Exhibit 99.2
United Bancshares, Inc.
Quarterly Report
March 31, 2014
Dear Shareholders, Customers, and Employees,
I am pleased to inform you that, as a direct result of the ongoing efforts of the Company’s dedicated team members in implementing our Strategic Plan, your company reported positive results for the first quarter of 2014. Those positive results include net income of approximately $900,000 ($0.26 basic earnings per share), a $5.8 million increase in our loan portfolio, an increase in marginal income, and a $4.5 million increase in our market capitalization.
We continue to create internal efficiencies and enhance customer tools and resources through improved technology and streamlined workflows. Such efforts have yielded positive results in both our customers’ use of technology-based products and our overall core operational cost structure. One example of that success is mobile banking. Over the past five quarters, the Company has nearly quintupled the number of mobile banking users, reflecting the high demand for this recently-introduced product. Because of team members’ implementation of other technology advancement throughout operations, your Company was able to once again control costs associated with its core operations. We believe that effective implementation of technology will remain not only a vital tool for attracting and retaining new customers, but also a significant contributor to controlling our core operational costs going forward.
Another notable item to report is that your Company is spending more time serving and growing its current customer base and acquiring new customers. This is a result of your Company’s improved asset quality metrics, on which the team worked tirelessly over the past several years. While asset quality remains a number one priority, placing even more focus on promoting our Company’s values has yielded positive results through relationship-building. Those efforts, in turn, have generated increased loan balances for the first quarter.
In conjunction with the team’s efforts on increasing marginal income through quality loan growth and identifying technology to control costs, we expect the company’s efficiency measurements to show improvement in the future.
Most importantly, we continue to believe that a solid, established, and financially strong community bank is essential to the success of our communities; just as strong communities are critical to the success of your Company. That belief, and the desire to serve our neighbors, has led your Company and its team members to provide quality, honest financial guidance, serve on local boards, and make financial contributions that promote health, education, and economic development. I believe our strong corporate values of respect for our shareholders, customers, colleagues, and communities are the foundation for the continued success of your Company.
Thank you for your support and the trust you have placed in us.
Respectfully,
Brian D. Young
President & CEO
United Bancshares, Inc.
and Subsidiary
| | | | |
Financial Information (unaudited) | Three months ended March 31, 2014 |
| Three months ended March 31, 2013 |
|
(dollars in thousands, except share data) |
|
|
|
|
CONDENSED STATEMENT OF INCOME |
|
|
|
|
Interest income | $ 4,858 |
| $ 4,834 |
|
Interest expense | 670 |
| 816 |
|
Net interest income | 4,188 |
| 4,018 |
|
Provision for loan losses | - |
| - |
|
Net interest income after provision for loan losses | 4,188 |
| 4,018 |
|
Non-interest income | 815 |
| 1,125 |
|
Non-interest expenses | 3,946 |
| 3,766 |
|
Income before income taxes | 1,057 |
| 1,377 |
|
Provision for income taxes | 156 |
| 279 |
|
Net income | $ 901 |
| $ 1,098 |
|
|
|
|
|
|
Average common shares outstanding | 3,436,519 |
| 3,446,717 |
|
|
|
|
|
|
PER COMMON SHARE |
|
|
|
|
Net income | $ 0.26 |
| $ 0.32 |
|
Book value | $18.73 |
| $18.66 |
|
Tangible book value | $16.21 |
| $16.13 |
|
Closing price | $15.67 |
| $12.24 |
|
|
|
|
|
|
FINANCIAL RATIOS |
|
|
|
|
Return on average assets | 0.65% |
| 0.78% |
|
Return on average equity | 5.66% |
| 6.83% |
|
Net interest margin | 3.49% |
| 3.24% |
|
Efficiency ratio | 75.14% |
| 70.05% |
|
Loans to deposits | 65.43% |
| 64.09% |
|
Allowance for loan losses to loans | 1.31% |
| 1.97% |
|
|
|
|
|
|
PERIOD END BALANCES |
|
|
|
|
| As of March 31, 2014 |
| As of December 31, 2013 |
|
Assets | $554,887 |
| $556,235 |
|
Loans | $301,140 |
| $295,313 |
|
Deposits | $461,079 |
| $468,000 |
|
Shareholders' equity | $ 64,473 |
| $ 63,008 |
|
|
|
|
|
|
Common shares outstanding | 3,431,364 |
| 3,442,051 |
|
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
