UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
(Mark One)
( X ) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2003
or
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______ to _______
Commission file number 000-29283
UNITED BANCSHARES, INC.
(Exact name of Registrant as specified in its charter)
Ohio
(State or other jurisdiction of incorporation or organization)
100 S. High Street, Columbus Grove, Ohio
(Address of principal executive offices)
34-1516518
(I.R.S. Employer Identification Number)
45830
(Zip Code)
(419) 659-2141
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes X
No ________
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act) Yes No X
Indicate the number of shares outstanding of each of the issuer’s classes of Common Stock, as of August 1, 2003: 3,651,084.
UNITED BANCSHARES, INC.
Table of Contents
Part I – Financial Information
Item 1 – Financial Statements
Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of operations
Item 3 – Quantitative and Qualitative Discussion about Market Risk
Item 4 – Controls and Procedures
Part II – Other Information
PART 1 - FINANCIAL INFORMATION | ||||
ITEM 1 | ||||
United Bancshares, Inc. and Subsidiaries | ||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||
(Dollars in thousands) | ||||
June 30, | December 31, | |||
2003 | 2002 | |||
ASSETS | ||||
CASH AND CASH EQUIVALENTS | ||||
Cash and due from banks | $ 11,658 | $ 9,652 | ||
Interest-bearing deposits in other banks | 4,384 | 1,168 | ||
Federal funds sold | 1,440 | 5,914 | ||
Total cash and cash equivalents | 17,482 | 16,734 | ||
SECURITIES, available-for-sale | 158,400 | 151,080 | ||
FEDERAL HOME LOAN BANK STOCK, at cost | 3,974 | 3,897 | ||
LOANS HELD FOR SALE | 2,382 | 2,084 | ||
LOANS | 291,443 | 241,471 | ||
Allowance for loan losses | (2,697) | (2,784) | ||
Net loans | 288,746 | 238,687 | ||
PREMISES AND EQUIPMENT, net | 7,495 | 6,314 | ||
GOODWILL | 8,972 | - | ||
OTHER ASSETS, including accrued interest receivable | ||||
and other intangible assets | 9,187 | 6,201 | ||
TOTAL ASSETS | $ 496,638 ========= | $ 424,997 ========= | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
LIABILITIES | ||||
Deposits | ||||
Non-interest bearing | $ 32,009 | $ 22,524 | ||
Interest bearing | 351,235 | 301,133 | ||
Total deposits | 383,244 | 323,657 | ||
Federal Home Loan Bank borrowings | 56,567 | 55,956 | ||
Trust preferred securities | 10,000 | - | ||
Accrued expenses and other liabilities | 3,693 | 4,426 | ||
Total liabilities | 453,504 | 384,039 | ||
SHAREHOLDERS' EQUITY | ||||
Common stock, $1 stated value, 4,750,000 shares | ||||
authorized, 3,739,148 shares issued as of June 30, 2003 | ||||
and 3,718,277 shares issued as of December 31, 2002 | 3,739 | 3,718 | ||
Surplus | 14,454 | 14,374 | ||
Retained earnings | 23,787 | 22,612 | ||
Accumulated other comprehensive income: Unrealized | ||||
gain on available-for-sale securities, net of tax | 2,397 | 1,497 | ||
Treasury stock, 88,064 shares at cost | (1,243) | (1,243) | ||
Total shareholders' equity | 43,134 | 40,958 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 496,638 ========= | $ 424,997 ========== | ||
See notes to consolidated financial statements | ||||
United Bancshares, Inc. and Subsidiaries | ||||||
Consolidated Statements of Shareholder's Equity (Unaudited) | ||||||
Six months ending June 30, 2003 and 2002 | ||||||
(Dollars in thousands) | ||||||
Common | Capital | Retained | Accum other | Treasury | ||
Stock | Surplus | Earnings | Comp Inc. | Stock | Total | |
BALANCE AT DECEMBER 31, 2002 | $ 3,718 | 14,374 | 22,612 | 1,497 | (1,243) | $ 40,958 |
Net income | 1,976 | 1,976 | ||||
Change in unrealized gain on securities, net of tax | 900 | 900 | ||||
Total comprehensive income | 2,876 | |||||
Dividends declared ($0.22 per share) | (801) | (801) | ||||
Exercise of stock options for 20,871 shares | 21 | 80 |
|
|
| 101 |
BALANCE AT JUNE 30, 2003 | $ 3,739 ========== | 14,454 ========== | 23,787 ========== | 2,397 ========== | (1,243) ========== | $ 43,134 ========== |
Common | Capital | Retained | Accum other | Treaury | ||
Stock | Surplus | Earnings | Comp Inc. | Stock | Total | |
BALANCE AT DECEMBER 31, 2001 | $ 3,682 | 14,232 | 17,832 | 169 | (1,243) | $ 34,672 |
Net income | 5,038 | 5,038 | ||||
Change in unrealized gain on securities, net of tax | 577 | 577 | ||||
Total comprehensive income | 5,615 | |||||
Dividends declared ($0.22 per share) | (790) | (790) | ||||
Exercise of stock options for 1,000 shares | 1 | 4 |
|
|
| 5 |
BALANCE AT JUNE 30, 2002 | $ 3,683 ========== | 14,236 =========== | 22,080 ========== | 746 ========== | (1,243) =========== | $ 39,502 ========== |
See notes to consolidated financial statements | ||||||
United Bancshares, Inc. and Subsidiaries | ||||||||||
Condensed Consolidated Statements of Income (Unaudited) | ||||||||||
(Dollars in thousands, except per share data) | ||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||
2003 | 2002 | 2003 | 2002 | |||||||
INTEREST INCOME | ||||||||||
Loans, including fees | $ 4,982 | $ 4,307 | $ 9,163 | $ 8,652 | ||||||
Securities: |
| |||||||||
Taxable | 1,060 | 1,642 | 2,413 | 2,741 | ||||||
Tax-exempt | ||||||||||