United Bancshares, Inc. Reports Strong Q1 2026 Earnings and Announces Dividend Increase

United Bancshares, Inc., traded under the symbol UBOH on the OTCQX market, has announced impressive financial results for the first quarter of 2026. This marks a significant milestone as the company declared a quarterly cash dividend of $0.25 per share for shareholders on record by May 29, 2026, set to be paid out on June 15, 2026. This dividend represents a solid yield of 2.48% based on the average closing price in the first quarter.

Financial Highlights

The financial performance reported by United Bancshares indicates robust growth. The company achieved a net income of $3.7 million, translating to a profit of $1.32 per share. This denotes a substantial increase of 40.4% from the previous year's comparable quarter, where a net income of $2.8 million or $0.94 per share was recorded.

Moreover, the return on average assets rose to 1.23%, a notable increase from 0.94% the previous year. Similarly, the return on average tangible equity demonstrated improvement, reaching 17.73% compared to 15.78%. In terms of net interest margin, a crucial indicator of profitability, the figure climbed to 4.01% from 3.59% year-over-year.

Loan and Deposit Growth

During the first quarter, the company experienced exceptional loan growth of $28.1 million, translating to an annualized growth rate of 13.61% since December 31, 2025. Deposits also saw a substantial increase of $30.6 million, achieving an annualized growth rate of 11.6%, compared to just 1.5% for the same period in the prior year. When adjusted for the fluctuations related to the Ohio Treasurers Homebuyers Plus Program, deposits surged by $35.3 million, an increase of 14.37%.

Asset Quality

The quality of assets remains strong, with stable metrics for non-performing and classified loans. Charge-offs are historically low, showcasing the company's sound credit management.

Future Outlook and Developments

The company has outlined ambitious goals for the remainder of 2026. They plan to enhance client relationships, introduce an innovative digital platform, and expand service areas. The introduction of live teller access and online chat features from 7 AM to 7 PM is also on the horizon, aiming to improve customer service and engagement.

Notably, United Bancshares repurchased about 7% of its outstanding shares during the first quarter as part of its ongoing capital management strategy, which positively impacted returns on equity and earnings per share. The management remains committed to maintaining strong dividends while also investing in growth opportunities.

Acknowledgements

The organizational success is attributed not solely to the financial results but also to the contributions of its leadership team. Special recognition was given to retiring Chairman Daniel W. Schutt and the Board Secretary Denise Giesige for their dedication to the company over the years, fostering positive relationships and community support. Their legacy continues to inspire operational excellence within United Bancshares.

Closing Thoughts

In conclusion, United Bancshares, Inc. has started 2026 on a strong footing, exhibiting growth across key financial indicators and an unwavering commitment to enhancing shareholder value. The company expresses gratitude to its investors for their support and pledges to uphold excellence in service and financial performance for years to come.