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

COLUMBUS GROVE, Ohio, July 18, 2024 /PRNewswire/ — United Bancshares, Inc. (OTCQX: UBOH)

Quarterly cash dividend declared of $0.22 per share for shareholders of record on August 30, 2024, payable on September 16, 2024. Based on the average closing price for the second quarter, this is a 4.73% dividend yield.
Net income of $1.8 million or $0.61 per share for the 2024 second quarter. This is down from $2.4 million or $0.78 per share in the comparable period in 2023. YTD 2024 net income of $3.7 million or $1.22 per share, down from $4.3 million or $1.38 YTD 2023.
Return on average assets of 0.68% for the 2024 second quarter, down from 0.88% in the comparable period in 2023. YTD 2024 return on average assets of 0.68%, down from 0.78% YTD 2023.
Return on average tangible equity of 12.27% for the 2024 second quarter, down from 16.70% in the comparable period in 2023. YTD 2024 return on average tangible equity of 11.78%, down from 15.09% YTD 2023.
Net interest margin of 3.12% for the 2024 second quarter, down from 3.47% in the comparable period in 2023. YTD 2024 net interest margin of 3.07%, down from 3.50% YTD 2023.
Loan growth of $12.1 million, up 3.42% annualized from December 31, 2023.
Deposit growth of $77.4 million, up 16.25% 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 June 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 grown to include 18 offices across Northwest and Central Ohio, including Bowling Green, Columbus Grove, Delphos, Findlay, Gahanna, Gibsonburg, Kalida, Leipsic, Lewis Center, Lima, Marion, Ottawa, Paulding, Pemberville 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 ReportJune 30, 2024

Shareholders, Clients, and Team Members: 

Despite being in a historically long period of time with an inverted yield curve which has decimated net interest income at your Company and throughout our industry, your Company is reporting pre-tax income of approximately $3.9 million (11.78% return on average tangible shareholders’ equity) for the six months ended June 30, 2024. 

In addition to the Company’s continued strong liquidity position and asset quality metrics, during the first six months, we were able to opportunistically repurchase shares, redeploy investment securities into client loans, grow deposits, and stabilize deposit costs. Those results enabled the Company to have positive net interest income momentum going into the second half of 2024 for the first time in 18 months.

I am also pleased to report that the Board of Directors declared a $0.22 per common share dividend payable September 16, 2024, to shareholders of record at the close of business on August 30, 2024. The dividend is approximately 36% of the reported net income for the second 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)

June 30, 2024

December 31, 2023

Cash and cash equivalents

$     97,230,0000

$       26,915,000

Securities

242,222,000

253,588,000

Loans

720,941,000

708,828,000

Less allowance for credit losses

(8,490,000)

(8,876,000)

Other assets

93,073,000

91,043,000

Total Assets

$1,144,976,000

$1,071,498,000

Deposits

$  1,030,273,000

$     952,845,000

Borrowings

17,560,000

18,043,000

Other liabilities

6,216,000

6,686,000

Total Liabilities

1,054,049,000

977,574,000

Common stock and surplus

21,413,000

21,109,000

Retained earnings

120,643,000

118,300,000

Accumulated other comprehensive (loss) income

(34,786,000)

(30,658,000)

Treasury stock

(16,343,000)

(14,827,000)

Total shareholders’ equity

90,927,000

93,924,000

Total Liabilities and Shareholders’ Equity

$1,144,976,000

$1,071,498,000

Common shares outstanding

2,982,236

3,036,757

Book value

$30.49

$30.93

Tangible book value (non-GAAP)

$20.89

$21.43

Closing price

$18.80

$19.26

Allowance for credit losses to loans (end of period)

1.19 %

1.26 %

Loans to deposits (end of period)

69.42 %

74.16 %

3 months
ended

3 months
ended

6 months
ended

6 months
ended

June 30, 2024

June 30, 2023

June 30, 2024

June 30, 2023

Interest income

$12,502,000

$11,840,000

$24,373,000

$23,023,000

Interest expense

5,053,000

3,408,000

9,776,000

6,032,000

Net interest income

7,449,000

8,432,000

14,597,000

16,991,000

Provision for credit losses

(190,000)

(70,000)

(481,000)

(96,000)

Net interest income after provision

7,639,000

8,502,000

15,078,000

17,087,000

Non-interest income

2,026,000

2,123,000

4,305,000

3,865,000

Non-interest expense

7,683,000

8,000,000

15,470,000

16,355,000

Income before federal income taxes

1,982,000

2,625,000

3,913,000

4,597,000

Federal income taxes

150,000

219,000

248,000

306,000

Net Income

$1,832,000

$2,406,000

$3,665,000

$4,291,000

Average common shares outstanding

2,990,805

3,068,605

3,008,541

3,098,891

Per Share Data:

Net income (basic)

$0.61

$0.78

$1.22

$1.38

Cash dividends declared

$0.22

$0.22

$0.44

$0.44

Dividend yield (annualized)

4.73 %

4.67 %

4.69 %

4.56 %

Performance Ratios:

Return on average assets

0.68 %

0.88 %

0.68 %

0.78 %

Return on average shareholders’ equity

8.42 %

11.12 %

8.19 %

10.00 %

Return on average tangible shareholders’ equity

12.27 %

16.70 %

11.78 %

15.09 %

Net interest margin

3.12 %

3.47 %

3.07 %

3.50 %

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 MaterialsUnited 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.

SOURCE United Bancshares, Inc.

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