UNITED BANCSHARES, INC. ANNOUNCES FIRST QUARTER 2025 RESULTS AND $0.23 DIVIDEND

United Bancshares, Inc. (OTCQX: UBOH)

— Quarterly cash dividend declared of $0.23 per share, a 4.5% increase, for shareholders of record on May 30, 2025, payable on June 16, 2025. Based on the average closing price for the first quarter, this is a 3.23% dividend yield.

— Net income of $2.8 million or $0.94 per share for the 2025 first quarter. This is a $959,000 increase from $1.8 million or $0.61 per share in the comparable period in 2024.

— Return on average assets of 0.94% for the 2025 first quarter, an increase from 0.69% in the comparable period in 2024.

— Return on average tangible equity of 15.78% for the 2025 first quarter, an increase from 11.33% in the comparable period in 2024.

— Net interest margin of 3.59% for the 2025 first quarter, an increase from 3.03% in the comparable period in 2024.

— Loan growth of $17.9 million, annualized growth rate of 9.4% from December 31, 2024.

— Deposit growth of $3.9 million, annualized growth rate of 1.5% from December 31, 2024.

— Asset quality metrics remain strong with stable non-performing and classified loans. Charge-offs remain at historically low levels through March 31, 2025.

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 14 full-service branch locations across Northwest and Central Ohio, including Bowling Green, Columbus Grove, Delphos, Findlay, Gibsonburg, Kalida, Leipsic, Lewis Center, Lima, Marion, Ottawa, Paulding and Pemberville. We have Interactive Teller Machines (ITMs) located at all of our branch locations with additional ITM only locations in Lima, Marion, Paulding and Westerville. The Union Bank Company is headquartered in Columbus Grove, Ohio, and remains committed to providing the best banking service and products to all the communities we serve. Learn more at www.theubank.com.

Contact: Brian D. Young, President and CEO Klint D. Manz, Chief Financial Officer 419.659.2141

UnitedBancshares, Inc. Quarterly Report March 31, 2025

Shareholders, Clients, and Team Members:

I am pleased to report that your Company had a strong start to 2025 with reported net income of $2.8 million ($0.94/share) and 15.78% return on average tangible equity. During the first quarter the Company also reported $17.9 million in loan growth (9.36% annualized) and $3.9 million in deposit growth (1.45% annualized). Net interest margin also improved to 3.59% from 3.03% and 3.39% in the first and fourth quarters of 2024, respectively. While credit quality remained stable, the company did allocate $93,000 to provision for credit losses primarily as the result of the noted loan growth.

As a result of these successes, the Board of Directors declared a $0.23 per share quarterly dividend, a 4.5% increase from fourth quarter 2024, payable on June 16th for shareholders of record on May 30th. The dividend is 24.5% of the reported net income for the first quarter of 2025.

Throughout 2025, we plan to continue to grow the number and size of client relationships, introduce an all-new digital platform for our clients, provide clients weekday access to a live teller from 7am – 7pm at all our locations as well as online chat, and identify new technology to create internal efficiencies. While we expect to offer all these services and technology enhancements, we do not expect to see an increase in costs because of new and renegotiated vendor contracts and technology implementation. 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. Management also intends to continue to repurchase shares as opportunities to create value for our shareholders present themselves.

The continued accomplishments of your Company are the undeniable result of the ongoing efforts of the Company's dedicated team members and Board of Directors in implementing our Strategic Plan. Their efforts 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

March 31, 2025 December 31, 2024Cash and cash equivalents $ 92,368,000 $ 95,283,000Securities 228,827,000 242,069,000Loans 784,925,000 766,987,000Less allowance for credit losses (8,268,000) (7,937,000)Other assets 98,675,000 92,928,000Total Assets $1,196,527,000 $1,189,330,000Deposits $1,074,983,000 $1,071,105,000Borrowings 16,836,000 17,091,000Other liabilities 6,279,000 6,394,000Total Liabilities 1,098,098,000 1,094,590,000Common stock and surplus 21,758,000 21,461,000Retained earnings 126,961,000 124,822,000Accumulated other comprehensive (loss) income (33,426,000) (34,786,000)Treasury stock (16,864,000) (16,757,000)Total shareholders' equity 98,429,000 94,740,000Total Liabilities and Shareholders' Equity $1,196,527,000 $1,189,330,000Common shares outstanding 2,983,571 2,964,007Book value $32.99 $31.96Tangible book value (non-GAAP) $23.37 $22.28Closing price $26.75 $31.00Allowance for credit losses to loans 1.06% 1.04%(end of period, excluding LHFS)Loans to deposits 73.02% 71.61% 3 months ended 3 months ended March 31, 2025 March 31, 2024Interest income $14,184,000 $11,871,000Interest expense 4,641,000 4,723,000Net interest income 9,543,000 7,148,000Provision for credit losses 93,000 (291,000)Net interest income after provision 9,450,000 7,439,000Non-interest income 1,801,000 2,279,000Non-interest expense 8,124,000 7,787,000Income before federal income taxes 3,127,000 1,931,000Federal income taxes 335,000 98,000Net Income $2,792,000 $1,833,000Average common shares outstanding 2,968,959 3,026,556Per Share Data:Net income (basic) $0.94 $0.61Cash dividends declared $0.23 $0.22Dividend yield (annualized) 3.23% 4.66%based on quarterly avg closing pricePerformance Ratios:Return on average assets 0.94% 0.69%Return on average tangible shareholders' equity 15.78% 11.33%Net interest margin 3.59% 3.03%Credit Quality and Other Ratios:Net loan charge-offs (recoveries) as a (0.13%) 0.00%percentage of average outstanding net loansUnited Bancshares, Inc The Union Bank Co.Directors DirectorsRobert L. Benroth Robert L. BenrothHerbert H. Huffman III Anthony M. V. EramoH. Edward Rigel Herbert H. Huffman IIIDaniel W. Schutt, Chairman Kevin L. LammonR. Steven Unverferth John P. MillerBrian D. Young William R. PerryOfficers H. Edward RigelBrian D. Young, President/CEO Carol R. RussellDenise E. Giesige, Secretary Daniel W. SchuttKlint D. Manz, CFO R. Steven Unverferth Dr. Jane M. Wood Brian D. Young, Chairman

Investor MaterialsUnited 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.

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