United Bancshares: Press Release January 20, 2022 – Form 8-K

On January 20, 2022, United Bancshares, Inc. issued the following press 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 its operating results for the three months and year ended December 31, 2021, unaudited.

For the quarter ended December 31, 2021, the Company reported net income of $2,717,000, or basic earnings per share of $0.83. That compares to net income for the fourth quarter of 2020 of $1,749,000, or $0.53 of basic earnings per share. The increase in operating results for the fourth quarter of 2021 compared to the same period in 2020 is mainly due to a decrease in the provision for loan losses of $1,750,000 (100.0%) and a decrease non-interest expense of $1,218,000 (12.1%), offset by lower non-interest income of $1,785,000 (36.4%), lower net interest income of $191,000 (2.1%) and an increase in the income tax provision of $24,000 (8.9%).

Net earnings for the year ended December 31, 2021 totaled $13,581,000, or $4.14 basic earnings per share, compared to $13,755,000, or $4.21 basic earnings per share for the same period in 2020, a decrease of $174,000 (1.3%). The decrease in operating results for the year ended December 31, 2021 compared to the year ended December 31, 2020 is mainly attributable to a decrease in non-interest income of $9,654,000, offset by an increase net interest income of $2,693,000, a decrease in the provision for loan losses of $5,900,000, a decrease in non-interest expense of $459,000 and a decrease in the provision for income taxes profits of $428,000.

For the quarter ended December 31, 2021, non-interest income amounted to $3,117,000 compared to $4,902,000 for the fourth quarter of 2020, a decrease of $1,785,000. The decrease in non-interest income is mainly due to a decrease in gain on sale of loans of $4,896,000 (68.9%), offset by an increase in other non-interest income of $3,121,000 $. The significant decrease in gain on sale of loans is attributable to lower lending activity by the residential mortgages business, as well as a decrease in net gain on sale, expressed as a percentage of loan balances sold. During the quarter ended December 31, 2021, 276 loans were sold for a total of $72.5 million, compared to 532 loans sold for a total of $141.8 million during the same period of 2020. The net gain on sale was 2.90% for the fourth quarter of 2021, compared to 4.92% for the same period of 2020. The increase in other non-interest income is mainly related to an increase in income from the Corporation’s loan hedging program of $3,179,000.

Non-interest income for the year ended December 31, 2021 totaled $17,346,000 compared to $27,000,000 for the same period in 2020, a decrease of $9,654,000 (35.8%) . The decrease in non-interest income is mainly attributable to a decrease in the gain on the sale of loans of $10,670,000 (44.2%) and a decrease in the gain on the sale of securities of $305,000, offset by an increase in other non-interest income of $1,322,000. (51.4%). The lower gain on sale of loans is due to lower lending activity combined with a lower net realized gain on sale. The net gain on sale, expressed as a percentage of loan balances sold, was 3.58% for the year ended December 31, 2021 compared to 4.78% for the same period of 2020.

For the quarter ended December 31, 2021, non-interest expense amounted to $8,847,000 compared to $10,066,000 for the comparable quarter of 2020, a decrease of $1,218,000 (12.1 %). Significant quarter-over-quarter decreases include salaries and benefits of $960,000 (16.1%), borrowing costs of $308,000 (56.6%) and information of $143,000 (67.0%), offset by an increase in amortization expense of $251,000 (88.5%). %).

Non-interest expense for the year ended December 31, 2021 totaled $36,706,000 compared to $37,165,000 for the same period in 2020, a decrease of $459,000 (1.2%). The decrease in non-interest expenses is mainly attributable to the decrease in salaries and benefits of $1,429,000 (6.5%) and borrowing costs of $444,000 (21.8%), offset by increases in data processing costs of $396,000 (22.0%), equipment service costs of $311,000 (38.6%), amortization expense of $431,000 (41.9% ), advertising and promotion expenses of $157,000 (7.6%) and Ohio financial institutions tax of $181,000 (28.5%).

Total assets amounted to $1.1 billion as at December 31, 2021, compared to $978.5 million as at December 31, 2020, an increase of $98.0 million (10.0%). The increase in total assets was primarily due to increases of $18.2 million (31.9%) in cash and cash equivalents and $113.1 million (58.1%) in values available-for-sale securities, offset by a $24.9 million (4.0%) decrease in net loans. Deposits totaled $930.4 million as at December 31, 2021, compared to $838.4 million as at December 31, 2020, an increase of $92.0 million (11.0%).

Equity increased from $111.6 million as of December 31, 2020 to $119.1 million as of December 31, 2021. This increase is primarily the result of net earnings of $13,581,000 during the year. year ended December 31, 2021, offset by a decrease in unrealized securities gains, net of taxes of $3,362,000 and dividends paid of $2,393,000. The decrease in unrealized securities gains during the year ended December 31, 2021 is attributable to the increase in long-term Treasury bill yields. Net unrealized gains and losses on securities are presented in accumulated other comprehensive income in the consolidated balance sheets.

United Bancshares, Inc. is the holding company of The Union Bank Company serving Allen, Delaware, Franklin, Hancock, Marion, Paulding, Putnam, Sandusky, Van Wert, and Wood counties in Ohio, with offices 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 understanding expected future financial performance. However, such performance involves risks 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 bodies, inflation and interest rates. For a further discussion of certain factors that could cause these forward-looking statements to differ materially from actual results, see the 2020 Form 10-K.

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