United Bancshares declares $0.22 dividend amid strong Q3 2024 results

United Bancshares, Inc. (OTCQX: UBOH) declared a quarterly cash dividend of $0.22 per share, reflecting a robust 4.50% dividend yield based on its average Q3 closing price. The dividend is set for shareholders of record on November 29, 2024, with payment scheduled for December 16, 2024. This announcement follows the bank’s positive performance in Q3, underscoring its ongoing efforts to drive shareholder value.

Q3 2024 Performance Highlights

In Q3 2024, United Bancshares reported a net income of $2.5 million, translating to $0.83 per share. This figure marks a $494,000 increase from the same period in 2023, where net income stood at $2.0 million or $0.65 per share. Year-to-date (YTD) 2024 net income reached $6.1 million or $2.05 per share, a slight decrease compared to $6.3 million YTD 2023, though the per-share performance has seen improvement.

Financial Metrics Show Steady Growth

The company also demonstrated strong financial metrics:

• Return on Average Assets: 0.83% for Q3 2024, up from 0.73% in Q3 2023.
• Return on Average Tangible Equity: Increased to 14.96% in Q3 2024, from 14.12% in the same period in 2023.
• Net Interest Margin: 3.12% for Q3 2024, a slight decline from 3.42% in Q3 2023.

Despite a slight dip in the net interest margin, the overall performance illustrates the bank’s resilience in managing its asset base effectively.

Growth in Loans and Deposits

United Bancshares reported a loan growth of $13.4 million, equating to a 2.53% annualized increase from December 31, 2023. Additionally, deposits surged by $154.4 million, representing a significant 21.60% annualized growth rate within the same period.

The bank attributes much of its deposit growth to the Ohio Treasurer’s Ohio Homebuyer Plus program, which contributed $100 million to its balance. However, the bank expects these deposits to reduce to approximately $30 million by the end of 2025.

Strong Asset Quality Metrics and Low Charge-Off Rates

Asset quality remained robust, with stable non-performing and classified loans, while charge-offs remained at historically low levels through September 30, 2024. This indicates that United Bancshares has effectively managed its loan portfolio, minimizing risk exposure and maintaining a high-quality asset base.

CEO’s Outlook

Brian D. Young, President and CEO, expressed satisfaction with the Q3 results, crediting the company’s team for their dedication. He highlighted that the company has demonstrated resilience, with increases in net income, return on average assets, and return on tangible equity, all outpacing previous year metrics.

Financial Statements (As of September 30, 2024)

• Total Assets: $1.23 billion, up from $1.07 billion at the end of 2023.
• Cash and Cash Equivalents: $176 million, compared to $27 million in December 2023.
• Loans: Increased to $722 million from $709 million at year-end 2023.
• Deposits: Rose to $1.11 billion from $953 million as of December 31, 2023.

The company also noted a book value per share of $33.56, up from $30.93 at the end of the previous fiscal year, reflecting a strong equity position.

Key Ratios Indicate Positive Trajectory

• Return on Average Shareholders’ Equity: 10.58% in Q3 2024, up from 9.31% in Q3 2023.
• Net Loan Charge-Offs: Remained at 0.00%, maintaining the bank’s strong asset quality.
• Dividend Yield: Maintained a consistent payout with a 4.50% annualized yield for the quarter.

Future Outlook

While United Bancshares projects a reduction in deposit volumes tied to the Ohio Treasurer program in 2025, it remains optimistic about its loan growth and income-generating strategies. The company’s leadership emphasizes its commitment to shareholder returns, underpinned by its consistent dividend policy and strategic loan growth.