Exhibit 99.2
United Bancshares, Inc.
Quarterly Report
December 31, 2008
Dear Shareholders, Customers and Employees,
I am pleased to report that, despite the impact of one of the most challenging financial environments in recent history, the Corporation experienced growth with total assets increasing $68.1 million (12.4%), loans increasing $58.8 million (16.4%), deposits increasing $71.6 million (18.2%) and shareholders’ equity increasing $1.8 million (3.8%) in 2008 as compared to 2007, while continuing to control non-interest expenses.
While the Corporation was not immune from the effects of difficult economic conditions created by a contracting economy and eroding underlying real estate values, we believe the Corporation’s balance sheet and income statement reflect a continued commitment to sound management and banking principles.
Net income for the year ended December 31, 2008, was $4,419,000 or $1.28 per share, compared to $4,579,000, or $1.30 per share for 2007. Net income for the year ended December 31, 2008 decreased $160,000, or 3.5%, as compared to 2007, primarily due to an increase of $1,570,000 in the provision for loan losses, a decrease of $291,000 in non-interest income and an increase of $444,000 in non-interest expenses offset by a $1,995,000 increase in net interest income and a decrease in the provision for income taxes of $150,000.
As we plan for 2009 and forward, we realize that the Corporation will continue to face and be negatively impacted by many unparalleled economic and financial challenges, but we remain committed to our goals to increase shareholder value, offer sound banking services to our communities and provide a rewarding place of employment for our employees. You can be assured that your management and board will continue its endeavor to meet the demands that the current banking environment places on them in these unique economic times. We appreciate the continued confidence that you have placed in your management and company.
Respectfully,
Daniel W. Schutt
President & CEO
United Bancshares, Inc.
and Subsidiary
| | | |
Financial Information (unaudited) | For the Year ended Dec. 31, 2008 | | For the Year ended Dec. 31, 2007 |
(dollars in thousands, except share data) | | | |
CONDENSED STATEMENT OF INCOME | | | |
Interest income | $35,208 | | $34,849 |
Interest expense | 15,795 | | 17,431 |
Net interest income | 19,413 | | 17,418 |
Provision for loan losses | 2,195 | | 625 |
Net interest income after provision for loan losses | 17,218 | | 16,793 |
Non-interest income | 2,674 | | 2,965 |
Non-interest expenses | 14,462 | | 14,018 |
Income before income taxes | 5,430 | | 5,740 |
Provision for income taxes | 1,011 | | 1,161 |
Net income | $ 4,419 | | $ 4,579 |
| | | | |
Average common shares outstanding | 3,447,536 | | 3,527,093 |
| | | | |
PER COMMON SHARE | | | |
Net income | $1.28 | | $1.30 |
Cash dividends | $0.60 | | $0.56 |
Book value | $14.72 | | $13.99 |
Closing price | $9.31 | | $13.89 |
| | | | |
FINANCIAL RATIOS | | | |
Return on average assets | 0.74% | | 0.83% |
Return on average equity | 8.87% | | 9.69% |
Net interest margin | 3.64% | | 3.61% |
Efficiency ratio | 62.68% | | 65.70% |
Loans to deposits | 90.02% | | 91.44% |
Allowance for loan losses to loans | 0.76% | | 0.62% |
Cash dividends to net income | 46.73% | | 43.01% |
| | | | |
PERIOD END BALANCES | | | |
| | As of Dec. 31, 2008 | | As of Dec. 31, 2007 |
Assets | $616,064 | | $547,975 |
Loans (including available-for-sale) | $418,385 | | $359,560 |
Deposits | $464,792 | | $393,203 |
Shareholders' equity | $50,660 | | $48,819 |
| | | | |
Common shares outstanding | 3,441,663 | | 3,489,405 |
DIRECTORS/OFFICERS
UNITED BANCSHARES, INC.
Robert L. Benroth
David P. Roach
H. Edward Rigel
R. Steven Unverferth
James N. Reynolds - Chairman
Robert L. Dillhoff – Vice-Chairman
Daniel W. Schutt - President/CEO
Brian D. Young - CFO/Executive V.P./Treasurer
Heather M. Oatman - Secretary
DIRECTORS
THE UNION BANK CO.
Robert L. Benroth
James N. Reynolds
Robert L. Dillhoff
H. Edward Rigel
Herbert H. Huffman
David P. Roach
Kevin L. Lammon
Robert M. Schulte, Sr.
William R. Perry
R. Steven Unverferth
Daniel W. Schutt - President/CEO/Chairman
Brian D. Young - CFO/Executive V.P.
INVESTOR MATERIALS:
United Bancshares, Inc. has traded its common stock on the Nasdaq Markets Exchange under the symbol “UBOH” since March 2001. Annual and quarterly shareholder reports, regulatory filings, press releases, and articles about United Bancshares, Inc. are available in the Shareholder Information section of our website www.theubank.com or by calling 1-800-837-8111.
Locations
1300 N. Main St.
Bowling Green, OH 43402
419-353-6088
100 S. High St.
Columbus Grove, OH 45830
419-659-2141
101 Progressive Dr.
Columbus Grove, Ohio 45830
419-659-4250
114 E. 3rd St.
Delphos, OH 45833
419-692-2010
230 W. Madison St.
Gibsonburg, OH 43431
419-637-2124
110 E. North St.
Kalida, OH 45853
419-532-3366
318 S. Belmore St.
Leipsic, OH 45856
419-943-2171
1410 Bellefontaine Ave.
Lima, OH 45804
419-229-6500
3211 Elida Rd.
Lima, OH 45805
419-331-3211
701 Shawnee Rd.
Lima, OH 45805
419-228-2114
245 W. Main St.
Ottawa, OH 45875
419-523-2265
132 E. Front St.
Pemberville, OH 43450
419-287-3211
