Executive Summary

Q3 2022 EPS was $0.94 and net income was $3.09M, down 24.6% year over year (EPS $1.25; net income $4.09M) but up sequentially from Q2 EPS $0.66 and net income $2.17M .
Total quarterly revenue (net interest income + non-interest income) rose sequentially to ~$12.15M from ~$10.91M in Q2 but fell year over year from ~$14.62M in Q3 2021, reflecting mortgage banking weakness and PPP fee runoff .
Results included a non-core boost: a $797k BOLI death benefit, contributing ~$0.24 to EPS; core drivers included higher portfolio rates and hedging income, partially offset by lower gain-on-sale mortgage activity .
Tangible book value per share fell materially due to rising rates: management cited a $46.3M unrealized AFS loss (net of tax) and a $13.67 per-share TBV decrease since Dec-2021; dividend of $0.21 per share was maintained (payable Dec 15, 2022) .

What Went Well and What Went Wrong

What Went Well

Sequential improvement: EPS rose to $0.94 and net income to $3.09M in Q3 from $0.66/$2.17M in Q2 as net interest income increased to $9.33M and non-interest income rebounded to $2.82M .
Diversified non-interest income: hedging program income increased by ~$310k in Q3, and other non-interest income was aided by the $797k BOLI benefit .
Cost discipline: non-interest expense declined $815k year over year (to $8.87M) with notable reductions in salaries/benefits, loan origination, data processing, and advertising/promo .
- “We remain focused on continuing to add value to our shareholders through core revenue growth, strong asset quality, and consistent dividends.” — Brian D. Young, CEO .

What Went Wrong

Mortgage banking contraction: gain-on-sale revenue fell sharply; loans sold dropped to 158 totaling $41.6M vs 328 totaling $90.4M in Q3 2021, and net gain fell to 1.77% from 4.06% .
PPP fee runoff: loan interest income decreased $1.29M year over year, driven by a $2.24M decline in PPP fees, partially offset by $0.95M from higher rates and balances .
Tangible book value pressure: rising long-term rates produced a $46.3M unrealized AFS loss (net of tax), decreasing TBV by $13.67 per share since year-end; equity fell to $73.82M by Q3 .

Financial Results

Quarterly progression (Q1 → Q2 → Q3 2022)

Metric	Q1 2022	Q2 2022	Q3 2022
Net Interest Income ($USD Millions)	$8.20	$8.68	$9.33
Non-Interest Income ($USD Millions)	$3.08	$2.23	$2.82
Total Revenue (NII + Non-Interest) ($USD Millions)	~$11.28	~$10.91	~$12.15
Non-Interest Expense ($USD Millions)	$8.40	$8.56	$8.87
Net Income ($USD Millions)	$2.52	$2.17	$3.09
Basic EPS ($USD)	$0.77	$0.66	$0.94
Net Interest Margin, tax-equivalent (%)	3.42%	3.52%	3.65% (9M annualized)

Note: “Total Revenue” constructed from disclosed components (NII + non-interest income).

Year-over-year comparison (Q3 2021 vs Q3 2022)

Metric	Q3 2021	Q3 2022
Net Interest Income ($USD Millions)	$9.90	$9.33
Non-Interest Income ($USD Millions)	$4.71	$2.82
Non-Interest Expense ($USD Millions)	$9.68	$8.87
Net Income ($USD Millions)	$4.09	$3.09
Basic EPS ($USD)	$1.25	$0.94

KPIs and Balance Metrics

KPI	Q1 2022	Q2 2022	Q3 2022
Loans Sold (count)	192	191	158
Loans Sold ($USD Millions)	$55.3	$51.8	$41.6
Net Gain on Sale (%)	0.86%	-0.08%	1.77%
Deposits (period end, $USD Millions)	$944.8	$998.2	$960.8
Loans, Gross (period end, $USD Millions)	$614.2	$625.6	$637.4
Shareholders’ Equity (period end, $USD Millions)	$99.37	$87.12	$73.82
Tangible Book Value per Share ($)	$21.43	$17.71	$13.83
ROAA (%)	0.94%	0.87%	0.96% (9M annualized)
Efficiency Ratio (%)	72.95%	74.83%	73.62% (9M annualized)
Dividend per Share ($)	$0.21 (paid Jun 15)	$0.21 (paid Sep 15)	$0.21 (payable Dec 15)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per Share	Q4 2022 distribution	$0.21 per share payable Sep 15, 2022	$0.21 per share payable Dec 15, 2022	Maintained
Revenue, Margins, OpEx, OI&E, Tax Rate	N/A	Not provided	Not provided	N/A (no formal guidance issued)

Earnings Call Themes & Trends

Note: No Q3 2022 earnings call transcript was available; themes reflect quarterly report and press release commentary.

Topic	Previous Mentions (Q1 and Q2 2022)	Current Period (Q3 2022)	Trend
Residential mortgage activity	Headwinds suppressing earnings; continuing to expand mortgage for long-term returns	Significant decrease in gain-on-sale and loan volumes; 158 loans sold vs 328 YoY; net gain 1.77% vs 4.06%	Deteriorating
PPP fee runoff / core NII	PPP fee reductions pressured loan interest income (Q1 -$712k; Q2 -$771k)	PPP fee decrease of $2.24M YoY; partially offset by higher portfolio rates and loan balances (+$0.95M)	Headwind moderating
Hedging program income	+$1.25M (Q1); +$2.35M YTD by Q2	+$0.31M in Q3; YTD increase +$2.66M	Supportive
Net interest margin (tax-equivalent)	3.42% (Q1 annualized)	3.52% (6M annualized)	3.65% (9M annualized)
Deposits and loan growth	Deposits +$14.4M Q1; +$67.8M by Q2; loans grew modestly	Deposits $960.8M; loans gross $637.4M; steady relationship growth	Mixed (seasonal pullback in deposits)
Rates/AFS unrealized losses	Rising rates impacting securities AFS; equity down by Q2	AFS unrealized loss $46.3M (net of tax); TBV -$13.67/share since Dec-2021	Worsened with rate rise
Dividends	$0.21 declared (paid Jun 15)	$0.21 declared (paid Sep 15)	$0.21 declared (payable Dec 15)

Management Commentary

“As the result of record inflation, rapidly rising interest rates, and recession fears, the banking industry and our overall economy continues to face significant headwinds.”
“The rapid increase in interest rates has created a $46.3 million unrealized loss position on available-for-sale securities, net of tax, which has contributed to the decrease in your Company’s tangible book value by $13.67 per share since December 31, 2021.”
“Based on the Company’s current liquidity position, I believe it is very unlikely that those losses will be realized. As such, we remain focused on continuing to add value to our shareholders through core revenue growth, strong asset quality, and consistent dividends.” — Brian D. Young, CEO
“The third quarter results include a $797,000, or $0.24 basic earnings per share, increase in non-interest income due to a BOLI death benefit payment.”

Q&A Highlights

No earnings call transcript was found for Q3 2022; analysis reflects press release and quarterly shareholder report disclosures .

Estimates Context

Wall Street consensus (S&P Global) for Q3 2022 EPS and revenue was unavailable at time of request, preventing beat/miss assessment versus estimates.
Given limited sell-side coverage and tool access limits, we cannot compare reported EPS $0.94 and “total revenue” (constructed) to consensus for Q3 2022 .

Key Takeaways for Investors

Sequential recovery: EPS rose to $0.94 and net income to $3.09M; total revenue improved to ~$12.15M from ~$10.91M in Q2, suggesting core stabilization amid rate tailwinds .
Non-core boost: A $797k BOLI benefit added ~$0.24 to EPS; investors should adjust for non-recurring items when assessing trend durability .
Mortgage headwinds remain the core drag: loans sold and gain-on-sale metrics declined sharply year over year, constraining non-interest income leverage .
Margin tailwind: tax-equivalent NIM improved to 3.65% on a nine-month annualized basis, supported by higher portfolio rates; monitor deposit costs to gauge forward NII trajectory .
Capital optics: TBV per share fell to $13.83 with a $46.3M unrealized AFS loss (net of tax); while management expects losses unlikely to be realized, mark-to-market optics can weigh on valuation multiples and stock sentiment .
Balance growth cadence: loans gross reached $637.4M and deposits totaled $960.8M; steady core growth offsets macro softness in mortgage .
Shareholder returns consistent: $0.21 dividend declared payable Dec 15, 2022; maintenance of dividend signals confidence in core earnings and liquidity .

UNITED BANCSHARES INC/OH (UBOH)·Q3 2022 Earnings Summary