Exhibit 99.2
United Bancshares, Inc.
Quarterly Report
September 30, 2017
Shareholders, Clients, and Employees:
I am pleased to report on your Company’s continued successes in 2017 including the Board of Directors declaration of a $0.12 per share dividend, payable on December 15th to shareholders of record as of November 30, 2017.
A big part of this year’s success was the completion of the acquisition of Benchmark Bank on September 8, 2017. This acquisition gives your Company a larger income-earning asset base, expected income accretion, and provides a larger geographic presence in Ohio’s fastest growing region. We are excited not only for the opportunities that come with additional clients, an increased asset base and stronger market presence, but more importantly to welcome our newest Benchmark team members, who have demonstrated a strong desire to contribute to your Company’s positive influence in their communities.
During the first three quarters of 2017, the Company paid approximately $1.3 million in acquisition related expenses. Excluding those acquisition charges, your Company would have reported approximately $5.3 million in income before income taxes compared to $5.2 million for the same period in 2016. Additionally, as a result of organic growth and assets acquired in the acquisition, your Company’s balance sheet has grown to approximately $771 million in total assets, $493 million in loans and $638 million in deposits. As compared to December 31, 2016 balances, these represent increases of 21.7%, 31.1% and 21.5%, respectively.
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) | Nine months ended September 30, 2017 |
| Nine months ended September 30, 2016 |
|
(dollars in thousands, except per share data) |
|
|
|
|
CONDENSED STATEMENT OF INCOME |
|
|
|
|
Interest income | $ 17,872 |
| $ 16,089 |
|
Interest expense | 2,035 |
| 1,652 |
|
Net interest income | 15,837 |
| 14,437 |
|
Credit for loan and lease losses | (350) |
| (700) |
|
Net interest income after credit for loan and lease losses | 16,187 |
| 15,137 |
|
Non-interest income | 3,745 |
| 3,471 |
|
Non-interest expenses | 15,949 |
| 13,371 |
|
Income before income taxes | 3,983 |
| 5,237 |
|
Provision for income taxes | 1,002 |
| 1,216 |
|
Net income | $ 2,981 |
| $ 4,021 |
|
|
|
|
|
|
Average common shares outstanding (basic) | 3,267,191 |
| 3,295,307 |
|
|
|
|
|
|
PER COMMON SHARE |
|
|
|
|
Net income | $ 0.91 |
| $ 1.22 |
|
Book value | $23.17 |
| $23.00 |
|
Tangible book value | $15.13 |
| $19.68 |
|
Closing price | $22.50 |
| $19.99 |
|
|
|
|
|
|
FINANCIAL RATIOS |
|
|
|
|
Return on average assets | 0.61% |
| 0.87% |
|
Return on average equity | 5.30% |
| 7.23% |
|
Net interest margin | 3.68% |
| 3.53% |
|
Efficiency ratio | 79.36% |
| 72.88% |
|
Loans to deposits | 77.39% |
| 69.39% |
|
Allowance for loan and lease losses to loans | 0.57% | | 0.94%
|
|
PERIOD END BALANCES |
|
|
|
|
| As of September 30, 2017 |
| As of September 30, 2016 |
|
Assets | $770,713 |
| $615,314 |
|
Loans and leases, gross | $493,089 |
| $359,082 |
|
Deposits | $637,674 |
| $517,498 |
|
Shareholders' equity | $ 75,714 |
| $ 75,344 |
|
|
|
|
|
|
Common shares outstanding | 3,267,643 |
| 3,276,514 |
|
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
461 Beecher Road
Gahanna, OH 43230
614-269-4400
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
468 Polaris Parkway
Westerville, OH 43082
614-269-4402
