COLUMBUS GROVE, Ohio, Jan. 23, 2025 /PRNewswire/ — United Bancshares, Inc. (OTCQX: UBOH)
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 17th for shareholders of record on February 28th. 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
ended
3 months
ended
12 months
ended
12 months
ended
Dec 31,
2024
Dec 31,
2023
Dec 31,
2024
Dec 31,
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 %
Return on average
tangible shareholders’ equity
17.27 %
19.28 %
14.06 %
15.82 %
Net interest margin
3.39 %
3.37 %
3.17 %
3.45 %
Net loan charge-offs
(recoveries) as a percentage of
average outstanding net loans
0.01 %
0.00 %
0.00 %
-0.01 %
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
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.
