Exhibit 99.2
United Bancshares, Inc.
Quarterly Report
December 31, 2011
Dear Shareholders, Customers, and Employees,
I will begin my remarks on a positive note by reporting that net income is up $135,000 over the previous year, a 4.8% increase. Additionally, reported net income for the fourth quarter of 2011 exceeded the previous quarter by $695,000, and the fourth quarter of 2010 by $344,000. Your management team and board of directors continue to strive to maximize earnings, but because of the difficult operating environment of the past several years this has become increasingly challenging.
The economy continues to negatively impact our operations and as we look forward to 2012, those concerns remain. Historically low interest rates and soft loan demand continue to put pressure on the net interest margin and thus overall earnings. Your company has also seen a $34.3 million decrease in loans over the past year, primarily because of reduced economic activity. We continue to have funds available to lend to qualified borrowers.
Another bright spot is that your company’s total shareholders’ equity increased $4.7 million, or 8.6% over the past year. Long-term shareholder value continues to be of utmost importance and will be considered as we move forward.
Respectfully,
Daniel W. Schutt
President & CEO
United Bancshares, Inc.
and Subsidiary
| | | |
Financial Information (unaudited) | For the Year ended Dec. 31, 2011 |
| For the Year ended Dec. 31, 2010 |
(dollars in thousands, except share data) |
|
|
|
CONDENSED STATEMENT OF INCOME |
|
|
|
Interest income | $ 26,461 |
| $ 30,264 |
Interest expense | 7,326 |
| 8,959 |
Net interest income | 19,135 |
| 21,305 |
Provision for loan losses | 4,375 |
| 6,550 |
Net interest income after provision for loan losses | 14,760 |
| 14,755 |
Non-interest income | 3,831 |
| 3,718 |
Non-interest expenses | 15,546 |
| 15,522 |
Income before income taxes | 3,045 |
| 2,951 |
Provision for income taxes | 102 |
| 143 |
Net income | $ 2,943 |
| $ 2,808 |
|
|
|
|
Average common shares outstanding | 3,445,469 |
| 3,444,703 |
|
|
|
|
PER COMMON SHARE |
|
|
|
Net income | $0.85 |
| $0.82 |
Book value | $17.34 |
| $15.97 |
Closing price | $6.87 |
| $9.50 |
|
|
|
|
FINANCIAL RATIOS |
|
|
|
Return on average assets | 0.50% |
| 0.45% |
Return on average equity | 5.12% |
| 5.07% |
Net interest margin | 3.64% |
| 3.85% |
Efficiency ratio | 64.88% |
| 59.59% |
Loans to deposits | 70.91% |
| 78.56% |
Allowance for loan losses to loans | 2.51% |
| 2.09% |
|
|
|
|
PERIOD END BALANCES |
|
|
|
| As of December 31, 2011 |
| As of December 31, 2010 |
Assets | $587,045 |
| $612,617 |
Loans | $340,700 |
| $383,907 |
Deposits | $480,486 |
| $488,651 |
Shareholders' equity | $59,748 |
| $55,005 |
|
|
|
|
Common shares outstanding | 3,445,679 |
| 3,444,889 |
UNITED BANCSHARES, INC.
DIRECTORS
Robert L. Benroth
David P. Roach
H. Edward Rigel
R. Steven Unverferth
James N. Reynolds - Chairman
Robert L. Dillhoff - Vice-Chairman
Daniel W. Schutt
OFFICERS
Daniel W. Schutt - President/CEO
Brian D. Young - CFO/Executive V.P./Treasurer
Heather M. Oatman - Secretary
THE UNION BANK COMPANY
DIRECTORS
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, OH 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
