United Security Bancshares(US:UBFO)2026-01-22 21:15Financial Performance - For the year ended December 31, 2025, the company reported net income of $12.3 million, a decrease of 16.88% compared to $14.8 million for the year ended December 31, 2024[13]. - Net income for the fourth quarter of 2025 increased 36.83% to $3.4 million, compared to $2.5 million for the fourth quarter of 2024[4]. - Net income for the twelve months ended December 31, 2025, was $12,288 thousand, down from $14,783 thousand in 2024, a decrease of 16.9%[36]. - Basic net income per common share decreased to $0.70 in 2025 from $0.85 in 2024, a decline of 17.6%[36]. Interest Income and Margin - The net interest margin increased to 4.36% for the quarter ended December 31, 2025, compared to 4.22% for the same quarter in 2024[4]. - Net interest income for the twelve months ended December 31, 2025, was $48,771 thousand, compared to $46,850 thousand for the same period in 2024, reflecting a growth of 4.1%[36]. - Total interest income for Q4 2025 was $14,899,000, a decrease from $15,626,000 in Q3 2025[42]. - Net interest income after provision for credit losses for Q4 2025 was $11,727,000, compared to $11,471,000 in Q3 2025[42]. Noninterest Income and Expense - Noninterest income for the quarter ended December 31, 2025, totaled $1.3 million, an increase of 1020.83% from $120,000 in the same quarter of 2024[8]. - Noninterest income for the year ended December 31, 2025, totaled $5.1 million, an increase of $373,000 from $4.7 million in 2024, primarily due to a gain of $391,000 on the fair value of TruPS[16]. - Noninterest expense increased 18.55% to $8.8 million for the quarter ended December 31, 2025, compared to $7.4 million for the same quarter in 2024[9]. - Noninterest expense for the year ended December 31, 2025, totaled $31.6 million, reflecting a $3.3 million increase over $28.3 million in 2024, driven by increases in salaries, employee benefits, and merger expenses[17]. - Total noninterest expense increased to $31,588 thousand in 2025 from $28,280 thousand in 2024, representing an increase of 8.1%[36]. Asset and Deposit Growth - Total assets increased by $36.6 million, or 3.02%, from December 31, 2024, to December 31, 2025, with total cash and cash equivalents increasing by $64.7 million[20]. - Total deposits increased 2.95% to $1.09 billion compared to $1.06 billion at December 31, 2024[4]. - Total deposits increased by $31.2 million, or 2.95%, to $1.09 billion during the year ended December 31, 2025, driven by a $61.7 million increase in noninterest-bearing deposits[21]. - Total deposits rose to $1,088,780 thousand in 2025, up from $1,057,622 thousand in 2024, marking an increase of 2.9%[35]. - Total deposits reached $1,088,780,000 as of December 31, 2025, up from $1,075,900,000 at the end of Q3 2025[41]. Credit Losses and Nonperforming Assets - The company recorded a provision for credit losses of $468,000 for the quarter ended December 31, 2025, down from $1.2 million for the same quarter in 2024[4]. - The Company recorded a provision for credit losses of $5.6 million for the year ended December 31, 2025, compared to $3.0 million in 2024, primarily due to deterioration in the student loan portfolio[24]. - Provision for credit losses increased to $5,574 thousand for the twelve months ended December 31, 2025, compared to $2,963 thousand in 2024, an increase of 88.2%[36]. - Non-performing assets decreased to $13.9 million, or 1.12% of total assets, down from 1.42% in 2024, attributed to a decrease in nonaccrual loans[26]. - Total nonperforming assets decreased to $13,907,000 as of December 31, 2025, from $17,201,000 a year prior[43]. - Nonperforming loans to total gross loans ratio improved to 0.63% as of December 31, 2025, down from 1.36% a year earlier[43]. - The allowance for credit losses to nonperforming loans ratio increased to 258.68% as of December 31, 2025, from 127.16% a year earlier[43]. Efficiency and Ratios - The efficiency ratio for the quarter ended December 31, 2025, increased to 65.09%, compared to 60.79% for the same quarter in 2024[10]. - The efficiency ratio for the year ended December 31, 2025, increased to 58.76%, compared to 54.82% in 2024, indicating that noninterest expenses grew faster than noninterest income and net interest income[18]. - The efficiency ratio for Q4 2025 was 65.09%, compared to 60.79% in Q4 2024[44]. - Return on average assets for Q4 2025 was 1.12%, an increase from 0.81% in Q4 2024[44]. Shareholder Information - Shareholders' equity at December 31, 2025, totaled $139.7 million, an increase of $9.3 million from $130.4 million in 2024, attributed to $12.3 million in net income[22]. - The Company declared a cash dividend of $0.12 per share on December 16, 2025, to be paid on January 13, 2026[23]. - The company reported a total shareholders' equity of $139,683 thousand in 2025, up from $130,362 thousand in 2024, an increase of 7.5%[35]. - Book value per share increased to $7.94 as of December 31, 2025, compared to $7.51 a year earlier[44]. Merger Information - The company’s pending merger with Community West Bancshares is on track to close in 2026, which is expected to enhance value for customers, employees, and shareholders[3].