Exhibit 99.2
United Bancshares, Inc.
Quarterly Report
December 31, 2012
Dear Shareholders, Customers, and Employees,
As I begin my first full year as President and CEO of United Bancshares, Inc., I am grateful for the privilege to work beside a dedicated Board of Directors and a talented staff of over 150 remarkable individuals. Thanks to their efforts, I am pleased to report that your Company had a successful 2012.
The Company’s success was evident not only in the financial statements of your Company, but also in the positive impact your Company and its staff members have had on our communities. Whether your Company made a direct financial contribution or supported one of our many team members who made the personal choice to invest both time and talents to make our communities and our world a better place, know that each of those successes is an important part of who we are as a community bank.
A summary of the financial performance is included in this correspondence. Please note that despite the current low interest rate environment, which was the primary reason for the Company’s decrease in net interest income, the Company reported net income for the year ending December 31, 2012 of $4.5 million ($1.30 per share) compared to $2.9 million ($0.85 per share) for the same period in 2011.
As we progress through 2013, we realize that we will continue to face the challenge of balancing compliance and regulatory requirements and a sputtering economic recovery with providing quality, competitive products and services for our customers throughout our communities. Regardless of those challenges, 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, and in many cases several generations of your family, have placed in the Company for over 100 years and we look forward to serving you for many years to come.
Respectfully,
Brian D. Young
President & CEO
United Bancshares, Inc.
and Subsidiary
| | | |
Financial Information (unaudited) | For the Year ended Dec. 31, 2012 |
| For the Year ended Dec. 31, 2011 |
(dollars in thousands, except share data) |
|
|
|
CONDENSED STATEMENT OF INCOME |
|
|
|
Interest income | $ 22,592 |
| $ 26,461 |
Interest expense | 4,676 |
| 7,326 |
Net interest income | 17,916 |
| 19,135 |
Provision for loan losses | 200 |
| 4,375 |
Net interest income after provision for loan losses | 17,716 |
| 14,760 |
Non-interest income | 4,353 |
| 3,831 |
Non-interest expenses | 16,513 |
| 15,546 |
Income before income taxes | 5,556 |
| 3,045 |
Provision for income taxes | 1,071 |
| 102 |
Net income | $ 4,485 |
| $ 2,943 |
|
|
|
|
Average common shares outstanding | 3,446,133 |
| 3,445,469 |
|
|
|
|
PER COMMON SHARE |
|
|
|
Net income | $ 1.30 |
| $ 0.85 |
Book value | $18.62 |
| $17.34 |
Closing price | $ 9.75 |
| $ 6.87 |
|
|
|
|
FINANCIAL RATIOS |
|
|
|
Return on average assets | 0.79% |
| 0.50% |
Return on average equity | 7.23% |
| 5.12% |
Net interest margin | 3.55% |
| 3.64% |
Efficiency ratio | 71.21% |
| 64.88% |
Loans to deposits | 65.24% |
| 70.91% |
Allowance for loan losses to loans | 2.27% |
| 2.51% |
|
|
|
|
PERIOD END BALANCES |
|
|
|
| As of December 31, 2012 |
| As of December 31, 2011 |
Assets | $572,448 |
| $587,045 |
Loans | $304,445 |
| $337,947 |
Deposits | $471,199 |
| $480,486 |
Shareholders' equity | $ 64,170 |
| $ 59,748 |
|
|
|
|
Common shares outstanding | 3,446,305 |
| 3,445,679 |
UNITED BANCSHARES, INC.
DIRECTORS
Robert L. Benroth
Daniel W. Schutt
James N. Reynolds - Chairman
R. Steven Unverferth
H. Edward Rigel
Brian D. Young
David P. Roach
OFFICERS
Brian D. Young - President/CEO
Heather M. Oatman - Secretary
Diana L. Engelhardt - Chief Financial Officer
THE UNION BANK COMPANY
DIRECTORS
Robert L. Benroth
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
H. Edward Rigel
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
