United Bancshares Inc 8-K, filed Oct 21, 2021
United Bancshares Inc (UBOH)
About this 8-K
United Bancshares Inc filed this 8-K on October 21, 2021.
Items reported
- Item 2.02: Financial results
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
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(State or other jurisdiction of
incorporation)
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(Commission File No.)
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(IRS Employer Identification Number)
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including area code:
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(
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Title of each class
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Trading Symbol(s)
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Name of Each Exchange
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Exhibit No.
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Description
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99.1
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99.2
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| 104 | 104 Cover Page Interactive Data File |
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United Bancshares, Inc.
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Date: October 21, 2021
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By:
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/s/ Brian D. Young
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Brian D. Young
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President and Chief Executive Officer
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Exhibit 99.1
On October 21, 2021, 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 $1.1 billion today announced operating results for the quarter and nine month period ended September 30, 2021, unaudited.
For the quarter ended September 30, 2021, the Corporation reported net income of $4,092,000, or $1.25 basic earnings per share. This compares to the third quarter of 2020 net income of $5,250,000, or $1.61 basic earnings per share. The decrease in operating results for the third quarter of 2021 as compared to the same period in 2020 was primarily attributable to a decrease in non-interest income of $6,432,000 (57.7%), offset by an increase in net interest income of $1,505,000 (17.9%), a decrease in non-interest expenses of $404,000 (4.0%), a decrease in the provision for loan losses of $3,000,000 (100.0%), and a decrease in the provision for income taxes of $365,000 (30.2%).
Net income for the nine months ended September 30, 2021 totaled $10,863,000, or $3.31 basic earnings per share, compared to $12,006,000, or $3.67 basic earnings per share for the same period in 2020, a decrease of $1,143,000 (9.5%). The decrease in operating results for the nine month period ended September 30, 2021 as compared to the nine month period ended September 30, 2020 was primarily attributable to a decrease in non-interest income of $7,869,000, and an increase in non-interest expenses of $760,000, offset by increases in net interest income of $2,884,000, a decrease in the provision for loan losses of $4,150,000, and a decrease in the provision for income taxes of $452,000.
For the quarter ended September 30, 2021, non-interest income was $4,712,000, compared to $11,144,000 for the third quarter of 2020, a $6,432,000 decrease. The decrease in non-interest income was primarily attributable to decreases in gain on sales of loans of $4,685,000 (55.2%) and a decrease in other non-interest income of $1,742,000. The significant decrease in gain on sale of loans was attributable to a decrease in loan activity by the residential mortgage operations. During the quarter ended September 30, 2021, there were 328 loans sold totaling $90.4 million, compared to 576 loans sold totaling $153.7 million during the same period of 2020. The decrease in other non-interest income was primarily related to a decrease in income from the Corporation’s loan hedging program of $2,029,000.
Non-interest income for the nine months ended September 30, 2021 totaled $14,230,000, compared to $22,099,000 for the same period in 2020, a decrease of $7,869,000 (35.6%). The decrease in non-interest income was primarily attributable to decreases in gain on sales of loans of $5,775,000 (33.9%), a decrease in gain on sales of securities of $295,000, and a decrease in other non-interest income of $1,799,000 (37.7%). The decrease in gain on sale of loans was attributable to a decrease in loan activity, coupled with a decrease in the net gain on sale earned. The net gain on sale, expressed as a percentage of loan balances sold, was 3.76% for the nine months ended September 30, 2021 compared to 4.72% for the same period of 2020.
For the quarter ended September 30, 2021, non-interest expenses were $9,680,000, compared to $10,084,000 for the comparable quarter of 2020, a $404,000 (4.0%) decrease. The significant quarter-over-quarter decreases include salaries and benefits of $751,000 (12.2%) and loan fees of $158,000 (25.3%), offset by increases in equipment service expense of $146,000 (80.4%), data processing expense of $119,000 (25.4%), and miscellaneous losses of $126,000. The decrease in salaries and benefits is primarily related to a reduction in commissions paid based on loan activity by the residential mortgage operations.
Non-interest expenses for the nine months ended September 30, 2021 totaled $27,859,000, compared to $27,099,000 for the same period in 2020, an increase of $760,000 (2.8%). The increase in non-interest expenses was primarily attributable to increases in data processing expense of $367,000 (27.3%), equipment service expense of $350,000 (67.5%), depreciation expense of $180,000 (24.2%), advertising and promotional expense of $134,000 (8.9%), building maintenance projects of $111,000, and Ohio Financial Institutions Tax of $98,000, offset by decreases in salaries and benefits of $469,000 (2.9%) and loan fees of $135,000 (9.1%).
Total assets amounted to $1.1 billion at September 30, 2021, compared to $978.5 million at December 31, 2020, an increase of $91.7 million (9.4%). The increase in total assets was primarily the result of increases of $64.1 million (112.5%) in cash and cash equivalents, and $75.6 million (38.9%) in securities available-for-sale, offset by a $44.5 million (7.1%) decrease in net loans. Deposits during this same period increased $89.4 million (10.7%).
Shareholders’ equity increased from $111.6 million at December 31, 2020 to $116.1 million at September 30, 2021. This increase was primarily the result of net income during the nine month period ended September 30, 2021 of $10,863,000, offset by a decrease in unrealized securities gains, net of tax of $4,254,000 and dividends paid of $1,739,000. The decrease in unrealized securities gains during the nine month period ended September 30, 2021 was attributable to increasing long term treasury yields. Net unrealized gains and losses 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, Franklin, Hancock, Marion, Paulding, 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, Paulding, Pemberville, Plymouth and Westerville 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 2020 Form 10-K.
Exhibit 99.2
United Bancshares, Inc.
Quarterly Report
September 30, 2021
Shareholders, Clients and Team Members:
I am pleased to report on your Company’s continued successes in 2021. Those successes include reporting year-to-date income before taxes of approximately $13.1 million, return on average tangible equity of 17.03% and return on average assets of 1.39%. As compared to the same period last year, tangible common equity increased $6.9 million (8.6%), assets increased $91.7 million (9.4%) and deposits increased $89.4 million (10.7%). In addition, the Board of Directors declared a $0.20 per share dividend, a 25.0% increase as compared to the third quarter of 2020.
The Company’s 2021 financial performance was significantly enhanced as a result of fees received from the Paycheck Protection Program. Starting in the second quarter of this year, the Company began to build its traditional loan balances, while continuing to focus on residential mortgage production. These successes will be significant factors for the Company to continue to increase its core earnings. The continued long-term growth and success of your Company has been and will continue to be our ability to attract and retain the best and brightest team members. We are very excited about those that have chosen to be part of our team. Their passion, expertise, and desire to serve others enables your Company to take advantage of growth opportunities in our current markets and beyond.
While economies, interest rates and the regulatory environment are ever changing, we believe it is our strong corporate values of respect for and accountability to our shareholders, clients, colleagues, and communities that remain the most important component 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 and CEO
United Bancshares, Inc.
and Subsidiaries
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Financial Information (unaudited) |
Nine months ended September 30, 2021 |
Nine months ended September 30, 2020 |
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(dollars in thousands, except per share data) |
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CONDENSED STATEMENT OF INCOME |
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Interest income |
$ | 29,386 | $ | 29,410 | ||||
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Interest expense |
2,394 | 5,302 | ||||||
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Net interest income |
26,992 | 24,108 | ||||||
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Provision for loan losses |
300 | 4,450 | ||||||
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Net interest income after provision for loan losses |
26,692 | 19,658 | ||||||
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Non-interest income |
14,230 | 22,099 | ||||||
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Non-interest expenses |
27,859 | 27,099 | ||||||
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Income before income taxes |
13,063 | 14,658 | ||||||
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Provision for income taxes |
2,200 | 2,652 | ||||||
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Net income |
$ | 10,863 | $ | 12,006 | ||||
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Average common shares outstanding (basic) |
3,277,919 | 3,270,705 | ||||||
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PER COMMON SHARE |
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Net income |
$ | 3.31 | $ | 3.67 | ||||
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Book value |
$ | 35.46 | $ | 33.44 | ||||
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Tangible book value (non-GAAP)* |
$ | 26.56 | $ | 24.49 | ||||
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Closing price |
$ | 29.95 | $ | 21.50 | ||||
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FINANCIAL RATIOS |
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Return on average assets |
1.39 |
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1.66 |
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Return on average tangible equity (non-GAAP)* |
17.03 |
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22.16 |
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Net interest margin, tax equivalent (non-GAAP)* |
3.84 |
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3.72 |
% |
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Efficiency ratio (non-GAAP)* |
66.68 |
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58.10 |
% |
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Loans (including held for sale) to deposits |
63.58 |
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85.70 |
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PERIOD END BALANCES
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As of September 30, 2021 |
As of December 31, 2020 |
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Assets |
$ | 1,070,248 | $ | 978,532 | ||||
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Loans, gross |
$ | 589,925 | $ | 634,103 | ||||
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Deposits |
$ | 927,812 | $ | 838,378 | ||||
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Shareholders' equity |
$ | 116,144 | $ | 111,599 | ||||
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Common shares outstanding |
3,275,430 | 3,271,984 | ||||||
* Some of the financial measures included in this press release are not measures of financial performance recognized by U.S. Generally Accepted Accounting Principles, or GAAP. These non-GAAP financial measures include tangible book value, return on average tangible equity, net interest margin (tax-equivalent), and the efficiency ratio. Management uses these non-GAAP financial measures in its analysis of its performance, and believes financial analysts and investors frequently use these measures, and other similar measures, to evaluate capital adequacy. Reconciliations of non-GAAP disclosures used in this press release to the comparable GAAP measures are provided in the accompanying table. Management, as well as regulators, financial analysts and other investors may use these measures in conjunction with more traditional bank capital ratios to compare the capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets, which typically stem from the use of the purchase accounting method of accounting for mergers and acquisitions.
These non-GAAP financial measures should not be considered in isolation or as a substitute for total shareholders’ equity, total assets, book value per share, return on average assets, return on average equity, or any other measure calculated in accordance with GAAP. Moreover, the manner in which we calculate these non-GAAP financial measures may differ from that of other companies reporting measures with similar names.
United Bancshares, Inc.
and Subsidiaries
Non-GAAP to GAAP Reconciliations and Calculation of Non-GAAP Financial Measures (unaudited)
(dollars and shares in thousands, except per share data)
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Shareholders' Equity to Tangible Equity |
September 30, 2021 |
September 30, 2020 |
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Shareholders' equity |
$ | 116,144 | $ | 109,409 | ||||
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Less goodwill and other intangibles |
29,151 | 29,296 | ||||||
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Tangible common equity |
$ | 86,993 | $ | 80,113 | ||||
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Average Shareholders' equity |
$ | 114,244 | $ | 101,598 | ||||
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Less average goodwill and other intangibles |
29,199 | 29,347 | ||||||
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Average tangible common equity |
$ | 85,045 | $ | 72,251 | ||||
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Tangible Book Value Per Common Share |
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Tangible common equity (a) |
$ | 86,993 | $ | 80,113 | ||||
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Total common shares issued and outstanding (b) |
3,275,430 | 3,271,651 | ||||||
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Tangible book value per common share (a)/(b) |
$ | 26.56 | $ | 24.49 | ||||
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Return on Average Tangible Equity |
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Net income, annualized (c) |
$ | 14,484 | $ | 16,008 | ||||
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Average tangible common equity (d) |
$ | 85,045 | $ | 72,251 | ||||
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Return on average tangible common equity (c/d) |
17.03 |
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22.16 |
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Net Interest Margin, Tax-Equivalent |
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Net interest income, annualized |
$ | 35,989 | $ | 32,144 | ||||
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Tax-equivalent adjustment, annualized |
745 | 579 | ||||||
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Tax-equivalent net interest income, annualized (e) |
$ | 36,734 | $ | 32,723 | ||||
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Average earning assets (f) |
$ | 957,815 | $ | 880,496 | ||||
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Net interest margin, tax-equivalent (e)/(f) |
3.84 |
% |
3.72 |
% |
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Efficiency Ratio, Tax-Equivalent |
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Non-interest expense, annualized (g) |
$ | 37,145 | $ | 36,132 | ||||
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Tax-equivalent net interest income, annualized |
36,734 | 32,723 | ||||||
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Non-interest income, annualized |
18,973 | 29,465 | ||||||
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Total revenue, annualized (h) |
$ | 55,707 | $ | 62,188 | ||||
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Efficiency ratio (g)/(h) |
66.68 |
% |
58.10 |
% |
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UNITED BANCSHARES, INC.
DIRECTORS
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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
THE UNION BANK COMPANY
DIRECTORS
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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 Dr. Jane M. Wood 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.
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