United Security Bancshares: Merger Update

This guide breaks down the latest news regarding the United Security Bancshares (UBFO) merger in plain English. If you are watching your portfolio or following business news, here is what you need to know.

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1. What is happening?

United Security Bancshares (UBFO) is merging with Community West Bancshares (CWBC) in an all-stock deal. Shareholders officially approved the merger on March 30, 2026.

2. Why are they merging?

This deal is designed to create a larger, more competitive bank in California. By combining United Security’s Central Valley presence with Community West’s Central Coast footprint, the new company expects to operate more efficiently. They plan to cut costs by removing overlapping back-office roles and sharing technology, which should help the combined bank generate more profit from its assets.

3. Why does this matter for investors?

Approval removes the biggest hurdle to completing the deal. The new, larger bank will have a bigger balance sheet, allowing it to lend more money to commercial clients and benefit from a more diverse mix of deposits, which can lower the bank's overall borrowing costs.

4. What does this mean for your shares?

• The Exchange: You will receive 0.912 shares of Community West stock for every share of United Security stock you currently own.
• Stock Price: Until the deal officially closes, United Security’s stock price will likely track closely with Community West’s price, adjusted by that 0.912 exchange ratio.
• Tax Implications: These deals are typically structured to be tax-deferred, but you should review the company’s official SEC filings or consult a tax professional to understand how this specifically impacts your personal situation.

5. What happens next?

The companies are currently waiting for final regulatory approval from the Federal Reserve and the California Department of Financial Protection and Innovation. Once those are secured, they will file the final paperwork. The deal is expected to close in the second quarter of 2026.

6. How to stay informed

Keep a close eye on the United Security Bancshares Investor Relations website for the official "Effective Date." This is the day your shares will automatically convert.

Bottom Line: The merger is in the final stages. If you are holding the stock, your primary focus should be watching for the official closing date announcement and ensuring you understand the tax implications of the share conversion for your specific portfolio.

Note: This is for informational purposes only and is not personalized financial advice. Always review the official merger proxy statement filed with the SEC before making investment decisions.