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United Bancshares, Inc. Reports Strong Q2 2026 Results

United Bancshares, Inc. (OTCQX: UBOH) has announced its financial results for the second quarter of 2026, demonstrating its solid growth trajectory and commitment to shareholder returns. The company reported a quarterly cash dividend of $0.26 per share, which marks a 13% increase compared to the same quarter in the previous year. This dividend will be payable to shareholders on record as of August 31, 2026, with a payment date set for September 15, 2026.

Key Financial Highlights

For the second quarter of 2026, United Bancshares reported a net income of $1.7 million, translating to $0.61 per share. This figure reflects a notable performance, especially when considering certain financial maneuvers that temporarily impacted results. Excluding losses from the sale of securities, which amounted to approximately $3.8 million pre-tax, the company estimates that its earnings for the quarter would have reached $4.5 million, or $1.64 per share.

Moreover, year-to-date net income for 2026 stands at $5.3 million, equating to $1.94 per share. The company achieved a return on tangible capital of 8.3% for the second quarter and 13.1% for the first half of the year, showing effective management of resources and sustained profitability.

Strategic Actions and Investments

In a strategic move to bolster its financial standing, United Bancshares successfully executed a $30 million subordinated debt offering. This offering allowed the company to enhance its investment security balances by approximately $250 million, thus generating additional net interest income. Additionally, the bank decided to sell around $40 million of investment securities, resulting in a one-time loss, but repositioning these funds into higher-yielding securities.

The company's net interest margin has improved significantly, reported at 4.00% for the second quarter, compared to 3.71% a year earlier. This increase is mirrored in the year-to-date figures, underscoring consistent growth in interest income.

Continued Growth and Stability

Loan growth for United Bancshares reached $38.4 million, reflecting an annualized growth rate of 9.30% since December 31, 2025. Core deposits have also seen a healthy increase, totaling $133.8 million, which includes significant growth in brokered and commercial deposits. This influx illustrates the company’s ability to attract deposits while maintaining a strong asset quality, with stable non-performing and classified loans.

Brian D. Young, President and CEO, expressed his confidence in the company’s direction, stating, "Our strategic decisions have positioned us well for future growth, while our commitment to returning value to our shareholders remains steadfast."

Outlook and Shareholder Value Strategy

The Board of Directors is optimistic about future performance and believes that maintaining a dividend policy that enhances shareholder value is crucial. The approved $0.26 per share quarterly dividend reflects this commitment and positions United Bancshares as a company that prioritizes its investors.

In closing, United Bancshares, Inc. continues to evolve, adapting its strategies to leverage growth opportunities while delivering substantial returns. Investors and shareholders can look forward to September when the dividend is distributed, a testament to the company's enduring strength and market position. For more information, shareholders are encouraged to visit The Union Bank Company's website.