Exhibit 99.2
United Bancshares, Inc.
Quarterly Report
September 30, 2012
Dear Shareholders, Customers, and Employees,
After a lengthy review of the current economic conditions, the company’s earnings levels, and capital sources available for growth, I am pleased to report that the Board of Directors declared a $0.05 per share dividend, payable on November 8, 2012 to shareholders of record as of October 31, 2012. We understand how important dividends and increased stock value are for many of our shareholders; both of these investment objectives have been and will continue to remain an important part of the Company’s consideration as the board determines capital allocation.
I am pleased to report that even in these less than desirable economic times, the company has remained profitable and grown shareholders’ equity. The company reported net income of $3.3 million ($0.96 per share) for the nine-month period ended September 30, 2012 and $63.7 million ($18.49 per share) of shareholders’ equity as of September 30, 2012, compared to $2.0 million ($0.58 per share) of net income for the same period of 2011 and $58.5 million ($16.99 per share) of shareholders’ equity as of September 30, 2011.
During the third quarter, the company observed progress in several areas, including stabilization of our net interest margin and provision for loan losses. However, the company continues to face several challenges, including: pressure on our margins as a result of the low interest rate environment, regulatory and compliance changes resulting from the Dodd-Frank Act, and slow economic growth throughout our markets.
Regardless of the challenges that the company is facing, we continue to believe that the drivers of our success are, and will continue to be, our strong corporate values and respect for you, our shareholders, customers and employees. We appreciate the trust that you have placed in the company, and we will continue to strive each day to retain that trust.
Respectfully,
Brian D. Young
President & CEO
United Bancshares, Inc.
and Subsidiary
| | | |
Financial Information (unaudited) | Nine months ended September 30, 2012 |
| Nine months ended September 30, 2011 |
(dollars in thousands, except share data) |
|
|
|
CONDENSED STATEMENT OF INCOME |
|
|
|
Interest income | $ 17,123 |
| $ 20,288 |
Interest expense | 3,783 |
| 5,672 |
Net interest income | 13,340 |
| 14,616 |
Provision for loan losses | 200 |
| 3,975 |
Net interest income after provision for loan losses | 13,140 |
| 10,641 |
Non-interest income | 3,112 |
| 3,008 |
Non-interest expenses | 12,197 |
| 11,593 |
Income before income taxes | 4,055 |
| 2,056 |
Provision for income taxes | 746 |
| 55 |
Net income | $ 3,309 |
| $ 2,001 |
|
|
|
|
Average common shares outstanding | 3,446,075 |
| 3,445,399 |
|
|
|
|
PER COMMON SHARE |
|
|
|
Net income | $ 0.96 |
| $ 0.58 |
Book value | $18.49 |
| $16.99 |
Closing price | $ 9.06 |
| $ 8.61 |
|
|
|
|
FINANCIAL RATIOS |
|
|
|
Return on average assets | 0.77% |
| 0.45% |
Return on average equity | 7.18% |
| 4.69% |
Net interest margin | 3.51% |
| 3.69% |
Efficiency ratio | 71.14% |
| 63.08% |
Loans to deposits | 71.20% |
| 72.63% |
Allowance for loan losses to loans | 2.24% |
| 2.42% |
|
|
|
|
PERIOD END BALANCES |
|
|
|
| As of September 30, 2012 |
| As of December 31, 2011 |
Assets | $555,248 |
| $587,045 |
Loans | $321,528 |
| $337,947 |
Deposits | $456,027 |
| $480,486 |
Shareholders' equity | $ 63,709 |
| $ 59,748 |
|
|
|
|
Common shares outstanding | 3,446,305 |
| 3,445,679 |
UNITED BANCSHARES, INC.
DIRECTORS
Robert L. Benroth
David P. Roach
Robert L. Dillhoff - Vice-Chairman
Daniel W. Schutt
James N. Reynolds - Chairman
R. Steven Unverferth
H. Edward Rigel
Brian D. Young
OFFICERS
Brian D. Young - President/CEO
Heather M. Oatman - Secretary
Diana L. Engelhardt - Chief Financial Officer
THE UNION BANK COMPANY
DIRECTORS
Robert L. Benroth
H. Edward Rigel
Robert L. Dillhoff
David P. Roach
Herbert H. Huffman
Robert M. Schulte, Sr.
Kevin L. Lammon
Daniel W. Schutt
William R. Perry
R. Steven Unverferth
James N. Reynolds
Brian D. Young - Chairman/President/CEO
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
