Highlights of United Bancshares, Inc.'s Fourth Quarter 2025
United Bancshares, Inc. (OTCQX: UBOH), the parent holding company for The Union Bank Company, is excited to share the remarkable financial results for the fourth quarter of 2025. The company has declared a noteworthy quarterly cash dividend of $0.24 per share, showcasing a commitment to delivering value to its shareholders.
Quarterly Financial Performance
The company reported impressive figures for the fourth quarter. Net income reached $3.1 million, translating to $1.04 per share. This is a favorable increase from the previous year's comparable quarter, where net income stood at $3.0 million, or $1.02 per share. Year-to-date figures also reflect substantial growth, with total net income for 2025 at $12.0 million ($4.04 per share), showcasing a significant increase from $9.2 million in 2024.
Key Performance Metrics
United Bancshares demonstrated an improved return on average assets of 1.02% for the fourth quarter of 2025, up from 0.98% a year prior. Year to date, the return on average assets has risen to 1.00%, a jump from 0.80% in 2024.
Interestingly, while the return on average tangible equity showed a slight decline to 14.64%, down from 17.27% the previous year, year-to-date tangible equity improved to 15.85% from 14.06%. The quarterly net interest margin saw an increase, reaching 4.03% compared to 3.39% in 2024, with year-to-date margins rising from 3.17% to 3.78%.
Growth and Deposit Trends
Loan growth has been robust, totaling $58.1 million, marking an increase of 7.58% year-over-year. Conversely, deposits saw a slight decrease of $15.4 million, equating to a 1.43% decline from the end of 2024. However, excluding the fluctuations from the Ohio Treasurers Homebuyers Plus Program, deposits actually grew by $2.4 million or 0.24%.
Asset Quality and Charge-offs
Asset quality metrics remain solid, indicated by stable levels of non-performing and classified loans. Charge-offs have remained historically low as of December 31, 2025, emphasizing strong financial health.
Dividends and Future Projections
The board of directors has declared a quarterly cash dividend of $0.24 per share, payable on March 16 for shareholders on record as of February 27. This dividend signals a healthy 23% of the reported net income for Q4 2025 and reflects a 4.3% increase compared to the previous dividend.
United Bancshares plans to bolster its growth trajectory in 2026 by enhancing technology, expanding client relationships, and introducing new team members focused on commercial and treasury management. A new digital platform is expected to launch in the second quarter of 2026, offering more intuitive tools for clients.
Commitment to Shareholders
The company's ongoing emphasis on profitability through effective growth strategies will ensure the continuity of steady dividends and liquidity for shareholders, reinforced by the ongoing share repurchase program.
The Community Focus
The community bank model allows United Bancshares to serve and support local economies effectively. By catering to clients' needs, the company drives economic growth and contributes to various community initiatives, ensuring a strong bond with stakeholders.
Frequently Asked Questions
1. What is the recent dividend declared by United Bancshares?
United Bancshares declared a quarterly cash dividend of $0.24 per share for the fourth quarter of 2025.
2. How has United Bancshares performed in terms of net income?
The company reported a net income of $3.1 million for Q4 2025, which translates to $1.04 per share.
3. What key growth metrics are highlighted for United Bancshares?
Key metrics include loan growth of $58.1 million and an increase in net interest margin to 4.03% in Q4 2025.
4. What initiatives are planned for future growth?
The company plans to enhance technology and expand its client relationships while introducing new team members to improve service.
5. Why is the community bank model important to United Bancshares?
The community bank model allows United Bancshares to serve clients effectively and drive economic growth, ensuring positive contributions to local communities.
