UNITED BANCSHARES, INC. ANNOUNCES FIRST QUARTER 2023 RESULTS AND $0.22 DIVIDEND

Rhea-AI Summary

United Bancshares, Inc. (OTC-PINK: UBOH) declared a quarterly cash dividend of $0.22 per share, a 4.8% increase from the prior year, payable on June 15, 2023, to shareholders of record on May 31, 2023. The first-quarter net income decreased to $1.9 million from $2.5 million year-over-year, reflecting basic earnings per share of $0.60, down from $0.77. Key performance metrics include a return on average assets of 0.69%, down from 0.94%, while return on average tangible equity rose to 13.44%. The bank experienced significant deposit growth of $22.3 million, and improved asset quality with a reduction in non-performing loans by 6.5%.

Positive

• Quarterly cash dividend of $0.22 per share, up 4.8% from last year.
• Deposit growth of $22.3 million, up 9.3% annualized.
• Return on average tangible equity increased to 13.44%.

Negative

• Net income declined to $1.9 million from $2.5 million year-over-year.
• Basic earnings per share decreased to $0.60 from $0.77.
• Return on average assets fell to 0.69% from 0.94%.

COLUMBUS GROVE, Ohio, April 20, 2023 /PRNewswire/ -- United Bancshares, Inc. (OTCQX: UBOH)

• Quarterly cash dividend declared of $0.22 per share for shareholders of record on May 31, 2023, payable on June 15, 2023. This dividend is up 4.8% from the prior year comparable period. Based on the average closing price for the first quarter, this is a 4.46% dividend yield.
• Net income of $1.9 million for 2023 first quarter, down from $2.5 million in the comparable period in 2022.
• Basic earnings per share of $0.60 for 2023 first quarter, down from $0.77 in the comparable period in 2022.
• Return on average assets of 0.69% for the 2023 first quarter, down from 0.94% in the comparable period in 2022.
• Return on average tangible equity of 13.44% for the 2023 first quarter, up from 11.96% in the comparable period in 2022.
• Net interest margin of 3.53% for the 2023 first quarter, up from 3.42% in the comparable period in 2022.
• Deposit growth of $22.3 million, excluding $28.7 million in brokered CDs, up 9.3% annualized from December 31, 2022.
• Asset quality improved with non-performing loans down 6.5% and classified loans down 4.1% from December 31, 2022.

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 grown to include 18 offices across Northwest and Central Ohio, including Bowling Green, Columbus Grove, Delphos, Findlay, Gahanna, Gibsonburg, Kalida, Leipsic, Lewis Center, Lima, Marion, Ottawa, Paulding, Pemberville 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.

Shareholders, Clients, and Team Members:

Despite a difficult operating environment, your Company is reporting pre-tax income of approximately $2 million for the quarter ended March 31, 2023. The Company reported 13.44% return on average tangible shareholders' equity, strong liquidity and asset quality metrics. The recent downward movement in long term treasury yields improved the Company's unrealized loss position and resulting tangible book value to $18.98 per share. Earnings of $0.60 per share for the quarter were suppressed by significant headwinds for our residential mortgage team and increased costs due to inflationary pressures, however, the bank has offset some of those headwinds by right sizing staffing levels with decreases of over 16% in the past five quarters.

I am pleased to report that the Board of Directors declared a $0.22 per common share dividend payable June 15, 2023, to shareholders of record at the close of business on May 31, 2023. The dividend is approximately 37% of the reported net income for the first quarter of 2023.

While we expect the headwinds and compressing margins to continue to have a negative impact on your Company's earnings throughout 2023 and into 2024, we believe that continued efforts on cost control, new loan volumes, and repricing of existing loans at market rates through this cycle will offset some of that earnings pressure. The efforts of the team 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 and CEO

 

Financial Information (Unaudited)
	March 31, 2023		December 31, 2022
Cash and cash equivalents	89,668,000		30,680,000
Securities	260,901,000		285,146,000
Loans	683,907,000		687,545,000
Less allowance for loan loss	(9,402,000)		(9,401,000)
Other assets	92,171,000		93,323,000
Total Assets	$1,117,245,000		$1,087,293,000
Deposits	1,004,884,000		953,883,000
Borrowings	18,768,000		44,088,000
Other liabilities	6,409,000		6,631,000
Total Liabilities	1,030,061,000		1,004,602,000
Common stock and surplus	20,934,000		20,862,000
Retained earnings	113,647,000		112,466,000
Accumulated other comprehensive (loss) income	(33,271,000)		(38,366,000)
Treasury stock	(14,126,000)		(12,271,000)
Total shareholders' equity	87,184,000		82,691,000
Total Liabilities and Shareholders' Equity	$1,117,245,000		$1,087,293,000
Common shares outstanding	3,067,883		3,153,368
	3 months ended		3 months ended
	March 31, 2023		March 31, 2022
Interest income	11,183,000		8,765,000
Interest expense	2,624,000		563,000
Net interest income	8,559,000		8,202,000
Provision for loan losses	(26,000)		-
Net interest income after provision	8,585,000		8,202,000
Non-interest income	1,743,000		3,081,000
Non-interest expense	8,356,000		8,399,000
Income before federal income taxes	1,972,000		2,884,000
Federal income taxes	87,000		364,000
Net Income	$1,885,000		$2,520,000
Average common shares outstanding	3,130,198		3,278,044
Per Share Data:
Net income	$0.60		$0.77
Cash dividends declared	$0.22		$0.21
Book value	$28.42		$30.30
Tangible book value (non-GAAP)	$18.98		$21.43
Closing price	$19.00		$32.02
Dividend yield (annualized)	4.63 %		2.62 %
Performance Ratios:
Return on average assets	0.69 %		0.94 %
Return on average shareholders' equity	8.86 %		8.89 %
Return on average tangible shareholders' equity	13.44 %		11.96 %
Net interest margin	3.53 %		3.42 %
Credit Quality and Other Ratios:
Net loan charge-offs (recoveries) as a percentage of average outstanding net loans	-0.02 %		-0.01 %
Allowance for loan losses to loans (end of period)	1.38 %		1.69 %
Loans to deposits (end of period)	67.76 %		65.01 %

 

United Bancshares, Inc   Directors Robert L. Benroth Herbert H. Huffman III H. Edward Rigel David P. Roach 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 David P. Roach 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.

FAQ

What is the dividend amount declared by United Bancshares, Inc. (UBOH) in April 2023?

The dividend amount declared is $0.22 per share.

When will the dividend for UBOH be paid?

The dividend will be payable on June 15, 2023.

What is the net income for UBOH in first quarter 2023?

The net income for the first quarter of 2023 is $1.9 million.

What was the basic earnings per share for UBOH in Q1 2023?

The basic earnings per share for Q1 2023 was $0.60.

How did UBOH's return on average assets change in Q1 2023?

The return on average assets decreased to 0.69% in Q1 2023.