United Security Bancshares (UBFO) Net Margin Decline Challenges Long Term Bullish Narratives

Simply Wall St.03-28

United Security Bancshares (UBFO) has wrapped up FY 2025 with fourth quarter revenue of US$13.1 million and EPS of US$0.20, alongside trailing 12 month revenue of US$48.3 million and EPS of US$0.71. ...

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These figures sit against a five year earnings growth rate of 8.5% per year and a negative one year earnings growth figure. Over recent periods the company has seen revenue move from US$48.6 million and EPS of US$0.86 on a trailing 12 month basis in late 2024 to the latest trailing totals of...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4211":"区域性银行","UBFO":"联合安全银行","BLSX":"Tradr 2X Long BLSH Daily ETF","BK4112":"金融交易所和数据","BLSG":"2倍做多BLSH ETF-Leverage Shares"},"translate_title":"United Security Bancshares(UBFO)净利润下降挑战长期看涨叙事","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BLSG":0.6,"UBFO":1.97,"BLSX":0.6},"content_text":"United Security Bancshares (UBFO) has wrapped up FY 2025 with fourth quarter revenue of US$13.1 million and EPS of US$0.20, alongside trailing 12 month revenue of US$48.3 million and EPS of US$0.71. These figures sit against a five year earnings growth rate of 8.5% per year and a negative one year earnings growth figure. Over recent periods the company has seen revenue move from US$48.6 million and EPS of US$0.86 on a trailing 12 month basis in late 2024 to the latest trailing totals of US$48.3 million and US$0.71. The net margin now sits at 25.5% compared with 30.4% a year earlier as investors assess how the current profitability profile shapes the reward side of the equation. See our full analysis for United Security Bancshares. With the headline results on the table, the next step is to see how these margins and earnings trends line up with the prevailing narratives that investors follow around United Security Bancshares. Curious how numbers become stories that shape markets? Explore Community Narratives NasdaqGS:UBFO Earnings & Revenue History as at Mar 2026 AdvertisementNet margin slips to 25.5%  On a trailing 12 month basis, net profit margin is 25.5% compared with 30.4% a year earlier, while trailing net income sits at US$12.3 million on US$48.3 million of revenue. What stands out for a bullish view built around a traditional local bank is that the margin compression and weaker trailing EPS of US$0.71 contrast with the earlier five year earnings growth rate of 8.5% per year. This means:\n     Supporters pointing to a long history of growth now have to weigh that against the more recent slip in profitability. Critics can point to the drop in margin as a clear sign that the latest 12 months have not matched the earlier multi year trend.    Non performing loans fall to US$5.7 million  Non performing loans in FY 2025 Q4 are US$5.7 million versus US$12.6 million in FY 2024 Q4, while total loans are US$915.4 million compared with US$928.5 million a year earlier. What is interesting for a cautious, more bearish narrative that focuses on credit risk is that the smaller pool of non performing loans sits alongside weaker earnings, so:\n     Skeptics who worry most about asset quality may see the fall in non performing loans as less aligned with a credit stress story. At the same time, they can still highlight that trailing EPS of US$0.71 and the lower 25.5% margin show profitability pressure even as problem loans are lower than last year.    On a quarter where credit quality metrics look cleaner but profit margins are lower, skeptics may still want to unpack how the loan book mix and earnings trend fit together before taking a firm stance on the stock’s risk profile 🐻 United Security Bancshares Bear Case P/E of 14.6x versus higher DCF fair value  UBFO trades on a trailing P/E of 14.6x, above both the peer average of 10.7x and the US Banks industry at 11.2x, while a DCF fair value of US$21.59 sits against a current share price of US$10.21. What is surprising for anyone weighing a bullish angle is how the premium P/E and weaker recent earnings sit beside a DCF fair value that is roughly twice the current price. This creates a clear tension:\n     Supporters can point to the 8.5% five year earnings growth rate and that DCF fair value of US$21.59 as reasons the market could be pricing the bank below its longer term cash flow potential. Others can counter that the higher P/E and the drop in net margin from 30.4% to 25.5% suggest the market is already paying more than peers for earnings that have softened over the last year.    Next Steps Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on United Security Bancshares's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move. If the mix of weaker earnings and cleaner credit quality leaves you uncertain, act while the information is fresh and test the story against your own judgement using the 1 key reward. See What Else Is Out There United Security Bancshares is wrestling with softer EPS, a lower 25.5% net margin and a P/E premium that some readers may find hard to justify. If that mix of margin pressure and earnings softness makes you cautious, broaden your watchlist with the 67 resilient stocks with low risk scores to focus on companies where stability and lower risk scores are front and center.  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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