Credit losses in the loan portfolio
Community and commercial lending exposes the bank to borrower stress, collateral declines, and concentration risk.
- Scope
- Commercial real estate and construction loans
- Materiality
- high
United Security Bancshares
United Security Bancshares is a California-based bank holding company whose principal subsidiary, United Security Bank, provides commercial banking services through a branch network in the Central Valley and nearby California markets. The company’s business centers on deposit gathering, commercial and real estate lending, and related treasury and cash-management services for local businesses and individuals.
416,0 %
+1,2 %
| % | |
|---|---|
| Commercial lending | 45% Loans to businesses for working capital, expansion, equipment, and operating needs. |
| Real estate lending | 30% Commercial real estate, construction, and other property-secured lending. |
| Deposit services | 15% Core deposit accounts that fund the balance sheet and support customer relationships. |
| Fee and service income | 10% Cash management, account service charges, and related banking fees. |
The bank serves small and middle-market businesses, local property owners, and individual customers in its California...
- Small and middle-market businessesprimary
They borrow for working capital, equipment, and growth and keep operating deposits with the bank.
- Commercial real estate borrowersprimary
They use property-secured loans for acquisition, refinancing, and income-producing assets.
- Construction and development borrowerssecondary
They finance land development and construction projects, often with shorter-duration credit.
- Individuals and householdssecondary
They use checking, savings, and other deposit products through the branch network.
United Security Bancshares operates primarily in California, with branches in Fresno, Madera, Kern, and Santa Clara...
- •Headquartered in Fresno, California
- •Branches in Fresno, Madera, Kern, and Santa Clara counties
- •Central Valley concentration ties results to local business conditions
- •California real estate and agriculture exposure shapes credit demand
- •Interactive teller machines extend service within the branch footprint
The bank’s strategy is to deepen relationships with core customers, attract and retain deposits, and grow loans in a...
01
Retain and grow core depositsshort-term
Stable funding supports lending capacity and reduces reliance on wholesale sources.
02
Disciplined loan growthmedium-term
Loan growth drives earnings but must be balanced against concentration and credit risk.
03
Relationship-based local bankinglong-term
Local decision-making and service help defend share against larger banks and non-bank competitors.
Key risks include credit deterioration in the loan portfolio, deposit outflows or higher funding costs, and...
Liquidity and deposit retention
Bank funding depends on attracting and keeping core deposits in a competitive market.
- Scope
- Deposit base and short-term funding
- Materiality
- high
Interest-rate sensitivity
Changes in rates affect loan yields, deposit costs, and asset/liability matching.
- Scope
- Net interest margin and balance-sheet mix
- Materiality
- high
Regional economic concentration
The bank is tied to California, especially the Central Valley, where agriculture and construction matter.
- Scope
- Local economic cycles and trade impacts
- Materiality
- high
Cybersecurity and operational risk
Digital banking and third-party systems can be disrupted by breaches, fraud, or outages.
- Scope
- IT systems, vendors, and customer data
- Materiality
- medium
Goodwill impairment
Recorded goodwill may need to be written down if business value assumptions weaken.
- Scope
- Acquired intangible assets
- Materiality
- medium
Allowance for credit losses
Affects provision expense, earnings, and capital
Nonaccrual and interest income recognition
Affects net interest income and loan yield presentation
Goodwill impairment
Can create a non-cash charge to earnings
Fair value measurements
Affects other comprehensive income and balance-sheet values
Income tax estimates
Affects reported net income and tax expense
: 29.4.2026