Executive Summary

Q4 2022 EPS was $1.10 and net income $3.534M, up 30.1% YoY; management noted underlying EPS was $0.91 excluding the tax-effected impact of the negative loan loss provision and unfunded commitment liability change .
Mix shift: Net interest income rose 8.4% YoY on higher rates and loan growth, while mortgage banking revenue fell sharply; non-interest income declined 41.5% YoY as secondary-market gains compressed and volumes fell .
Balance sheet: Loans grew 12.1% YoY; deposits +2.5% YoY; other borrowings increased to $44.1M (+120.6%) amid higher-rate environment; allowance-to-loans at 1.38% remains “strong” .
Dividend increased to $0.22 per share (from $0.21 in Q3), signaling confidence despite tangible book pressure from AFS marks; management believes unrealized losses are unlikely to be realized given liquidity alternatives .

What Went Well and What Went Wrong

What Went Well

Net interest income increased $730K YoY to $9.471M on rising portfolio rates and strong loan growth; investment portfolio interest also helped, while PPP fee runoff was a headwind that was more than offset .
Negative $1.0M provision for loan losses supported earnings as COVID-related concerns waned; allowance-to-loans ratio remains solid at 1.38% .
Cost discipline: Non-interest expenses fell $560K YoY (-6.3%) with notable declines in salaries/benefits (-$769K) and advertising (-$258K) .

Management quote: “Excluding PPP fees, net interest income increased $4.4 million with 43 basis points increase in net margin, non-interest expenses decreased $2.6 million, and gross loan and deposit balances increased $74 million and $23 million, respectively during 2022.”

What Went Wrong

Non-interest income decreased $1.292M (-41.5%) YoY as gain on sale of loans fell 84.9% on much lower mortgage activity ($24.6M sold vs $72.5M YoY) and tighter gain-on-sale margins (1.24% vs 2.89%) .
Interest expense climbed $652K YoY due to rising rates, pressuring funding costs into year-end .
Tangible book value was significantly hit by AFS marks; shareholders’ equity fell to $82.7M from $119.1M YoY driven by $42.4M net unrealized losses (AOCI) plus share repurchases and dividends, despite $11.31M net income .

Analyst concern: Rapid rate increases drove $53.6M decline in market value of AFS securities since 12/31/21, reducing tangible book value by $13.43 per share; management expects losses are unlikely to be realized, but AOCI volatility remains a sensitivity .

Financial Results

Sequential comparison (oldest → newest)

Metric	Q2 2022	Q3 2022	Q4 2022
Total revenue ($USD Millions)	$10.908	$12.152	$11.296
Net interest income ($USD Millions)	$8.682	$9.329	$9.471
Non-interest income ($USD Millions)	$2.226	$2.823	$1.825
Non-interest expense ($USD Millions)	$8.564	$8.865	$8.287
Net income ($USD Millions)	$2.170	$3.086	$3.534
EPS (basic, $USD)	$0.66	$0.94	$1.10

Note: “Total revenue” is derived as net interest income + non-interest income from the company’s release for each quarter .

YoY comparison (Q4 2022 vs Q4 2021)

Metric	Q4 2021	Q4 2022
Net interest income ($USD Millions)	$8.741	$9.471
Non-interest income ($USD Millions)	$3.117	$1.825
Non-interest expense ($USD Millions)	$8.847	$8.287
Net income ($USD Millions)	$2.717	$3.534
EPS (basic, $USD)	$0.83	$1.10

KPIs

KPI	Q2 2022	Q3 2022	Q4 2022
Net interest margin (tax-equivalent, period context)	3.52% (6M annualized)	3.65% (9M annualized)	3.75% (FY annualized)
Loans originated & sold ($USD Millions)	51.8	41.6	24.6
Net gain on sale (%)	(0.08%)	1.77%	1.24%
Allowance for loan losses / Loans (%)	—	—	1.38%
Loans, gross ($USD Millions, period-end)	625.6	637.4	683.6
Deposits ($USD Millions, period-end)	998.2	960.8	953.9

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share	Payable March 15, 2023	$0.21 (declared for Dec 15, 2022)	$0.22	Raised
Revenue (NII, non-interest), Margins, OpEx, Tax rate, Segment guidance	2023	Not provided	Not provided	Maintained “no formal guidance” (company did not issue forward guidance in 8-K materials)

Earnings Call Themes & Trends

Note: No earnings call transcript found for Q4 2022; themes compiled from shareholder letters and 8-K releases .

Topic	Previous Mentions (Q2 2022)	Previous Mentions (Q3 2022)	Current Period (Q4 2022)	Trend
Interest rates / NIM	Maintained NIM TE at 3.52%; rates rising created AFS unrealized losses and funding pressure	NIM TE improved to 3.65%; continued rate-driven AFS losses; funding costs rising	NIM TE 3.75% for FY; rate increases continued; management expects AFS losses unlikely to be realized	Improving NIM, AFS sensitivity persists
Mortgage banking	Sharp decline in gain on sale; (0.08%) margin; volume down	Gains down 77.6%; margin 1.77%; volume down materially	Gains down 84.9%; margin 1.24%; volume $24.6M vs $72.5M YoY	Deteriorating vs 2021; stabilizing margin from Q2 low
PPP runoff	PPP fee reductions pressured loan interest income	PPP fee decline continued	PPP fees decreased $693K YoY; offset by loan rate/balance growth	Headwind largely waning
Hedging / BOLI income	Hedging program income +$1.106M in Q2; BOLI steady	Hedging +$310K; BOLI +$794K death benefit	Hedging +$475K; BOLI contributed to FY (+$802K)	Supportive to other income
Loans & deposits	Deposits +$67.8M YTD; loans +$16.0M by Q2	Deposits +$30.4M YTD; loans +$27.9M	Loans +$74.0M YoY; deposits +$23.5M YoY	Solid loan growth; moderate deposit growth
Capital / AOCI	Equity fell on AFS marks; -$35.4M net unrealized losses	Equity down; -$50.3M net unrealized losses	Equity down; -$42.4M net unrealized losses YoY; TBV per share down $13.43 since 12/31/21	AOCI volatility persists

Management Commentary

“I am pleased to report that, once again, your Company had a successful year… the Board of Directors declared a $0.22 per share dividend, a 4.8% increase…” .
“The cumulative effect of those adjustments… were evident by the Company’s reporting of $1.10 earnings per share in the fourth quarter ($.91 per share excluding the tax effected positive impact of $606,000 from the negative loan loss provision and offsetting increase in the unfunded commitment liability).”
“The rapid increase in interest rates has created a decline in the market value of our available for sale securities portfolio of $53.6 million… Based on the Company’s current alternative sources of liquidity, I believe it is very unlikely that those losses will be realized.”

Q&A Highlights

No Q4 2022 earnings call transcript found; the company furnished a press release and shareholder letter via 8-K. No Q&A disclosures available .

Estimates Context

Wall Street consensus estimates via S&P Global for Q4 2022 EPS and revenue were unavailable; attempts to retrieve consensus faced data-access limits for this microcap at the time of analysis. As such, no estimate comparison can be provided [GetEstimates error log].

Key Takeaways for Investors

Earnings quality: Reported EPS $1.10 benefited from a $1.0M negative provision; underlying EPS ~$0.91 gives a cleaner run-rate lens—watch reserve release normalization in 2023 .
Core NII momentum: Higher rates and loan growth supported NII; look for continued asset repricing to offset rising deposit costs; NIM trend positive into year-end .
Mortgage banking reset: Volume and gain-on-sale compression pressured non-interest income; near-term contribution likely subdued versus 2021 bull market in refis .
Capital and AOCI: Tangible book remains sensitive to rate moves via AFS; management expects unrealized losses won’t be realized given liquidity, but AOCI volatility can weigh on valuation multiples .
Balance sheet: Loans +12.1% YoY and deposits +2.5% YoY; borrowings up materially (+120.6%)—monitor wholesale funding reliance and pricing in a higher-rate regime .
Dividend signaling: Raise to $0.22 suggests confidence in core earnings and capital; income investors may find support while TBV optics improve with rate stabilization .
Trading implications: Near term, stock narrative hinges on NIM trajectory vs funding costs and any further reserve actions; medium term, stabilization of AOCI and resumption of mortgage activity could lift non-interest income mix .

UNITED BANCSHARES INC/OH (UBOH)·Q4 2022 Earnings Summary