Mission Statement, Vision, & Core Values of United Security Bancshares (UBFO)

The Mission Statement, Vision, and Core Values of United Security Bancshares (UBFO) are not just corporate boilerplate; they are the strategic framework that underpins a balance sheet showing both strength and stress.

You see the financial reality: Total Assets stood at a solid $1.2 billion as of June 30, 2025, but first-quarter net income declined 35.54% to $2.7 million compared to the prior year, so what really anchors this California-based community bank?

When the net interest margin improves to 4.58% but total deposits fell 2.97% to $1.03 billion, you have to ask: are the bank's core values-like superior customer service and community support-defintely translating into the sustainable shareholder value they promise?

Let's map the stated mission to the near-term financial risks and opportunities to see where United Security Bancshares is focusing its capital and its culture.

United Security Bancshares (UBFO) Overview

You need a clear picture of what United Security Bancshares (UBFO) is doing right now, not just what they did last year. The quick takeaway is this: they are a Fresno, California-based community bank holding company that is successfully managing interest expense, which drove a 5.07% increase in net income for the third quarter of 2025, even as interest income slightly dipped. They are growing loans and deposits in their core California markets.

United Security Bancshares is the holding company for United Security Bank, which was founded back in 1987. They are a community bank focused on the Central Valley region of California, operating 13 full-service branch offices across key counties like Fresno, Madera, and Kern. This local focus is defintely their strength.

Their product mix is standard for a regional bank but tailored to local businesses. They offer deposit accounts-checking, savings, money market-plus a full suite of lending products. Their primary source of revenue is interest income from loans, and as of September 30, 2025, commercial real estate loans made up the largest segment of their portfolio at a substantial 44.56%. They also maintain a niche in student lending, holding about $28.8 million in that portfolio as of the same date. If you want to dive deeper into their strategy, you can find more detail here: United Security Bancshares (UBFO): History, Ownership, Mission, How It Works & Makes Money.

2025 Financial Performance: The Near-Term View

Looking at the latest data, the company's financial health through the first nine months of the 2025 fiscal year shows a mixed but strategically sound picture. For the nine months ended September 30, 2025, United Security Bancshares reported a Total Interest Income of $45.913 million. The real win, though, was in expense management.

The reduction in interest expense allowed them to report a Net Interest Income of $36.576 million for the first nine months of 2025. Here's the quick math: while total interest income saw only a slight increase, the significant drop in what they pay on deposits and borrowings boosted their core profitability metric. Still, net income for the nine-month period was $8.874 million, which was a decrease from the prior year, largely impacted by a higher provision for credit losses, which is a key risk to monitor in the current environment.

Focusing on the third quarter of 2025 alone, their net income rose to $4.0 million, a solid 5.07% jump compared to the same period in 2024. This translates to $0.23 per basic and diluted share. They are growing their balance sheet, too:

• Total Loans increased by 3.22% to $958.3 million.
• Total Deposits grew by 1.73% to $1.08 billion.
• Total Assets reached $1.24 billion.

What this estimate hides is the continued pressure from credit quality, specifically in the student loan portfolio, but the magnitude of those charge-offs has been decreasing, which is a positive trend.

A Leading Community Bank in Central California

United Security Bancshares is a major player in its specific market, leveraging its status as a community bank to compete effectively against larger, national institutions. With total assets now over $1 billion, they have the scale to serve the commercial and professional community across the San Joaquin Valley and surrounding areas.

In the broader finance sector, they hold a respectable position. According to a recent MarketBeat analysis, United Security Bancshares scored higher than 52% of companies evaluated by MarketBeat, ranking 659th out of 936 stocks in the finance sector. They are not a BlackRock-sized behemoth, but they are a well-capitalized, strategically focused regional leader. Their success comes from that local knowledge and a clear focus on commercial real estate and business lending, which makes them an essential financial partner for regional economic growth. To be fair, that regional focus is also their limit, but they are maximizing their opportunity there.

United Security Bancshares (UBFO) Mission Statement

You're looking past the stock ticker and trying to understand the engine that drives United Security Bancshares, and that's smart. A company's mission statement isn't just a plaque on the wall; it's the strategic roadmap that dictates every lending decision and customer interaction. For UBFO, the mission is clear: to Protect and Enhance Shareholder Value. This over-arching goal is achieved by focusing on three critical, interconnected pillars that guide their operations across the San Joaquin Valley and beyond.

This mission is especially critical as the company navigates the current financial climate. For example, in the third quarter of 2025, UBFO reported a net income of $4.0 million, which, while a 5.07% increase from the previous year, shows the need for a disciplined, mission-led approach to sustain growth. The mission acts as a filter for all strategic moves, ensuring they are not just chasing revenue but building a defintely sustainable business.

Pillar 1: Delivering a Truly Superior Customer Service Experience

The first and most visible component of the mission is the commitment to a superior customer service experience. This is how a community bank with over $1 billion in assets competes against the national giants. It's about being a trusted partner, not just a transaction processor.

For UBFO, this means providing relevant products and services that meet the specific needs of their regional markets-primarily the business community and individuals in California's central and southern San Joaquin Valley. A key indicator of their product relevance is the composition of their loan portfolio. As of September 30, 2025, commercial real estate loans remained the largest segment, comprising 44.56% of their total loan portfolio. This focus shows they are actively financing the commercial growth of their local communities, which is a direct translation of their customer-centric mission.

• Offer relevant products to local businesses.
• Act as a trusted financial partner, not just a lender.
• Maintain regional focus for deeper market knowledge.

The superior experience is the foundation for deposit growth. In Q3 2025, total deposits increased by 1.73% to $1.08 billion, a clear sign that customers trust the bank with their capital. Want to dig deeper into the numbers? You can check out Breaking Down United Security Bancshares (UBFO) Financial Health: Key Insights for Investors.

Pillar 2: Attracting, Developing, and Retaining Superior Team Members

You can't deliver superior service without superior people. That's the simple truth. The second core component focuses on attracting, developing, and retaining high-quality team members. This isn't a soft HR goal; it's a hard-dollar investment in operational efficiency and risk management.

In the first quarter of 2025, United Security Bancshares saw noninterest expense increase by 12.85%, driven in part by higher salaries and data processing costs. Here's the quick math: that increased expense is the cost of retaining top talent and investing in the technology (data processing) they need to serve customers efficiently. This is a necessary trade-off to keep the service quality high and manage the risk inherent in a loan portfolio that includes a niche segment like the $28.8 million in student loans as of Q3 2025. Better-trained staff means fewer errors and better credit decisions.

A strong team is your best defense against credit losses. The provision for credit losses decreased to $948,000 in Q3 2025, down from a higher figure earlier in the year, which suggests the team's focus on managing credit quality is paying off.

Pillar 3: Enhancing Shareholder Value and Supporting Communities

The third pillar ties the mission back to its ultimate financial mandate: enhancing shareholder value while maintaining regulatory safety and soundness and supporting the communities they serve. This is the balancing act of any community bank-you must be profitable to be a stable community partner.

Shareholder value is measured by performance metrics like Return on Average Assets (ROAA) and Return on Average Equity (ROAE). For Q3 2025, the annualized ROAA improved to 1.29% (up from 1.24% in Q3 2024), and the annualized ROAE rose to 11.68% (up from 11.63% in Q3 2024). These are strong, positive trends that show the bank is using its $1.19 billion in assets effectively to generate returns.

The community support aspect is more than just charity; it's a business strategy. By concentrating their lending in the San Joaquin Valley and surrounding areas, they leverage local market knowledge to drive loan growth. Total loans increased by 3.22% to $958.3 million in Q3 2025, demonstrating that their local focus directly translates into business expansion and, ultimately, enhanced value for shareholders. They are growing by serving their neighbors.

United Security Bancshares (UBFO) Vision Statement

You're looking past the daily stock moves to understand what actually drives United Security Bancshares (UBFO), and that's smart. The vision for a community bank like this isn't some abstract goal; it's a clear, actionable commitment to four key stakeholders: shareholders, customers, employees, and the local community. For UBFO, the vision is to be the premier community bank in its operating areas-primarily California's Central Valley-by executing a core strategy of increasing market share and expanding into new markets where the business opportunities are sound.

This vision is backed by a business model focused on generating shareholder value through a strong capital base, which is critical for a bank with total assets of over $1 billion. You can see this focus reflected in their Q3 2025 results. The company reported a net income of $4.0 million, a solid 5.07% increase over the same quarter in 2024. That's a defintely positive trend.

Here's the quick math on how their mission components map to their recent financial performance and strategic direction.

Protect and Enhance Shareholder Value

The mission explicitly starts with the shareholder, which is the ultimate fiduciary duty for any publicly traded company. For UBFO, generating shareholder value means delivering consistent returns and capital strength. Their annualized Return on Average Equity (ROAE), a key measure of how well they use investor funds, rose to 11.68% in Q3 2025, up from 11.63% the year before. This is what I look for: a steady, upward trend in core profitability metrics.

The company's capital base remains strong, which is essential for supporting their growth model of expansion within and beyond their current market area. They also continue to reward investors with cash, having declared a quarterly cash dividend of $0.12 per share in September 2025.

• ROAE hit 11.68% in Q3 2025.
• Net Income increased by 5.07% to $4.0 million.
• Shareholders' equity improved by $7.0 million after dividends.

Providing Superior Customer Service

In banking, superior customer service translates directly into customer retention and growth in core deposits. UBFO's focus on being a customer-oriented financial institution is paying off in their balance sheet. Total deposits grew by 1.73% to $1.08 billion in the nine months ending September 30, 2025. Plus, their total loans increased by 3.22% to $958.3 million, showing they are actively serving the lending needs of their commercial and individual clients.

Their Net Interest Margin (NIM)-the profit engine of a bank-improved to 4.35% in Q3 2025, up from 4.20% in Q3 2024. That's a sign of good interest rate management combined with a sticky, low-cost deposit base, which is a direct result of strong customer relationships. Honestly, a NIM above 4% in the current rate environment is a solid performance indicator.

Attracting and Supporting High Quality Team Members

A community bank's success hinges on its people; they are the face of the customer experience (CX). The mission is clear: attract, develop, and retain superior team members. While the specific cost of this investment is captured within noninterest expense, which increased by 4.09% to $7.4 million in Q3 2025, you have to see this as a necessary investment, not just a cost. High-quality staff are essential for maintaining the superior customer service that drives that $1.08 billion in deposits. The bank operates 13 full-service branches across key California counties, and those local teams are the ones driving the market share growth.

Supporting and Celebrating the Communities We Serve

United Security Bancshares operates 13 full-service branch offices primarily in Fresno, Madera, Kern, and Santa Clara counties in California. This deep local presence is the definition of a community bank. Their strategy isn't about remote, impersonal transactions; it's about increasing market share in those local communities. The growth in real estate construction and development loans, which saw an increase of $31.4 million in the first nine months of 2025, is a concrete example of this mission in action-they are literally funding the growth of their local communities. This local focus is what differentiates them from the money center banks. You can learn more about their background and operations here: United Security Bancshares (UBFO): History, Ownership, Mission, How It Works & Makes Money.

Abiding by the Highest Standards of Regulatory Safety and Soundness

Safety and soundness (the financial term for stability and risk management) is the bedrock of banking. For UBFO, this means managing credit risk effectively. The good news is that non-performing assets-loans that aren't generating income-decreased to $14.1 million as of September 30, 2025. Even better, the ratio of non-performing assets to total assets improved significantly to 1.14%, down from 1.42% at the end of 2024. That's a clear reduction in risk, which tells me management is focused on credit quality, even while pushing for loan growth. They remain well-capitalized, which is the simple, non-jargon way of saying they have plenty of cushion to absorb unexpected losses.

United Security Bancshares (UBFO) Core Values

You're looking for a clear map of what drives United Security Bancshares (UBFO) beyond the balance sheet, and honestly, the mission statement is the best place to start. It's not corporate fluff; it's the operating manual. The core values, which are embedded in their mission to Protect and Enhance Shareholder Value, are all about balancing profit with people and compliance. It's a classic community bank model, but with a focus on delivering quantifiable results.

Here's the quick math on their execution: The company reported a Q3 2025 net income of $4.0 million, a solid 5.07% increase from the same quarter in 2024. That growth doesn't happen by accident; it's a direct result of these values in action.

Protect and Enhance Shareholder Value

This is the ultimate accountability metric for any publicly traded company, and for United Security Bancshares, it's the top-line mandate. Enhancing value means more than just growing the loan book; it means efficient capital management and consistent returns.

The company's financial performance in the 2025 fiscal year demonstrates this commitment clearly. The annualized return on average equity (ROAE) stood at 11.68% in the third quarter of 2025, which is a strong indicator of management's effectiveness in deploying shareholder capital. Plus, they've been consistent with investor payouts, declaring a quarterly cash dividend of $0.12 per share throughout 2025.

A smart move to reduce long-term interest expense was the partial redemption of $3.0 million on their junior subordinated debentures in July 2025, which immediately generated a gain of $241,000. That's a clear action that directly enhances shareholder equity. If you want a deeper dive into who is buying into this strategy, you should check out Exploring United Security Bancshares (UBFO) Investor Profile: Who's Buying and Why?

Superior Customer Service

In the regional banking space, superior customer service translates to accessibility and smart technology that doesn't lose the personal touch. For United Security Bancshares, this value is realized through a blend of physical presence and digital tools.

The company operates 13 full-service branch offices across key California regions, including Fresno, Bakersfield, and Campbell, ensuring local decision-making remains central to the customer experience.

To support a diverse customer base, the bank focuses on foundational services that simplify banking:

• Offer Mobile Banking and Online Banking for 24/7 access.
• Provide a dedicated Live Chat feature for real-time support questions.
• Maintain an Education Center to promote financial literacy.

The goal is to deliver a community bank feel with the digital convenience of a larger institution. It's about being there for your customer, whether they are in a branch or on their phone.

Attracting and Supporting High-Quality Team Members

You can't deliver superior service without a great team, so attracting and retaining talent is a core value. United Security Bancshares uses a comprehensive employee benefits program to show their commitment.

The bank provides a full suite of benefits to support their employees' financial and personal well-being, which is crucial for a regional bank competing for talent.

• Comprehensive health coverage: Medical, Dental, and Vision Insurance.
• Financial security plans: Disability Insurance and Life Insurance.
• Tax-advantaged savings: Section 125 Plans and Health Savings Accounts.

Furthermore, the bank encourages employee ownership through a dividend reinvestment plan, which saw senior executives acquiring shares in August and October of 2025. This aligns employee and shareholder interests, which is defintely a smart long-term strategy.

Supporting and Celebrating the Communities We Serve

As a community bank, the Community Reinvestment Act (CRA) isn't just a regulation; it's a business model. United Security Bancshares demonstrates its commitment by focusing its services and lending within its local assessment areas in the San Joaquin Valley.

The company's commitment is formally documented in its 2025 CRA Public File, which outlines its efforts to meet the credit needs of all segments of its local communities, including low- and moderate-income areas.

The bank's physical footprint of 13 branches is a tangible investment in these communities, ensuring local businesses and residents have access to capital and in-person financial expertise. This local focus is the engine for their loan growth, which reached $958.3 million in total loans by the end of Q3 2025. They grow when their communities grow.

Abiding by the Highest Standards of Regulatory Safety and Soundness

In banking, integrity is non-negotiable. This value ensures the bank operates securely and responsibly, protecting both customer deposits and shareholder capital. It's about managing risk, not avoiding it.

The bank remains well-capitalized, a critical measure of safety and soundness, and management has expressed optimism about maintaining adequate capital levels going forward. A key indicator of their credit quality management is the provision for credit losses (PCL), which decreased significantly to $948,000 in Q3 2025, down from $1.6 million in the same period a year prior. That's a strong signal of effective risk mitigation.

They operate strictly within the bounds of federal and state regulations, which is a constant, non-stop effort in the financial services industry. The bank's consistent financial reporting and adherence to compliance frameworks-like the Community Reinvestment Act (CRA) and FDIC regulations-underscore this commitment to a sound, secure operation.