UNITED BANCSHARES, INC. ANNOUNCES SECOND QUARTER 2024 RESULTS AND $0.22 DIVIDEND
United Bancshares (OTCQX: UBOH) has announced its second quarter 2024 results and a $0.22 dividend. The company reported net income of $1.8 million or $0.61 per share, down from $2.4 million or $0.78 per share in Q2 2023. Year-to-date net income for 2024 is $3.7 million or $1.22 per share, compared to $4.3 million or $1.38 in 2023. The company's performance shows declines in key metrics:
- Return on average assets: 0.68% (Q2 2024) vs 0.88% (Q2 2023)
- Return on average tangible equity: 12.27% (Q2 2024) vs 16.70% (Q2 2023)
- Net interest margin: 3.12% (Q2 2024) vs 3.47% (Q2 2023)
However, United Bancshares reported loan growth of $12.1 million (3.42% annualized) and deposit growth of $77.4 million (16.25% annualized) since December 31, 2023. Asset quality metrics remain strong with stable non-performing loans and historically low charge-offs.
- Declared quarterly cash dividend of $0.22 per share, yielding 4.73%
- Loan growth of $12.1 million, up 3.42% annualized from December 31, 2023
- Deposit growth of $77.4 million, up 16.25% annualized from December 31, 2023
- Asset quality metrics remain strong with stable non-performing loans
- Charge-offs remain at historically low levels
- Net income decreased to $1.8 million in Q2 2024 from $2.4 million in Q2 2023
- Earnings per share dropped to $0.61 in Q2 2024 from $0.78 in Q2 2023
- Year-to-date net income declined to $3.7 million in 2024 from $4.3 million in 2023
- Return on average assets decreased to 0.68% in Q2 2024 from 0.88% in Q2 2023
- Return on average tangible equity fell to 12.27% in Q2 2024 from 16.70% in Q2 2023
- Net interest margin declined to 3.12% in Q2 2024 from 3.47% in Q2 2023
- Quarterly cash dividend declared of
$0.22 4.73% dividend yield. - Net income of
$1.8 million $0.61 $2.4 million $0.78 $3.7 million $1.22 $4.3 million $1.38 - Return on average assets of
0.68% for the 2024 second quarter, down from0.88% in the comparable period in 2023. YTD 2024 return on average assets of0.68% , down from0.78% YTD 2023. - Return on average tangible equity of
12.27% for the 2024 second quarter, down from16.70% in the comparable period in 2023. YTD 2024 return on average tangible equity of11.78% , down from15.09% YTD 2023. - Net interest margin of
3.12% for the 2024 second quarter, down from3.47% in the comparable period in 2023. YTD 2024 net interest margin of3.07% , down from3.50% YTD 2023. - Loan growth of
$12.1 million 3.42% annualized from December 31, 2023. - Deposit growth of
$77.4 million 16.25% annualized from December 31, 2023. - Asset quality metrics remain strong with stable non-performing and classified loans. Charge-offs remain at historically low levels through June 30, 2024.
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
United Bancshares, Inc.
Quarterly Report
June 30, 2024
Shareholders, Clients, and Team Members:
Despite being in a historically long period of time with an inverted yield curve which has decimated net interest income at your Company and throughout our industry, your Company is reporting pre-tax income of approximately
In addition to the Company's continued strong liquidity position and asset quality metrics, during the first six months, we were able to opportunistically repurchase shares, redeploy investment securities into client loans, grow deposits, and stabilize deposit costs. Those results enabled the Company to have positive net interest income momentum going into the second half of 2024 for the first time in 18 months.
I am also pleased to report that the Board of Directors declared a
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 & CEO
Financial Information (Unaudited)
June 30, 2024 | December 31, 2023 | ||
Cash and cash equivalents | $ 97,230,0000 | $ 26,915,000 | |
Securities | 242,222,000 | 253,588,000 | |
Loans | 720,941,000 | 708,828,000 | |
Less allowance for credit losses | (8,490,000) | (8,876,000) | |
Other assets | 93,073,000 | 91,043,000 | |
Total Assets | |||
Deposits | $ 1,030,273,000 | $ 952,845,000 | |
Borrowings | 17,560,000 | 18,043,000 | |
Other liabilities | 6,216,000 | 6,686,000 | |
Total Liabilities | 1,054,049,000 | 977,574,000 | |
Common stock and surplus | 21,413,000 | 21,109,000 | |
Retained earnings | 120,643,000 | 118,300,000 | |
Accumulated other comprehensive (loss) income | (34,786,000) | (30,658,000) | |
Treasury stock | (16,343,000) | (14,827,000) | |
Total shareholders' equity | 90,927,000 | 93,924,000 | |
Total Liabilities and Shareholders' Equity | |||
Common shares outstanding | 2,982,236 | 3,036,757 | |
Book value | |||
Tangible book value (non-GAAP) | |||
Closing price | |||
Allowance for credit losses to loans (end of period) | 1.19 % | 1.26 % | |
Loans to deposits (end of period) | 69.42 % | 74.16 % |
3 months | 3 months | 6 months | 6 months | ||||
June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||
Interest income | |||||||
Interest expense | 5,053,000 | 3,408,000 | 9,776,000 | 6,032,000 | |||
Net interest income | 7,449,000 | 8,432,000 | 14,597,000 | 16,991,000 | |||
Provision for credit losses | (190,000) | (70,000) | (481,000) | (96,000) | |||
Net interest income after provision | 7,639,000 | 8,502,000 | 15,078,000 | 17,087,000 | |||
Non-interest income | 2,026,000 | 2,123,000 | 4,305,000 | 3,865,000 | |||
Non-interest expense | 7,683,000 | 8,000,000 | 15,470,000 | 16,355,000 | |||
Income before federal income taxes | 1,982,000 | 2,625,000 | 3,913,000 | 4,597,000 | |||
Federal income taxes | 150,000 | 219,000 | 248,000 | 306,000 | |||
Net Income | |||||||
Average common shares outstanding | 2,990,805 | 3,068,605 | 3,008,541 | 3,098,891 | |||
Per Share Data: | |||||||
Net income (basic) | |||||||
Cash dividends declared | |||||||
Dividend yield (annualized) | 4.73 % | 4.67 % | 4.69 % | 4.56 % | |||
Performance Ratios: | |||||||
Return on average assets | 0.68 % | 0.88 % | 0.68 % | 0.78 % | |||
Return on average shareholders' equity | 8.42 % | 11.12 % | 8.19 % | 10.00 % | |||
Return on average tangible shareholders' equity | 12.27 % | 16.70 % | 11.78 % | 15.09 % | |||
Net interest margin | 3.12 % | 3.47 % | 3.07 % | 3.50 % | |||
Net loan charge-offs (recoveries) as a percentage of | 0.00 % | -0.01 % | 0.00 % | -0.01 % |
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.
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