Exhibit 99.2
United Bancshares, Inc.
Quarterly Report
September 30, 2013
Dear Shareholders, Customers, and Employees,
In the face of continued pressure on net interest income and slow economic growth in our markets, your Company reported approximately $1.12 million, or $0.32 basic earnings per share for the third quarter of 2013 and $3.56 million for the nine month period ending September 30, 2013. Your Company was able to offset those negative environmental conditions by decreasing non-interest expenses and improving asset quality. The improvements in asset quality warranted a negative provision for loan losses for the third quarter.
Your Company continued to see positive trends in numerous asset quality indicators, including the amount of substandard and doubtful loans and the amount of loans past due ninety days or on nonaccrual as a percentage of outstanding loans, when compared to December 31, 2012. These improvements not only added to profitability, but further support the team’s ongoing efforts to grow quality loan balances throughout our communities. We believe that growth in core deposits and quality loan balances is key to help offset the compressed margin environment, and as a result, your team is working hard to increase those balances going forward.
We are very grateful for the continued diligence of fellow team members and the support of our customers, both of which led to these positive results.
I am also pleased to report that after review of your Company’s earnings, capital position, and improved risk profile, your Board of Directors declared a $.05 cash dividend that will be payable to shareholders on December 16, 2013. We continue to believe that the drivers of our success are, and will continue to be, our strong corporate values of respect for our shareholders, customers, colleagues, and communities. Your support and the trust you have placed in us is greatly appreciated.
Respectfully,
Brian D. Young
President & CEO
United Bancshares, Inc.
and Subsidiary
| | | |
Financial Information (unaudited) | Nine months ended September 30, 2013 |
| Nine months ended September 30, 2012 |
(dollars in thousands, except share data) |
|
|
|
CONDENSED STATEMENT OF INCOME |
|
|
|
Interest income | $ 14,649 |
| $ 17,123 |
Interest expense | 2,454 |
| 3,783 |
Net interest income | 12,195 |
| 13,340 |
Provision for loan losses | (300) |
| 200 |
Net interest income after provision for loan losses | 12,495 |
| 13,140 |
Non-interest income | 3,318 |
| 3,112 |
Non-interest expenses | 11,270 |
| 12,197 |
Income before income taxes | 4,543 |
| 4,055 |
Provision for income taxes | 982 |
| 746 |
Net income | $ 3,561 |
| $ 3,309 |
|
|
|
|
Average common shares outstanding | 3,446,806 |
| 3,446,075 |
|
|
|
|
PER COMMON SHARE |
|
|
|
Net income | $ 1.03 |
| $ 0.96 |
Book value | $18.36 |
| $18.49 |
Closing price | $12.75 |
| $ 9.06 |
|
|
|
|
FINANCIAL RATIOS |
|
|
|
Return on average assets | 0.85% |
| 0.77% |
Return on average equity | 7.49% |
| 7.18% |
Net interest margin | 3.30% |
| 3.51% |
Efficiency ratio | 69.49% |
| 71.14% |
Loans to deposits | 65.06% |
| 71.20% |
Allowance for loan losses to loans | 1.59% |
| 2.24% |
|
|
|
|
PERIOD END BALANCES |
|
|
|
| As of September 30, 2013 |
| As of December 31, 2012 |
Assets | $559,366 |
| $572,448 |
Loans | $299,363 |
| $304,445 |
Deposits | $460,808 |
| $471,199 |
Shareholders' equity | $ 63,274 |
| $ 64,170 |
|
|
|
|
Common shares outstanding | 3,447,051 |
| 3,446,305 |
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
