# EDGAR Filing Document

**Accession Number:** 0001137547
**File Stem:** 0001137547-26-000002
**Filing Date:** 2026-1
**Character Count:** 57020
**Document Hash:** 23f4046c6f78d808e487370d6abd276e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001137547-26-000002.hdr.sgml**: 20260122

**ACCESSION NUMBER**: 0001137547-26-000002

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20260122

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260122

**DATE AS OF CHANGE**: 20260122

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** UNITED SECURITY BANCSHARES
- **CENTRAL INDEX KEY:** 0001137547
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATIONAL COMMERCIAL BANKS [6021]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 912112732
- **STATE OF INCORPORATION:** CA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-32897
- **FILM NUMBER:** 26551729

**BUSINESS ADDRESS:**
- **STREET 1:** 2126 INYO STREET
- **CITY:** FRESNO
- **STATE:** CA
- **ZIP:** 93721
- **BUSINESS PHONE:** 5594906261

**MAIL ADDRESS:**
- **STREET 1:** 2126 INYO STREET
- **CITY:** FRESNO
- **STATE:** CA
- **ZIP:** 93721

?xml version='1.0' encoding='ASCII'? ubfo-20260122

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

**FORM 8-K**

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

January 22, 2026

Date of Report (Date of earliest event reported)

**UNITED SECURITY BANCSHARES**

(Exact Name of Registrant as Specified in its Charter)

California

(State or Other Jurisdiction of Incorporation)

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| | |
|:---|:---|
| 000-32987 | 91-2112732 |
| (Commission File Number) | (I.R.S. Employer Identification No.) |
| 2126 Inyo Street, Fresno, California | 93721 |
| (Address of principal executive offices) | (Zip Code) |

---

559-490-6261

(Registrant's Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☒ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered <br> <u>Common Stock, no par value</u> <u>UBFO</u> <u>NASDAQ</u>

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On January 22, 2026, United Security Bancshares (the "Company") issued a press release announcing results for the quarter and year ended December 31, 2025 (the "Press Release"). A copy of the Press Release is furnished as Exhibit 99.1 and is incorporated herein by reference.

The information in Item 2.02 of this Current Report on Form 8-K and the Press Release attached hereto as Exhibit 99.1 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

**Cautionary Note Regarding Forward-Looking Statements**

This Current Report on Form 8-K includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements often include words such as "believes," "expects," "anticipates," "estimates," "forecasts," "intends," "plans," "targets," "potentially," "probably," "projects," "outlook" or similar expressions or future or conditional verbs such as "may," "will," "should," "would," and "could," as well as the negative of such words. Forward-looking statements are not historical facts but instead represent management's current expectations and forecasts regarding future events, many of which are inherently uncertain and outside of our control. Actual results may differ, possibly materially, from those currently expected or projected in these forward-looking statements. In addition to factors disclosed in reports filed by CWBC and the Company with the SEC, risks and uncertainties for CWBC, the Company and the combined company that may cause actual results or outcomes to differ materially from those anticipated include, but are not limited to: (1) the possibility that any of the anticipated benefits of the proposed Merger will not be realized or will not be realized within the expected time period; (2) the risk that integration of the Company's operations with those of CWBC will be materially delayed or will be more costly or difficult than expected; (3) the parties' inability to meet expectations regarding the timing of the proposed Merger; (4) changes to tax legislation and their potential effects on the accounting for the Merger; (5) the inability to complete the proposed Merger due to the failure of the Company's shareholders to adopt the Merger Agreement, or the failure of CWBC's shareholders to adopt the Merger Agreement or to approve the issuance of CWBC's common stock in connection with the Merger; (6) the failure to satisfy other conditions to completion of the proposed Merger, including receipt of required regulatory and other approvals; (7) the failure of the proposed Merger to close for any other reason; (8) diversion of management's attention from ongoing business operations and opportunities due to the proposed Merger; (9) the challenges of integrating and retaining key employees; (10) the effect of the announcement of the proposed Merger on CWBC's, the Company's or the combined company's respective customer and employee relationships and operating results; (11) the possibility that the proposed Merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (12) the dilution caused by CWBC's issuance of additional shares of CWBC's common stock in connection with the Merger; and (13) changes in the global economy and financial market conditions and the business, results of operations and financial condition of CWBC, the Company and the combined company. Please refer to each of CWBC's and the Company's Annual Reports on Form 10-K for the year ended December 31, 2024, as well as CWBC's and the Company's other filings with the SEC, for a more detailed discussion of risks, uncertainties, and factors that could cause actual results to differ from those discussed in the forward-looking statements.

Any forward-looking statement included in this report is based only on information currently available to management and speaks only as of the date on which it is made. Neither CWBC nor the Company undertakes any obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

***Additional Information and Where to Find It***

CWBC will file a registration statement on Form S-4 with the SEC in connection with the proposed transaction. The registration statement will include a joint proxy statement of CWBC and the Company that also constitutes a prospectus of CWBC, which will be sent to the shareholders of CWBC and the Company. Before making any voting decision, the shareholders of CWBC and the Company are advised to read the joint proxy statement/prospectus when it becomes available because it will contain important information about CWBC, the Company, and the proposed transaction. When filed, this document and other documents relating to the Merger filed by CWBC can be obtained free of charge from the SEC's website at www.sec.gov. These documents can also be obtained free of charge by accessing CWBC's website at ir.communitywestbank.com under the tab "Financials" and on the Company's website at investors.unitedsecuritybank.com under the tab "Financials" and "SEC Filings." Alternatively, these documents, when available, can be obtained free of charge from CWBC upon written request to Community West Bancshares, Attn: Investor Relations, 7100 N. Financial Dr., Suite 101, Fresno, CA 93720, or by calling (916) 235-4617 or from the Company upon written request to United Security Bancshares,

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Attn: Investor Relations, 2126 Inyo St., Fresno, CA 93721, or by calling (559) 490-6261. The contents of the websites referenced above are not deemed to be incorporated by reference into the registration statement or the joint proxy statement/prospectus.

***Participants in the Solicitation***

This report does not constitute a solicitation of a proxy, an offer to purchase or a solicitation of an offer to sell any securities. CWBC, the Company, and certain of their directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from the shareholders of CWBC and the Company in connection with the proposed Merger under SEC rules. Information about the directors and executive officers of CWBC and the Company will be included in the joint proxy statement/prospectus for the proposed transaction filed with the SEC. These documents (when available) may be obtained free of charge in the manner described above under "Additional Information and Where to Find It."

Security holders may obtain information regarding the names, affiliations and interests of CWBC's directors and executive officers in the definitive proxy statement of CWBC relating to its 2025 Annual Meeting of Shareholders filed with the SEC on April 4, 2025, and in CWBC's Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 17, 2025. Security holders may obtain information regarding the names, affiliations and interests of the Company's directors and executive officers in the definitive proxy statement of the Company relating to its 2025 Annual Meeting of Shareholders filed with the SEC on April 7, 2025, and in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 20, 2025.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(d)&nbsp;&nbsp;&nbsp;&nbsp;Exhibits.

EXHIBIT #

99.1 <u>[Press release of United Security Bancshares dated](ubfoq42025earningsreleaseex.htm)[January 22, 2026](ubfoq42025earningsreleaseex.htm)</u>

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | | **United Security Bancshares** |
| Date: | January 22, 2026 | By: /s/ David A. Kinross |
|  |  | David A. Kinross |
|  |  | Senior Vice President and Chief Financial Officer |

---

## Ex-99

**United Security Bancshares Reports 2025 Net Income of $12.3 Million**

FRESNO, CA - January 22, 2026. **United Security Bancshares (Nasdaq: UBFO)** today announced its unaudited financial results for the quarter ended December 31, 2025. The Company reported net income of $12.3 million, or $0.70 per basic and diluted share, for the year ended December 31, 2025, compared to $14.8 million, or $0.85 per basic and diluted share, for the year ended December 31, 2024.

**Fourth Quarter 2025 Highlights** (as of, or for, the quarter ended December 31, 2025, except where noted):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ On December 16, 2025, the Company announced that it signed a definitive merger agreement with Community West Bancshares pursuant to which the companies will combine in an all-stock merger transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Net interest margin increased to 4.36% for the quarter ended December 31, 2025, compared to 4.22% for the quarter ended December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Annualized average cost of deposits was 0.99% for the quarter ended December 31, 2025, compared to 1.11% for the quarter ended December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Net income for the quarter increased 36.83% to $3.4 million, compared to $2.5 million for the quarter ended December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Loan interest and fees decreased 2.36% to $13.5 million, compared to $13.8 million for the fourth quarter of 2024, due primarily to reductions in loan balances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Interest income decreased 1.63% to $14.9 million, compared to $15.1 million for the fourth quarter of 2024, due to the decrease in loan and fee income and a decrease in investment securities income, partially offset by an increase in interest income on overnight investments held at the Federal Reserve.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Interest expense decreased 19.09% to $2.7 million, as a result of decreases in short-term borrowing costs and deposit interest expense, compared to $3.3 million for the fourth quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Noninterest income increased 1020.83% to $1.3 million, compared to $120,000 for the quarter ended December 31, 2024. This increase was primarily due to a change in the fair value of the junior subordinated debentures ("TruPS") of $946,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ On October 1, 2025, a partial redemption of $3.0 million was recorded on TruPS, leaving a remaining contractual balance of $6.0 million at December 31, 2025. The partial redemption resulted in a gain of $240,000, which was recorded in the income statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Following the partial redemption, the total fair value of TruPS, inclusive of a change in accrued interest of $49,000, changed by $49,000 during the quarter ended December 31, 2025. A loss of $49,000 was recorded through the income statement, and a gain of less than $1,000 was recorded through accumulated other comprehensive income. For the quarter ended December 31, 2024, the total fair value of TruPS, inclusive of a change in accrued interest of $49,000, changed by $189,000. A loss of $755,000 was recorded through the income statement, and a $566,000 gain, net of tax, was recorded through accumulated other comprehensive income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ The Company recorded a provision for credit losses of $468,000 for the quarter ended December 31, 2025, compared to $1.2 million for the quarter ended December 31, 2024. The decreased credit provision was due to a decrease in loan balances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Noninterest expense increased 18.55% to $8.8 million, compared to $7.4 million for the quarter ended December 31, 2024. This increase was due primarily to merger-related expenses and an increase in salaries and employee benefits expense and partially offset by decreases in professional fees and loan expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Annualized return on average assets (ROAA) increased to 1.12% for the quarter ended December 31, 2025, compared to 0.81% for the quarter ended December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Annualized return on average equity (ROAE) increased to 9.67% for the quarter ended December 31, 2025, compared to 7.47% for the quarter ended December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Total loans, net of unearned fees, decreased 1.40% to $915.4 million, compared to $928.5 million at December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Total deposits increased 2.95% to $1.09 billion, compared to $1.06 billion at December 31, 2024.

Dennis Woods, President and Chief Executive Officer, stated, "Our fourth quarter results reflect strong execution, highlighted by net income growth compared to the fourth quarter of 2024 and net interest margin (NIM) expansion to 4.36%. Effective deposit cost management as rates shifted in 2025 drove our fourth-quarter cost of deposits to a low of 0.99%, outpacing the decrease in loan yields and expanding our net interest margin. We enter 2026 with a robust loan pipeline and a $69.4 million increase in unfunded commitments compared to the end of 2024. Furthermore, our pending merger with Community West Bancshares remains on track to close in 2026, positioning us to scale our impact and deliver enhanced value to our customers, employees, and shareholders."

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**Results of Operations**

*Quarter Ended December 31, 2025:*

For the quarter ended December 31, 2025, the Company reported net income of $3.4 million and earnings per basic and diluted share of $0.19, compared to net income of $2.5 million and $0.14 per basic and diluted share for the quarter ended December 31, 2024. Net income for the quarter ended September 30, 2025, was $4.0 million and $0.23 per basic and diluted share. Net income for the quarter ended December 31, 2025, increased 36.83% when compared to the quarter ended December 31, 2024. The increase is primarily the result of decreases of $745,000 in the provision for credit losses, $324,000 in short-term borrowing expense, and $314,000 in deposit interest expense, partially offset by increases of $1.4 million in noninterest expense and $64,000 in income tax provision expense, and decreases of $325,000 in loan and fee income and $261,000 in investment income. Also included in the increase in income was the realization of a gain of $240,000 related to the partial redemption of $3.0 million in TruPS, and an offsetting loss of $49,000 due to changes in fair value of TruPS during the quarter. ROAE for the quarter ended December 31, 2025, was 9.67%, compared to 7.47% for the quarter ended December 31, 2024. ROAA was 1.12% for the quarter ended December 31, 2025, and 0.81% for the quarter ended December 31, 2024. The increase in both ratios was due primarily to the increase in income.

The annualized average cost of deposits was 0.99% for the quarter ended December 31, 2025, compared to 1.11% for the quarter ended December 31, 2024. Average interest-bearing deposits decreased 3.22% between the periods ended December 31, 2024, and 2025, from $684.5 million to $662.4 million, respectively. Included in interest-bearing deposits are purchased brokered deposits with an average balance of $79.4 million and an average rate of 4.09% for the quarter ended December 31, 2025. The Bank held purchased brokered deposits with an average balance of $100.0 million and an average rate of 4.91% during the quarter ended December 31, 2024. The annualized average cost of funds, which includes deposit and short-term borrowing costs, was 0.99% for the quarter ended December 31, 2025, compared to 1.17% for the quarter ended December 31, 2024. This decrease was due to decreases in short-term borrowings and decreases in rates paid on deposits.

Net interest income, before the provision for credit losses, was $12.2 million for the quarter ended December 31, 2025, representing a $391,000, or 3.31%, increase from the $11.8 million reported at December 31, 2024. The increase in net interest income was driven by increases in interest on overnight investments held at the Federal Reserve and decreases in interest expense on short-term borrowings and deposits, offset by decreases in loan-interest income and investment securities interest income. The Company's net interest margin of 4.36% for the quarter ended December 31, 2025, increased from 4.22% for the quarter ended December 31, 2024. The net interest margin increased due to decreases in interest rates on interest-bearing deposits, short-term borrowings, and TruPS outpacing decreases in interest rates on loan yields, investment securities, and overnight investments held at the Federal Reserve. While yields on interest-earning assets decreased from 5.41% to 5.33% between the two periods, including a decrease in loan yields from 5.84% to 5.80%, the cost of interest-bearing liabilities decreased from 1.86% to 1.60%. Net interest income for the quarter ended December 31, 2025, before the provision for credit losses, decreased $224,000 from the $12.4 million reported for the quarter ended September 30, 2025. This was primarily due to decreases in loan and fee income and investment securities income, offset by increases in income on overnight investments held at the Federal Reserve, and decreases in short-term borrowing expense and deposit interest expense.

Noninterest income for the quarter ended December 31, 2025, totaled $1.3 million, an increase of $1.2 million from the $120,000 in noninterest income reported for the quarter ended December 31, 2024. The increase is primarily attributed to a net gain of $191,000 recorded on the fair value of TruPS for the quarter ended December 31, 2025, compared to a recorded loss of $755,000 for the quarter ended December 31, 2024. The change in the value of TruPS reflected in noninterest income was caused by the net gain realized on the partial redemption of TruPS and fluctuations in the Secured Overnight Financing Rate (SOFR). Noninterest income decreased $273,000 from the $1.6 million reported for the quarter ended September 30, 2025. This was primarily due to a decrease in customer service fees of $104,000 for the quarter ended December 31, 2025 as well as a decrease in other noninterest income of $139,000.

Noninterest expense for the quarter ended December 31, 2025, totaled $8.8 million, reflecting a $1.4 million increase over the $7.4 million reported for the quarter ended December 31, 2024. The increase between the quarters ended December 31, 2025, and 2024, resulted primarily from $674,000 in merger-related expenses and an increase of $696,000 in salaries and employee benefit expenses, partially offset by a decrease in professional fees of $196,000. Salaries and employee benefits increased primarily due to increases of $428,000 in group insurance costs and $184,000 in employee salary expense. Noninterest expense for the quarter ended December 31, 2025, increased $1.4 million from the $7.4 million reported for the quarter ended September 30, 2025. This was due primarily to the $674,000 in merger-related expenses and an increase of $547,000 in salaries and employee benefits expense.

The efficiency ratio for the quarter ended December 31, 2025, increased to 65.09%, compared to 60.79% for the quarter ended December 31, 2024. This deterioration was due to increases in noninterest expense outpacing increases in noninterest income and net interest income. Noninterest expense increased due to merger-related expenses and increases in salaries and employee

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benefits. Net interest income increased due to decreases in deposit interest expense and short-term borrowings and noninterest income increased due to the change recorded on the fair value of TruPS.

The Company recorded an income tax provision of $850,000 for the quarter ended December 31, 2025, compared to $786,000 for the quarter ended December 31, 2024. The effective tax rate for the quarter ended December 31, 2025, was 19.93%, compared to 23.96% and 28.86% for the quarters ended December 31, 2024, and September 30, 2025, respectively.

*Twelve Months Ended December 31, 2025:*

For the year ended December 31, 2025, the Company reported net income of $12.3 million and earnings per basic and diluted share of $0.70, compared to net income of $14.8 million and $0.85 per basic and diluted share for the year ended December 31, 2024. Net income for the year ended December 31, 2025, decreased $2.5 million, or 16.88% when compared to the year ended December 31, 2024. The decrease is primarily the result of increases of $2.6 million in the provision for credit losses, $1.7 million in deposit interest expense, and $3.3 million in noninterest expense, partially offset by decreases of $3.6 million in short-term borrowing expense and $1.1 million in the income tax provision, and increases of $1.0 million on the fair value of TruPS and $190,000 in loan and fee income. ROAE for the year ended December 31, 2025, was 9.02%, compared to 11.52% for the year ended December 31, 2024. ROAA was 1.01% for the year ended December 31, 2025, compared to 1.22% for the year ended December 31, 2024. The decrease in both ratios was due primarily to the decrease in net income between the two periods.

The annualized average cost of deposits was 1.08% for the year ended December 31, 2025, compared to 0.96% for the year ended December 31, 2024. Average interest-bearing deposits increased 6.0% between the periods ended December 31, 2024, and 2025, from $639.7 million to $678.4 million, respectively. Interest-bearing deposits include purchased brokered deposits with an average balance of $94.8 million for the year ended December 31, 2025, and $47.3 million for the year ended December 31, 2024. The average rate paid for brokered deposits for the year ended December 31, 2025, was 4.43%, compared to 5.55% for the year ended December 31, 2024. The annualized average cost of funds was 1.09% for the year ended December 31, 2025, compared to 1.23% for the year ended December 31, 2024. This decrease was due to decreases in short-term borrowings and short-term borrowing rates, partially offset by increases in rates paid on deposits.

Net interest income before the provision for credit losses was $48.8 million for the year ended December 31, 2025, representing a $1.9 million, or 4.10%, increase from the $46.9 million reported at December 31, 2024. The increase in net interest income was driven by increases in loan-interest income, increases in income on overnight deposits held at the Federal Reserve, and decreases in interest expense on short-term borrowings. This increase was offset by increases in interest expense on deposits. Also included in the increase in net interest income for the year ended December 31, 2025, was an $890,000 interest payment related to a nonaccrual loan payoff. The Company's net interest margin of 4.41% for the year ended December 31, 2025, increased from 4.26% for the year ended December 31, 2024. The increase in the net interest margin is primarily due to decreases in yields on interest-bearing liabilities outpacing decreases in yields on interest-earning assets. While yields on interest-earning assets decreased to 5.50% from 5.52% between the two periods, yields on interest-bearing liabilities decreased to 1.74% from 1.95%. Loan yields decreased from 5.97% to 5.95% between the two periods, and deposit yields increased from 1.50% to 1.67%, due primarily to higher yields on purchased brokered deposits. Interest-bearing liabilities include interest-bearing deposits, short-term borrowings, and TruPS.

Noninterest income for the year ended December 31, 2025, totaled $5.1 million, increasing $373,000 from the $4.7 million in noninterest income reported for the year ended December 31, 2024. This increase is primarily the result of a change in the fair value of TruPS. A gain of $391,000 was recorded on the fair value of TruPS for the year ended December 31, 2025, compared to a loss of $614,000 recorded for the year ended December 31, 2024. The change in the value of TruPS reflected in noninterest income was caused by fluctuations in the Secured Overnight Financing Rate (SOFR). Included in the change in fair value of TruPS as of December 31, 2025, was a realized gain of $481,000 related to the partial redemption of $6.0 million of the TruPS contractual balance. This increase was partially offset by a $573,000 gain on proceeds from life insurance realized during the year ended December 31, 2024.

Noninterest expense for the year ended December 31, 2025, totaled $31.6 million, reflecting a $3.3 million increase over the $28.3 million reported for the year ended December 31, 2024. The increase between the two periods resulted partially from increases of $1.7 million in salaries and employee benefit expenses, $509,000 in data processing expenses, and $435,000 in other noninterest expense as well as merger expenses totaling $674,000. Salaries and employee benefits increased primarily due to increases of $982,000 in group insurance costs and $526,000 in employee salaries. Data processing expenses increased due to increases in core processing expenses. Other noninterest expenses increased primarily due to a $441,000 increase in OREO expense.

The efficiency ratio for the year ended December 31, 2025, increased to 58.76%, compared to 54.82% for the year ended December 31, 2024. This deterioration was due to increases in noninterest expense outpacing increases in noninterest income and net interest income.

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The Company recorded an income tax provision of $4.4 million for the year ended December 31, 2025, compared to $5.5 million for the year ended December 31, 2024. The effective tax rate for the year ended December 31, 2025, was 26.40%, compared to 27.20% for the year ended December 31, 2024.

**Balance Sheet Review**

Total assets increased $36.6 million, or 3.02%, between December 31, 2024, and December 31, 2025. Gross loan balances decreased $12.7 million, investment securities decreased $17.5 million, and total cash and cash equivalents increased $64.7 million. Included in the decrease in gross loan balances are decreases of $17.5 million in commercial and industrial loans and $5.7 million in installment loans, partially offset by increases of $7.7 million in real estate construction and development loans, $2.4 million in agricultural loans, and $47,000 in real estate mortgage loans. Declines in the investment portfolio were primarily the result of calls on, and maturities of, four corporate securities with book values totaling $14.3 million, partially offset by a $5.4 million decrease in unrealized losses on investment securities. Unfunded loan commitments increased from $204.0 million at December 31, 2024, to $273.4 million at December 31, 2025. OREO balances increased from $4.6 million at December 31, 2024, to $8.2 million at December 31, 2025. This increase was due to a foreclosure on nonaccrual loans, resulting in the transfer of $3.3 million to OREO.

Total deposits increased $31.2 million, or 2.95%, to $1.09 billion during the year ended December 31, 2025. This was due to increases of $61.7 million in noninterest-bearing deposits, offset by decreases of $30.6 million in interest-bearing deposits. Included in interest-bearing deposits at December 31, 2025, and December 31, 2024, were brokered DDA accounts totaling $75.2 million and $100.3 million, respectively. The average rate paid for brokered deposits for the quarter ended December 31, 2025, was 4.09%. NOW and money market accounts decreased $32.3 million, time deposits decreased $1.6 million, and savings accounts increased $3.3 million. In total, NOW, money market, and savings accounts decreased 4.69% to $590.1 million at December 31, 2025, compared to $619.1 million at December 31, 2024. Noninterest-bearing deposits increased 17.14% to $421.9 million at December 31, 2025, compared to $360.2 million at December 31, 2024. Core deposits, which are comprised of noninterest-bearing deposits, NOW, money market, savings accounts, and time deposits less than $250,000, increased $55.7 million. Purchased brokered deposits are not included in core deposits.

Shareholders' equity at December 31, 2025, totaled $139.7 million, an increase of $9.3 million from the $130.4 million reported at December 31, 2024. The increase in equity was the result of $12.3 million in net income and a decrease of $4.5 million in accumulated other comprehensive loss, partially offset by $8.4 million in dividend payments. At December 31, 2025, the accumulated other comprehensive loss, net of tax totaled $9.9 million, compared to $14.4 million at December 31, 2024. The decrease in accumulated other comprehensive loss, net of tax, was primarily the result of a decrease of $5.4 million in unrealized losses, net of tax, on investment securities, offset by a decrease in the gain in OCI recorded on TruPS of $935,000, caused by market rate fluctuations and the partial redemption of $6.0 million of the contractual balance of TruPS. Changes in unrealized losses on the investment portfolio are attributed to changes in interest rates, not credit quality. The Company does not intend to sell, and it is more likely than not that it will not be required to sell, any securities held at an unrealized loss. On July 1, 2025, and October 1, 2025, the Company made partial redemptions of $3.0 million each on the contractual balance of TruPS, recognizing gains of $241,000 and $240,000, respectively. At December 31, 2025, the contractual balance of TruPS totaled $6.0 million.

The Board of Directors of United Security Bancshares declared a cash dividend on common stock of $0.12 per share on December 16, 2025. The dividend was paid on January 13, 2026, to shareholders of record as of December 26, 2025, and is included in other liabilities as of December 31, 2025. No assurances can be provided as to the amount and/or declaration and payment of future dividends, if any. The Company continues to be well-capitalized and expects to maintain adequate capital levels.

**Credit Quality**

The Company recorded a provision for credit losses of $5.6 million for the year ended December 31, 2025, compared to a provision of $3.0 million for the year ended December 31, 2024. The provisions recorded during 2025 and 2024 were primarily driven by deterioration within the student loan portfolio. Net loan charge-offs totaled $6.1 million for the year ended December 31, 2025, compared to $2.6 million for the year ended December 31, 2024.

The Company's allowance for credit losses totaled 1.62% of the loan portfolio at December 31, 2025, compared to 1.72% at December 31, 2024. Management considers the allowance for credit losses at December 31, 2025, to be adequate.

Non-performing assets, comprised of nonaccrual loans, other real estate owned through foreclosure (OREO), and loans more than 90 days past due and still accruing interest, decreased $3.3 million between December 31, 2024, and December 31, 2025,

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to $13.9 million. As a percentage of total assets, non-performing assets decreased from 1.42% at December 31, 2024, to 1.12% at December 31, 2025. The decrease in non-performing assets is primarily attributed to a decrease of $6.5 million in nonaccrual loans, partially offset by an increase of $3.6 million in OREO balances. During the first quarter of 2025, the Bank foreclosed on nonaccrual loans totaling $3.3 million and transferred the amount to OREO. Also included in the decrease in nonaccrual loans for the year ended December 31, 2025, was the payoff of a nonaccrual loan with a principal balance of $3.2 million, nonaccrual interest recognized of $890,000, and recovery of loan-related expenses of $168,000.

**About United Security Bancshares**

United Security Bancshares (NASDAQ: UBFO) is the holding company for United Security Bank, which was founded in 1987. United Security Bank is headquartered in Fresno and operates 13 full-service branch offices in Fresno, Bakersfield, Campbell, Caruthers, Coalinga, Firebaugh, Fowler, Mendota, Oakhurst, San Joaquin, and Taft, California. Additionally, United Security Bank operates Commercial Real Estate Construction, Commercial Lending, and Consumer Lending departments. For more information, please visit <u>www.unitedsecuritybank.com.</u>

**Additional Information about the Proposed Transaction and Where to Find It**

Investors and security holders are urged to carefully review and consider each of Community West Bancshares' and United Security Bancshares' public filings with the Securities Exchange Commission ("SEC"), including but not limited to their respective Annual Reports on Form 10-K, their Proxy Statements, Current Reports on Form 8-K and Quarterly Reports on Form 10-Q.

Community West Bancshares documents filed with the SEC may be obtained free of charge at Community West Bank's website at www.communitywestbank.com, at the SEC's website at www.sec.gov, requesting them in writing to Community West Bancshares, 7100 N. Financial Drive, Suite 101, Fresno, California 93720; Attention: Investor Relations, or by telephone at (916) 235-4617. United Security Bancshares documents filed with the SEC may be obtained free of charge at United Security Bank's website at www.unitedsecuritybank.com, at the SEC's website at www.sec.gov, by requesting them in writing to United Security Bancshares, 2126 Inyo Street, Fresno, California 93721; Attention: Investor Relations, or by telephone at (559)490-6261.

Community West Bancshares intends to file a registration statement on Form S-4 with the SEC which will include a joint proxy statement/prospectus which will be distributed to the shareholders of Community West Bancshares and United Security Bancshares in connection with their vote on the proposed merger. Before making any voting or investment decision, investors and security holders of Community West Bancshares and United Security Bancshares are urged to carefully read the entire joint proxy statement/prospectus when it becomes available, as well as any amendments or supplements thereto, because it will contain important information about the proposed merger. Investors and security holders will be able to obtain the joint proxy statement/prospectus free of charge from the SEC's website or from Community West Bancshares and United Security Bancshares by writing to the addresses provided in the paragraph above.

The directors, executive officers and certain other members of management and employees at Community West Bancshares and United Security Bancshares may be deemed participants in the solicitation of proxies in favor of the merger from their respective shareholders. Information about the directors and executive officers of Community West Bancshares is included in the proxy statement for its 2025 Annual Meeting of Shareholders, which was filed with the SEC on April 4, 2025 and in its Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on March 17, 2025. Information about the directors and executive officers of United Security Bancshares is included in the proxy statement for its 2025 Annual Meeting of Shareholders, which was filed with the SEC on April 7, 2025 and its Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on March 20, 2025.

**Forward-Looking Statements** 

This press release contains certain forward-looking information about Community West Bancshares, United Security Bancshares, and the combined company after the close of the merger and is intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Such statements involve inherent risks, uncertainties, and contingencies, many of which are difficult to predict and are generally beyond the control of Community West Bancshares, United Security Bancshares and the combined company. Community West Bancshares and United Security Bancshares caution readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. In addition to factors previously disclosed in reports filed by Community West Bancshares and United Security Bancshares with the SEC, risks and uncertainties for each institution and the combined

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institution include, but are not limited to the ability to complete the merger; government approval may not be obtained or adverse regulatory conditions may be imposed in connection with governmental approvals of the merger; approval by the shareholders of Community West Bancshares or United Security Bancshares may not be obtained; the successful integration of United Security Bancshares, or achieving expected beneficial synergies and/or operating efficiencies, in each case might not be obtained within expected time-frames or at all; the possibility that personnel changes/retention will not proceed as planned; changes in real estate markets and general economic conditions, either nationally or locally in the areas in which United Securities Bancshares conducts business; the impact on financial markets from geopolitical conflicts; inflation, interest rate, market and monetary fluctuations; increases in competitive pressures among financial institutions and businesses offering similar products and services; higher than anticipated defaults in United Securities Bancshares' loan portfolio; changes in management's estimate of the adequacy of the allowance for credit losses; legislative or regulatory changes or changes in accounting principles, policies or guidelines; and other risk factors described in documents filed by Community West Bancshares and United Security Bancshares with the SEC. All forward-looking statements included in this press release are based on information available at the time of the communication. Pro forma, projected and estimated numbers are used for illustrative purposes only and are not forecasts, and actual results may differ materially. Community West Bancshares and United Security Bancshares are under no obligation to (and expressly disclaim any such obligation to) update or alter any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.

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| | | |
|:---|:---|:---|
| **United Security Bancshares**<br>**Consolidated Balance Sheets (unaudited)**<br>*(In thousands, except share data)* |<br>**December 31, 2025** |<br>**December 31, 2024** |
| **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $120955 | $56211 |
| &nbsp;&nbsp;&nbsp;Investment securities (at fair value) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Available-for-sale (AFS) debt securities net of allowance for credit losses of $0 (amortized cost of $154,517 and $179,753, respectively) | 139823 | 157382 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketable equity securities | 3432 | 3326 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investment securities | 143255 | 160708 |
| &nbsp;&nbsp;&nbsp;Loans | 917528 | 930244 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unearned fees and unamortized loan origination costs - net | (2101) | (1782) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for credit losses | (14838) | (16046) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loans | 900589 | 912416 |
| &nbsp;&nbsp;&nbsp;Premises and equipment - net | 9434 | 8668 |
| &nbsp;&nbsp;&nbsp;Accrued interest receivable | 7160 | 8104 |
| &nbsp;&nbsp;&nbsp;Other real estate owned (OREO) | 8185 | 4582 |
| &nbsp;&nbsp;&nbsp;Goodwill | 4488 | 4488 |
| &nbsp;&nbsp;&nbsp;Deferred tax assets - net | 12076 | 14419 |
| &nbsp;&nbsp;&nbsp;Cash surrender value of life insurance - net | 21253 | 20692 |
| &nbsp;&nbsp;&nbsp;Investment in limited partnerships | 4275 | 4275 |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 3190 | 3069 |
| &nbsp;&nbsp;&nbsp;Other assets | 13453 | 14086 |
| **Total assets** | $1248313 | $1211718 |
| **Liabilities and Shareholders' Equity** |  |  |
| &nbsp;&nbsp;&nbsp;Deposits |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noninterest-bearing | $421897 | $360152 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing | 666883 | 697470 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 1088780 | 1057622 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities | 3355 | 3161 |
| &nbsp;&nbsp;&nbsp;Other liabilities | 10199 | 9001 |
| &nbsp;&nbsp;&nbsp;Junior subordinated debentures (TruPS) (at fair value) | 6296 | 11572 |
| **Total liabilities** | 1108630 | 1081356 |
| **Shareholders' Equity** |  |  |
| &nbsp;&nbsp;Common stock, no par value; 20,000,000 shares authorized; issued and outstanding: 17,582,116 at December 31, 2025 and 17,364,894 at December 31, 2024 | 62236 | 61267 |
| &nbsp;&nbsp;&nbsp;Retained earnings | 87324 | 83447 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss, net of tax | (9877) | (14352) |
| **Total shareholders' equity** | 139683 | 130362 |
| **Total liabilities and shareholders' equity** | $1248313 | $1211718 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| **United Security Bancshares**<br>**Consolidated Statements of Income (unaudited)**<br>*(In thousands, except share and per-share data)* | **December 31, 2025** | **September 30, 2025** | **December 31, 2024** | **December 31, 2025** | **December 31, 2024** |
| **Interest Income:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest and fees on loans | $13453 | $14266 | $13778 | $55426 | $55236 |
| &nbsp;&nbsp;&nbsp;Interest on investment securities | 994 | 1040 | 1255 | 4380 | 5209 |
| &nbsp;&nbsp;&nbsp;Interest on deposits at other banks | 452 | 320 | 113 | 1006 | 306 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest income | 14899 | 15626 | 15146 | 60812 | 60751 |
| **Interest Expense:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest on deposits | 2619 | 3045 | 2933 | 11313 | 9578 |
| &nbsp;&nbsp;&nbsp;Interest on other borrowed funds | 85 | 162 | 409 | 728 | 4323 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | 2704 | 3207 | 3342 | 12041 | 13901 |
| **Net Interest Income** | 12195 | 12419 | 11804 | 48771 | 46850 |
| **Provision for Credit Losses** | 468 | 948 | 1213 | 5574 | 2963 |
| **Net Interest Income after Provision for Credit Losses** | 11727 | 11471 | 10591 | 43197 | 43887 |
| **Noninterest Income:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Customer service fees | 743 | 847 | 775 | 2954 | 2918 |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase in cash surrender value of bank-owned life insurance | 161 | 135 | 151 | 561 | 551 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on proceeds from bank-owned life insurance |  |  |  |  | 573 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain (loss) on fair value and partial redemption of junior subordinated debentures (TruPS) | 191 | 247 | (755) | 391 | (614) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 250 | 389 | (51) | 1180 | 1285 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noninterest income | 1345 | 1618 | 120 | 5086 | 4713 |
| **Noninterest Expense:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Salaries and employee benefits | 4166 | 3619 | 3470 | 15557 | 13884 |
| &nbsp;&nbsp;&nbsp;&nbsp;Occupancy expense | 971 | 997 | 955 | 3863 | 3686 |
| &nbsp;&nbsp;&nbsp;&nbsp;Data processing expense | 403 | 414 | 338 | 1623 | 1114 |
| &nbsp;&nbsp;&nbsp;&nbsp;Technology expense | 724 | 704 | 663 | 2766 | 2680 |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional fees | 316 | 331 | 512 | 1643 | 1716 |
| &nbsp;&nbsp;&nbsp;&nbsp;Merger-related expenses | 674 |  |  | 674 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loan-related expenses | 99 | 110 | 225 | 343 | 861 |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory assessments | 179 | 176 | 204 | 698 | 697 |
| &nbsp;&nbsp;&nbsp;&nbsp;Director fees | 199 | 190 | 100 | 780 | 436 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 1077 | 893 | 963 | 3641 | 3206 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noninterest expense | 8808 | 7434 | 7430 | 31588 | 28280 |
| **Income Before Provision for Taxes** | 4264 | 5655 | 3281 | 16695 | 20320 |
| **Provision for Income Taxes** | 850 | 1632 | 786 | 4407 | 5537 |
| **Net Income** | $3414 | $4023 | $2495 | $12288 | $14783 |
| **Net income per common share** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $0.19 | $0.23 | $0.14 | $0.70 | $0.85 |
| &nbsp;&nbsp;&nbsp;Diluted | $0.19 | $0.23 | $0.14 | $0.70 | $0.85 |
| **Weighted average common shares outstanding** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 17260401 | 17483334 | 17202166 | 17241750 | 17188384 |
| &nbsp;&nbsp;&nbsp;Diluted | 17269442 | 17488826 | 17207228 | 17246496 | 17190805 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| **United Security Bancshares**<br>**Average Balances and Rates (unaudited)**<br>*(In thousands)* | **December 31, 2025** | **September 30, 2025** | **December 31, 2024** | **December 31, 2025** | **December 31, 2024** |
| **Average Balances:** |  |  |  |  |  |
| Loans (1) | $920181 | $956832 | $939110 | $931247 | $925993 |
| Investment securities | 144206 | 147049 | 165214 | 151550 | 168740 |
| Interest-bearing deposits in other banks | 45009 | 29172 | 9677 | 23860 | 5901 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-earning assets | 1109396 | 1133053 | 1114001 | 1106657 | 1100634 |
| Allowance for credit losses | (16234) | (15953) | (16457) | (15872) | (15727) |
| Nonaccrual loans | 5698 | 5685 | 12052 | 6250 | 11906 |
| Cash and non-interest-bearing deposits in other banks | 32030 | 32320 | 34403 | 32743 | 33457 |
| Other real estate owned | 7876 | 7852 | 4582 | 7648 | 4582 |
| Other non-earning assets | 75374 | 75230 | 75916 | 75511 | 76132 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total average assets | $1214140 | $1238187 | $1224497 | $1212937 | $1210984 |
| Interest-bearing deposits | $662425 | $689444 | $684485 | $678414 | $639727 |
| Junior subordinated debentures (TruPS) | 6464 | 9464 | 12464 | 10196 | 12464 |
| Short-term borrowings |  | 2364 | 16928 | 3296 | 62212 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 668889 | 701272 | 713877 | 691906 | 714403 |
| Noninterest-bearing deposits | 391046 | 387108 | 366609 | 371859 | 358212 |
| Other liabilities | 14211 | 13104 | 11091 | 12909 | 10065 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 1074146 | 1101484 | 1091577 | 1076674 | 1082680 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total equity | 139994 | 136703 | 132920 | 136263 | 128304 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and equity | $1214140 | $1238187 | $1224497 | $1212937 | $1210984 |
| **Average Rates:** |  |  |  |  |  |
| Loans (1) | 5.80% | 5.92% | 5.84% | 5.95% | 5.97% |
| Investment securities | 2.73% | 2.81% | 3.02% | 2.89% | 3.09% |
| Interest-bearing deposits in other banks | 3.98% | 4.35% | 4.65% | 4.22% | 5.19% |
| Total earning assets | 5.33% | 5.47% | 5.41% | 5.50% | 5.52% |
| Interest-bearing deposits | 1.57% | 1.75% | 1.71% | 1.67% | 1.50% |
| Total deposits | 0.99% | 1.12% | 1.11% | 1.08% | 0.96% |
| Short-term borrowings | —% | 4.70% | 5.17% | 4.70% | 5.64% |
| Junior subordinated debentures (TruPS) | 5.22% | 5.62% | 6.00% | 5.62% | 6.55% |
| Total interest-bearing liabilities | 1.60% | 1.81% | 1.86% | 1.74% | 1.95% |
| Net interest margin (2) | 4.36% | 4.35% | 4.22% | 4.41% | 4.26% |

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(1) Average loans do not include nonaccrual loans but do include interest income recovered from previously charged-off loans, unearned fees, and unamortized loan origination costs.

(2) Net interest margin is computed by dividing annualized net interest income by average interest-earning assets.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **United Security Bancshares** | **United Security Bancshares** | | | | |
| **Condensed - Consolidated Balance Sheets (unaudited)** | **Condensed - Consolidated Balance Sheets (unaudited)** | **Condensed - Consolidated Balance Sheets (unaudited)** | **Condensed - Consolidated Balance Sheets (unaudited)** | | |
| *(In thousands)* | **December 31, 2025** | **September 30, 2025** | **June 30, 2025** |<br>**March 31, 2025** |<br>**December 31, 2024** |
| Cash and cash equivalents | $120955 | $66767 | $49091 | $37894 | $56211 |
| Investment securities | 143255 | 144342 | 150423 | 160534 | 160708 |
| Loans, net of unearned fees and unamortized loan origination costs | 915427 | 958348 | 947329 | 920653 | 928462 |
| &nbsp;&nbsp;&nbsp;Allowance for credit losses | (14838) | (16235) | (15965) | (15356) | (16046) |
| Net loans | 900589 | 942113 | 931364 | 905297 | 912416 |
| Other assets | 83514 | 82398 | 83259 | 88066 | 82383 |
| Total assets | $1248313 | $1235620 | $1214137 | $1191791 | $1211718 |
| Non-interest-bearing deposits | $421897 | $384367 | $372027 | $359135 | $360152 |
| Interest-bearing deposits | 666883 | 691533 | 683642 | 667078 | 697470 |
| Total deposits | 1088780 | 1075900 | 1055669 | 1026213 | 1057622 |
| Other liabilities | 19850 | 22338 | 24214 | 32702 | 23734 |
| Total liabilities | 1108630 | 1098238 | 1079883 | 1058915 | 1081356 |
| Total shareholders' equity | 139683 | 137382 | 134254 | 132876 | 130362 |
| Total liabilities and shareholders' equity | $1248313 | $1235620 | $1214137 | $1191791 | $1211718 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **United Security Bancshares** | **United Security Bancshares** | | | | |
| **Condensed - Consolidated Statements of Income (unaudited)** | **Condensed - Consolidated Statements of Income (unaudited)** | **Condensed - Consolidated Statements of Income (unaudited)** | **Condensed - Consolidated Statements of Income (unaudited)** | | |
| | **For the Quarters Ended:** | **For the Quarters Ended:** | **For the Quarters Ended:** | **For the Quarters Ended:** | **For the Quarters Ended:** |
| *(In thousands)* | **December 31, 2025** | **September 30, 2025** | **June 30, 2025** | **March 31, 2025** | **December 31, 2024** |
| &nbsp;&nbsp;&nbsp;Total interest income | $14899 | $15626 | $15004 | $15283 | $15146 |
| &nbsp;&nbsp;&nbsp;Total interest expense | 2704 | 3207 | 3141 | 2987 | 3342 |
| Net interest income | 12195 | 12419 | 11863 | 12296 | 11804 |
| &nbsp;&nbsp;&nbsp;Provision for credit losses | 468 | 948 | 1858 | 2300 | 1213 |
| Net interest income after provision for credit losses | 11727 | 11471 | 10005 | 9996 | 10591 |
| &nbsp;&nbsp;&nbsp;Total non-interest income | 1345 | 1618 | 758 | 1360 | 120 |
| &nbsp;&nbsp;&nbsp;Total non-interest expense | 8808 | 7434 | 7739 | 7604 | 7430 |
| Income before provision for taxes | 4264 | 5655 | 3024 | 3752 | 3281 |
| &nbsp;&nbsp;&nbsp;Provision for income taxes | 850 | 1632 | 855 | 1070 | 786 |
| Net income | $3414 | $4023 | $2169 | $2682 | $2495 |

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| | | |
|:---|:---|:---|
| **United Security Bancshares**<br>**Nonperforming Assets (unaudited)**<br>*(Dollars in thousands)* |<br>**December 31, 2025** |<br>**December 31, 2024** |
| Real estate - construction and development | $5685 | $12198 |
| Installment and student loans | 37 |  |
| &nbsp;&nbsp;&nbsp;Total nonaccrual loans | 5722 | 12198 |
| Loans past due 90 days and still accruing |  | 421 |
| &nbsp;&nbsp;&nbsp;Total nonperforming loans | 5722 | 12619 |
| Other real estate owned | 8185 | 4582 |
| &nbsp;&nbsp;&nbsp;Total nonperforming assets | $13907 | $17201 |
| Nonperforming loans to total gross loans | 0.63% | 1.36% |
| Nonperforming assets to total assets | 1.12% | 1.42% |
| Allowance for credit losses to nonperforming loans | 258.68% | 127.16% |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| **United Security Bancshares**<br>**Selected Financial Data (unaudited)**<br> | **2025** | **2024** | **2025** | **2024** |
| Return on average assets | 1.12% | 0.81% | 1.01% | 1.22% |
| Return on average equity | 9.67% | 7.47% | 9.02% | 11.52% |
| Efficiency ratio (1) | 65.09% | 60.79% | 58.76% | 54.82% |
| Annualized net charge-offs to average loans | 0.63% | 0.57% | 0.66% | 0.28% |
|  |  |  | **December 31, 2025** | **December 31, 2024** |
| Shares outstanding - period end |  |  | 17582116 | 17364894 |
| Book value per share |  |  | $7.94 | $7.51 |
| Tangible book value per share (2) |  |  | $7.69 | $7.25 |
| Loan-to-deposit ratio |  |  | 84.08% | 87.79% |
| Allowance for credit losses to total loans |  |  | 1.62% | 1.72% |
| Tier 1 capital to adjusted average assets (leverage ratio): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Company |  |  | 12.56% | 12.57% |
| &nbsp;&nbsp;&nbsp;&nbsp;Bank |  |  | 12.40% | 12.59% |

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(1) Efficiency ratio is total noninterest expense divided by net interest income before provision for credit losses plus total noninterest income.

(2) This is a non-GAAP Measure.

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