United Security Bancshares Reports $4.0 Million Net Income in Q3 2025

United Security Bancshares reported a net income of $4.0 million for the third quarter of 2025, reflecting a 5.07% increase from $3.8 million in the same period last year. For the nine months ending September 30, 2025, net income totaled $8.9 million, or $0.51 per share, down from $12.3 million, or $0.72 per share, for the same period in 2024. The decrease in year-to-date net income was primarily attributed to a significant increase in the provision for credit losses, particularly in the student loan portfolio, alongside rising deposit interest expenses. Total interest income for the quarter was $15.6 million, a slight decline from $15.8 million in the prior year, while interest expense decreased to $3.2 million from $3.9 million.

The company’s total assets increased to $1.24 billion as of September 30, 2025, up from $1.21 billion at the end of 2024. This growth was driven by a rise in cash and cash equivalents, which reached $66.8 million, compared to $56.2 million at the end of the previous year. Total loans, net of unearned fees, increased by 3.22% to $958.3 million, while total deposits rose by 1.73% to $1.08 billion. The increase in deposits was primarily due to growth in non-interest-bearing deposits and savings accounts.

In terms of operational developments, the company experienced a notable increase in its loan portfolio, particularly in real estate construction and agricultural loans, which rose by 28.24% and 45.83%, respectively. However, commercial and industrial loans saw a decrease of 31.94%. The company’s allowance for credit losses stood at $16.2 million, representing 1.69% of total loans, consistent with the previous year. The nonperforming loans ratio improved to 0.65% of total loans, down from 1.36% at the end of 2024.

Strategically, United Security Bancshares executed a partial redemption of $3.0 million of its junior subordinated debentures, reducing the remaining balance to $9.0 million. This move resulted in a realized gain of $241,000. The company also declared a cash dividend of $0.12 per share, payable on October 21, 2025. Looking ahead, the company remains focused on managing credit risk and maintaining liquidity while navigating the challenges posed by economic conditions, including inflation and interest rate fluctuations. Management anticipates continued pressure on loan performance, particularly in the student loan segment, but believes its current capital and liquidity positions are adequate to support future growth.