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Investing.com -- United Security Bancshares (NASDAQ:UBFO) reported third-quarter earnings that exceeded previous results, driving shares up 3.4% in Monday’s premarket trading as investors responded positively to the company’s loan growth and improved profitability.
The Fresno-based bank reported net income of $4.0 million, or $0.23 per diluted share, for the quarter ended September 30, 2025, surpassing the previous year’s $3.8 million, or $0.22 per share. Revenue came in at $14.03 million. The 5.07% increase in net income was primarily driven by a decrease in credit loss provisions and lower short-term borrowing expenses.
The bank’s stock jumped 3.4% in premarket trading Monday, reflecting investor enthusiasm for the company’s loan portfolio growth of 3.22% to $958.3 million compared to December 2024 levels, along with a 1.73% increase in total deposits to $1.08 billion.
"We are pleased with our loan growth of $30.0 million this quarter compared to the end of 2024," said Dennis Woods, President and CEO. "Our shareholders’ equity remains strong and improved by $7.0 million after dividends to our shareholders."
United Security’s net interest margin improved to 4.35% from 4.20% YoY, while the average cost of deposits decreased to 1.12% from 1.18% in the same period last year. The bank’s efficiency ratio slightly deteriorated to 52.80% from 52.47% a year earlier.
The company recorded a provision for credit losses of $948,000 for the quarter, significantly lower than the $1.6 million provision in the same quarter of 2024, reflecting decreased charge-offs within the student loan portfolio.
Return on average assets increased to 1.29% from 1.24% YoY, while return on average equity rose to 11.68% from 11.63%, demonstrating the bank’s improved operational efficiency despite challenging market conditions.
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