UNITED BANCSHARES, INC. ANNOUNCES FIRST QUARTER 2023 RESULTS AND $0.22 DIVIDEND
COLUMBUS GROVE, Ohio, April 20, 2023 /PRNewswire/ -- United Bancshares, Inc. (OTCQX:UBOH)
- Quarterly cash dividend declared of $0.22 per share for shareholders of record on May 31, 2023, payable on June 15, 2023. This dividend is up 4.8% from the prior year comparable period. Based on the average closing price for the first quarter, this is a 4.46% dividend yield.
- Net income of $1.9 million for 2023 first quarter, down from $2.5 million in the comparable period in 2022.
- Basic earnings per share of $0.60 for 2023 first quarter, down from $0.77 in the comparable period in 2022.
- Return on average assets of 0.69% for the 2023 first quarter, down from 0.94% in the comparable period in 2022.
- Return on average tangible equity of 13.44% for the 2023 first quarter, up from 11.96% in the comparable period in 2022.
- Net interest margin of 3.53% for the 2023 first quarter, up from 3.42% in the comparable period in 2022.
- Deposit growth of $22.3 million, excluding $28.7 million in brokered CDs, up 9.3% annualized from December 31, 2022.
- Asset quality improved with non-performing loans down 6.5% and classified loans down 4.1% from December 31, 2022.
About The Union Bank Company:
Since 1904, The Union Bank Company has been here to provide full-service banking to the people and businesses throughout the communities we serve. Today, the bank has grown to include 18 offices across Northwest and Central Ohio, including Bowling Green, Columbus Grove, Delphos, Findlay, Gahanna, Gibsonburg, Kalida, Leipsic, Lewis Center, Lima, Marion, Ottawa, Paulding, Pemberville and Westerville. The Union Bank Company is headquartered in Columbus Grove, Ohio, and remains committed to providing the very best banking service and products to all the communities we serve. Learn more at www.theubank.com.
Shareholders, Clients, and Team Members:
Despite a difficult operating environment, your Company is reporting pre-tax income of approximately $2 million for the quarter ended March 31, 2023. The Company reported 13.44% return on average tangible shareholders' equity, strong liquidity and asset quality metrics. The recent downward movement in long term treasury yields improved the Company's unrealized loss position and resulting tangible book value to $18.98 per share. Earnings of $0.60 per share for the quarter were suppressed by significant headwinds for our residential mortgage team and increased costs due to inflationary pressures, however, the bank has offset some of those headwinds by right sizing staffing levels with decreases of over 16% in the past five quarters.
I am pleased to report that the Board of Directors declared a $0.22 per common share dividend payable June 15, 2023, to shareholders of record at the close of business on May 31, 2023. The dividend is approximately 37% of the reported net income for the first quarter of 2023.
While we expect the headwinds and compressing margins to continue to have a negative impact on your Company's earnings throughout 2023 and into 2024, we believe that continued efforts on cost control, new loan volumes, and repricing of existing loans at market rates through this cycle will offset some of that earnings pressure. The efforts of the team and our strong corporate values of respect for and accountability to our shareholders, clients, colleagues, and communities are the foundation for the continued success of your Company. Thank you for your ongoing support and the trust you have placed in us.
Respectfully,
Brian D. Young,
President and CEO
Financial Information (Unaudited) | |||
March 31, 2023 | December 31, 2022 | ||
Cash and cash equivalents | 89,668,000 | 30,680,000 | |
Securities | 260,901,000 | 285,146,000 | |
Loans | 683,907,000 | 687,545,000 | |
Less allowance for loan loss | (9,402,000) | (9,401,000) | |
Other assets | 92,171,000 | 93,323,000 | |
Total Assets | $1,117,245,000 | $1,087,293,000 | |
Deposits | 1,004,884,000 | 953,883,000 | |
Borrowings | 18,768,000 | 44,088,000 | |
Other liabilities | 6,409,000 | 6,631,000 | |
Total Liabilities | 1,030,061,000 | 1,004,602,000 | |
Common stock and surplus | 20,934,000 | 20,862,000 | |
Retained earnings | 113,647,000 | 112,466,000 | |
Accumulated other comprehensive (loss) income | (33,271,000) | (38,366,000) | |
Treasury stock | (14,126,000) | (12,271,000) | |
Total shareholders' equity | 87,184,000 | 82,691,000 | |
Total Liabilities and Shareholders' Equity | $1,117,245,000 | $1,087,293,000 | |
Common shares outstanding | 3,067,883 | 3,153,368 | |
3 months ended | 3 months ended | ||
March 31, 2023 | March 31, 2022 | ||
Interest income | 11,183,000 | 8,765,000 | |
Interest expense | 2,624,000 | 563,000 | |
Net interest income | 8,559,000 | 8,202,000 | |
Provision for loan losses | (26,000) | - | |
Net interest income after provision | 8,585,000 | 8,202,000 | |
Non-interest income | 1,743,000 | 3,081,000 | |
Non-interest expense | 8,356,000 | 8,399,000 | |
Income before federal income taxes | 1,972,000 | 2,884,000 | |
Federal income taxes | 87,000 | 364,000 | |
Net Income | $1,885,000 | $2,520,000 | |
Average common shares outstanding | 3,130,198 | 3,278,044 | |
Per Share Data: | |||
Net income | $0.60 | $0.77 | |
Cash dividends declared | $0.22 | $0.21 | |
Book value | $28.42 | $30.30 | |
Tangible book value (non-GAAP) | $18.98 | $21.43 | |
Closing price | $19.00 | $32.02 | |
Dividend yield (annualized) | 4.63 % | 2.62 % | |
Performance Ratios: | |||
Return on average assets | 0.69 % | 0.94 % | |
Return on average shareholders' equity | 8.86 % | 8.89 % | |
Return on average tangible shareholders' equity | 13.44 % | 11.96 % | |
Net interest margin | 3.53 % | 3.42 % | |
Credit Quality and Other Ratios: | |||
Net loan charge-offs (recoveries) as a percentage of average outstanding net loans | -0.02 % | -0.01 % | |
Allowance for loan losses to loans (end of period) | 1.38 % | 1.69 % | |
Loans to deposits (end of period) | 67.76 % | 65.01 % |
United Bancshares, Inc
Directors Robert L. Benroth Herbert H. Huffman III H. Edward Rigel David P. Roach Daniel W. Schutt, Chairman R. Steven Unverferth Brian D. Young
Officers Brian D. Young, President/CEO Denise E. Giesige, Secretary Klint D. Manz, CFO | The Union Bank Co.
Directors Robert L. Benroth Anthony M. V. Eramo Herbert H. Huffman III Kevin L. Lammon William R. Perry H. Edward Rigel David P. Roach Carol R. Russell Daniel W. Schutt R. Steven Unverferth Dr. Jane M. Wood Brian D. Young, Chairman |
Investor Materials
United Bancshares, Inc. has traded its common stock on the OTCQX Markets Exchange under the symbol "UBOH". Annual and quarterly shareholder reports, regulatory filings, press releases, and articles about United Bancshares, Inc. are available in the Investor Relations section of our website theubank.com or by calling 800-837-8111.
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SOURCE United Bancshares, Inc.