UNITED BANCSHARES, INC. ANNOUNCES FOURTH QUARTER AND FULL YEAR 2024 RESULTS AND $0.22 DIVIDEND

United Bancshares, Inc. (OTCQX: UBOH)

— Quarterly cash dividend declared of $0.22 per share for shareholders of record on February 28, 2025, payable on March 17, 2025. Based on the average closing price for the fourth quarter, this is a 3.93% dividend yield.

— Net income of $3.0 million or $1.02 per share for the 2024 fourth quarter. This is a $680,000 increase from $2.3 million or $0.77 per share in the comparable period in 2023. YTD 2024 net income of $9.2 million or $3.06 per share. This is a $549,000 increase from $8.6 million or $2.80 per share YTD 2023.

— Return on average assets of 0.98% for the 2024 fourth quarter, an increase from 0.88% in the comparable period in 2023. YTD 2024 return on average assets of 0.80%, up slightly from 0.79% YTD 2023.

— Return on average tangible equity of 17.27% for the 2024 fourth quarter, down from 19.28% in the comparable period in 2023. YTD 2024 return on average tangible equity of 14.06%, down from 15.82% YTD 2023.

— Net interest margin of 3.39% for the 2024 fourth quarter, increase from 3.37% in the comparable period in 2023. YTD 2024 net interest margin of 3.17%, down from 3.45% YTD 2023.

— Loan growth of $58.2 million, up 8.2% from December 31, 2023.

— Deposit growth of $118.3 million, up 12.4% from December 31, 2023.

— Asset quality metrics remain strong with stable non-performing and classified loans. Charge-offs remain at historically low levels through December 31, 2024.

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 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, 2024

Shareholders, Clients, and Team Members:

Despite the continued challenges to the banking industry throughout 2024, I am pleased to report that your Company had a successful fourth quarter and year. In addition to reporting net income of approximately $3.0 million ($1.02/share) and $9.2 million ($3.06/share) for the fourth quarter and 2024, respectively, the Company had a return on average tangible equity of 17.27% and 14.06%, for those same periods, respectively.

The Company also reported $58.2 million in loan growth (8.2%) and $118.3 million in deposit growth (12.4%) for the twelve-month period ending December 31, 2024. As a result of these successes, the Board of Directors declared a $0.22 per share quarterly dividend payable on March 17th for shareholders of record on February 28th. The dividend is 21.6% of the reported net income for the fourth quarter of 2024.

The fourth quarter's performance provides significant momentum as we move into 2025. This momentum follows 18 consecutive months (November 2022 to April 2024) of declining margin income as the result of the rapid increase in short-term interest rates. Additionally, the resulting inverted yield curve, coupled with management's decision to remain very disciplined on loan pricing, impaired loan growth during that time.

The Company began to see margin improvement in May of 2024. The rapid increase in margin income over the remaining seven months of 2024 was the result of increasing numbers of loans repricing to market interest rates, the company's quick response to the opportunity to get significantly below market interest rate deposits through the Ohio Homebuyer Plus program, and a 12.5% annualized increase in loans as the Company began to take advantage of tighter liquidity in the market and the availability of elevated loan interest rates. Additionally, as the result of our ongoing evaluation of the risk in our loan portfolio, management also reported a decrease of $345,000 and $1.1 million in its Allowance for Credit Loss (“ACL”) reserve for the fourth quarter and year, respectively.

In 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.

While the fourth quarter brought numerous positives to the Company, it is with a heavy heart that I share that David Roach, a Director at United Bancshares, Inc. and The Union Bank Company since 2001, passed away in December 2024. Dave blessed us with his never-ending encouragement, kindness, humility and compassion. We will continue his legacy as we serve others throughout our Company and our communities and jointly share our condolences to his wife, daughters and his entire family.

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

Financial Information (Unaudited)

December 31, 2024 December 31, 2023Cash and cash equivalents $ 95,283,000 $ 26,915,000Securities 242,069,000 253,588,000Loans 766,987,000 708,828,000Less allowance for credit losses (7,937,000) (8,876,000)Other assets 92,928,000 91,043,000Total Assets $1,189,330,000 $1,071,498,000Deposits $ 1,071,105,000 $ 952,845,000Borrowings 17,091,000 18,043,000Other liabilities 6,394,000 6,686,000Total Liabilities 1,094,590,000 977,574,000Common stock and surplus 21,461,000 21,109,000Retained earnings 124,822,000 118,300,000Accumulated other comprehensive loss (34,786,000) (30,658,000)Treasury stock (16,757,000) (14,827,000)Total shareholders' equity 94,740,000 93,924,000Total Liabilities and Shareholders' Equity $1,189,330,000 $1,071,498,000Common shares outstanding 2,964,007 3,036,757Book value $31.96 $30.93Tangible book value (non-GAAP) $22.28 $21.43Closing price $31.00 $19.26Allowance for credit losses to loans (end of period) 1.04% 1.26%Net loans to deposits (end of period) 71.61% 74.39% 3 months 3 months 12 months 12 months ended ended ended ended Dec 31, Dec 31, Dec 31, Dec 31, 2024 2023 2024 2023Interest income $14,581,000 $12,203,000 $53,284,000 $47,201,000Interest expense 5,223,000 4,261,000 20,985,000 14,094,000Net interest income 9,358,000 7,942,000 32,299,000 33,107,000Provision for credit losses (345,000) (298,000) (1,114,000) (391,000)Net interest income after 9,703,000 8,240,000 33,413,000 33,498,000provisionNon-interest income 2,001,000 1,752,000 8,419,000 7,375,000Non-interest expense 8,396,000 7,421,000 31,915,000 31,584,000Income before federal income 3,308,000 2,571,000 9,917,000 9,289,000taxesFederal income taxes 288,000 231,000 762,000 683,000Net Income $3,020,000 $2,340,000 $9,155,000 $8,606,000Average common shares 2,969,997 3,035,282 2,991,687 3,072,468outstandingPer Share Data:Net income (basic) $1.02 $0.77 $3.06 $2.80Cash dividends declared $0.22 $0.22 $0.88 $0.88Dividend yield (annualized) 3.93% 4.99% 4.42% 4.70%based on quarterlyavg. closing pricePerformance Ratios:Return on average assets 0.98% 0.88% 0.80% 0.79%Return on average 12.42% 12.09% 9.91% 10.33%shareholders' equityReturn on average 17.27% 19.28% 14.06% 15.82%tangible shareholders' equityNet interest margin 3.39% 3.37% 3.17% 3.45%Net loan charge-offs 0.01% 0.00% 0.00% -0.01%(recoveries) as apercentage ofaverage 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 William R. PerryBrian D. Young H. Edward RigelOfficers Carol R. RussellBrian D. Young, President/CEO Daniel W. SchuttDenise E. Giesige, Secretary R. Steven UnverferthKlint D. Manz, CFO 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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