UNITED BANCSHARES, INC. ANNOUNCES FOURTH QUARTER AND FULL YEAR 2024 RESULTS AND $0.22 DIVIDEND

PR Newswire

COLUMBUS GROVE, Ohio, Jan. 23, 2025

COLUMBUS GROVE, Ohio, Jan. 23, 2025 /PRNewswire/ -- United Bancshares, Inc. (OTCQX: UBOH)

   -- Quarterly cash dividend declared of $0.22 per share for shareholders of 
      record on February 28, 2025, payable on March 17, 2025. Based on the 
      average closing price for the fourth quarter, this is a 3.93% dividend 
      yield. 
 
   -- Net income of $3.0 million or $1.02 per share for the 2024 fourth 
      quarter. This is a $680,000 increase from $2.3 million or $0.77 per share 
      in the comparable period in 2023. YTD 2024 net income of $9.2 million or 
      $3.06 per share. This is a $549,000 increase from $8.6 million or $2.80 
      per share YTD 2023. 
 
   -- Return on average assets of 0.98% for the 2024 fourth quarter, an 
      increase from 0.88% in the comparable period in 2023. YTD 2024 return on 
      average assets of 0.80%, up slightly from 0.79% YTD 2023. 
 
   -- Return on average tangible equity of 17.27% for the 2024 fourth quarter, 
      down from 19.28% in the comparable period in 2023. YTD 2024 return on 
      average tangible equity of 14.06%, down from 15.82% YTD 2023. 
 
   -- Net interest margin of 3.39% for the 2024 fourth quarter, increase from 
      3.37% in the comparable period in 2023. YTD 2024 net interest margin of 
      3.17%, down from 3.45% YTD 2023. 
 
   -- Loan growth of $58.2 million, up 8.2% from December 31, 2023. 
 
   -- Deposit growth of $118.3 million, up 12.4% from December 31, 2023. 
 
   -- Asset quality metrics remain strong with stable non-performing and 
      classified loans. Charge-offs remain at historically low levels through 
      December 31, 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 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

December 31, 2024

Shareholders, Clients, and Team Members:

Despite the continued challenges to the banking industry throughout 2024, I am pleased to report that your Company had a successful fourth quarter and year. In addition to reporting net income of approximately $3.0 million ($1.02/share) and $9.2 million ($3.06/share) for the fourth quarter and 2024, respectively, the Company had a return on average tangible equity of 17.27% and 14.06%, for those same periods, respectively.

The Company also reported $58.2 million in loan growth (8.2%) and $118.3 million in deposit growth (12.4%) for the twelve-month period ending December 31, 2024. As a result of these successes, the Board of Directors declared a $0.22 per share quarterly dividend payable on March 17(th) for shareholders of record on February 28(th) . The dividend is 21.6% of the reported net income for the fourth quarter of 2024.

The fourth quarter's performance provides significant momentum as we move into 2025. This momentum follows 18 consecutive months (November 2022 to April 2024) of declining margin income as the result of the rapid increase in short-term interest rates. Additionally, the resulting inverted yield curve, coupled with management's decision to remain very disciplined on loan pricing, impaired loan growth during that time.

The Company began to see margin improvement in May of 2024. The rapid increase in margin income over the remaining seven months of 2024 was the result of increasing numbers of loans repricing to market interest rates, the company's quick response to the opportunity to get significantly below market interest rate deposits through the Ohio Homebuyer Plus program, and a 12.5% annualized increase in loans as the Company began to take advantage of tighter liquidity in the market and the availability of elevated loan interest rates. Additionally, as the result of our ongoing evaluation of the risk in our loan portfolio, management also reported a decrease of $345,000 and $1.1 million in its Allowance for Credit Loss ("ACL") reserve for the fourth quarter and year, respectively.

In 2025, we plan to continue to grow the number and size of client relationships, introduce an all-new digital platform for our clients, provide clients weekday access to a live teller from 7am -- 7pm at all our locations as well as online chat, and identify new technology to create internal efficiencies. While we expect to offer all these services and technology enhancements, we do not expect to see an increase in costs because of new and renegotiated vendor contracts and technology implementation. We believe that effectively implementing technology will promote growth and provide the opportunity to increase the effectiveness of our team members in serving our clients.

While the fourth quarter brought numerous positives to the Company, it is with a heavy heart that I share that David Roach, a Director at United Bancshares, Inc. and The Union Bank Company since 2001, passed away in December 2024. Dave blessed us with his never-ending encouragement, kindness, humility and compassion. We will continue his legacy as we serve others throughout our Company and our communities and jointly share our condolences to his wife, daughters and his entire family.

The continued accomplishments of your Company are the undeniable result of the ongoing efforts of the Company's dedicated team members and Board of Directors in implementing our Strategic Plan. Their efforts 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)

 
                                        December 31, 2024  December 31, 2023 
Cash and cash equivalents                $     95,283,000  $      26,915,000 
Securities                                    242,069,000        253,588,000 
Loans                                         766,987,000        708,828,000 
Less allowance for credit losses              (7,937,000)        (8,876,000) 
Other assets                                   92,928,000         91,043,000 
Total Assets                               $1,189,330,000     $1,071,498,000 
 
Deposits                                  $ 1,071,105,000   $    952,845,000 
Borrowings                                     17,091,000         18,043,000 
Other liabilities                               6,394,000          6,686,000 
Total Liabilities                           1,094,590,000        977,574,000 
 
Common stock and surplus                       21,461,000         21,109,000 
Retained earnings                             124,822,000        118,300,000 
Accumulated other comprehensive loss         (34,786,000)       (30,658,000) 
Treasury stock                               (16,757,000)       (14,827,000) 
Total shareholders' equity                     94,740,000         93,924,000 
 
Total Liabilities and Shareholders' 
 Equity                                    $1,189,330,000     $1,071,498,000 
 
Common shares outstanding                       2,964,007          3,036,757 
Book value                                         $31.96             $30.93 
Tangible book value (non-GAAP)                     $22.28             $21.43 
Closing price                                      $31.00             $19.26 
Allowance for credit losses to loans 
 (end of period)                                   1.04 %             1.26 % 
Net loans to deposits (end of period)             71.61 %            74.39 % 
 
 
                       3 months     3 months     12 months    12 months 
                         ended        ended        ended        ended 
                        Dec 31,      Dec 31,      Dec 31,      Dec 31, 
                          2024         2023         2024         2023 
Interest income       $14,581,000  $12,203,000  $53,284,000  $47,201,000 
Interest expense        5,223,000    4,261,000   20,985,000   14,094,000 
Net interest income     9,358,000    7,942,000   32,299,000   33,107,000 
 
Provision for credit 
 losses                 (345,000)    (298,000)  (1,114,000)    (391,000) 
Net interest income 
 after provision        9,703,000    8,240,000   33,413,000   33,498,000 
 
Non-interest income     2,001,000    1,752,000    8,419,000    7,375,000 
Non-interest expense    8,396,000    7,421,000   31,915,000   31,584,000 
Income before 
 federal income 
 taxes                  3,308,000    2,571,000    9,917,000    9,289,000 
 
Federal income taxes      288,000      231,000      762,000      683,000 
Net Income             $3,020,000   $2,340,000   $9,155,000   $8,606,000 
 
Average common 
 shares outstanding     2,969,997    3,035,282    2,991,687    3,072,468 
 
Per Share Data: 
Net income (basic)          $1.02        $0.77        $3.06        $2.80 
Cash dividends 
 declared                   $0.22        $0.22        $0.88        $0.88 
Dividend yield 
 (annualized) based 
 on quarterly avg. 
 closing price             3.93 %       4.99 %       4.42 %       4.70 % 
 
Performance Ratios: 
Return on average 
 assets                    0.98 %       0.88 %       0.80 %       0.79 % 
Return on average 
 shareholders' 
 equity                   12.42 %      12.09 %       9.91 %      10.33 % 

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