OTC:UBOH
UNITED BANCSHARES INC/OH
A regional bank with $1.09B in assets delivering strong operating profitability despite recent capital outflows for investments.
Key Metrics
Investment Thesis
Bull Case
Investors may be attracted by the company's healthy shareholders equity of $82.7M and strong operating profit margin that converts a modest revenue base into substantial net income. The presence of accumulated other comprehensive losses suggests potential unrealized gains in securities portfolios that could boost future earnings upon realization.
Bear Case
The massive net change in cash of -$44.5M driven by heavy investing outflows raises concerns about capital preservation and sustainable growth without new financing. High interest expenses coupled with a retained earnings deficit indicate underlying leverage pressures that could deteriorate quickly if loan demand softens or rates stabilize.
About UNITED BANCSHARES INC/OH
United Bancshares Inc. operates as a diversified financial institution providing commercial and retail banking services, wealth management solutions, and investment advisory products to individuals and businesses across regional markets. The company leverages its substantial asset base of $1.09 billion to generate stable net interest income while managing liquidity through significant cash reserves.
Analysis
Management Discussion
The company reported a net profit of $11.3M against revenue of $1.2M, indicating significant non-interest income contributions or accounting adjustments within the operating expenses line. However, cash flow from investing activities showed a notable outflow of $103M alongside financing inflows of $41.7M, suggesting active balance sheet restructuring or security purchases.
Industry Overview
The regional banking sector faces headwinds from rising funding costs and competitive pressure on deposit rates, yet offers stability through diversified revenue streams beyond traditional net interest margins. United Bancshares exemplifies the modern bank's need to balance asset growth with liquidity management in a high-volatility macroeconomic environment.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 |
|---|---|
| Revenue | $1.2M |
| Cost of Revenue | $0 |
| Gross Profit | $1.2M |
| Operating Expenses | $-11.3M |
| Operating Income | $12.5M |
| D&A | $1.6M |
| Depreciation | $1.2M |
| Amortization | $140.0K |
| Non-Operating Income | $0 |
| Interest Expense | $3.3M |
| Pre-Tax Income | $12.5M |
| Income Tax | $1.2M |
| Continuing Ops | $11.3M |
| Discontinued Ops | $0 |
| Net Income | $11.3M |
| Minority Interest | $0 |
| Net to Common | $11.3M |
| Metric | 2022 |
|---|---|
| Cash & Equivalents | $30.7M |
| PP&E (Net) | $24.1M |
| Intangibles | $359.0K |
| Goodwill | $28.6M |
| Total Assets | $1.09B |
| Total Liabilities | $1.00B |
| Shareholders' Equity | $82.7M |
| Paid-In Capital | $17.0M |
| Retained Earnings | $112.5M |
| AOCI | $-38.4M |
| Treasury Stock | $12.3M |
| Total L&E | $1.09B |
| Metric | 2022 |
|---|---|
| Net Income (CFO) | $11.3M |
| Non-Cash Adjustments | $-29.8M |
| Working Capital Changes | $35.2M |
| Cash from Operations | $16.8M |
| Capital Expenditures | $3.6M |
| Cash from Investing | $-103.0M |
| Share Buybacks | $2.9M |
| Dividends Paid | $2.7M |
| Cash from Financing | $41.7M |
| FX Effect | $0 |
| Net Change in Cash | $-44.5M |
| Beginning Cash | $75.2M |
| Ending Cash | $30.7M |
Frequently Asked Questions
How does UNITED BANCSHARES INC/OH make money?
Commercial lending and deposit-taking services, retail banking and consumer loans, wealth management and advisory fees, and investment securities trading and holding.
What are the main risks for UBOH?
High interest rate sensitivity impacting the $3.3M interest expense and potential margin compression, substantial capital outflows for investing activities totaling $103M which may signal asset liquidation or aggressive trading strategies, elevated retained earnings deficit of $112.5M requiring careful equity management, and concentration risk inherent in regional banking models.
What is UBOH's competitive advantage?
Strong liquidity position with over $30M in cash and equivalents providing flexibility during market volatility, significant goodwill indicating a robust franchise value of $28.6M, and efficient cost structure yielding high operating margins relative to revenue scale.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.