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United Bancshares Inc

UNITED BANCSHARES, INC. ANNOUNCES THIRD QUARTER 2024 RESULTS AND $0.22 DIVIDEND

COLUMBUS GROVE, Ohio , Oct. 17, 2024 /PRNewswire/ -- United Bancshares, Inc. (OTCQX: UBOH)

  • A quarterly cash dividend declared of $0.22 per share for shareholders of record on November 29, 2024, payable on December 16, 2024. Based on the average closing price for the third quarter, this is a 4.50% dividend yield.
  • Net income of $2.5 million or $0.83 per share for the 2024 third quarter. This is a $494,000 increase from $2.0 million or $0.65 per share in the comparable period in 2023. YTD 2024 net income of $6.1 million or $2.05 per share, down slightly from $6.3 million net income, but up from $2.03 per share YTD 2023.
  • Return on average assets of 0.83% for the 2024 third quarter, an increase from 0.73% in the comparable period in 2023. YTD 2024 return on average assets of 0.73%, down from 0.77% YTD 2023.
  • Return on average tangible equity of 14.96% for the 2024 third quarter, up from 14.12% in the comparable period in 2023. YTD 2024 return on average tangible equity of 12.85%, down from 14.78% YTD 2023.
  • The net interest margin is 3.12% for the 2024 third quarter, down from 3.42% in the comparable period in 2023. YTD 2024 net interest margin of 3.09%, down from 3.47% YTD 2023.
  • Loan growth of $13.4 million, up 2.53% annualized from December 31, 2023.
  • Deposit growth of $154.4 million, up 21.60% annualized from December 31, 2023.
  • Asset quality metrics remain strong with stable non-performing and classified loans. Charge-offs remain at historically low levels through September 30, 2024.

About The Union Bank Company:
 Since 1904, The Union Bank Company has been here to provide full-service banking to the people and businesses throughout the communities we serve. Today, the bank has 14 full-service branch locations across Northwest and Central Ohio, including Bowling Green, Columbus Grove,  Delphos , Findlay, Gibsonburg , Kalida , Leipsic , Lewis Center, Lima, Marion, Ottawa, Paulding and Pemberville . We have Interactive Teller Machines (ITMs) located at all of our branch locations with additional ITM only locations in Gahanna, Lima, Marion and Westerville. The Union Bank Company is headquartered in Columbus Grove, Ohio, and remains committed to providing the very best banking service and products to all the communities we serve. Learn more at www.theubank.com. 

United Bancshares, Inc.
Quarterly Report
 September 30, 2024

Shareholders, Clients, and Team Members: 

I am pleased to report that, as a direct result of the ongoing efforts of the Company's dedicated team members, your Company reported positive results for the three- and nine-month periods ending September 30, 2024. The third quarter improvements include net income of $0.83 per share, income before taxes of $2.7 million, return on average assets of 0.83%, and return on average tangible equity of 14.96%, which all were increases as compared to the same period in 2023. Year-to-date results include income before taxes of $6.6 million, return on average assets of 0.73%, and return on average tangible equity of 12.85%.

We reported significant growth of $154 million and $149 million in our deposit and cash positions, respectively. Of those increases, $100 million was from the Ohio Treasurer through the Bank's participation in the Treasurer's Ohio Homebuyer Plus program. We expect the Treasurer's deposits to reduce throughout 2025 and land around $30 million by the end of 2025. Additionally, the Company reported a 2.53% annualized growth in loans during the first nine months of 2024.

I am also pleased to report that the Board of Directors declared a $0.22 per common share dividend payable December 16, 2024, to shareholders of record at the close of business on November 29, 2024. The dividend is 27% of the reported net income for the third quarter of 2024.

The efforts of the team and our strong corporate values of respect for and accountability to our shareholders, clients, colleagues, and communities are the foundation for the continued success of your Company. Thank you for your ongoing support and the trust you have placed in us.

Respectfully,

Brian D. Young
President & CEO


Financial Information (Unaudited)

September 30, 2024


December 31, 2023

Cash and cash equivalents

$    175,997,000


$       26,915,000

Securities

249,914,000


253,588,000

Loans

722,274,000


708,828,000

Less allowance for credit losses

(8,331,000)


(8,876,000)

Other assets

90,829,000


91,043,000

Total Assets

$1,230,683,000


$1,071,498,000





Deposits

$  1,107,211,000


$     952,845,000

Borrowings

17,319,000


18,043,000

Other liabilities

6,221,000


6,686,000

Total Liabilities

1,130,751,000


977,574,000





Common stock and surplus

21,418,000


21,109,000

Retained earnings

122,455,000


118,300,000

Accumulated other comprehensive loss

(27,498,000)


(30,658,000)

Treasury stock

(16,443,000)


(14,827,000)

Total shareholders' equity

99,932,000


93,924,000





Total Liabilities and Shareholders' Equity

$1,230,683,000


$1,071,498,000





Common shares outstanding

2,977,310


3,036,757

Book value

$33.56


$30.93

Tangible book value (non-GAAP)

$23.95


$21.43

Closing price

$19.80


$19.26

Allowance for credit losses to loans (end of period)

1.16 %


1.26 %

Net loans to deposits (end of period)

64.48 %


73.46 %

 

3 months

ended


3 months

ended


9 months

ended


9 months

ended


Sept 30,

2024


Sept30,

2023


Sept 30,

2024


Sept 30,

2023

Interest income

$14,330,000


$11,975,000


$38,703,000


$34,998,000

Interest expense

5,986,000


3,801,000


15,762,000


9,833,000

Net interest income

8,344,000


8,174,000


22,941,000


25,165,000









Provision for credit losses

(288,000)


3,000


(769,000)


(93,000)

Net interest income after provision

8,632,000


8,171,000


23,710,000


25,258,000









Non-interest income

2,113,000


1,757,000


6,418,000


5,623,000

Non-interest expense

8,050,000


7,807,000


23,520,000


24,163,000

Income before federal income taxes

2,695,000


2,121,000


6,608,000


6,718,000









Federal income taxes

226,000


146,000


474,000


452,000

Net Income

$2,469,000


$1,975,000


$6,134,000


$6,266,000









Average common shares outstanding

2,980,554


3,058,686


2,999,048


3,085,189









Per Share Data:








Net income (basic)

$0.83


$0.65


$2.05


$2.03

Cash dividends declared

$0.22


$0.22


$0.66


$0.66

Dividend yield (annualized)

4.50 %


4.69 %


4.62 %


4.60 %









Performance Ratios:








Return on average assets

0.83 %


0.73 %


0.73 %


0.77 %

Return on average shareholders' equity

10.58 %


9.31 %


8.98 %


9.77 %

Return on average tangible shareholders' equity

14.96 %


14.12 %


12.85 %


14.78 %

Net interest margin

3.12 %


3.42 %


3.09 %


3.47 %

Net loan charge-offs (recoveries) as a percentage

of average outstanding net loans

0.00 %


-0.01 %


0.00 %


-0.01 %

 

United Bancshares, Inc

 

Directors

Robert L. Benroth

Herbert H. Huffman III

H. Edward Rigel

David P. Roach

Daniel W. Schutt, Chairman

R. Steven Unverferth

Brian D. Young

 

Officers

Brian D. Young, President/CEO

Denise E. Giesige, Secretary

Klint D. Manz, CFO

The Union Bank Co.

 

Directors

Robert L. Benroth

Anthony M. V. Eramo

Herbert H. Huffman III

Kevin L. Lammon

William R. Perry

H. Edward Rigel

David P. Roach

Carol R. Russell

Daniel W. Schutt

R. Steven Unverferth

Dr. Jane M. Wood

Brian D. Young, Chairman

Investor Materials
 United Bancshares, Inc. has traded its common stock on the OTCQX Markets Exchange under the symbol "UBOH". Annual and quarterly shareholder reports, regulatory filings, press releases, and articles about United Bancshares, Inc. are available in the Investor Relations section of our website theubank.com or by calling 800-837-8111.

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SOURCE United Bancshares, Inc.