A deliberate expansion beyond ordinary loan growth
In 2026’s second quarter, Ohio’s United Bancshares, Inc. raised $30 million of subordinated debt and transferred $27 million to The Union Bank Company. Management said the bank used that capital to support roughly $250 million of additional investment securities. It also sold about $40 million of securities, recognizing a $3.8 million pretax loss, and reinvested the proceeds at higher yields. The parent described using funding arrangements and derivatives to manage the associated interest-rate exposure. This was an intentional investment strategy. [3]
A community bank with a separate parent
The bank’s origins date to 1904 in Columbus Grove. Its current description places the business across northwest and central Ohio, with full-service locations stretching from towns such as Kalida and Leipsic to Findlay, Lima and Lewis Center. Interactive teller machines extend the service network. United Bancshares, Inc. is its parent; the publicly quoted UBOH shares belong to the holding company rather than constituting a separate class of insured deposits. [4]
The FDIC’s exact institution is The Union Bank Company, certificate 12969, at 101 Progressive Drive in Columbus Grove. It is an active Ohio state-chartered commercial bank with the FDIC as primary federal supervisor. It should not be confused with the differently named Union Savings Bank in Cincinnati. A shared word is not evidence of common ownership or a shared regulatory history. [1]
Credit for businesses and agricultural communities
The Union Bank Company advertises commercial loans and lines of credit, agricultural borrowing and equipment finance. Its business materials connect a revolving line to short-term needs such as inventory, supplies and payroll, while equipment lending supports purchases used over a longer period. Agricultural lending is explicitly part of the proposition because many offices serve farming communities. Availability of a product does not establish how large that category is within the bank’s actual loan book. [5]
For a farm, money spent before harvest and receipts collected afterward arrive on different schedules. A business can face the same problem when wages and suppliers must be paid before invoices are settled. A short-term line bridges that gap; a property or equipment loan finances something expected to remain useful for years. Matching the repayment schedule to the underlying activity is central to whether such borrowing works.
Deposits and payments tie the relationship together
The treasury service includes remote check deposits, electronic collections and payments, wires, bill payment and payment-fraud controls. Businesses can manage additional online users and set account alerts. These functions make the bank part of both sides of cash flow: collecting what a customer is owed and paying what that customer owes. They can deepen a relationship, while also making reliable processing and carefully assigned user permissions important. [6]
Household funding products include statement savings, money-market accounts, fixed-rate certificates and a holiday savings account. The bank also participates in Ohio Homebuyer Plus, with proceeds designated for a down payment or closing costs under the program’s conditions. Certificates can carry early-withdrawal penalties, while savings and money-market rates can change. The advertised menu therefore contains balances with different pricing and expected holding periods, rather than one uniform pool of cash. [7]
What the bank-only accounts show
The June 30, 2026 bank report showed $1.444 billion of assets, $1.192 billion of deposits, $854.5 million of net loans and leases, and $151.4 million of equity. June 2025 assets were $1.195 billion, deposits $1.077 billion and net loans $780.9 million. Securities rose to $427.5 million from $223.8 million, making their expansion a major part of the change in assets. These FDIC amounts cover the insured bank and are converted from thousands. [2]
First-half net income declined to $5.9 million from $6.1 million, while nonaccrual loans fell to $1.0 million from $2.6 million. Real-estate-secured loans reached $746.2 million and commercial-and-industrial loans were $59.9 million. The financial picture is therefore a larger balance sheet and lower reported problem loans, accompanied by slightly lower year-to-date earnings. [2]
Community performance and a historical individual order
The FDIC rated the bank Satisfactory in its February 21, 2023 CRA evaluation, with the same grades for lending and community development. Examiners found a majority of loans inside the assessment areas and reasonable distribution across income groups and business sizes. The review covered performance since March 2020 and concentrated on home mortgages and small-business lending. It is a dated measure of community credit performance, not a current financial-condition grade. [8]
A separate October 24, 2012 FDIC order prohibited institution-affiliated party Sharon E. Piper from participating in banking without the required prior approval. She consented without admitting or denying the cited conduct. The order concerns an individual associated with this bank; it is not a 2026 restriction on the bank’s general operations. The reviewed record does not establish a later modification or termination of that individual order. [9]
The new strategy has to earn its cost
Management’s July release also identified brokered deposits, state programs and a large short-term commercial balance within reported deposit growth. Its description of underlying earnings excluding the securities loss was an estimate, not the actual reported profit. [3]
Borrowing at the parent and adding securities inside a bank creates a different set of obligations from making another local loan. The hoped-for return depends on investment income exceeding funding and hedging costs over time. Derivatives can change how interest-rate movements affect the portfolio, but they do not make every risk disappear. Future results will establish whether the additional scale produces the intended earnings after all associated costs.
Sources
- FDIC identity; October 2, 2026 indexOfficial sourceBack to text: ↑
- FDIC bank financials; June 2026 and 2025; income year-to-dateOfficial sourceBack to text: ↑1↑2
- Parent earnings release, July 22, 2026SourceBack to text: ↑1↑2
- Bank origins and footprint; checked October 6, 2026SourceBack to text: ↑
- Business and agricultural lending; checked October 6, 2026SourceBack to text: ↑
- Business payment services; checked October 6, 2026SourceBack to text: ↑
- Personal funding products; checked October 6, 2026SourceBack to text: ↑
- FDIC CRA evaluation, February 21, 2023Official source · PDFBack to text: ↑
- FDIC individual prohibition order, October 24, 2012Official sourceBack to text: ↑