form11k.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
 
(mark one)
 
 
 
 
 
x
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
 
 
 
 
 
For the year ended December 31, 2010
 
or
 
 
o
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
 
 
 
For the transition period from            to
 
Commission file number 333-100078
 
A.        Full title of the plan and the address of the plan, if different from that of the issuer named below:
 
UNITED SECURITY BANK CASH or DEFERRED STOCK OWNERSHIP PLAN
 
B.         Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:
 
United Security Bank
2126 Inyo Street
Fresno, California, 93721
 


 
 

 
 
United Security Bank Cash or Deferred Stock Ownership Plan
 
Financial Statements and Supplemental Schedule
 
December 31, 2010 and 2009
with Report of Independent Registered Public Accounting Firm

 
Form 11-K
 
 
3
 
 
 
Financial Statements
 
 
 
 
 
 
4
 
 
 
 
5
 
 
 
 
6
 
 
 
Supplemental Schedule
 
 
 
 
 
 
13
 
 
 
 
15
 
 
2

 
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
We have audited the accompanying statements of net assets available for benefits of United Security Bank Cash or Deferred Stock Ownership Plan (the Plan) as of December 31, 2010 and 2009, and the related statement of changes in net assets available for benefits for the year ended December 31, 2010. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
 
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Plan's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
 
In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2010 and 2009, and the changes in its net assets available for benefits for the year ended December 31, 2010 in conformity with accounting principles generally accepted in the United States of America.

Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental Schedule H, line 4(i)-Schedule of Assets (Held at End of Year) as of December 31, 2010, is presented for the purpose of additional analysis and is not a required part of the basic financial statements, but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

 
/s/ Moss Adams LLP
Santa Clara, CA
June 29, 2011
 
 
3

 
United Security Bank
Cash or Deferred Stock Ownership Plan
Statements of Net Assets Available for Benefits
December 31, 2010 and 2009
 
   
2010
   
2009
 
             
ASSETS
           
Cash
  $ 2     $ 2  
Investments, at fair value:
               
                 
Common stock of United Security Bank
    1,138,951       1,373,550  
Separately managed accounts
    1,162,129       843,163  
Money Market Mutual Funds
    40,423       176,178  
Notes Receivable from Participants
    85,149       58,133  
Participant contributions receivable
    0       14,018  
                 
NET ASSETS AVAILABLE FOR BENEFITS
  $ 2,426,654     $ 2,465,044  
 
See notes to financial statements
 
 
4


United Security Bank
Cash or Deferred Stock Ownership Plan
Statement of Changes in Net Assets Available for Benefits
For the Year Ended December 31, 2010
 
CHANGES IN NET ASSETS ATTRIBUTED TO:
     
       
Net depreciation in common stock of United Security Bank
  $ (193,198 )
Net appreciation in fair value of other investments
    121,717  
Dividends
    57,103  
Interest
    3,935  
Participant contributions
    360,039  
Benefits paid to participants
    (386,920 )
Administrative expenses
    (1,066 )
NET CHANGE
    (38,390 )
         
NET ASSETS AVAILABLE FOR BENEFITS, beginning of year
    2,465,044  
         
NET ASSETS AVAILABLE FOR BENEFITS, end of year
  $ 2,426,654  

See notes to financial statements
 
 
5

 
United Security Bank
Cash or Deferred Stock Ownership Plan
Notes to Financial Statements
December 31, 2010 and 2009
 
NOTE 1 – DESCRIPTION OF PLAN
 
The following brief description of the United Security Bank Cash or Deferred Stock Ownership Plan provides only general information. Participants should refer to the Plan document for a more complete description of the Plan’s provisions.
 
General
 
The primary purpose of the United Security Bank Cash or Deferred Stock Ownership Plan (the “Plan”) is to provide employees of United Security Bank (the “Company”) the opportunity to accumulate funds for their retirement. It is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”). The Plan was amended and restated as of January 1, 2009 to conform to recent changes in the law including, the provisions of the Pension Act of 2006; the final Treasury regulations under Code section 415 published April 5, 2007; and the provisions of the Heroes Earnings Assistance and Relief Tax Act of 2008.
 
Eligibility
 
The Plan is a defined contribution plan covering all regular part-time or full-time employees of the Company. Employees may participate in the voluntary salary deferral feature of the Plan on the first day of the month following employment. Employees will be eligible to receive employer contributions as of the first date of the Plan year in which the employee completes one year of service and attained the age of 21, provided the employee is credited with 1,000 hours of service during the Plan year and is employed on the last day of that Plan year.
 
Administration
 
The Plan is administered by the Company. Administrative expenses are paid by the Company, except for expenses incurred at the participant level which are charged against the participant’s individual accounts.
 
Participant accounts
 
Each participant’s account is credited with the participant’s contribution and allocations of the Company’s contributions, and Plan earnings. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.
 
Employee contributions
 
Participants may contribute to the Plan a percentage or a specific dollar amount of their annual wages, not to exceed certain dollar limitations determined annually by the Internal Revenue Service.
 
Employer contributions
 
The Company is under no obligation to contribute to the Plan in any given year. The Company may make a discretionary matching contribution, annually, at the discretion of the Board of Directors, which is allocated in proportion to participants’ eligible compensation to the total compensation of all eligible participants for the Plan year. Eligible compensation includes employee contributions to the Plan and to the Company Cafeteria Plan. Employer contributions are made in shares of common stock of United Security Bank and may be re- invested in other plan investments at the discretion of the participant. The employer did not make discretionary contributions during 2010.
 
 
6

 
Vesting
 
Vesting in the Company’s contributions is based on years of continuous service. Discretionary contributions by the Company and employer matching contributions vest on a pro rata basis beginning after two years of service and are fully vested after six years of credited service. In the event of death, disability or retirement, a participant’s interest in employer contributions become fully vested.

Notes receivable from participants
 
Participants may borrow from their accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of their vested account balance. Loan terms range from one to five years, except that a loan used to acquire a principal residence may be repaid over a reasonable time commensurate with the repayment period similar to commercial loans. The loans are secured by the balance in the participant’s account and bear interest at a rate commensurate with local prevailing rates as determined by the Plan Administrator. Principal and interest are paid through payroll deductions. Loan expenses are deducted from the gross loan amount upon distribution to the employee. As of December 31, 2010 and 2009, the rates of interest on outstanding loans ranged from 4.25% to 9.25% with maturities through July 2020.
 
Forfeitures
 
Forfeitures are the non-vested portion of a participant’s account that is lost upon termination of employment. Forfeitures are retained in the Plan and will be used to reduce future employer contributions. Non-vested amounts forfeited total $1,947 and $5,575 of net assets available for benefits at December 31, 2010 and 2009, respectively. For the year ended December 31, 2010, nonvested accounts totaling $1,947 were forfeited, which will be used to reduce future employer contributions.  No forfeitures were used during the year ended December 31, 2010.
 
Distributions
 
Upon termination of service, the participant may elect to receive benefits equal to the vested value of his or her account in one lump-sum payment or equal annual installments. The Plan allows in-service distributions for participants that have reached Normal Retirement Age as defined in the Plan, but are still working for the Company.
 
Plan termination
 
Although termination of the Plan is not presently contemplated, the Company does have the right to terminate the Plan at any time. In the event of termination, participants become 100% vested in the aggregate value of their respective accounts.
 
Plan Amendments
 
Effective January 1, 2010, the Plan was amended to provide how each participant shall be entitled to direct the Plan Trustee as to the manner in which any Employer Stock which are allocated to the employer account of the participant may be voted. Each Participant is entitled to direct the Trustee as to the manner in which any Employer Stock which is a registration-type class of securities (as defined in Code section 409(e)(4)) which are allocated to the Employer Account of the Participant are to be voted. With respect to any class of Employer Stock which is not a registration-type class of securities (as defined in Code section 409(e)(4)), a Participant is entitled to direct the Trustee as to the manner in which voting rights will be exercised with respect to any corporate matter which involves the voting of such shares allocated to the Participant's Employer Stock Account with respect to the approval or disapproval of any corporate merger or consolidation, recapitalization, reclassification, liquidation, dissolution, sale of substantially all assets of a trade or business, or such similar transactions as may be prescribed in Treasury regulations.
 
 
7

 
In July 2010 the Plan sponsor restated the Plan by adopting a new plan description and prospectus which updated the Plan for required law changes. This document has received a favorable advisory letter from the Internal Revenue Service.  There were no significant variations in the Plan’s design as a result of the adoption of this restatement.
 
NOTE 2 – ACCOUNTING POLICIES
 
Basis of accounting
 
The financial statements of the Plan are prepared in accordance with accounting principles generally accepted in the United States of America, using the accrual basis of accounting.
 
Use of estimates
 
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and changes therein, and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates.
 
Recent Accounting Pronouncements
 
In January 2010, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2010-06, Fair Value Measurements and Disclosures (Topic 820) – Improving Disclosures about Fair Value Measurements. The new guidance requires additional disclosures about transfers between levels within the fair value hierarchy and clarifies existing disclosure requirements regarding classes of assets and liabilities measured at fair value. The new guidance requires the Plan to: (a) disclose separately the amounts of significant transfers into and out of each level of the fair value hierarchy and describe the reasons for those transfers, (b) disclose the Plan’s policy for determining when transfers between levels of the fair value hierarchy are recognized, and (c) present information about purchases, sales, issuances, and settlements on a gross basis in the reconciliation of the beginning and ending balance of Level 3 fair value measurements. The new guidance is effective for reporting periods beginning after December 15, 2009, except for the Level 3 reconciliation disclosures which are effective for reporting periods beginning after December 15, 2010. The Plan adopted this guidance on January 1, 2010. See Note 3.

In September 2010, the FASB issued ASU 2010-25, Plan Accounting-Defined Contribution Pension Plans which amends existing guidance by requiring participant loans to be classified as notes receivable from participants, which are segregated from plan investments and measured at their unpaid principal balance plus any accrued but unpaid interest.  The amendments to the Accounting Standards Codification included in ASU 2010-25 are effective for fiscal years ending after December 15, 2010.  The Plan has adopted this guidance effective December 31, 2010 and has reclassified participant loans of $85,149 and $58,133 as of December 31, 2010 and 2009, respectively, from investments to notes receivable from participants.
 
Investment valuation
 
Fair value is the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date.  See Note 3 for discussion of fair value measurements.
 
 
8


Income Recognition

Purchases and sales of securities are recorded on a trade-date basis. Dividends are recorded on the ex-dividend date. Interest income is recorded on the accrual basis. The net appreciation/depreciation in fair value of investments consists of both the realized gains or losses and unrealized appreciation and depreciation of those investments.
 
Concentration of credit risk
 
The Plan is subject to concentrations of credit risk with respect to common stock of United Security Bancshares stock held by the Plan. At December 31, 2010, approximately 49% of the Plan assets are invested in United Security Bancshares stock, which is publicly traded on the NASDAQ stock exchange. United Security Bancshares stock, adjusted for stock dividends, traded at a high closing price of $5.21 per share and a low closing price of $3.41 per share during 2010. Company performance and other environmental factors impact the market value of this investment on a daily basis.
 
The Plan is also subject to concentrations of credit risk with respect to money market funds held at Principal Financial Group. These amounts are not guaranteed by the Federal Deposit Insurance Corporation. At December 31, 2010 and 2009, the Plan held money market accounts of $40,423 and $176,178, respectively.
 
Payment of benefits
 
Benefits are recorded when paid. The Plan accounts for benefits due to participants who have terminated employment with the Company as a component of net assets available for benefits until such amounts have been paid.
 
Subsequent Events
 
Subsequent events are events or transactions that occur after the statement of net assets available for benefits date but before financial statements are issued. The Plan recognizes in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the statement of net assets available for benefits, including the estimates inherent in the process of preparing the financial statements. The Plan’s financial statements do not recognize subsequent events that provide evidence about conditions that did not exist at the date of the statement of net assets available for benefits but arose after the statement of net assets available for benefits date and before financial statements are issued.  Note 8 provides disclosure of certain subsequent events that did not result in recognition in the financial statements.

Management has reviewed events occurring through June 29, 2011, the date the financial statements were available to be issued.
 
NOTE 3 – FAIR VALUE MEASUREMENTS
 
The Plan classifies its investments based upon an established fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described below:

 
Level 1
Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
 
 
9

 
 
Level 2
Quoted prices in markets that are not considered to be active or financial instruments without quoted market prices, but for which all significant inputs are observable, either directly or indirectly;

 
Level 3
Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.
 
Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2010 and 2009.
 
Principal Financial Group separately managed accounts and the money market mutual fund consist of a wide variety of underlying investments in registered investment companies. Units held in separately managed accounts and money market mutual fund are valued using the net asset value (NAV) of the fund. The NAV is based on the fair value of the underlying assets owned by the account, minus its liabilities, and then divided by the number of units outstanding. The net asset value of separately managed accounts and the money market mutual fund is calculated based on observable market inputs. Accordingly, investments held in separately managed accounts and the money market mutual fund are classified within level 2 of the valuation hierarchy.

Common stock of United Security Bank: The common stock is valued at quoted market prices. Accordingly, investments in common stock are classified within Level 1 of the valuation hierarchy.
 
The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
 
The following tables sets forth by level, within the fair value hierarchy, the Plan’s assets at fair value as of December 31, 2010 and December 31, 2009.
           
    Assets at Fair Value as of December 31, 2010  
                         
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Money market mutual fund
  $ 0     $ 40,423     $ 0     $ 40,423  
Separately managed accounts:
                               
Balanced Portfolio Fund
    0       273,597       0       273,597  
Conservative Portfolio Fund
    0       137,731       0       137,731  
Moderate Portfolio Fund
    0       26,874       0       26,874  
Aggressive Portfolio Fund
    0       486,467       0       486,467  
Equity Aggressive Portfolio Fund
    0       237,460       0       237,460  
Common stock
    1,138,951       0       0       1,138,951  
Total assets at fair value
  $ 1,138,951     $ 1,202,552     $ 0     $ 2,341,503  

 
10

 
   
Assets at Fair Value as of December 31, 2009
 
                         
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Money market mutual fund
  $ 0     $ 176,178     $ 0     $ 176,178  
Separately managed accounts:
                               
Balanced Portfolio Fund
    0       179,601       0       179,601  
Conservative Portfolio Fund
    0       91,800       0       91,800  
Moderate Portfolio Fund
    0       18,450       0       18,450  
Aggressive Portfolio Fund
    0       366,756       0       366,756  
Equity Aggressive Portfolio Fund
    0       186,556       0       186,556  
Common stock
    1,373,550       0       0       1,373,550  
Total assets at fair value
  $ 1,373,550     $ 1,019,341     $ 0     $ 2,392,891  
 
NOTE 4 – INVESTMENTS
 
A substantial amount of the Plan’s assets were invested in the common stock of the Company and are held by Principal, the Plan’s trustee. The remaining portion of the Plan’s assets is held in the form of cash, money market mutual funds and separately managed accounts.
 
The Plan’s investments include 303,752.9726 allocated shares and 104.985 unallocated shares of Company stock at December 31, 2010. At December 31, 2010, the Company common stock was valued at the quoted market price of $3.76 per share.
 
The Plan’s investments include 312,070.0065 allocated shares and 100.8890 unallocated shares of Company stock at December 31, 2009. The Company common stock is valued at the quoted market price of $4.40 per share.
 
The following investments represent 5% or more of the Plan’s net assets available for benefits at December 31,
 
   
2010
   
2009
 
United Security Bank common stock
  $ 1,138,951     $ 1,373,550  
Aggressive Portfolio
    486,467       366,734  
Equity Aggressive Portfolio
    237,460       186,558  
Balanced Portfolio
    273,597       179,613  
Money Market R5 Fund (1)
    40,423       176,178  
 
(1) Balances shown for 2010 were not more than 5% of Plan assets at December 31, 2010. Amounts shown for comparative purposes only between 2010 and 2009.
 
NOTE 5 – TAX STATUS
 
The Plan obtained its latest determination letter dated April 4, 2002, in which the Internal Revenue Service stated that the Plan, as then designed, was in compliance with the applicable requirements of the Internal Revenue Code. The Plan has been restated since receiving the determination letter. However, the Plan Administrator and the Plan’s tax counsel believe that the Plan is currently designed and being operated in compliance with the applicable requirements of the Internal Revenue Code. Therefore, no provision for income taxes has been included in the Plan’s financial statements.
 
 
11

 
NOTE 6 – RELATED PARTY TRANSACTIONS
 
The Plan’s assets are held by Principal Financial Group (PFG). Some of the Plan assets are invested in funds managed by PFG. PFG also provides record keeping and investment services to the plan.
 
Company contributions are managed by PFG, which invests cash received, interest and dividend income and makes distributions to participants.
 
Administrative functions are jointly performed by All Valley Administrators and by employees of the Company. No employee receives compensation from the Plan. PFG expenses incurred at the participant level are absorbed by the Plan and allocated among the related participant’s accounts. The independent auditors’ fees are paid directly by the Company.
 
NOTE 7 – RISKS AND UNCERTAINTIES
 
The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the financial statements.
 
NOTE 8 – SUBSEQUENT EVENTS
 
Included in investments as of December 31, 2010 are shares of the Company’s common stock at a value totaling $1,138,951 and representing approximately 49% of total investments.  As of June 27, 2011, the share price of the Company’s common stock was $3.03, and based upon the number of shares held as of December 31, 2010, this equates to an approximate decrease in net assets available for benefits of 19%.

By end of June 2011, the Board of Directors of the Company may approve a resolution to merge the United Security Bank ESOP (the ESOP) into the Plan effective August 15, 2011 (Merger date).  Effective Merger date, benefits would cease to accrue in the ESOP and assets of the ESOP would transfer into the Plan as soon as administratively feasible.

 
12

 
United Security Bank
Cash or Deferred Stock Ownership Plan

SCHEDULE H, LINE 4i
Schedule of Assets (Held at End of Year)
Employer Identification Number 77-0103429
Plan Number 002

December 31, 2010
 
(a)
 
(b)
 
(c)
(d)
 
(e)
 
   
Identity of issuer, borrower, lessor or similar party
 
Description of investment, including maturity date, rate of interest, collateral, par or maturity value
Cost
 
Current Value
 
*  
United Security Bank
 
Cash
      2  
                   
*  
United Security Bank
 
303,752.9726 shares of common stock
      1,138,951  
                   
*  
Principal Financial Group
 
Money Market R5 Fund
      40,423  
                   
*  
Principal Financial Group - Balanced Portfolio Fund:
             
   
Principal Bond Market Index R5 Fund
 
 5295.1699 shares
      54,858  
   
Principal Core Plus Bond I R5 Fund
 
 5050.3751 shares
      54,847  
   
Principal LargeCap S&P 500 Index R5 Fund
 
 3683.3995 shares
      32,782  
   
Principal Real Estate Securities R5 Fund
 
 864.1914 shares
      13,611  
   
Russell Emerging Markets E Fund
 
 395.9243 shares
      8,227  
   
Russell International Developed Markets E Fund
 
 1380.579 shares
      43,792  
   
Russell US Core Equity E Fund
 
 978.1132 shares
      27,309  
   
Russell US Quantitative Equity E Fund
 
 953.8647 shares
      27,309  
   
Russell US Small & Mid Cap E Fund
 
 476.8054 shares
      10,862  
   
Total Balanced Portfolio Fund
          273,597  
                   
*  
Principal Financial Group - Conservative Portfolio Fund
             
   
Principal Bond Market Index R5 Fund
 
 2927.1522 shares
      30,325  
   
Principal Core Plus Bond I R5 Fund
 
 7362.3714 shares
      79,955  
   
Principal LargeCap S&P 500 Index R5 Fund
 
 617.15 shares
      5,493  
   
Principal Real Estate Securities R5 Fund
 
 260.6273 shares
      4,105  
   
Russell International Developed Markets E Fund
 
 130.1152 shares
      4,127  
   
Russell US Core Equity E Fund
 
 245.8228 shares
      6,863  
   
Russell US Quantitative Equity E Fund
 
 239.7286 shares
      6,863  
   
Total Conservative Portfolio Fund
          137,731  
                   
*  
Principal Financial Group - Moderate Portfolio Fund:
             
   
Principal Bond Market Index R5 Fund
 
 701.5169 shares
      7,268  
   
Principal Core Plus Bond I R5 Fund
 
 818.1251 shares
      8,885  
   
Principal LargeCap S&P 500 Index R5 Fund
 
 241.0392 shares
      2,145  
   
Principal Real Estate Securities R5 Fund
 
 67.8636 shares
      1,069  
   
Russell International Developed Markets E Fund
 
 93.1662 shares
      2,955  
   
Russell US Core Equity E Fund
 
 67.2073 shares
      1,876  
   
Russell US Quantitative Equity E Fund
 
 65.5413 shares
      1,876  
   
Russell US Small & Mid Cap E Fund
 
 35.1033 shares
      800  
   
Total Moderate Portfolio Fund
          26,874  
                   
*  
Principal Financial Group - Aggressive Portfolio Fund:
             
   
Principal Core Plus Bond I R5 Fund
 
 8988.6082 shares
      97,616  
   
Principal LargeCap S&P 500 Index R5 Fund
 
 8739.3616 shares
      77,780  
   
Principal Real Estate Securities R5 Fund
 
 1845.3546 shares
      29,064  
   
Russell Emerging Markets E Fund
 
 939.3921 shares
      19,521  
   
Russell International Developed Markets E Fund
 
 2917.3504 shares
      92,538  
   
Russell US Core Equity E Fund
 
 2610.7912 shares
      72,894  
   
Russell US Quantitative Equity E Fund
 
 2546.0671 shares
      72,894  
   
Russell US Small & Mid Cap E Fund
 
 1060.564 shares
      24,160  
   
Total Aggressive Portfolio Fund
          486,467  
                   
*  
Principal Financial Group - Equity Aggressive Portfolio Fund:
             
   
Principal LargeCap S&P 500 Index R5 Fund
 
 7737.5991 shares
      68,865  
   
Principal Real Estate Securities R5 Fund
 
 1051.651 shares
      16,564  
   
Russell Emerging Markets E Fund
 
 688.32 shares
      14,303  
   
Russell International Developed Markets E Fund
 
 1800.0998 shares
      57,099  
   
Russell US Core Equity E Fund
 
 1190.3013 shares
      33,233  
   
Russell US Quantitative Equity E Fund
 
 1160.7928 shares
      33,234  
   
Russell US Small & Mid Cap E Fund
 
 621.6712 shares
      14,162  
   
Total Equity Aggressive Portfolio Fund
          237,460  
                   
*  
Notes Receivable from Participants
 
4.25% - 9.25% rate Maturities through July 2020
      85,149  
                   
                   
               
 $2,426,654
 
 
(d) Investments are participant directed; therefore, cost information is not required.
 
* Indicates party-in-interest to the Plan
 
 
13

 
Signature
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
 
United Security Bank Cash or Deferred Ownership Plan
 
June 29, 2010
 
By: /s/ Richard B. Shupe
Senior Vice President
and Chief Financial Officer of United Security Bank
 
 
14

 
EXHIBIT INDEX

EXHIBIT
 
NUMBER
EXHIBIT
   
Consent of Moss Adams LLP
 
 
15