Exhibit 99.2
United Bancshares, Inc.
Quarterly Report
March 31, 2012
Dear Shareholders, Customers, and Employees,
As you can note from the attached information, the first quarter of 2012 showed improvement when compared to the same period of 2011. Net income increased $237,000, or 30.9%, and non-interest income increased $314,000, primarily due to an increase in gains on the sale of loans. During the first quarter of 2012, the Company’s net income also increased because there were no additional allocations to the provision for loan losses. This was a significant improvement over the first quarter of 2011 when the Company allocated $1,275,000.
The Company’s net interest margin continues to be under pressure, and has decreased to 3.43% as of March 31, 2012 compared to 3.64% and 3.85% for the years ended December 31, 2011 and 2010, respectively. Weak loan demand also continues to be a concern as total loans decreased from $337.9 million as of December 31, 2011 to $331.2 as of March 31, 2012. This is an area that will continue to receive a great deal of attention from management and the Company’s staff.
I am also pleased to report that as of the end of the quarter, shareholders’ equity exceeded $60 million. Like always, your support is greatly appreciated. And, we will continue to work diligently to increase shareholder value because it is of utmost importance to us and the organization.
Respectfully,
Daniel W. Schutt
President & CEO
United Bancshares, Inc.
and Subsidiary
| | | |
Financial Information (unaudited) | Three months ended March 31, 2012 | | Three months ended March 31, 2011 |
(dollars in thousands, except share data) | | | |
CONDENSED STATEMENT OF INCOME | | | |
Interest income | $ 5,877 | | $ 6,983 |
Interest expense | 1,460 | | 1,890 |
Net interest income | 4,417 | | 5,093 |
Provision for loan losses | - | | 1,275 |
Net interest income after provision for loan losses | 4,417 | | 3,818 |
Non-interest income | 1,054 | | 740 |
Non-interest expenses | 4,235 | | 3,776 |
Income before income taxes | 1,236 | | 782 |
Provision for income taxes | 233 | | 16 |
Net income | $ 1,003 | | $ 766 |
| | | |
Average common shares outstanding | 3,445,962 | | 3,445,252 |
| | | |
PER COMMON SHARE | | | |
Net income | $ 0.29 | | $ 0.22 |
Book value | $17.63 | | $16.32 |
Closing price | $ 6.78 | | $ 9.19 |
| | | |
FINANCIAL RATIOS | | | |
Return on average assets | 0.69% | | 0.51% |
Return on average equity | 6.66% | | 5.51% |
Net interest margin | 3.43% | | 3.82% |
Efficiency ratio | 74.22% | | 62.06% |
Loans to deposits | 70.06% | | 77.22% |
Allowance for loan losses to loans | 2.23% | | 2.41% |
| | | |
PERIOD END BALANCES | | | |
| As of March 31, 2012 | | As of December 31, 2011 |
Assets | $583,801 | | $587,045 |
Loans | $331,247 | | $337,947 |
Deposits | $476,931 | | $480,486 |
Shareholders' equity | $ 60,750 | | $ 59,748 |
| | | |
Common shares outstanding | 3,445,993 | | 3,445,679 |
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
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
