#United States #dividend increase #Q1 2025 #United Bancshares #Columbus Grove

United Bancshares, Inc. Announces First Quarter 2025 Results

United Bancshares, Inc., headquartered in Columbus Grove, Ohio, has released its financial results for the first quarter of 2025, delivering impressive growth metrics for shareholders. Notably, the company has declared a quarterly cash dividend of $0.23 per share, reflecting a 4.5% increase compared to previous results. This dividend is set to benefit shareholders of record by May 30, 2025, and will be disbursed on June 16, 2025.

Financial Highlights

The firm reported a net income of $2.8 million, equating to $0.94 per share, which marks a significant increase from $1.8 million or $0.61 per share in the same period last year. The return on average assets improved to 0.94%, up from 0.69% a year earlier, while the return on average tangible equity reached an impressive 15.78%, compared to 11.33% in Q1 2024.

Further detailing their financial performance, the bank reported a net interest margin of 3.59%, an increase from 3.03% in the corresponding period last year. Driven by strong loan growth, which amounted to $17.9 million—equating to a 9.4% annualized growth rate—the bank demonstrated that it is on a path of robust financial health. In addition, deposits increased by $3.9 million, reflecting a 1.5% annualized growth rate.

Stability and Confidence

United Bancshares also noted that asset quality remains strong, with stable metrics in non-performing and classified loans. Charge-offs were reported at historically low levels as of March 31, 2025. The company allocated $93,000 to provisions for credit losses, primarily related to the observed loan growth, indicating a cautious and proactive approach to maintaining financial stability.

President and CEO Brian D. Young shared that these strong results underscore the company's commitment to serving their clients and shareholders while actively pursuing growth and operational efficiency. The bank's strategic plans for 2025 include a focus on enhancing digital banking capabilities, ensuring client access to live services, and conducting share repurchases when opportunities arise.

Looking Ahead

The organization plans to maintain its growth trajectory by expanding its client relationships throughout the year. They anticipate launching an all-new digital platform to enrich the client experience, along with providing additional support through extended live teller hours and online interactive services.

United Bancshares remains dedicated to integrating innovative technology to enhance internal processes and efficiencies while keeping operational costs controlled through favorable vendor negotiations. Young emphasized that the structural improvements in their banking model would pave the way for sustained growth and improved service delivery.

The quarterly dividend now constitutes approximately 24.5% of reported net income for Q1 2025, demonstrating a balanced and shareholder-friendly approach. The company’s robust financial strategies and commitment to its core values of service and accountability position it well for future endeavors.

For more insights and updates regarding United Bancshares, please visit The Union Bank Company website.