United Security Bancshares operates as the bank holding company for United Security Bank that provides a full range of commercial banking services.
The bank operates branches (including its main office), one construction lending office, and commercial lending office in Fresno, California and branch each in Oakhurst, Caruthers, San Joaquin, Firebaugh, Coalinga, Bakersfield, Taft, Campbell, and Mendota California. The bank has Interactive Teller Machines (ITMs) at all branch locations and off-sit...
United Security Bancshares operates as the bank holding company for United Security Bank that provides a full range of commercial banking services.
The bank operates branches (including its main office), one construction lending office, and commercial lending office in Fresno, California and branch each in Oakhurst, Caruthers, San Joaquin, Firebaugh, Coalinga, Bakersfield, Taft, Campbell, and Mendota California. The bank has Interactive Teller Machines (ITMs) at all branch locations and off-site ITMs at non-branch locations.
Bank Services
The bank offers services primarily to the business and professional community and individuals located in Fresno, Madera, Kern, and Santa Clara counties, including a variety of deposit instruments including personal and business checking accounts and savings accounts, interest-bearing negotiable order of withdrawal (NOW) accounts, money market accounts, and time certificates of deposit. Most deposits are comprised of accounts from individuals and from small- and medium-sized, business-related sources.
The bank also offers a full complement of lending products, including real estate loans, real estate construction loans, commercial and industrial loans, agricultural loans, and installment loans.
Real estate mortgage loans are secured by deeds of trust primarily on commercial property. The repayment of real estate mortgage loans generally is from the cash flow of the borrower. Commercial and industrial loans are diversified by industry. Loans may be originated in the bank’s market area, purchased, or participated with other financial institutions outside the market area. A substantial portion of commercial and industrial loans are secured by accounts receivable, inventory, leases, or other collateral. The remainder are unsecured. However, extensions of credit are predicated on the financial capacity of the borrower to repay. Repayment of commercial loans is generally from the cash flow of the borrower. Real estate construction loans consist of loans to residential and commercial contractors, which are secured by single-family residential or multi-family properties. All real estate loans have established equity requirements. The repayment of real estate construction loans is generally from long-term mortgages with other lending institutions. Agricultural loans are generally secured by land, equipment, inventory, and receivables. Repayment of agricultural loans is generally from the expected cash flow of the borrower.
While the bank has a high concentration of commercial real estate loans, it is not in the business of making residential mortgage loans to individuals. The residential mortgage loan portfolio primarily consists of purchased fixed-rate 30-year residential mortgage pools. The company originates interest-only loans which are generally revolving lines of credit to commercial and agricultural businesses or for real estate development where the borrowers business may be seasonal or cash flows may be restricted until the completion of the project.
In the normal course of business, the bank makes various loan commitments, including granting customers collateralized and uncollateralized lines of credit, and incurs certain contingent liabilities.
In addition to the loan and deposit services, the bank offers a wide range of specialized services designed to attract and service the needs of commercial customers and account holders. These services include online banking, mobile banking, safe deposit boxes, wire transfers, ITM services, payroll direct deposit, cashier’s checks, and cash management services.
Investment Securities
As of December 31, 2023, the company’s investment securities were U.S. government agencies; U.S. government sponsored entities and agencies collateralized by mortgage obligations; corporate bonds; municipal bonds; and U.S. treasury securities.
Supervision and Regulation
The company is registered with the Board of Governors of the Federal Reserve System (the FRB) as a bank holding company under the Bank Holding Company Act of 1956, as amended (the BHCA).
The company is subject to regulation by the Securities and Exchange Commission (SEC) and to the disclosure and regulatory requirements of the Securities Act of 1933, as amended (the Securities Act), and the Securities Exchange Act of 1934, as amended (the Exchange Act).
The company and any subsidiaries it may purchase or organize are deemed to be affiliates of the bank within the meaning of Sections 23A and 23B of the Federal Reserve Act, and the FRB’s Regulation W. Under Sections 23A and 23B and Regulation W, loans by the bank to affiliates, investments by them in affiliates’ stock, and taking affiliates’ stock as collateral for loans to any borrower is limited to 10% of the bank’s capital, in the case of any one affiliate, and is limited to 20% of the bank’s capital, in the case of all affiliates.
As a California state-chartered bank and a member of the FRB, the bank is subject to regulation, supervision and regular examination by the FRB and the California Department of Financial Protection and Innovation (DFPI).
The bank is subject to California laws insofar as they are not preempted by federal banking law. Deposits of the bank are insured by the FDIC up to the applicable limits in an amount up to $250,000 per customer and, as such, the bank is subject to the applicable provisions of the Federal Deposit Insurance Act and the regulations of the Federal Deposit Insurance Corporation (FDIC).
The bank is a member of the Federal Home Loan Bank of San Francisco (the FHLB-SF). The company is subject to a number of federal and state consumer protection laws that extensively govern relationships with customers. These laws include the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Truth in Lending Act, the Truth in Savings Act, the Electronic Fund Transfer Act, the Expedited Funds Availability Act, the Home Mortgage Disclosure Act, the Fair Housing Act, the Real Estate Settlement Procedures Act, the Fair Debt Collection Practices Act, the Service Members Civil Relief Act, and these laws’ respective state-law counterparts, as well as state usury laws and laws regarding unfair and deceptive acts and practices.
The PATRIOT Act, as implemented by various federal regulatory agencies, requires the company and the bank to establish and implement policies and procedures with respect to, among other matters, anti-money laundering, compliance, suspicious activity and currency transaction reporting and due diligence on customers and prospective customers.
The bank regularly evaluates and continues to enhance the systems and procedures to continue to comply with the PATRIOT Act and other anti-money laundering initiatives.
The Community Reinvestment Act (the CRA) generally requires the bank to identify the communities it serves and to make loans and investments, offer products, make donations in, and provide services designed to meet the credit needs of these communities.
History
United Security Bancshares was founded in 1987. The company was incorporated in 2001.
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