UNITED BANCSHARES, INC. ANNOUNCES SECOND QUARTER 2024 RESULTS AND $0.22 DIVIDEND
- Quarterly cash dividend declared of
$0.22 per share for shareholders of record onAugust 30, 2024 , payable onSeptember 16, 2024 . Based on the average closing price for the second quarter, this is a 4.73% dividend yield. - Net income of
$1.8 million or$0.61 per share for the 2024 second quarter. This is down from$2.4 million or$0.78 per share in the comparable period in 2023. YTD 2024 net income of$3.7 million or$1.22 per share, down from$4.3 million or$1.38 YTD 2023. - Return on average assets of 0.68% for the 2024 second quarter, down from 0.88% in the comparable period in 2023. YTD 2024 return on average assets of 0.68%, down from 0.78% YTD 2023.
- Return on average tangible equity of 12.27% for the 2024 second quarter, down from 16.70% in the comparable period in 2023. YTD 2024 return on average tangible equity of 11.78%, down from 15.09% YTD 2023.
- Net interest margin of 3.12% for the 2024 second quarter, down from 3.47% in the comparable period in 2023. YTD 2024 net interest margin of 3.07%, down from 3.50% YTD 2023.
- Loan growth of
$12.1 million , up 3.42% annualized fromDecember 31, 2023 . - Deposit growth of
$77.4 million , up 16.25% annualized fromDecember 31, 2023 . - Asset quality metrics remain strong with stable non-performing and classified loans. Charge-offs remain at historically low levels through
June 30, 2024 .
About
Since 1904,
Quarterly Report
Shareholders, Clients, and Team Members:
Despite being in a historically long period of time with an inverted yield curve which has decimated net interest income at your Company and throughout our industry, your Company is reporting pre-tax income of approximately
In addition to the Company's continued strong liquidity position and asset quality metrics, during the first six months, we were able to opportunistically repurchase shares, redeploy investment securities into client loans, grow deposits, and stabilize deposit costs. Those results enabled the Company to have positive net interest income momentum going into the second half of 2024 for the first time in 18 months.
I am also pleased to report that the Board of Directors declared a
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,
President & CEO
Financial Information (Unaudited)
|
|
|
|
Cash and cash equivalents |
$ 97,230,0000 |
|
$ 26,915,000 |
Securities |
242,222,000 |
|
253,588,000 |
Loans |
720,941,000 |
|
708,828,000 |
Less allowance for credit losses |
(8,490,000) |
|
(8,876,000) |
Other assets |
93,073,000 |
|
91,043,000 |
Total Assets |
|
|
|
|
|
|
|
Deposits |
$ 1,030,273,000 |
|
$ 952,845,000 |
Borrowings |
17,560,000 |
|
18,043,000 |
Other liabilities |
6,216,000 |
|
6,686,000 |
Total Liabilities |
1,054,049,000 |
|
977,574,000 |
|
|
|
|
Common stock and surplus |
21,413,000 |
|
21,109,000 |
Retained earnings |
120,643,000 |
|
118,300,000 |
Accumulated other comprehensive (loss) income |
(34,786,000) |
|
(30,658,000) |
|
(16,343,000) |
|
(14,827,000) |
Total shareholders' equity |
90,927,000 |
|
93,924,000 |
|
|
|
|
Total Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
Common shares outstanding |
2,982,236 |
|
3,036,757 |
Book value |
|
|
|
Tangible book value (non-GAAP) |
|
|
|
Closing price |
|
|
|
Allowance for credit losses to loans (end of period) |
1.19 % |
|
1.26 % |
Loans to deposits (end of period) |
69.42 % |
|
74.16 % |
|
3 months |
|
3 months |
|
6 months |
|
6 months |
|
|
|
|
|
|
|
|
Interest income |
|
|
|
|
|
|
|
Interest expense |
5,053,000 |
|
3,408,000 |
|
9,776,000 |
|
6,032,000 |
Net interest income |
7,449,000 |
|
8,432,000 |
|
14,597,000 |
|
16,991,000 |
|
|
|
|
|
|
|
|
Provision for credit losses |
(190,000) |
|
(70,000) |
|
(481,000) |
|
(96,000) |
Net interest income after provision |
7,639,000 |
|
8,502,000 |
|
15,078,000 |
|
17,087,000 |
|
|
|
|
|
|
|
|
Non-interest income |
2,026,000 |
|
2,123,000 |
|
4,305,000 |
|
3,865,000 |
Non-interest expense |
7,683,000 |
|
8,000,000 |
|
15,470,000 |
|
16,355,000 |
Income before federal income taxes |
1,982,000 |
|
2,625,000 |
|
3,913,000 |
|
4,597,000 |
|
|
|
|
|
|
|
|
Federal income taxes |
150,000 |
|
219,000 |
|
248,000 |
|
306,000 |
Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares outstanding |
2,990,805 |
|
3,068,605 |
|
3,008,541 |
|
3,098,891 |
|
|
|
|
|
|
|
|
Per Share Data: |
|
|
|
|
|
|
|
Net income (basic) |
|
|
|
|
|
|
|
Cash dividends declared |
|
|
|
|
|
|
|
Dividend yield (annualized) |
4.73 % |
|
4.67 % |
|
4.69 % |
|
4.56 % |
|
|
|
|
|
|
|
|
Performance Ratios: |
|
|
|
|
|
|
|
Return on average assets |
0.68 % |
|
0.88 % |
|
0.68 % |
|
0.78 % |
Return on average shareholders' equity |
8.42 % |
|
11.12 % |
|
8.19 % |
|
10.00 % |
Return on average tangible shareholders' equity |
12.27 % |
|
16.70 % |
|
11.78 % |
|
15.09 % |
Net interest margin |
3.12 % |
|
3.47 % |
|
3.07 % |
|
3.50 % |
Net loan charge-offs (recoveries) as a percentage of |
0.00 % |
|
-0.01 % |
|
0.00 % |
|
-0.01 % |
Directors
Herbert H. Huffman III
Officers
|
Directors
Herbert H. Huffman III
Dr.
|
Investor Materials
View original content:https://www.prnewswire.com/news-releases/united-bancshares-inc-announces-second-quarter-2024-results-and-0-22-dividend-302201228.html
SOURCE