United Bancshares, Inc. Announces Third Quarter 2026 Results and $0.26 Dividend

United Bancshares posts strong Q3 results, raises dividend by 13%, and grows loans and deposits.

What the company is saying

United Bancshares, Inc. (OTCQX:UBOH) is highlighting a robust third quarter and year-to-date 2026 performance, emphasizing a 13% increase in its quarterly dividend to $0.26 per share for shareholders of record on November 30, 2026, payable December 15, 2026. The company frames its narrative around realized improvements in profitability, with net income of $5.2 million ($1.90 per share) for Q3 and $10.5 million ($3.83 per share) year-to-date, both up significantly from 2025. Management, led by Chairman, President & CEO Brian D. Young and CFO Klint D. Manz, stresses strong returns on average tangible equity (25.73% for Q3, 17.18% YTD), improved net interest margins, and healthy loan and deposit growth. The announcement also points to stable asset quality and a prudent approach to credit loss provisioning, with $642,000 allocated YTD and a 1.08% allowance ratio. The tone is confident, with the board’s decision to raise the dividend and commentary on potential share repurchases framed as evidence of ongoing shareholder value creation. The company also provides full transparency by including detailed financial statements and performance ratios.

What the data suggests

The disclosed figures show clear year-over-year improvement across all major financial metrics. Net income rose from $3.0 million ($1.01 per share) in Q3 2025 to $5.2 million ($1.90 per share) in Q3 2026, and from $8.9 million ($3.00 per share) YTD 2025 to $10.5 million ($3.83 per share) YTD 2026. Return on average tangible equity increased from 15.89% to 25.73% for the quarter, and from 16.29% to 17.18% for the nine months. Net interest margin improved to 3.87% for Q3 and 3.95% YTD, up from 3.76% and 3.69% respectively. Loans grew by $43.4 million (7.01% annualized), and core deposits by $54.4 million (7.48% annualized), with total deposit growth of $135.7 million. Asset quality remains strong, with net loan charge-offs at 0.00% for Q3 and 0.01% YTD, and the allowance for credit losses to loans at 1.08%. Book value per share is $35.31 and tangible book value per share is $24.53, while the average share price in 2026 was $38.82, closing Q3 at $40.04. The dividend payout ratio is conservative at 13.7% of Q3 net income. The data supports management’s claims of improved profitability, growth, and capital strength.

Analysis

The announcement is a quarterly financial update with a positive tone, but the language is fully proportionate to the strong, realised results disclosed. All key claims—net income, EPS, return on equity, net interest margin, loan and deposit growth, asset quality—are supported by detailed, current-period numerical data. The only forward-looking statement is a generic comment about the long-term value of share repurchases, which is not presented as a near-term catalyst or major strategic shift. There is no evidence of narrative inflation or overstatement: the dividend increase is quantified and contextualised, and all operational and financial improvements are backed by hard numbers. No large capital outlay is disclosed, and all benefits (dividend, earnings, growth) are immediate and measurable. The gap between narrative and evidence is negligible.

Risk flags

• ●Deposit growth includes $61.9 million in brokered deposits and $19.4 million in state program fluctuations, which may not be as stable as core deposits. Reliance on these sources could introduce funding volatility if market or program conditions change.
• ●The allowance for credit losses to loans stands at 1.08%, and while asset quality metrics are currently strong, any deterioration in credit quality or economic environment could require higher provisions and impact future earnings.
• ●Loan growth of $43.4 million (7.01% annualized) is robust, but rapid expansion can increase risk if underwriting standards are not maintained or if economic conditions weaken, potentially leading to future asset quality issues.

Bottom line

United Bancshares, Inc. delivers a strong quarter with net income up 73% year-over-year and a 13% dividend increase, underpinned by higher returns on equity, improved net interest margin, and solid loan and deposit growth. The company’s asset quality remains stable, with minimal charge-offs and a conservative allowance for credit losses. While the growth in brokered and program deposits introduces some funding risk, core deposit and loan growth are both healthy. The payout ratio remains low, preserving capital for further growth or risk management. Management’s confidence is supported by comprehensive, transparent financial disclosures and prudent capital actions. Investors should see this as a credible signal of operational strength and capital discipline, with the main watchpoint being the sustainability of deposit and loan growth in a changing economic environment. The most important takeaway is that United Bancshares is executing well on profitability and capital return, with immediate, realized benefits for shareholders.

Announcement summary

(OTCQX: UBOH) United Bancshares, Inc. declared a quarterly cash dividend of $0.26 per share for shareholders of record on November 30, 2026, payable on December 15, 2026. This dividend represents a 13% increase from the same quarter in 2025 and is 13.7% of the reported net income for the third quarter of 2026. The company reported net income of $5.2 million ($1.90 per share) for the third quarter of 2026 and $10.5 million ($3.83 per share) year-to-date 2026, compared to $3.0 million ($1.01 per share) for the third quarter of 2025 and $8.9 million ($3.00 per share) year-to-date 2025. Return on average tangible equity was 25.73% for the third quarter and 17.18% for the first nine months of 2026, compared to 15.89% and 16.29% for the same periods in 2025. Net interest margin for the third quarter of 2026 was 3.87%, up from 3.76% in the comparable period in 2025, and year-to-date 2026 net interest margin was 3.95%, up from 3.69% year-to-date 2025. Loan growth was $43.4 million, an annualized growth rate of 7.01% from December 31, 2025. Deposits increased $135.7 million, including $61.9 million of brokered deposits and fluctuations in state deposit programs totaling $19.4 million, resulting in core deposit growth of $54.4 million or 7.48% annualized growth from December 31, 2025. The company allocated $642,000 to provision for credit losses so far in 2026. Asset quality metrics remain strong with stable non-performing and classified loans, and allowance for credit losses to loans was 1.08% on September 30, 2026. As of September 30, 2026, cash and cash equivalents were $57,121,000, securities were $428,469,000, loans were $868,505,000, and total assets were $1,458,290,000. Deposits were $1,191,472,000, borrowings were $163,628,000, and total liabilities were $1,363,248,000. Total shareholders' equity was $95,042,000, with common shares outstanding at 2,691,611. Book value per share was $35.31 and tangible book value per share (non-GAAP) was $24.53 as of September 30, 2026. The closing price of UBOH shares on the OTCQX market averaged $38.82 per share throughout 2026 and closed the third quarter at $40.04 per share. For the three months ended September 30, 2026, interest income was $18,669,000, interest expense was $6,278,000, net interest income was $12,391,000, provision for credit losses was $253,000, non-interest income was $1,777,000, non-interest expense was $8,254,000, income before federal income taxes was $5,661,000, and federal income taxes were $510,000. For the nine months ended September 30, 2026, interest income was $50,755,000, interest expense was $15,572,000, net interest income was $35,183,000, provision for credit losses was $642,000, non-interest income was $1,824,000, non-interest expense was $24,893,000, income before federal income taxes was $11,472,000, and federal income taxes were $972,000. Net loan charge-offs (recoveries) as a percentage of average outstanding net loans was 0.00% for the third quarter and 0.01% for the first nine months of 2026. The company continues to believe that repurchasing shares at appropriate levels brings long-term value to shareholders, and any share repurchase is entirely voluntary for both the shareholder and the company. The Board of Directors includes Robert L. Benroth, Herbert H. Huffman III, Kevin L. Lammon, R. Steven Unverferth, and Brian D. Young (Chairman). Officers include Brian D. Young (President/CEO), Jane M. Wood (Secretary), and Klint D. Manz (CFO).

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