UBFO - Earnings Of United Security Bancshares Set To Decline
We expect earnings of United Security Bancshares (UBFO), a small bank holding company, to decline next year due to economic problems in its operational region. However, we expect the bank's dividends to be maintained because of the comfortable level of its payout ratio. Discussion on our earnings estimates and valuation analysis is given below.
Loan Growth to Continue to Suffer Due to Agricultural Sector
UBFO operates in California's Central Valley and therefore its loan book is driven by the agricultural sector, as noted in management's discussion and analysis of the financial statements. Our