Exhibit 99.2
United Bancshares, Inc.
Quarterly Report
March 31, 2009
Dear Shareholders, Customers and Employees,
Your Company reported a 51% increase in earnings for the first quarter of 2009 compared to the same period in 2008. Income for the first three months of this year was $1,432,000 ($0.42 per share) which compares favorably with the first quarter of 2008 when earnings totaled $945,000 ($0.27 per share). This income level resulted in the Company reporting a return on equity of 11.06% for the first quarter of 2009 as compared to 7.66% for 2008.
For the first quarter of 2009, the Company was able to increase net interest and non-interest income while controlling non-interest expenses. The Company’s increase in earning assets and improvement in net interest margin resulted in increased net interest income. The increase in non-interest income was a result of residential mortgage activity, which continues to be impacted by the interest rate environment.
These are difficult times in the banking industry, but we assure you that the management of your Company has and will continue to work to enhance shareholder value. We appreciate the trust that you have placed in us.
Respectfully,
Daniel W. Schutt
President & CEO
United Bancshares, Inc.
and Subsidiary
| | | |
Financial Information (unaudited) | Three months ended March 31, 2009 | | Three months ended March 31, 2008 |
(dollars in thousands, except share data) | | | |
CONDENSED STATEMENT OF INCOME | | | |
Interest income | $ 8,399 | | $ 8,665 |
Interest expense | 3,359 | | 4,166 |
Net interest income | 5,040 | | 4,499 |
Provision for loan losses | 600 | | 275 |
Net interest income after provision for loan losses | 4,440 | | 4,224 |
Non-interest income | 983 | | 557 |
Non-interest expenses | 3,575 | | 3,633 |
Income before income taxes | 1,848 | | 1,148 |
Provision for income taxes | 416 | | 203 |
Net income | $1,432 | | $ 945 |
| | | | |
Average common shares outstanding | 3,442,419 | | 3,467,222 |
| | | | |
PER COMMON SHARE | | | |
Net income | $0.42 | | $0.27 |
Cash dividends | $0.15 | | $0.15 |
Book value | $15.36 | | $14.49 |
Closing price | $9.00 | | $14.00 |
| | | | |
FINANCIAL RATIOS | | | |
Return on average assets | 0.93% | | 0.68% |
Return on average equity | 11.06% | | 7.66% |
Net interest margin | 3.66% | | 3.62% |
Efficiency ratio | 56.96% | | 68.67% |
Loans to deposits | 89.41% | | 93.57% |
Allowance for loan losses to loans | 0.87% | | 0.62% |
Cash dividends to net income | 36.07% | | 54.63% |
| | | | |
PERIOD END BALANCES | | | |
| | As of March 31, 2009 | | As of December 31, 2008 |
Assets | $622,895 | | $616,064 |
Loans (including available-for-sale) | $421,043 | | $418,385 |
Deposits | $470,903 | | $464,792 |
Shareholders' equity | $52,891 | | $50,660 |
| | | | |
Common shares outstanding | 3,442,779 | | 3,441,663 |
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
