United Bancshares Delivers Impressive Q3 2024 Results
United Bancshares, Inc. (OTCQX: UBOH) has released its financial performance for the third quarter of 2024, showcasing notable growth and shareholder returns. The company declared a quarterly cash dividend of $0.22 per share, affirming its commitment to delivering value to its shareholders.
Dividend Declaration
With a focus on rewarding shareholders, United Bancshares has announced that the cash dividend of $0.22 per share will be payable on December 16, 2024, to all shareholders registered by the close of business on November 29, 2024. This dividend represents an annualized yield of approximately 4.50% based on the average closing price in the quarter.
Financial Highlights
Reflecting on its performance, the company reported a net income of $2.5 million, translating to $0.83 per share for the third quarter of 2024. This marks a significant increase from the prior year's figures, which stood at $2.0 million or $0.65 per share. Year-to-date, the organization's total net income comes to $6.1 million, equating to $2.05 per share, slightly down from the previous year, but reflecting a solid operational output.
Operational Performance
For Q3 2024, United Bancshares achieved a return on average assets of 0.83%, showing improvement from 0.73% in Q3 2023. Additionally, the return on average tangible equity rose to 14.96%, up from 14.12% in the same period last year. Conversely, the net interest margin has slightly decreased to 3.12% from 3.42% a year prior, indicating the ongoing challenges within the financial landscape.
Loan and Deposit Growth
The company reported robust growth in its lending and deposit segments. Loans increased by $13.4 million, reflecting an annualized growth of 2.53% since December 31, 2023. Deposits surged to $154.4 million, representing a remarkable annualized increase of 21.60%, primarily driven by the Bank's interactions with the state treasurer's homebuyer program.
Maintaining Asset Quality
United Bancshares has maintained strong asset quality metrics, with stable non-performing and classified loans. Notably, credit charge-offs have remained at historically low levels as of September 30, 2024. These outcomes speak volumes about the company's sound risk management practices and operational stability.
Company Overview
Founded in 1904, United Bancshares, Inc. offers comprehensive financial services across various communities. The organization operates multiple branches and provides innovative banking solutions, including Interactive Teller Machines (ITMs) to enhance customer engagement.
Message from Leadership
The company’s President and CEO, Brian D. Young, expressed gratitude towards shareholders, clients, and team members, emphasizing the collective effort that yielded these positive financial results. Young reinforced a commitment to uphold the bank's corporate values of respect and accountability as key drivers of its ongoing success.
Frequently Asked Questions
1. What was the net income for United Bancshares in Q3 2024?
United Bancshares reported a net income of $2.5 million, which amounts to $0.83 per share for the third quarter of 2024.
2. When will the dividend be paid out?
The dividend of $0.22 per share will be payable on December 16, 2024, to shareholders registered by November 29, 2024.
3. How has loan growth performed?
Loan growth amounted to $13.4 million for the period, reflecting a 2.53% annualized growth since the end of December 2023.
4. What is United Bancshares' return on average assets?
The return on average assets for Q3 2024 is 0.83%, which is an increase from 0.73% in the same quarter last year.
5. How does United Bancshares ensure asset quality?
The organization maintains asset quality by monitoring non-performing and classified loans, with charge-offs remaining at historically low levels.
