Exhibit 99
P. O. BOX 10 • MARTINS FERRY, OHIO 43935 • Phone: 740/633-BANK Fax:740/633-1448
We are United to Better Serve You
PRESS RELEASE
United Bancorp, Inc.
201 South 4th at Hickory Street, Martins Ferry, OH 43935
| | | | | |
| Contact: | | James W. Everson | | Randall M. Greenwood |
| | | Chairman, President and CEO | | Senior Vice President, CFO and Treasurer |
| Phone: | | (740) 633-0445 Ext. 6120 | | (740) 633-0445 Ext. 6181 |
| | | ceo@unitedbancorp.com | | cfo@unitedbancorp.com |
FOR IMMEDIATE RELEASE: 3:00 PM July 15, 2009
| | |
| Subject: | | United Bancorp, Inc. Reports Earnings of $0.32 Per Share for the Six Months Ended June 30, 2009 |
MARTINS FERRY, OHIO¨¨¨ United Bancorp, Inc. (NASDAQ: UBCP), headquartered in Martins Ferry, Ohio reported earnings of $1,473,000 for the six months ended June 30, 2009, compared to $1,928,000 for the six months ended June 30, 2008, a decrease of 23.6%. On a per share basis, the Company’s six months diluted earnings were $0.32 for 2009, as compared to $0.42 for 2008, a decrease of 23.8%.
Randall M. Greenwood, Senior Vice President, CFO and Treasurer remarked, “The Company’s six months earnings in 2009 generated an annualized 0.65% return on average assets (“ROA”) and an 8.66% return on average equity (“ROE”), compared to 0.88% ROA and 11.42% ROE for the first six months in 2008. Comparing the six month period ending June 30, 2009 to 2008, the Company’s net interest margin was 4.00% compared to 3.96% and generated an increase of approximately $190,000 in net interest income. Comparing the same periods, Service Charge Income on deposits increased $84,000. On the expense side, the Company’s six months 2009 earnings were affected by a period over period increase of $308,000 in FDIC Insurance Premiums; a $589,000 increase in all other noninterest expenses mostly relating to our expansion into three new banking offices acquired on September 19, 2008 from the FDIC; a $95,000 increase in our Provision for Loan Losses and a $76,000 write down of the Company’s servicing asset for its secondary market fixed rate mortgage program due to the current low interest rate environment and the related accelerating payoff of loan balances. Although the Company’s earnings have decreased, we are confident the 2009 results of operations for the six months will compare very favorably with our peers in the banking industry.”
James W. Everson, Chairman, President and Chief Executive Officer stated, “Our budget process continues to tell us we are going to have a good year in 2009, but not another record year as last year. Now knowing the $225,000 FDIC Special Assessment that was levied on us June 30th, we have down-graded our earnings projections from $0.70 per share to $0.65 per share for 2009. Our projected earnings and our liquidity of over $51.0 million being maintained in lower yielding, short term investments both project positively on meeting loan growth and future shareholder return. With our positive marketing programs, strong capital position, good reserves and great liquidity, along with our expanding number of Citizens Savings Bank Team members, we are out there on a daily basis in the communities we serve through our twenty banking offices, doing what we know best.....making loans and supporting our communities with conservative hometown banking practices. And most importantly, we are doing all this without having received any government “bailout” money!”
United Bancorp, Inc. is headquartered in Martins Ferry, Ohio with total assets of approximately $450.8 million and total shareholder’s equity of approximately $33.6 million as of June 30, 2009. Through its single bank charter with its twenty banking offices and an operations center, The Citizens Savings Bank through its Community Bank Division serves the Ohio Counties of Athens, Fairfield and Hocking and through its Citizens Bank Division serves Belmont, Carroll, Harrison,
Jefferson and Tuscarawas. United Bancorp, Inc. is a part of the Russell Microcap Index and trades on The NASDAQ Capital Market tier of the NASDAQ Stock Market under the symbol UBCP, Cusip #909911109.
Certain statements contained herein are not based on historical facts and are “forward-looking statements” within the meaning of Section 21A of the Securities Exchange Act of 1934. Forward-looking statements, which are based on various assumptions (some of which are beyond the Company’s control), may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of these terms. Actual results could differ materially from those set forth in forward-looking statements, due to a variety of factors, including, but not limited to, those related to the economic environment, particularly in the market areas in which the company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset/liability management, changes in the financial and securities markets, including changes with respect to the market value of our financial assets, and the availability of and costs associated with sources of liquidity. The Company undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.
United Bancorp, Inc. (“UBCP”)
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| | | For the Three Months Ended June 30, | | | % | |
| | | 2009 | | | 2008 | | | Change | |
Earnings | | | | | | | | | | | | |
| Total interest income | | $ | 5,860,498 | | | $ | 6,482,403 | | | | -9.59 | % |
| Total interest expense | | | 2,027,504 | | | | 2,517,175 | | | | -19.45 | % |
| | | | | | | | | | | |
| Net interest income | | | 3,832,994 | | | | 3,965,228 | | | | -3.33 | % |
| Provision for loan losses | | | 333,338 | | | | 395,407 | | | | -15.70 | % |
| Service charges on deposit accounts | | | 574,123 | | | | 510,863 | | | | 12.38 | % |
| Net realized gains of sales on securities | | | 25,469 | | | | — | | | | | |
| Net realized gains on sale of loans | | | 36,707 | | | | 45,138 | | | | 18.68 | % |
| Impairment loss on servicing asset | | | (75,721 | ) | | | — | | | | | |
| Net realized gains on sale of other real estate and repossessions | | | 36,396 | | | | — | | | | | |
| Other noninterest income | | | 216,027 | | | | 202,682 | | | | 6.58 | % |
| Total noninterest income | | | 813,001 | | | | 758,683 | | | | 7.16 | % |
| FDIC Insurance Premium Additional Assessment | | | 225,000 | | | | — | | | | | |
| Noninterest expense (excluding FDIC Additional Assessment) | | | 3,342,390 | | | | 3,002,779 | | | | 11.31 | % |
| Total noninterest expense | | | 3,567,390 | | | | 3,002,779 | | | | 18.80 | % |
| Income tax expense | | | 73,000 | | | | 300,300 | | | | -75.69 | % |
| | | | | | | | | | | |
| Net income | | $ | 672,267 | | | $ | 1,025,425 | | | | -34.44 | % |
| | | | | | | | | | | | | |
Per share | | | | | | | | | | | | |
| Earnings per common share — Basic | | $ | 0.15 | | | $ | 0.22 | | | | -31.82 | % |
| Earnings per common share — Diluted | | | 0.15 | | | | 0.22 | | | | -31.82 | % |
| Cash dividends paid | | | 0.14 | | | | 0.13 | | | | 7.69 | % |
Shares Outstanding | | | | | | | | | | | | |
| Average — Basic | | | 4,610,248 | | | | 4,579,773 | | | | — | |
| Average — Diluted | | | 4,610,248 | | | | 4,579,934 | | | | — | |
| | | | | | | | | | | | | |
| | | For the Six Months Ended June 30, | | | % | |
| | | 2009 | | | 2008 | | | Change | |
Earnings | | | | | | | | | | | | |
| Total interest income | | $ | 11,773,813 | | | $ | 13,142,043 | | | | -10.41 | % |
| Total interest expense | | | 4,100,987 | | | | 5,659,689 | | | | -27.54 | % |
| | | | | | | | | | | |
| Net interest income | | | 7,672,826 | | | | 7,482,354 | | | | 2.55 | % |
| Provision for loan losses | | | 657,842 | | | | 563,342 | | | | 16.77 | % |
| Service charges on deposit accounts | | | 1,086,160 | | | | 1,001,898 | | | | 8.41 | % |
| Net realized gains of sales on securities | | | 25,469 | | | | — | | | | | |
| Net realized gains on sale of loans | | | 49,677 | | | | 58,866 | | | | -15.61 | % |
| Impairment loss on servicing asset | | | (75,721 | ) | | | — | | | | | |
| Net realized gains (losses) on sale of Other real estate and repossessions | | | 78,896 | | | | 3,380 | | | | 2234.20 | % |
| Other noninterest income | | | 437,728 | | | | 449,950 | | | | -2.72 | % |
| Total noninterest income | | | 1,602,209 | | | | 1,514,094 | | | | 5.82 | % |
| FDIC Insurance Premium Additional Assessment | | | 225,000 | | | | — | | | | | |
| Noninterest expense (excluding FDIC Additional Assessment) | | | 6,651,763 | | | | 5,979,544 | | | | 11.24 | % |
| Total noninterest expense | | | 6,876,763 | | | | 5,979,544 | | | | 15.00 | % |
| Income tax expense | | | 267,500 | | | | 525,107 | | | | -49.06 | % |
| | | | | | | | | | | |
| Net income | | $ | 1,472,930 | | | $ | 1,928,455 | | | | -23.62 | % |
| | | | | | | | | | | | | |
Per share | | | | | | | | | | | | |
| Earnings per common share — Basic | | $ | 0.32 | | | $ | 0.42 | | | | -23.81 | % |
| Earnings per common share — Diluted | | | 0.32 | | | | 0.42 | | | | -23.81 | % |
| Cash dividends paid | | | 0.28 | | | | 0.26 | | | | 7.69 | % |
| Book value (end of period) | | | 7.27 | | | | 7.08 | | | | 2.68 | % |
Shares Outstanding | | | | | | | | | | | | |
| Average — Basic | | | 4,606,728 | | | | 4,575,930 | | | | — | |
| Average — Diluted | | | 4,606,728 | | | | 4,576,075 | | | | — | |
At quarter end | | | | | | | | | | | | |
| Total assets | | $ | 450,839,479 | | | $ | 426,987,217 | | | | 5.59 | % |
| Total assets (average) | | | 450,728,000 | | | | 440,795,000 | | | | 2.25 | % |
| Other real estate and repossessions (“OREO”) | | | 988,550 | | | | 500,716 | | | | 97.43 | % |
| Gross loans | | | 239,238,329 | | | | 234,431,991 | | | | 2.05 | % |
| Allowance for loan losses | | | 3,291,139 | | | | 2,870,284 | | | | 14.66 | % |
| Net loans | | | 235,947,190 | | | | 231,561,707 | | | | 1.89 | % |
| Non-accrual loans | | | 6,576,002 | | | | 4,483,000 | | | | 46.69 | % |
| Net loans charged off | | | 137,064 | | | | 140,000 | | | | -2.10 | % |
| Average loans | | | 238,221,000 | | | | 234,265,000 | | | | 1.69 | % |
| Securities and other restricted stock | | | 130,002,300 | | | | 157,913,876 | | | | -17.68 | % |
| Total deposits | | | 344,910,032 | | | | 321,917,163 | | | | 7.14 | % |
| Shareholders’ equity | | | 33,589,757 | | | | 32,469,372 | | | | 3.45 | % |
| Shareholders’ equity (average) | | | 34,011,000 | | | | 33,780,000 | | | | 0.68 | % |
Stock data | | | | | | | | | | | | |
| Market value — last close (end of period) | | $ | 7.90 | | | $ | 9.74 | | | | -18.89 | % |
| Dividend payout ratio | | | 87.50 | % | | | 61.90 | % | | | 25.60 | % |
| Price earnings ratio | | | 12.15 | x | | | 11.60 | x | | | 4.74 | % |
Key performance ratios | | | | | | | | | | | | |
| Return on average assets (ROA) | | | 0.65 | % | | | 0.88 | % | | | -0.23 | % |
| Return on average equity (ROE) | | | 8.66 | % | | | 11.42 | % | | | -2.76 | % |
| Net interest margin (federal tax equivalent)) | | | 4.00 | % | | | 3.96 | % | | | 0.04 | % |
| Interest expense to average assets | | | 1.82 | % | | | 2.57 | % | | | -0.75 | % |
| Total allowance for loan losses to nonaccrual loans | | | 50.05 | % | | | 64.03 | % | | | -13.98 | % |
| Total allowance for loan losses to total loans | | | 1.38 | % | | | 1.22 | % | | | 0.16 | % |
| Nonaccrual loans to total loans | | | 2.75 | % | | | 1.91 | % | | | 0.84 | % |
| Nonaccrual loans and OREO to total assets | | | 1.68 | % | | | 1.17 | % | | | 0.51 | % |
| Net charge-offs to average loans | | | 0.12 | % | | | 0.12 | % | | | — | |
| Equity to assets at period end | | | 7.45 | % | | | 7.60 | % | | | -0.15 | % |
