UNITED BANCSHARES, INC. ANNOUNCES FIRST QUARTER 2025 RESULTS AND $0.23 DIVIDEND
Rhea-AI Summary
United Bancshares (OTCQX: UBOH) has reported strong first quarter 2025 results, with net income of $2.8 million ($0.94 per share), marking a significant increase from $1.8 million ($0.61 per share) in Q1 2024. The company announced a quarterly cash dividend of $0.23 per share, representing a 4.5% increase and yielding 3.23% based on Q1 average closing price.
Key performance metrics showed notable improvements, with return on average assets rising to 0.94% from 0.69%, and return on average tangible equity increasing to 15.78% from 11.33% year-over-year. The net interest margin expanded to 3.59% from 3.03%. The bank achieved loan growth of $17.9 million (9.4% annualized) and deposit growth of $3.9 million (1.5% annualized) since December 2024, while maintaining strong asset quality with stable non-performing loans and historically low charge-offs.
Positive
- Net income increased by $959,000 to $2.8 million (52% YoY growth)
- Quarterly dividend increased by 4.5% to $0.23 per share
- Net interest margin improved significantly to 3.59% from 3.03%
- Strong loan growth at 9.4% annualized rate
- Return on average tangible equity increased to 15.78% from 11.33%
- Asset quality remains strong with historically low charge-offs
Negative
- Modest deposit growth of only 1.5% annualized rate
News Market Reaction 1 Alert
On the day this news was published, UBOH declined 0.37%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Quarterly cash dividend declared of
$0.23 4.5% increase, for shareholders of record on May 30, 2025, payable on June 16, 2025. Based on the average closing price for the first quarter, this is a3.23% dividend yield. - Net income of
$2.8 million $0.94 $959,000 $1.8 million $0.61 - Return on average assets of
0.94% for the 2025 first quarter, an increase from0.69% in the comparable period in 2024. - Return on average tangible equity of
15.78% for the 2025 first quarter, an increase from11.33% in the comparable period in 2024. - Net interest margin of
3.59% for the 2025 first quarter, an increase from3.03% in the comparable period in 2024. - Loan growth of
$17.9 million 9.4% from December 31, 2024. - Deposit growth of
$3.9 million 1.5% from December 31, 2024. - Asset quality metrics remain strong with stable non-performing and classified loans. Charge-offs remain at historically low levels through March 31, 2025.
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
Contact:
Brian D. Young, President and CEO
Klint D. Manz, Chief Financial Officer
419.659.2141
United Bancshares, Inc.
Quarterly Report
March 31, 2025
Shareholders, Clients, and Team Members:
I am pleased to report that your Company had a strong start to 2025 with reported net income of
As a result of these successes, the Board of Directors declared a
Throughout 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. Management also intends to continue to repurchase shares as opportunities to create value for our shareholders present themselves.
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
March 31, 2025 | December 31, 2024 | ||
Cash and cash equivalents | $ 92,368,000 | $ 95,283,000 | |
Securities | 228,827,000 | 242,069,000 | |
Loans | 784,925,000 | 766,987,000 | |
Less allowance for credit losses | (8,268,000) | (7,937,000) | |
Other assets | 98,675,000 | 92,928,000 | |
Total Assets | |||
Deposits | |||
Borrowings | 16,836,000 | 17,091,000 | |
Other liabilities | 6,279,000 | 6,394,000 | |
Total Liabilities | 1,098,098,000 | 1,094,590,000 | |
Common stock and surplus | 21,758,000 | 21,461,000 | |
Retained earnings | 126,961,000 | 124,822,000 | |
Accumulated other comprehensive (loss) income | (33,426,000) | (34,786,000) | |
Treasury stock | (16,864,000) | (16,757,000) | |
Total shareholders' equity | 98,429,000 | 94,740,000 | |
Total Liabilities and Shareholders' Equity | |||
Common shares outstanding | 2,983,571 | 2,964,007 | |
Book value | |||
Tangible book value (non-GAAP) | |||
Closing price | |||
Allowance for credit losses to loans (end of period, excluding LHFS) | 1.06 % | 1.04 % | |
Loans to deposits | 73.02 % | 71.61 % |
3 months ended | 3 months ended | |||
March 31, 2025 | March 31, 2024 | |||
Interest income | ||||
Interest expense | 4,641,000 | 4,723,000 | ||
Net interest income | 9,543,000 | 7,148,000 | ||
Provision for credit losses | 93,000 | (291,000) | ||
Net interest income after provision | 9,450,000 | 7,439,000 | ||
Non-interest income | 1,801,000 | 2,279,000 | ||
Non-interest expense | 8,124,000 | 7,787,000 | ||
Income before federal income taxes | 3,127,000 | 1,931,000 | ||
Federal income taxes | 335,000 | 98,000 | ||
Net Income | ||||
Average common shares outstanding | 2,968,959 | 3,026,556 | ||
Per Share Data: | ||||
Net income (basic) | ||||
Cash dividends declared | ||||
Dividend yield (annualized) based on quarterly avg closing price | 3.23 % | 4.66 % | ||
Performance Ratios: | ||||
Return on average assets | 0.94 % | 0.69 % | ||
Return on average tangible shareholders' equity | 15.78 % | 11.33 % | ||
Net interest margin | 3.59 % | 3.03 % | ||
Credit Quality and Other Ratios: | ||||
Net loan charge-offs (recoveries) as a | (0.13 %) | 0.00 % | ||
United Bancshares, Inc
Directors Robert L. Benroth Herbert H. Huffman III H. Edward Rigel 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 John P. Miller William R. Perry H. Edward Rigel 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.
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