Exhibit 99.2
United Bancshares, Inc.
Quarterly Report
September 30, 2009
Dear Shareholders, Customers and Employees,
The Bank is pleased with its history of sound asset quality. However, in the current economic climate, the Bank, like many other financial institutions, is experiencing an increased level of non-performing loans. As a result, we increased our allowance for loan losses $4 million during the quarter ended September 30, 2009, with approximately $3 million of this provision related to one large commercial credit. The Bank has been working with this customer for some time and we believe the additional provision is the appropriate action at this time.
As with many financial reports there can be good news and bad news. In this case the bad news is that we have felt the need to add $5.7 million to our allowance for loan losses for the nine month period ended September 30, 2009. The good news is that even with this large allocation the Corporation was still able to generate approximately $2 million in net income during this period. Additionally, the net interest margin was 3.77% and the efficiency ratio was 56.50%.
One final item that should be noted is that during these difficult economic times the Corporation's shareholders’ equity has increased $3.5 million since the beginning of 2009. We continue to proactively navigate through an increasingly more difficult credit cycle and offer our appreciation to our shareholders, customers and dedicated employees.
Respectfully,
Daniel W. Schutt
President & CEO
United Bancshares, Inc.
and Subsidiary
| | | |
Financial Information (unaudited) | Nine months ended September 30, 2009 | | Nine months ended September 30, 2008 |
(dollars in thousands, except share data) | | | |
CONDENSED STATEMENT OF INCOME | | | |
Interest income | $ 25,041 | | $ 26,533 |
Interest expense | 9,605 | | 12,039 |
Net interest income | 15,436 | | 14,494 |
Provision for loan losses | 5,725 | | 1,245 |
Net interest income after provision for loan losses | 9,711 | | 13,249 |
Non-interest income | 3,417 | | 2,620 |
Non-interest expenses | 11,086 | | 10,992 |
Income before income taxes | 2,042 | | 4,877 |
Provision for income taxes | 52 | | 1,056 |
Net income | $ 1,990 | | $ 3,821 |
| | | | |
Average common shares outstanding | 3,442,867 | | 3,449,508 |
| | | | |
PER COMMON SHARE | | | |
Net income | $0.58 | | $1.11 |
Cash dividends | $0.45 | | $0.45 |
Book value | $15.72 | | $14.48 |
Closing price | $11.20 | | $10.32 |
| | | | |
FINANCIAL RATIOS | | | |
Return on average assets | 0.43% | | 0.86% |
Return on average equity | 5.05% | | 10.27% |
Net interest margin | 3.77% | | 3.65% |
Efficiency ratio | 56.50% | | 61.60% |
Loans to deposits | 91.84% | | 89.09% |
Allowance for loan losses to loans | 1.80% | | 0.71% |
Cash dividends to net income | 77.87% | | 40.53% |
| | | | |
PERIOD END BALANCES | | | |
| | As of September 30, 2009 | | As of December 31, 2008 |
Assets | $602,032 | | $616,064 |
Loans (including available-for-sale) | $414,769 | | $418,385 |
Deposits | $451,625 | | $464,792 |
Shareholders' equity | $54,118 | | $50,660 |
| | | | |
Common shares outstanding | 3,443,766 | | 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
