UNITED BANCSHARES, INC. ANNOUNCES FIRST QUARTER 2024 RESULTS AND $0.22 DIVIDEND
- Quarterly cash dividend declared of
$0.22 per share for shareholders of record onMay 31, 2024 , payable onJune 14, 2024 . Based on the average closing price for the first quarter, this is a 4.64% dividend yield. - Net income of
$1.8 million or$0.61 per share for the 2024 first quarter ($1.2 million or$0.39 per share when excluding a$435,000 mortgage loan reserve recapture and a$291,000 provision for credit loss reversal). This is in line with$1.9 million or$0.60 per share in the comparable period in 2023. - Return on average assets of 0.69% for the 2024 first quarter (0.44% when excluding a
$435,000 mortgage loan reserve recapture and a$291,000 provision for credit loss reversal). This is unchanged from the comparable period in 2023. - Return on average tangible equity of 11.33% for the 2024 first quarter (7.28% when excluding a
$435,000 mortgage loan reserve recapture and a$291,000 provision for credit loss reversal). This is down from 13.43% in the comparable period in 2023. - Net interest margin of 3.03% for the 2024 first quarter, down from 3.53% in the comparable period in 2023.
- Asset quality metrics remain strong with stable non-performing and classified loans. Charge-offs remain at historically low levels through
March 31, 2024 .
About
Since 1904,
Quarterly Report
March 31, 2024
A Letter to Our Shareholders, Clients, and Team Members:
Despite a continued difficult operating environment, your Company is reporting pre-tax income of approximately
As compared to the same quarter of last year, earnings for the quarter were suppressed by significant headwinds in net interest income, which decreased by
I am also pleased to report that the Board of Directors declared a
While we expect a challenging operating environment to continue to have a negative impact on your company's earnings throughout 2024 and into 2025, we believe that continued efforts on cost controls, new loan originations, and upward repricing of existing loans through this cycle will offset some of that marginal earnings pressure. 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,
President & CEO
Financial Information (Unaudited)
|
|
|
|
|
Cash and cash equivalents |
$ 27,448,000 |
|
$ 26,915,000 |
|
Securities |
247,643,000 |
|
253,588,000 |
|
Loans |
705,145,000 |
|
708,828,000 |
|
Less allowance for loan loss |
(8,575,000) |
|
(8,876,000) |
|
Other assets |
92,103,000 |
|
91,043,000 |
|
Total Assets |
|
|
|
|
|
|
|
|
|
Deposits |
$ 948,951,000 |
|
$ 952,845,000 |
|
Borrowings |
17,802,000 |
|
18,043,000 |
|
Other liabilities |
6,036,000 |
|
6,686,000 |
|
Total Liabilities |
972,789,000 |
|
977,574,000 |
|
|
|
|
|
|
Common stock and surplus |
21,266,000 |
|
21,109,000 |
|
Retained earnings |
119,464,000 |
|
118,300,000 |
|
Accumulated other comprehensive (loss) |
(33,852,000) |
|
(30,658,000) |
|
|
(15,903,000) |
|
(14,827,000) |
|
Total shareholders' equity |
90,975,000 |
|
93,924,000 |
|
|
|
|
|
|
Total Liabilities and Shareholders' |
|
|
|
|
|
|
|
|
|
Common shares outstanding |
2,991,475 |
|
3,036,757 |
|
Book value |
|
|
|
|
Tangible book value (non-GAAP) |
|
|
|
|
Closing price |
|
|
|
|
Allowance for credit losses to loans (end of |
1.22 % |
|
1.26 % |
|
Loans to deposits (end of period) |
74.06 % |
|
74.16 % |
|
|
|
|
|
|
|
3 months ended |
|
3 months ended |
|
|
|
|
Interest income |
|
|
|
Interest expense |
4,723,000 |
|
2,624,000 |
Net interest income |
7,148,000 |
|
8,559,000 |
|
|
|
|
Provision for loan losses |
(291,000) |
|
(26,000) |
Net interest income after provision |
7,439,000 |
|
8,585,000 |
|
|
|
|
Non-interest income |
2,279,000 |
|
1,743,000 |
Non-interest expense |
7,787,000 |
|
8,356,000 |
Income before federal income taxes |
1,931,000 |
|
1,972,000 |
|
|
|
|
Federal income taxes |
98,000 |
|
87,000 |
Net Income |
|
|
|
|
|
|
|
Average common shares outstanding |
3,026,556 |
|
3,130,198 |
|
|
|
|
Per Share Data: |
|
|
|
Net income |
|
|
|
Cash dividends declared |
|
|
|
Dividend yield (annualized) |
4.66 % |
|
4.63 % |
|
|
|
|
Performance Ratios: |
|
|
|
Return on average assets |
0.69 % |
|
0.69 % |
Return on average shareholders' equity |
7.97 % |
|
8.86 % |
Return on average tangible shareholders' equity |
11.33 % |
|
13.43 % |
Net interest margin |
3.03 % |
|
3.53 % |
|
|
|
|
Credit Quality and Other Ratios: |
|
|
|
Net loan charge-offs (recoveries) as a |
0.00 % |
|
-0.02 % |
|
|
Directors
Herbert H. Huffman III
Officers
|
Directors
Herbert H. Huffman III
Dr.
|
Investor Materials
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