Exhibit 99.2
United Bancshares, Inc.
Quarterly Report
September 30, 2010
Dear Shareholders, Customers, and Employees,
This current period of high unemployment and minimal growth has adversely affected the business climate in our market areas, and this difficult economy is continuing to negatively impact many of our customers and your company. Even in these difficult economic times, the company has continued to remain profitable and grow shareholders’ equity. The company reported net income of $2.2 million or $0.64 per share for the nine-month period ended September 30, 2010, compared to $2.0 million or $0.58 per share for the same period of 2009. We continue to provide significant amounts into our provision for possible loan losses, but at a lower level than the previous year.
After a lengthy review of various factors including the current economic conditions, the company’s earnings levels, and limited availability of capital for growth, the Board of Directors has determined that a dividend will not be declared for the fourth quarter of 2010. Because we understand the value that many shareholders place on quarterly dividends, this decision was difficult, but we believe that increasing capital at a faster pace puts your company in the best position to deal with current challenges and take advantage of possible opportunities that may present themselves.
We assure you that you will continue to receive our best efforts as we work through this difficult economic climate. Thank you for your continued support of your bank.
Respectfully,
Daniel W. Schutt
President & CEO
United Bancshares, Inc.
and Subsidiary
| | | |
Financial Information (unaudited) | Nine months ended September 30, 2010 | | Nine months ended September 30, 2009 |
(dollars in thousands, except share data) | | | |
CONDENSED STATEMENT OF INCOME | | | |
Interest income | $ 23,023 | | $ 25,041 |
Interest expense | 6,974 | | 9,605 |
Net interest income | 16,049 | | 15,436 |
Provision for loan losses | 4,500 | | 5,725 |
Net interest income after provision for loan losses | 11,549 | | 9,711 |
Non-interest income | 2,416 | | 3,417 |
Non-interest expenses | 11,619 | | 11,086 |
Income before income taxes | 2,346 | | 2,042 |
Provision for income taxes | 136 | | 52 |
Net income | $ 2,210 | | $ 1,990 |
| | | | |
Average common shares outstanding | 3,444,641 | | 3,442,867 |
| | | | |
PER COMMON SHARE | | | |
Net income | $0.64 | | $0.58 |
Cash dividends | $0.45 | | $0.45 |
Book value | $16.36 | | $15.72 |
Closing price | $9.40 | | $11.20 |
| | | | |
FINANCIAL RATIOS | | | |
Return on average assets | 0.47% | | 0.43% |
Return on average equity | 5.33% | | 5.05% |
Net interest margin | 3.85% | | 3.77% |
Efficiency ratio | 60.40% | | 56.50% |
Loans to deposits | 79.87% | | 91.84% |
Allowance for loan losses to loans | 1.92% | | 1.80% |
Cash dividends to net income | 70.15% | | 77.87% |
| | | | |
PERIOD END BALANCES | | | |
| | As of September 30, 2010 | | As of December 31, 2009 |
Assets | $619,932 | | $616,405 |
Loans | $398,124 | | $407,815 |
Deposits | $498,463 | | $469,668 |
Shareholders' equity | $56,357 | | $54,279 |
| | | | |
Common shares outstanding | 3,444,889 | | 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 - CEO/Chairman
Brian D. Young - President/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
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
