Exhibit 99.2
United Bancshares, Inc.
Quarterly Report
June 30, 2017
Shareholders, Clients and Team Members:
I am pleased to inform you that your Company reported positive results for the first half of 2017. In addition to reporting pre-tax income of approximately $3.3 million, the Company reported increases in interest income, non-interest income, loans, deposits, and total assets as compared to the same period in 2016. The Company also reported that the Board of Directors declared a $0.12 per common share dividend payable September 15, 2017 to shareholders of record at the close of business on August 31, 2017.
In the first quarter we announced that your Company had signed a definitive merger agreement under which we agreed to acquire all of the stock of Benchmark Bancorp, Inc. in an all-cash transaction. Your team continues to work diligently to close the transaction, which is expected to be completed in the third quarter of 2017. This acquisition is not only expected to give your Company immediate asset growth and income accretion, but will also give your Company a larger geographic presence in Ohio’s fastest growing region.
We continue to work to manage your investment through several capital management strategies. Those strategies include increasing earning assets through organic growth and acquisition, share repurchasing, improving the net margin of our assets, and balancing those with a regular payment of dividends. I am also pleased to report that in 2017 the Company’s shares have been regularly trading at increased price levels, reaching as high as $23.50 during June 2017.
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) | Six months ended June 30, 2017 |
| Six months ended June 30, 2016 |
|
(dollars in thousands, except per share data) |
|
|
|
|
CONDENSED STATEMENT OF INCOME |
|
|
|
|
Interest income | $ 11,388 |
| $ 10,548 |
|
Interest expense | 1,259 |
| 1,071 |
|
Net interest income | 10,129 |
| 9,477 |
|
Credit for loan and lease losses | (350) |
| (700) |
|
Net interest income after credit for loan and lease losses | 10,479 |
| 10,177 |
|
Non-interest income | 2,385 |
| 2,181 |
|
Non-interest expenses | 9,522 |
| 8,917 |
|
Income before income taxes | 3,342 |
| 3,441 |
|
Provision for income taxes | 763 |
| 798 |
|
Net income | $ 2,579 |
| $ 2,643 |
|
|
|
|
|
|
Average common shares outstanding (basic) | 3,267,020 |
| 3,299,064 |
|
|
|
|
|
|
PER COMMON SHARE |
|
|
|
|
Net income | $ 0.79 |
| $ 0.80 |
|
Book value | $23.13 |
| $22.85 |
|
Tangible book value | $19.83 |
| $19.54 |
|
Closing price | $22.30 |
| $17.80 |
|
|
|
|
|
|
FINANCIAL RATIOS |
|
|
|
|
Return on average assets | 0.81% |
| 0.86% |
|
Return on average equity | 6.97% |
| 7.21% |
|
Net interest margin | 3.62% |
| 3.51% |
|
Efficiency ratio | 73.89% |
| 74.50% |
|
Loans to deposits | 71.53% |
| 70.27% |
|
Allowance for loan and lease losses to loans | 0.74% | | 0.94%
|
|
PERIOD END BALANCES |
|
|
|
|
| As of June 30, 2017 |
| As of June 30, 2016 |
|
Assets | $636,678 |
| $618,053 |
|
Loans and leases, gross | $384,311 |
| $359,773 |
|
Deposits | $537,303 |
| $511,961 |
|
Shareholders' equity | $ 75,557 |
| $ 75,332 |
|
|
|
|
|
|
Common shares outstanding | 3,267,049 |
| 3,296,745 |
|
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
