What changed in UNITED SECURITY BANCSHARES's 10-K — 2024 vs 2025
vs
Paragraph-level year-over-year comparison of UNITED SECURITY BANCSHARES's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.
+334 added−334 removedSource: 10-K (2026-03-26) vs 10-K (2025-03-20)
Top changes in UNITED SECURITY BANCSHARES's 2025 10-K
334 paragraphs added · 334 removed · 283 edited across 1 sections
- Item 1C. Cybersecurity+334 / −334 · 283 edited
Item 1C. Cybersecurity
Cybersecurity — threats and controls disclosure
283 edited+51 added−51 removed256 unchanged
Item 1C. Cybersecurity
Cybersecurity — threats and controls disclosure
283 edited+51 added−51 removed256 unchanged
2024 filing
2025 filing
Biggest changeThe following table presents loans by class, net of unearned fees and loan origination costs, by risk rating and period indicated as of December 31, 2024: Term Loans Amortized Cost Basis by Origination Year - As of December 31, 2024 Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans (In thousands) 2024 2023 2022 2021 2020 Prior Total Commercial and business Pass $ 2,374 $ 3,640 $ 2,076 $ 341 $ 408 $ 764 $ 29,349 $ — $ 38,952 Special Mention — 2,000 — — — — — — 2,000 Substandard — — 68 — 6,989 — 15,644 — 22,701 Total $ 2,374 $ 5,640 $ 2,144 $ 341 $ 7,397 $ 764 $ 44,993 $ — $ 63,653 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Government program Pass $ — $ — $ — $ — $ 2 $ 60 $ — $ — $ 62 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total $ — $ — $ — $ — $ 2 $ 60 $ — $ — $ 62 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate Pass $ 78,889 $ 32,794 $ 80,121 $ 31,376 $ 37,480 $ 151,066 $ 1,491 $ — $ 413,217 Special Mention — — — — 5,653 — — — 5,653 Substandard — — — 552 — — — — 552 Total $ 78,889 $ 32,794 $ 80,121 $ 31,928 $ 43,133 $ 151,066 $ 1,491 $ — $ 419,422 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential mortgages Not graded $ — $ — $ 23,929 $ 196,340 $ 2,480 $ 6,226 $ — $ — $ 228,975 Pass 4,824 3,969 1,926 4,320 1,580 1,654 — — 18,273 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total $ 4,824 $ 3,969 $ 25,855 $ 200,660 $ 4,060 $ 7,880 $ — $ — $ 247,248 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Home improvement and home equity Not graded $ — $ — $ — $ — $ — $ 24 $ — $ — $ 24 Pass — — — — — — — — — Special Mention — — — — — — — — — Substandard — — — — — — — — — Total $ — $ — $ — $ — $ — $ 24 $ — $ — $ 24 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — 63 Table of Contents Term Loans Amortized Cost Basis by Origination Year - As of December 31, 2024 Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans (In thousands) 2024 2023 2022 2021 2020 Prior Total Real estate construction and development Pass $ 13,761 $ 15,743 $ 8,004 $ — $ 32,389 $ 2,473 $ 26,577 $ — $ 98,947 Special Mention — — — — — — — — — Substandard — — — — 3,524 8,674 — — 12,198 Total $ 13,761 $ 15,743 $ 8,004 $ — $ 35,913 $ 11,147 $ 26,577 $ — $ 111,145 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Agricultural Pass $ 3,097 $ 2,115 $ 3,990 $ 490 $ 2,861 $ 11,586 $ 22,705 $ — $ 46,844 Special Mention — — 1,503 — 440 285 — — 2,228 Substandard — — — — — — 390 — 390 Total $ 3,097 $ 2,115 $ 5,493 $ 490 $ 3,301 $ 11,871 $ 23,095 $ — $ 49,462 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Installment and student loans Not graded $ 440 $ 1,607 $ 103 $ 99 $ 8 $ 34,162 $ 606 $ — $ 37,025 Pass — — — — — — — — — Special Mention — — — — — — — — — Substandard — — — — — 421 — — 421 Total $ 440 $ 1,607 $ 103 $ 99 $ 8 $ 34,583 $ 606 $ — $ 37,446 Current period gross charge-offs $ — $ 20 $ — $ — $ — $ 2,842 $ — $ — $ 2,862 Total loans outstanding (risk rating): Not graded $ 440 $ 1,607 $ 24,032 $ 196,439 $ 2,488 $ 40,412 $ 606 $ — $ 266,024 Pass 102,945 58,261 96,117 36,527 74,720 167,603 80,122 — 616,295 Special Mention — 2,000 1,503 — 6,093 285 — — 9,881 Substandard — — 68 552 10,513 9,095 16,034 — 36,262 Grand total loans $ 103,385 $ 61,868 $ 121,720 $ 233,518 $ 93,814 $ 217,395 $ 96,762 $ — $ 928,462 Current period gross charge-offs $ — $ 20 $ — $ — $ — $ 2,842 $ — $ — $ 2,862 64 Table of Contents The following table presents loans by class, net of deferred fees, by risk rating and period indicated as of December 31, 2023 : Term Loans Amortized Cost Basis by Origination Year - As of December 31, 2023 Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans (In thousands) 2023 2022 2021 2020 2019 Prior Total Commercial and business Pass $ 5,989 $ 5,066 $ 1,594 $ 810 $ 6 $ 939 $ 38,869 $ — $ 53,273 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total $ 5,989 $ 5,066 $ 1,594 $ 810 $ 6 $ 939 $ 38,869 $ — $ 53,273 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Government program Pass $ — $ — $ — $ 8 $ — $ 66 $ — $ — $ 74 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total $ — $ — $ — $ 8 $ — $ 66 $ — $ — $ 74 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate Pass $ 40,929 $ 81,823 $ 52,019 $ 39,155 $ 60,626 $ 105,285 $ 501 $ — $ 380,338 Special Mention — — — 5,796 — — — — 5,796 Substandard — — — — — — — — — Total $ 40,929 $ 81,823 $ 52,019 $ 44,951 $ 60,626 $ 105,285 $ 501 $ — $ 386,134 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential mortgages Not graded $ — $ 24,835 $ 206,257 $ 2,260 $ — $ 8,969 $ — $ — $ 242,321 Pass 4,189 1,925 5,253 1,579 3,494 1,778 — — 18,218 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total $ 4,189 $ 26,760 $ 211,510 $ 3,839 $ 3,494 $ 10,747 $ — $ — $ 260,539 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Home improvement and home equity Not graded $ — $ — $ — $ — $ — $ 32 $ — $ — $ 32 Pass — — — — — 4 — — 4 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total $ — $ — $ — $ — $ — $ 36 $ — $ — $ 36 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — 65 Table of Contents Term Loans Amortized Cost Basis by Origination Year - As of December 31, 2023 Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans (In thousands) 2023 2022 2021 2020 2019 Prior Total Real estate construction and development Pass $ 27,951 $ 9,571 $ — $ 31,308 $ — $ 3,978 $ 43,734 $ — $ 116,542 Special Mention — — — — — — — — — Substandard — — — 3,524 — 7,878 — — 11,402 Total $ 27,951 $ 9,571 $ — $ 34,832 $ — $ 11,856 $ 43,734 $ — $ 127,944 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Agricultural Pass $ 2,086 $ 4,163 $ 457 $ 2,958 $ 1,592 $ 12,574 $ 22,556 $ — $ 46,386 Special Mention — 2,105 — 513 — 356 — — 2,974 Substandard — — — — — 45 390 — 435 Total $ 2,086 $ 6,268 $ 457 $ 3,471 $ 1,592 $ 12,975 $ 22,946 $ — $ 49,795 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Installment and student loans Not graded $ 708 $ 250 $ 142 $ 74 $ 483 $ 38,519 $ 472 $ — $ 40,648 Pass 1,173 — — — — — — — 1,173 Special Mention — — — — — — — — — Substandard — — — — — 426 — — 426 Total $ 1,881 $ 250 $ 142 $ 74 $ 483 $ 38,945 $ 472 $ — $ 42,247 Current period gross charge-offs $ — $ — $ — $ — $ — $ 2,588 $ — $ — $ 2,588 Total loans outstanding (risk rating): Not graded $ 708 $ 25,085 $ 206,399 $ 2,334 $ 483 $ 47,520 $ 472 $ — $ 283,001 Pass 82,317 102,548 59,323 75,818 65,718 124,624 105,660 — 616,008 Special Mention — 2,105 — 6,309 — 356 — — 8,770 Substandard — — — 3,524 — 8,349 390 — 12,263 Grand total loans $ 83,025 $ 129,738 $ 265,722 $ 87,985 $ 66,201 $ 180,849 $ 106,522 $ — $ 920,042 Current period gross charge-offs $ — $ — $ — $ — $ — $ 2,588 $ — $ — $ 2,588 Allowance for Credit Losses on Loans The following summarizes the activity in the allowance for credit losses by loan category for the years ended December 31, 2024, and 2023 (in thousands).
Biggest changeThis classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off the asset even though partial recovery may be achieved in the future. 63 Table of Contents The following table presents loans by class, net of unearned fees and loan origination costs, by risk rating and period indicated as of December 31, 2025: Term Loans Amortized Cost Basis by Origination Year - As of December 31, 2025 Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans (In thousands) 2025 2024 2023 2022 2021 Prior Total Commercial and business Pass $ 3,817 $ 1,767 $ 4,231 $ 604 $ — $ 604 $ 12,828 $ — $ 23,851 Special Mention — — — — — — — — — Substandard — — — 44 — 6,424 15,812 — 22,280 Total $ 3,817 $ 1,767 $ 4,231 $ 648 $ — $ 7,028 $ 28,640 $ — $ 46,131 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Government program Pass $ — $ — $ — $ — $ — $ 53 $ — $ — $ 53 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total $ — $ — $ — $ — $ — $ 53 $ — $ — $ 53 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate Pass $ 30,298 $ 83,141 $ 27,715 $ 74,106 $ 30,146 $ 167,426 $ 4,448 $ — $ 417,280 Special Mention — — — — — 12,451 — — 12,451 Substandard — — — — 530 — — — 530 Total $ 30,298 $ 83,141 $ 27,715 $ 74,106 $ 30,676 $ 179,877 $ 4,448 $ — $ 430,261 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential mortgages Not graded $ — $ — $ — $ 21,751 $ 187,835 $ 7,974 $ — $ — $ 217,560 Pass 4,340 4,010 2,848 1,926 4,186 1,596 — — 18,906 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total $ 4,340 $ 4,010 $ 2,848 $ 23,677 $ 192,021 $ 9,570 $ — $ — $ 236,466 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Home improvement and home equity Not graded $ — $ — $ — $ — $ — $ 14 $ — $ — $ 14 Pass — — — — — — — — — Special Mention — — — — — — — — — Substandard — — — — — — — — — Total $ — $ — $ — $ — $ — $ 14 $ — $ — $ 14 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — 64 Table of Contents Term Loans Amortized Cost Basis by Origination Year - As of December 31, 2025 Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans (In thousands) 2025 2024 2023 2022 2021 Prior Total Real estate construction and development Pass $ 18,777 $ 16,756 $ 6,808 $ — $ — $ 2,289 $ 68,512 $ — $ 113,142 Special Mention — — — — — — — — — Substandard — — — — — 5,699 — — 5,699 Total $ 18,777 $ 16,756 $ 6,808 $ — $ — $ 7,988 $ 68,512 $ — $ 118,841 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Agricultural Pass $ 5,511 $ 3,084 $ — $ 3,856 $ 421 $ 13,648 $ 23,866 $ — $ 50,386 Special Mention — — — 902 — 580 — — 1,482 Substandard — — — — — — — — — Total $ 5,511 $ 3,084 $ — $ 4,758 $ 421 $ 14,228 $ 23,866 $ — $ 51,868 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Installment and student loans Not graded $ 1,913 $ 108 $ 1,301 $ 60 $ 28 $ 27,799 $ 583 $ — $ 31,792 Pass 1 — — — — — — — 1 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total $ 1,914 $ 108 $ 1,301 $ 60 $ 28 $ 27,799 $ 583 $ — $ 31,793 Current period gross charge-offs $ — $ — $ — $ — $ — $ 6,343 $ — $ — $ 6,343 Total loans outstanding (risk rating): Not graded $ 1,913 $ 108 $ 1,301 $ 21,811 $ 187,863 $ 35,787 $ 583 $ — $ 249,366 Pass 62,744 108,758 41,602 80,492 34,753 185,616 109,654 — 623,619 Special Mention — — — 902 — 13,031 — — 13,933 Substandard — — — 44 530 12,123 15,812 — 28,509 Grand total loans $ 64,657 $ 108,866 $ 42,903 $ 103,249 $ 223,146 $ 246,557 $ 126,049 $ — $ 915,427 Current period gross charge-offs $ — $ — $ — $ — $ — $ 6,343 $ — $ — $ 6,343 65 Table of Contents The following table presents loans by class, net of deferred fees, by risk rating and period indicated as of December 31, 2024 : Term Loans Amortized Cost Basis by Origination Year - As of December 31, 2024 Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans (In thousands) 2024 2023 2022 2021 2020 Prior Total Commercial and business Pass $ 2,374 $ 3,640 $ 2,076 $ 341 $ 408 $ 764 $ 29,349 $ — $ 38,952 Special Mention — 2,000 — — — — — — 2,000 Substandard — — 68 — 6,989 — 15,644 — 22,701 Total $ 2,374 $ 5,640 $ 2,144 $ 341 $ 7,397 $ 764 $ 44,993 $ — $ 63,653 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Government program Pass $ — $ — $ — $ — $ 2 $ 60 $ — $ — $ 62 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total $ — $ — $ — $ — $ 2 $ 60 $ — $ — $ 62 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate Pass $ 78,889 $ 32,794 $ 80,121 $ 31,376 $ 37,480 $ 151,066 $ 1,491 $ — $ 413,217 Special Mention — — — — 5,653 — — — 5,653 Substandard — — — 552 — — — — 552 Total $ 78,889 $ 32,794 $ 80,121 $ 31,928 $ 43,133 $ 151,066 $ 1,491 $ — $ 419,422 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential mortgages Not graded $ — $ — $ 23,929 $ 196,340 $ 2,480 $ 6,226 $ — $ — $ 228,975 Pass 4,824 3,969 1,926 4,320 1,580 1,654 — — 18,273 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total $ 4,824 $ 3,969 $ 25,855 $ 200,660 $ 4,060 $ 7,880 $ — $ — $ 247,248 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Home improvement and home equity Not graded $ — $ — $ — $ — $ — $ 24 $ — $ — $ 24 Pass — — — — — — — — — Special Mention — — — — — — — — — Substandard — — — — — — — — — Total $ — $ — $ — $ — $ — $ 24 $ — $ — $ 24 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — 66 Table of Contents Term Loans Amortized Cost Basis by Origination Year - As of December 31, 2024 Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans (In thousands) 2024 2023 2022 2021 2020 Prior Total Real estate construction and development Pass $ 13,761 $ 15,743 $ 8,004 $ — $ 32,389 $ 2,473 $ 26,577 $ — $ 98,947 Special Mention — — — — — — — — — Substandard — — — — 3,524 8,674 — — 12,198 Total $ 13,761 $ 15,743 $ 8,004 $ — $ 35,913 $ 11,147 $ 26,577 $ — $ 111,145 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Agricultural Pass $ 3,097 $ 2,115 $ 3,990 $ 490 $ 2,861 $ 11,586 $ 22,705 $ — $ 46,844 Special Mention — — 1,503 — 440 285 — — 2,228 Substandard — — — — — — 390 — 390 Total $ 3,097 $ 2,115 $ 5,493 $ 490 $ 3,301 $ 11,871 $ 23,095 $ — $ 49,462 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Installment and student loans Not graded $ 440 $ 1,607 $ 103 $ 99 $ 8 $ 34,162 $ 606 $ — $ 37,025 Pass — — — — — — — — — Special Mention — — — — — — — — — Substandard — — — — — 421 — — 421 Total $ 440 $ 1,607 $ 103 $ 99 $ 8 $ 34,583 $ 606 $ — $ 37,446 Current period gross charge-offs $ — $ 20 $ — $ — $ — $ 2,842 $ — $ — $ 2,862 Total loans outstanding (risk rating): Not graded $ 440 $ 1,607 $ 24,032 $ 196,439 $ 2,488 $ 40,412 $ 606 $ — $ 266,024 Pass 102,945 58,261 96,117 36,527 74,720 167,603 80,122 — 616,295 Special Mention — 2,000 1,503 — 6,093 285 — — 9,881 Substandard — — 68 552 10,513 9,095 16,034 — 36,262 Grand total loans $ 103,385 $ 61,868 $ 121,720 $ 233,518 $ 93,814 $ 217,395 $ 96,762 $ — $ 928,462 Current period gross charge-offs $ — $ 20 $ — $ — $ — $ 2,842 $ — $ — $ 2,862 Allowance for Credit Losses on Loans The following summarizes the activity in the allowance for credit losses by loan category for the years ended December 31, 2025, and 2024 (in thousands).
Historical credit loss experience provides the basis for the estimation of expected credit losses, which captures loan balances as of a point in time to form a cohort, and then tracks the respective losses generated by that cohort of loans over the remaining life.
Historical credit loss experience provides the basis for the estimation of expected credit losses, which captures loan balances as of a point in time to form a cohort, and then tracks the respective losses generated by that cohort of loans over the remaining life.
In addition, as a member of the Federal Reserve Bank of San Francisco (FRB), the Company is required to maintain an investment in capital stock of the FRB.
In addition, as a member of the Federal Reserve Bank of San Francisco (FRB), the Company is required to maintain an investment in the capital stock of the FRB.
Loans in this category are secured by real estate including improved and unimproved land, as well as single-family residential, multi-family residential, and commercial properties in various stages of completion. All real estate loans have established equity requirements.
Loans in this category are secured by real estate including improved and unimproved land, as well as single-family residential, multi-family residential, and commercial properties in various stages of completion. All real estate loans have established equity requirements.
Failure to meet minimum capital requirements can initiate certain mandates and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements.
Failure to meet minimum capital requirements can initiate certain mandates and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements.
Federal funds and securities purchased under agreements to resell are generally sold for a one-day periods. Net cash flows are reported for interest-bearing deposits with other banks, loans to customers, deposits held for customers, and short-term borrowings. q. Transfers of financial assets - Transfers of financial assets are accounted for as sales when control over the assets has been surrendered.
Federal funds and securities purchased under agreements to resell are generally sold for one-day periods. Net cash flows are reported for interest-bearing deposits with other banks, loans to customers, deposits held for customers, and short-term borrowings. q. Transfers of financial assets - Transfers of financial assets are accounted for as sales when control over the assets has been surrendered.
Stock based compensation - The Company maintains a stock-based employee compensation plan, which is described more fully in “ Note 12 - Stock Based Compensation.” All share-based payments to employees, including grants of employee stock options and restricted stock units and awards, are recognized in the consolidated financial statements based on the grant date fair value of the award.
Stock based compensation - The Company maintains a stock-based employee compensation plan, which is described more fully in “ Note 12 - Stock Based Compensation.” All share-based payments to employees and directors, including grants of employee stock options and restricted stock units and awards, are recognized in the consolidated financial statements based on the grant date fair value of the award.
In addition, the Company maintains a $50 million uncollateralized line of credit with Pacific Coast Bankers Bank, a $20 million uncollateralized line of credit with Zion’s Bank, and a $20 million uncollateralized line of credit with US Bank. At December 31, 2024, the Bank held no short-term borrowings.
In addition, the Company maintains a $50 million uncollateralized line of credit with Pacific Coast Bankers Bank, a $20 million uncollateralized line of credit with Zion’s Bank, and a $20 million uncollateralized line of credit with US Bank. At December 31, 2025 and December 31, 2024, the Bank held no short-term borrowings.
There was no premium expense for the years ended December 31, 2024 and December 31, 2023. There were eight Salary Continuation agreements established prior to 2015. Per the guidance in ASC Topic 715 “ Compensation,” the Company records in accumulated other comprehensive (loss) income the amounts that have not yet been recognized as components of net periodic benefit costs.
There was no premium expense for the years ended December 31, 2025 and December 31, 2024. There were eight Salary Continuation agreements established prior to 2015. Per the guidance in ASC Topic 715 “ Compensation,” the Company records in accumulated other comprehensive (loss) income the amounts that have not yet been recognized as components of net periodic benefit costs.
These assets include networks, computer hardware/software, and information that is processed, stored, or transported by networked systems and devices. • The Information Security Program was initially designed, and is regularly updated, to comply with the following laws and regulations: ◦ The Gramm-Leach-Bliley Act (GLBA) regarding protection of nonpublic personal information, ◦ The Federal Financial Institutions Examination Council’s “Interagency Guidelines Establishing Information Security Standards,” ◦ Supplemental federal and state banking regulations and guidelines regarding protection of nonpublic customer information, as applicable to this program. • Oversight of the Bank’s cybersecurity program is the responsibility of the IT Committee of the Board of Directors.
These assets include networks, computer hardware/software, and information that is processed, stored, or transported by networked systems and devices. • The Information Security Program was initially designed, and is regularly updated, to comply with the following laws and regulations: ◦ The Gramm-Leach-Bliley Act (GLBA) regarding protection of nonpublic personal information, ◦ The Federal Financial Institutions Examination Council’s “Interagency Guidelines Establishing Information Security Standards,” ◦ Supplemental federal and state banking regulations and guidelines regarding protection of nonpublic customer information, as applicable to this program. 18 Table of Contents • Oversight of the Bank’s cybersecurity program is the responsibility of the IT Committee of the Board of Directors.
These properties exceeded the 10-year holding period for other real estate owned, or “OREO.” YMP was funded with a $250,000 cash investment and the transfer of those parcels by the Bank to YMP. As of December 31, 2024, and 2023, these properties are included within the consolidated balance sheets as part of OREO.
These properties exceeded the 10-year holding period for other real estate owned, or “OREO.” YMP was funded with a $250,000 cash investment and the transfer of those parcels by the Bank to YMP. As of December 31, 2025, and 2024, these properties are included within the consolidated balance sheets as part of OREO.
Fair values are generally based on third party appraisals of the property, resulting in a Level 3 classification. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. No OREO properties were measured at fair value as of December 31, 2024, or December 31, 2023.
Fair values are generally based on third party appraisals of the property, resulting in a Level 3 classification. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. No OREO properties were measured at fair value as of December 31, 2025, or December 31, 2024.
The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Company’s historical loss experience from 2006 to 2024, which is adjusted for certain qualitative factors to reflect the extent to which management expects current conditions and reasonable and supportable forecasts to differ from the conditions that existed for the period over which historical information was evaluated.
The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Company’s historical loss experience from 2006 to 2025, which is adjusted for certain qualitative factors to reflect the extent to which management expects current conditions and reasonable and supportable forecasts to differ from the conditions that existed for the period over which historical information was evaluated.
The following tables summarize the Company’s assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2023: (In thousands) December 31, 2023 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: AFS Securities: U.S.
The following tables summarize the Company’s assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2025: (In thousands) December 31, 2025 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: AFS Securities: U.S.
Item 1A - Risk Factors Not required for smaller reporting companies. Item 1B - Unresolved Staff Comments The Company had no unresolved staff comments at December 31, 2024. Item 1C - Cybersecurity • Management of the Company’s wholly-owned subsidiary, United Security Bank (Bank), reports to the Board of Directors, or an appropriate committee of the board, at least annually.
Item 1A - Risk Factors Not required for smaller reporting companies. Item 1B - Unresolved Staff Comments The Company had no unresolved staff comments at December 31, 2025. Item 1C - Cybersecurity • Management of the Company’s wholly-owned subsidiary, United Security Bank (Bank), reports to the Board of Directors, or an appropriate committee of the board, at least annually.
At times throughout the year, balances can exceed FDIC insurance limits. Generally, federal funds sold and repurchase agreements are sold for one-day periods. The Bank did not have any repurchase agreements during 2024 or 2023. All cash and cash equivalents have maturities when purchased of three months or less. b.
At times throughout the year, balances can exceed FDIC insurance limits. Generally, federal funds sold and repurchase agreements are sold for one-day periods. The Bank did not have any repurchase agreements during 2025 or 2024. All cash and cash equivalents have maturities when purchased of three months or less. b.
At December 31, 2023, two of the real estate construction and development loans were secured by land and one was secured by a multifamily property, and agricultural loan was secured by farmland. Reserve for Unfunded Commitments The allowance for off-balance sheet credit exposure relates to commitments to extend credit, letters of credit, and undisbursed funds on lines of credit.
At December 31, 2024, two of the real estate construction and development loans were secured by land and one was secured by a multifamily property. The agricultural loan was secured by farmland. Reserve for Unfunded Commitments The allowance for off-balance sheet credit exposure relates to commitments to extend credit, letters of credit, and undisbursed funds on lines of credit.
Securities which the Company has the ability and intent to hold to maturity are classified as held-to-maturity. There were no securities classified as held-to-maturity as of December 31, 2024 and 2023. Available-for-sale debt securities in an unrealized loss position are evaluated when the amortized cost of a security exceeds its fair value.
Securities which the Company has the ability and intent to hold to maturity are classified as held-to-maturity. There were no securities classified as held-to-maturity as of December 31, 2025 and 2024. Available-for-sale debt securities in an unrealized loss position are evaluated when the amortized cost of a security exceeds its fair value.
Actual results could differ significantly from those estimates. Our most significant accounting policies and estimates and their related application are discussed below. Allowance for Credit Losses The allowance for credit losses (ACL) represents the estimated probable credit losses in our loan and investment portfolios and is estimated as of December 31, 2024, using CECL.
Actual results could differ significantly from those estimates. Our most significant accounting policies and estimates and their related application are discussed below. Allowance for Credit Losses The allowance for credit losses (ACL) represents the estimated probable credit losses in our loan and investment portfolios and is estimated as of December 31, 2025, using CECL.
Management estimates the allowance for credit loss balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Company’s historical loss experience from 2006 to 2024.
Management estimates the allowance for credit loss balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Company’s historical loss experience from 2006 to 2025.
The following summarizes available-for-sale debt securities in an unrealized loss position for which a credit loss has not been recorded at December 31, 2024, and 2023: Less than 12 Months 12 Months or More Total (In thousands) Fair Value (Carrying Amount) Unrealized Losses Fair Value (Carrying Amount) Unrealized Losses Fair Value (Carrying Amount) Unrealized Losses December 31, 2024 Securities available for sale: U.S.
The following summarizes available-for-sale debt securities in an unrealized loss position for which a credit loss has not been recorded at December 31, 2025, and 2024: Less than 12 Months 12 Months or More Total (In thousands) Fair Value (Carrying Amount) Unrealized Losses Fair Value (Carrying Amount) Unrealized Losses Fair Value (Carrying Amount) Unrealized Losses December 31, 2025 Securities available for sale: U.S.
In assessing whether the more-likely-than-not criterion is met, the entity should assume that the tax position will be reviewed by the applicable taxing authority and all available information is known to the taxing authority. As of December 31, 2024, and 2023, the Company has no uncertain tax positions.
In assessing whether the more-likely-than-not criterion is met, the entity should assume that the tax position will be reviewed by the applicable taxing authority and all available information is known to the taxing authority. As of December 31, 2025, and 2024, the Company has no uncertain tax positions.
In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2024 and 2023, and the consolidated results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.
In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2025 and 2024, and the consolidated results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.
All options, units, and awards granted are service awards, and are based solely upon fulfilling a requisite service period (the vesting period). At December 31, 2024, the Company had one shareholder approved stock based compensation plan. In May 2015, the Company adopted the United Security Bancshares 2015 Equity Incentive Award Plan (2015 Plan).
All options, units, and awards granted are service awards, and are based solely upon fulfilling a requisite service period (the vesting period). At December 31, 2025, the Company had one shareholder approved stock based compensation plan. In May 2015, the Company adopted the United Security Bancshares 2015 Equity Incentive Award Plan (2015 Plan).
There were no individually-evaluated loans measured at fair value as of December 31, 2024, or December 31, 2023. Other Real Estate Owned - Nonrecurring adjustments to certain commercial and residential real estate properties classified as other real estate owned (OREO) are measured at the lower of carrying amount or fair value, less costs to sell.
There were no individually-evaluated loans measured at fair value as of December 31, 2025, or December 31, 2024. Other Real Estate Owned - Nonrecurring adjustments to certain commercial and residential real estate properties classified as other real estate owned (OREO) are measured at the lower of carrying amount or fair value, less costs to sell.
Goodwill - Goodwill amounts resulting from acquisitions are considered to have an indefinite life and are not amortized. At December 31, 2024, and 2023, the Company reported goodwill totaling $4.5 million. The Company did not recognize any impairment charges on goodwill during 2024 or 2023. n.
Goodwill - Goodwill amounts resulting from acquisitions are considered to have an indefinite life and are not amortized. At December 31, 2025, and 2024, the Company reported goodwill totaling $4.5 million. The Company did not recognize any impairment charges on goodwill during 2025 or 2024. n.
Investment in Limited Partnerships The Bank owns interests in two local-area limited partnerships that provide private capital for small- and medium-sized businesses. This capital is typically used for financing later-stage growth, strategic acquisitions, ownership transitions, recapitalizations, or mezzanine capital.
Investment in Limited Partnerships The Bank owns interests in three local-area limited partnerships that provide private capital for small- and medium-sized businesses. This capital is typically used for financing later-stage growth, strategic acquisitions, ownership transitions, recapitalizations, or mezzanine capital.
Comprehensive income (loss) is presented in the “Consolidated Statements of Other Comprehensive Income.” u. Segment reporting - The Company’s operations are solely in the financial services industry and provides its customers traditional banking and other financial services. The Company operates primarily in California’s San Joaquin Valley.
Comprehensive income (loss) is presented in the “Consolidated Statements of Other Comprehensive Income.” u. Segment reporting - The Company’s operations are solely in the financial services industry and provide its customers traditional banking and other financial services. The Company operates primarily in California’s San Joaquin Valley.
The Company and its subsidiary file income tax returns in the U.S federal jurisdiction and California. There are no filings in foreign jurisdictions. The Company is no longer subject to income tax examinations by taxing authorities for years before 2021 and 2020 for Federal and California jurisdictions, respectively.
The Company and its subsidiary file income tax returns in the U.S federal jurisdiction and California. There are no filings in foreign jurisdictions. The Company is no longer subject to income tax examinations by taxing authorities for years before 2022 and 2021 for Federal and California jurisdictions, respectively.
To determine the rating, the Company considers at least the following factors: - Quality of management - Liquidity - Leverage/capitalization - Profit margins/earnings trend - Adequacy of financial records 61 Table of Contents - Alternative funding sources - Geographic risk - Industry risk - Cash flow risk - Accounting practices - Asset protection - Extraordinary risks The Company assigns risk ratings to loans other than consumer loans and other homogeneous loan pools based on the following scale.
To determine the rating, the Company considers at least the following factors: - Quality of management - Liquidity - Leverage/capitalization - Profit margins/earnings trend - Adequacy of financial records - Alternative funding sources - Geographic risk - Industry risk - Cash flow risk - Accounting practices - Asset protection - Extraordinary risks The Company assigns risk ratings to loans other than consumer loans and other homogeneous loan pools based on the following scale.
Thus, as a result of the significant size of the loan portfolio, the numerous assumptions in the model, and the high degree of potential change in such assumptions, there is a high degree of subjectivity in the reported amounts. Management believes the ACL is adequate as of December 31, 2024.
Thus, as a result of the significant size of the loan portfolio, the numerous assumptions in the model, and the high degree of potential change in such assumptions, there is a high degree of subjectivity in the reported amounts. Management believes the ACL is adequate as of December 31, 2025.
The Company recognizes transfers between Level 1, 2, and 3 when a change in circumstances warrants a transfer. There were no transfers in or out of Level 1 and Level 2 fair value measurements during the year ended December 31, 2024.
The Company recognizes transfers between Level 1, 2, and 3 when a change in circumstances warrants a transfer. There were no transfers in or out of Level 1 and Level 2 fair value measurements during the year ended December 31, 2025.
Employees receive a comprehensive benefits package that includes paid time off, sick time, Company matching contributions of 100% up to 4% of salary contributions to a 17 Table of Contents qualified retirement plan, and other health and wellness benefits including participation in Company paid or subsidized medical, dental, term-life, accidental death and dismemberment, long-term disability insurance, and employee assistance programs.
Employees receive a comprehensive benefits package that includes paid time off, sick time, Company matching contributions of 100% up to 4% of salary contributions to a qualified retirement plan, and other health and wellness benefits including participation in Company paid or subsidized medical, dental, term-life, accidental death and dismemberment, long-term disability insurance, and employee assistance programs.
As of December 31, 2024, the Company had 14 operating leases and no financing leases. Upon adoption of ASC Topic 842, Leases , the Bank chose to apply the incremental borrowing rate in its determination of the lease liability.
As of December 31, 2025, the Company had 14 operating leases and no financing leases. Upon adoption of ASC Topic 842, Leases , the Bank chose to apply the incremental borrowing rate in its determination of the lease liability.
Pending factors include a 62 Table of Contents proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and refinancing plans. - Grade 9 – This grade includes loans classified “loss” which are considered uncollectible and of such little value that their continuance as bankable assets is not warranted.
Pending factors include a proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and refinancing plans. - Grade 9 – This grade includes loans classified “loss” which are considered uncollectible and of such little value that their continuance as bankable assets is not warranted.
Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 to the determination of the amount and timing of revenue from contracts with customers. 54 Table of Contents w. Leases - The Company recognizes lease assets and lease liabilities on the consolidated balance sheet.
Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 to the determination of the amount and timing of revenue from contracts with customers. w. Leases - The Company recognizes lease assets and lease liabilities on the consolidated balance sheet.
In addition, elevated inflation may cause unexpected changes in monetary policies and actions which may adversely affect consumer confidence, the economy, and our financial condition and results. 22 Table of Contents Supply chain constraints and a tightening of labor markets could potentially exacerbate inflation and sustain it at elevated levels, even as growth slows.
In addition, elevated inflation may cause unexpected changes in monetary policies and actions which may adversely affect consumer confidence, the economy, and our financial condition and results. Supply chain constraints and a tightening of labor markets could potentially exacerbate inflation and sustain it at elevated levels, even as growth slows.
Nonaccrual loans - Commercial, construction and commercial real estate loans are placed on non-accrual status under the following circumstances: • When there is doubt regarding the full repayment of interest and principal. • When principal and/or interest on the loan has been in default for a period of 90 days or more, unless the asset is both well secured and in the process of collection that will result in repayment in the near future. • When the loan is identified as having loss elements and/or is risk rated “8” Doubtful.
Nonaccrual loans - Loans are placed on non-accrual status under the following circumstances: • When there is doubt regarding the full repayment of interest and principal. • When principal and/or interest on the loan has been in default for a period of 90 days or more, unless the asset is both well secured and in the process of collection that will result in repayment in the near future. • When the loan is identified as having loss elements and/or is risk rated “8” Doubtful.
If applicable, net income per common share is retroactively adjusted for all stock dividends declared. 53 Table of Contents p. Cash flow reporting - For purposes of reporting cash flows, cash and cash equivalents includes cash on hand, noninterest-bearing amounts due from banks, federal funds sold and securities purchased under agreements to resell.
If applicable, net income per common share is retroactively adjusted for all stock dividends declared. p. Cash flow reporting - For purposes of reporting cash flows, cash and cash equivalents includes cash on hand, noninterest-bearing amounts due from banks, federal funds sold and securities purchased under agreements to resell.
The 2015 Plan requires that the exercise price may not be less than the fair value of the stock at the date the option is granted, and that the option price must be paid in-full at the time it is exercised.
The 2025 Plan requires that the exercise price may not be less than the fair value of the stock at the date the option is granted, and that the option price must be paid in-full at the time it is exercised.
To the extent there are observable prices in the market, the mid-point of the bid/ask price is used to determine the fair value of individual securities. If that data is not available for the last 30 days, a Level 2-type matrix pricing-approach, based on 79 Table of Contents comparable securities in the market, is utilized.
To the extent there are observable prices in the market, the mid-point of the bid/ask price is used to determine the fair value of individual securities. If that data is not available for the last 30 days, a Level 2-type matrix pricing-approach, based on comparable securities in the market, is utilized.
Commercial and industrial loans have a high degree of industry diversification and provide working capital, financing for the purchase of manufacturing plants and equipment, or funding for growth and general expansion of businesses. A substantial portion of commercial and industrial loans are secured by accounts receivable, inventory, leases, or other collateral, including real estate.
Commercial and industrial loans have a high degree of industry diversification and provide working capital, 58 Table of Contents financing for the purchase of manufacturing plants and equipment, or funding for growth and general expansion of businesses. A substantial portion of commercial and industrial loans are secured by accounts receivable, inventory, leases, or other collateral, including real estate.
When assigning risk ratings, the Company evaluates two risk rating approaches, a facility rating and a borrower rating as follows: Facility Rating: The facility rating is determined by the analysis of positive and negative factors that may indicate that the quality of a particular loan or credit arrangement requires that it be rated differently from the risk rating assigned to the borrower.
When assigning risk ratings, the Company evaluates two risk rating approaches, a facility rating and a borrower rating as follows: 61 Table of Contents Facility Rating: The facility rating is determined by the analysis of positive and negative factors that may indicate that the quality of a particular loan or credit arrangement requires that it be rated differently from the risk rating assigned to the borrower.
A complete description of the above plans is included in “Item 8 - Note 12 - Stock-Based Compensation to the Consolidated Financial Statements ,” and is hereby incorporated by reference.
A complete description of the above plans is included in “Item 8 - Note 12 - Stock-Based Compensation in the Notes to the Consolidated Financial Statements and is hereby incorporated by reference.
A qualifying community banking organization with a leverage ratio of greater than nine percent may opt into the community bank leverage ratio framework if it has average consolidated total assets of less than $10 billion, has off-balance-sheet exposures of 25% or less of total consolidated assets, and has total trading assets and trading liabilities of five percent or less of total consolidated assets.
A qualifying community banking organization with a leverage ratio of greater than nine percent may opt into the community bank leverage ratio framework if it has average consolidated total assets of less than $10 billion, has off-balance-sheet exposures of 25% or less of total consolidated assets, and has total trading assets and trading 88 Table of Contents liabilities of five percent or less of total consolidated assets.
Item 4 - Mine Safety Disclosures Not applicable. PART II Item 5 - Market for the Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities Trading History The Company’s common stock trades on The Nasdaq Global Select Market and is traded under the symbol UBFO.
Item 4 - Mine Safety Disclosures Not applicable. 19 Table of Contents PART II Item 5 - Market for the Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities Trading History The Company’s common stock trades on The Nasdaq Global Select Market and is traded under the symbol UBFO.
Auditing management’s judgments and assumptions involved significant audit effort as well as especially challenging and subjective auditor judgment when performing audit procedures and evaluating the results of those procedures. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements.
Auditing management’s judgments and assumptions involved significant audit effort as well as especially challenging and subjective auditor judgment when performing audit procedures and evaluating the results of those procedures. How We Addressed the Matter in Our Audit Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements.
Estimates are based on the enacted tax rate of the applicable period. o. Net income per common share - Basic income per common share is computed based on the weighted average number of common shares outstanding. Diluted income per share includes the effect of stock options and other potentially dilutive securities using the treasury stock method.
Estimates are based on the enacted tax rate of the applicable period. 54 Table of Contents o. Net income per common share - Basic income per common share is computed based on the weighted average number of common shares outstanding. Diluted income per share includes the effect of stock options and other potentially dilutive securities using the treasury stock method.
Transaction prices are typically fixed and are charged either on a periodic basis or as activity warrants. Contracts evaluated under the scope of Topic 606 are primarily related to service charges, fees on deposit accounts, debit card fees, ITM processing fees, and other service charges, commissions and fees.
Transaction prices are typically fixed and are charged either on a periodic basis or as activity warrants. Contracts evaluated under the scope of Topic 606 are primarily related to service charges, fees on deposit accounts, debit 55 Table of Contents card fees, ITM processing fees, and other service charges, commissions and fees.
When loans are placed on nonaccrual status, the accrual of interest for financial statement purposes is discontinued. Previously accrued but unpaid interest is reversed and charged against interest income. Student loans past due more than 90-days are not placed on nonaccrual status, but are charged-off once 120-days past due.
When loans are placed on nonaccrual status, the accrual of interest for financial statement purposes is discontinued. Previously accrued but unpaid interest is reversed and charged against interest income. Student loans past due more than 53 Table of Contents 90-days are not placed on nonaccrual status, but are charged-off once 120-days past due.
While cybersecurity risks have the potential to materially affect the Company’s business, financial condition, and results of operations, the Company does not believe that risks from cybersecurity threats or attacks, including as a result of any previous cybersecurity incidents, have materially affected the Company, including its business strategy, results of operations or financial 18 Table of Contents condition.
While cybersecurity risks have the potential to materially affect the Company’s business, financial condition, and results of operations, the Company does not believe that risks from cybersecurity threats or attacks, including as a result of any previous cybersecurity incidents, have materially affected the Company, including its business strategy, results of operations or financial condition.
This amount represents the difference between the plan liabilities calculated under net present value calculations, and the net plan liabilities actually recorded on the Company’s books at December 31, 2024, and 2023.
This amount represents the difference between the plan liabilities calculated under net present value calculations, and the net plan liabilities actually recorded on the Company’s books at December 31, 2025, and 2024.
See “ Note 4 - Student Loans” for specific information on the student loan portfolio. 52 Table of Contents When a loan is placed on non-accrual status and subsequent payments of interest (and principal) are received, the interest received may be accounted for in two separate ways.
See “ Note 4 - Student Loans” for specific information on the student loan portfolio. When a loan is placed on non-accrual status and subsequent payments of interest (and principal) are received, the interest received may be accounted for in two separate ways.
The segment is also distinguished by the level of information provided to the chief operating decision maker, who uses such information to review performance of various components of the business, such as branches, which are then aggregated if operating performance, product and services, and customers are similar.
The segment is also distinguished by the level of information provided to the chief operating decision maker, who 85 Table of Contents uses such information to review performance of various components of the business, such as branches, which are then aggregated if operating performance, product and services, and customers are similar.
Results of Operations The following table sets forth selected historical consolidated financial information for each of the years in the three‑year period ended December 31, 2024.
Results of Operations The following table sets forth selected historical consolidated financial information for each of the years in the three‑year period ended December 31, 2025.
These loans are first reviewed individually to determine if such loans have a unique risk profile that would warrant individual evaluation. When management has concluded that it is probable that the borrower will be unable to pay all amounts due under the original contractual terms, the loan is removed from collectively evaluated loan pools.
These loans are first reviewed individually to determine if such loans have a unique risk profile that would warrant individual 42 Table of Contents evaluation. When management has concluded that it is probable that the borrower will be unable to pay all amounts due under the original contractual terms, the loan is removed from collectively evaluated loan pools.
The administration building is located in Fresno, California, and does not provide branch services. At December 31, 2024, the Company held leases for seven of the branches and the nine remote ITM locations, and owned the remaining six branches. The Company also owns its headquarters in Fresno, California.
The administration building is located in Fresno, California, and does not provide branch services. At December 31, 2025, the Company held leases for seven of the branches and the seven remote ITM locations, and owned the remaining six branches. The Company also owns its headquarters in Fresno, California.
Nonrefundable fees and related direct costs associated with the origination or purchase of loans are deferred and netted against outstanding loan balances. The net deferred fees and costs are generally amortized into interest income over the loan’s term using the simple interest method.
Nonrefundable fees and related direct costs associated with the origination or purchase of loans are deferred and netted against outstanding loan balances. The net deferred fees and costs are generally amortized into interest income over the 52 Table of Contents loan’s term using the simple interest method.
Home equity loans are generally secured by junior trust deeds, but may be secured by 1 st trust deeds. 58 Table of Contents Real estate construction and development loans consist of loans for residential and commercial construction projects, as well as land acquisition and development, or land held for future development.
Home equity loans are generally secured by junior trust deeds, but may be secured by 1 st trust deeds. Real estate construction and development loans consist of loans for residential and commercial construction projects, as well as land acquisition and development, or land held for future development.
The 2015 Plan provides for the granting of up to 758,000 shares of authorized and unissued shares of common stock in the form of stock options, restricted stock units, and restricted stock awards.
The 2015 Plan provided for the granting of up to 758,000 shares of authorized and unissued shares of common stock in the form of stock options, restricted stock units, and restricted stock awards.
Future compensation under the Plan is earned by the employees for services rendered through retirement and vests over a period of 12 to 32 years. As of December 31, 2024, the Company maintained a total of 12 Salary Continuation agreements.
Future compensation under the Plan is earned by the employees for services rendered through retirement and vests over a period of 12 to 32 years. As of December 31, 2025, the Company maintained a total of 11 Salary Continuation agreements.
Participants may direct the investment of their contributions to the 401(k) Plan in any of several authorized investment vehicles. The Company contributes 76 Table of Contents funds to the Plan up to 4% of the employees’ eligible annual compensation. Company contributions are 100% vested at the time of contribution.
Participants may direct the investment of their contributions to the 401(k) Plan in any of several authorized investment vehicles. The Company contributes funds to the Plan up to 4% of the employees’ eligible annual compensation. Company contributions are 100% vested at the time of contribution.
The following table sets forth the high and low closing sales prices by quarter for the common stock, for the years ended December 31, 2024, and 2023.
The following table sets forth the high and low closing sales prices by quarter for the common stock, for the years ended December 31, 2025, and 2024.
Management continues to monitor and reduce the level of problem assets by working with borrowers to identify options, such as loan modifications, which may help borrowers facing difficulties. Net loan charge-offs during the year ended December 31, 2024, totaled $2.6 million, compared to $2.3 million for the year ended December 31, 2023.
Management continues to monitor and reduce the level of problem assets by working with borrowers to identify options, such as loan modifications, which may help borrowers facing difficulties. Net loan charge-offs during the year ended December 31, 2025, totaled $6.1 million, compared to $2.6 million for the year ended December 31, 2024.
These loans warrant a higher than average level of monitoring, supervision, and attention from the Company, but do not reflect credit weakness trends that weaken or inadequately protect the Company’s credit position.
These loans warrant a higher than average level of monitoring, supervision, and attention from the 62 Table of Contents Company, but do not reflect credit weakness trends that weaken or inadequately protect the Company’s credit position.
A summary of the status of the Company’s stock option values and activity is presented below: December 31, 2024 December 31, 2023 Weighted average grant-date fair value per share of stock options granted $ — $ — Weighted average fair value of stock options vested $ 26,000 $ 26,000 Total intrinsic value of stock options exercised $ — $ 85,000 The Bank determines fair value of stock options at grant date using the Black-Scholes-Merton pricing model that takes into account the stock price at the grant date, the exercise price, the expected life of the option, the volatility of the underlying stock and the expected dividend yield and the risk-free interest rate over the expected life of the option.
A summary of the status of the Company’s stock option values and activity is presented below: 76 Table of Contents December 31, 2025 December 31, 2024 Weighted average grant-date fair value per share of stock options granted $ — $ — Weighted average fair value of stock options vested $ 26,000 $ 26,000 Total intrinsic value of stock options exercised $ — $ — The Bank determines fair value of stock options at grant date using the Black-Scholes-Merton pricing model that takes into account the stock price at the grant date, the exercise price, the expected life of the option, the volatility of the underlying stock and the expected dividend yield and the risk-free interest rate over the expected life of the option.
Allowance for Credit Losses on Loans As described in Notes 1 and 3 to the consolidated financial statements, the Company’s measurement of expected credit losses on loans is based on relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts.
Allowance for Credit Losses on Loans Critical Audit Matter Description As described in Notes 1 and 3 to the consolidated financial statements, the Company’s measurement of expected credit losses on loans is based on relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts.
No assurance can be given that cash or stock dividends will be paid in the future. Securities Authorized for Issuance under Equity Compensation Plans The following table sets forth securities authorized for issuance under equity compensation plans as of December 31, 2024. All of our equity compensation plans have been approved by the shareholders.
No assurance can be given that cash or stock dividends will be paid in the future. 20 Table of Contents Securities Authorized for Issuance under Equity Compensation Plans The following table sets forth securities authorized for issuance under equity compensation plans as of December 31, 2025. All of our equity compensation plans have been approved by the shareholders.
Plan Category Number of securities to be issued upon exercise of outstanding options,warrants and rights (column (a)) Weighted-average exercise price of outstanding options, warrants and rights Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) Equity compensation plans approved by security holders 75,000 (1) $ 9.54 205,085 Equity compensation plans not approved by security holders N/A N/A N/A Total 75,000 $ 9.54 205,085 Under the United Security Bancshares 2015 Equity Incentive Award Plan (2015 Plan), we are authorized to issue restricted stock awards and units.
Plan Category Number of securities to be issued upon exercise of outstanding options,warrants and rights (column (a)) Weighted-average exercise price of outstanding options, warrants and rights Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) Equity compensation plans approved by security holders 75,000 (1) $ 9.54 1,099,074 Equity compensation plans not approved by security holders N/A N/A N/A Total 75,000 $ 9.54 1,099,074 Under the United Security Bancshares 2025 Equity Incentive Award Plan (2025 Plan), we are authorized to issue restricted stock awards and units.
These unrecognized costs arise from changes in the estimated interest rates used in the calculation of net liabilities under the Plan. As of December 31, 2024, and 2023, the Company had approximately $147,000 and $130,000, respectively in unrecognized net periodic benefit costs arising from changes in interest rates used in calculating the current post-retirement liability required under the Plan.
These unrecognized costs arise from changes in the estimated interest rates used in the calculation of net liabilities under the Plan. As of December 31, 2025, and 2024, the Company had approximately $145,000 and $147,000, respectively in unrecognized net periodic benefit costs arising from changes in interest rates used in calculating the current post-retirement liability required under the Plan.
Item 1C. Cybersecurity . Privacy The GLBA and the California Financial Information Privacy Act require financial institutions to implement policies and 16 Table of Contents procedures regarding the disclosure of non-public personal information about consumers to non‑affiliated third parties.
Item 1C. Cybersecurity . Privacy The GLBA and the California Financial Information Privacy Act require financial institutions to implement policies and procedures regarding the disclosure of non-public personal information about consumers to non‑affiliated third parties.
The Company did not repurchase any common shares under the stock repurchase plan during the years ended December 31, 2024, and 2023.
The Company did not repurchase any common shares under the stock repurchase plan during the years ended December 31, 2025, and 2024.
Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses and fair value of TRUPs.
Actual results could differ from those estimates. 51 Table of Contents Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses and fair value of TruPS.
There were no losses recorded due to credit-related factors for the periods ended December 31, 2024 or December 31, 2023.
There were no losses recorded due to credit-related factors for the periods ended December 31, 2025 or December 31, 2024.
At December 31, 2024, unused lines of credit with the Federal Home Loan Bank, Pacific Coast Banker’s Bank, Zion’s Bank, US Bank and the Federal Reserve Bank totaling $724.7 million were collateralized in part by investment securities and certain qualifying loans in the Company’s loan portfolio.
At December 31, 2025, unused lines of credit with the Federal Home Loan Bank, Pacific Coast Banker’s Bank, Zion’s Bank, US Bank and the Federal Reserve Bank totaling $695.7 million were collateralized in part by investment securities and certain qualifying loans in the Company’s loan portfolio.
A forbearance that results in and insignificant payment delay is not considered a concessionary change in terms, provided the borrower affirms the obligation. Forbearance is not an uncommon status designation; this designation is standard industry practice, and is consistent with a student’s migration to the medical profession.
A forbearance that results in and insignificant payment delay is not considered a concessionary change in terms, provided the borrower affirms the obligation. Forbearance is not an uncommon status designation; this designation is standard industry practice, and is consistent with a student’s migration to the medical profession. However, additional risk is associated with this designation.
Charge-offs related to the student loan portfolio totaled $2.8 million for the year ended December 31, 2024, and $2.6 million for the year ended December 31, 2023, and were partially offset by recoveries within the portfolio.
Charge-offs related to the student loan portfolio totaled $6.3 million for the year ended December 31, 2025, and $2.8 million for the year ended December 31, 2024, and were partially offset by recoveries within the portfolio.
The incremental borrowing rate approximates the Bank’s current rates for fully secured loans where the amount and terms applied are similar to the amount and terms of the lease. Operating lease expenses for the years ended December 31, 2024 and 2023, totaled $762,000 and $711,000, respectively.
The incremental borrowing rate approximates the Bank’s current rates for fully secured loans where the amount and terms applied are similar to the amount and terms of the lease. Operating lease expenses for the years ended December 31, 2025, and 2024, totaled $828,000 and $762,000, respectively.
Further, the bank must not be an advance approaches banking organization. 86 Table of Contents The final rule became effective January 1, 2020, and was adopted by the Bank on September 30, 2020. As of December 31, 2024, and December 31, 2023, the Company and Bank met all capital adequacy requirements to which they were subject.
Further, the bank must not be an advance approaches banking organization. The final rule became effective January 1, 2020, and was adopted by the Bank on September 30, 2020. As of December 31, 2025, and December 31, 2024, the Company and Bank met all capital adequacy requirements to which they were subject.
At December 31, 2024, the decline in fair value of the available-for-sale securities is attributed to changes in interest rates and not credit quality. The interest rate increases of 2022 and 2023 led to large decreases in bond prices and increases in yields.
At December 31, 2025, the decline in fair value of the available-for-sale securities is attributed to changes in interest rates and not credit quality. Increases in interest rates during 2022 and 2023 led to large decreases in bond prices and increases in yields.
… 305 more changes not shown on this page.