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): April 22, 2016
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 April 22, 2016, United Bancshares, Inc. issued an earnings release announcing its financial results for the three month period ended March 31, 2016. 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 April 22, 2016, United Bancshares, Inc. issued an earnings release announcing its financial results for the three month period ended March 31, 2016 and that its Board of Directors approved a cash dividend of $0.11 per common share payable June 15, 2016 to shareholders of record at the close of business on May 31, 2016. 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 8.01 Other Events
On April 22, 2016, United Bancshares, Inc. issued a release announcing that its Board of Directors approved a cash dividend of $0.11 per common share payable June 15, 2016 to shareholders of record at the close of business on May 31, 2016. A copy of the release (Exhibit 99.1) is attached.
The information in this Item 8.01, including Exhibit 99.1 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 April 22, 2016 | ||||||||
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: April 22, 2016 | By: /s/ Brian D. Young | |||||
Brian D. Young President and Chief Executive Officer | ||||||
Exhibit 99.1
On April 22, 2016, 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 $616.7 million today announced operating results for the three month period ended March 31, 2016 and that its Board of Directors approved a cash dividend of $0.11 per common share payable June 15, 2016 to shareholders of record at the close of business on May 31, 2016.
For the quarter ended March 31, 2016, the Corporation reported net income of $1,308,000, or $0.40 basic earnings per share. This compares to the first quarter of 2015 net income of $1,122,000, or $0.33 basic earnings per share. The increase in operating results for the first quarter of 2016 as compared to the same period in 2015 was primarily attributable to a credit for loan and lease losses of $400,000 for the first quarter of 2016 compared to a $100,000 provision for loan and lease losses for the first quarter of 2015 as well as an increase in non-interest income of $115,000, a $72,000 decrease in non-interest expenses and a decrease of $40,000 in interest expense. These improvements in net income were offset by a decrease in interest income of $465,000 and the related income tax effects of these various items.
For the quarter ended March 31, 2016, non-interest expenses were $4,556,000, compared to $4,628,000 for the first quarter of 2015, a $72,000 (1.56%) decrease. The decrease in non-interest expenses for the three month period ended March 31, 2016 was primarily attributed to decreases in premises and fixed asset expense, data processing expense, consultant fees, Ohio financial institutions tax expense and other real estate owned expense offset by increases in salaries and benefits expense, media expense, loan closing fees, ATM processing expense and miscellaneous expenses.
Total assets amounted to $616.7 million at March 31, 2016, compared to $608.7 million at December 31, 2015, an increase of $8.0 million (1.32%). The increase in total assets was primarily the result of an increase of $4.6 million (1.31%) in loans and leases, $3.6 million (15.86%) in cash and cash equivalents, and $856,000 (.47%) in available-for-sale securities offset by a $1,167,000 (22.45%) decrease in other assets. Deposits during this same period increased $7.3 million, or 1.40%.
Shareholders’ equity increased from $71.6 million at December 31, 2015 to $73.7 million at March 31, 2016. This increase was the result of net income of $1,308,000, dividends paid of $363,000, repurchase of 12,551 shares of $210,000, the issuance of 307 treasury shares under the Corporation’s Employee Stock Purchase Plan of $6,000, and a $1,357,000 increase in unrealized securities gains, net of tax. The increase in unrealized securities gains during the three month period ended March 31, 2016, 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 the holding company of The Union Bank Company which serves Allen, Delaware, Hancock, Marion, Putnam, Sandusky, Van Wert and Wood Counties in Ohio, with office locations in Bowling Green, Columbus Grove, Delaware, Delphos, Findlay, Gibsonburg, Kalida, Leipsic, Lima, Marion, Ottawa, and Pemberville, 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 2015 Form 10-K.
Exhibit 99.2
United Bancshares, Inc.
Quarterly Report
March 31, 2016
Shareholders, Clients and Team Members:
I am pleased to report that your Company is off to a great start in 2016. In addition to reporting pre-tax income for the first quarter of approximately $1.7 million, an 18.3% increase over the first quarter of 2015, the Company reports that the Board of Directors has declared a $0.11 per common share dividend payable June 15, 2016 to shareholders of record at the close of business on May 31, 2016.
During the first quarter of 2016, we continued the execution of our strategic initiatives to further improve the value of your investment including:
·
To increase our customer base and deepen relationships with existing clients. The Bank hired three experienced Commercial Relationship Officers, two at our Delaware County office and one in our Lima, Ohio market.
·
Share Repurchase Program. The Company repurchased 12,551 shares at an average price of $16.74 per share.
·
The redesign and added functionality to our electronic footprint. A cross-functional team has identified opportunities for enhancements that will better serve and grow our client relationships. The team has researched the costs, risks, benefits and resources needed, and based on that analysis, we have selected the projects that we believe will produce the most positive impact with an appropriate return on investment. The first completed enhancement was made to the Bank’s mobile banking application.
·
Use of Market Data and Trends. Team members have begun refining the usage of market data and trends to increase our market share and make more effective and efficient decisions.
·
Team Member Wellness. Participation in wellness programs continues to increase among Company team members.
·
Dividends. After the review of various factors, including current economic conditions, the Company’s earnings levels, capital sources available and capital available for growth, the Board of Directors declared the aforementioned dividend.
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) | Three months ended March 31, 2016 | Three months ended March 31, 2015 | ||
(dollars in thousands, except per share data) | ||||
CONDENSED STATEMENT OF INCOME | ||||
Interest income | $ 5,245 | $ 5,711 | ||
Interest expense | 514 | 555 | ||
Net interest income | 4,731 | 5,156 | ||
Provision for loan and lease losses | (400) | 100 | ||
Net interest income after provision for loan and lease losses | 5,131 | 5,056 | ||
Non-interest income | 1,119 | 1,004 | ||
Non-interest expenses | 4,556 | 4,628 | ||
Income before income taxes | 1,694 | 1,432 | ||
Provision for income taxes | 386 | 310 | ||
Net income | $ 1,308 | $ 1,122 | ||
Average common shares outstanding | 3,301,206 | 3,366,251 | ||
PER COMMON SHARE | ||||
Net income | $ 0.40 | $ 0.33 | ||
Book value | $22.34 | $20.62 | ||
Tangible book value | $19.02 | $17.33 | ||
Closing price | $18.60 | $15.18 | ||
FINANCIAL RATIOS | ||||
Return on average assets | 0.86% | 0.69% | ||
Return on average equity | 7.20% | 6.64% | ||
Net interest margin | 3.53% | 3.58% | ||
Efficiency ratio | 75.82% | 67.59% | ||
Loans to deposits | 68.35% | 64.47% | ||
Allowance for loan and lease losses to loans, excluding | ||||
loans marked to market in the acquisition of OSB | 1.13% |
| 1.16% | |
PERIOD END BALANCES | ||||
As of March 31, 2016 | As of March 31, 2015 | |||
Assets | $616,676 | $638,148 | ||
Loans and leases, gross | $358,895 | $356,316 | ||
Deposits | $525,701 | $547,244 | ||
Shareholders' equity | $ 73,660 | $ 69,350 | ||
Common shares outstanding | 3,297,095 | 3,363,138 |
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 – Interim 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
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