United Bancshares, Inc. Announces Approval of Regulatory Applications and Restatement of 2002 Net Earnings.
COLUMBUS GROVE, Ohio--(BUSINESS WIRE)--March 4, 2003
United Bancshares, Inc. (Nasdaq:UBOH), a bank holding company headquartered in Columbus Grove, Ohio with consolidated assets of $425 million, today announced a restatement of previously released 2002 net earnings and the approval of regulatory applications for the merger of two of its wholly owned subsidiaries, The Bank of Leipsic Company and Citizens Bank of Delphos, with and into another wholly owned subsidiary, The Union Bank Company and the acquisition by The Union Bank Company of three banking offices currently operated by The RFC Banking Company.
Subsequent to the earnings press release issued on February 10, 2003, net earnings for 2002 were revised downward to reflect the impact of a $631,000 income tax provision ($0.17 per share) relating to the recapture of a tax bad debt reserve for federal income tax purposes. The tax bad debt reserve relates to Citizens Bank of Delphos, which operated as a thrift institution prior to its acquisition by United in 2001. Certain events require recapture of the tax bad debt reserve, including reaching an asset level of $500 million or more. Due to the aforementioned acquisition of RFCBC banking offices, the Company's consolidated assets are expected to exceed $500 million in the near future and generally accepted accounting principles require that the Company recognize the tax impact of the tax bad debt recapture in 2002.
The Company's revised 2002 net earnings are $6,366,000 or $1.77 per share, compared to $3,254,000, or $0.96 per share in 2001. Net earnings for 2002 include $3,807,000 ($1.06 per share) resulting from the cumulative effect of a change in accounting principles.
Excluding the impact of the change in accounting principle and charge to income related to the recapture of the tax bad debt reserve: return on average assets for 2002 was 0.78%, compared to 0.89% in 2001; return on average shareholders' equity was 8.0% in 2002 compared to 10.3% in 2001; non-interest income for 2002 was $3.1 million compared to $2.8 million for 2001; non-interest expenses were $11.1 million for 2002 compared to $9.5 million for 2001.
The Company also announced the receipts of certificates of approval from Federal Deposit Insurance Corporation and the Ohio Division of Financial Institutions for the merger of two of its wholly owned subsidiaries, The Bank of Leipsic Company and Citizens Bank of Delphos with and into another wholly owned subsidiary, The Union Bank Company and the acquisition by The Union Bank Company of three banking offices currently operated by The RFC Banking Company. At this time the Company withdrew its regulatory application for the establishment of a branch in Bowling Green, Ohio. Additionally, the Company is making known the availability of its January 14, 2003 application submissions to the Ohio Division of Financial Institutions as part of an Application for Authorization to Establish a Banking Office, an Interagency Bank Merger Application and an Application for Authorization to Establish a Banking Office through the acquisition of an office of another financial institution. The applications include various pro forma and projected financial statements associated with the transactions and may be obtained through a written request to the Ohio Division of Financial Institutions at 77 South High Street, Columbus, Ohio 43215.
United Bancshares, Inc. is the parent company of The Union Bank Company, The Bank of Leipsic Company, The Citizens Bank of Delphos, and Bancservices United, Inc.
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 2001 Form 10-K.
For more information, visit www.theubank.com or contact Brian Young at 419-659-2141.
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|Date:||Mar 4, 2003|
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