UNITED BANCSHARES, INC. ANNOUNCES FOURTH QUARTER AND FULL YEAR 2023 RESULTS AND $0.22 DIVIDEND

COLUMBUS GROVE, Ohio, Jan. 18, 2024 /PRNewswire/ -- United Bancshares, Inc. (OTCQX: UBOH)

• Quarterly cash dividend declared of $0.22 per share for shareholders of record on February 29, 2024, payable on March 15, 2024. This dividend is up 4.76% from the prior year comparable period. Based on the average closing price for the fourth quarter, this is a 4.99% dividend yield.

• Net income of $2.3 million or $0.77 per share for the 2023 fourth quarter, down from $3.5 million or $1.10 per share in the comparable period in 2022 ($2.7 million or $0.85 per share when excluding a $1.0 million provision for credit loss reversal). YTD 2023 net income of $8.6 million or $2.80 per share, down from $11.3 million or $3.47 per share YTD 2022 ($9.7 million or $2.98 per share when excluding a one-time BOLI death benefit and a $1.0 million provision for credit loss reversal).

• Return on average assets of 0.88% for the 2023 fourth quarter, down from 1.33% in the comparable period in 2022 (1.03% when excluding a $1.0 million provision for credit loss reversal). YTD 2023 return on average assets of 0.79%, down from 1.06% YTD 2022 (0.91% when excluding a one-time BOLI death benefit and a $1.0 million provision for credit loss reversal).

• Return on average tangible equity of 19.28% for the 2023 fourth quarter, down from 30.05% in the comparable period in 2022 (23.33% when excluding a $1.0 million provision for credit loss reversal). YTD 2023 return on average tangible equity of 15.82%, down from 17.70% YTD 2022 (15.23% when excluding a one-time BOLI death benefit and a $1.0 million provision for credit loss reversal).

• Net interest margin of 3.37% for the 2023 fourth quarter, down from 4.03% in the comparable period in 2022. YTD 2023 net interest margin of 3.45%, down from 3.74% YTD 2022.

• Deposits were flat year over year and loan growth of $21.3 million represented a 4.13% annualized growth rate from December 31, 2022.

• Asset quality metrics remain strong with stable non-performing and classified loans. Charge-offs remain at historically low levels through December 31, 2023.

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.

United Bancshares, Inc.
Quarterly Report
December 31, 2023

A Letter to Our Shareholders, Clients, and Team Members:

Despite the significant challenges to the banking industry throughout 2023, I am pleased to report that your Company had a successful year. In addition to reporting income before taxes of approximately $9.3 million and return on average tangible equity of 15.82%, your Company continued to focus on serving our communities. As a result of these successes, the Board of Directors declared a $0.22 per share quarterly dividend payable on March 15^th for shareholders of record on February 29^th.

While earnings were negatively impacted by cost inflation, shrinking margins, severely limited residential mortgage activity, tightening of the labor force and economic uncertainties, your Company minimized the impact by reducing non-interest expenses by over $2.5 million, reduced outstanding shares by 242,756 over the last 18 months through repurchasing efforts, and restrained from making loans until rates reached profitable levels. Selectively growing the loan portfolio in the first half of 2023 has positioned the Bank to have capital for share repurchases and to obtain more profitable loans at the end of 2023, thereby saving quality loan growth capacity for 2024, while many peers start the year with less liquidity.

In 2024, we plan to make investments in technology to create internal efficiencies, reduce the risk of fraud, and enhance customer tools and resources. Such investments are expected to yield positive results in our cost structure and in customers' ease in the use of our technology-based products. We believe that effectively implementing technology will promote growth and provide the opportunity to increase the effectiveness of our team members in serving our clients.

While we expect the headwinds to continue to have a negative impact on our industry's earnings throughout 2024, we believe that continued focus on cost controls, new loan originations and upward repricing of existing loans 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 & CEO

Financial Information (Unaudited)

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.

SOURCE United Bancshares, Inc.