Exhibit 99.2
United Bancshares, Inc.
Quarterly Report
June 30, 2012
Dear Shareholders, Customers, and Employees,
As you can see by the figures being presented for the first six months of the year, net income of the company improved as compared to the same period of the prior year. The company reported an increase of $452,000 (26%) in net income as compared to the same period of 2011. The major factor for the increase in net income was the result of the company not making an allocation to the provision for loan loss for 2012 as compared to $2,575,000 for the same period of 2011. We are pleased that it has not been necessary to allocate additional funds to the provision during 2012. That being said, we continue to experience pressure on our margin, as the net interest margin for the six-month period ended June 30, 2012 has declined to 3.45% from 3.73% for the same period of 2011.
Non-interest income has remained fairly steady compared to the same period in 2011. However, non-interest expenses are on the rise compared to the previous period. Management will continue to closely monitor each of these items.
As you can also see, shareholder equity has increased to just under $62 million. Shareholder value, as always, remains important and will continue to receive our best efforts.
Respectfully,
Daniel W. Schutt
President & CEO
United Bancshares, Inc.
and Subsidiary
| | | |
Financial Information (unaudited) | Six months ended June 30, 2012 |
| Six months ended June 30, 2011 |
(dollars in thousands, except share data) |
|
|
|
CONDENSED STATEMENT OF INCOME |
|
|
|
Interest income | $ 11,558 |
| $ 13,837 |
Interest expense | 2,720 |
| 3,890 |
Net interest income | 8,838 |
| 9,947 |
Provision for loan losses | - |
| 2,575 |
Net interest income after provision for loan losses | 8,838 |
| 7,372 |
Non-interest income | 2,157 |
| 2,200 |
Non-interest expenses | 8,208 |
| 7,600 |
Income before income taxes | 2,787 |
| 1,972 |
Provision for income taxes | 582 |
| 219 |
Net income | $ 2,205 |
| $ 1,753 |
|
|
|
|
Average common shares outstanding | 3,445,977 |
| 3,445,265 |
|
|
|
|
PER COMMON SHARE |
|
|
|
Net income | $ 0.64 |
| $ 0.51 |
Book value | $17.97 |
| $16.71 |
Closing price | $ 8.98 |
| $ 9.15 |
|
|
|
|
FINANCIAL RATIOS |
|
|
|
Return on average assets | 0.76% |
| 0.58% |
Return on average equity | 7.26% |
| 6.23% |
Net interest margin | 3.45% |
| 3.73% |
Efficiency ratio | 71.61% |
| 60.07% |
Loans to deposits | 70.57% |
| 75.04% |
Allowance for loan losses to loans | 2.19% |
| 2.48% |
|
|
|
|
PERIOD END BALANCES |
|
|
|
| As of June 30, 2012 |
| As of December 31, 2011 |
Assets | $565,013 |
| $587,045 |
Loans | $321,828 |
| $337,947 |
Deposits | $458,846 |
| $480,486 |
Shareholders' equity | $ 61,919 |
| $ 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
