United Bancshares reports 72% jump in Q2 earnings, declares dividend

Published 17/07/2025, 21:38
United Bancshares reports 72% jump in Q2 earnings, declares dividend

COLUMBUS GROVE, Ohio - United Bancshares, Inc. (OTCQX:UBOH), a small-cap banking company with a market capitalization of $85.42 million, reported second-quarter net income of $3.1 million or $1.05 per share, representing a 72% increase from $1.8 million or $0.61 per share in the same period last year. According to InvestingPro data, the company trades at an attractive P/E ratio of 8.43, suggesting potential value for investors.

The Ohio-based banking company declared a quarterly cash dividend of $0.23 per share, payable on September 15, 2025, to shareholders of record on August 29, 2025. Based on the average closing price during the second quarter, this represents a 3.44% dividend yield. InvestingPro analysis reveals the company has maintained dividend payments for 14 consecutive years, demonstrating strong commitment to shareholder returns.

For the first half of 2025, United Bancshares posted net income of $5.9 million or $1.99 per share, up from $3.7 million or $1.22 per share in the first half of 2024.

The company’s financial performance showed improvement across key metrics. Return on average assets for the second quarter rose to 1.04% from 0.68% a year earlier, while return on average tangible equity increased to 17.33% from 12.27%. The stock has delivered impressive returns, with InvestingPro data showing a 54.8% price return over the past year. The platform’s Fair Value analysis suggests the stock is currently slightly undervalued, with additional insights available through the Most Undervalued Stocks list.

Net interest margin expanded to 3.71% in the second quarter of 2025, compared to 3.12% in the same period of 2024. The company reported loan growth of $22.3 million, representing a 5.82% annualized increase from December 31, 2024.

Deposits grew by $2.9 million, a 0.54% annualized increase from the end of 2024. The company noted that asset quality metrics remained strong with stable non-performing and classified loans, while charge-offs stayed at historically low levels through June 30, 2025.

During the second quarter, the company repurchased 20,145 shares. Since June 2022, United Bancshares has repurchased a total of 369,321 shares at an average price of $21.41.

The information in this article is based on a press release statement from United Bancshares, Inc.

In other recent news, United Bancshares, Inc. has announced a quarterly cash dividend of $0.23 per share, which is a 4.5% increase for shareholders. This decision follows a strong first quarter in 2025, where the company reported a net income of $2.8 million, or $0.94 per share. This is a notable rise from the $1.8 million, or $0.61 per share, recorded in the same period the previous year. The company also experienced a positive trend in financial performance indicators, with a return on average assets increasing to 0.94% from 0.69% in the first quarter of 2024. Additionally, the return on average tangible equity rose to 15.78% from 11.33%, and the net interest margin improved to 3.59% from 3.03%. United Bancshares reported substantial loan growth of $17.9 million, an annualized growth rate of 9.4%, while deposit growth was more modest at $3.9 million, with an annualized growth rate of 1.5%. The company also highlighted stable asset quality metrics, with non-performing and classified loans showing consistency and charge-offs at historically low levels. Management has indicated plans to continue share repurchases as opportunities arise to create value for shareholders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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