Toggle SGML Header (+)


Section 1: 8-K (FORM 8-K)

uboh20180920_8k.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________

 

 

 

FORM 8-K

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the

 Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): July 19, 2019

 

UNITED BANCSHARES, INC.

(Exact name of Registrant as specified in its Charter)

 

 

 

Ohio

000-29283

34-1516518

(State or other jurisdiction of

incorporation)

(Commission File No.)

(IRS Employer Identification Number)

 

105 Progressive Drive, Columbus Grove, Ohio

45830-1241

(Address of principal executive offices)

(Zip Code)

 

Registrant’s telephone number, including area code:

(419) 659-2141

 

N/A

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

☐ 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Securities registered or to be registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of Each Exchange

Common Stock, No Par Value

UBOH

NASDAQ Global Market

 

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐                     

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

Item 2.02 Results of Operations and Financial Condition.

 

On July 19, 2019, United Bancshares, Inc. issued an earnings release announcing its financial results for the quarter and six month period ended June 30, 2019.  A copy of the earnings release (Exhibit 99.1) and unaudited financial information (Exhibit 99.2) are attached.

 

The information in this Item 2.02, including Exhibit 99.1 and Exhibit 99.2 furnished herewith, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that Section, nor shall such information be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933 (the “Securities Act”) or the Exchange Act, except as otherwise stated in such filing.

 

Item 7.01 Regulation FD Disclosure.

 

On July 19, 2019, United Bancshares, Inc. issued an earnings release announcing its financial results for the quarter and six month period ended June 30, 2019.  A copy of the release (Exhibit 99.1) and unaudited financial information (Exhibit 99.2) are attached.

 

The information in this Item 7.01, including Exhibit 99.1 and Exhibit 99.2 furnished herewith, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that Section, nor shall such information be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act or the Exchange Act, except as otherwise stated in such filing.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit No.

Description

   

99.1

Release dated July 19, 2019

99.2

Unaudited Financial Information

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

United Bancshares, Inc.

 

 

 

 

 

 

 

 

 

Date:  July 19, 2019

By:

/s/ Brian D. Young

 

 

 

  Brian D. Young

 

 

 

  President and Chief Executive Officer

 

 

(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

ex_124324.htm

Exhibit 99.1

 

On July 19, 2019, United Bancshares, Inc. issued the following release:

 

United Bancshares, Inc. (Nasdaq: UBOH – news), a financial holding company headquartered in Columbus Grove, Ohio with consolidated assets of $855.4 million today announced operating results for the quarter and six month period ended June 30, 2019.

 

For the quarter ended June 30, 2019, the Corporation reported net income of $2,285,000, or $0.70 basic earnings per share. This compares to the second quarter of 2018 net income of $2,200,000, or $0.67 basic earnings per share. The increase in operating results for the second quarter of 2019 as compared to the same period in 2018 was primarily attributable to an increase in non-interest income of $970,000, offset by a decrease in net interest income of $82,000 as well as increases in non-interest expenses of $693,000, provision for loan losses of $40,000, and provision for income taxes of $70,000.

 

Net income for the six months ended June 30, 2019 totaled $4,099,000, or $1.25 basic earnings per share compared to $3,999,000, or $1.22 basic earnings per share for the same period in 2018.  Compared with the same period in 2018, net income increased $100,000, or 2.5%.  The increase in operating results for the six month period ended June 30, 2019 as compared to the six month period ended June 30, 2018 was primarily attributable to increases in net interest income of $323,000 and non-interest income of $1,230,000 offset by increases in non-interest expenses of $1,364,000, provision for loan loss of $50,000 and provision for income taxes of $39,000.

 

For the quarter ended June 30, 2019, non-interest income was $3,133,000, compared to $2,163,000 for the second quarter of 2018, a $970,000 (44.8%) increase, which was primarily attributable to increases in gain on sales of loans of $1,329,000 offset by a decrease in other non-interest income of $367,000.  For the six months ended June 30, 2019, non-interest income was $5,641,000, compared to $4,411,000 for same period in 2018, an increase of $1,230,000 (27.9%) which was primarily attributable to increases in gain on sales of loans of $1,668,000, offset by a decrease in gain on sales of securities of $6,000 as well as a decrease in other non-interest income of $432,000.  The significant increase in gain on sale of loans was attributable to the residential mortgage and governmental lending operations. 

 

The decrease in other operating income for the three and six month periods ended June 30, 2019 is largely attributable to the impact of changes in the fair value of mortgage servicing rights.  During the three and six month periods ended June 30, 2019, the fair value of the mortgage servicing rights asset decreased $171,000 and $282,000, respectively, primarily due to an increase in prepayment speeds caused by a continuing decrease in mortgage loan interest rates.  This change is occurring throughout the mortgage banking industry and is not specific to the Bank's serviced loan portfolio.  During the three month period ended June 30, 2018, the fair value of the servicing rights asset decreased $11,000 while during the six month period ended June 30, 2018, the fair value of the servicing rights asset increased $42,000 with a minimal change in the level of serviced loan portfolio.

 

For the quarter ended June 30, 2019, non-interest expenses were $7,492,000, compared to $6,799,000 for the second quarter of 2018, a $693,000 (10.2%) increase.  The quarter-over-quarter increases included salaries and benefits expense of $408,000 (10.4%), advertising and promotion of $21,000 (5.9%), legal fees of $48,000, loan fees of $123,000 and ATM processing expense of $48,000. 

 

For the six month period ended June 30, 2019, non-interest expenses totaled $14,714,000, compared to $13,350,000 for the same period of 2018, an increase of $1,364,000 (10.2%) which was primarily attributable to increases in salaries and benefits expense of $808,000 (10.5%), data processing of $94,000 (14.8%), advertising and promotion of $39,000 (6.0%), legal fees of $151,000, loan fees of $153,000 and ATM processing expenses of $55,000.

 

Total assets amounted to $855.4 million at June 30, 2019, compared to $830.3 million at December 31, 2018, an increase of $25.1 million (3.0%). The increase in total assets was primarily the result of an increase of $3.9 million in cash and cash equivalents (due to deposit growth), $10.6 million in net loans, $2.3 million in loans held for sale and $7.3 million in securities available-for-sale. Deposits during this same period increased $22.9 million (3.4%) while other borrowings decreased $6.2 million (7.9%).

 

Shareholders’ equity increased from $80.9 million at December 31, 2018 to $88.1 million at June 30, 2019. This increase was primarily the result of net income during the six month period ended June 30, 2019 of $4,099,000 and an increase in unrealized securities gains, net of tax of $3,721,000, offset by dividends paid of $850,000. The increase in unrealized securities gains during the six month period ended June 30, 2019, was the result of customary and expected changes in the bond market. Net unrealized gains and losses on securities are reported as accumulated other comprehensive income (loss) in the consolidated balance sheets.

 

United Bancshares, Inc. is the holding company of The Union Bank Company which serves Allen, Delaware, Franklin, Hancock, Marion, Putnam, Sandusky, Van Wert and Wood Counties in Ohio, with office locations in Bowling Green, Columbus Grove, Delaware, Delphos, Findlay, Gahanna, Gibsonburg, Kalida, Leipsic, Lima, Marion, Ottawa, Pemberville, Westerville and Worthington Ohio.

 

This release may contain certain forward-looking statements that are provided to assist in the understanding of anticipated future financial performance.  However, such performance involves risk and uncertainties that may cause actual results to differ materially.  Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to, the strength of the local economies in which operations are conducted, the effects of and changes in policies and laws of regulatory agencies, inflation, and interest rates.  For further discussion of certain factors that may cause such forward-looking statements to differ materially from actual results, refer to the 2018 Form 10-K.

(Back To Top)

Section 3: EX-99.2 (EXHIBIT 99.2)

ex_124325.htm

Exhibit 99.2

 

United Bancshares, Inc.

 

Quarterly Report

June 30, 2019

 

Shareholders, Clients and Team Members:

 

I am pleased to report on your Company’s continued successes in 2019.  Those successes include reporting income before taxes of approximately $4.9 million, return on average tangible equity of 15.16% and return on average assets of 0.97%.  Additionally, the Board of Directors declared a second quarter 2019 $0.13 per share dividend, an 8.3% increase as compared to the second quarter of 2018.

 

During the first half of 2019, we continued the execution of our strategic initiatives to further improve the value of your investment.   During that six month period those efforts lead to positive results including increased deposit and loan balances of 3.4% and 2.0%, respectively.  Those increases led to a 2.3% increase in net interest income despite a very challenging interest rate environment.   

 

In addition to continued balance sheet and marginal income growth, your Company continues efforts into further development of our residential and governmental loan originations as part of our strategic plan.  During the first six months of 2019, these two initiatives not only generated significant growth in gain on loan sales, but also provided opportunities to develop long-term relationships with clients. 

 

The continued accomplishments 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 Subsidiaries

 

Financial Information (unaudited)

 

Six months ended

June 30, 2019

   

Six months ended

June 30, 2018

 

 

  (dollars in thousands, except per share data)

Condensed Statement of Income

               

Interest income

  $ 18,456     $ 16,451  

Interest expense

    4,276       2,594  

Net interest income

    14,180       13,857  

Provision for loan losses

    250       200  

Net interest income after provision for loan losses

    13,930       13,657  

Non-interest income

    5,641       4,411  

Non-interest expenses

    14,714       13,350  

Income before income taxes

    4,857       4,718  

Provision for income taxes

    758       719  

Net income

  $ 4,099     $ 3,999  
                 

Average common shares outstanding (basic)

    3,270,522       3,268,083  
                 

PER COMMON SHARE

               

Net income

  $ 1.25     $ 1.22  

Book value

  $ 26.92     $ 23.36  

Tangible book value (non-GAAP)*

  $ 17.91     $ 15.33  

Closing price

  $ 20.17     $ 22.00  
                 

FINANCIAL RATIOS

               

Return on average assets

    0.97 %     1.02 %

Return on average tangible equity (non-GAAP)

    15.16 %     16.42 %

Net interest margin

    3.81 %     4.02 %

Efficiency ratio

    72.93 %     71.68 %

Loans (including held for sale) to deposits

    84.54 %     85.19 %

 

PERIOD END BALANCES

   

As of

June 30, 2019

   

As of

June 30, 2018

 

Assets

  $ 855,412     $ 807,784  

Loans, gross

  $ 572,594     $ 539,535  

Deposits

  $ 689,158     $ 641,228  

Shareholders' equity

  $ 88,054     $ 76,352  
                 

Common shares outstanding

    3,270,635       3,268,111  

 

 

 

*  Tangible book value per share is calculated by dividing tangible equity by average shares outstanding.

 

 

 

Reconciliation of shareholders' equity to tangible equity          
    June 30, 2019       June 30, 2018

Shareholders' equity

$ 88,054    

$

76,352
Less goodwill and other intangibles  (a)

 

29,490       26,242
Tangible common equity $ 58,564     $ 50,110
Average Shareholders' equity $ 83,590     $ 74,995
Less average goodwill and other intangibles  (a)   29,525       26,276
Average tangible common equity $ 54,065     $ 48,719

 

(a)  Goodwill and other intangibles for the June 30, 2019, as compared to the June 30, 2018, period includes the impact of the $3.4 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

 

132 E. Front St.

Pemberville, OH 43450

419-287-3211

 

468 Polaris Parkway

Westerville, OH 43082

614-269-4402

(Back To Top)