United Bancorp Posts Strong Q3 Earnings, Assets Top $866M

TL;DR

**UBCP is a buy; strong deposit growth and rising net income signal a healthy regional bank poised for continued stability.**

AI Summary

UNITED BANCORP INC /OH/ reported a strong financial performance for the nine months ended September 30, 2025, with net income increasing to $5.717 million, up 2.95% from $5.553 million in the same period of 2024. Basic Earnings Per Share also rose to $0.99 from $0.95. Total assets grew by 6.14% to $866.756 million at September 30, 2025, compared to $816.656 million at December 31, 2024. This growth was primarily driven by a significant increase in interest-bearing demand deposits, which surged by 228.9% to $37.619 million from $11.437 million, and a 5.44% increase in available-for-sale securities to $253.726 million. Total deposits also saw a healthy increase of 5.17% to $645.193 million. Net interest income improved by 6.04% to $19.571 million, despite a 3.0% rise in total interest expense to $11.317 million. The provision for credit loss expense for loans increased to $488 thousand from $304 thousand, indicating a more cautious lending outlook. Strategic outlook remains positive with continued growth in deposits and interest-earning assets.

Why It Matters

This filing indicates solid growth for United Bancorp, particularly in its asset base and net income, which is a positive signal for investors seeking stability in regional banking. The increase in deposits and available-for-sale securities suggests a healthy balance sheet and potential for future lending. For employees, continued profitability often translates to job security and potential for growth. Customers benefit from a stable bank, ensuring reliable services and access to credit. In a competitive market, UBCP's consistent performance, especially its deposit growth, demonstrates its ability to attract and retain customers against larger institutions.

Risk Assessment

Risk Level: medium — The provision for credit loss expense for loans increased significantly by 60.5% to $488 thousand for the nine months ended September 30, 2025, compared to $304 thousand in the prior year, suggesting a potential increase in loan default risk. Additionally, while net interest income grew, total interest expense also rose by 3.0% to $11.317 million, indicating potential pressure on profit margins if interest rates continue to climb or deposit costs increase.

Analyst Insight

Investors should consider adding UBCP to their portfolios, given the consistent growth in net income and total assets. Monitor the provision for credit losses closely in future filings, but the overall financial health and deposit growth suggest a resilient regional bank. Look for continued dividend increases, as dividends per share rose to $0.730 from $0.6750.

Financial Highlights

debt To Equity

12.04

revenue

$19.571M

operating Margin

N/A

total Assets

$866.756M

total Debt

$144.407M

net Income

$5.717M

eps

$0.99

gross Margin

N/A

cash Position

$45.652M

revenue Growth

+6.04%

Revenue Breakdown

Key Numbers

• $866.756M — Total Assets (Increased by 6.14% from $816.656 million at December 31, 2024)
• $5.717M — Net Income (Increased by 2.95% for the nine months ended September 30, 2025, from $5.553 million in 2024)
• $19.571M — Net Interest Income (Increased by 6.04% for the nine months ended September 30, 2025, from $18.456 million in 2024)
• $645.193M — Total Deposits (Increased by 5.17% from $613.494 million at December 31, 2024)
• $0.99 — Basic Earnings Per Share (Increased from $0.95 for the nine months ended September 30, 2024)
• $488K — Provision for Credit Loss Expense - Loans (Increased by 60.5% for the nine months ended September 30, 2025, from $304 thousand in 2024)
• $37.619M — Interest-bearing demand deposits (Increased by 228.9% from $11.437 million at December 31, 2024)
• $253.726M — Available-for-sale securities (Increased by 5.44% from $240.631 million at December 31, 2024)
• 5,774,011 — Shares of Common Stock Outstanding (As of November 7, 2025)
• $0.730 — Dividends Per Share (Increased from $0.6750 for the nine months ended September 30, 2024)

Key Players & Entities

• UNITED BANCORP INC /OH/ (company) — Registrant
• Unified Bank of Martins Ferry, Ohio (company) — Wholly-owned subsidiary
• SEC (regulator) — Securities and Exchange Commission
• $866,756 (dollar_amount) — Total assets at September 30, 2025
• $5,717 (dollar_amount) — Net income for nine months ended September 30, 2025
• $19,571 (dollar_amount) — Net Interest Income for nine months ended September 30, 2025
• $645,193 (dollar_amount) — Total deposits at September 30, 2025
• $0.99 (dollar_amount) — Basic Earnings Per Share for nine months ended September 30, 2025
• $488 (dollar_amount) — Provision for credit loss expense - loans for nine months ended September 30, 2025
• NASDAQ Capital Market (regulator) — Exchange where UBCP Common Stock is registered

FAQ

Risk Factors

• Credit Risk and Loan Portfolio Quality [medium — financial]: The provision for credit loss expense for loans increased by 60.5% to $488 thousand for the nine months ended September 30, 2025, from $304 thousand in 2024. This indicates a potential increase in non-performing loans or a more cautious outlook on the creditworthiness of borrowers.
• Interest Rate Sensitivity [medium — market]: While net interest income grew by 6.04% to $19.571 million, total interest expense also rose by 3.0% to $11.317 million. Fluctuations in interest rates can impact the bank's net interest margin and profitability.
• Cybersecurity and Data Breaches [high — operational]: As a financial institution, United Bancorp is susceptible to cyber threats and data breaches, which could lead to financial losses, reputational damage, and regulatory penalties. The company does not explicitly detail its cybersecurity measures in the provided excerpt.
• Regulatory Compliance [medium — regulatory]: The banking industry is heavily regulated. Changes in regulations or failure to comply with existing ones can result in fines, sanctions, and operational restrictions. Specific regulatory changes impacting United Bancorp are not detailed here.

Industry Context

United Bancorp operates within the community banking sector, characterized by a focus on local markets and relationship-based lending. The industry is facing evolving customer expectations for digital services, increasing competition from larger banks and fintech companies, and a dynamic interest rate environment. Deposit growth remains a key focus for community banks to fund lending activities.

Regulatory Implications

As a financial institution, United Bancorp is subject to stringent regulations from bodies like the Federal Reserve and the FDIC. Compliance with capital requirements, lending standards, and consumer protection laws is paramount. The increase in the provision for credit losses may reflect an anticipation of stricter regulatory scrutiny on loan portfolios.

What Investors Should Do

1. Monitor loan portfolio quality and provision for credit losses.
2. Analyze the drivers of deposit growth, particularly interest-bearing demand deposits.
3. Evaluate the impact of interest rate changes on net interest margin.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reporting period for strong net income growth and asset expansion.
• 2024-09-30: Nine months ended September 30, 2024 — Prior year comparison period for financial performance.
• 2025-12-31: As of December 31, 2024 — Prior year-end balance sheet comparison point.
• 2025-11-07: As of November 7, 2025 — Date for reporting outstanding shares of common stock.

Glossary

Available-for-sale securities

Investments that are not classified as held-to-maturity or trading securities. They are reported at fair value, with unrealized gains and losses included in other comprehensive income. (An increase of 5.44% to $253.726 million indicates investment in liquid assets to support operations and potential returns.)

Interest-bearing demand deposits

Deposits that earn interest and can be withdrawn on demand, such as checking accounts with interest. (A significant surge of 228.9% to $37.619 million suggests successful deposit-gathering strategies or a shift in customer preference towards interest-earning checking accounts.)

Provision for credit loss expense

An expense set aside by a financial institution to cover potential losses from loans that may not be repaid. (The increase to $488 thousand indicates a more conservative stance on loan quality or anticipated economic headwinds.)

Net interest income

The difference between the interest income generated by a bank and the interest it pays out to depositors and lenders. (A 6.04% increase to $19.571 million signifies improved profitability from core lending and investment activities.)

Accumulated other comprehensive loss

A component of equity that includes unrealized gains and losses on certain investments and other items not included in net income. (The balance of $(8,586) thousand reflects unrealized losses on available-for-sale securities, impacting total equity.)

Year-Over-Year Comparison

United Bancorp has demonstrated positive momentum compared to the prior year. Total assets have grown by 6.14% to $866.756 million, fueled by a remarkable 228.9% surge in interest-bearing demand deposits. Net income saw a modest increase of 2.95% to $5.717 million, with basic EPS rising to $0.99. Net interest income improved by 6.04%, indicating healthy core operations, though interest expense also climbed. A notable shift is the 60.5% increase in the provision for credit losses, suggesting a more cautious approach to lending.

Key Financial Figures

• $1.00 — ch registered Common Stock, Par Value $1.00 UBCP NASDQ Capital Market Indicat

Filing Documents

• ubcp-20250930x10q.htm (10-Q) — 3827KB
• ubcp-20250930xex31d1.htm (EX-31.1) — 10KB
• ubcp-20250930xex31d2.htm (EX-31.2) — 10KB
• ubcp-20250930xex32d1.htm (EX-32.1) — 6KB
• ubcp-20250930xex32d2.htm (EX-32.2) — 6KB
• 0001104659-25-110121.txt ( ) — 18458KB
• ubcp-20250930.xsd (EX-101.SCH) — 56KB
• ubcp-20250930_cal.xml (EX-101.CAL) — 71KB
• ubcp-20250930_def.xml (EX-101.DEF) — 216KB
• ubcp-20250930_lab.xml (EX-101.LAB) — 464KB
• ubcp-20250930_pre.xml (EX-101.PRE) — 398KB
• ubcp-20250930x10q_htm.xml (XML) — 5887KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1 Condensed Consolidated Balance Sheets 3 Condensed Consolidated Statements of Income 4 Condensed Consolidated Statements of Comprehensive Income 5 Condensed Consolidated Statements of Stockholders' Equity 6 Condensed Consolidated Statements of Cash Flows 7 Notes to Condensed Consolidated Financial Statements 8 Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 34 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 42 Item 4

Controls and Procedures

Controls and Procedures 42

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1

Legal Proceedings

Legal Proceedings 43 Item 1A

Risk Factors

Risk Factors 43 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 43 Item 3 Defaults Upon Senior Securities 43 Item 4 Mine Safety Disclosures 43 Item 5 Other Information 43 Item 6 Exhibits 44

SIGNATURES

SIGNATURES 45 2 Table of Contents

Financial Statements

ITEM 1. Financial Statements United Bancorp, Inc. Condensed Consolidated Balance Sheets (In thousands, except share data) September 30, December 31, 2025 2024 (Unaudited) Assets Cash and due from banks $ 8,033 $ 8,171 Interest-bearing demand deposits 37,619 11,437 Cash and cash equivalents 45,652 19,608 Available-for-sale securities, net of allowance for credit losses of $ 0 at September 30, 2025 and December 31, 2024 253,726 240,631 Loans, net of allowance for credit losses of $ 4,303 and $ 4,026 at September 30, 2025 and December 31, 2024, respectively 492,234 486,945 Premises and equipment 30,171 23,599 Federal Home Loan Bank stock 4,030 4,026 Foreclosed assets held for sale, net 3,276 3,363 Core deposit other intangible asset 10 122 Goodwill 682 682 Accrued interest receivable 3,631 4,322 Deferred federal income tax 4,111 4,011 Bank-owned life insurance 20,155 19,852 Other assets 9,078 9,495 Total assets $ 866,756 $ 816,656 Liabilities and Stockholders' Equity Liabilities Deposits Demand $ 332,843 $ 320,690 Savings 123,220 125,120 Time 189,130 167,684 Total deposits 645,193 613,494 Securities sold under repurchase agreements 45,514 30,494 Subordinated debentures 23,893 23,847 Advances Federal Home Loan Bank 75,000 75,000 Lease liability – finance lease 2,933 2,873 Interest payable and other liabilities 7,753 7,491 Total liabilities 800,286 753,199 Stockholders' Equity Preferred stock, no par value, authorized 2,000,000 shares; no shares issued — — Common stock, $ 1 par value; authorized 10,000,000 shares; issued 6,203,141 shares at September 30, 2025, and 6,203,141 shares at December 31, 2024; outstanding - 5,774,011 and 5,793,611 shares at September 30, 2025 and December 31, 2024, respectively 6,203 6,203 Additional paid-in capital 26,902 26,373 Retained earnings 47,670 46,307 Stock held by

View Full Filing

View this 10-Q filing on SEC EDGAR