Current Report Filing (8-k)

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

November 19, 2014

Date of Report (Date of earliest event reported)

UNITED SECURITY BANCSHARES

(Exact Name of Registrant as Specified in its Charter)

California

(State or Other Jurisdiction of Incorporation)



000-32987		91-2112732
(Commission File Number)		(I.R.S. Employer Identification No.)

2126 Inyo Street, Fresno, California		93721
(Address of principal executive offices)		(Zip Code)

559-248-4943

(Registrant's Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities

Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a12 under the Exchange

Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the

Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the

Exchange Act (17 CFR 240.13e-4(c))

ITEM 1.02 TERMINATION OF MATERIAL DEFINITIVE AGREEMENT

On December 2, 2014, the Federal Reserve Board (the "FRB") announced the termination, effective retroactively as of November 19, 2014, of the Consent Order entered into by and between United Security Bancshares, a California corporation (“Bancshares”), its wholly-owned bank subsidiary, United Security Bank (the "Bank"), a California state-chartered bank, and the Federal Reserve Bank of San Francisco, dated March 23, 2010. The Consent Order was replaced with an informal supervisory agreement that requires, among other things, obtaining written approval from the Federal Reserve Bank of San Francisco prior to payment of dividends from the Bank to Bancshares or the payment of dividends by Bancshares or interest on Bancshares' trust preferred securities.

The Bank's previous formal agreement with the California Department of Business Oversight had been terminated on October 1, 2013, and was also replaced with an informal supervisory agreement. Accordingly, this represents the elimination of all formal supervisory agreements affecting Bancshares and the Bank.

The material terms and conditions of the Consent Order were previously disclosed in United Security Bancshares' Form 8-K filed on March 25, 2010.

The text of the press release related to the termination of the Consent Order is attached as Exhibit 99.1.

EXHIBIT #

99.1 Press release of United Security Bancshares dated December 2, 2014

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

United Security Bancshares

Date: December 2, 2014 By: /s/ Ken L. Donahue

-----------------------------------------------------------

Ken L. Donahue

Executive Vice President & Chief Financial Officer

United Security Bancshares Announces Termination of Consent Order

FRESNO, CA, December 2, 2014 - United Security Bancshares (http://www.unitedsecuritybank.com/) (Nasdaq Global Select: UBFO), the holding company for United Security Bank (the "Bank"), announced today the termination, effective retroactively to November 19, 2014, of the Consent Order dated March 23, 2010, issued by the Federal Reserve Bank of San Francisco (the "FRB"). With the termination of the Consent Order and the previous termination of the Written Agreement with the California Department of Business Oversight (the "DBO") on October 1, 2013, the Company and the Bank have now been relieved of all formal regulatory agreements.

Some of the governance and procedures established by the Consent Order and Written Agreement remain in place, including submission of certain plans and reports to the FRB and DBO, and requirement to seek approval from the FRB and the DBO for either the Bank or the Company to pay dividends and for the Company to pay interest on its outstanding trust preferred securities ("TRUPS"). While no assurances can be given as to future regulatory approvals, on a quarterly basis the DBO and FRB have been approving the Bank's payment of dividends to the Company to cover the Company's operating expenses and its payment of interest on the TRUPS and the Company's payment of quarterly interest on the TRUPS.

The lifting of the Consent Order reflects the progress made by the Company's and the Bank's management and Board of Directors to manage problem credits, raise capital, improve core earnings, and strengthen the Bank's liquidity position. This regulatory recognition marks an important milestone in United Security Bancshares' recovery efforts.

United Security Bancshares is a $680+ million bank holding company headquartered in Fresno, California. United Security Bank, its principal subsidiary, is a California state-chartered bank with 11 branches serving California's Central Valley and Campbell, in California's Silicon Valley, and is a member of the Federal Reserve System.

FORWARD-LOOKING STATEMENTS

Certain statements made in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include projections, predictions, expectations, or beliefs about events or results or otherwise are not statements of historical facts, such as statements about the Company's board or its structure. Although the Company believes that its expectations with respect to such forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance or achievements of the Company will not differ materially from those expressed or implied by such forward-looking statements. For a more complete discussion of these risks and uncertainties, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, and particularly the section of Management’s Discussion and Analysis. Readers should carefully review all disclosures the Company files from time to time with the Securities and Exchange Commission ("SEC").

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