Exhibit 99.2
United Bancshares, Inc.
Quarterly Report
September 30, 2019
Shareholders, Clients and Team Members:
I am pleased to report on your Company’s continued successes in 2019. Those successes include reporting year-to-date income before taxes of approximately $7.7 million, a 12.9% increase compared to the same period in 2018, return on average tangible equity of 15.46%, and return on average assets of 1.02%. In addition, the Board of Directors declared a $0.13 per share dividend, an 8.3% increase as compared to the third quarter of 2018.
The primary drivers of increased profitability were improvements in both net interest and non-interest income, which increased $522,000 (2.5%) and $2,599,000 (37.8%), respectively. These increases were the result of continued organic growth in loans and deposits and further expansion of your Company’s governmental lending and residential mortgage origination teams in a favorable residential mortgage interest rate environment.
The continued long-term growth and success of your Company has been and will continue to be our ability to attract and retain the best and brightest team members. We are very excited about those that have chosen to be part of our team. Their passion, expertise and desire to serve others enables your Company to take advantage of growth opportunities in our current markets and beyond.
While economies, interest rates and the regulatory environment are ever changing, we believe it is our strong corporate values of respect for and accountability to our shareholders, clients, colleagues and communities that remain the most important components 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 and CEO
United Bancshares, Inc.
and Subsidiaries
Financial Information (unaudited) | | Nine months ended September 30, 2019 | | | Nine months ended September 30, 2018 | |
| | | (dollars in thousands, except per share data) | |
Condensed Statement of Income | | | | | | | | |
Interest income | | $ | 28,051 | | | $ | 25,210 | |
Interest expense | | | 6,600 | | | | 4,281 | |
Net interest income | | | 21,451 | | | | 20,929 | |
Provision for loan losses | | | 400 | | | | 350 | |
Net interest income after provision for loan losses | | | 21,051 | | | | 20,579 | |
Non-interest income | | | 9,474 | | | | 6,875 | |
Non-interest expenses | | | 22,784 | | | | 20,599 | |
Income before income taxes | | | 7,741 | | | | 6,855 | |
Provision for income taxes | | | 1,224 | | | | 1,070 | |
Net income | | $ | 6,517 | | | $ | 5,785 | |
| | | | | | | | | |
Average common shares outstanding (basic) | | | 3,271,028 | | | | 3,268,435 | |
| | | | | | | | | |
PER COMMON SHARE | | | | | | | | |
Net income | | $ | 1.99 | | | $ | 1.77 | |
Book value | | $ | 27.87 | | | $ | 23.54 | |
Tangible book value (non-GAAP)* | | $ | 18.87 | | | $ | 14.48 | |
Closing price | | $ | 20.02 | | | $ | 22.90 | |
| | | | | | | | | |
FINANCIAL RATIOS | | | | | | | | |
Return on average assets | | | 1.02 | % | | | 0.97 | % |
Return on average tangible equity (non-GAAP) | | | 15.46 | % | | | 15.59 | % |
Net interest margin | | | 3.78 | % | | | 3.98 | % |
Efficiency ratio | | | 72.57 | % | | | 72.88 | % |
Loans (including held for sale) to deposits | | | 83.67 | % | | | 84.38 | % |
PERIOD END BALANCES
| | | As of September 30, 2019 | | | As of September 30, 2018 | |
Assets | | $ | 875,830 | | | $ | 815,153 | |
Loans, gross | | $ | 573,210 | | | $ | 550,777 | |
Deposits | | $ | 706,324 | | | $ | 660,349 | |
Shareholders' equity | | $ | 91,185 | | | $ | 76,956 | |
| | | | | | | | | |
Common shares outstanding | | | 3,272,315 | | | | 3,269,358 | |
* Tangible book value per share is calculated by dividing tangible equity by average shares outstanding.
Reconciliation of shareholders' equity to tangible equity |
| | | September 30, 2019 | | | September 30, 2018 | |
Shareholders' equity | | $ | 91,185 | | | $ | 76,956 | |
Less goodwill and other intangibles | | | 29,450 | | | | 29,612 | |
Tangible common equity | | $ | 61,735 | | | $ | 47,344 | |
Average Shareholders' equity | | $ | 85,566 | | | $ | 76,058 | |
Less average goodwill and other intangibles (a) | | | 29,504 | | | | 26,268 | |
Average tangible common equity | | $ | 56,062 | | | $ | 49,790 | |
(a) Goodwill and other intangibles for the September 30, 2019 period, as compared to the September 30, 2018 period, includes the impact of the $3.2 million goodwill adjustment made in August 2018 as a result of a review of the accounting and tax implications of the September 2017 Benchmark Bancorp, Inc. transaction.
UNITED BANCSHARES, INC.
DIRECTORS Robert L. Benroth Herbert H. Huffman H. Edward Rigel David P. Roach | Daniel W. Schutt – Chairman R. Steven Unverferth Brian D. Young |
OFFICERS
Brian D. Young - President/CEO
Heather M. Oatman - Secretary
Stacy A. Cox – Chief Financial Officer
THE UNION BANK COMPANY
DIRECTORS
Robert L. Benroth Anthony M.V. Eramo Herbert H. Huffman Kevin L. Lammon William R. Perry | H. Edward Rigel David P. Roach Carol R. Russell Daniel W. Schutt R. Steven Unverferth |
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
2660 US Hwy. 224, Ste. 3
Plymouth, OH 44865
419-659-2141
132 E. Front St.
Pemberville, OH 43450
419-287-3211
468 Polaris Parkway
Westerville, OH 43082
614-269-4402
6797 N. High St., Ste. 238
Worthington, OH 43085
614-296-0252
