Exhibit 99.2
United Bancshares, Inc.
Quarterly Report
December 31, 2016
Shareholders, Customers and Team Members:
I am pleased to report that your Company had another successful year in 2016. In addition to reporting income before taxes of approximately $7.3 million, return on average equity of 7.94% and return on average assets of 0.90%, the Company also reported growth of approximately 6.2% and 5.0% for loans and non-interest bearing deposits, respectively.
The strategic decisions previously communicated to reposition our balance sheet after the 2014 acquisition through the systematic run off of volatile deposits and loan relationships were essentially completed during the fourth quarter of 2016. During this time of transition, the bank has built a robust pipeline of opportunities which positively impacted our balance sheet in the fourth quarter of 2016. Your management team remains committed to a methodical and consistent growth strategy through building relationships in our communities and reviewing other opportunities as they present themselves. We continue to believe that a measured balance sheet growth strategy reduces overall risk and drives long-term value for our shareholders.
I am also pleased to report that our shares closed the year 17% higher than in 2015 and that the Board of Directors declared a $0.12 per share dividend (approximately a 9% increase from the prior quarter), payable on March 15th to shareholders of record as of February 28, 2017. This decision was reached after their review of your Company’s capital position, risk profile, earnings levels, and available capital sources. We understand how important dividends and increased stock value are for our shareholders; both of these investment objectives have and will remain important parts of the Company’s consideration as the board determines capital allocation.
As we look forward, our journey will undoubtedly be presented with numerous obstacles and challenges. Regardless of the environment, we continue to believe that the drivers of our success are, and will continue to be, our strong corporate values of respect for and accountability to our shareholders, customers, 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) | For the Year ended December 31, 2016 | For the Year ended December 31, 2015 | ||
(dollars in thousands, except per share data) | ||||
CONDENSED STATEMENT OF INCOME | ||||
Interest income | $ 21,627 | $ 22,836 | ||
Interest expense | 2,231 | 2,077 | ||
Net interest income | 19,396 | 20,759 | ||
Provision (credit) for loan and lease losses | (750) | 382 | ||
Net interest income after provision (credit) for loan and | ||||
lease losses | 20,146 | 20,377 | ||
Non-interest income | 4,903 | 4,637 | ||
Non-interest expenses | 17,784 | 17,692 | ||
Income before income taxes | 7,265 | 7,322 | ||
Provision for income taxes | 1,744 | 1,405 | ||
Net income | $ 5,521 | $ 5,917 | ||
Average common shares outstanding | 3,289,497 | 3,339,242 | ||
PER COMMON SHARE | ||||
Net income | $ 1.68 | $ 1.77 | ||
Book value | $22.21 | $21.62 | ||
Tangible book value | $18.89 | $18.31 | ||
Closing price | $21.42 | $18.24 | ||
FINANCIAL RATIOS | ||||
Return on average assets | 0.90% | 0.94% | ||
Return on average equity | 7.94% | 8.51% | ||
Net interest margin | 3.54% | 3.71% | ||
Efficiency ratio | 71.71% | 68.13% | ||
Loans to deposits | 71.68% | 67.59% | ||
Allowance for loan and lease losses to loans | 0.89% | 1.08% | ||
PERIOD END BALANCES | ||||
As of December 31, 2016 | As of December 31, 2015 | |||
Assets | $633,119 | $608,665 | ||
Loans and leases, gross | $376,086 | $354,250 | ||
Deposits | $524,680 | $518,419 | ||
Shareholders' equity | $ 72,558 | $ 71,561 | ||
Common shares outstanding | 3,266,517 | 3,309,339 |
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 - 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