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

Cover Page Information This section identifies UNITED SECURITY BANCSHARES, its Nasdaq symbol, filer classification, and outstanding common stock - The registrant is UNITED SECURITY BANCSHARES, trading under the symbol UBFO on Nasdaq[1][2] - The Company is classified as a Non-accelerated filer and a Smaller reporting company[3] - As of April 30, 2025, there were 17,475,927 shares of Common Stock, no par value, outstanding[4] - This is a Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the period ended March 31, 2025[4] PART I. Financial Information This part presents the Company's unaudited condensed consolidated financial statements and management's discussion and analysis for the reporting period Item 1. Financial Statements (Unaudited) This section presents the unaudited condensed consolidated financial statements, including balance sheets, income, comprehensive income, equity, and cash flows, with detailed notes Condensed Consolidated Balance Sheets This section provides a snapshot of the Company's financial position, detailing assets, liabilities, and shareholders' equity at specific dates | (In thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total assets | $ 1,191,791 | $ 1,211,718 | | Total liabilities | $ 1,058,915 | $ 1,081,356 | | Total shareholders' equity | $ 132,876 | $ 130,362 | - Total assets decreased by $19.9 million (1.6%) from December 31, 2024, to March 31, 2025[7] - Total liabilities decreased by $22.4 million (2.1%) from December 31, 2024, to March 31, 2025[7] - Shareholders' equity increased by $2.5 million (1.9%) from December 31, 2024, to March 31, 2025[7] Condensed Consolidated Statements of Income This section details the Company's revenues, expenses, and net income for the three-month periods ended March 31, 2025, and 2024 | (In thousands, except shares and EPS) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total interest income | $ 15,283 | $ 14,879 | | Total interest expense | $ 2,987 | $ 3,165 | | Net Interest Income | $ 12,296 | $ 11,714 | | Provision for credit losses | $ 2,300 | $ 173 | | Total noninterest income | $ 1,360 | $ 1,053 | | Total noninterest expense | $ 7,604 | $ 6,738 | | Net income | $ 2,682 | $ 4,161 | | Basic EPS | $ 0.16 | $ 0.24 | | Diluted EPS | $ 0.16 | $ 0.24 | - Net income decreased by 35.5% to $2.7 million for Q1 2025 compared to $4.2 million for Q1 2024, primarily due to a significant increase in provision for credit losses[8][133] Condensed Consolidated Statements of Comprehensive Income This section presents the Company's comprehensive income, including net income and other comprehensive income components, for the specified periods | (In thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net Income | $ 2,682 | $ 4,161 | | Unrealized gain (loss) on available-for-sale securities | $ 2,588 | $ (1,069) | | Total other comprehensive income (loss) | $ 1,729 | $ (637) | | Comprehensive income | $ 4,411 | $ 3,524 | - Comprehensive income increased by 25.2% to $4.4 million for Q1 2025, driven by a significant unrealized gain on available-for-sale securities, despite a decrease in net income[10] Condensed Consolidated Statements of Changes in Shareholders' Equity This section outlines the changes in shareholders' equity, reflecting the impact of net income, other comprehensive income, dividends, and stock-based compensation | (Dollars in thousands) | Balance December 31, 2024 | Other comprehensive income | Dividends payable | Stock-based compensation expense | Net income | Balance March 31, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total | $ 130,362 | $ 1,729 | $ (2,097) | $ 200 | $ 2,682 | $ 132,876 | - Shareholders' equity increased from $130.4 million at December 31, 2024, to $132.9 million at March 31, 2025, primarily due to net income and other comprehensive income, partially offset by dividends[11] Condensed Consolidated Statements of Cash Flows This section details the Company's cash inflows and outflows from operating, investing, and financing activities for the three-month periods | (In thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $ 3,018 | $ 7,448 | | Net cash provided by investing activities | $ 4,159 | $ 4,386 | | Net cash used in financing activities | $ (25,494) | $ (9,614) | | Net change in cash and cash equivalents | $ (18,317) | $ 2,220 | | Cash and cash equivalents at end of period | $ 37,894 | $ 43,004 | - Net cash provided by operating activities decreased significantly from $7.4 million in Q1 2024 to $3.0 million in Q1 2025[13] - Net cash used in financing activities increased substantially from $9.6 million in Q1 2024 to $25.5 million in Q1 2025, leading to a net decrease in cash and cash equivalents[13] Notes to Condensed Consolidated Financial Statements This section provides detailed disclosures for financial statements, covering accounting policies, investments, loans, deposits, borrowings, and fair value measurements Note 1. Organization and Summary of Significant Accounting and Reporting Policies This note describes the Company's organizational structure and outlines the significant accounting and reporting policies applied in the financial statements - The consolidated financial statements include United Security Bancshares and its wholly-owned subsidiary, United Security Bank[14] - Unaudited financial statements are prepared in accordance with GAAP for interim information, consistent with the 2024 Annual Report on Form 10-K[15] Note 2. Investment Securities This note provides details on the Company's investment securities portfolio, including amortized cost, fair value, and unrealized gains or losses | (In thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Amortized Cost | $ 176,938 | $ 179,753 | | Fair Value | $ 157,155 | $ 157,382 | | Gross Unrealized Losses | $ (19,837) | $ (22,409) | - Unrealized losses on available-for-sale securities are attributed to changes in interest rates and not credit quality, with no credit losses recorded for Q1 2025 or Q1 2024[24] - Approximately $95.7 million (amortized cost) of AFS securities were pledged as collateral at March 31, 2025[22] Note 3. Loans This note provides a detailed breakdown of the Company'