Exhibit 99.2
United Bancshares, Inc.
Quarterly Report
March 31, 2015
Shareholders, Customers, and Fellow Team Members:
I am proud 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 2015. Those positive results include income before taxes of approximately $1.43 million as compared to $1.06 million for the same period in 2014, a 35% increase. The team accomplished that result in part by realizing the benefits from the three branches acquired in the fourth quarter of 2014 and by minimizing additional costs. The results reflect a 23% increase in both net interest income and non-interest income, and only a 6% realized increase in employee and benefit costs as compared to the same three-month period in 2014.
I am also pleased to report that after review of your Company’s earnings, capital position, risk profile and strategic plan, your Board of Directors declared a $.09 per share cash dividend, payable to shareholders on June 16, 2015. This cash dividend represents 27% of the first quarter earnings.
We continue to make investments in technology to create internal efficiencies, preventing external fraud and enhance customer tools and resources. Such efforts have yielded positive results in both our customers’ use of technology-based products and our overall core operational cost structure. We believe that effectively implementing technology will remain not only vital for attracting and retaining new customers, preventing external fraud and controlling our core operations costs, but also for providing the best possible support for our growing business footprint.
I 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. These strong corporate values of respect for our shareholders, customers, colleagues, and communities lay 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, 2015 |
| Three months ended March 31, 2014 |
|
(dollars in thousands, except per share data) |
|
|
|
|
CONDENSED STATEMENT OF INCOME |
|
|
|
|
Interest income | $ 5,711 |
| $ 4,858 |
|
Interest expense | 555 |
| 670 |
|
Net interest income | 5,156 |
| 4,188 |
|
Provision for loan losses | 100 |
| - |
|
Net interest income after provision for loan losses | 5,056 |
| 4,188 |
|
Non-interest income | 1,004 |
| 815 |
|
Non-interest expenses | 4,628 |
| 3,946 |
|
Income before income taxes | 1,432 |
| 1,057 |
|
Provision for income taxes | 310 |
| 156 |
|
Net income | $ 1,122 |
| $ 901 |
|
|
|
|
|
|
Average common shares outstanding | 3,366,251 |
| 3,436,519 |
|
|
|
|
|
|
PER COMMON SHARE |
|
|
|
|
Net income | $ 0.33 |
| $ 0.26 |
|
Book value | $20.62 |
| $18.73 |
|
Tangible book value | $17.33 |
| $16.21 |
|
Closing price | $15.18 |
| $15.67 |
|
|
|
|
|
|
FINANCIAL RATIOS |
|
|
|
|
Return on average assets | 0.69% |
| 0.65% |
|
Return on average equity | 6.64% |
| 5.66% |
|
Net interest margin | 3.58% |
| 3.49% |
|
Efficiency ratio | 67.59% |
| 75.14% |
|
Loans to deposits | 64.47% |
| 65.43% |
|
Allowance for loan losses to loans, excluding |
|
|
|
|
loans marked to market in the acquisition of OSB | 1.16% |
| 1.31%
|
|
PERIOD END BALANCES |
|
|
|
|
| As of March 31, 2015 |
| As of March 31, 2014 |
|
Assets | $638,148 |
| $554,887 |
|
Loans, gross | $356,316 |
| $301,140 |
|
Deposits | $547,244 |
| $461,079 |
|
Shareholders' equity | $ 69,350 |
| $ 64,473 |
|
|
|
|
|
|
Common shares outstanding | 3,363,138 |
| 3,431,364 |
|
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
