Exhibit 99.2
United Bancshares, Inc.
Quarterly Report
March 31, 2010
Dear Shareholders, Customers and Employees,
As anticipated, 2010 has continued to offer challenges, but your bank was able to generate $1,024,000 or $0.30 per share in net income for the first quarter of 2010 which supported the Board of Directors decision to pay dividends at the same level as the previous quarter. The addition to the provision for loan losses has moderated when compared to the previous three quarters. Additionally, the current economic environment has increased several non-interest expenses, primarily foreclosure, other real estate owned, and asset management expenses.
Total assets increased $35,757,000 (5.80%) and total deposits increased $39,634,000 (8.44%) over the previous quarter end, which was mainly attributable to the completion of the Findlay branch acquisition in late March 2010. The Company was pleased to report an improvement in net interest margin which was 3.83% for the quarter and exceeded the first quarter of 2009 and the previous year, which were 3.76% and 3.66%, respectively. The efficiency ratio remained acceptable at 63.20% for the quarter, but was negatively impacted by the decrease in mortgage loan fee income and the increase in non-interest expenses.
As always, we appreciate your continued support as we make every effort to enhance the value of your institution.
Respectfully,
Daniel W. Schutt
President & CEO
United Bancshares, Inc.
and Subsidiary
| | | |
Financial Information (unaudited) | Three months ended March 31, 2010 | | Three months ended March 31, 2009 |
(dollars in thousands, except share data) | | | |
CONDENSED STATEMENT OF INCOME | | | |
Interest income | $ 7,712 | | $ 8,399 |
Interest expense | 2,489 | | 3,359 |
Net interest income | 5,223 | | 5,040 |
Provision for loan losses | 800 | | 600 |
Net interest income after provision for loan losses | 4,423 | | 4,440 |
Non-interest income | 730 | | 983 |
Non-interest expenses | 3,923 | | 3,575 |
Income before income taxes | 1,230 | | 1,848 |
Provision for income taxes | 206 | | 416 |
Net income | $ 1,024 | | $1,432 |
| | | | |
Average common shares outstanding | 3,444,514 | | 3,442,419 |
| | | | |
PER COMMON SHARE | | | |
Net income | $0.30 | | $0.42 |
Cash dividends | $0.15 | | $0.15 |
Book value | $16.02 | | $15.36 |
Closing price | $10.60 | | $9.00 |
| | | | |
FINANCIAL RATIOS | | | |
Return on average assets | 0.66% | | 0.93% |
Return on average equity | 7.48% | | 11.06% |
Net interest margin | 3.83% | | 3.66% |
Efficiency ratio | 63.20% | | 56.96% |
Loans to deposits | 78.85% | | 89.41% |
Allowance for loan losses to loans | 1.34% | | 0.87% |
Cash dividends to net income | 50.48% | | 36.07% |
| | | | |
PERIOD END BALANCES | | | |
| | As of March 31, 2010 | | As of Dec. 31, 2009 |
Assets | $652,163 | | $616,405 |
Loans | $401,605 | | $407,815 |
Deposits | $509,302 | | $469,668 |
Shareholders' equity | $55,175 | | $54,279 |
| | | | |
Common shares outstanding | 3,444,549 | | 3,443,766 |
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 - Chairman/CEO
Brian D. Young - President/CFO
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
1500 Bright Rd.
Findlay, OH 45840
419-424-1400
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
