United Security Bancshares(UBFO) - 2025 Q3 - Quarterly Report

Financial Performance - Net income for Q3 2025 rose 5.07% to $4.0 million, compared to $3.8 million in Q3 2024[134] - Year-to-date net income for the nine months ended September 30, 2025, was $8.9 million, down from $12.3 million for the same period in 2024[140] - Noninterest income fell 20.02% to $1.6 million in Q3 2025, down from $2.0 million in Q3 2024, primarily due to a decrease in fair value gains on junior subordinated debentures[134] - Noninterest income for the nine months ended September 30, 2025, decreased by $852,000 to $3.7 million compared to the same period in 2024[158] Loan and Deposit Growth - Total loans increased 3.22% to $958.3 million as of September 30, 2025, from $928.5 million at December 31, 2024[134] - Total deposits grew 1.73% to $1.08 billion as of September 30, 2025, compared to $1.06 billion at December 31, 2024[134] - Total loans outstanding at the end of the period were $958.3 million at September 30, 2025, down from $975.2 million at September 30, 2024[207] - Total deposits reached $1.08 billion at September 30, 2025, marking an increase of $18.3 million, or 1.73%, from December 31, 2024[178] Interest Income and Margin - Net interest margin increased to 4.35% for Q3 2025, up from 4.20% in Q3 2024[134] - Total interest income decreased by $129,000, or 0.82%, for the three months ended September 30, 2025, compared to the same period in 2024[150] - The net interest margin for the three months ended September 30, 2025, was 4.35%, compared to 4.20% for the same period in 2024[142] - The Company's net interest margin increased to 4.42% for the nine months ended September 30, 2025, compared to 4.27% for the same period in 2024[154] Expenses and Efficiency - Noninterest expense increased 4.09% to $7.4 million in Q3 2025, compared to $7.1 million in Q3 2024, driven by higher technology and employee benefit expenses[134] - Salaries and employee benefits increased by $977,000, or 9.38%, for the nine months ended September 30, 2025, compared to the same period in 2024[160] - Data processing expenses increased by 57.22% to $1.22 million for the nine months ended September 30, 2025, compared to the same period in 2024[160] Asset Quality - Total nonperforming assets decreased by $3.1 million, or 18.03%, from $17,201,000 to $14,106,000[195] - Nonaccrual loans decreased by $6.5 million, or 53.31%, from $12,198,000 to $5,699,000[196] - The allowance for credit losses to nonperforming loans increased to 259.59% as of September 30, 2025, from 127.16% on December 31, 2024[195] - The allowance for credit losses was 1.69% of total loans at September 30, 2025, unchanged from September 30, 2024[208] Capital and Dividends - The Bank's Tier 1 Leverage Ratio was 12.11% at September 30, 2025, compared to 12.35% at the same date in 2024[216] - The Company and the Bank meet all capital adequacy requirements and are expected to continue doing so for the foreseeable future[219] - The Holding Company has authorized a stock repurchase of up to $3.0 million, representing 2.18% of total shareholders' equity of $137.4 million[221] - A cash dividend of $0.12 per share was declared on September 23, 2025, totaling approximately $2.1 million transferred from retained earnings[223]