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 30, 2015
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) | ||
100 S. High Street, 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):
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition.
On July 30, 2015, United Bancshares, Inc. issued an earnings release announcing its financial results for the quarter and six month period ended June 30, 2015. 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 or the Exchange Act, except as otherwise stated in such filing.
Item 7.01 Regulation FD Disclosure.
On July 30, 2015, United Bancshares, Inc. issued an earnings release announcing its financial results for the quarter and six month period ended June 30, 2015. A copy of the earnings 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 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 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 30, 2015 | ||||||||
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 30, 2015 | By: /s/Diana L. Engelhardt | |||||
Diana L. Engelhardt Chief Financial Officer | ||||||
Exhibit 99.1
On July 30, 2015, United Bancshares, Inc. issued the following release:
United Bancshares, Inc. (Nasdaq: UBOH – news), a bank holding company headquartered in Columbus Grove, Ohio with consolidated assets of $628.5 million today announced operating results for the quarter and six month period ended June 30, 2015.
For the quarter ended June 30, 2015, the Corporation reported net income of $1,903,000, or $0.57 basic earnings per share. This compares to the second quarter of 2014 net income of $1,325,000, or $0.39 basic earnings per share. The increase in operating results for the second quarter of 2015 as compared to the same period in 2014 was primarily attributable to an increase in interest income of $856,000, decrease in provision for loan loss of $115,000, decrease in non-interest income of $72,000 and a $686,000 increase in non-interest expenses, a decrease of $158,000 in interest expense, and the related income tax effects of these items. The majority of the increase in interest income for the quarter was due to the acquisition of the loan portfolio from The Ohio State Bank (“OSB”). Non-interest expense increased due to occupancy and salary expense for the three branches acquired from OSB.
Net income for the six months ended June 30, 2015 totaled $3,025,000, or $0.90 basic earnings per share compared to $2,226,000 or $0.65 basic earnings per share for the same period in 2014. Compared with the same period in 2014, net income increased $798,000, or 35.9%. The increase for the six month period ended June 30, 2015, as compared to the six month period ended June 30, 2014, was primarily the result of an increase in non-interest income of $117,000 and an increase in net interest income of $1,983,000 offset by an increase of $1,368,000 in non-interest expenses, and the related income tax effects of these items. The majority of the increase in net interest income for the six months ended June 30, 2015 was due to the acquisition of the loan portfolio from OSB.
A $100,000 provision for loan losses was made during the first quarter and six month period ended June 30, 2015 while a $115,000 provision for loan losses was made during the second quarter and six month period ended June 30, 2014. The allowance for loan losses as a percentage of total loans decreased to 1.00% (excludes OSB loans) at June 30, 2015 compared to 1.32% at June 30, 2014.
For the quarter ended June 30, 2015, non-interest income was $1,277,000, compared to $1,349,000 for the second quarter of 2014, a $72,000 (5.3%) decrease. For the six month period ended June 30, 2015, non-interest income was $2,280,000 compared to $2,163,000 for the same period of 2014, a $117,000 (5.4%) increase. The increase in non-interest income for the first six months of 2015 as compared to 2014 was primarily attributable to a $103,000 increase in gain on sale of loans, an increase in mortgage servicing rights of $264,000 and an increase in service charges of $143,000 offset by a $345,000 decrease in gain on sale of securities and $41,000 in miscellaneous fees.
For the quarter ended June 30, 2015, non-interest expenses were $4,315,000, compared to $3,629,000 for the second quarter of 2014, a $686,000 (18.9%) increase. For the six month period ended June 30, 2015, non-interest expenses totaled $8,943,000, compared to $7,575,000 for the comparable period of 2014, an increase of $1,368,000 (18.1%). The increase in non-interest expenses for the six month period ended June 30, 2015 was primarily attributed to the increase in expenses for the three branches acquired from OSB. Also, contributing to the increase in non-interest expense were increases in other real estate owned expenses, asset management legal expense and deposit premium amortization.
Total assets amounted to $628.5 million at June 30, 2015, compared to $650.2 million at December 31, 2014, a decrease of $21.7 million (3.33%). The decrease in total assets was primarily the result of a decrease of $20.4 million (63.0%) in cash and cash equivalents, a $249,000 (3.95%) decrease in other assets and a $47,000 (8.72%) increase in other real estate owned, decrease of $3.2 million (0.88 %) in
gross loans, and an increase in available-for-sale securities of $1.8 million (0.88%). Deposits during this same period decreased $45.8 million, or 8.10%. The decrease in deposits also resulted in a decrease in total assets and increased borrowings by $22.3 million.
Shareholders’ equity increased from $67.8 million at December 31, 2014 to $69.3 million at June 30, 2015. This increase was the result of net income of $3,025,000, dividends paid of $603,000, repurchase of 39,321 shares for $594,000, the issuance of 403 treasury shares under the Corporation’s Employee Stock Purchase Plan of $8,000, and a $358,000 decrease in unrealized securities gains, net of tax. The decrease in unrealized securities gains during the three month period ended June 30, 2015, was the result of customary and expected changes in the bond market. Net unrealized gains on securities are reported as accumulated other comprehensive income in the consolidated balance sheets.
United Bancshares, Inc. is a locally owned and operated holding company of The Union Bank Company. Through our 15 branch offices located in Bowling Green, Columbus Grove, Delaware, Delphos, Findlay, Gibsonburg, Kalida, Leipsic, Lima, Marion, Ottawa, and Pemberville, Ohio, we serve the Ohio counties of Allen, Delaware, Hancock, Marion, Putnam, Sandusky, Van Wert, and Wood.
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 2014 Form 10-K.
Exhibit 99.2
United Bancshares, Inc.
Quarterly Report
June 30, 2015
Shareholders, Customers, and Employees:
I am pleased to inform you that your company reported positive results for the first half of 2015. Those positive results include net income of approximately $3.025 million ($0.90 basic earnings per share), which is a 36% increase over the same period in 2014. The increase was driven by increases in our core earnings and a one-time tax benefit due to a change in the tax law ($331,000, $0.10 earnings per share). Year to date core earnings as compared to the same period last year, were driven by an increase in net interest margin (27 basis points), increased earning assets (16% increase) and the resulting increased net interest income (24%).
We continue to manage your investment through several capital management strategies. Those strategies include repurchasing Company shares (39,321 shares YTD), improving the earnings of the assets we have (margin increase) and balancing those with a regular payment of dividends ($0.18 per basic earnings per share YTD). I am also pleased to report that in 2015 the Company’s shares have been regularly trading at increased price levels, reaching as high as $16.00 during June 2015.
After review of your Company’s earnings, capital position, risk profile and strategic plan, your Board of Directors declared a $.09 per share cash dividend, payable to shareholders on September 16, 2015. This cash dividend represents 16% of the second quarter earnings and is an 80% increase compared to the same quarter last year.
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, customers, colleagues, and communities are the foundation for the continued success of your Company.
Thank you for 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, 2015 | Six months ended June 30, 2014 | ||
(dollars in thousands, except per share data) | ||||
CONDENSED STATEMENT OF INCOME | ||||
Interest income | $ 11,381 | $ 9,672 | ||
Interest expense | 1,082 | 1,356 | ||
Net interest income | 10,299 | 8,316 | ||
Provision for loan losses | 100 | 115 | ||
Net interest income after provision for loan losses | 10,199 | 8,201 | ||
Non-interest income | 2,280 | 2,163 | ||
Non-interest expenses | 8,943 | 7,575 | ||
Income before income taxes | 3,536 | 2,789 | ||
Provision for income taxes | 511 | 563 | ||
Net income | $ 3,025 | $ 2,226 | ||
Average common shares outstanding | 3,354,839 | 3,431,317 | ||
PER COMMON SHARE | ||||
Net income | $ 0.90 | $ 0.65 | ||
Book value | $20.80 | $19.52 | ||
Tangible book value | $17.48 | $16.99 | ||
Closing price | $15.48 | $13.39 | ||
FINANCIAL RATIOS | ||||
Return on average assets | 0.94% | 0.78% | ||
Return on average equity | 8.85% | 7.01% | ||
Net interest margin | 3.64% | 3.37% | ||
Efficiency ratio | 63.76% | 69.13% | ||
Loans to deposits | 68.17% | 61.93% | ||
Allowance for loan losses to loans, excluding | ||||
loans marked to market in the acquisition of OSB | 1.14% | 1.32% | ||
PERIOD END BALANCES | ||||
As of June 30, 2015 | As of December 31, 2014 | |||
Assets | $628,548 | $650,200 | ||
Loans, gross | $357,762 | $360,937 | ||
Deposits | $519,626 | $565,445 | ||
Shareholders' equity | $ 69,251 | $ 67,772 | ||
Common shares outstanding | 3,328,817 | 3,367,735 |
UNITED BANCSHARES, INC.
DIRECTORS
Robert L. Benroth
Daniel W. Schutt
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
Diana L. Engelhardt - Chief Financial Officer
THE UNION BANK COMPANY
DIRECTORS
Robert L. Benroth
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
H. Edward Rigel
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