Exhibit 99.2
United Bancshares, Inc.
Quarterly Report
December 31, 2014
Dear Shareholders, Customers, and Fellow Team Employees,
I am proud to report that your Company had another prosperous year in 2014. In addition to reporting net income of approximately $4.3 million ($1.27 basic earnings per share), your Company successfully completed the previously-announced acquisition of The Ohio State Bank. This success is a direct result of the passion, competency and hard work of my fellow team members and the ongoing support of our Board of Directors. Their efforts enabled your Company to remain profitable in the fourth quarter despite approximately $549,000 in acquisition-related costs. The acquisition not only allowed your Company to grow, but it also provides the Company an opportunity to expand into Marion, Delaware and surrounding counties.
Our excitement is not due just to the opportunities that came with the added branch locations, but more importantly the addition of new team members who showed incredible resilience through the changes that came with joining the Union Bank family. Despite the ever-increasing speed of change in our industry, the entire team’s commitment to our core values allowed us to continue making decisions for the long-term success of your Company.
I am also pleased to report that after review of your Company’s earnings, capital position, and risk profile, your Board of Directors declared a $.09 per share cash dividend that will be payable to shareholders on March 16, 2015. This cash dividend represents an 80% increase over the quarterly dividend paid in the fourth quarter of 2013.
Although uncertainty still remains in our markets, we continue to believe the driver of our success is, and will continue to be, our strong corporate values of respect for our shareholders, customers, colleagues, and communities. We greatly appreciate your continued support and the trust you have placed in us.
Respectfully,
Brian D. Young
President & CEO
United Bancshares, Inc.
and Subsidiary
| | | | |
Financial Information (unaudited) | For the Year ended December 31, 2014 |
| For the Year ended December 31, 2013 |
|
(dollars in thousands, except share data) |
|
|
|
|
CONDENSED STATEMENT OF INCOME |
|
|
|
|
Interest income | $ 19,620 |
| $ 19,854 |
|
Interest expense | 2,668 |
| 3,250 |
|
Net interest income | 16,952 |
| 16,604 |
|
Provision for loan losses | (430) |
| (833) |
|
Net interest income after provision for loan losses | 17,382 |
| 17,437 |
|
Non-interest income | 4,387 |
| 4,468 |
|
Non-interest expenses | 16,375 |
| 16,024 |
|
Income before income taxes | 5,394 |
| 5,881 |
|
Provision for income taxes | 1,083 |
| 1,240 |
|
Net income | $ 4,311 |
| $ 4,641 |
|
|
|
|
|
|
Average common shares outstanding | 3,406,194 |
| 3,446,662 |
|
|
|
|
|
|
PER COMMON SHARE |
|
|
|
|
Net income | $ 1.27 |
| $ 1.35 |
|
Book value | $20.12 |
| $18.31 |
|
Tangible book value | $16.45 |
| $15.78 |
|
Closing price | $14.45 |
| $14.31 |
|
|
|
|
|
|
FINANCIAL RATIOS |
|
|
|
|
Return on average assets | 0.73% |
| 0.83% |
|
Return on average equity | 6.65% |
| 7.33% |
|
Net interest margin | 3.29% |
| 3.38% |
|
Efficiency ratio | 73.73% |
| 72.74% |
|
Loans to deposits | 63.87% |
| 63.19% |
|
Allowance for loan losses to loans | 1.06% |
| 1.36% |
|
|
|
|
|
|
PERIOD END BALANCES |
|
|
|
|
| As of December 31, 2014 |
| As of December 31, 2013 |
|
Assets | $650,200 |
| $556,235 |
|
Loans, gross | $360,937 |
| $295,313 |
|
Deposits | $565,445 |
| $468,000 |
|
Shareholders' equity | $ 67,772 |
| $ 63,008 |
|
|
|
|
|
|
Common shares outstanding | 3,367,735 |
| 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
30 Coal Bend
Delaware, OH 43015
740-549-3400
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
111 S. Main St.
Marion, OH 43302
740-387-2265
220 Richland Rd.
Marion, OH 43302
740-386-2171
245 W. Main St.
Ottawa, OH 45875
419-523-2265
132 E. Front St.
Pemberville, OH 43450
419-287-3211
