# United Security Bancshares

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/fi/companies/United Security Bancshares).

## Overview

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.

## Products & services

• Commercial and industrial lending
• Real estate and construction loans
• Deposit accounts and treasury services
• Branch banking and interactive teller machines (ITMs)
• Cash management for business customers

- **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.

- Commercial and industrial lending
- Real estate and construction loans
- Deposit accounts and treasury services
- Branch banking and interactive teller machines (ITMs)
- Cash management for business customers

## Customers

The bank serves small and middle-market businesses, local property owners, and individual customers in its California footprint. Its core relationships are with long-term deposit and lending customers that need relationship banking, local credit decisions, and branch-based service.

- **Small and middle-market businesses** (primary) — They borrow for working capital, equipment, and growth and keep operating deposits with the bank.
- **Commercial real estate borrowers** (primary) — They use property-secured loans for acquisition, refinancing, and income-producing assets.
- **Construction and development borrowers** (secondary) — They finance land development and construction projects, often with shorter-duration credit.
- **Individuals and households** (secondary) — They use checking, savings, and other deposit products through the branch network.

- Small and middle-market businesses needing operating and expansion credit
- Commercial real estate borrowers financing property and development projects
- Construction borrowers requiring short-duration project funding
- Local households and individuals using deposit and branch services
- Core deposit customers who value relationship banking and local access

## Geography

United Security Bancshares operates primarily in California, with branches in Fresno, Madera, Kern, and Santa Clara counties. Its business is concentrated in the Central Valley and nearby markets, making local economic conditions, agriculture, construction, and regional real estate trends especially important to loan demand and credit quality.

- **California** (100%) — Operations and lending are concentrated in California, especially the Central Valley.

- 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

## Strategy

The bank’s strategy is to deepen relationships with core customers, attract and retain deposits, and grow loans in a disciplined way. It also emphasizes balance-sheet management, liquidity, and credit discipline to support a community banking model in a concentrated geographic market.

- **Retain and grow core deposits** (short-term) — Stable funding supports lending capacity and reduces reliance on wholesale sources.
- **Disciplined loan growth** (medium-term) — Loan growth drives earnings but must be balanced against concentration and credit risk.
- **Relationship-based local banking** (long-term) — Local decision-making and service help defend share against larger banks and non-bank competitors.

- Deepen long-term customer relationships
- Grow deposits and retain low-cost core funding
- Expand lending while managing concentration risk
- Maintain liquidity and balance-sheet flexibility
- Use local branch presence and ITMs to support service

## Risks

Key risks include credit deterioration in the loan portfolio, deposit outflows or higher funding costs, and concentration in a limited California footprint. The bank is also exposed to interest-rate sensitivity, regulatory capital requirements, cybersecurity and operational disruptions, and goodwill impairment risk tied to acquired assets or reporting assumptions.

- **Credit losses in the loan portfolio** [high] — Community and commercial lending exposes the bank to borrower stress, collateral declines, and concentration risk.
- **Liquidity and deposit retention** [high] — Bank funding depends on attracting and keeping core deposits in a competitive market.
- **Interest-rate sensitivity** [medium] — Changes in rates affect loan yields, deposit costs, and asset/liability matching.
- **Regional economic concentration** [medium] — The bank is tied to California, especially the Central Valley, where agriculture and construction matter.
- **Cybersecurity and operational risk** [medium] — Digital banking and third-party systems can be disrupted by breaches, fraud, or outages.
- **Goodwill impairment** [medium] — Recorded goodwill may need to be written down if business value assumptions weaken.

- Loan losses can rise if local borrowers weaken or collateral values fall
- Deposit competition can pressure funding costs and liquidity
- Interest-rate moves affect asset yields and deposit pricing
- Regional concentration ties performance to Central Valley conditions
- Cybersecurity and systems failures can disrupt banking operations

## Accounting

For a bank like United Security Bancshares, the most important accounting judgments are the allowance for credit losses, fair value and impairment assessments, and the timing of interest income recognition on problem loans. Capital, liquidity, and deposit mix also affect estimates and disclosures, while goodwill and tax positions can create earnings volatility if assumptions change.

- **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

- Allowance for credit losses depends on borrower quality and economic forecasts
- Nonaccrual loans affect interest income recognition and asset quality metrics
- Goodwill impairment can create non-cash charges if valuation assumptions weaken
- Fair value estimates matter for securities and certain balance-sheet items
- Tax rate can vary with permanent differences and tax credits

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*Last updated: 2026-04-29T05:05:23.807910+00:00*