Exhibit 99.2
United Bancshares, Inc.
Quarterly Report
September 30, 2005
Dear Shareholders, Customers and Employees,
The management of United is pleased to report that the Company’s third quarter and year-to-date earnings continue to improve. Year-to-date net income for 2005 was $3.4 million ($0.91 per share) compared to $2.7 million ($0.74 per share) for the same period in 2004, a 24% increase. The Company’s 2005 return on shareholders’ equity increased to 10.12% from 8.42% for the same period in 2004.
It should also be noted that the Company’s 2005 year-to-date dividends paid of $0.36 per share represents a 9% increase over the $0.33 per share paid for the same period in 2004.
In spite of continual upward pressure on operational expenses, we continue to work diligently to control costs. These successful efforts were reflected in an improved year-to-date efficiency ratio of 66.09% for 2005 compared to 71.28% for 2004. In addition, the Company experienced positive increases in loan balances and net interest margin for the third quarter and year-to-date.
As we plan for 2006 and the future, we look forward to continuing to serve our shareholders and meeting the needs of our customers.
Respectfully,
Daniel W. Schutt
President & CEO
United Bancshares, Inc.
and Subsidiary
Financial Highlights (unaudited)
Nine Months
Nine Months
Ended
Ended
September 30, 2005
September 30, 2004
(dollars in thousands, except share data)
CONDENSED STATEMENT OF INCOME
Interest income
$22,387
$19,638
Interest expense
8,827
7,821
Net interest income
13,560
11,817
Provision for loan losses
512
275
Net interest income after provision for loan losses
13,048
11,542
Non-interest income
2,038
2,266
Non-interest expenses
10,714
10,470
Income before income taxes
4,372
3,338
Provision for income taxes
1,010
633
Net income
$3,362
$2,705
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Average common shares outstanding
3,690,825
3,666,842
PER COMMON SHARE
Net income
$0.91
$0.74
Cash dividends
$0.36
$0.33
Book value
$12.11
$12.18
Closing price
$16.20
$15.50
FINANCIAL RATIOS
Return on average assets
0.81%
0.70%
Return on average equity
10.12%
8.42%
Net interest margin
3.64%
3.50%
Efficiency ratio
66.09%
71.28%
Loans to deposits
87.92%
82.50%
Allowance for loan losses to loans
0.83%
0.86%
Cash dividends to net income
39.43%
44.82%
PERIOD END BALANCES
As of
As of
September 30, 2005
December 31, 2004
Assets
$541,227
$559,323
Loans
$313,896
$305,790
Deposits
$357,527
$369,767
Shareholders’ equity
$43,993
$44,229
Common shares outstanding
3,631,449
3,688,981
DIRECTORS/OFFICERS
UNITED BANCSHARES, INC.
Robert L. Benroth
H. Edward Rigel
Robert L. Dillhoff
David P. Roach
Joe S. Edwards, Jr.
R. Steven Unverferth
P. Douglas Harter
James N. Reynolds— Chairman
Daniel W. Schutt—President/CEO
Bonita R. Selhorst—Secretary
Brian D. Young—CFO/Treasurer
DIRECTORS
THE UNION BANK CO.
Robert L. Benroth
William R. Perry
Robert L. Dillhoff
James N. Reynolds
Joe S. Edwards, Jr.
H. Edward Rigel
P. Douglas Harter
David P. Roach
Herbert H. Huffman
Robert M. Schulte, Sr.
Kevin L. Lammon
R. Steven Unverferth
James A.O’Neill, M.D.
Daniel W. Schutt—President/CEO/Chairman
INVESTOR MATERIALS:
Annual and quarterly shareholder reports, regulatory filings, press releases, and articles about The Union Bank Company are available in the Shareholder Information section of our website www.theubank.com or by calling 1-800-837-8111.
Office
Locations
Bowling Green
1204 W. Wooster St.
419-353-6088
Columbus Grove
100 S. High St.
419-659-2141
Delphos
114 E. 3rd St.
419-692-2010
Gibsonburg
230 W. Madison St.
419-637-2124
Kalida
110 E. North St.
419-532-3366
Leipsic
318 S. Belmore St.
419-943-2171
Lima—Downtown
215 W. Market St.
419-228-2114
Lima—East
1410 Bellefontaine Ave.
419-229-6500
Lima—West
3211 Elida Rd.
419-331-3211
Ottawa
245 W. Main St.
419-523-2265
Pemberville
132 E. Front St.
419-287-3211
