UNITED BANCSHARES, INC. ANNOUNCES SECOND QUARTER 2026 RESULTS AND $0.26 DIVIDEND
Rhea-AI Summary
United Bancshares (OTCQX: UBOH) reported second quarter 2026 net income of $1.7 million or $0.61 per share, compared with $3.1 million or $1.05 per share a year earlier, reflecting a $3.8 million pre-tax loss on the sale of approximately $40 million of investment securities.
According to the company, excluding this loss and leverage-related margin, estimated Q2 earnings would have been about $4.5 million or $1.64 per share. Year-to-date 2026 net income was $5.3 million ($1.94 per share) versus $5.9 million in 2025. The Board declared a quarterly cash dividend of $0.26 per share, a 13% increase from the same quarter in 2025, payable September 15, 2026 to shareholders of record on August 31, 2026.
During the quarter, the company issued $30 million of subordinated debt, transferred $27 million to Union Bank, and leveraged this into about $250 million of additional investment securities. Net interest margin rose to 4.00% from 3.71% in Q2 2025, loans grew $38.4 million (9.30% annualized) and deposits increased $133.8 million, while asset quality measures and charge-offs remained stable.
Positive
- Quarterly dividend raised 13% to $0.26 per share
- Net interest margin improved to 4.00% from 3.71% year over year
- Loans up $38.4 million, a 9.30% annualized growth rate YTD 2026
- Deposits increased $133.8 million from December 31, 2025
- Book value per share increased to $40.72 from $38.47
- Tangible book value per share rose to $30.07 from $28.76
Negative
- Q2 2026 net income fell to $1.7 million from $3.1 million
- Non-interest income swung to -$2.1 million from $1.8 million in Q2 2025
- Year-to-date net income declined to $5.3 million from $5.9 million
- Return on average assets decreased to 0.50% from 1.04% in Q2 2025
- Pre-tax securities loss of $3.8 million recorded on $40 million sale
- Borrowings increased to $138.4 million from $16.6 million at year-end 2025
News Market Reaction – UBOH
In the Jul 23 session, UBOH gained 1.99%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
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- Quarterly cash dividend of
$0.26 13% increase from same quarter in 2025.
- Issued a
$30 million $250 million
- Executed an approximate
$40 million $3.8 million $3.0 million
- Company reported net income of
$1.7 million $.61 /share) for the second quarter of 2026. With the exclusion of the securities loss and any related leverage in the second quarter, management estimates that your company would have generated approximately$4.5 million $1.64 $5.3 million $1.94
- Company reported return on tangible capital of
8.3% and13.1% for the second quarter and first half of 2026.
- Net interest margin of
4.00% for the second quarter of 2026, an increase from3.71% in the comparable period in 2025. YTD 2026 net interest margin of4.00% , is up from3.65% YTD 2025.
- Loan growth of
$38.4 million 9.30% from December 31, 2025.
- Deposits increased
$133.8 million $41.9 million $51.9 million $12.3 million $28.7 million 5.85% annualized growth from December 31, 2025.
- Asset quality metrics remain strong with stable non-performing and classified loans. Charge-offs remain at low levels through June 30, 2026.
Non‑GAAP Financial Measures
This release contains certain non‑GAAP financial measures, including return on average tangible equity. Tangible equity is defined as total shareholders' equity less goodwill and other intangible assets. Management believes these measures provide meaningful supplemental information to assess performance and capital adequacy and are useful to investors; however, they should not be viewed as a substitute for GAAP measures.
Cautionary Note Regarding Forward‑Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, to the extent applicable, including statements regarding future financial and operating results, loan and deposit growth, net interest margin, asset quality, capital, dividends, and strategy. Forward-looking statements can be identified by words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," "projects," "may," "will," "should," "could," "would," and similar expressions. Forward-looking statements are based on current expectations and assumptions as of the date of this release and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Factors that could cause actual results to differ include, among others: changes in interest rates and inflation; changes in monetary policy or actions by the Federal Reserve; competitive pressures; credit quality and economic conditions in our markets; liquidity and funding conditions; the ability to maintain or increase dividends at current levels; the ability to achieve projected loan and deposit growth; changes in capital requirements; cybersecurity incidents and technology failures; regulatory and accounting developments; and other risks described in the Company's public disclosures. The Company undertakes no obligation to update any forward-looking statements, except as required by law. These cautionary statements qualify all forward-looking statements attributable to the Company or persons acting on its behalf, whether written or oral.
About United Bancshares, Inc.
United Bancshares, Inc. (OTCQX: UBOH) is a financial holding company headquartered in
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
June 30, 2026
Shareholders, Clients, and Team Members:
I am pleased to report that the Company had a strong first half of 2026. During the second quarter, the Company made several decisions to reposition the balance sheet and leverage additional capital to enhance earnings and provide capital for future opportunities.
To accomplish these goals, the Company issued
Financial Performance Highlights. As a result of these decisions and continued growth in core relationships, the Bank reported net income and return on tangible capital of
Share Repurchase Program. As the Company continues to report positive movement in many of our financial metrics, we continue to believe that repurchasing our shares at appropriate levels brings long-term value to our shareholders. Throughout the first half of 2026, UBOH shares closed on the OTCQX market at an average price of
Brian D. Young, President & CEO
Phone: 419-879-6111
As a result of the Company's performance and a detailed review of the Company's capital position, earnings and risk profile, the Board of Directors declared a
And most importantly, thank you for your investment in United Bancshares, Inc., your ongoing support, and the trust you have placed in us. We are committed to adding financial value to your investment while improving the lives of those we serve.
Respectfully,
Brian D. Young
President & CEO
This letter contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those expressed or implied in such statements.
Financial Reports | |||
(unaudited) | |||
June 30, 2026 | December 31, 2025 | ||
Cash and cash equivalents | $ 57,893,000 | $ 51,833,000 | |
Securities | 435,962,000 | 227,895,000 | |
Loans | 863,514,000 | 825,129,000 | |
Less allowance for credit losses | (9,012,000) | (8,630,000) | |
Other assets | 99,159,000 | 97,170,000 | |
Total Assets | |||
Deposits | |||
Borrowings | 138,364,000 | 16,568,000 | |
Other liabilities | 9,064,000 | 7,431,000 | |
Total Liabilities | 1,336,969,000 | 1,079,735,000 | |
Common stock and surplus | 22,496,000 | 22,326,000 | |
Retained earnings | 138,125,000 | 134,117,000 | |
Accumulated other comprehensive (loss) income | (21,811,000) | (24,776,000) | |
Treasury stock | (28,263,000) | (18,005,000) | |
Total shareholders' equity | 110,547,000 | 113,662,000 | |
Total Liabilities and Shareholders' Equity | |||
Common shares outstanding | 2,714,656 | 2,954,518 | |
Book value | |||
Tangible book value (non-GAAP) | |||
Closing price | |||
Allowance for credit losses to loans (end of period, excluding LHFS) | 1.05 % | 1.05 % | |
Loans to deposits | 72.59 % | 78.16 % | |
3 months ended | 3 months ended | 6 months ended | 6 months ended | ||||
June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||
Interest income | |||||||
Interest expense | 5,251,000 | 4,643,000 | 9,294,000 | 9,284,000 | |||
Net interest income | 11,992,000 | 9,903,000 | 22,793,000 | 19,446,000 | |||
Provision for credit losses | 101,000 | 235,000 | 390,000 | 328,000 | |||
Net interest income after provision | 11,891,000 | 9,668,000 | 22,403,000 | 19,118,000 | |||
Non-interest income | (2,117,000) | 1,803,000 | 47,000 | 3,604,000 | |||
Non-interest expense | 8,163,000 | 7,958,000 | 16,639,000 | 16,082,000 | |||
Income before federal income taxes | 1,611,000 | 3,513,000 | 5,811,000 | 6,640,000 | |||
Federal income taxes | (60,000) | 387,000 | 462,000 | 722,000 | |||
Net Income | |||||||
Average common shares outstanding | 2,738,914 | 2,974,300 | 2,761,472 | 2,971,732 | |||
Per Share Data: | |||||||
Net income (basic) | |||||||
Cash dividends declared | |||||||
Performance Ratios: | |||||||
Return on average assets | 0.50 % | 1.04 % | 0.84 % | 0.99 % | |||
Return on average tangible shareholders' equity | 8.26 % | 17.33 % | 13.06 % | 16.56 % | |||
Net interest margin | 4.00 % | 3.71 % | 4.00 % | 3.65 % | |||
Credit Quality and Other Ratios: | |||||||
Net loan charge-offs (recoveries) as a percentage of average outstanding net loans | 0.01 % | 0.00 % | 0.02 % | (0.06 %) | |||
United Bancshares, Inc Directors Robert L. Benroth Herbert H. Huffman III Kevin L. Lammon R. Steven Unverferth Brian D. Young, Chairman Officers Brian D. Young, President/CEO Jane M. Wood, 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 Carol R. Russell R. Steven Unverferth 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.