and maintaining market share [178]. Capital Adequacy - As of June 30, 2020, the Company's capital ratios were in excess of all regulatory requirements, indicating sufficient capital to withstand an extended economic recession [170]. - The Company reported a total capital to risk-weighted assets ratio of 17.16%, down from 17.98% in 2019, exceeding the minimum requirement of 10.50% [280]. - The Tier 1 capital to risk-weighted assets ratio for the Company was 15.92% as of June 30, 2020, compared to 16.81% in 2019, above the minimum requirement of 8.50% [280]. - The Common Equity Tier 1 capital to risk-weighted assets ratio was 14.71% as of June 30, 2020, down from 15.39% in 2019, exceeding the minimum requirement of 7.00% [280]. - The Bank's ratio of tangible shareholders' equity to total tangible assets was 12.4% at June 30, 2020, above the required minimum of 9% [278]. Dividends and Shareholder Returns - The Bank paid $4,085,000 in cash dividends to the Holding Company during the six months ended June 30, 2020, funding its operating costs [285]. - A cash dividend of $0.11 per share was declared on June 23, 2020, with approximately $1,866,000 transferred from retained earnings for distribution [286]. - The Board of Directors authorized a stock repurchase program of up to $3,000,000, representing 2.6% of total shareholders' equity as of June 30, 2020 [284].