United Security Bancshares (UBFO) AI Stock Analysis

• Market Cap: $181.93M
• Dividend Yield: 4.66%
• Average Volume (3M): 27.81K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.75
• Revenue Growth: -2.00%
• EPS Growth: -36.25%
• Country: US
• Employees: 114
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.23
• Shares Outstanding: 17,577,353
• 10 Day Avg. Volume: 25,245
• 30 Day Avg. Volume: 27,812
• PEG Ratio: -0.45
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 2.65
• P/FCF Ratio: 9.34
• Enterprise Value/Market Cap: 0.59
• Enterprise Value/Revenue: 1.71
• Enterprise Value/Gross Profit: 2.36
• Enterprise Value/Ebitda: 5.98
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: $12.00 ▲(15.83% Upside)

United Security Bancshares is in a stable financial position with strong technical momentum and positive corporate developments. The merger with Community West Bancshares is a significant positive factor, expected to enhance growth prospects. However, challenges in revenue growth and profitability margins slightly temper the overall outlook.

Positive Factors

Merger with Community West Bancshares

The merger is expected to enhance operational scale and shareholder value, providing a stronger regional presence and resource base.

Low Debt Levels

Low leverage indicates strong financial stability, allowing for greater flexibility in strategic investments and growth initiatives.

Cash Flow Generation

Strong cash flow generation supports ongoing operations and potential investments, enhancing long-term financial health.

Negative Factors

Decline in Revenue Growth

Negative revenue growth indicates challenges in market expansion and product demand, potentially impacting future profitability.

Decreased Profitability Margins

Reduced profitability margins suggest increased costs or pricing pressures, which could affect long-term earnings potential.

Low Conversion of Net Income to Operating Cash Flow

Low conversion indicates potential inefficiencies in cash management, which could constrain liquidity and financial flexibility.

United Security Bancshares Business Overview & Revenue Model

Company Description

United Security Bancshares (UBFO) is a financial holding company based in the United States, primarily engaged in providing various banking services through its subsidiary, United Security Bank. The company operates in the banking sector, offering a wide range of financial products including commercial and consumer loans, deposit accounts, and mortgage services. With a focus on serving individuals and businesses in its local communities, UBFO aims to deliver personalized financial solutions while maintaining a commitment to high-quality customer service.

How the Company Makes Money

United Security Bancshares generates revenue primarily through interest income from loans and fees from banking services. Its key revenue streams include interest earned on commercial and consumer loans, as well as mortgage loans, which typically represent a significant portion of the company's earnings. Additionally, the bank earns non-interest income through service charges on deposit accounts, transaction fees, and wealth management services. The company may also benefit from partnerships with local businesses and community organizations, enhancing its customer base and increasing deposits. Economic factors, interest rate fluctuations, and regulatory changes can significantly impact its earnings, as they influence loan demand and interest margins.

United Security Bancshares Financial Statement Overview

Summary

United Security Bancshares demonstrates strong financial stability with low leverage and efficient cost management. However, recent declines in revenue growth and profitability margins pose challenges. The company maintains healthy cash flow generation, but the low conversion of net income to operating cash flow could be a concern. Overall, the company is in a stable financial position but faces growth and profitability challenges.

Income Statement

United Security Bancshares has shown a strong gross profit margin consistently above 70%, indicating efficient cost management. However, the net profit margin has decreased from 30% in 2023 to 17.95% in the TTM, reflecting reduced profitability. Revenue growth has been negative recently, with a decline of 3.27% in the TTM, which is a concern for future growth prospects.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.086 in the TTM, indicating strong financial stability and low leverage. The return on equity has decreased to 8.50% in the TTM from 16.15% in 2023, suggesting a decline in profitability relative to shareholders' equity. The equity ratio remains healthy, indicating a solid capital structure.

Cash Flow

Operating cash flow has improved, with a positive free cash flow growth rate of 11.67% in the TTM. However, the operating cash flow to net income ratio is low at 0.020, indicating potential issues in converting income into cash. The free cash flow to net income ratio remains strong at 0.95, suggesting good cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	63.33M	65.46M	65.95M	51.00M	41.03M	39.67M
Gross Profit	45.96M	48.60M	53.43M	46.01M	36.84M	34.61M
EBITDA	18.11M	22.43M	29.58M	23.99M	14.46M	13.22M
Net Income	11.37M	14.78M	19.80M	15.69M	10.10M	8.96M
Balance Sheet
Total Assets	1.24B	1.21B	1.21B	1.30B	1.33B	1.09B
Cash, Cash Equivalents and Short-Term Investments	207.68M	213.59M	222.05M	246.14M	398.12M	376.41M
Total Debt	11.82M	14.73M	74.65M	12.98M	13.89M	13.89M
Total Liabilities	1.10B	1.08B	1.09B	1.19B	1.21B	974.85M
Stockholders Equity	137.38M	130.36M	122.54M	112.46M	120.21M	117.81M
Cash Flow
Free Cash Flow	21.46M	18.60M	20.59M	21.56M	15.30M	12.66M
Operating Cash Flow	23.20M	19.64M	21.38M	23.70M	16.55M	13.80M
Investing Cash Flow	30.12M	12.95M	87.58M	-174.23M	-319.37M	-65.55M
Financing Cash Flow	-34.47M	-17.16M	-106.77M	-30.09M	227.97M	126.82M

United Security Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UBFO, the sentiment is Positive. The current price of 10.36 is above the 20-day moving average (MA) of 10.05, above the 50-day MA of 9.55, and above the 200-day MA of 8.89, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 67.73 is Neutral, neither overbought nor oversold. The STOCH value of 77.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UBFO.

United Security Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UBFO	78 Outperform	$181.93M	15.78	8.41%	4.66%	-2.00%	-36.25%
FCAP	72 Outperform	$222.75M	15.11	11.84%	1.73%	11.36%	25.07%
BVFL	72 Outperform	$173.98M	17.97	5.32%	―	4.86%	-8.20%
CZWI	69 Neutral	$177.84M	14.30	7.00%	1.96%	-2.16%	-9.35%
HNVR	68 Neutral	$171.61M	15.85	5.60%	1.68%	0.99%	-6.35%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MNSB	59 Neutral	$165.05M	-23.68	-2.07%	1.87%	1.92%	-174.59%

United Security Bancshares Corporate Events

United Security Bancshares Board Roles Set for Merger

On December 17, 2025, Community West Bancshares and United Security Bancshares announced that, under their previously disclosed all-stock merger agreement, United Security directors Jagroop “Jay” Gill and Dora Westerlund will join the Community West Bancshares board once the merger closes, subject to corporate governance requirements. Gill, currently the largest shareholder and vice chairman of United Security Bancshares, is expected to become vice chairman of Community West Bancshares’ board, a move that signals continuity of leadership and representation for United Security shareholders as the two Central California banking franchises work to integrate operations and build a larger, more visible regional banking platform.

United Security Bancshares Declares Quarterly Cash Dividend

On December 16, 2025, United Security Bancshares declared a quarterly cash dividend of $0.12 per share, payable on January 13, 2026, to shareholders of record as of December 26, 2025. This decision underscores the company’s commitment to maintaining shareholder value and highlights its sustained financial strength and operational consistency.

United Security Bancshares Announces Merger Agreement

On December 16, 2025, United Security Bancshares and Community West Bancshares entered into a definitive merger agreement, with the transaction valued around $191.9 million based on Community West Bancshares’ closing share price. This all-stock merger will see United Security Bancshares merge into Community West Bancshares, combining their respective banking subsidiaries. The unified entity will expand its presence across Central California with broader resources and increased operational scale, aiming to enhance service delivery and shareholder value. Once finalized in the second quarter of 2026, the combined company will have total assets nearing $5 billion. Leadership from both parties, including key board members and executives, will ensure a smooth integration, fostering customer retention and employee growth opportunities.

United Security Bancshares Declares Cash Dividend

On September 23, 2025, United Security Bancshares announced a cash dividend of $0.12 per share for shareholders recorded as of July 7, 2025, with payment scheduled for July 22, 2025. This decision reflects the company’s ongoing commitment to returning value to its shareholders and may influence investor perceptions positively, although it does not impact the company’s filings under the Securities Act of 1933 or 1934.