United Bancshares Delivers Impressive Quarterly Earnings Growth

Strong Financial Performance by United Bancshares

United Bancshares, Inc. (OTCQX: UBOH) has recently reported its quarterly cash dividend of $0.22 per share, reinforcing its commitment to shareholders. This dividend is scheduled for payment in the near future, marking a consistent return for investors. Based on the average closing price from the fourth quarter, the dividend yield stands at an attractive 3.93%. The company is proud to maintain the tradition of dividend payments for an impressive 13 consecutive years, showcasing its stability in the financial sector with a current annual dividend yield of 3.18%.

Robust Quarterly Earnings Results

For the fourth quarter, United Bancshares announced a net income of $3.0 million, translating to $1.02 per share. This represents a significant increase of $680,000 from the previous year’s $2.3 million, or $0.77 per share. Furthermore, when looking at the year-to-date figures for 2024, net income reached $9.2 million, averaging $3.06 per share, which reflects a healthy increase compared to $8.6 million, or $2.80 per share, from the year before.

Market Performance Analysis

Investors should note that United Bancshares has a price-to-earnings (P/E) ratio of 9.61 along with a market capitalization of $80.32 million. This data points to the stock trading close to its fair value, according to market analysis. This positions United Bancshares as a potentially attractive investment in the banking sector.

Improved Operational Efficiency and Growth Metrics

During the fourth quarter of 2024, the return on average assets improved to 0.98%, up from 0.88% in the corresponding period of 2023. However, the return on average tangible equity saw a slight decrease, landing at 17.27%, down from 19.28% in the previous year. These metrics illustrate the bank's focus on operational efficiency, while maintaining a keen eye on overall profitability.

Loan and Deposit Growth

United Bancshares experienced robust growth in its loan portfolio, achieving an increase of $58.2 million, which is equivalent to an 8.2% rise. Additionally, deposit growth was impressive, with an increase of $118.3 million, or 12.4%, as of December 31, 2024. This growth is critical for bolstering the bank's liquidity and supporting ongoing operations and customer service.

Commitment to Community and Longevity

Through its subsidiary, The Union Bank Company, United Bancshares operates a total of 14 full-service branches across northwestern and central regions. Their longstanding presence since 1904 underscores a deep commitment to community service and customer relations. Over the past year, the stock has shown a robust performance with a remarkable return of 50.25%, signifying strong investor confidence and market positioning.

Tribute to Leadership

The company's recent announcement also included a note of remembrance for David Roach, a dedicated Director at United Bancshares and The Union Bank Company since 2001, who sadly passed away in December 2024. His legacy and contributions to the bank and community are greatly acknowledged.

Frequently Asked Questions

What is the dividend payout of United Bancshares?

United Bancshares has announced a quarterly cash dividend of $0.22 per share, with a history of consistent payments over the years.

How did United Bancshares perform in the fourth quarter?

The bank reported a net income of $3.0 million or $1.02 per share, showing significant growth from the previous year.

What are the recent growth figures for loans and deposits?

The company experienced an 8.2% increase in loans and a 12.4% rise in deposits, highlighting strong operational growth.

How has the stock performed over the last year?

United Bancshares’ stock has witnessed a significant return of 50.25%, indicating robust investor confidence.

How long has United Bancshares been in business?

Established in 1904, United Bancshares has over a century of service to its community and clients.

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