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United Security Bancshares(UBFO) - 2025 Q1 - Quarterly Results

Financial Performance - Net income for the quarter ended March 31, 2025, decreased 35.54% to 2.7million,comparedto2.7 million, compared to 4.2 million for the same quarter in 2024[4] - Net income for the three months ended March 31, 2025, was 2,682thousand,down35.72,682 thousand, down 35.7% from 4,161 thousand for the same period in 2024[27] - Net income for Q1 2025 decreased to 2,682,000,down35.52,682,000, down 35.5% from 4,161,000 in Q1 2024[36] - Noninterest income rose to 1,360thousandinQ12025,up29.11,360 thousand in Q1 2025, up 29.1% from 1,053 thousand in Q1 2024[27] - Total non-interest income for Q1 2025 was 1,360,000,significantlyhigherthan1,360,000, significantly higher than 120,000 in Q4 2024, showing a strong recovery in non-interest revenue[32] Interest and Loans - Net interest margin increased to 4.58% for the quarter ended March 31, 2025, compared to 4.35% for the same quarter in 2024[4] - The average interest rate on loans increased to 6.17% in Q1 2025, compared to 6.00% in Q1 2024[28] - Net interest income after provision for credit losses was 9,996thousandforQ12025,comparedto9,996 thousand for Q1 2025, compared to 11,541 thousand in Q1 2024, reflecting a decrease of 13.4%[27] - Total interest income for Q1 2025 was 15,283,000,anincreasefrom15,283,000, an increase from 14,879,000 in Q1 2024, representing a growth of 2.7%[32] Credit Losses and Asset Quality - Provision for credit losses was 2.3millionforthequarterendedMarch31,2025,comparedto2.3 million for the quarter ended March 31, 2025, compared to 173,000 for the same quarter in 2024[17] - The provision for credit losses increased significantly to 2,300thousandinQ12025,comparedtoonly2,300 thousand in Q1 2025, compared to only 173 thousand in Q1 2024[27] - The allowance for credit losses was 15,356thousandasofMarch31,2025,downfrom15,356 thousand as of March 31, 2025, down from 16,046 thousand at December 31, 2024[26] - The allowance for credit losses to nonperforming loans increased to 241.79% in Q1 2025 from 127.16% in Q4 2024, reflecting a stronger reserve position[33] - The company reported a net charge-off rate of 1.22% for Q1 2025, compared to 0.13% in Q1 2024, indicating increased credit risk[34] Expenses and Efficiency - Noninterest expense increased 12.85% to 7.6millionforthequarterendedMarch31,2025,comparedto7.6 million for the quarter ended March 31, 2025, compared to 6.7 million for the same quarter in 2024[9] - The efficiency ratio for the quarter ended March 31, 2025, increased to 55.90%, compared to 52.96% for the same quarter in 2024[10] - Total noninterest expense increased to 7,604thousandinQ12025,comparedto7,604 thousand in Q1 2025, compared to 6,738 thousand in Q1 2024, marking an increase of 12.8%[27] - The efficiency ratio for Q1 2025 was 55.90%, compared to 52.96% in Q1 2024, indicating increased operational costs relative to income[34] Deposits and Loans - Total deposits decreased 2.97% to 1.03billionduringthequarterendedMarch31,2025,comparedto1.03 billion during the quarter ended March 31, 2025, compared to 1.06 billion at December 31, 2024[14] - Total deposits decreased to 1,026,213thousandasofMarch31,2025,from1,026,213 thousand as of March 31, 2025, from 1,057,622 thousand at December 31, 2024, a reduction of about 3.0%[26] - Total loans, net of unearned fees, decreased 0.84% to 920.7million,comparedto920.7 million, compared to 928.5 million at December 31, 2024[4] - The loan-to-deposit ratio as of March 31, 2025, was 89.71%, up from 87.79% in Q4 2024, suggesting a tighter liquidity position[34] Assets - Total assets decreased to 1,191,791thousandasofMarch31,2025,from1,191,791 thousand as of March 31, 2025, from 1,211,718 thousand at December 31, 2024, representing a decline of approximately 1.6%[26] - Total assets as of March 31, 2025, were 1,191,791,000,adecreasefrom1,191,791,000, a decrease from 1,206,404,000 as of March 31, 2024[31] - Non-performing assets decreased 3.0millionto3.0 million to 14.2 million between December 31, 2024, and March 31, 2025[19] - Nonperforming assets decreased to 14,203,000inQ12025from14,203,000 in Q1 2025 from 17,201,000 in Q4 2024, indicating improved asset quality[33] Shareholders' Equity - Shareholders' equity at March 31, 2025, totaled 132.9million,anincreaseof132.9 million, an increase of 2.5 million from $130.4 million at December 31, 2024[15]