United Security Bancshares (UBFO): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of a regional player, and after spending years mapping out complex financial structures, I can distill United Security Bancshares (UBFO)'s core strategy for you right now. As of their late 2025 financials, this bank is fundamentally a high-touch community lender in Central California, driving value through personalized decision-making for small to medium-sized businesses and commercial real estate developers. Here's the quick math: they are supporting a $958.3 million loan portfolio with a sticky $1.08 billion core deposit base, aiming for that 4.35% Net Interest Margin through deep local relationships. To see exactly how their key resources and activities line up to support this model, check out the full Business Model Canvas laid out below.

United Security Bancshares (UBFO) - Canvas Business Model: Key Partnerships

You're looking at the essential external relationships United Security Bancshares (UBFO) relies on to operate its business model as of late 2025. These aren't just casual contacts; they are structural dependencies for compliance, operations, and risk management.

Federal Reserve and FDIC for regulatory compliance and liquidity

As a bank holding company, United Security Bancshares is registered with the Board of Governors of the Federal Reserve System (FRB) under the Bank Holding Company Act of 1956, as amended (BHCA). The bank itself is a California state-chartered bank. The operational necessity of FDIC Insurance is listed on their investor information pages, confirming this critical partnership for deposit safety and systemic stability. The FRB's control over the discount rate and reserve requirements directly influences the bank's lending and deposit levels.

Correspondent banks for check clearing and wire transfers

United Security Bank utilizes arrangements with correspondent banks to facilitate certain services, specifically mentioning trust services, which implies broader operational support for functions like check clearing and wire transfers, which are core services offered. These relationships ensure that transactions outside their 13 branch footprint-spanning Fresno, Madera, Kern, and Santa Clara counties-can be processed efficiently.

Core technology vendors for mobile and online banking platforms

The bank's service offering includes mobile banking and online banking agreements. While the specific vendor for United Security Bancshares is not public in the latest filings, the industry trend in 2025 shows community banks like UBFO (assets over $1 billion) increasingly relying on managed service vendors for IT infrastructure, cybersecurity, and operational support. These vendors prioritize API integrations with core banking systems to support the digital experience.

Local professionals (CPAs, attorneys) for business referrals

The business strategy of United Security Bancshares focuses on increasing market share in its local communities. This growth is supported by local professional networks, though specific referral volumes aren't disclosed. These relationships are key for sourcing high-quality commercial and industrial loan opportunities, which are a focus area for the bank.

Loan participation partners to manage credit risk exposure

United Security Bancshares actively engages in purchasing and selling loan participations with other financial institutions to manage credit risk exposure. The underwriting standards for these transactions are the same as for their non-participated loans. This partnership mechanism helps balance their loan book, which stood at $958.3 million as of the third quarter of 2025.

Here's a look at the scale of the loan portfolio that these partnerships interact with:

The bank's reliance on these external risk-sharing mechanisms is evident in their operational history. For instance, their investment in York Monterey Properties, Inc., which was subject to foreclosure, totaled $8.2 million at March 31, 2025.

The overall operational health, which underpins the ability to maintain these partnerships, shows a net income of $4.0 million for Q3 2025 and total deposits of $1.08 billion.

The key functions supported by these external parties include:

• Maintaining regulatory standing with the FRB and FDIC.
• Processing transactions via correspondent banks for services like trust arrangements.
• Ensuring digital service continuity through technology vendors.
• Sourcing commercial credit through local professionals.
• Mitigating portfolio concentration via loan participation partners.

The quarterly cash dividend declared in September 2025 was $0.12 per share, reflecting shareholder value generation supported by these operational structures.

United Security Bancshares (UBFO) - Canvas Business Model: Key Activities

You're looking at the core engine of United Security Bancshares (UBFO), the day-to-day work that keeps the lights on and the capital flowing. It's all about the money moving in and out, and the rules you have to follow while moving it.

Commercial and consumer loan origination and servicing

The bank's primary action here is putting capital to work by originating loans for businesses and individuals. This activity directly drives interest income. For the third quarter of 2025, United Security Bancshares reported that loan interest and fees totaled $14.3 million.

This lending operation is supported by the overall size of the book, which is a key metric for this activity. The bank is actively managing the origination and servicing across various loan types, including commercial real estate financing, construction loans, residential mortgages, and small business loans. You'll see the scale of this activity reflected in the total loan balance.

Deposit gathering and liability management

This is the flip side of lending; you need the funds to lend out. United Security Bancshares focuses on gathering deposits to fund its loan portfolio. As of Q3 2025, total deposits reached $1.08 billion. Managing the cost of these liabilities is crucial for profitability. The bank reported that the annualized average cost of deposits decreased to 1.12% for the quarter ending September 30, 2025.

The success in managing the cost of funds directly impacts the net interest margin (NIM), which for Q3 2025 stood at 4.35%. This margin is the spread between what the bank earns on assets and pays on liabilities.

Managing a loan portfolio of $958.3 million (Q3 2025)

The management of the asset base is a central activity. You need to know the current scale to understand the operational scope. As reported for the third quarter of 2025, United Security Bancshares managed total loans amounting to $958.3 million. This represented a 3.22% increase compared to the end of the prior year.

Here's a quick look at how the core income-generating assets and associated costs stack up for that quarter:

Regulatory compliance and risk management

Operating as a state-chartered community bank means adhering to strict federal and state banking regulations. A key activity is the continuous monitoring and management of credit risk. This is quantified by the provision set aside for potential losses. For Q3 2025, the provision for credit losses was $948,000, a decrease from $1.6 million in Q3 2024.

The bank segments its risk across its loan book. Key risk management activities involve the analysis of these segments:

• Commercial and industrial loans - Considered higher risk due to loan size and economic cycle effects.
• Government program loans - Historically shown vulnerability to economic cycles.
• Commercial real estate loans - Risk tied to business cycles and real estate price fluctuations.
• Home improvement and home equity loans - Higher risk due to junior lien position.
• Real estate construction and development loans - Higher risk profile due to construction and market value issues.

Local community engagement and relationship building

United Security Bancshares emphasizes its community bank heritage, which translates into relationship-focused activities. This is supported by a physical presence and local staffing. The bank operates 13 branches across Fresno, Madera, Kern, and Santa Clara counties.

The human element is also key to this activity, with the organization employing over 110 people to serve its local customer base. This localized structure supports the business strategy of increasing market share within its specific geographic communities. The bank declared a cash dividend of $0.12 per share on September 23, 2025, which is a direct action to return value to its local shareholder base. For you, the analyst, this focus on local relationships is the intangible resource that supports loan origination and deposit retention.

United Security Bancshares (UBFO) - Canvas Business Model: Key Resources

You're looking at the foundational assets United Security Bancshares (UBFO) relies on to execute its business strategy in Central California. Honestly, for a community bank, the tangible and intangible resources are what set the pace.

The physical footprint is quite specific. United Security Bank operates a network of exactly 13 full-service branches across key counties. These are concentrated in Fresno, Madera, Kern, and Santa Clara counties, which anchors their Central California presence. You can see the geographic spread of their operational centers here:

The balance sheet strength is a key resource. United Security Bancshares maintains a strong capital base, with total assets reported as being over $1 billion as of the latest reporting period. This capital supports their lending and operational activities.

The funding structure is heavily reliant on local relationships. As of the third quarter of 2025, total deposits stood at $1.08 billion. This deposit base is the lifeblood for funding their loan book.

Human capital is another critical element. The company relies on an experienced local management team, which is definitely a plus when dealing with regional credit markets. The total staff count is reported at 114 employees, all focused on delivering community banking services.

When you look at the lending side, the expertise is concentrated in specific asset classes. This proprietary underwriting skill is what allows them to manage risk effectively in their primary markets. Here's a quick look at the loan portfolio that this expertise is applied to:

• Commercial and industrial loans
• Commercial real estate loans
• Residential mortgages
• Real estate construction and development loans
• Agricultural loans
• Government program loans
• Installment and student loans

The total loan portfolio size as of Q3 2025 was $958.3 million. That's the asset base their underwriting expertise is managing. Finance: draft 13-week cash view by Friday.

United Security Bancshares (UBFO) - Canvas Business Model: Value Propositions

You're looking at the core differentiators United Security Bancshares is pushing as of late 2025. Their value is rooted in being a community bank that can still handle significant commercial volume.

Local, personalized decision-making for quick loan approvals

United Security Bancshares maintains a structure designed for speed, relying on local oversight rather than distant corporate centers.

• Operates 13 full-service branch offices across Fresno, Madera, Kern, and Santa Clara counties.
• Employs over 110 people to serve the local client base.

This local Board of Directors and experienced management team is key to their strategy of increasing market share in their local communities. It's about knowing the borrower, not just the balance sheet.

Expertise in commercial real estate and construction lending

The lending emphasis clearly leans toward real estate, which is where their specialized departments focus their efforts. Here's the loan mix as of the first quarter of 2025, showing the concentration in this area:

The Commercial Real Estate Construction and Commercial Lending departments are explicitly structured to support this focus. By the third quarter of 2025, total loans had grown to $958.3 million.

Full suite of commercial banking and cash management services

United Security Bancshares offers the necessary tools for businesses, supported by a balance sheet that reached total assets of $1,191,791 thousand at March 31, 2025, and total deposits of $1.08 billion as of September 30, 2025.

The services are delivered through dedicated departments:

• Commercial Real Estate Construction Lending.
• Commercial Lending.
• Consumer Lending.

Competitive deposit products for individuals and businesses

Attracting and retaining deposits is crucial, and their cost structure suggests they are managing this competitively. For the third quarter of 2025, the annualized average cost of deposits was 1.12%, down from 1.18% in Q3 2024.

The total deposit base stood at $1.08 billion at the end of Q3 2025. They offer various personal products, including NOW Accounts, Money Market Checking, and various Savings Accounts, alongside business solutions.

High-touch, community bank relationship model

This model is the foundation, supported by the local presence and the focus on relationship-based lending over pure volume metrics. The bank's strategy centers on increasing market share within its established local communities.

The firm reported a net interest margin of 4.35% in Q3 2025, indicating effective management of the spread between earning assets and funding costs, which supports the relationship model.

United Security Bancshares (UBFO) - Canvas Business Model: Customer Relationships

You're looking at how United Security Bancshares maintains its connection with its clients, which is heavily weighted toward personal, local service, especially for its commercial base. This approach is a direct counterpoint to the trend where smaller banks have seen a steady decline in trust ratings since 2023, meaning United Security Bancshares has to work hard to prove its stability to commercial clients.

Dedicated relationship managers for commercial clients is a core part of the value proposition, supported by the operation of dedicated Commercial Lending and Commercial Real Estate Construction departments. These specialized teams focus on the needs of local businesses, which is where much of the bank's growth strategy is centered, aiming to increase market share in its local communities.

The foundation of in-person service rests on the physical footprint. United Security Bank operates 13 full-service branch offices across its operating area, including locations in Fresno, Bakersfield, Campbell, and Taft. This network supports the teller and branch staff for personalized, in-person service, which is crucial for the high-trust relationships the bank seeks to build with local business owners. The scale of the relationships managed through this network is significant, evidenced by total deposits reaching $1.08 billion as of September 30, 2025.

To balance the high-touch service, United Security Bancshares also provides automated self-service via online and mobile banking, as indicated by the availability of these services in their customer resources. Still, the emphasis remains on the human element to foster high-trust, long-term relationships with local business owners, a necessity for a regional bank competing in a market where larger national banks are often perceived as 'safe.'

For direct support beyond the branch, the bank offers direct customer support via phone and email, with an Investor Contact listed as the SVP and Chief Financial Officer, Dave Kinross, providing a direct line for high-level inquiries. The bank's commitment to its relationship model is also reflected in its consistent shareholder return, having declared a regular quarterly cash dividend of $0.12 per share in September 2025.

Here's a quick look at the scale of the customer base and service points as of late 2025:

The structure of service delivery relies on this physical presence to drive commercial engagement, which is a key area for growth. You can see the focus on the lending side through the specialized departments:

• Commercial Real Estate Construction department operations.
• Dedicated Commercial Lending department.
• Consumer Lending department support.
• Focus on increasing market share in local communities.

Finance: draft 13-week cash view by Friday.

United Security Bancshares (UBFO) - Canvas Business Model: Channels

You're looking at how United Security Bancshares gets its value proposition-local, responsive commercial banking-into the hands of its customers. It's a mix of physical presence and digital tools, grounded in the Central Valley, California market.

The physical footprint is key to their community banking model. United Security Bank operates 13 full-service branch offices. These locations are spread across Fresno, Madera, Kern, and Santa Clara counties, serving communities like Fresno, Bakersfield, Campbell, Caruthers, Coalinga, Firebaugh, Fowler, Mendota, Oakhurst, San Joaquin, and Taft.

The delivery of specialized lending services is channeled through dedicated departments. These include the Commercial Lending and the Real Estate Construction departments, which are central to the business strategy of increasing market share in local communities.

Here's a look at the loan portfolio composition as of March 31, 2025, which reflects the output of these lending channels, with total gross loans standing at $920,653 thousand.

The Commercial Real Estate portion of the mortgage portfolio specifically totaled $417.9 million at March 31, 2025. This focus area is supported by internal lending limits, such as a limit of 115% of capital on the real estate construction and development portfolio.

For customer access and transaction processing, United Security Bancshares uses a multi-channel approach:

• Physical Access: 13 full-service branch offices.
• Automated Access: Network of 24-hr full service ATMs.
• Digital Access: Online banking portal and mobile banking application.
• Service Enhancement: A 2025 plan included introducing an all-new digital platform and providing clients weekday access to a live teller from 7am - 7pm at all locations plus online chat.

The direct sales force targets small- to medium-sized businesses, which aligns with the Bank's array of loan products designed for this segment. The total number of common shares outstanding as of April 30, 2025, was 17,475,927. The quarterly cash dividend declared on September 23, 2025, was $0.12 per share.

Finance: calculate the percentage change in Total Gross Loans from December 31, 2024 ($928,462 thousand) to March 31, 2025 ($920,653 thousand).

United Security Bancshares (UBFO) - Canvas Business Model: Customer Segments

You're structuring United Security Bancshares's customer base, which is clearly rooted in specific geographic markets, primarily the Central Valley of California, though some operations touch the Pacific Northwest. Honestly, the numbers tell you where the money is concentrated.

The total loan portfolio as of the third quarter of 2025 stood at $958.3 million, showing a 3.22% increase from the end of 2024, which gives you a sense of the scale of lending to these segments. Total deposits were $1.08 billion as of September 30, 2025, indicating a strong base of consumer and business funding sources.

Here's a look at the loan portfolio breakdown from March 31, 2025, which maps directly to your primary commercial customer segments. This is the quick math on where the assets are deployed:

Small to medium-sized businesses (SMBs) in the Central Valley are a core target, supported by the $60,619 thousand in Commercial and business loans reported at the start of 2025, plus the general commercial banking services offered. The bank's presence in areas like Fresno and Madera counties confirms this focus, even as the broader loan book grew to $958.3 million by Q3 2025.

For commercial real estate investors and developers, the numbers show significant exposure. The Real Estate Mortgage category totaled $662,050 thousand as of March 31, 2025. This breaks down further into the $417,940 thousand in Commercial real estate loans and the $105,875 thousand in Real estate construction and development loans. They also offer letters of credit and cash management services to these customers.

Agricultural businesses requiring specialized financing are an implied segment given the Central Valley's economic character and the bank's focus on commercial lending. While a specific dollar amount for Ag loans isn't itemized in the public segments, these businesses fall under the broader Commercial and business loans category. The bank's stated business strategy emphasizes lending to the business and professional community.

Local professionals and high-net-worth individuals are served through personal banking products and wealth management services. The bank offers:

• Basic checking and savings accounts.
• Money market accounts and certificates of deposit.
• Wealth management services.
• Consumer lending solutions.

Retail consumers seeking basic checking and savings accounts contribute to the $1.08 billion in total deposits as of September 30, 2025. The bank also provides residential mortgages, which is the largest loan segment at $244,089 thousand as of March 31, 2025, for individuals.

Finance: draft the loan portfolio breakdown for Q3 2025 by Friday.

United Security Bancshares (UBFO) - Canvas Business Model: Cost Structure

The cost structure for United Security Bancshares is heavily weighted toward funding costs and operating expenses necessary to maintain its branch network and digital capabilities. These costs are critical to managing the net interest margin and operational efficiency.

• Interest expense on deposits and borrowings for the third quarter of 2025 was reported at $3.2 million.
• Noninterest expense, which primarily covers personnel and physical footprint costs, totaled $7.4 million for the third quarter of 2025.
• Provision for credit losses recognized in the third quarter of 2025 amounted to $948,000.

To give you a clearer picture of the components driving the noninterest expense, here are some figures from the first quarter of 2025, which illustrate the scale of these operational outlays. Honestly, these figures show where the day-to-day running costs land.

The ongoing investment in technology and data processing costs for digital services is a necessary expense to keep pace. For example, in the first quarter of 2025, technology expense was $651 thousand, and data processing expense was $407 thousand. These are the necessary costs of staying relevant in banking today.

Furthermore, regulatory compliance and insurance costs are fixed overheads inherent to operating as a bank. The first quarter of 2025 showed Regulatory assessments at $173 thousand. You can see that personnel and occupancy are the largest drivers within the noninterest expense base, based on the Q1 data.

• Salaries and employee benefits (Q1 2025): $3,926 thousand.
• Occupancy expense (Q1 2025): $966 thousand.

United Security Bancshares (UBFO) - Canvas Business Model: Revenue Streams

You're looking at the core ways United Security Bancshares (UBFO) brings in money as of late 2025. For a community bank like United Security Bancshares, revenue is heavily weighted toward the spread between what it earns on its assets (loans, securities) and what it pays on its liabilities (deposits, borrowings). This is the Net Interest Income (NII) engine.

The latest figures from the third quarter of 2025 show a solid performance in their primary revenue driver. The Net Interest Margin (NIM), which is a key measure of profitability on interest-earning assets, stood at 4.35% for Q3 2025. That's an improvement from 4.20% in Q3 2024.

Here's a breakdown of the key components that make up the revenue picture for United Security Bancshares for the quarter ending September 30, 2025:

The Net Interest Income (NII) of $12.4 million is derived from the interest earned on the loan and investment portfolios, offset by the interest paid on deposits and borrowings. You can see the core lending activity is the biggest piece of the interest pie.

The revenue streams for United Security Bancshares are primarily structured around these areas:

• Net Interest Income (NII) from loan and investment portfolios: The primary driver, benefiting from the 4.35% NIM.
• Interest income from loans and fees: Reported at $14.3 million for the quarter.
• Noninterest income from service charges and fees: The reported figure for total noninterest income was $1.6 million.
• Investment income from securities portfolio: This is the portion of total interest income not derived from loans and fees. Based on the reported figures, this is approximately $1.3 million ($15.6 million total interest income minus $14.3 million loan interest/fees).

It's worth noting that the total interest income was $15.6 million, which includes the $14.3 million from loans and fees. The difference, which represents the Investment income from securities portfolio, is about $1.3 million for the period. Also, the annualized average cost of deposits actually went down to 1.12% from 1.18% in Q3 2024, which helped the NIM expansion.

Finance: draft 13-week cash view by Friday.