United Security Bancshares | research notes

United Security Bancshares: A Leading Financial Institution

Introduction

United Security Bancshares, Inc. (USBS) is a publicly traded financial holding company headquartered in Springfield, Missouri. With a network of over 150 branches and nearly $15 billion in assets, USBS is a prominent player in the financial services industry throughout the Midwest. This article provides an overview of the company, its history, operations, and financial performance.

History and Background

United Security Bancshares was established in 1922 as Springfield Security Bank. Over the decades, the company has undergone significant growth and expansion through acquisitions and organic growth. In 2013, USBS acquired Premier Financial Bancorp, Inc., a move that solidified its position as one of the largest banks in Missouri.

Operations

USBS provides a comprehensive range of financial products and services to individuals, small businesses, and corporations. Its core offerings include:

• Personal and business banking
• Commercial lending
• Wealth management
• Mortgage lending
• Insurance services

The company operates through its wholly-owned subsidiary, United Security Bank, which has branches in Missouri, Illinois, Arkansas, Kansas, and Oklahoma.

Financial Performance

United Security Bancshares has consistently reported positive financial results in recent years. The company's net income has grown steadily, and it has maintained a strong capital position. As of the first quarter of 2023, USBS had:

• Total assets of $14.9 billion
• Net income of $35.8 million
• Return on average assets (ROAA) of 1.16%
• Tier 1 capital ratio of 10.6%

Community Involvement

USBS is actively involved in the communities it serves. The company supports a variety of local organizations and initiatives through financial contributions, volunteerism, and sponsorships. For example, USBS has been a major supporter of educational programs, healthcare initiatives, and the arts.

Conclusion

United Security Bancshares is a well-established and financially sound financial institution that plays an important role in the Midwest. With a strong track record of performance, a commitment to providing quality service, and a deep involvement in the communities it serves, USBS is well-positioned for continued growth and success in the years to come.

Business Model of United Security Bancshares Company

United Security Bancshares Company (USB) is a bank holding company that operates primarily in the southeastern United States. Its primary business activities include:

• Retail Banking: Offering a range of banking services to individuals, small businesses, and non-profit organizations, including checking and savings accounts, loans, and credit cards.
• Commercial Banking: Providing a suite of financial services to small and medium-sized businesses, including lending, cash management, and advisory services.
• Private Wealth Management: Offering customized wealth management solutions for high-net-worth individuals and families.
• Mortgage Banking: Originating and servicing residential and commercial mortgages through its subsidiaries, such as United Mortgage Corporation.

Advantages to Competitors

USB has several advantages over its competitors:

• Strong Local Presence: USB has a strong local presence in the southeastern United States, with over 140 banking offices. This provides it with a deep understanding of the local markets and the ability to meet the specific financial needs of its customers.
• Comprehensive Product Suite: USB offers a wide range of financial services, allowing it to meet the diverse needs of its customers. This includes traditional banking products, such as checking and savings accounts, as well as more specialized services, such as private wealth management and mortgage banking.
• Technology Focus: USB has made significant investments in technology, including mobile banking, online account management, and data analytics. This provides its customers with a convenient and secure banking experience and allows the bank to operate more efficiently.
• Sound Financial Performance: USB has consistently maintained strong financial performance, highlighted by its high capital levels, low non-performing loans, and positive earnings growth. This provides it with a strong foundation for future growth.
• Customer-Centric Approach: USB places great importance on customer satisfaction and strives to build long-term relationships with its clientele. This customer-centric approach differentiates it from competitors and helps it retain a loyal customer base.

United Security Bancshares (USB)

Business Overview:

United Security Bancshares is a bank holding company headquartered in Washington, D.C. It operates through its subsidiary, United Bank, which provides a range of financial services to individuals, small businesses, and corporations in the metropolitan Washington, D.C. area and other select markets.

Financial Performance:

• Revenue: USB reported revenue of $167.6 million in 2021, a 6.8% increase from 2020.
• Net Income: Net income reached $45.2 million in 2021, up by 17.9% year-over-year.
• Earnings per Share (EPS): USB's EPS stood at $1.76 in 2021, an increase of 16.5%.
• Return on Equity (ROE): USB achieved an ROE of 9.6% in 2021, demonstrating strong profitability.

Loan Portfolio:

• USB's loan portfolio totaled $2.2 billion as of December 31, 2021.
• The majority of the loan portfolio (65%) consists of commercial real estate loans.
• Residential real estate loans make up 19% of the portfolio, while consumer loans account for 16%.

Deposit Base:

• USB holds a deposit base of approximately $1.9 billion, representing a diversified funding source.
• Non-interest-bearing demand deposits comprise 39% of the deposit base, while interest-bearing deposits account for 61%.

Capitalization:

• USB maintains a well-capitalized balance sheet with a Tier 1 capital ratio of 13.6% and a total capital ratio of 16.3%.
• The company has a strong credit rating of A3 from Moody's and BBB+ from S&P Global Ratings.

Industry Outlook:

The banking industry in the Washington, D.C. metropolitan area is competitive but also presents growth opportunities. The region is home to a large number of government agencies, businesses, and consumers, providing a steady customer base. However, USB faces competition from regional and national banks, as well as fintech companies.

Strengths:

• Strong capitalization and credit ratings
• Diversified loan portfolio
• Well-established presence in the Washington, D.C. metropolitan area
• Focus on relationship banking

Weaknesses:

• Relatively small size compared to national banks
• Competition from both traditional and non-traditional financial institutions
• Potential impact from economic downturns

Outlook:

USB's outlook is generally positive. The company is well-positioned to capitalize on the growth opportunities in the Washington, D.C. market. Its strong financial performance, diversified business model, and commitment to customer service are expected to drive continued growth and profitability in the future.

Similar Companies to United Security Bancshares that Customers May Also Like:

1. Signature Bank (SBNY)

• Homepage: https://www.signatureny.com/
• Why customers might like it:
  • Large commercial bank with a focus on lending to small and mid-sized businesses
  • Strong balance sheet and high credit ratings
  • Offers a range of business and personal banking services

2. The Bank of New York Mellon (BK)

• Homepage: https://www.bnymellon.com/
• Why customers might like it:
  • Global financial services company with a strong presence in asset management
  • Offers a wide range of wealth management, investment, and corporate banking services
  • Trusted by large institutions and individuals alike

3. SVB Financial Group (SIVB)

• Homepage: https://www.svb.com/
• Why customers might like it:
  • Specialized bank focused on serving technology and life science companies
  • Provides tailored financing, investment, and banking solutions
  • Known for its expertise in startups and innovation

4. PNC Financial Services Group (PNC)

• Homepage: https://www.pnc.com/
• Why customers might like it:
  • Large regional bank with a wide footprint across the eastern United States
  • Offers a comprehensive range of personal, business, and investment banking services
  • Strong in wealth management and retail brokerage

5. Citizens Financial Group (CFG)

• Homepage: https://www.citizensbank.com/
• Why customers might like it:
  • National bank with a strong presence in the Northeast
  • Focuses on consumer banking and small business lending
  • Offers digital and mobile banking convenience

United Security Bancshares

1945:

• Founded as United Security Bank in Richwood, West Virginia

1960s-1970s:

• Expanded operations throughout West Virginia and into Ohio

1980s:

• Became a publicly traded company
• Acquired several other banks, including First National Bank of Huntington and Farmers & Mechanics Bank of Charles Town

1990s:

• Continued to grow through acquisitions, including Central Bank & Trust of Fairmont
• Expanded into Maryland
• Established United Security Financial Services, offering brokerage and insurance services

2000s:

• Continued to expand geographically, acquiring banks in Pennsylvania and Virginia
• Increased its focus on commercial lending and wealth management

2010s:

• Renamed to United Security Bancshares
• Acquired Parkersburg National Bank
• Expanded into Kentucky and Alabama

Present:

• One of the largest regional banks in West Virginia
• Over $2.5 billion in assets
• Operates 39 banking offices in West Virginia, Ohio, Pennsylvania, Maryland, Virginia, Kentucky, and Alabama
• Offers a full range of banking, investment, and insurance products and services

2020

• February 26: United Security Bancshares (USB) announces its acquisition of First National Bank of Cadiz for $33.9 million.
• April 1: USB completes the acquisition of First National Bank of Cadiz.
• October 15: USB reports third-quarter earnings per share of $0.48, beating analyst expectations.

2021

• April 22: USB reports first-quarter earnings per share of $0.51, missing analyst expectations.
• July 23: USB announces its acquisition of Community Bank of Fredericktown for $10.3 million.
• September 1: USB completes the acquisition of Community Bank of Fredericktown.
• October 29: USB reports third-quarter earnings per share of $0.56, slightly beating analyst expectations.

2022

• January 28: USB reports fourth-quarter and full-year 2021 earnings per share of $0.58 and $1.90, respectively, both beating analyst expectations.
• April 21: USB reports first-quarter earnings per share of $0.50, missing analyst expectations.
• July 26: USB announces its acquisition of The Farmers Bank for $27.5 million.
• October 28: USB reports third-quarter earnings per share of $0.51, missing analyst expectations.

Recent Timelines

• November 3, 2022: USB announces a $30 million capital raise through a private placement of common stock.
• December 15, 2022: USB files its Form 10-K annual report with the SEC.
• January 25, 2023: USB reports fourth-quarter and full-year 2022 earnings per share of $0.50 and $1.82, respectively, both missing analyst expectations.

United Security Bancshares: A Beacon of Financial Excellence

As a satisfied customer of United Security Bancshares, I highly commend their unwavering commitment to providing exceptional financial services. From the moment I joined their team, I have been consistently impressed by their professionalism, dedication, and unwavering support.

Outstanding Customer Service

United Security Bancshares places the utmost importance on customer satisfaction. Their team of dedicated bankers is always available, going above and beyond to address my inquiries and provide tailored solutions that meet my specific needs. Whether I interact with them in person, over the phone, or through online channels, I am always met with warmth, courtesy, and genuine concern.

Innovative Banking Products

The company offers a comprehensive range of banking products and services that are designed to meet the evolving needs of today's consumers. From traditional checking and savings accounts to cutting-edge mobile banking and investment options, United Security Bancshares provides a one-stop shop for all my financial requirements. Their mobile app is particularly user-friendly and allows me to manage my finances on the go with ease.

Unwavering Security

In the realm of finance, security is paramount. United Security Bancshares takes every precaution to safeguard my personal and financial information. They employ state-of-the-art security measures and adhere to the highest industry standards to ensure my financial well-being. I have complete confidence in their ability to protect my assets and maintain the integrity of my accounts.

Community Involvement

United Security Bancshares is not only a financial institution but also an active participant in the communities it serves. They generously support local charities and non-profit organizations, demonstrating their commitment to social responsibility and community empowerment. Their involvement fosters a sense of pride and belonging among customers and the wider community.

Conclusion

Choosing United Security Bancshares as my financial partner has been one of the best decisions I have made. Their exceptional customer service, innovative products, unwavering security, and community involvement have created a truly positive banking experience for me. I highly recommend United Security Bancshares to anyone seeking a reliable, customer-centric, and socially responsible financial institution.

Unlock Financial Security and Growth with United Security Bancshares

Welcome to United Security Bancshares, your trusted financial partner for individuals and businesses alike. As a leading financial institution, we are committed to providing exceptional banking and financial solutions to help you achieve your financial goals.

Our Comprehensive Services:

• Personal Banking: Checking and savings accounts, mortgages, personal loans, and more
• Business Banking: Commercial lending, cash management, and treasury services
• Wealth Management: Investment management, financial planning, and estate planning

Why Choose United Security Bancshares?

• Financial Strength: We are a well-capitalized and stable financial institution, ensuring your financial well-being.
• Personalized Service: Our team of experienced bankers are dedicated to providing you with personalized financial advice and support.
• Innovative Technology: We offer online and mobile banking solutions to provide convenient and secure access to your accounts.
• Commitment to Community: We actively support our local communities through financial education and charitable giving.

Join the United Security Family:

• Visit our website at www.unitedsecuritybancshares.com to learn more about our services and products.
• Schedule an appointment with one of our bankers to discuss your financial needs.
• Follow us on social media for the latest financial news and updates.

At United Security Bancshares, we believe that financial security and growth should be accessible to everyone. We are here to help you navigate your financial journey and achieve your financial aspirations.

Take the first step towards your financial future. Visit our website today and discover how United Security Bancshares can be your trusted financial partner.

United Security Bancshares Main Suppliers (Upstream Service Providers)

United Security Bancshares relies on various suppliers and service providers to support its business operations and provide essential products and services. Here are some of the key suppliers and their websites:

Core Banking Platform:

• Fiserv: https://www.fiserv.com/
  • Fiserv provides United Security Bancshares with its core banking platform, which encompasses account processing, loan servicing, and other critical banking functions.

Payment Processing:

• Fiserv: https://www.fiserv.com/
  • Fiserv also handles payment processing for United Security Bancshares, ensuring seamless and secure transactions for customers.

Digital Banking:

• FIS Global: https://www.fisglobal.com/
  • FIS Global provides United Security Bancshares with its digital banking services, including online and mobile banking platforms.

Data Analytics:

• FICO: https://www.fico.com/
  • FICO supplies United Security Bancshares with data analytics solutions to enhance risk management, fraud detection, and customer segmentation.

Credit Reporting:

• Equifax: https://www.equifax.com/
• Experian: https://www.experian.com/
• TransUnion: https://www.transunion.com/
  • These credit reporting agencies provide United Security Bancshares with access to consumer credit data for underwriting and risk assessment purposes.

Insurance:

• Zurich North America: https://www.zurichna.com/
• USI Insurance Services: https://www.usi.com/
  • United Security Bancshares utilizes Zurich North America and USI Insurance Services for various insurance coverage, including property, liability, and directors and officers insurance.

Legal Services:

• Jones Day: https://www.jonesday.com/
• Baker McKenzie: https://www.bakermckenzie.com/
  • United Security Bancshares retains these legal firms for a range of legal services, including regulatory compliance, corporate transactions, and litigation.

Auditing and Accounting:

• PricewaterhouseCoopers (PwC): https://www.pwc.com/
  • PwC is the external auditor for United Security Bancshares, providing independent assurance on the accuracy and reliability of its financial statements.

These suppliers play a crucial role in enabling United Security Bancshares to deliver its financial products and services effectively and efficiently to its customers. United Security Bancshares maintains close relationships with these providers to ensure the highest levels of service and support for its own operations.

Top Customers of United Security Bancshares

United Security Bancshares is a bank holding company that provides a range of financial services, including commercial and retail banking, trust and wealth management, and insurance. The company's primary customer base consists of small and medium-sized businesses, individuals, and non-profit organizations located in the Mid-Atlantic region of the United States.

Key Customer Segments

• Small and Medium-Sized Businesses: United Security Bancshares provides a variety of banking services to small and medium-sized businesses, including commercial loans, lines of credit, and cash management solutions. The company's focus on this segment is driven by its understanding of the unique financial needs of small businesses and its commitment to supporting their growth and success.

• Individuals: United Security Bancshares offers a full range of personal banking products and services, including checking and savings accounts, mortgages, and personal loans. The company's focus on individuals is driven by its commitment to providing personalized financial advice and solutions to help customers achieve their financial goals.

• Non-Profit Organizations: United Security Bancshares provides specialized banking and investment services to non-profit organizations. The company's understanding of the unique financial challenges faced by non-profits enables it to provide tailored solutions that meet their needs and support their missions.

Specific Notable Customers

While United Security Bancshares does not publicly disclose the names of its individual customers, some of its notable clients include:

• Johns Hopkins University: A leading research university located in Baltimore, Maryland.
• University of Maryland Medical System: One of the largest healthcare systems in the Mid-Atlantic region.
• Baltimore Symphony Orchestra: A world-renowned orchestra based in Baltimore, Maryland.
• Smithsonian Institution: A renowned group of museums and research centers dedicated to the increase and diffusion of knowledge.
• Chesapeake Bay Foundation: A non-profit organization dedicated to protecting and restoring the Chesapeake Bay.

Website

United Security Bancshares' website is located at: https://www.unitedsecuritybancshares.com/

Key Revenue Streams of United Security Bancshares

1. Net Interest Income (NII)

• Estimated Annual Revenue: $225 million
• Source: Interest earned on loans and investments minus interest paid on deposits.
• This segment accounts for the majority of the company's revenue.

2. Non-Interest Income (NII)

• Estimated Annual Revenue: $45 million
• Source: Fees and commissions earned from various services, such as:
  • Service charges on deposits and accounts
  • Loan origination fees
  • Wealth management fees
  • Credit card fees

3. Other Income

• Estimated Annual Revenue: $10 million
• Source: Miscellaneous income, such as gains on investments and insurance recoveries.

Detailed Analysis of Revenue Streams

1. Net Interest Income

• Driven by the company's strong loan portfolio and disciplined approach to managing interest rate risk.
• United Security Bancshares has consistently reported high net interest margins, indicating its ability to earn a spread between loan rates and deposit rates.

2. Non-Interest Income

• Non-interest income has grown steadily in recent years, reflecting the company's strategic initiatives to diversify revenue sources.
• Wealth management and credit card operations have been key contributors to non-interest income growth.

3. Other Income

• Other income is generally volatile and represents a smaller portion of total revenue.
• However, it can provide supplemental income and contribute to the company's overall financial performance.

Additional Notes:

• The estimated annual revenue figures are based on publicly available information and may vary slightly from actual results.
• United Security Bancshares has a diversified revenue base, with multiple revenue streams contributing to its financial stability.
• The company's focus on customer service and operational efficiency helps it maintain a competitive edge in the banking industry.

Key Partners of United Security Bancshares

United Security Bancshares, Inc., a bank holding company, provides a range of financial services to individuals, businesses, and governmental entities in Kentucky. The company's key partners include:

• Banks and Credit Unions: United Security Bancshares maintains correspondent banking relationships with other banks and credit unions, which allows it to offer a wider range of services to its customers. These relationships also provide United Security Bancshares with access to liquidity and other resources.

• Financial Advisors: United Security Bancshares partners with independent financial advisors to provide investment and financial planning services to its customers. These advisors can help customers with a variety of financial needs, including retirement planning, college savings, and estate planning.

• Insurance Companies: United Security Bancshares partners with insurance companies to offer a variety of insurance products to its customers. These products include life insurance, health insurance, and property and casualty insurance.

• Mortgage Lenders: United Security Bancshares partners with mortgage lenders to offer a variety of mortgage products to its customers. These products include fixed-rate mortgages, adjustable-rate mortgages, and jumbo mortgages.

• Title Companies: United Security Bancshares partners with title companies to provide title insurance to its customers. Title insurance protects customers from financial losses due to title defects.

Websites

• United Security Bancshares website
• Kentucky Bankers Association website
• National Association of Insurance and Financial Advisors website
• American Bankers Association website
• Mortgage Bankers Association website
• American Land Title Association website

United Security Bancshares

Cost Structure

United Security Bancshares incurs various costs in the operation of its business, including:

Personnel Expenses:

• Salaries and benefits: Compensation for employees, including base salaries, bonuses, and benefits such as health insurance and paid time off.

Estimated annual cost: $100 million - $120 million

Interest Expense:

• Interest on deposits: Interest paid to depositors on savings accounts, checking accounts, and other deposit products.
• Interest on borrowings: Interest expense on funds borrowed from other financial institutions or the Federal Home Loan Bank System.

Estimated annual cost: $40 million - $50 million

General and Administrative Expenses:

• Occupancy costs: Rent or lease payments for office space, branches, and other facilities.
• Information technology: Costs for maintaining and upgrading hardware, software, and data systems.
• Marketing and advertising: Expenses for promoting the bank's products and services.

Estimated annual cost: $20 million - $30 million

Depreciation and Amortization:

• Depreciation: Non-cash expense that allocates the cost of fixed assets, such as buildings and equipment, over their useful life.
• Amortization: Non-cash expense that allocates the cost of intangible assets, such as software and goodwill, over their useful life.

Estimated annual cost: $10 million - $15 million

Other Expenses:

• Loan loss provision: Provision for potential losses on loans that may become uncollectible.
• Regulatory compliance: Costs associated with meeting regulatory requirements.
• Professional fees: Fees paid to external auditors, attorneys, and other professionals.

Estimated annual cost: $15 million - $25 million

Estimated Total Annual Cost Structure:

$185 million - $240 million

Sales Channels

United Security Bancshares operates through the following primary sales channels:

• Branch network: The company maintains a network of approximately 200 branches located throughout the Midwest and Northeast regions of the United States. These branches provide a range of financial services, including deposit accounts, loans, and investment products, to individual and business customers.
• Online banking and mobile app: United Security Bancshares offers online banking and mobile app services that allow customers to access their accounts, make payments, and manage their finances remotely.
• Telephone banking: Customers can also access banking services through the company's telephone banking service.
• Wealth management: United Security Bancshares provides wealth management services to high-net-worth individuals and families through its subsidiary, United Security Trust Company. These services include investment management, financial planning, and estate planning.
• Commercial lending: The company provides commercial lending services to businesses of all sizes through its subsidiary, United Security Bank. These services include business loans, lines of credit, and equipment financing.
• Mortgage lending: United Security Bancshares offers mortgage lending services to individuals and families through its subsidiary, United Security Mortgage Company. These services include residential mortgages, jumbo loans, and refinancing.

Estimated Annual Sales

United Security Bancshares does not disclose its sales figures by sales channel. However, the company's total revenue for the year ended December 31, 2022, was $1.5 billion. This revenue is generated from a combination of interest income, fee income, and other sources.

Customer Segments of United Security Bancshares

United Security Bancshares, Inc. (USB) serves a diverse customer base, primarily in the Central and Southern regions of the United States. The company's customer segments include:

1. Individuals and Families

• Retail Banking: USB offers a full range of banking products and services to individuals and families, including checking and savings accounts, loans, mortgages, and investment services.
• Estimated Annual Sales: $2.5 billion

2. Small Businesses

• Commercial Banking: USB provides financial solutions to small businesses, including business loans, lines of credit, and equipment financing.
• Estimated Annual Sales: $1.5 billion

3. Mid-Sized Businesses

• Middle Market Banking: USB offers customized financial services to mid-sized businesses, including commercial real estate lending, corporate finance, and treasury management.
• Estimated Annual Sales: $1.0 billion

4. Large Corporations

• Corporate Banking: USB provides specialized financial services to large corporations, including treasury management, foreign exchange, and capital markets.
• Estimated Annual Sales: $0.5 billion

5. Government and Non-Profit Organizations

• Public Sector Banking: USB provides banking and financial services to government agencies, municipalities, and non-profit organizations.
• Estimated Annual Sales: $0.25 billion

Total Estimated Annual Sales: $5.75 billion

Note: These estimates are based on available financial data and industry benchmarks. Actual sales may vary.

United Security Bancshares

Value Proposition

United Security Bancshares (USB) is a financial holding company that provides a comprehensive suite of banking and financial services to individuals and businesses in the Mid-Atlantic region. USB's value proposition is centered around providing exceptional customer service, offering innovative products and services, and maintaining a strong financial foundation.

Key Components:

1. Customer-Centric Approach:

• USB places a high value on its customers and strives to exceed their expectations.
• Provides personalized financial solutions tailored to individual needs.
• Employs knowledgeable and responsive financial advisors who provide guidance and support.

2. Innovative Products and Services:

• USB offers a wide range of banking products and services, including checking and savings accounts, loans, mortgages, and investment services.
• Constantly innovates to meet the evolving needs of customers in a digital-driven era.
• Provides convenient and secure banking options such as mobile banking, online bill pay, and contactless payments.

3. Strong Financial Foundation:

• USB maintains a strong financial position with ample capital and liquidity.
• Has consistently delivered solid financial performance with high return on equity (ROE) and low non-performing loans (NPLs).
• Adheres to sound risk management practices, ensuring the safety and security of customer funds.

Specific Benefits:

• Personalized Financial Advice: USB provides access to experienced financial advisors who can help customers navigate complex financial decisions.
• Convenience and Flexibility: USB's digital banking services and extensive branch network offer convenience and flexibility to customers.
• Competitive Products and Services: USB's banking products and services are competitively priced and offer competitive rates and low fees.
• Financial Stability: USB's strong financial foundation provides peace of mind and security to customers.
• Local Commitment: USB is actively involved in the communities it serves, supporting local businesses and non-profit organizations.

Target Market:

USB's value proposition is designed to appeal to a diverse range of customers, including individuals, small businesses, and mid-sized corporations. The company targets customers who value personalized service, innovative products, and a strong financial institution.

Conclusion:

United Security Bancshares offers a compelling value proposition that combines exceptional customer service, innovative products and services, and a strong financial foundation. By delivering on its promises, USB has established itself as a trusted and respected financial institution in the Mid-Atlantic region.

United Security Bancshares, Inc. (NASDAQ: USBI) is a bank holding company headquartered in Washington, D.C. The company's primary subsidiary, United Bank, provides a range of banking and financial services to individuals, businesses, and government entities in the Washington, D.C. metropolitan area and surrounding counties in Maryland, Virginia, and West Virginia.

United Security Bancshares is a relatively small bank holding company, with total assets of $1.8 billion as of March 31, 2023. The company's loan portfolio is primarily comprised of commercial real estate loans (43% of total loans) and commercial and industrial loans (32% of total loans). United Security Bancshares also has a significant deposit base, with total deposits of $1.5 billion as of March 31, 2023.

The company's financial performance has been generally strong in recent years. United Security Bancshares reported net income of $20.7 million in 2022, up from $17.5 million in 2021. The company's return on assets (ROA) and return on equity (ROE) were 1.14% and 8.33%, respectively, in 2022.

However, United Security Bancshares also faces a number of risks, including:

• Credit risk: The company's loan portfolio is concentrated in commercial real estate and commercial and industrial lending, which are sectors that are more sensitive to economic conditions. A downturn in the economy could lead to an increase in loan defaults and losses.
• Interest rate risk: United Security Bancshares is exposed to interest rate risk due to the mismatch between the maturities of its assets and liabilities. An increase in interest rates could reduce the value of the company's fixed-rate assets and increase the cost of its floating-rate liabilities.
• Competition: The Washington, D.C. metropolitan area is a competitive banking market, with a number of large national and regional banks operating in the area. United Security Bancshares faces competition from these banks for deposits, loans, and other banking services.
• Regulatory risk: United Security Bancshares is subject to a variety of federal and state regulations, which can impact the company's operations and financial performance. Changes in these regulations could have a negative impact on the company's business.

Overall, United Security Bancshares is a relatively small bank holding company with a solid financial performance. However, the company faces a number of risks, including credit risk, interest rate risk, competition, and regulatory risk. Investors should carefully consider these risks before investing in the company's stock.