Exhibit 99.2
United Bancshares, Inc.
Quarterly Report
March 31, 2016
Shareholders, Clients and Team Members:
I am pleased to report that your Company is off to a great start in 2016. In addition to reporting pre-tax income for the first quarter of approximately $1.7 million, an 18.3% increase over the first quarter of 2015, the Company reports that the Board of Directors has declared a $0.11 per common share dividend payable June 15, 2016 to shareholders of record at the close of business on May 31, 2016.
During the first quarter of 2016, we continued the execution of our strategic initiatives to further improve the value of your investment including:
·
To increase our customer base and deepen relationships with existing clients.The Bank hired three experienced Commercial Relationship Officers, two at our Delaware County office and one in our Lima, Ohio market.
·
Share Repurchase Program. The Company repurchased 12,551 shares at an average price of $16.74 per share.
·
The redesign and added functionality to our electronic footprint. A cross-functional team has identified opportunities for enhancements that will better serve and grow our client relationships. The team has researched the costs, risks, benefits and resources needed, and based on that analysis, we have selected the projects that we believe will produce the most positive impact with an appropriate return on investment. The first completed enhancement was made to the Bank’s mobile banking application.
·
Use of Market Data and Trends.Team members have begun refining the usage of market data and trends to increase our market share and make more effective and efficient decisions.
·
Team Member Wellness. Participation in wellness programs continues to increase among Company team members.
·
Dividends. After the review of various factors, including current economic conditions, the Company’s earnings levels, capital sources available and capital available for growth, the Board of Directors declared the aforementioned dividend.
The continued success of your Company is the undeniable result of the ongoing efforts of the Company’s dedicated team members and Board of Directors in implementing our Strategic Plan. Their efforts and our strong corporate values of respect for and accountability to our shareholders, clients, colleagues, and communities are the foundation for the continued success of your Company.
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) | Three months ended March 31, 2016 |
| Three months ended March 31, 2015 |
|
(dollars in thousands, except per share data) |
|
|
|
|
CONDENSED STATEMENT OF INCOME |
|
|
|
|
Interest income | $ 5,245 |
| $ 5,711 |
|
Interest expense | 514 |
| 555 |
|
Net interest income | 4,731 |
| 5,156 |
|
Provision for loan and lease losses | (400) |
| 100 |
|
Net interest income after provision for loan and lease losses | 5,131 |
| 5,056 |
|
Non-interest income | 1,119 |
| 1,004 |
|
Non-interest expenses | 4,556 |
| 4,628 |
|
Income before income taxes | 1,694 |
| 1,432 |
|
Provision for income taxes | 386 |
| 310 |
|
Net income | $ 1,308 |
| $ 1,122 |
|
|
|
|
|
|
Average common shares outstanding | 3,301,206 |
| 3,366,251 |
|
|
|
|
|
|
PER COMMON SHARE |
|
|
|
|
Net income | $ 0.40 |
| $ 0.33 |
|
Book value | $22.34 |
| $20.62 |
|
Tangible book value | $19.02 |
| $17.33 |
|
Closing price | $18.60 |
| $15.18 |
|
|
|
|
|
|
FINANCIAL RATIOS |
|
|
|
|
Return on average assets | 0.86% |
| 0.69% |
|
Return on average equity | 7.20% |
| 6.64% |
|
Net interest margin | 3.53% |
| 3.58% |
|
Efficiency ratio | 75.82% |
| 67.59% |
|
Loans to deposits | 68.35% |
| 64.47% |
|
Allowance for loan and lease losses to loans, excluding |
|
|
|
|
loans marked to market in the acquisition of OSB | 1.13% | | 1.16%
|
|
PERIOD END BALANCES |
|
|
|
|
| As of March 31, 2016 |
| As of March 31, 2015 |
|
Assets | $616,676 |
| $638,148 |
|
Loans and leases, gross | $358,895 |
| $356,316 |
|
Deposits | $525,701 |
| $547,244 |
|
Shareholders' equity | $ 73,660 |
| $ 69,350 |
|
|
|
|
|
|
Common shares outstanding | 3,297,095 |
| 3,363,138 |
|
UNITED BANCSHARES, INC.
DIRECTORS
Robert L. Benroth
Daniel W. Schutt – Vice Chairman
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
Daniel J. Lucke – Interim Chief Financial Officer
THE UNION BANK COMPANY
DIRECTORS
Robert L. Benroth
H.Edward Rigel
Anthony M.V. Eramo
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
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
