United Security Bancshares (UBFO) reported its fourth quarter earnings on December 31, 2025, revealing a net income of $3.4 million, a 36.8% increase from $2.5 million year-over-year. Earnings per share rose to 19 cents, reflecting a 35.7% gain from 14 cents in the prior year. However, shares of the company have declined 1.6% since the earnings report, while the S&P 500 index grew by 1.1% during the same period.
The company reported net interest income of $12.2 million for the fourth quarter, up 3.3% year-over-year, with a net interest margin improvement to 4.36%. For the full year, earnings fell 16.9% to $12.3 million, or 70 cents per share, primarily due to increased credit loss provisions and merger-related costs. A merger with Community West Bancshares was announced on December 16, 2025, intended to enhance company scale and value.
Additionally, noninterest income surged over tenfold to $1.3 million in the fourth quarter, driven by positive fair value adjustments. However, noninterest expenses rose by 18.5% year-over-year to $8.8 million, leading to a decline in operational efficiency, with the efficiency ratio worsening to 65.1% from 60.8% in the previous year.
