United Security Bancshares (UBFO) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $4.0 million ($0.23 per share), up 5.07% year-over-year and up from $2.2 million in Q2 2025.

• Net interest margin rose to 4.35% from 4.20% in Q3 2024.

• Total loans grew 3.22% since year-end 2024, reaching $958.3 million; loan growth of $30.0 million since year-end.

• Shareholders' equity increased by $7.0 million after dividends, totaling $137.4 million at quarter-end.

• Deposits increased 1.73% to $1.08 billion.

Financial highlights

• Net interest income before provision for credit losses was $12.4 million, up 5.14% year-over-year; after provision: $11.5 million.

• Noninterest income for Q3 2025: $1.6 million, down 20% year-over-year, mainly due to lower gains on TruPS fair value.

• Noninterest expense for Q3 2025: $7.4 million, up 4.09% year-over-year, driven by higher technology and salary costs.

• Provision for credit losses decreased to $948,000 from $1.6 million year-over-year.

• Efficiency ratio for Q3 2025 was 52.80%, up from 52.47% a year ago.

Outlook and guidance

• Management continues to focus on liquidity, credit risk, and balance sheet growth.

• The company expects continued pressure from economic uncertainty, interest rate changes, and local agricultural trends.

• Management expects to maintain adequate capital levels and continue dividend payments, but cautions that future dividends are not assured.