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): October 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 October 20, 2016, United Bancshares, Inc. issued an earnings release announcing its financial results for the quarter and nine month period ended September 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 October 20, 2016, United Bancshares, Inc. issued an earnings release announcing its financial results for the quarter and nine month period ended September 30, 2016 and that its Board of Directors approved a cash dividend of $0.11 per common share payable December 15, 2016 to shareholders of record at the close of business on November 30, 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 October 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 December 15, 2016 to shareholders of record at the close of business on November 30, 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 October 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: October 20, 2016 | By: /s/ Brian D. Young | |||||
Brian D. Young President and Chief Executive Officer | ||||||
Exhibit 99.1
On October 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 $615.3 million today announced operating results for the quarter and nine month period ended September 30, 2016 and that its Board of Directors approved a cash dividend of $0.11 per common share payable December 15, 2016 to shareholders of record at the close of business on November 30, 2016.
For the quarter ended September 30, 2016, the Corporation reported net income of $1,378,000, or $0.42 basic earnings per share. This compares to the third quarter of 2015 net income of $1,503,000, or $0.45 basic earnings per share. The decrease in operating results for the third quarter of 2016 as compared to the same period in 2015 was primarily attributable to a decrease in net interest income of $298,000 and an increase in non-interest expenses of $140,000 offset by an increase in non-interest income of $246,000 and a decrease in income taxes of $67,000. The decrease in net interest income was largely attributable to roughly $186,000 less loan discount accretion relating to the November 2014 Ohio State Bank (OSB) acquisition.
Net income for the nine months ended September 30, 2016 totaled $4,021,000, or $1.22 basic earnings per share compared to $4,528,000, or $1.35 basic earnings per share for the same period in 2015. Compared with the same period in 2015, net income decreased $507,000, or 11.2%. The decrease in operating results for the nine month period ended September 30, 2016 as compared to the nine month period ended September 30, 2015 was primarily attributable to a decrease in net interest income of $1,121,000 and an increase in income taxes of $220,000 offset by an increase in non-interest income of $148,000, an increase in non-interest expenses of $114,000. The decrease was also attributable to a credit for loan and lease losses of $700,000 in 2016 compared to a $100,000 provision for the same period in 2015. The decrease in net interest income for the nine month period ended September 30, 2016 was largely attributable to roughly $686,000 less loan discount accretion relating to the OSB acquisition. The increase in income taxes, despite a $287,000 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.
The allowance for loan losses as a percentage of total loans decreased to 0.94% at September 30, 2016 compared to 1.00% at September 30, 2015.
For the quarter ended September 30, 2016, non-interest income was $1,289,000, compared to $1,043,000 for the third quarter of 2015, a $246,000 (23.6%) increase. For the nine month period ended September 30, 2016, non-interest income was $3,471,000 compared to $3,323,000 for the same period of 2015, a $148,000 (4.4%) increase. The year to date increase in non-interest income was mainly attributable to a $41,000 increase in gain on sale of loans, a $43,000 increase in gain on sale of securities and increases in other operating income of $64,000.
For the quarter ended September 30, 2016, non-interest expenses were $4,454,000, compared to $4,314,000 for the third quarter of 2015, a $140,000 (3.3%) increase. For the nine month period ended September 30, 2016, non-interest expenses totaled $13,371,000, compared to $13,257,000 for the same period of 2015, an increase of $114,000 (0.9%). The increase in non-interest expenses for the nine month period ended September 30, 2016 was primarily attributed to increases in premises and equipment expense, investment management fees, stationary and printing, legal fees, ATM processing fees, and IT expense offset by decreases in salaries and benefits expense, data processing expense and Ohio financial institutions tax.
Total assets amounted to $615.3 million at September 30, 2016, compared to $608.7 million at December 31, 2015, an increase of $6.6 million (1.1%). The increase in total assets was primarily the result of increases of $9.2 million (5.0%) in available-for-sale securities and $5.3 million (1.5%) in net loans and
leases, offset by a decrease in cash of $6.7 million (29.1%) and a decrease of $1.3 million (24.8%) in other assets. Deposits during this same period decreased $921,000 or 0.2%.
Shareholders’ equity increased from $71.6 million at December 31, 2015 to $75.3 million at September 30, 2016. This increase was the result of net income of $4,021,000, dividends paid of $1,086,000, $633,000 from the repurchase of 33,668 shares, $18,000 from the issuance of 843 treasury shares under the Corporation’s Employee Stock Purchase Plan, and a $1,463,000 increase in unrealized securities gains, net of tax. The increase in unrealized securities gains during the nine month period ended September 30, 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
September 30, 2016
Shareholders, Clients, and Team Members:
In August, I began my fourth year as CEO of United Bancshares, Inc. I continue to be thankful for the privilege to work beside a dedicated Board of Directors and a talented and dedicated team of over 170 outstanding individuals. Thanks to their efforts, I am pleased to report that your Company is having another successful year.
That success includes year to date reported net income in excess of $4.0 million, return on equity of 7.23% and return on assets of .87%. During the past year and a half your team has been repositioning the balance sheet of the acquired institution through systematically allowing volatile deposits and loan run off, while building a robust pipeline throughout our markets. Your management team remains committed to a methodical, logical and consistent growth strategy through building relationships in our communities and reviewing other opportunities as they present themselves. We continue to believe that a measured balance sheet growth strategy reduces overall risk and will drive long-term value for our shareholders.
Additionally, the Board of Directors declared an $0.11 per share dividend, payable on December 15th, 2016 to shareholders of record as of November 30th, 2016. This decision was reached after their review of your Company’s capital position, risk profile, earnings levels, and capital sources available for growth. We understand how important dividends and increased stock value are for many of our shareholders; both of these investment objectives have and will remain important parts of the Company’s consideration as the Board determines capital allocation.
I remain optimistic about the long-term future of your Company. My belief comes not from the ability to forecast when rates will increase or whether the economy will continue to expand, but is firmly placed on the commitment and abilities of my fellow team members. The foundation for continued success for our Company continues to be derived from their outstanding abilities to identify the best growth opportunities, balance risk with return, adapt to rapidly changing technologies and threats, and our shared cultural values of respect and accountability toward our customers, shareholders, colleagues, and communities.
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) | Nine months ended September 30, 2016 | Nine months ended September 30, 2015 | ||
(dollars in thousands, except per share data) | ||||
CONDENSED STATEMENT OF INCOME | ||||
Interest income | $ 16,089 | $ 17,136 | ||
Interest expense | 1,652 | 1,578 | ||
Net interest income | 14,437 | 15,558 | ||
Provision (credit) for loan and lease losses | (700) | 100 | ||
Net interest income after provision (credit) for loan and | ||||
lease losses | 15,137 | 15,458 | ||
Non-interest income | 3,471 | 3,323 | ||
Non-interest expenses | 13,371 | 13,257 | ||
Income before income taxes | 5,237 | 5,524 | ||
Provision for income taxes | 1,216 | 996 | ||
Net income | $ 4,021 | $ 4,528 | ||
Average common shares outstanding | 3,295,307 | 3,346,161 | ||
PER COMMON SHARE | ||||
Net income | $ 1.22 | $ 1.35 | ||
Book value | $23.00 | $21.46 | ||
Tangible book value | $19.68 | $18.15 | ||
Closing price | $19.99 | $15.69 | ||
FINANCIAL RATIOS | ||||
Return on average assets | 0.87% | 0.95% | ||
Return on average equity | 7.23% | 8.74% | ||
Net interest margin | 3.53% | 3.66% | ||
Efficiency ratio | 72.88% | 68.60% | ||
Loans to deposits | 69.39% | 70.10% | ||
Allowance for loan and lease losses to loans | 0.94% | 1.00% | ||
PERIOD END BALANCES | ||||
As of September 30, 2016 | As of September 30, 2015 | |||
Assets | $615,314 | $616,092 | ||
Loans and leases, gross | $359,082 | $359,279 | ||
Deposits | $517,498 | $512,554 | ||
Shareholders' equity | $ 75,344 | $ 71,445 | ||
Common shares outstanding | 3,276,514 | 3,329,129 |
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