COLUMBUS GROVE, Ohio – United Bancshares, Inc. (OTCQX: UBOH), the parent company of The Union Bank Company, has announced its financial results for the third quarter ended September 30, 2024, revealing a rise in net income and declaring a quarterly cash dividend.
The company reported a net income of $2.5 million, or $0.83 per share, for the third quarter of 2024. This represents an increase from the $2.0 million, or $0.65 per share, recorded in the same period last year. The year-to-date net income stood at $6.1 million, or $2.05 per share, a slight decrease from the $6.3 million net income year-to-date in 2023, but an increase from $2.03 per share.
A quarterly cash dividend of $0.22 per share was declared for shareholders of record on November 29, 2024, payable on December 16, 2024. This dividend equates to a 4.50% annualized yield based on the average closing price of the company's stock during the third quarter.
The bank's return on average assets for the quarter was 0.83%, up from 0.73% in the comparable period in 2023. However, the year-to-date return on average assets decreased slightly to 0.73% from 0.77%. The return on average tangible equity improved to 14.96% in the third quarter, compared to 14.12% in the same period the previous year, with a year-to-date return on average tangible equity of 12.85%, down from 14.78%.
United Bancshares also reported loan growth of $13.4 million, marking a 2.53% annualized increase from the end of 2023. Deposit growth was notable, with an increase of $154.4 million, or 21.60% annualized, from December 31, 2023. The company highlighted strong asset quality metrics with stable non-performing and classified loans and historically low charge-offs through September 30, 2024.
The Union Bank Company, which has served communities across Northwest and Central Ohio since 1904, operates 14 full-service branches and has Interactive Teller Machines (ITMs) at all branch locations, with additional ITM-only locations.
The information provided in this article is based on a press release statement from United Bancshares, Inc.
InvestingPro Insights
To complement the financial results reported by United Bancshares, Inc. (OTCQX: UBOH), InvestingPro data offers additional perspective on the company's performance and valuation. As of the latest available data, UBOH's market capitalization stands at $59.25 million, reflecting its position as a smaller regional banking entity.
The company's P/E ratio of 7.72 suggests that it may be undervalued compared to industry peers, which aligns with the reported increase in net income for the third quarter. This valuation metric is particularly interesting given the company's profitability over the last twelve months, as highlighted by one of the InvestingPro Tips.
Another noteworthy InvestingPro Tip reveals that UBOH has maintained dividend payments for 13 consecutive years. This consistency in dividend distribution underscores the company's commitment to shareholder returns, which is further evidenced by the recently declared quarterly cash dividend of $0.22 per share. The current dividend yield stands at an attractive 4.32%, supporting the company's appeal to income-focused investors.
While the article reports on loan and deposit growth, it's worth noting that InvestingPro data shows a revenue decline of 13.43% over the last twelve months. This contrasting information suggests that the company may be facing challenges in its core banking operations despite the reported balance sheet growth.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and metrics beyond those mentioned here. The platform provides a total of 14 tips for UBOH, offering a deeper dive into the company's financial health and market position.
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