United Security Bancshares (UBFO) Q4 2025 earnings summary

Executive summary

• Net income for 2025 was $12.3 million, down 16.88% year-over-year; EPS was $0.70 versus $0.85 in 2024.

• Fourth quarter net income rose 36.83% year-over-year to $3.4 million, with EPS of $0.19.

• Announced a definitive all-stock merger agreement with Community West Bancshares, expected to close in 2026.

Financial highlights

• Net interest margin for Q4 2025 increased to 4.36% from 4.22% a year ago; full-year NIM was 4.41% versus 4.26% in 2024.

• Net interest income for 2025 was $48.8 million, up 4.10% year-over-year.

• Noninterest income for Q4 surged to $1.3 million, up from $120,000, mainly due to gains on TruPS fair value and partial redemptions.

• Noninterest expense for Q4 rose 18.55% year-over-year to $8.8 million, driven by merger costs and higher salaries.

• Provision for credit losses for 2025 was $5.6 million, up from $3.0 million in 2024.

Outlook and guidance

• Entering 2026 with a robust loan pipeline and a $69.4 million increase in unfunded commitments compared to year-end 2024.

• Merger with Community West Bancshares is on track for 2026, expected to enhance scale and value.