United Security Bancshares (UBFO): BCG Matrix [Dec-2025 Updated]

You're looking to see exactly where United Security Bancshares (UBFO) is putting its capital and where it's draining resources as of late 2025. We've mapped their business units using the BCG Matrix: the high-growth Core Commercial Real Estate Lending is a clear Star, fueled by a 3.22% loan expansion and a 1.29% Return on Average Assets, while the stable deposit base, boasting a 4.35% Net Interest Margin, acts as a reliable Cash Cow supporting that 4.79% dividend. On the flip side, the legacy student loan book is a definite Dog, dragging credit quality down with $2.8 million in Q1 charge-offs, and the fee-based services are Question Marks, needing serious investment after a 20.02% income drop.

Background of United Security Bancshares (UBFO)

You're looking at United Security Bancshares (UBFO) as of late 2025, so let's get straight to what this company is and where it stands based on the latest numbers we have from the third quarter.

United Security Bancshares is the holding company for United Security Bank, which first started operations way back in 1987. The bank's main headquarters is located in Fresno, California, which is where it anchors its primary service area. It's a regional player focused on providing commercial banking services to the business and professional community, as well as individuals across its footprint.

The operational reach of United Security Bank includes 13 full-service branch offices. These branches are spread across several California locations, including Fresno, Bakersfield, Campbell, Caruthers, Coalinga, Firebaugh, Fowler, Mendota, Oakhurst, San Joaquin, and Taft. On the lending side, United Security Bank specifically operates departments focused on Commercial Real Estate Construction, Commercial Lending, and Consumer Lending. Honestly, the primary way United Security Bancshares brings in money is through interest income generated from its loan portfolio and investment securities.

Looking at the performance through the third quarter of 2025, which ended on September 30, the company reported a net income of $4.0 million, translating to $0.23 per basic and diluted share. That's a solid result for the quarter. The balance sheet shows that total loans grew by 3.22% to reach $958.3 million, reflecting a $30.0 million growth in the loan book compared to the end of 2024. Total deposits stood at $1.08 billion as of that same date.

The efficiency metrics show some positive movement; the net interest margin (NIM) improved to 4.35% in Q3 2025, up from 4.20% in the prior year's third quarter. Furthermore, the annualized return on average assets (ROAA) was 1.29%, and the annualized return on average equity (ROAE) clocked in at 11.68%. To keep shareholders happy, the Board declared a regular quarterly cash dividend of $0.12 per share in September 2025. We should note that management has been dealing with charge-offs in the student loan portfolio, though the search results indicate the magnitude of these charge-offs has been decreasing, which is a good sign for credit quality management.

For a quick snapshot as of late 2025, the trailing twelve-month revenue was reported at $52.6M, and the market capitalization was approximately $160M based on a stock price of $9.16 in October 2025. That's the lay of the land for United Security Bancshares right now.

United Security Bancshares (UBFO) - BCG Matrix: Stars

You're looking at the engine room of United Security Bancshares (UBFO)'s current growth, which, in BCG terms, we classify as a Star. This quadrant represents business units with a high market share in a market that's still expanding rapidly. For United Security Bancshares, the overall loan portfolio expansion fits this description perfectly, demanding significant cash for continued promotion and placement to maintain that leadership position.

The data from the third quarter of 2025 clearly shows this momentum. The total loan portfolio grew by 3.22% from the prior period, reaching $958.3 million as of September 30, 2025. This growth, which represents a $30.0 million increase since the end of 2024, signals that the core lending activities, including the focus on Commercial Real Estate (CRE) in the Central Valley, are capturing significant new business in a market that hasn't saturated yet. Honestly, keeping this growth engine running requires substantial investment, which is why Stars often break even-the cash generated is immediately reinvested to fend off competitors.

Still, the efficiency with which United Security Bancshares is managing these assets is impressive, which is a key indicator of its market leadership. The annualized Return on Average Assets (ROAA) for Q3 2025 was a strong 1.29%, up from 1.24% in Q3 2024. This suggests that even while pouring resources into growth, the underlying asset quality and deployment are effective. If this high-growth phase slows down naturally, this unit is set up to transition into a Cash Cow, but for now, it's all about investment.

Here's a quick look at the key financial markers supporting the Star categorization as of Q3 2025:

• Total Loans: $958.3 million
• Loan Portfolio Growth (QoQ): 3.22%
• Annualized ROAA: 1.29%
• Net Interest Margin: 4.35%

To be fair, the strategic focus on increasing market share in local communities, which is what drives this Star status, inherently requires high investment in personnel, technology, and marketing to secure those new loans. This investment is the cash burn associated with being a market leader in a growing segment. The following table summarizes the core balance sheet metrics related to this high-growth asset base:

The continued success here hinges on maintaining that market share advantage until the growth rate of the underlying CRE market naturally decelerates. Finance: draft the projected investment required to sustain a 3.0% quarterly loan growth rate for Q4 2025 by next Tuesday.

United Security Bancshares (UBFO) - BCG Matrix: Cash Cows

You're looking at the core engine of United Security Bancshares (UBFO) here, the business units that are market leaders in mature segments. These are the operations that generate more cash than they consume, which is defintely what you want to see in a stable bank holding company. Cash Cows are the foundation; they fund the riskier Question Marks and keep the lights on, covering administrative costs and supporting shareholder returns.

For United Security Bancshares, these Cash Cows are rooted in traditional, high-market-share banking activities within their established Pacific Northwest footprint. They represent the steady, predictable income streams that allow management to focus on capital deployment elsewhere. We see this strength reflected in their deposit franchise and core lending focus.

Here are the key statistical and financial markers defining these Cash Cow segments as of late 2025:

• - Stable, low-cost core deposit base, which grew to $1.08 billion in Q3 2025.
• - High Net Interest Margin (NIM) of 4.35% in Q3 2025, up from 4.20% in Q3 2024.
• - Consistent, reliable income stream supporting the strong dividend yield of approximately 4.85% as of late 2025, based on the $0.48 annual dividend.
• - Traditional residential mortgages and established small business loans, providing steady interest income, with total loans reaching $958.3 million in Q3 2025.

To give you a clearer picture of the performance underpinning this Cash Cow status, look at these core metrics from the Q3 2025 results:

The business units focused on residential mortgages and small business lending are the bedrock here. They are mature markets where United Security Bancshares has achieved a high market share, allowing them to maintain that strong 4.35% NIM. You want to invest just enough here-perhaps in infrastructure to improve efficiency-to maintain this productivity and keep milking those gains passively. The $0.12 quarterly dividend, paid consistently, is the direct result of this cash generation.

United Security Bancshares (UBFO) - BCG Matrix: Dogs

You're looking at the parts of United Security Bancshares (UBFO) that aren't pulling their weight, the classic Dogs in the Boston Consulting Group Matrix. These are the business units stuck in low-growth markets with a low market share. Honestly, they're often cash traps, tying up capital and management focus for minimal return.

For United Security Bancshares, the primary candidate here is definitely the legacy student loan portfolio. This segment is consistently cited as a drag on overall credit quality, requiring constant attention that could be better spent elsewhere. These units should generally be avoided or minimized because expensive turn-around plans rarely work out in this quadrant.

Here's a look at the financial impact tied to managing these non-core, high-risk assets:

• - The legacy student loan portfolio, which is defintely a drag on credit quality.
• - Ongoing charge-offs in the student loan segment, driving a provision for credit losses of $948,000 in Q3 2025.
• - High net loan charge-offs, which totaled $2.8 million in Q1 2025, primarily from student loans.
• - Non-core, high-risk assets that are being run down, consuming capital and management attention.

The charge-offs from this portfolio directly hit the bottom line. For instance, in Q1 2025, the provision for credit losses spiked to $2.30 million, which, along with the $2.80 million in net charge-offs, pressured earnings significantly, resulting in a net income of only $2.68 million for that quarter. By Q3 2025, while the provision moderated to $948,000 and net income improved to $4.0 million, the underlying issue remains a drain.

We can map the severity of the credit cost impact across the first three quarters of 2025:

The effort to run down these problem assets is visible in the nonperforming asset (NPA) figures. At the end of Q1 2025, NPAs stood at 1.19% of assets, or $14.20 million. This figure benefited from a $6.5 million decrease in nonaccrual loans, even as $3.3 million was transferred to Other Real Estate Owned (OREO) during that quarter, which is a clear sign of moving assets toward disposition.

You need to see these units as prime candidates for divestiture. They are the assets where capital is stuck, offering little growth or cash flow in return. The focus here must be on orderly reduction, not investment.

Finance: draft a memo detailing the expected run-off timeline for the remaining student loan book by next Wednesday.

United Security Bancshares (UBFO) - BCG Matrix: Question Marks

You're looking at the business units within United Security Bancshares that are currently consuming more cash than they generate, yet operate in markets that are expanding. These are your Question Marks, the areas where the future is uncertain but the potential upside is significant if you can capture more of that growing market.

For United Security Bancshares, the primary candidates for this quadrant are its noninterest income services, specifically areas like wealth management and treasury services. These segments are generally considered high-growth areas for regional banks, but UBFO's recent performance suggests it's struggling to gain traction, fitting the low market share profile.

The hard numbers from the third quarter of 2025 clearly illustrate this drag. The segment is clearly not performing like a Star right now. Specifically, noninterest income decreased by 20.02% to only $1.6 million in Q3 2025. This decline in revenue from fee-based services, despite the underlying market's expansion, is a classic sign of a Question Mark that is losing ground.

To put the market context around that $1.6 million figure, consider the broader environment. The global Wealth Management market, for instance, was projected to grow from $1975.32 billion in 2024 to $2105.59 billion in 2025, representing a compound annual growth rate (CAGR) of 6.6%. Furthermore, S&P Global Ratings noted that fee income for regional banks should benefit from continued growth in wealth management and treasury management activity. This points directly to the core issue: United Security Bancshares has a low relative market share in fee-based services, which are high-growth areas for regional banks.

Here's a quick look at the financial reality of this segment as of the end of Q3 2025:

The path forward for these units is binary, as is typical for Question Marks. They are currently consuming cash to maintain operations, but they have the potential to become Stars if they can rapidly capture market share in these growing fee-based niches. This means they require significant investment in technology and personnel to compete and become a Star. You need to decide now: do you commit the capital to aggressively fight for market share, or do you cut losses and divest the unit before it devolves into a Dog?