1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended MARCH 31, 2001
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from N/A N/A
----------------------------
Commission File Number: 0-16540
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UNITED BANCORP, INC.
--------------------
(Exact name of registrant as specified in its charter.)
OHIO 34-1405357
---- ----------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
201 SOUTH 4TH STREET, MARTINS FERRY, OHIO 43935-0010
----------------------------------------------------
(Address of principal executive offices) (Zip Code)
(740) 633-0445
--------------
(Registrant's telephone number, including area code)
NOT APPLICABLE
--------------
(Former name, former address and former fiscal year, if changed since
last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
--- ---
Indicate the number of shares outstanding of the issuer's classes of
common stock as of the latest practicable date.
COMMON STOCK, $1.00 PAR VALUE 3,034,176 SHARES AS OF APRIL 26, 2001
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UNITED BANCORP, INC.
TABLE OF CONTENTS
FORM 10-Q
PART I FINANCIAL INFORMATION (UNAUDITED)
ITEM 1. Financial Statements
Condensed Consolidated Balance Sheets.............................................3
Condensed Consolidated Statements of Income.......................................4
Condensed Consolidated Statements of Shareholders' Equity.........................5
Condensed Consolidated Statements of Cash Flows...................................6
Notes to the Condensed Consolidated Financial Statements.....................7 - 12
ITEM 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations...................................................13 - 20
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk............21 - 22
PART II OTHER INFORMATION
ITEM 1.
Legal Proceedings................................................................23
ITEM 2.
Changes in Securities and Use of Proceeds........................................23
ITEM 3.
Default Upon Senior Securities...................................................23
ITEM 4.
Submission of Matters to a Vote of Security Holders..............................23
ITEM 5.
Other Information................................................................23
ITEM 6.
Exhibits and Reports on Form 8-K.................................................23
SIGNATURES.........................................................................24
2
3
UNITED BANCORP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
PART I FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
MARCH 31, DECEMBER 31,
2001 2000
------------- -------------
ASSETS
Cash and due from Financial Institutions $ 7,368,947 $ 10,694,118
Securities available for sale 117,106,380 94,438,970
Securities held to maturity
(Estimated fair value of $9,965,493 at 03/30/01 and $10,946,251 at 12/31/00) 9,585,976 10,802,213
Loans receivable
Commercial loans 19,325,385 20,414,810
Commercial real estate loans 63,717,393 64,811,940
Real estate loans 55,489,205 55,931,621
Installment loans 53,299,216 55,338,861
------------- -------------
Total loans receivable 191,831,199 196,497,232
Allowance for loan losses (2,857,058) (2,790,133)
------------- -------------
Net loans receivable 188,974,141 193,707,099
Premises and equipment, net 9,630,112 9,521,046
Accrued interest receivable and other assets 4,394,122 4,722,355
------------- -------------
Total Assets $ 337,059,678 $ 323,885,801
============= =============
LIABILITIES
Demand deposits
Noninterest-bearing $ 21,267,883 $ 22,708,636
Interest-bearing 43,071,205 45,470,957
Savings deposits 48,667,504 49,158,941
Time deposits - under $100,000 121,530,176 120,797,039
Time deposits - $100,000 and over 32,743,254 29,417,302
------------- -------------
Total deposits 267,280,022 267,552,875
Securities sold under agreements to repurchase 9,561,416 4,861,430
Other borrowed funds 28,822,648 21,247,616
Accrued expenses and other liabilities 1,460,102 1,544,793
------------- -------------
Total Liabilities 307,124,189 295,206,714
SHAREHOLDERS' EQUITY
Common stock - $1 Par Value: 10,000,000 shares authorized;
3,094,882 issued 3,094,882 3,094,882
Additional paid in capital 21,755,335 21,699,632
Treasury stock - 60,706 shares in 2001and 28,499 shares in 2000 at cost (630,675) (283,564)
Shares held by deferred compensation plan - 30,985 shares at cost
in 2001 and 26,364 in 2000 (467,141) (411,438)
Retained earnings 6,062,849 5,852,284
Accumulated other comprehensive income(loss), net of tax 120,239 (1,272,709)
------------- -------------
Total Shareholders' Equity 29,935,489 28,679,087
------------- -------------
Total Liabilities and Shareholders' Equity $ 337,059,678 $ 323,885,801
============= =============
See accompanying notes to the consolidated financial statements 3
4
UNITED BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31,
2001 2000
---------- ----------
Interest and dividend income
Loans, including fees $4,337,784 $4,007,268
Taxable securities 1,521,706 1,237,833
Non-taxable securities 268,618 264,199
Other interest and dividend income 75,743 84,044
---------- ----------
Total interest and dividend income 6,203,851 5,593,345
Interest expense
Deposits
Demand 279,198 225,646
Savings 231,082 279,062
Time 2,330,829 1,824,836
Other borrowings 484,106 422,829
---------- ----------
Total interest expense 3,325,216 2,752,373
Net interest income 2,878,635 2,840,972
Provision for loan losses 195,000 115,500
---------- ----------
Net interest income after provision for loan losses 2,683,635 2,725,472
Noninterest income
Service charges on deposit accounts 212,131 172,649
Other income 155,984 151,929
---------- ----------
Total noninterest income 368,115 324,578
Noninterest expense
Salaries and employee benefits 1,141,572 1,132,095
Occupancy and equipment 369,025 349,250
Other expenses 749,211 808,333
---------- ----------
Total noninterest expense 2,259,809 2,289,678
Income before income taxes 791,942 760,372
Income tax expense 186,609 184,050
---------- ----------
Net income $ 605,333 $ 576,322
========== ==========
Earnings per common share - Basic $ 0.20 $ 0.19
Earnings per common share - Diluted $ 0.20 $ 0.19
Dividends per common share $ 0.13 $ 0.12
See accompanying notes to the consolidated financial statements 4
5
UNITED BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(UNAUDITED)
TREASURY
ADDITIONAL STOCK AND
COMMON PAID IN DEFERRED RETAINED
STOCK CAPITAL PLAN EARNINGS
------------------ ------------------- ------------------- ------------------
BALANCE AT JANUARY 1, 2000 $ 2,942,885 $ 19,660,205 $ - $ 6,542,711
Net income 576,322
Net change in unrealized gain/(loss) on
securities available for sale
Comprehensive income
Recognition of shares held by deferred
compensation plan 350,692 (350,692)
Cash dividends - $0.12 per share (382,575)
------------------ ------------------- ------------------- ------------------
BALANCE AT MARCH 31, 2000 $ 2,942,885 $ 20,010,897 $ (350,692) $ 6,736,458
================== =================== =================== ==================
BALANCE AT JANUARY 1, 2001 $ 3,094,882 $ 21,699,632 $ (695,002) $ 5,852,284
Net income 605,333
Net change in unrealized gain/(loss) on
securities available for sale
Comprehensive income
Shares purchased for deferred compensation plan 55,703 (55,703)
Purchases of treasury stock - 32,207 shares at cost (347,111)
Cash dividends - $0.13 per share (394,768)
------------------ ------------------- ------------------- ------------------
BALANCE AT MARCH 31, 2001 $ 3,094,882 $ 21,755,335 $ (1,097,816) $ 6,062,849
================== =================== =================== ==================
ACCUMULATED
OTHER
COMPREHENSIVE COMPREHENSIVE
INCOME INCOME TOTAL
------------------ ----------------- -------------------
BALANCE AT JANUARY 1, 2000 $ (3,847,828) $ 25,297,973
Net income $ 576,322 576,322
Net change in unrealized gain/(loss) on
securities available for sale 203,359 203,359 203,359
Comprehensive income $ 779,681
==================
Recognition of shares held by deferred
compensation plan
Cash dividends - $0.12 per share (382,575)
----------------- -------------------
BALANCE AT MARCH 31, 2000 $ (3,644,469) $ 25,695,079
================= ===================
BALANCE AT JANUARY 1, 2001 $ (1,272,709) $ 28,679,087
Net income $ 605,333 605,333
Net change in unrealized gain/(loss) on
securities available for sale 1,392,948 1,392,948 1,392,948
------------------
Comprehensive income $ 1,998,281
==================
Shares purchased for deferred compensation plan
Purchases of treasury stock - 32,207 shares at cost (347,111)
Cash dividends - $0.13 per share (394,768)
----------------- -------------------
BALANCE AT MARCH 31, 2001 $ 120,239 $ 29,935,489
================= ===================
See accompanying notes to the consolidated financial statements 5
6
UNITED BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS CASH FLOWS
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31,
2001 2000
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 605,333 $ 576,322
Adjustments to reconcile net income to net cash
from operating activities
Depreciation and amortization 238,375 209,606
Provision for loan losses 195,000 115,500
Deferred taxes 27,475 (17,240)
Federal Home Loan Bank stock dividend (62,700) (23,200)
Net realized gains on sales or calls of securities (24,214) (19,534)
(Accretion)/amortization of securities, net (8,540) 3,564
Net realized gains on sales of loans (7,424) (2,595)
Amortization of mortgage servicing rights 13,680 11,561
Net changes in accrued interest receivable and other assets (314,814) (448,002)
Net changes in accrued expenses and other liabilities (199,888) (306,581)
------------ ------------
Net cash from operating activities 462,283 99,401
CASH FLOWS FROM INVESTING ACTIVITIES
Securities available for sale
Sales 3,773,516 17,367
Maturities, prepayments and calls 6,483,358 217,363
Purchases (30,724,719)
Securities held to maturity
Maturities, prepayments and calls 1,500,000
Purchases (277,305)
Net change in loans 4,537,958 (4,207,338)
Net purchases of premises and equipment (340,549) (689,004)
------------ ------------
Net cash from investing activities (15,047,741) (4,661,612)
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in deposits (272,853) 16,043,204
Net change in short-term borrowings 12,430,358 (14,577,338)
Principal payments on long-term debt (155,340) (162,665)
Treasury stock purchases (347,111)
Cash dividends paid (394,768) (382,575)
------------ ------------
Net cash from financing activities 11,260,287 920,626
------------ ------------
Net change in cash and cash equivalents (3,325,171) (3,641,585)
Cash and cash equivalents at beginning of year 10,694,118 11,876,955
------------ ------------
Cash and cash equivalents at end of period $ 7,368,947 $ 8,235,370
============ ============
Interest paid $ 3,323,910 $ 2,715,292
Income taxes paid 179,470
See accompanying notes to the consolidated financial statements 6
7
UNITED BANCORP, INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These interim condensed consolidated financial statements are
prepared without audit and reflect all adjustments which, in the
opinion of management, are necessary to present fairly the financial
position of United Bancorp, Inc. ("Company") at March 31, 2001, and its
results of operations and cash flows for the periods presented. All
such adjustments are normal and recurring in nature. The accompanying
condensed consolidated financial statements have been prepared in
accordance with the instructions of Form 10-Q and, therefore, do not
purport to contain all the necessary financial disclosures required by
generally accepted accounting principles that might otherwise be
necessary in the circumstances and should be read in conjunction with
the consolidated financial statements, and related notes thereto, of
the Company for the year ended December 31, 2000 included in its annual
report. Reference is made to the accounting policies of the Company
described in the notes to the consolidated financial statements
contained in its 2000 Annual Report to Shareholders. The Company has
consistently followed these policies in preparing this Form 10-Q.
PRINCIPLES OF CONSOLIDATION:
The condensed consolidated financial statements include the
accounts of the Company and its wholly-owned subsidiaries, ("Banks")
The Citizens Savings Bank, Martins Ferry, Ohio ("CITIZENS") and The
Community Bank, Lancaster, Ohio ("COMMUNITY"). All significant
intercompany transactions and balances have been eliminated in
consolidation.
NATURE OF OPERATIONS:
The Company's revenues, operating income and assets are
primarily from the banking industry. Accordingly, all of the Company's
banking operations are considered by Management to be aggregated in one
reportable segment. Loan customers are mainly located in Athens,
Belmont, Carroll, Fairfield, Harrison, Hocking, Jefferson, and
Tuscarawas Counties and the surrounding localities in northeastern,
eastern, southeastern, and central Ohio and include a wide range of
individuals, business and other organizations. A major portion of loans
are secured by various forms of collateral including real estate,
business assets, consumer property and other items. Commercial loans
are expected to be repaid from cash flows of the business. CITIZENS
conducts its business through its main office in Martins Ferry, Ohio
and nine branches in Bridgeport, Colerain, Dellroy, Dover, Jewett, New
Philadelphia, St. Clairsville, Sherrodsville, and Strasburg, Ohio.
COMMUNITY conducts its business through its main office in Lancaster
and six branches in Lancaster, Glouster, Nelsonville and Amesville,
Ohio. The Company's primary deposit products are checking, savings, and
term certificate accounts, and its primary lending products are
residential mortgage, commercial, and installment loans. Substantially
all loans are secured by specific items of collateral including
business assets, consumer assets, and real estate. Commercial loans are
expected to be repaid from cash flow from operations of businesses.
Real Estate loans are secured by both residential and commercial real
estate. Other financial instruments which potentially represent
concentrations of credit risk include deposit accounts in other
financial institutions.
7
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UNITED BANCORP, INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
USE OF ESTIMATES:
To prepare financial statements in conformity with generally
accepted accounting principles, management makes estimates and
assumptions based on available information. These estimates and
assumptions affect the amounts reported in the financial statements and
the disclosures provided and future results could differ. The allowance
for loan losses, fair values of financial instruments and status of
contingencies are particularly subject to change.
INCOME TAXES:
Income tax expense is based on the effective tax rate expected
to be applicable for the entire year. Income tax expense is the total
of the current year income tax due or refundable and the change in
deferred tax assets and liabilities. Deferred tax assets and
liabilities are the expected future tax consequences of temporary
differences between the carrying amounts and tax bases of assets and
liabilities computed using enacted tax rates. A valuation allowance, if
needed, reduces deferred tax assets to the amount expected to be
realized.
EARNINGS AND DIVIDENDS PER SHARE:
Basic earnings per common share ("EPS") is net income divided
by the weighted-average number of shares outstanding during the period.
Diluted EPS includes the dilutive effect of additional potential common
shares issuable under stock options. Earnings and dividends per share
are restated for all stock dividends through the date of issuance of
the financial statements.
COMPREHENSIVE INCOME:
Comprehensive income consists of net income and other
comprehensive income. Other comprehensive income includes unrealized
gains and losses on securities available for sale which is also
recognized as a separate component of equity. Other comprehensive
income components net of related taxes are as follows:
THREE MONTHS ENDED
MARCH 31,
2001 2000
--------------------------- -------------------------
Other comprehensive income:
Unrealized holding gains on available
for sale securities arising during period 2,134,783 329,960
Reclassification adjustment for gains
later recognized in income (24,214) (19,534)
--------------------------- -------------------------
2,110,569 310,426
Tax effect (717,621) (107,067)
--------------------------- -------------------------
Other comprehensive income $ 1,392,948 $ 203,359
=========================== =========================
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9
UNITED BANCORP, INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
2. SECURITIES:
Securities were as follows:
GROSS GROSS
AMORTIZED UNREALIZED UNREALIZED ESTIMATED
COST GAINS LOSSES FAIR VALUE
------------- ------------- ------------- -------------
AVAILABLE FOR SALE - MARCH 31, 2001
US Agency obligations $ 98,442,426 $ 372,502 $ (613,100) $ 98,201,828
State and Municipal obligations 13,142,068 390,534 13,532,602
Mortgage-backed securities 1,900,685 18,638 1,919,324
Other securities 3,439,700 12,925 3,452,625
------------- ------------- ------------- -------------
$ 116,924,880 $ 794,599 $ (613,100) $ 117,106,380
============= ============= ============= =============
AVAILABLE FOR SALE - DECEMBER 31, 2000
US Agency obligations $ 77,808,200 $ 62,193 $ (2,185,777) $ 75,684,616
State and Municipal obligations 13,247,607 207,123 (20,430) 13,434,300
Mortgage-backed obligations 1,934,599 (4,470) 1,930,129
Other securities 3,377,000 12,925 3,389,925
------------- ------------- ------------- -------------
$ 96,367,406 $ 282,241 $ (2,210,677) $ 94,438,970
============= ============= ============= =============
HELD TO MATURITY - MARCH 31, 2001
US Agency obligations $ 999,697 $ 4,993 $ - $ 1,004,690
State and Municipal obligations 8,586,279 374,758 (234) 8,960,803
------------- ------------- ------------- -------------
$ 9,585,976 $ 379,751 $ (234) $ 9,965,493
============= ============= ============= =============
HELD TO MATURITY - DECEMBER 31, 2000
US Agency obligations $ 2,495,865 $ 2,432 $ (13,077) $ 2,485,220
State and Municipal obligations 8,306,348 194,353 (39,669) 8,461,031
------------- ------------- ------------- -------------
$ 10,802,213 $ 196,785 $ (52,746) $ 10,946,251
============= ============= ============= =============
Sales of securities available for sale were as follows:
THREE MONTHS ENDED
MARCH 31,
2001 2000
--------------- ---------------
Proceeds $ 3,773,516 $ 17,367
Gross gains 24,214 19,534
Gross losses
9
10
UNITED BANCORP, INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
2. SECURITIES: (CONTINUED)
Contractual maturities of securities at March 31, 2001 were as
follows:
AVAILABLE FOR SALE AMORTIZED ESTIMATED
COST FAIR VALUE
--------------- ---------------
US Agency obligations
Under 1 Year $ 1,000,000 $ 1,007,190
1 - 5 Years 2,249,872 2,253,668
5 - 10 Years 39,988,171 40,224,858
Over 10 Years 55,204,383 54,716,112
--------------- ---------------
Total 98,442,426 98,201,828
--------------- ---------------
State and municipal obligations
Under 1 Year 2,846,356 2,885,601
1 - 5 Years 7,744,160 8,007,951
5 - 10 Years 1,264,671 1,312,073
Over 10 Years 1,286,881 1,326,976
--------------- ---------------
Total 13,142,068 13,532,602
--------------- ---------------
Mortgage Backed securities
5 - 10 Years 186,658 188,194
Over 10 Years 1,714,027 1,731,130
--------------- ---------------
Total 1,900,685 1,919,324
--------------- ---------------
Other investments
Equity securities 3,439,700 3,452,625
--------------- ---------------
Total securities available for sale $116,924,880 $117,106,380
=============== ===============
HELD TO MATURITY
US Agency obligations
Over 10 Years 999,697 1,004,690
--------------- ---------------
Total 999,697 1,004,690
--------------- ---------------
State and municipal obligations
1 - 5 Years 2,606,542 2,718,482
5 - 10 Years 4,077,461 4,289,314
Over 10 Years 1,902,276 1,953,007
--------------- ---------------
Total 8,586,279 8,960,803
--------------- ---------------
Total securities held to maturity $ 9,585,976 $ 9,965,493
=============== ===============
Securities with a carrying value of approximately 62,489,812 at March 31, 2001
and $49,414,697 at December 31, 2000 were pledged to secure public deposits,
repurchase agreements and other liabilities as required or permitted by law.
10
11
UNITED BANCORP, INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
3. ALLOWANCE FOR LOAN LOSSES
The activity in the allowance for loan losses was as follows:
THREE MONTHS ENDED
MARCH 31,
2001 2000
----------- -----------
Beginning Balance $ 2,790,133 $ 3,109,821
Provision charged to operating expense 195,000 115,500
Loans charged-off (254,002) (245,101)
Recoveries 125,927 39,589
----------- -----------
Ending Balance $ 2,857,058 $ 3,019,809
=========== ===========
Non-performing loans were as follows:
MARCH 31, DECEMBER 31,
2001 2000
------------------------- -------------------------
Loans past due over 90 days still on accrual $ 88,311 $ 124,000
Nonaccrual Loans 856,950 793,360
Loans considered impaired under the provisions of SFAS No. 114
were not material at March 31, 2001 and December 31, 2000.
Nonperforming loans include all impaired loans and smaller balance
homogeneous loans, such as residential mortgage and consumer loans that
are collectively excluded for impairment.
4. COMMITMENTS, OFF-BALANCE SHEET RISK AND CONTINGENCIES
There are various contingent liabilities not reflected within
the financial statements, including claims and legal actions arising in
the ordinary course of business. In the opinion of management, after
consultation with legal counsel, the ultimate disposition of these
matters is not expected to have a material effect on the Company's
financial condition or results of operations.
Some financial instruments are used in the normal course of
business to meet the financing needs of customers. These financial
instruments include commitments to extend credit, standby letters of
credit and financial guarantees. These involve, to varying degrees,
credit and interest-rate risk in excess of the amounts reported in the
financial statements.
Exposure to credit loss if the other party does not perform is
represented by the contractual amount for commitments to extend credit,
standby letters of credit and financial guarantees written. The same
credit policies are used for commitments and conditional obligations as
are used for loans. The amount of collateral obtained, if deemed
necessary, upon extension of credit is based on management's credit
evaluation. Collateral varies, but may include accounts receivable,
inventory, property, equipment, income-producing commercial properties,
residential real estate and consumer assets. Commitments to extend
credit are agreements to lend to a customer as long as there is no
violation of any condition established in the commitment.
11
12
UNITED BANCORP, INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
4. COMMITMENTS, OFF-BALANCE SHEET RISK AND CONTINGENCIES (CONTINUED)
Commitments generally have fixed expiration dates or other
termination clauses and may require payment of a fee. Since many of the
commitments are expected to expire without being used, total
commitments do not necessarily represent future cash requirements.
Standby letters of credit and financial guarantees written are
conditional commitments to guarantee a customer's performance to a
third party.
A summary of the notional or contractual amounts of financial
instruments with off-balance sheet risk at March 31, 2001 and December
31, 2000 follows:
MARCH 31, DECEMBER 31,
2001 2000
------------------------- -------------------------
Commitments to extend credit $ 17,099,935 $ 16,656,030
Credit card and ready reserve lines 1,216,862 1,256,090
Standby letters of credit 596,000 596,000
At March 31, 2001, and included above, commitments to make
fixed-rate loans totaled $2,443,943 with the interest rates on those
fixed-rate commitments ranging from 7.50% to 10.00%. At December 31,
2000, commitments to make fixed rate loans totaled $2,740,105 with
interest rates on those fixed-rate commitments ranging from 7.50% to
10.00%.
At March 31, 2001 and December 31, 2000, reserves of
$1,179,000 and $1,254,000 were required as deposits with the Federal
Reserve or as cash on hand. These reserves do not earn interest.
5. EARNINGS PER SHARE
The factors used in the earnings per share computation were as
follows:
THREE MONTHS ENDED
MARCH 31,
2001 2000
------------------- -------------------
BASIC
Net income $ 605,333 $ 576,322
=================== ===================
Weighted average common shares outstanding 3,019,568 3,090,029
=================== ===================
Basic earnings per common share $ 0.20 $ 0.19
=================== ===================
DILUTED
Net income $ 605,333 $ 576,322
=================== ===================
Weighted average common shares outstanding for
basic earnings per common share 3,019,568 3,090,029
Add: Dilutive effects of assumed exercised of stock
options 767 2,373
------------------- -------------------
Average shares and dilutive potential common shares 3,020,335 3,092,402
=================== ===================
Average shares and dilutive potential common shares $ 0.20 $ 0.19
=================== ===================
Stock options for 20,743 and 19,101 shares were not considered in
computing diluted earnings per common share for 2001 and 2000 because
they were antidilutive.
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13
UNITED BANCORP, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The following discusses the financial condition of the Company
as of March 31, 2001, as compared to December 31, 2000 and the results
of operations for the three months ended March 31, 2001 compared to the
same periods in 2000. This discussion should be read in conjunction
with the interim condensed consolidated financial statements and
related footnotes included herein.
FORWARD-LOOKING STATEMENTS
When used in this document, the words or phrases "will likely
result," "are expected to," "will continue," " is anticipated,"
"estimated," "projected" or similar expressions are intended to
identify "forward looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements are subject
to certain risks and uncertainties including changes in economic
conditions in the Banks' market areas, changes in policies by
regulatory agencies, fluctuations in interest rates, demand for loans
in the Banks' market areas and competition, that could cause actual
results to differ materially from historical earnings and those
presently anticipated or projected. Factors listed above could affect
the Company's financial performance and could cause the Company's
actual results for future periods to differ materially from any
statements expressed with respect to future periods.
The Company does not undertake, and specifically disclaims any
obligation, to publicly revise any forward-looking statements to
reflect events or circumstances after the date such statements were
made or to reflect the occurrence of anticipated or unanticipated
events.
13
14
UNITED BANCORP, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following brief history of the Company and its subsidiary
growth and development highlights the continuing commitment to
maintaining a presence as a local "Hometown" community bank serving
several diverse market areas.
>> 1902 Original banking charter granted for The
German Savings Bank (later changed to The
Citizens Savings Bank).
>> 1974 Construction of a full-service branch
banking facility 6 miles west in Colerain,
Ohio.
>> 1978 Construction of a full-service branch
banking facility 2 miles south in
Bridgeport, Ohio.
>> 1980 Construction of a limited-service
auto-teller banking location in Martins
Ferry, Ohio.
>> 1983 Creation of United Bancorp, Inc. as a
single-bank holding company through
acquisition of 100% of the voting stock of
The Citizens Savings Bank of Martins Ferry,
Ohio ("CITIZENS"). Also, began operation of
Automated Teller Machine ("ATM") in
Aetnaville, Ohio.
>> 1984 CITIZENS opened a newly constructed 21,500
square foot main-office facility in Martins
Ferry, Ohio, adjacent to the auto-teller
facility built in 1980.
>> 1986 United Bancorp, Inc. became a multi-bank
holding company through the acquisition of
100% of the voting stock of The
Citizens-State Bank of Strasburg, Strasburg,
Ohio, merged into CITIZENS in 1999.
>> 1990 CITIZENS converted from third-party data
processing to in-house data processing.
CITIZENS constructed a full-service branch
bank 6 miles south of Strasburg in Dover,
Ohio.
>> 1992 CITIZENS acquired two branch bank locations
in New Philadelphia and Sherrodsville, Ohio.
>> 1993 CITIZENS relocated Data Processing,
Accounting and Bookkeeping to a renovated
Operations Center across from the main
office in Martins Ferry, Ohio.
>> 1994 CITIZENS purchased a branch bank in
Dellroy, Ohio.
>> 1996 CITIZENS converted to check imaging and
optical character recognition for data
processing.
>> 1997 CITIZENS opened a full-service Retail
Banking Center inside Riesbeck's Food
Markets, Inc.'s St. Clairsville, Ohio store.
Additionally, CITIZENS introduced a
Secondary Market Real Estate Mortgage
Program available for all locations and
introduced a MasterCard(R)Check Card to the
local market area.
>> 1998 CITIZENS increased ATM network by four cash
dispenser machines in various Riesbecks'
Food Markets.
>> 1998 Effective July 7, 1998, the acquisition of
Southern Ohio Community Bancorporation, Inc.
was completed and The Community Bank,
Glouster, Ohio ("COMMUNITY") was added as a
separate banking charter to the Company.
>> 1999 January 28, 1999 CITIZENS acquired a full
service banking facility in Jewett, Ohio
>> 1999 March 1999 COMMUNITY opened a Loan
Production Office in Lancaster, Ohio.
>> 1999 CITIZENS established a full service
brokerage division to be known as Brokerage
United with securities provided through
Raymond James Financial Services, Inc.,
member NASD/SIPC.
>> 1999 COMMUNITY moved their main office to
Lancaster, Ohio.
>> 2000 COMMUNITY opened a new branch in Lancaster
and their auto teller for the main office.
>> 2000 CITIZENS and COMMUNITY introduced Electronic
Banking.
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15
UNITED BANCORP, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
ANALYSIS OF FINANCIAL CONDITION
EARNING ASSETS - LOANS
At March 31, 2001, gross loans were $191,831,000 compared to
$196,497,000 at year-end 2000, a decrease of 2.4%. The decrease in
total outstanding loans was the result of decreases in all loan
categories with particular decreases in the commercial and installment
portfolios. COMMUNITY'S outstanding loans decreased .92% or
approximately $447,000 from December 31, 2000. CITIZENS' also
experienced a decrease in gross loans by 2.86% or $4.2 million.
Installment loans were 27.8% of total loans at March 31, 2001
compared to 28.2% at year-end 2000. The indirect lending type of
financing carries somewhat more risk than real estate lending, however,
it also provides for higher yields. The targeted lending areas
encompass four metropolitan areas, minimizing the risk to changes in
economic conditions in the communities housing the Company's 17 branch
locations. CITIZENS actually experienced a 3.3% or $1,105,000 decline
in installment loans while COMMUNITY installment loans decreased
$935,000 or 4.3% since December 31, 2000. Commercial loans also
decreased $2.2 million or 2.6% from December 31, 2000.
Commercial and commercial real estate loans comprised 43.3% of
total loans at March 31, 2001 compared to 43.4% at December 31, 2000.
Commercial and commercial real estate loans have decreased $2.2 million
or 2.6% from December 31, 2000. CITIZENS commercial portfolio decreased
by $2.4 million while COMMUNITY's commercial loans increased $174,000
from December 31, 2000. The Company has originated and purchased
participations in loans from other banks for out-of-area commercial and
commercial real estate loans to benefit from consistent economic growth
outside the Company's primary market area. The majority of these loans
are secured by real estate holdings comprised of hotels, motels and
churches located in various geographic locations, including Columbus
and the Akron-Canton, Ohio metropolitan areas. Out-of-area loans at
March 31, 2001 were 7.3% of total loans and 16.8% of total commercial
and commercial real estate loans compared to 6.9% and 16.0% at year-end
2000.
Real estate loans were 28.9% of total loans at March 31, 2001
compared to 28.4% at year-end 2000. Real estate loans decreased .79%
since December 31, 2000. CITIZENS real estate loans decreased 2.4% or
$1.4 million while COMMUNITY's increased $320,000, or 4.9%. The Company
offers both an adjustable rate and fixed rate product. Adjustable rate
products typically have lower introductory rates as compared to that of
a fixed rate mortgage. The Company primarily sells its fixed rate
mortgages on the secondary market and retains the adjustable rate
mortgages for the portfolio.
The allowance for loan losses represents the amount which
management and the Board of Directors estimates is adequate to provide
for probable losses inherent in the loan portfolio. The allowance
balance and the provision charged to expense are reviewed by management
and the Board of Directors monthly using a risk grading model that
considers borrowers past due experience, current financial condition,
collateral value and various other circumstances that are
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16
UNITED BANCORP, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
subject to change over time. Management believes the current balance of
the allowance for loan losses is adequate to absorb probable incurred
credit losses associated with the loan portfolio. Net charge-offs for
the three months ended March 31, 2001 were approximately $128,000, or
4.6% of the beginning balance in the allowance for loan losses compared
to $206,000, or 6.6%, of the beginning balance for loan losses for the
three months ended March 31, 2000. The decrease can be attributed to
Management's continued focus on improving underwriting standards.
EARNING ASSETS - SECURITIES AND FEDERAL FUNDS SOLD
The securities portfolio is comprised of U.S. Government
agency-backed securities, tax-exempt obligations of states and
political subdivisions and certain other investments. The Company does
not hold any collateralized mortgage-backed securities, other than
those issued by U.S. government agencies, or derivative securities. The
quality rating of obligations of state and political subdivisions
within Ohio is no less than Aaa, Aa or A, with all out-of-state bonds
rated at AAA. Board policy permits the purchase of certain non-rated
bonds of local schools, townships and municipalities, based on their
estimated levels of credit risk. Securities available for sale at March
31, 2001 increased approximately $22,667,000, or 24.0% from year-end
2000 totals. This increase is a result of the slower loan growth and
management's leveraging through Federal Home Loan Bank borrowings.
Securities held to maturity at March 31, 2001 decreased approximately
$1,216,000, or 11.3% compared to year-end 2000 totals.
Short-term federal funds sold are used to manage interest rate
sensitivity and to meet liquidity needs of the Company. At March 31,
2001, the Company had no federal funds sold.
SOURCES OF FUNDS - DEPOSITS
The Company's primary source of funds is core deposits from
retail and business customers. These core deposits include all
categories of interest-bearing and noninterest-bearing deposits,
excluding certificates of deposit greater than $100,000. For the period
ended March 31, 2001, total core deposits decreased approximately $3.6
million primarily from a decrease of demand deposits totaling $3.8
million. This was partly offset by an increase in time deposits under
$100,000 of $733,000.
The Company has a strong deposit base from public agencies,
including local school districts, city and township municipalities,
public works facilities and others that may tend to be more seasonal in
nature resulting from the receipt and disbursement of state and federal
grants. These entities have maintained fairly static balances with the
Company due to various funding and disbursement timeframes.
Certificates of deposit greater than $100,000 are not
considered part of core deposits and as such are used to balance rate
sensitivity as a tool of funds management. At March 31, 2001,
certificates of deposit greater than $100,000 increased approximately
$3.3 million, or 11.3% from year-end 2000 totals.
SOURCES OF FUNDS - SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND
OTHER BORROWINGS
Other interest-bearing liabilities include securities sold
under agreements to repurchase, sweep accounts, federal funds
purchased, Treasury, Tax & Loan notes payable and Federal Home Loan
Bank ("FHLB") advances. In the first three months of 2001, the Company
16
17
UNITED BANCORP, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
continued to utilize the FHLB programs to manage interest rate risk
and liquidity positions. The majority of the Company's repurchase
agreements are with local school districts and city and county
governments. Total other borrowings increased approximately $12.3
million, or 47.0% from year-end 2000 totals. Most of this increase was
immediately invested in available for sale securities.
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2001
NET INCOME
Basic earnings per share for the three months ended March 31,
2001 was $0.20, compared with $0.19 for the three months ended March
31, 2000. Net income increased $29,000 for the three months ended March
31, 2001, compared to the same period in 2000. On an annualized basis,
Return on Average Assets (ROA) was 0.73% and Return on Average Equity
(ROE) was 8.24% compared to ROA of .77% and ROE of 9.26% for the three
months ended March 31, 2000.
NET INTEREST INCOME
Net interest income, by definition, is the difference between
interest income generated on interest-earning assets and the interest
expense incurred on interest-bearing liabilities. Various factors
contribute to changes in net interest income, including volumes,
interest rates and the composition or mix of interest-earning assets in
relation to interest-bearing liabilities. Net interest income increased
1.3% for the three months ended March 31, 2001 compared to the same
period in 2000.
Total interest income for the three months ended March 31,
2001 was $6,204,000 compared to $5,593,000 for the same period in 2000.
Total interest income increased $611,000, or 10.9%. The increase can be
attributed to the overall growth in the Company's interest-earning
assets, and the increase in the interest rate environment during the
year 2000.
Total interest expense for the three months ended March 31,
2001 when compared to the same three months period ended March 31,
2000, increased 20.8%, or $573,000. The Company has experienced an
increase in interest expense due to the overall increase of rates on
all deposit products in the year 2000 and also in remaining competitive
in the market.
PROVISION FOR LOAN LOSSES
The provision for loan losses is an operating expense recorded
to maintain the related balance sheet allowance for loan losses at an
amount considered adequate to cover probable losses associated with the
loan portfolio.
The total provision for loan losses was $195,000 for the three
months ended March 31, 2001 compared to $116,000 for the same period in
2000. Management increased the provision in 2001 due to the loan growth
experienced by COMMUNITY in the year 2000.
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18
UNITED BANCORP, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
NONINTEREST INCOME
Total noninterest income is made up of bank related fees and
service charges, as well as other income producing services provided,
sale of secondary market loans, ATM income, early redemption penalties
for certificates of deposits, safe deposit rental income and other
miscellaneous items. Noninterest income for the three months ended
March 31, 2001 was $368,000 compared to $325,000 for the same
three-month period ended March 31, 2000. For the three months ended
March 31, 2001 compared to the same period in 2000, noninterest income
increased approximately 13.4%. The expanded customer base as a result
of the COMMUNITY expansion and management's focus on updating our fee
structures contributed to the increase.
NONINTEREST EXPENSE
Noninterest expense for the three months ended March 31, 2001
decreased 1.3% over the three months ended March 31, 2000. Expansion
costs were incurred in the first quarter of 2000 related to COMMUNITY'S
opening of a new headquarters, an adjacent limited service drive-thru,
and a full service banking center in Lancaster, Ohio. Also, additional
staffing, advertising and occupancy expenses were added to the
COMMUNITY'S cost structure as a result of this expansion.
CAPITAL RESOURCES
Internal capital growth, through the retention of earnings, is
the primary means of maintaining capital adequacy for the Company.
Shareholders' equity at March 31, 2001 was $29,935,000 compared to
$28,679,000 at December 31, 2000, a 4.4% increase. Total shareholders'
equity in relation to total assets was 8.88% at March 31, 2001 and
8.85% at December 31, 2000.
The Company has a Dividend Reinvestment Plan ("The Plan") for
shareholders under which the Company's common stock will be purchased
by the Plan for participants with automatically reinvested dividends.
The Plan does not represent a change in the Company's dividend policy
or a guarantee of future dividends.
The Company maintains a deferred compensation plan for its
Directors. The plan permits the Directors to defer into a Rabbi Trust
all or a portion of their director fees. The plan is being accounted
for under the provisions of EITF 97-14.
The Company and Banks are subject to regulatory capital
requirements administered by federal banking agencies. Capital adequacy
guidelines and prompt corrective action regulations involve
quantitative measures of assets, liabilities and certain off-balance
sheet items calculated under regulatory accounting practices. Capital
amounts and classifications are also subject to qualitative judgments
by regulators about components, risk weightings and other factors and
the regulators can lower classifications in certain cases. Failure to
meet various capital requirements can initiate regulatory action that
could have a direct material effect on the Banks' operations.
The prompt corrective action regulations provide five
classifications, including well capitalized, adequately capitalized,
undercapitalized, significantly undercapitalized and critically
undercapitalized, although these terms are not used to represent
overall financial condition. If
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19
UNITED BANCORP, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
adequately capitalized, regulatory approval is required to accept
brokered deposits. If undercapitalized, capital distributions are
limited, as is asset growth and expansion and plans for capital
restoration are required.
The minimum requirements are:
TOTAL TIER 1 TIER 1
CAPITAL TO CAPITAL TO CAPITAL TO
RISK-WEIGHTED RISK-WEIGHTED AVERAGE
ASSETS ASSETS ASSETS
--------------------- ---------------------- -------------------
Well capitalized 10.00% 6.00% 5.00%
Adequately capitalized 8.00% 4.00% 4.00%
Undercapitalized 6.00% 3.00% 3.00%
The following table illustrates the Company's risk-weighted
capital ratios at March 31, 2001:
CAPITAL RESOURCES
MARCH 31,
(IN THOUSANDS) 2001
---------------------
Tier 1 capital $ 29,929
Total risk-based capital $ 32,572
Risk-weighted assets $ 237,708
Average total assets $ 331,333
Tier 1 capital to average assets 9.03%
Tier 1 risk-based capital ratio 12.59%
Total risk-based capital ratio 13.70%
LIQUIDITY
Management's objective in managing liquidity is maintaining
the ability to continue meeting the cash flow needs of its customers,
such as borrowings or deposit withdrawals, as well as its own financial
commitments. The principal sources of liquidity are net income, loan
payments, maturing securities and sales of securities available for
sale, federal funds sold and cash and deposits with banks. Along with
its liquid assets, the Company has additional sources of liquidity
available to ensure that adequate funds are available as needed. These
include, but are not limited to, the purchase of federal funds, the
ability to borrow funds under line of credit agreements with
correspondent banks and a borrowing agreement with the Federal Home
Loan Bank of Cincinnati, Ohio and the adjustment of interest rates to
obtain depositors. Management feels that it has the capital adequacy,
profitability and reputation to meet the current and projected needs of
its customers.
For the three months ended March 31, 2001, the adjustments to
reconcile net income to net cash from operating activities consisted
mainly of depreciation and amortization of premises and equipment and
intangibles, the provision for loan losses, net amortization of
securities and net changes in other assets and liabilities. The net
decrease in cash and cash equivalents of
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20
UNITED BANCORP, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
$3,325,000 was primarily the result of investment security purchases of
$31,002,000 and an decrease in deposits of $273,000, offset by cash
provided in financing activities of $11,260,000 related to an increase
in short term borrowings and the decrease in loan volume. Also, cash
was provided by the sales, maturities and paydowns of securities. For a
more detailed illustration of sources and uses of cash, refer to the
condensed consolidated statements of cash flows.
INFLATION
Substantially all of the Company's assets and liabilities
relate to banking activities and are monetary in nature. The
consolidated financial statements and related financial data are
presented in accordance with Generally Accepted Accounting Principles
(GAAP). GAAP currently requires the Company to measure the financial
position and results of operations in terms of historical dollars, with
the exception of securities available for sale, impaired loans and
other real estate loans that are measured at fair value. Changes in the
value of money due to rising inflation can cause purchasing power loss.
Management's opinion is that movements in interest rates
affects the financial condition and results of operations to a greater
degree than changes in the rate of inflation. It should be noted that
interest rates and inflation do effect each other, but do not always
move in correlation with each other. The Company's ability to match the
interest sensitivity of its financial assets to the interest
sensitivity of its liabilities in its asset/liability management may
tend to minimize the effect of changes in interest rates on the
Company's performance.
REGULATORY MATTERS
The Company is subject to the regulatory requirements of The
Federal Reserve System as a multi-bank holding company. The affiliate
banks are subject to regulations of the Federal Deposit Insurance
Corporation (FDIC) and the State of Ohio, Division of Financial
Institutions.
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21
UNITED BANCORP, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The principal market risk affecting the Company is interest rate risk.
The Banks do not maintain a trading account for any class of financial
instrument and the Company is not affected by foreign currency exchange rate
risk or commodity price risk. Because the Banks do not hold any equity
securities other than stock in the Federal Home Loan Bank of Cincinnati, which
is not significant, the Company is not subject to equity price risk.
The Company and its Banks, like other financial institutions, are
subject to interest rate risk to the extent that its interest-earning assets
reprice differently than its interest-bearing liabilities. One of the principal
financial objectives is to achieve long-term profitability while reducing its
exposure to fluctuations in interest rates. The Company has sought to reduce
exposure of its earnings to changes in market interest rates by managing assets
and liability maturities and interest rates primarily by originating
variable-rate lending products, or if issued with a fixed interest rate, as is
the case with the indirect automobile portfolio, the term is rather short in
duration. Both the variable interests rates inherent in the commercial,
commercial real estate and real estate loan portfolios, and the short duration
loan products, mitigate the Company's exposure to dramatic interest rate
movements.
The Company's securities are all fixed rate and are weighted more
heavily towards available for sale which accounts for 92% of the portfolio
compared to the 8% for held to maturity securities. The Company primarily
invests in US Agency obligations and State and Municipal obligations and has a
modest amount invested in mortgage-backed securities. Due to total securities
approximating 38% of total assets and a significant portion of its loan
portfolio consisting of fixed rate loans, the Company is particularly sensitive
to periods of rising interest rates. In such periods, the Company's net interest
spread is negatively affected because the interest rate paid on deposits
increases faster than the rates earned on loans. Management is continuing to
originate variable rate mortgage loans as the primary means to manage this risk.
In addition, the Company also originates consumer and commercial loans, which
make up a significant percentage of the overall loan portfolio. Consumer loans
typically have a significantly shorter weighted-average maturity and offer less
exposure to interest rate risks while commercial loans generally carry variable
interest rates.
Management measures the Company's interest rate risk by computing
estimated changes in net interest income and the net portfolio value ("NPV") of
its cash flows from assets, liabilities and off-balance sheet items in the event
of a range of assumed changes in market interest rates. Presented in the
Company's 2000 Annual Report as of December 31, 2000, is an analysis of the
Company's interest rate risk as measured by changes in NPV for instantaneous and
sustained parallel shifts of 100 basis points in market interest rates.
Management believes that no events have occurred since December 31, 2000 which
would significantly change the Company's NPV at March 31, 2001 under each
assumed shifts of 100 basis points in market interest rates.
The Company's NPV is more sensitive to increasing rates than decreasing
rates. Such difference in sensitivity occurs principally because, as rates rise,
the effect is offset on a short-term basis by the rather fixed nature of our
consumer loans and investment securities. This occurs even though the
commercial, commercial real estate and real estate portfolios are comprised of
variable rate products. Also in a rising rate environment consumers tend not to
prepay fixed rate loans as quickly as they would
21
22
UNITED BANCORP, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
have had rates not changed dramatically. Moreover, the interest the Company pays
on its deposits would increase because deposits generally have shorter periods
to reprice.
Certain shortcomings are inherent in the NPV method of analysis.
Certain assets such as adjustable-rate loans have features that restrict changes
in interest rates on a short-term basis and over the life of the asset. In
addition, the proportion of adjustable-rate loans in the Company's portfolio
could decrease in future periods if market interest rates remain at or decrease
below current levels due to refinancing activity. Further, in the event of a
change in interest rates, prepayment and early withdrawal levels would likely
deviate from those assumed in the analysis. Finally, the ability of many
borrowers to repay their adjustable-rate debt may decrease in the case of an
increase in interest rates.
22
23
UNITED BANCORP, INC.
PART II - OTHER INFORMATION
FORM 10-Q
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Not applicable.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
Not applicable.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable.
ITEM 5. OTHER INFORMATION
Not applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
(b) The registrant filed no current reports on Form 8-K
during the quarter ended March 31, 2001.
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24
UNITED BANCORP, INC.
SIGNATURES
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
May 11, 2001 By: /s/ James W. Everson
- ---------------------- -----------------------------
Date James W. Everson
Chairman, President & Chief Executive Officer
May 11, 2001 By: /s/ Randall M. Greenwood
- ---------------------- -----------------------------
Date Randall M. Greenwood
Chief Financial Officer
24