#United States #dividends #Financial Growth #United Bancshares #Columbus Grove, Ohio

United Bancshares, Inc.: Strong Fourth Quarter and 2024 Year-End Results

On January 23, 2025, United Bancshares, Inc. (OTCQX: UBOH) announced its financial results for the fourth quarter and the full year of 2024. The company reported a solid net income of $3.0 million, which translates to $1.02 per share. This marks a significant improvement from the previous year, where the net income for the same quarter was $2.3 million or $0.77 per share. For the full year, United Bancshares recorded net income of $9.2 million, equating to $3.06 per share, an increase from $8.6 million or $2.80 per share in 2023.

In addition to the impressive financial results, the company declared a quarterly cash dividend of $0.22 per share, payable on March 17, 2025, for shareholders of record on February 28, 2025. This dividend represents a yield of 3.93% based on the average closing price for the fourth quarter. Notably, this dividend accounts for 21.6% of the net income reported for the fourth quarter, highlighting the company's strong performance amidst a challenging banking environment.

Key Financial Highlights

• - Net Interest Margin: The net interest margin for Q4 2024 improved to 3.39%, reflecting a growth from 3.37% in the same quarter of the previous year. The year-to-date (YTD) net interest margin stood at 3.17%, although this is lower than the 3.45% reported for YTD 2023.
• - Loan and Deposit Growth: The company exhibited robust growth with loans increasing by $58.2 million (8.2%) and deposits rising by $118.3 million (12.4%) compared to December 31, 2023. This growth indicates a positive trend in customer confidence and business activity.
• - Return Ratios: The return on average assets for Q4 was 0.98%, up from 0.88% in the comparable period in 2023. The return on average tangible equity decreased to 17.27%, down from 19.28% year-on-year but remains a strong indicator of profitability.

Despite the uncertainties faced by the banking sector throughout 2024, United Bancshares successfully navigated these challenges, resulting in enhanced financial stability and return for its shareholders. CEO Brian D. Young expressed optimism for 2025, noting that the growth momentum from 2024 would carry into the new year. He outlined plans for the company to expand client relationships, introduce new digital platforms, and enhance customer service without increasing operational costs.

However, the company mourned the passing of Director David Roach, who had been a long-time member since 2001, highlighting the importance of his legacy and the values he instilled within the organization.

Looking Ahead

United Bancshares aims to sustain this growth trajectory by focusing on client engagement, technology advancement, and maintaining high asset quality. This strategic approach, combined with a dedicated team, underpins the firm’s commitment to delivering superior banking services to the communities it serves.

As we continue into 2025, all eyes will be on how United Bancshares leverages its recent successes to further enhance its market position while adhering to its core values of community service and shareholder accountability.