United Security Bancshares(UBFO) - 2024 Q4 - Annual Results

Financial Performance - Net income for the year ended December 31, 2024, decreased 25.3% to $14.8 million, compared to $19.8 million for the year ended December 31, 2023[12]. - For the quarter ended December 31, 2024, net income was $2.5 million, a decrease of 53.8% compared to $5.4 million for the same quarter in 2023[4]. - Noninterest income for the quarter ended December 31, 2024, totaled $120,000, a decrease of $2.9 million from $3.0 million in the same quarter of 2023[8]. - The annualized return on average assets (ROAA) decreased to 0.81% for the quarter ended December 31, 2024, compared to 1.72% for the same quarter in 2023[5]. - Net income for the three months ended December 31, 2024, was $2,495,000, a decrease of 34.9% from $3,829,000 in the previous quarter[36]. - Basic net income per common share for the three months ended December 31, 2024, was $0.15, down from $0.22 in the previous quarter, reflecting a decrease of 31.8%[36]. - Non-GAAP core net income for the year ended December 31, 2024, was $15,216,000, a decrease of 22.4% from $19,601,000 in 2023[47]. Deposits and Loans - Total deposits increased 5.3% to $1.06 billion as of December 31, 2024, compared to $1.00 billion at the end of 2023[4]. - Total deposits increased by $53.1 million, or 5.3%, to $1.1 billion as of December 31, 2024, driven by a $96.2 million increase in interest-bearing deposits[21]. - Interest-bearing deposits increased by $96.2 million, while noninterest-bearing deposits decreased by 10.7% to $360.2 million[21]. - Core deposits decreased by $56.6 million, reflecting a decline in noninterest-bearing deposits and savings accounts[21]. - Total loans, net of unearned fees, increased 0.92% to $928.5 million as of December 31, 2024, compared to $920.0 million at the end of 2023[4]. - Average loans for the three months ended December 31, 2024, were $939,110,000, a slight increase from $935,637,000 in the same period last year[38]. Expenses and Efficiency - Noninterest expense for the year ended December 31, 2024, totaled $28.3 million, an increase of $2.3 million compared to $26.0 million for the year ended December 31, 2023[17]. - The efficiency ratio for the quarter ended December 31, 2024, increased to 60.79%, compared to 46.40% for the same quarter in 2023[10]. - Total noninterest expense increased to $7,430,000 for the three months ended December 31, 2024, compared to $7,142,000 in the previous quarter, marking an increase of 4.0%[36]. - Efficiency ratio for Q4 2024 was 60.79%, up from 46.40% in Q4 2023, indicating increased operational costs[45]. Assets and Equity - Shareholders' equity rose to $130.4 million, an increase of $7.8 million from $122.5 million at December 31, 2023, due to $14.8 million in net income[22]. - The total assets of the company were $1.211 billion as of December 31, 2024, compared to $1.211 billion at December 31, 2023[34]. - Total assets decreased to $1,211,718,000 in Q4 2024 from $1,211,045,000 in Q4 2023, a decline of 0.04%[41]. - Total equity increased to $132,920,000 as of December 31, 2024, compared to $117,520,000 a year earlier, reflecting a growth of 13.1%[38]. Credit Quality - The provision for credit losses was $3.0 million for the year ended December 31, 2024, compared to $1.5 million in 2023, primarily due to charge-offs in the student loan portfolio[25]. - Non-performing assets increased by $745,000 to $17.2 million, representing 1.42% of total assets as of December 31, 2024, up from 1.36% in 2023[27]. - The allowance for credit losses was 1.72% of the loan portfolio at December 31, 2024, compared to 1.70% at December 31, 2023[26]. - Nonperforming loans to total gross loans increased to 1.36% in Q4 2024 from 1.29% in Q4 2023[44]. - Provision for credit losses was $1,213,000 in Q4 2024, compared to $873,000 in Q4 2023, reflecting a significant increase[42].