IMPORTANT DISCLAIMER: Blank Capital Research ("BCR") is a technology platform, not a registered investment advisor or broker-dealer. The algorithmically generated signals, scores, and rankings provided on this site ("God Mode" Signals) are for informational and research purposes only and do not constitute financial advice, investment recommendations, or an offer to sell or solicit an offer to buy any securities.
HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
RISK OF LOSS: Trading in financial markets involves a high degree of risk and may result in the loss of your entire investment. Data provided by third-party sources (Intrinio, Snowflake) is believed to be reliable but is not guaranteed for accuracy or completeness. Past performance is not indicative of future results.
Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 53.1GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
9.1%
Sector: 8.5%
Dividend Analysis audit
INCOME
5.27%
Trailing Yield
$5.27
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
77%MID
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
Sign up for free access to institutional-quality research tools.
Based on our 6-factor quantitative model, UNITED SECURITY BANCSHARES (UBFO) receives a "Hold" rating with a composite score of 50.8/100, ranked #608 out of 4446 stocks. Key factor scores: Quality 53/100, Value 70/100, Momentum 51/100. This is quantitative analysis only — not investment advice.
UNITED SECURITY BANCSHARES (UBFO) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does UNITED SECURITY BANCSHARES Do?
United Security Bancshares operates as the bank holding company for United Security Bank, a state-chartered bank that provides a range of commercial banking services to the business and professional community, and individuals in California. The company accepts various deposit products, including personal and business checking accounts, savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificates of deposit. It also provides real estate mortgage, commercial and industrial, real estate construction, and consumer loans, as well as agricultural, installment, and student loans. In addition, the company offers online and mobile banking, safe deposit boxes, wire transfers, payroll direct deposit, cashier's check, cash management, traveler's check, money order, and foreign draft services, as well as interactive teller machines and ATM services. As of January 26, 2022, it operated 12 full-service branch offices in Fresno, Bakersfield, Campbell, Caruthers, Coalinga, Firebaugh, Mendota, Oakhurst, San Joaquin, and Taft. The company was founded in 1987 and is headquartered in Fresno, California. UNITED SECURITY BANCSHARES (UBFO) is classified as a micro-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Dennis R. Woods and employs approximately 120 people, headquartered in Fresno, California. With a market capitalization of $185M, UBFO is one of the notable companies in the Financials sector.
UNITED SECURITY BANCSHARES (UBFO) Stock Rating — Hold (April 2026)
As of April 2026, UNITED SECURITY BANCSHARES receives a Hold rating with a composite score of 50.8/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.UBFO ranks #608 out of 4,446 stocks in our coverage universe. Within the Financials sector, UNITED SECURITY BANCSHARES ranks #183 of 891 stocks, placing it in the top quartile of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
UBFO Stock Price and 52-Week Range
UNITED SECURITY BANCSHARES (UBFO) currently trades at $9.99. The stock lost $0.15 (1.5%) in the most recent trading session. The 52-week high for UBFO is $11.52, which means the stock is currently trading -13.3% from its annual peak. The 52-week low is $7.32, putting the stock 36.5% above its annual trough. Recent trading volume was 37K shares, suggesting relatively thin trading activity.
Is UBFO Overvalued or Undervalued? — Valuation Analysis
UNITED SECURITY BANCSHARES (UBFO) carries a value factor score of 70/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 14.57x, compared to the Financials sector average of 14.88x — a discount of 2%. The price-to-book ratio stands at 1.32x, versus the sector average of 1.22x. The price-to-sales ratio is 63.15x, compared to 0.90x for the average Financials stock. On an enterprise value basis, UBFO trades at 10.53x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, UNITED SECURITY BANCSHARES appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
UNITED SECURITY BANCSHARES Profitability — ROE, Margins, and Quality Score
UNITED SECURITY BANCSHARES (UBFO) earns a quality factor score of 53/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 9.1%, compared to the Financials sector average of 8.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 1.0% versus the sector average of 1.2%.
On a margin basis, UNITED SECURITY BANCSHARES reports gross margins of 0.0%. The operating margin is 596.6% (sector: 21.8%). Net profit margin stands at 431.7%, versus 17.7% for the average Financials stock. Revenue growth is running at 18.0% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
UBFO Debt, Balance Sheet, and Financial Health
UNITED SECURITY BANCSHARES has a debt-to-equity ratio of 794.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.13x, suggesting adequate working capital coverage. Total debt on the balance sheet is $9M. Cash and equivalents stand at $67M.
UBFO has a beta of 0.81, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for UNITED SECURITY BANCSHARES is 80/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
UNITED SECURITY BANCSHARES Revenue and Earnings History — Quarterly Trend
In TTM 2026, UNITED SECURITY BANCSHARES reported revenue of $3M and earnings per share (EPS) of $0.70. Net income for the quarter was $13M. Gross margin was 0.0%. Operating income came in at $18M.
In FY 2025, UNITED SECURITY BANCSHARES reported revenue of $3M and earnings per share (EPS) of $0.70. Net income for the quarter was $12M. Revenue grew 1.2% year-over-year compared to FY 2024. Operating income came in at $17M.
In Q3 2025, UNITED SECURITY BANCSHARES reported revenue of $847,000 and earnings per share (EPS) of $0.23. Net income for the quarter was $4M. Revenue grew 17.8% year-over-year compared to Q3 2024. Operating income came in at $6M.
In Q2 2025, UNITED SECURITY BANCSHARES reported revenue of $726,000 and earnings per share (EPS) of $0.13. Net income for the quarter was $2M. Revenue grew 1.1% year-over-year compared to Q2 2024. Operating income came in at $3M.
Over the past 8 quarters, UNITED SECURITY BANCSHARES has demonstrated a growth trajectory, with revenue expanding from $718,000 to $3M. Investors analyzing UBFO stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
UBFO Dividend Yield and Income Analysis
UNITED SECURITY BANCSHARES (UBFO) currently pays a dividend yield of 5.3%. At this yield, a $10,000 investment in UBFO stock would generate approximately $$527.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning UBFO offers above-average income for its sector. With a net margin of 431.7%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
UBFO Momentum and Technical Analysis Profile
UNITED SECURITY BANCSHARES (UBFO) has a momentum factor score of 51/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 26/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 10/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
UBFO vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing UBFO against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full UBFO vs S&P 500 (SPY) comparison to assess how UNITED SECURITY BANCSHARES stacks up against the broader market across all factor dimensions.
UBFO Next Earnings Date
No upcoming earnings date has been announced for UNITED SECURITY BANCSHARES (UBFO) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy UBFO? — Investment Thesis Summary
UNITED SECURITY BANCSHARES presents a balanced picture with arguments on both sides. The value score of 70/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 80/100) reduces downside risk.
In summary, UNITED SECURITY BANCSHARES (UBFO) earns a Hold rating with a composite score of 50.8/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on UBFO stock.
We'll email you when stocks you follow change their composite rating.
Institutional Research Dossier
UNITED SECURITY BANCSHARES (UBFO) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
United Security Bancshares (UBFO) receives a Hold rating, primarily due to its rich valuation relative to its peers and historical performance, despite exhibiting strong profitability metrics. While the bank demonstrates impressive operating and net margins, its high P/E ratio and EV/EBITDA multiple compared to the sector suggest that the current market price already reflects much of its potential upside. Investors should remain cautious, awaiting a more favorable entry point or evidence of sustained, above-average growth to justify the premium valuation.
The bank's stability, as indicated by its high stability score, is a positive attribute, but the relatively low investment score raises concerns about its capital allocation and growth prospects. The current valuation, coupled with the mixed signals from the quant model, warrants a neutral stance, suggesting that investors should neither aggressively buy nor sell the stock at this time. Further monitoring of UBFO's financial performance and strategic initiatives is crucial to reassess its long-term investment potential.
Business Strategy & Overview
United Security Bancshares operates as a community bank, primarily serving the Central Valley region of California. Its core business revolves around providing traditional banking services, including deposit accounts, loans (real estate, commercial, and consumer), and other financial products to individuals, businesses, and agricultural clients. The bank's strategy appears to be focused on building strong relationships within its local communities, offering personalized service, and catering to the specific needs of its customer base. This localized approach allows them to compete with larger national banks by providing a more tailored and responsive banking experience.
The company's revenue streams are derived primarily from net interest income (the difference between interest earned on loans and interest paid on deposits) and, to a lesser extent, from fees generated through various banking services. The bank's focus on commercial and industrial lending, along with real estate mortgages, suggests a strategy of targeting businesses and individuals with more complex financial needs. This can lead to higher yields on loans but also carries increased credit risk, particularly in an environment of economic uncertainty.
United Security Bancshares also offers online and mobile banking services, reflecting an understanding of the need to adapt to changing customer preferences and technological advancements. The presence of interactive teller machines (ITMs) and ATMs further enhances customer convenience and accessibility. However, the company's relatively small size and limited geographic footprint may constrain its ability to invest heavily in cutting-edge technology compared to larger competitors.
The bank's strategic positioning within the competitive California banking landscape is crucial. While the state boasts a robust economy, it is also highly competitive, with numerous national, regional, and community banks vying for market share. United Security Bancshares must differentiate itself through superior customer service, specialized product offerings, or a deep understanding of the local market to maintain and grow its customer base. The bank's ability to navigate the regulatory environment and manage credit risk effectively will also be critical to its long-term success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
18.0%
Sector: 9.4%
+92% VS SCTR
Economic Moat Analysis
United Security Bancshares likely possesses a narrow economic moat, primarily derived from its established relationships and local market knowledge within its operating region. Community banks often benefit from strong ties to their local communities, fostering customer loyalty and reducing customer attrition. This localized presence creates a barrier to entry for larger national banks that may lack the same level of understanding and connection with the community.
The bank's focus on serving the business and professional community, as well as individuals in California, suggests a degree of specialization that can contribute to its competitive advantage. By tailoring its products and services to the specific needs of its target market, United Security Bancshares can build a reputation for expertise and reliability, further strengthening its customer relationships.
However, the bank's narrow moat is vulnerable to several factors. The increasing prevalence of online banking and fintech companies poses a threat to traditional community banks, as customers have more options for accessing financial services. Larger banks with greater resources can also invest more heavily in technology and marketing, potentially eroding United Security Bancshares' competitive edge.
Furthermore, the banking industry is subject to intense regulatory scrutiny, which can increase compliance costs and create challenges for smaller banks. United Security Bancshares must navigate these regulatory hurdles effectively to maintain its profitability and competitiveness. The bank's ability to adapt to changing market conditions and technological advancements will be crucial to preserving its narrow economic moat over the long term.
The absence of significant network effects, switching costs, or cost advantages further limits the strength of United Security Bancshares' moat. While customer relationships are valuable, they are not necessarily sticky, and customers can easily switch to competing banks if they offer better rates or services. The bank's size and scale also prevent it from achieving significant cost advantages compared to larger competitors.
Financial Health & Profitability
United Security Bancshares exhibits a mixed financial profile. The company's revenue has remained relatively stable over the past few years, hovering around $3 million annually. However, the net income and operating margins have shown significant fluctuations, indicating potential volatility in its earnings. The most recent TTM revenue is reported as $847,000, which seems inconsistent with prior quarterly and annual figures, raising concerns about data accuracy or a significant shift in the business. This discrepancy warrants further investigation.
The bank's profitability metrics, such as ROE (9.3%), are slightly above the sector average (8.5%), suggesting efficient use of equity. However, the extremely high operating margin (596.6%) and net margin (431.7%) compared to the sector averages (22.0% and 17.8%, respectively) are highly unusual and potentially indicative of accounting anomalies or one-time gains. These figures require careful scrutiny to determine their sustainability and underlying drivers.
The balance sheet appears relatively healthy, with total cash of $66.77 million and total debt of $9.14 million. The current ratio of 1.13 indicates sufficient liquidity to meet short-term obligations. However, the debt-to-equity ratio of 799.00 is significantly higher than the sector average of 115.00, raising concerns about leverage and financial risk. This high D/E ratio needs to be examined in the context of the bank's specific lending portfolio and risk management practices.
The quarterly financial history reveals a pattern of fluctuating net income and EPS, with no clear trend. The operating margins have consistently been exceptionally high, which is atypical for a community bank. The absence of free cash flow data in the quarterly reports makes it difficult to assess the bank's cash flow generation capabilities. Overall, the financial health of United Security Bancshares presents a complex picture, with strong profitability metrics offset by concerns about revenue consistency, high leverage, and potentially unsustainable margins. A thorough audit of the bank's financial statements is necessary to gain a clearer understanding of its true financial condition.
Valuation Assessment
United Security Bancshares' valuation appears stretched based on several key metrics. The company's P/E ratio of 43.7x is significantly higher than the sector average of 15.5x, indicating that investors are paying a premium for its earnings. Similarly, the EV/EBITDA multiple of 7.8x is more than double the sector average of 3.5x, suggesting that the company is overvalued relative to its earnings before interest, taxes, depreciation, and amortization.
Given the bank's relatively stable revenue growth and mixed financial performance, it is difficult to justify the high valuation multiples. While the company's ROE is slightly above the sector average, it does not warrant such a significant premium. The high operating and net margins, while impressive, may not be sustainable in the long term, further undermining the justification for the rich valuation.
The Hold rating assigned by the BCR proprietary quant model reflects the concerns about valuation. The value score of 53/100 suggests that the stock is not particularly cheap, while the momentum score of 51/100 indicates a lack of strong price appreciation or earnings revisions. The investment score of 26/100 raises concerns about the company's capital allocation and growth prospects, further supporting the argument that the stock is overvalued.
A discounted cash flow (DCF) analysis would be necessary to determine the intrinsic value of the stock more accurately. However, based on the available data, it is likely that the current market price exceeds the intrinsic value, suggesting that investors should exercise caution. A more favorable entry point may present itself if the stock price declines or if the company demonstrates sustained, above-average growth that justifies the premium valuation.
Risk & Uncertainty
United Security Bancshares faces several specific risks that could negatively impact its financial performance and stock price. One of the primary risks is credit risk, which arises from the possibility that borrowers may default on their loans. Given the bank's focus on commercial and industrial lending, as well as real estate mortgages, it is exposed to fluctuations in the business cycle and the real estate market. A downturn in the economy or a decline in property values could lead to increased loan losses and reduced profitability.
Another significant risk is regulatory risk. The banking industry is subject to extensive regulation, and changes in regulations could increase compliance costs and limit the bank's ability to generate revenue. For example, changes in capital requirements or lending restrictions could negatively impact the bank's financial performance. Furthermore, the bank is subject to regulatory oversight by various agencies, which could impose penalties or sanctions for non-compliance.
Competition from larger banks and fintech companies also poses a threat to United Security Bancshares. Larger banks have greater resources to invest in technology and marketing, which could erode the bank's competitive advantage. Fintech companies are disrupting the traditional banking industry by offering innovative financial products and services, which could attract customers away from community banks. The bank's ability to adapt to changing market conditions and technological advancements will be crucial to its long-term success.
Interest rate risk is another important consideration. Changes in interest rates can affect the bank's net interest income, which is the primary source of its revenue. A rise in interest rates could increase the cost of funds and reduce the demand for loans, while a decline in interest rates could compress the bank's net interest margin. The bank's ability to manage interest rate risk effectively will be critical to maintaining its profitability.
Bulls Say / Bears Say
The Bull Case
BULL VIEWUnited Security Bancshares' strong ties to the Central Valley community provide a stable customer base and a competitive advantage over larger, less personalized banks.
BULL VIEWThe bank's high operating and net margins demonstrate efficient management and a focus on profitability, suggesting potential for continued earnings growth.
BULL VIEWWith a solid cash position and relatively low debt, UBFO is well-positioned to capitalize on growth opportunities and navigate economic uncertainties.
The Bear Case
BEAR VIEWUnited Security Bancshares' significantly elevated P/E and EV/EBITDA multiples compared to sector peers indicate substantial overvaluation, limiting potential upside.
BEAR VIEWThe bank's high debt-to-equity ratio raises concerns about financial leverage and vulnerability to economic downturns, potentially impacting long-term stability.
BEAR VIEWInconsistent revenue figures and unusually high operating margins suggest potential accounting anomalies or unsustainable performance, warranting caution.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score UBFO and 4,400+ other equities.
UNITED SECURITY BANCSHARES exhibits a 1786% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
1.0%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
596.6%
Sector: 21.8%
Net Margin
Bottom-line profitability
431.7%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+113%
Income Projection audit
A $10,000 investment would generate approximately $527 annually in dividends at the current trailing rate.
