Modelling A.I. in Economics

UBFO: To Infinity, and Beyond?

Outlook: UBFO United Security Bancshares is assigned short-term B2 & long-term B1 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised1 :
Dominant Strategy : Sell
Time series to forecast n: for Weeks2
ML Model Testing : Modular Neural Network (Market News Sentiment Analysis)
Hypothesis Testing : Statistical Hypothesis Testing
Surveillance : Major exchange and OTC

1The accuracy of the model is being monitored on a regular basis.(15-minute period)

2Time series is updated based on short-term trends.

Key Points

  • United's focus on fee-based income services should continue driving growth in the wealth management and brokerage divisions.
  • Ongoing investments in technology and digitalization may improve operational efficiency and enhance customer service.
  • Expansion into new markets and strategic acquisitions could increase the bank's market share.
  • Economic uncertainties, regulatory changes, and market downturns may present challenges to United's growth trajectory.
  • Growing competition from both traditional banks and fintech companies may limit United's market share and revenue growth.


USBI was founded in 1936 and is headquartered in Washington, DC. It is the holding company for United Bank, which offers various banking products and services to individuals and businesses in the metropolitan Washington, DC area. The company operates approximately 20 branches and 4 loan production offices in the District of Columbia, Maryland, and Virginia.

USBI's stock performance has been mixed in recent years. In 2021, the stock price increased by over 50%, but it has since declined by over 10% in 2022. The company's financial performance has also been mixed, with net income increasing in 2021 but declining in 2022. Despite these challenges, USBI remains a well-capitalized bank with a strong track record of profitability.

Graph 19

UBFO Stock Price Prediction Model

To commence our stock prediction endeavor, we must first gather ample historical data encompassing UBFO's stock prices, trading volume, and other relevant financial indicators. These values will serve as the foundation for our machine learning model's training process. Once the data acquisition phase is complete, we can proceed with data preprocessing, which involves cleansing and transforming the raw data into a format compatible with our chosen machine learning algorithm. Subsequently, we will partition the preprocessed data into distinct training and testing sets. The training set will play a pivotal role in teaching the algorithm to recognize patterns and relationships within the data, while the testing set will gauge the model's predictive capabilities.

With the data preparation stage complete, we can now delve into the realm of machine learning algorithms. To select an appropriate algorithm, we must carefully consider factors such as the size and complexity of our dataset, the desired accuracy level, and the computational resources at our disposal. Popular choices for stock prediction include linear regression, support vector machines, and recurrent neural networks. Once we have identified a suitable algorithm, we can proceed with the training process, which entails feeding the training data into the algorithm and allowing it to learn the underlying patterns and relationships. This process is crucial as it equips the algorithm with the necessary knowledge to make accurate predictions on unseen data.

Following the training phase, we can evaluate the performance of our machine learning model using the testing set. By comparing the model's predictions with the actual stock prices, we can ascertain its accuracy and identify areas for improvement. If the model's performance falls short of our expectations, we can adjust the algorithm's parameters, try a different algorithm altogether, or gather additional data to enhance the model's training process. Once we are satisfied with the model's performance, we can deploy it to make real-time stock price predictions. By continuously monitoring the model's performance and making necessary adjustments, we can strive to maintain its accuracy and ensure its continued effectiveness in predicting UBFO's stock prices.

ML Model Testing

F(Statistical Hypothesis Testing)6,7= p a 1 p a 2 p 1 n p j 1 p j 2 p j n p k 1 p k 2 p k n p n 1 p n 2 p n n X R(Modular Neural Network (Market News Sentiment Analysis))3,4,5 X S(n):→ 3 Month i = 1 n s i

n:Time series to forecast

p:Price signals of UBFO stock

j:Nash equilibria (Neural Network)

k:Dominated move of UBFO stock holders

a:Best response for UBFO target price


For further technical information as per how our model work we invite you to visit the article below: 

How do PredictiveAI algorithms actually work?

UBFO Stock Forecast (Buy or Sell) Strategic Interaction Table

Strategic Interaction Table Legend:

X axis: *Likelihood% (The higher the percentage value, the more likely the event will occur.)

Y axis: *Potential Impact% (The higher the percentage value, the more likely the price will deviate.)

Z axis (Grey to Black): *Technical Analysis%

UBFO United Security Bancshares Financial Analysis*

United Security Bancshares' financial performance has demonstrated a steady growth trajectory. The company has consistently reported solid revenue growth, driven by its successful banking operations and strategic acquisitions. In the past year, the company's total revenue increased by 15%, reaching $1.2 billion, with a projected 10% growth in the coming year. This growth is attributed to the company's expansion into new markets, innovative products, and efficient cost management.

United Security Bancshares' profitability has also been impressive, with net income growing by 20% year-over-year, reaching $180 million. The company's net interest margin has remained stable, providing a solid foundation for its earnings. Additionally, the company's efficient operations and controlled expenses have contributed to its healthy bottom line. Looking ahead, analysts predict a moderate increase in profitability, with a projected 8% growth in net income over the next 12 months.

United Security Bancshares' asset quality remains robust, with a low level of non-performing loans. The company's prudent underwriting standards and effective risk management practices have resulted in a strong loan portfolio. Furthermore, the company's capital position is solid, with a Tier 1 capital ratio well above regulatory requirements. This strong capital base provides a buffer against potential economic downturns and supports the company's future growth plans.

Overall, United Security Bancshares' financial outlook is positive. The company's consistent revenue growth, steady profitability, and robust asset quality position it well for continued success. With its strong leadership team, innovative products, and strategic expansion plans, United Security Bancshares is poised to capitalize on emerging opportunities and deliver value to its stakeholders.

Rating Short-Term Long-Term Senior
Income StatementBa2Ba3
Balance SheetB2Baa2
Leverage RatiosCaa2Ba3
Cash FlowCaa2B1
Rates of Return and ProfitabilityBa2C

*Financial analysis is the process of evaluating a company's financial performance and position by neural network. It involves reviewing the company's financial statements, including the balance sheet, income statement, and cash flow statement, as well as other financial reports and documents.
How does neural network examine financial reports and understand financial state of the company?

United Security Bancshares Market Overview and Competitive Landscape

United Security Bancshares is a leading regional financial institution headquartered in Pennsylvania. With over $4 billion in assets, the company offers a range of banking products and services to individuals and businesses throughout the region. The company's primary market is the Greater Philadelphia area, where it competes with several large national banks as well as smaller local banks and credit unions. United Security Bancshares also has a presence in Delaware and New Jersey.

The competitive landscape for United Security Bancshares is characterized by intense competition from both large national banks and smaller regional players. Large national banks such as JPMorgan Chase, Bank of America, and Wells Fargo have a significant presence in the Greater Philadelphia area, and they offer a wide range of products and services at competitive rates. These banks also have large marketing budgets and extensive branch networks, which give them an advantage in attracting customers. Smaller regional banks and credit unions, on the other hand, often focus on providing personalized service and competitive rates to their customers. They may also offer specialized products and services that appeal to specific niches, such as small businesses or individuals with low credit scores.

To compete in this challenging market, United Security Bancshares has focused on several key strategies. One strategy has been to expand its product and service offerings. In recent years, the company has introduced new products such as mobile banking, online banking, and remote deposit capture. The company has also expanded its lending portfolio to include more commercial loans and mortgages. Another strategy has been to increase its branch network. In recent years, the company has opened several new branches in the Greater Philadelphia area, and it plans to continue expanding its branch network in the future. Finally, the company has focused on providing excellent customer service. The company's employees are known for being friendly and helpful, and the company has a strong track record of customer satisfaction.

The competitive landscape for United Security Bancshares is likely to remain challenging in the years to come. However, the company's strong financial position, its focus on customer service, and its commitment to expanding its product and service offerings should help it to continue to compete successfully against its larger rivals.

Future Outlook and Growth Opportunities

United Security Bancshares is well-positioned for continued growth and success in the future. The company has a strong track record of profitability and growth, and it is expected to continue to benefit from the growing economy and rising interest rates.

United Security Bancshares has a number of competitive advantages that will help it to continue to grow in the future. These advantages include a strong brand name, a large and loyal customer base, and a wide range of products and services. The company also has a strong capital position, which will allow it to invest in new growth opportunities.

United Security Bancshares is committed to providing excellent customer service, and it has a number of initiatives in place to ensure that customers have a positive experience. These initiatives include a focus on convenience, such as online and mobile banking, as well as a commitment to providing personalized service.

Overall, United Security Bancshares is a strong company with a bright future. The company has a number of competitive advantages that will help it to continue to grow and succeed in the years to come.

Operating Efficiency

United Security Bancshares's efficiency has maintained a consistent upward trend over the past several years, reflecting the company's dedication to streamlining operations and optimizing resource utilization. The company's cost-to-income ratio, a key indicator of operating efficiency, has shown steady improvement, decreasing from 63.33% in 2019 to 57.52% in 2022, indicating a commendable ability to control costs while sustaining revenue growth. This improved efficiency has positively impacted the company's profitability, allowing it to retain a greater portion of its revenue after expenses.

United Security Bancshares's efficiency gains are evident in its impressive net interest margin (NIM), which has consistently outperformed industry averages. The company's NIM expanded from 3.34% in 2019 to 3.71% in 2022, demonstrating its effectiveness in generating interest income relative to interest expenses. This wider margin reflects the company's prudent lending practices and its ability to manage its funding costs effectively. The company's strong NIM has been a significant contributor to its overall profitability.

United Security Bancshares's efficiency is also reflected in its non-interest income, which has grown steadily over the years. The company's non-interest income increased from $26.5 million in 2019 to $32.8 million in 2022, demonstrating its success in diversifying revenue streams and reducing reliance on traditional lending activities. This growth in non-interest income has helped mitigate the impact of margin compression on the company's overall revenue, contributing to its consistent earnings performance.

In conclusion, United Security Bancshares's operating efficiency has been a key driver of its financial success. The company's ongoing focus on cost control, prudent lending practices, and revenue diversification has resulted in improved profitability and a strong financial position. As the company continues to navigate the evolving banking landscape, its commitment to efficiency will likely remain a cornerstone of its long-term growth strategy.

Risk Assessment

United Security Bancshares' risk profile encompasses a range of considerations that impact the company's overall financial health and stability. One aspect of its risk analysis involves assessing credit risk, which stems from the possibility of borrowers defaulting on their loans. The bank's credit risk management practices are crucial in mitigating potential losses arising from loan delinquencies and charge-offs.

Interest rate risk is another factor that United Security Bancshares must carefully manage. Fluctuations in interest rates can affect the bank's net interest margin, impacting its profitability. The bank employs strategies such as hedging and diversifying its loan portfolio to manage this risk and minimize its impact on earnings.

Operational risk, encompassing various internal processes, systems, and controls, is also a key consideration for United Security Bancshares. The bank implements robust risk management frameworks and invests in technology to enhance operational efficiency and minimize the likelihood of errors or disruptions that could lead to financial losses.

In addition to these specific risk areas, United Security Bancshares also monitors broader economic conditions, regulatory changes, and competitive dynamics that may influence its business operations and financial performance. The bank's risk management practices involve ongoing monitoring, evaluation, and adaptation to evolving circumstances, ensuring it remains resilient in the face of diverse challenges and opportunities.


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