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 20, 2016
UNITED BANCSHARES, INC.
(Exact name of Registrant as specified in its Charter)
Ohio | 333-86453 | 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 20, 2016, United Bancshares, Inc. issued an earnings release announcing its financial results for the quarter and six month period ended June 30, 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 July 20, 2016, United Bancshares, Inc. issued an earnings release announcing its financial results for the quarter and six month period ended June 30, 2016 and that its Board of Directors approved a cash dividend of $0.11 per common share payable September 15, 2016 to shareholders of record at the close of business on August 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 July 20, 2016, United Bancshares, Inc. issued a release announcing that its Board of Directors approved a cash dividend of $0.11 per common share payable September 15, 2016 to shareholders of record at the close of business on August 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 July 20, 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: July 20, 2016 | By: /s/ Brian D. Young | |||||
Brian D. Young President and Chief Executive Officer | ||||||
Exhibit 99.1
On July 20, 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 $618.1 million today announced operating results for the quarter and six month period ended June 30, 2016 and that its Board of Directors approved a cash dividend of $0.11 per common share payable September 15, 2016 to shareholders of record at the close of business on August 31, 2016.
For the quarter ended June 30, 2016, the Corporation reported net income of $1,336,000, or $0.40 basic earnings per share. This compares to the second quarter of 2015 net income of $1,903,000, or $0.57 basic earnings per share. The decrease in operating results for the second quarter of 2016 as compared to the same period in 2015 was primarily attributable to a decrease in net interest income of $397,000, a decrease in non-interest income of $214,000, an increase in non-interest expense of $45,000 and an increase in income taxes of $211,000, offset by a credit for loan losses of $300,000. The decrease in net interest income was largely attributable to less loan discount accretion relating to the November 2014 Ohio State Bank (OSB) acquisition. The decrease in non-interest income was largely attributable to a decrease in fair value of mortgage servicing rights. The increase in income taxes, despite a $356,000 decrease in income before income taxes, was due to a one-time tax benefit of $331,000 recognized during the second quarter of 2015 relating to the OSB acquisition.
Net income for the six months ended June 30, 2016 totaled $2,643,000, or $0.80 basic earnings per share compared to $3,025,000 or $0.90 basic earnings per share for the same period in 2015. Compared with the same period in 2015, net income decreased $382,000, or 12.6%. The decrease in operating results for the six month period ended June 30, 2016 as compared to the six month period ended June 30, 2015 was primarily attributable to a decrease in net interest income of $822,000, a decrease in non-interest income of $99,000 and an increase in income taxes of $287,000, offset by a decrease in non-interest expense of $26,000, as well as a credit for loan losses of $700,000 in 2016 compared to a $100,000 provision for the same period in 2015.
The allowance for loan losses as a percentage of total loans decreased to 0.94% at June 30, 2016 compared to 1.00% at June 30, 2015.
For the quarter ended June 30, 2016, non-interest income was $1,063,000, compared to $1,277,000 for the second quarter of 2015, a $214,000 (16.8%) decrease. For the six month period ended June 30, 2016, non-interest income was $2,181,000 compared to $2,280,000 for the same period of 2015, a $99,000 (4.3%) decrease. The decrease in non-interest income for the first six months of 2016 as compared to 2015 was primarily attributable to a decrease in the fair value of mortgage servicing rights.
For the quarter ended June 30, 2016, non-interest expenses were $4,361,000, compared to $4,316,000 for the second quarter of 2015, a $45,000 (1.1%) increase. For the six month period ended June 30, 2016, non-interest expenses totaled $8,917,000, compared to $8,943,000 for the comparable period of 2015, a decrease of $26,000 (0.3%). The decrease in non-interest expenses for the six month period ended June 30, 2016 was primarily attributed to decreases in premises and equipment expense, data processing expense, FDIC assessment, consultant fees, Ohio financial institutions tax 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 $618.1 million at June 30, 2016, compared to $608.7 million at December 31, 2015, an increase of $9.4 million (1.5%). The increase in total assets was primarily the result of increases of $6.0 million (1.7%) in loans and leases, $1,944,000 (1.1%) in available-for-sale securities and $815,000 (15.7%) in other assets. Deposits during this same period decreased $6.5 million, or 1.2%.
Shareholders’ equity increased from $71.6 million at December 31, 2015 to $75.3 million at June 30, 2016. This increase was the result of net income of $2,643,000, dividends paid of $726,000, $216,000 from the repurchase of 12,901 shares, $7,000 from the issuance of 307 treasury shares under the Corporation’s Employee Stock Purchase Plan, and a $2,063,000 increase in unrealized securities gains, net of tax. The increase in unrealized securities gains during the six month period ended June 30, 2016 was the result of customary and expected changes in the bond market.
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
June 30, 2016
Shareholders, Customers, and Fellow Team Members:
I am proud to inform you that, as a direct result of the ongoing efforts of the Company’s dedicated team members in implementing our Strategic Plan, your Company reported positive results for the first half of 2016. Those positive results include income before taxes of $3.4 million, return on average assets of .86%, and return on average equity of 7.21%. Your Company’s shares closed the quarter at $17.80 per share, which is a 15% increase over a year ago.
I am also pleased to report that after a review of your Company’s earnings, capital position, risk profile and strategic plan, your Board of Directors declared a $.11 per share cash dividend, payable to shareholders on September 15, 2016. This cash dividend represents a 22% increase compared to the same period last year.
We continue to make investments in technology to create internal efficiencies, reduce fraud, and enhance customer tools and resources. Such efforts have yielded positive results in our customers’ use of technology-based products. We believe that effectively implementing technology will remain not only vital for attracting and retaining new customers, reducing fraud, and controlling our core operations costs, but also for providing the best possible support for our growing business footprint.
I continue to believe that a solid, established, and financially strong community bank is essential to the success of our communities; just as strong communities are critical to the success of your Company. That belief, and the desire to serve our neighbors, has led your company and its team members to provide quality, honest financial guidance, serve on local boards, and make financial contributions that promote health, education, and economic development. These strong corporate values of respect for our shareholders, customers, colleagues, and communities lay the foundation for the continued success of your Company.
Thank you for your 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, 2016 | Six months ended June 30, 2015 | ||
(dollars in thousands, except per share data) | ||||
CONDENSED STATEMENT OF INCOME | ||||
Interest income | $ 10,548 | $ 11,381 | ||
Interest expense | 1,071 | 1,082 | ||
Net interest income | 9,477 | 10,299 | ||
Provision (credit) for loan and lease losses | (700) | 100 | ||
Net interest income after provision (credit) for loan and | ||||
lease losses | 10,177 | 10,199 | ||
Non-interest income | 2,181 | 2,280 | ||
Non-interest expenses | 8,917 | 8,943 | ||
Income before income taxes | 3,441 | 3,536 | ||
Provision for income taxes | 798 | 511 | ||
Net income | $ 2,643 | $ 3,025 | ||
Average common shares outstanding | 3,299,064 | 3,354,839 | ||
PER COMMON SHARE | ||||
Net income | $ 0.80 | $ 0.90 | ||
Book value | $22.85 | $20.80 | ||
Tangible book value | $19.54 | $17.48 | ||
Closing price | $17.80 | $15.48 | ||
FINANCIAL RATIOS | ||||
Return on average assets | 0.86% | 0.94% | ||
Return on average equity | 7.21% | 8.85% | ||
Net interest margin | 3.51% | 3.64% | ||
Efficiency ratio | 74.50% | 69.13% | ||
Loans to deposits | 70.27% | 68.17% | ||
Allowance for loan and lease losses to loans | 0.94% | 1.00% | ||
PERIOD END BALANCES | ||||
As of June 30, 2016 | As of June 30, 2015 | |||
Assets | $618,053 | $628,548 | ||
Loans and leases, gross | $359,773 | $357,869 | ||
Deposits | $511,961 | $519,626 | ||
Shareholders' equity | $ 75,332 | $ 69,251 | ||
Common shares outstanding | 3,296,745 | 3,328,817 |
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
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