Exhibit 99.2
United Bancshares, Inc.
Quarterly Report
December 31, 2017
Shareholders, Clients, and Employees:
I am proud to report that as a direct result of the ongoing efforts of the Company’s dedicated team members in implementing our Strategic Plan, your Company experienced another prosperous year in 2017.
A significant part of this year’s successes was the completion of the acquisition of Benchmark Bank on September 8, 2017. This acquisition gave your Company a larger income-earning asset base, income accretion, and provides a larger geographic presence in Ohio’s fastest growing region. The impact of this transaction and organic growth were the primary drivers of the fourth quarter’s improved financial performance.
For the fourth quarter of 2017, excluding the tax expense of $1,136,000 for the deferred tax asset revaluation, your Company reported return on average assets of 1.03% and return on tangible equity of 15.75%. The Company also reported net interest margin of 3.98%, and a 35% increase in pre-tax income, as compared to the fourth quarter of 2016. The Company also reported an increase in total assets (19%), loans (35%), deposits (20%), and net interest income (17%) during 2017, including the impact of the Benchmark acquisition. Pre-tax income, excluding acquisition costs, increased (10%) in 2017 as compared to 2016.
I am also pleased to report that after review of your Company’s earnings, capital position, and risk profile, your Board of Directors declared a $.12 per share cash dividend that will be payable to shareholders on March 15, 2018.
Although uncertainty still remains in our markets, we continue to believe the driver of our success is, and will continue to be, our strong corporate values of respect for our shareholders, clients, 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, 2017 |
| For the Year ended December 31, 2016 |
|
(dollars in thousands, except per share data) |
|
|
|
|
CONDENSED STATEMENT OF INCOME |
|
|
|
|
Interest income | $ 25,772 |
| $ 21,627 |
|
Interest expense | 3,118 |
| 2,231 |
|
Net interest income | 22,654 |
| 19,396 |
|
Credit for loan and lease losses | (350) |
| (750) |
|
Net interest income after credit for loan and lease losses | 23,004 |
| 20,146 |
|
Non-interest income | 6,174 |
| 4,903 |
|
Non-interest expenses | 22,453 |
| 17,784 |
|
Income before income taxes | 6,725 |
| 7,265 |
|
Provision for income taxes | 2,879 |
| 1,744 |
|
Net income | $ 3,846 |
| $ 5,521 |
|
|
|
|
|
|
Average common shares outstanding (basic) | 3,267,305 |
| 3,289,497 |
|
|
|
|
|
|
PER COMMON SHARE |
|
|
|
|
Net income | $ 1.18 |
| $ 1.68 |
|
Book value | $23.17 |
| $22.21 |
|
Tangible book value | $15.11 |
| $18.89 |
|
Closing price | $22.20 |
| $21.42 |
|
|
|
|
|
|
FINANCIAL RATIOS |
|
|
|
|
Return on average assets | 0.56% |
| 0.90% |
|
Return on average tangible equity | 6.40% |
| 9.41% |
|
Net interest margin | 3.76% |
| 3.54% |
|
Efficiency ratio | 76.37% |
| 71.71% |
|
Loans to deposits | 80.69% |
| 71.68% |
|
Allowance for loan and lease losses to loans | 0.56% |
| 0.89%
|
|
PERIOD END BALANCES |
|
|
|
|
| As of December 31, 2017 |
| As of December 31, 2016 |
|
Assets | $780,450 |
| $633,119 |
|
Loans and leases, gross | $506,412 |
| $376,086 |
|
Deposits | $630,548 |
| $524,680 |
|
Shareholders' equity | $ 75,704 |
| $ 72,558 |
|
|
|
|
|
|
Common shares outstanding | 3,267,643 |
| 3,266,517 |
|
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
