Exhibit 99.2
United Bancshares, Inc.
Quarterly Report
September 30, 2015
Shareholders, Clients, and Team Members:
In August, I began my third year as CEO of United Bancshares, Inc., I continue to be thankful for the privilege to work beside a dedicated Board of Directors and a talented and dedicated staff of over 165 remarkable individuals. Thanks to their efforts, I am pleased to report that your Company is having another successful year.
That success includes year to date reported net income ($4.5 million), return on equity (8.74%), return on assets (.95%), net interest margin (3.68%), loans to deposits (69.4%), and efficiency ratio (63.22%). Each were improved over the same period in 2014. A significant portion of that success was due to team members’ efforts regarding the successful acquisition, integration and operations of the Marion and Lewis Center branches. This acquisition has generated attractive returns and we feel strongly it will continue to be an effective use of capital for our shareholders.
Additionally, the Board of Directors declared a $0.09 per share dividend, payable on December 15th to shareholders of record as of November 30th, 2015. This decision was reached after their review of your Company’s capital position, risk profile, earnings levels, and capital sources available for growth. We understand how important dividends and increased stock value are for many of our shareholders; both of these investment objectives have and will remain important parts of the Company’s consideration as the board determines capital allocation.
I remain optimistic about the long-term future of your Company. My belief comes not from the ability to forecast when rates will increase or whether the economy will continue to expand, but is firmly placed on the commitment and abilities of my fellow team members. The foundation for continued success for our Company continues to be derived from their outstanding abilities to identify the best growth opportunities, balance risk with return, adapt to rapidly changing technologies and threats, and our shared cultural values of respect and accountability toward our customers, shareholders, colleagues, and communities.
As always, 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) | Nine months ended September 30, 2015 |
| Nine months ended September 30, 2014 |
|
(dollars in thousands, except per share data) |
|
|
|
|
CONDENSED STATEMENT OF INCOME |
|
|
|
|
Interest income | $ 17,136 |
| $ 14,471 |
|
Interest expense | 1,578 |
| 2,011 |
|
Net interest income | 15,558 |
| 12,460 |
|
Provision for loan losses | 100 |
| 115 |
|
Net interest income after provision for loan losses | 15,458 |
| 12,345 |
|
Non-interest income | 3,323 |
| 3,141 |
|
Non-interest expenses | 13,257 |
| 11,426 |
|
Income before income taxes | 5,524 |
| 4,060 |
|
Provision for income taxes | 996 |
| 796 |
|
Net income | $ 4,528 |
| $ 3,264 |
|
|
|
|
|
|
Average common shares outstanding | 3,346,161 |
| 3,419,154 |
|
|
|
|
|
|
PER COMMON SHARE |
|
|
|
|
Net income | $ 1.35 |
| $ 0.95 |
|
Book value | $21.46 |
| $19.67 |
|
Tangible book value | $18.15 |
| $17.10 |
|
Closing price | $15.69 |
| $14.98 |
|
|
|
|
|
|
FINANCIAL RATIOS |
|
|
|
|
Return on average assets | 0.95% |
| 0.75% |
|
Return on average equity | 8.74% |
| 6.75% |
|
Net interest margin | 3.68% |
| 3.31% |
|
Efficiency ratio | 63.22% |
| 70.20% |
|
Loans to deposits | 69.40% |
| 60.21% |
|
Allowance for loan losses to loans, excluding |
|
|
|
|
loans marked to market in the acquisition of OSB | 1.14% | | 1.32%
|
|
PERIOD END BALANCES |
|
|
|
|
| As of September 30, 2015 |
| As of December 31, 2014 |
|
Assets | $616,092 |
| $650,200 |
|
Loans, gross | $359,279 |
| $360,937 |
|
Deposits | $512,554 |
| $565,445 |
|
Shareholders' equity | $ 71,445 |
| $ 67,772 |
|
|
|
|
|
|
Common shares outstanding | 3,329,129 |
| 3,367,735 |
|
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
Anthony M.V. Eramo - 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
