COLUMBUS GROVE, Ohio - United Bancshares, Inc. (OTCQX: UBOH) announced a quarterly cash dividend of $0.22 per share for shareholders of record on May 31, 2024, with payment due on June 14, 2024. This declaration corresponds to a 4.64% dividend yield based on the average closing price for the first quarter.
The company reported a net income of $1.8 million, or $0.61 per share, for the first quarter of 2024, which closely aligns with the $1.9 million, or $0.60 per share, recorded in the same period last year. These figures include a $435,000 mortgage loan reserve recapture and a $291,000 provision for credit loss reversal. Excluding these items, the adjusted net income stands at $1.2 million, or $0.39 per share.
United Bancshares maintained a return on average assets of 0.69% for the first quarter, consistent with the previous year's same period. The return on average tangible equity was 11.33%, a decrease from 13.43% in the first quarter of 2023.
The net interest margin for the quarter was reported at 3.03%, down from 3.53% in the comparable period of 2023. Despite this reduction, the bank's asset quality metrics remained strong, with stable non-performing and classified loans, and historically low levels of charge-offs through March 31, 2024.
The Union Bank Company, operating under United Bancshares, Inc., has been serving communities across Northwest and Central Ohio since 1904. With 18 offices, the bank emphasizes its commitment to providing comprehensive banking services.
According to the press release statement, United Bancshares faced challenges in the first quarter due to a decrease in net interest income and ongoing inflationary pressures. However, the company managed to offset these difficulties through cost control measures, reduction in the provision for credit losses, and an increase in non-interest income.
The Board of Directors expressed confidence in the company's ability to navigate the anticipated challenging operating environment, with a focus on cost control, new loan originations, and loan repricing to mitigate earnings pressure.
This financial update is based on the press release issued by United Bancshares, Inc., and presents the key facts without additional commentary or speculative insights.
InvestingPro Insights
United Bancshares, Inc. (UBOH) has recently revealed its quarterly financials, displaying resilience in the face of economic challenges. An InvestingPro analysis provides deeper insights into the company's valuation and performance metrics that may influence investor decisions.
With a market capitalization of $55.11 million, United Bancshares is trading at a low earnings multiple, with a P/E Ratio of 6.54, adjusted to 6.4 for the last twelve months as of Q4 2023. This valuation suggests that the company's shares might be undervalued relative to its earnings. Additionally, the bank has shown a commitment to shareholder returns, maintaining dividend payments for 13 consecutive years, which is reflected in its current dividend yield of 4.81%.
Despite a challenging quarter, United Bancshares has managed to remain profitable over the last twelve months, reporting an operating income margin of 22.73%. However, the bank does suffer from weak gross profit margins, which could be a point of concern for investors looking for robust profitability.
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