United Security Bancshares(UBFO) - 2025 Q2 - Quarterly Report

PART I. Financial Information This section presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations Item 1. Financial Statements (Unaudited) This section presents the unaudited condensed consolidated financial statements, including balance sheets, income statements, comprehensive income statements, statements of changes in shareholders' equity, and cash flow statements, along with detailed notes Condensed Consolidated Balance Sheets This statement provides a snapshot of the company's assets, liabilities, and shareholders' equity at specific points in time | (In thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $49,091 | $56,211 | | Total investment securities | $150,423 | $160,708 | | Net loans | $931,364 | $912,416 | | Other real estate owned | $7,852 | $4,582 | | Total assets | $1,214,137 | $1,211,718 | | Liabilities & Shareholders' Equity | | | | Total deposits | $1,055,669 | $1,057,622 | | Total liabilities | $1,079,883 | $1,081,356 | | Total shareholders' equity | $134,254 | $130,362 | | Total liabilities and shareholders' equity | $1,214,137 | $1,211,718 | - Net loans increased by $18.9 million from December 31, 2024, to June 30, 2025, reflecting organic growth[8][161] - Other real estate owned (OREO) increased by $3.3 million from December 31, 2024, to June 30, 2025, primarily due to the transfer of nonaccrual loans[8][132] Condensed Consolidated Statements of Income This statement details the company's revenues, expenses, and net income over specified reporting periods | (In thousands, except shares and EPS) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total interest income | $15,004 | $14,972 | $30,286 | $29,850 | | Total interest expense | $3,141 | $3,450 | $6,130 | $6,617 | | Net Interest Income | $11,863 | $11,522 | $24,156 | $23,233 | | Provision for credit losses | $1,858 | $19 | $4,158 | $192 | | Total noninterest income | $758 | $1,517 | $2,122 | $2,571 | | Total noninterest expense | $7,739 | $6,973 | $15,344 | $13,708 | | Net income | $2,169 | $4,297 | $4,851 | $8,458 | | Basic EPS | $0.13 | $0.25 | $0.28 | $0.49 | | Diluted EPS | $0.13 | $0.25 | $0.25 | $0.49 | - Net income for the quarter ended June 30, 2025, decreased by 49.52% to $2.2 million, compared to $4.3 million for the same period in 2024, primarily due to a significant increase in the provision for credit losses[9][132] - The provision for credit losses increased substantially to $1.9 million for the three months ended June 30, 2025, from $19k in the prior year, and to $4.2 million for the six months ended June 30, 2025, from $192k in the prior year[9][132] Condensed Consolidated Statements of Comprehensive Income This statement presents net income and other comprehensive income components, reflecting changes in equity not from net income | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $2,169 | $4,297 | $4,851 | $8,458 | | Unrealized gain (loss) on available-for-sale securities | $1,571 | $1,008 | $4,159 | $(61) | | Total other comprehensive income | $1,047 | $802 | $2,776 | $165 | | Comprehensive income | $3,216 | $5,099 | $7,627 | $8,623 | - Comprehensive income decreased by 37.0% for the three months ended June 30, 2025, and by 11.55% for the six months ended June 30, 2025, compared to the respective prior-year periods[10] - Unrealized gains on available-for-sale securities significantly increased to $4.2 million for the six months ended June 30, 2025, from a loss of $(61)k in the prior year[10] Condensed Consolidated Statements of Changes in Shareholders' Equity This statement tracks the changes in each component of shareholders' equity over the reporting period | (Dollars in thousands) | Balance June 30, 2025 | Balance June 30, 2024 | Balance December 31, 2024 | | :--- | :--- | :--- | :--- | | Common Stock (Amount) | $61,727 | $60,938 | $61,267 | | Retained Earnings | $84,103 | $81,285 | $83,447 | | Accumulated Other Comprehensive (Loss) Income | $(11,576) | $(14,873) | $(14,352) | | Total Shareholders' Equity | $134,254 | $127,350 | $130,362 | - Total shareholders' equity increased to $134.3 million at June 30, 2025, from $130.4 million at December 31, 2024, driven by net income and other comprehensive income, partially offset by dividends[11][12] - Accumulated other comprehensive loss improved to $(11.6) million at June 30, 2025, from $(14.4) million at December 31, 2024[11][12] Condensed Consolidated Statements of Cash Flows This statement categorizes cash inflows and outflows from operating, investing, and financing activities | (In thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | | Net Income | $4,851 | $8,458 | | Net cash provided by operating activities | $11,720 | $9,752 | | Net cash used in investing activities | $(12,692) | $(10,748) | | Net cash used in financing activities | $(6,148) | $(1,031) | | Net change in cash and cash equivalents | $(7,120) | $(2,027) | | Cash and cash equivalents at end of period | $49,091 | $38,757 | - Net cash provided by operating activities increased by $2.0 million to $11.7 million for the six months ended June 30, 2025, compared to the same period in 2024[13] - Net cash used in financing activities significantly increased to $(6.1) million for the six months ended June 30, 2025, from $(1.0) million in the prior year, primarily due to higher dividends on common stock[13] Notes to Condensed Consolidated Financial Statements This section provides detailed explanations and disclosures that are integral to understanding the condensed consolidated financial statements 1. Organization and Summary of Significant Accounting and Reporting Policies This note describes the company's corporate structure and outlines the significant accounting policies applied in preparing the financial statements - United Security Bancshares (Company) is a bank holding company with wholly-owned subsidiaries United Security Bank (Bank) and York Monterey Properties, Inc. (YMP)[14] - The unaudited interim financial statements are prepared in accordance with GAAP, consistent with the accounting policies in the 2024 Annual Report on Form 10-K[15] 2. Investment Securities This note details the composition, classification, and fair value of the company's investment securities portfolio | (In thousands) | June 30, 2025 (Fair Value) | December 31, 2024 (Fair Value) | | :--- | :--- | :--- | | U.S. Government agencies | $1,769 | $2,644 | | U.S. Government-sponsored entities and agencies collateralized by mortgage obligations | $76,285 | $78,881 | | Municipal bonds | $43,946 | $42,367 | | Corporate bonds | $25,041 | $33,490 | | Total securities available-for-sale | $147,041 | $157,382 | - Total available-for-sale (AFS) securities decreased by $10.3 million from December 31, 2024, to June 30, 2025[16] - The decline in fair value of AFS securities is attributed to changes in interest rates, not credit quality, and no allowance for credit losses was deemed necessary[20] - Proceeds from sales or calls of AFS securities for the six months ended June 30, 2025, totaled $9.0 million[17] 3. Loans This note provides a comprehensive breakdown of the loan portfolio, including categories, credit quality, and allowance for credit losses | (In thousands) | June 30, 2025 | % of Loans | December 31, 2024 | % of Loans | | :--- | :--- | :--- | :--- | :--- | | Commercial and industrial | $52,479 | 5.54% | $63,715 | 6.86% | | Real estate mortgage | $670,917 | 70.82% | $666,694 | 71.81% | | Real estate construction and development | $126,300 | 13.33% | $111,145 | 11.97% | | Agricultural | $64,838 | 6.84% | $49,462 | 5.33% | | Installment and student loans | $32,795 | 3.47% | $37,446 | 4.04% | | Total loans | $947,329 | 100.00% | $928,462 | 100.00% | - Total loans, net of unearned fees, increased by 2.03% to $947.3 million at June 30, 2025, from $928.5 million at December 31, 2024[30][163] - Agricultural loans increased by $15.4 million (31.09%) and real estate construction and development loans increased by $15.2 million (13.64%) from December 31, 2024, to June 30, 2025[164] - Total past due loans decreased to $7.3 million at June 30, 2025, from $15.8 million at December 31, 2024[37][38] - Nonaccrual loans decreased to $5.7 million at June 30, 2025, from $12.2 million at December 31, 2024, due to a loan payoff and transfer to OREO[39][190] | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Provision for credit losses (1) | $1,847 | $224 | $3,915 | $306 | | Charge-offs | $(1,317) | $(397) | $(4,146) | $(812) | | Recoveries | $79 | $45 | $150 | $171 | | Ending balance (Allowance for credit losses) | $15,965 | $15,323 | $15,965 | $15,323 | 4. Student Loans This note specifically addresses the student loan portfolio, its principal amounts, reserves, and changes over time | (Dollars in thousands) | June 30, 2025 (Principal Amount) | December 31, 2024 (Principal Amount) | | :--- | :--- | :--- | | Student loans | $29,412 | $33,889 | | Reserves against student loan portfolio | $7,600 | $7,000 | | Substandard student loans | $274 | $421 | - The student loan portfolio decreased by $4.477 million from December 31, 2024, to June 30, 2025, due to paydowns, consolidations, and charge-offs[63][169][173] - Accrued interest receivable reversed due to charge-offs for the six months ended June 30, 2025, was $292k, compared to $58k in the prior year[70][172] - Student loans have not been originated or purchased since 2019[63][169] 5. Deposits This note details the composition of the company's deposit base, distinguishing between interest-bearing and noninterest-bearing accounts | (In thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Noninterest-bearing deposits | $372,027 | $360,152 | | Interest-bearing deposits | $683,642 | $697,470 | | Total deposits | $1,055,669 | $1,057,622 | | Brokered demand deposit accounts | $100,300 | $100,300 | - Total deposits decreased slightly by $2.0 million (0.18%) from December 31, 2024, to June 30, 2025[72][174] - Noninterest-bearing deposits increased by $11.9 million, while interest-bearing deposits decreased by $13.8 million during the six-month period[175] 6. Short-term Borrowings/Other Borrowings This note outlines the company's short-term borrowing facilities, including available credit lines and outstanding balances | (In thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Unsecured credit lines (Credit limit) | $90,000 | $90,000 | | Federal Home Loan Bank (Credit limit) | $133,405 | $135,634 | | Federal Reserve Bank (Credit limit) | $503,607 | $499,069 | | Balance outstanding (all lines) | $0 | $0 | - The Company had no outstanding borrowings at June 30, 2025, or December 31, 2024[74][161][181] - Total available lines of credit amounted to $727.0 million at June 30, 2025[74][181] 7. Leases This note provides information on the company's operating and financing leases, including expenses and lease terms | (Dollars in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Operating cash flows from operating leases | $396 | $368 | | ROU assets obtained in exchange for new operating lease liabilities | $0 | $2,314 | | Weighted-average remaining lease term (years) | 8.82 | 8.71 | | Weighted-average discount rate | 5.06% | 5.06% | - Operating lease expenses for the six months ended June 30, 2025, totaled $394k, an increase from $363k in the prior year[77] - The Company had 14 operating leases and no financing leases as of June 30, 2025[76] 8. Supplemental Cash Flow Disclosures This note offers additional details on cash flow activities, such as cash paid for interest and income taxes, and non-cash transactions | (In thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Cash paid for interest | $6,094 | $6,602 | | Cash paid for income taxes | $1,850 | $4,400 | | Unrealized gain (loss) on available-for-sale securities, net of tax | $2,930 | $(43) | | Unrealized (loss) gain on junior subordinated debentures, net of tax | $(166) | $194 | - Cash paid for income taxes decreased significantly to $1.9 million for the six months ended June 30, 2025, from $4.4 million in the prior year[79] - Unrealized gain on available-for-sale securities, net of tax, was $2.9 million for the six months ended June 30, 2025, a substantial improvement from a loss of $(43)k in the prior year[79] 9. Dividends on and Repurchase of Common Stock This note reports on dividend declarations and any authorized or executed common stock repurchase programs - A cash dividend of $0.12 per share was declared on June 24, 2025, payable on July 22, 2025[80] - The Company has an authorized stock repurchase program of up to $3.0 million, representing 2.23% of total shareholders' equity at June 30, 2025[81][217] - No shares were repurchased during the three- and six-month periods ended June 30, 2025, and 2024[82] 10. Net Income per Common Share This note details the calculation of basic and diluted earnings per common share for the reporting periods | (In thousands, except shares and EPS) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income | $2,169 | $4,297 | $4,851 | $8,458 | | Basic earnings per share | $0.13 | $0.25 | $0.28 | $0.49 | | Diluted earnings per share | $0.13 | $0.25 | $0.28 | $0.49 | | Weighted average common shares outstanding (Basic) | 17,235,873 | 17,186,266 | 17,232,825 | 17,178,566 | | Weighted average common shares outstanding (Diluted) | 17,260,392 | 17,187,266 | 17,261,463 | 17,179,559 | - Basic and diluted EPS decreased by approximately 48% for the three months ended June 30, 2025, and by 42% for the six months ended June 30, 2025, compared to the prior-year periods[83] 11. Taxes on Income This note provides information on the provision for income taxes, effective tax rates, and deferred tax assets and liabilities | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Provision for income taxes | $855 | $1,750 | $1,925 | $3,446 | | Effective tax rate | 28.27% | 28.94% | 28.41% | 28.95% | - The provision for income taxes decreased by $895k for the quarter and $1.5 million for the six months ended June 30, 2025, compared to the prior-year periods[87] - The effective tax rate slightly decreased for both the three-month (28.27% vs 28.94%) and six-month (28.41% vs 28.95%) periods ended June 30, 2025, compared to 2024[87] - No valuation allowance was recorded for deferred tax assets at June 30, 2025, or December 31, 2024[85] 12. Junior Subordinated Debt/Trust Preferred Securities This note describes the company's junior subordinated debentures and related fair value measurements and interest rates - The contractual principal balance of junior subordinated debentures (TruPS) was $12.0 million at June 30, 2025, and December 31, 2024[88] - A partial redemption of $3.0 million of TruPS was made on July 1, 2025, reducing the contractual principal balance to $9.0 million[92] | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Fair value calculation loss | $(410) | $(104) | $(282) | $(244) | | Other comprehensive income (loss) gain | $(93) | $121 | $(235) | $275 | | Recognized loss on fair value | $(317) | $(225) | $(48) | $(520) | - The rate paid on TruPS is 3-month SOFR plus 129 basis points, adjusted quarterly[89] 13. Fair Value Measurements and Disclosure This note explains the fair value hierarchy and provides disclosures regarding the measurement of financial instruments at fair value - The fair value hierarchy categorizes inputs into Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (unobservable inputs)[98] | (In thousands) | June 30, 2025 (Fair Value) | Level 1 | Level 2 | Level 3 | | :--- | :--- | :--- | :--- | :--- | | Investment securities | $147,041 | $0 | $147,041 | $0 | | Marketable equity securities | $3,382 | $3,382 | $0 | $0 | | Loans, net | $901,983 | $0 | $0 | $901,983 | | Time deposits | $76,735 | $0 | $0 | $76,735 | | Junior subordinated debt | $11,831 | $0 | $0 | $11,831 | - Junior subordinated debt is classified as Level 3 due to the subjective nature of inputs, credit concerns in capital markets, and inactivity in trust preferred markets[107] - There were no transfers between fair value measurement classifications during the six months ended June 30, 2025, or 2024[100] 14. Goodwill and Intangible Assets This note reports on the carrying value of goodwill and intangible assets and assessments for impairment - Goodwill remained unchanged at $4.5 million at June 30, 2025, and December 31, 2024[112] - The Company concluded that goodwill was not impaired as of December 31, 2024, and no triggering events occurred through June 30, 2025[112] 15. Accumulated Other Comprehensive Income (Loss) This note details the components of accumulated other comprehensive income or loss, including unrealized gains and losses | (In thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net unrealized gain (loss) on available-for-sale securities | $(12,830) | $(15,760) | | Unfunded status of the supplemental retirement plans | $(135) | $(147) | | Net unrealized gain (loss) on junior subordinated debentures | $1,389 | $1,555 | | Accumulated other comprehensive loss | $(11,576) | $(14,352) | - The accumulated other comprehensive loss decreased to $(11.6) million at June 30, 2025, from $(14.4) million at December 31, 2024[113] - Net unrealized gain (loss) on available-for-sale securities improved by $2.9 million during the six months ended June 30, 2025[113] 16. Segment Information This note provides financial information about the company's operating segments, if any, and geographic concentrations - The Company operates as a single reportable segment, primarily banking operations, with all operations being domestic[114] | (In thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total revenue | $32,408 | $32,421 | | Banking segment net income | $4,851 | $8,458 | | Banking segment assets | $1,214,137 | $1,211,718 | 17. Investment in York Monterey Properties This note details the company's investment in its subsidiary, York Monterey Properties, Inc., and related asset transfers - The Bank's investment in York Monterey Properties, Inc. (YMP) totaled $8.0 million at June 30, 2025, up from $5.0 million at December 31, 2024[118] - On January 14, 2025, $3.3 million in nonaccrual loans related to YMP were foreclosed and transferred to Other Real Estate Owned (OREO)[117] - At June 30, 2025, $7.9 million of the total investment in YMP was recognized within OREO on the consolidated balance sheets[118] 18. Commitments and Contingent Liabilities This note discloses off-balance sheet commitments, such as credit extensions and letters of credit, and potential legal liabilities | (In thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Commitments to extend credit | $221,842 | $204,033 | | Standby letters of credit | $28,424 | $29,174 | - Commitments to extend credit increased by $17.8 million from December 31, 2024, to June 30, 2025[120] - Unfunded commitments for investment in limited partnerships totaled $2.2 million at both June 30, 2025, and December 31, 2024[122] - Management believes that any liability from legal proceedings would not have a material adverse effect on the Company's financial condition or results of operations[122] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's perspective on the company's financial performance, condition, and future outlook, analyzing key trends and drivers Overview This overview summarizes key financial highlights and significant changes in the company's performance and financial position - Net interest margin increased to 4.35% for the quarter ended June 30, 2025, up from 4.28% in the prior year[132] - Net income for the quarter decreased 49.52% to $2.2 million, primarily due to a $1.8 million increase in the provision for credit losses[132] - Annualized average cost of deposits increased to 1.11% for the quarter ended June 30, 2025, from 0.79% in the prior year[132] - Total loans, net of unearned fees, increased 2.03% to $947.3 million at June 30, 2025, compared to $928.5 million at December 31, 2024[132] - OREO balances increased from $4.6 million at December 31, 2024, to $7.9 million at June 30, 2025, due to the transfer of nonaccrual loans[132] Results of Operations This section analyzes the company's financial performance, focusing on net interest income, noninterest income, and operating expenses | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net income | $4.9M | $8.5M | | Annualized return on average assets (ROAA) | 0.82% | 1.42% | | Annualized return on average equity (ROAE) | 7.31% | 13.64% | | Net Interest Income | $24,156k | $23,233k | | Net Interest Margin | 4.46% | 4.31% | | Total noninterest income | $2,122k | $2,571k | | Total noninterest expense | $15,344k | $13,708k | | Effective tax rate | 28.41% | 28.95% | - Net interest income increased by $923k (3.97%) for the six months ended June 30, 2025, compared to the same period in 2024, driven by higher loan yields and lower short-term borrowing costs[149][151] - Noninterest income decreased by $449k (17.46%) for the six months ended June 30, 2025, primarily due to a $573k gain on life insurance proceeds in 2024 that did not recur[155] - Noninterest expense increased by $1.6 million (11.93%) for the six months ended June 30, 2025, mainly due to increases in salaries and employee benefits and data processing expenses[157] Financial Condition This section discusses the company's balance sheet, including assets, liabilities, equity, loan quality, and nonperforming assets | (In thousands) | June 30, 2025 | December 31, 2024 | Change ($) | | :--- | :--- | :--- | :--- | | Total assets | $1,214,137 | $1,211,718 | $2,419 | | Net loans | $931,364 | $912,416 | $18,948 | | Investment securities | $150,423 | $160,708 | $(10,285) | | Total deposits | $1,055,669 | $1,057,622 | $(1,953) | | Nonperforming assets | $13,824 | $17,201 | $(3,377) | | Nonaccrual loans | $5,698 | $12,198 | $(6,500) | | Other real estate owned | $7,852 | $4,582 | $3,270 | | Allowance for credit losses to total loans | 1.68% | 1.72% | -0.04% | | Allowance for credit losses to nonperforming loans | 267.33% | 127.16% | 140.17% | - Gross loans increased by $18.9 million (2.03%) to $947.3 million at June 30, 2025, compared to December 31, 2024[163] - Nonperforming assets decreased by $3.4 million (19.63%) to $13.8 million at June 30, 2025, from $17.2 million at December 31, 2024[190] - Net charge-offs for the six months ended June 30, 2025, totaled $4.0 million, significantly higher than $641k in the prior year, primarily due to student loan charge-offs[199][203] Liquidity and Capital Resources This section assesses the company's ability to meet its financial obligations and maintain adequate capital levels - The loan-to-deposit ratio increased to 89.74% at June 30, 2025, from 87.79% at December 31, 2024[209] - The Company had $727.0 million in unused lines of credit with the Federal Reserve Bank and FHLB at June 30, 2025[210] - Core deposits comprised approximately 87.43% of total deposits at June 30, 2025, providing a significant and stable funding source[179][210] | Capital Ratios | June 30, 2025 | December 31, 2024 | Minimum Requirement | | :--- | :--- | :--- | :--- | | Company Tier 1 capital to adjusted average assets (Leverage Ratio) | 12.83% | 12.57% | 9.00% | | Bank Tier 1 capital to adjusted average assets (Leverage Ratio) | 12.56% | 12.59% | 9.00% | - Both the Company and the Bank meet all capital adequacy requirements, with Tier 1 Leverage Ratios well above the 9.00% minimum[213][215] - A cash dividend of $0.12 per share was declared on June 24, 2025, and a partial redemption of $3.0 million of TruPS was made on July 1, 2025[218][219] Item 3. Quantitative and Qualitative Disclosures about Market Risk This section is not applicable to smaller reporting companies, as stated in the report - This item is not applicable to smaller reporting companies[221] Item 4. Controls and Procedures Management, including the Chief Executive Officer and Chief Financial Officer, concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025. No material changes to internal control over financial reporting occurred during the quarter - Disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025[223] - No changes were made to the Company's internal control over financial reporting during the quarter ended June 30, 2025, that materially affected or were reasonably likely to materially affect it[224] - Controls and procedures provide reasonable, not absolute, assurance that objectives will be met, acknowledging inherent limitations[225] PART II. Other Information This section includes additional disclosures such as legal proceedings, risk factors, equity sales, and exhibits Item 1. Legal Proceedings The Company is involved in various legal proceedings in the normal course of business, but management believes any resulting liability would not have a material adverse effect on its financial condition or results of operations - The Company is involved in various legal proceedings in the normal course of business[227] - Management believes that any ultimate liability from these proceedings would not be material to the Company's financial position or results of operations[227] Item 1A. Risk Factors This section is marked as 'N/A' in the report, indicating no new material risk factors for the quarter - This item is not applicable (N/A)[228] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds This section reports on any unregistered sales of equity securities and the application of their proceeds - No unregistered sales of equity securities and use of proceeds occurred during the quarter ended June 30, 2025[228] Item 3. Defaults Upon Senior Securities This item is marked as 'N/A' in the report - This item is not applicable (N/A)[229] Item 4. Mine Safety Disclosures This item is marked as 'N/A' in the report - This item is not applicable (N/A)[229] Item 5. Other Information This item is marked as 'N/A' in the report - This item is not applicable (N/A)[229] Item 6. Exhibits This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, executive agreements, equity plans, and certifications required by SEC regulations - Exhibits include Articles of Incorporation, Bylaws, Executive Salary Continuation Agreements, Employment Agreements, Stock Option Plans, and Equity Incentive Award Plans[231] - Computation of earnings per share is provided in Note 10 to the Consolidated Financial Statements[231][233] - Interactive data files are furnished pursuant to Rule 405 of Regulation S-T[232] - Certifications of the Chief Executive Officer and Chief Financial Officer are included pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[237] Signatures The report is duly signed on August 7, 2025, by Dennis R. Woods, President and Chief Executive Officer, and David A. Kinross, Senior Vice President and Chief Financial Officer, as authorized representatives of United Security Bancshares - The report was signed on August 7, 2025[240] - Signed by Dennis R. Woods, President and Chief Executive Officer, and David A. Kinross, Senior Vice President and Chief Financial Officer[240]