[UNITED BANCORP, INC. LOGO] EXHIBIT 99
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P. O. BOX 10 - MARTINS FERRY, OHIO 43935 - Phone: 740/633-BANK Fax:740/633-1448
We are United to Better Serve You
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PRESS RELEASE
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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. 120 (740) 633-0445 Ext. 181
ceo@unitedbancorp.com cfo@unitedbancorp.com
FOR IMMEDIATE RELEASE: 3:30 PM July 22, 2004
SUBJECT: UNITED BANCORP, INC. REPORTS AN EARNINGS PER SHARE INCREASE OF 6% FOR
THE SIX-MONTHS ENDED JUNE 30, 2004.
MARTINS FERRY, OHIO --- United Bancorp, Inc. (NASDAQ: UBCP), headquartered in
Martins Ferry, Ohio reported earnings of $1,731,000 compared to $1,630,000 for
the six-months ended June 30, 2004 and 2003, respectively. On a per share basis,
basic earnings per share were $0.50 for the six-months ended June 30, 2004
compared to $0.47 for the same period in 2003, an increase of 6%. Second quarter
earnings were $0.25 per share compared to $0.24 in 2003, an increase of 4%.
Earnings per share data for the 2003 quarter gives effect to the 10% share
dividend paid in December 2003.
Randall M. Greenwood, Senior Vice President, CFO and Treasurer, of UBCP
remarked, "Six-month earnings generated an annualized 0.90% return on average
assets ("ROA") and an annualized 10.6% return on average equity ("ROE") compared
to 0.89% ROA and 10.1% ROE for the same period in 2003". Greenwood also
indicated that United Bancorp, Inc's 2004 six-month earnings have benefited from
the steady growth of loans along with continued reduction in interest expense
and noninterest expenses. With the current interest rate environment, the
Company has experienced a slow-down in the fixed rate residential mortgage
activity, resulting in a decrease in net realized gains on the sale of loans of
$66,000 from six-months ended June 30 2004, to same period in 2003. The
Company's realized gains from the sale of securities totaled $95,000 for the
six-months ended June 30, 2004 compared to $282,000 for the six-months ended
June 30, 2003, a decrease of $187,000. This decrease was more than offset by the
decrease in noninterest expense of $276,000 and the increase in income from
service charges of $109,000, both of which contributed to the core earnings
increase for the six months ended June 30, 2004.
James W. Everson, Chairman, President & CEO, stated, "Our increase in
consolidated earnings performance is attributed to the continuing growth in
earnings at our Community Bank affiliate, which has been previously forecast.
Community contributed $298,806 to UBCP's net income for the six months ended
June 30, 2004. Compared to the six-months ended June 30, 2003, Community's net
income increased $306,068 for the six-months. The increase in net income at
Community was the main reason for UBCP's 6% increase in earnings per share for
the six months ended June 30, 2004." Everson concluded by stating, "we continue
to view 2004 as another year of positive growth in earnings for UBCP."
United Bancorp, Inc. is headquartered in Martins Ferry, Ohio and is a multi-bank
holding company with total assets of approximately $393 million and total
shareholders' equity of approximately $31 million as of June 30, 2004.
Affiliates of UBCP include The Citizens Savings Bank and The Community Bank with
seventeen banking offices, and an Operations Center located in Ohio serving
Athens, Belmont, Carroll, Fairfield, Harrison, Hocking, Jefferson and Tuscarawas
Counties. The Company trades on The Nasdaq SmallCap Market tier of the Nasdaq
Stock Market under the symbol UBCP, Cusip #909911109.
UNITED BANCORP, INC. MARTINS FERRY, OH
UBCP
FOR THE THREE MONTHS ENDED JUNE 30, %
2004 2003 CHANGE
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EARNINGS
Total interest income $ 5,096,483 $ 5,080,243 0.32%
Total interest expense 1,862,511 1,954,017 -4.68%
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Net interest income 3,233,972 3,126,226 3.45%
Provision for loan losses 199,500 150,000 33.00%
Service charges on deposit accounts 330,636 278,206 18.85%
Net realized (losses)/gains of sales on securities (15,272) 79,952 -119.10%
Net realized gains on sale of loans 13,019 54,395 -76.07%
Other noninterest income 205,013 267,874 -23.47%
Total noninterest expense 2,438,167 2,568,125 -5.06%
Income tax expense 254,705 261,300 -2.52%
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Net income 874,996 827,228 5.77%
PER SHARE
Earnings per common share - Basic $ 0.25 $ 0.24 4.17%
Earnings per common share - Diluted 0.25 0.24 4.17%
Cash Dividends paid 0.13 0.12 8.33%
SHARES OUTSTANDING
Average - Basic 3,471,118 3,502,538 -----
Average - Diluted 3,480,961 3,516,157 -----
FOR THE SIX MONTHS ENDED JUNE 30, %
2004 2003 CHANGE
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EARNINGS
Total interest income $ 10,123,932 $ 10,294,895 -1.66%
Total interest expense 3,744,605 3,983,333 -5.99%
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Net interest income 6,379,327 6,311,562 1.07%
Provision for loan losses 339,000 300,000 13.00%
Service charges on deposit accounts 635,950 526,493 20.79%
Net realized gains of sales on securities 95,286 281,880 -66.20%
Net realized gains on sale of loans 24,536 90,521 -72.89%
Other noninterest income 428,127 525,762 -18.57%
Total noninterest expense 5,005,653 5,282,036 -5.23%
Income tax expense 487,605 524,429 -7.02%
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Net income $ 1,730,968 $ 1,629,753 6.21%
PER SHARE
Earnings per common share - Basic $ 0.50 $ 0.47 6.38%
Earnings per common share - Diluted 0.50 0.47 6.38%
Cash Dividends paid 0.26 0.24 8.33%
Book value (end of period) 8.86 9.37 -5.45%
SHARES OUTSTANDING
Average - Basic 3,475,777 3,505,407 -----
Average - Diluted 3,487,421 3,519,002 -----
AT QUARTER END
Total assets $ 393,181,704 $ 385,185,229 2.08%
Total assets (average) 384,547,000 366,766,000 4.85%
Other real estate and repossessions 975,029 689,077 41.50%
Total loans 209,646,517 193,860,271 8.14%
Non-performing loans 278,000 592,000 -53.04%
Average loans 204,388,000 189,582,000 7.81%
Securities and other restricted stock 154,495,776 159,357,400 -3.05%
Shareholders' equity 30,750,903 32,854,296 -6.40%
Shareholders' equity (average) 32,686,000 32,312,000 1.16%
STOCK DATA
Market value - last close (end of period) $ 14.12 $ 12.59 12.15%
Dividend payout ratio 52.00% 50.98% 2.00%
Price earnings ratio 14.12 x 13.39 x 5.45%
KEY PERFORMANCE RATIOS
Return on average assets (ROA) 0.90% 0.89% 1.15%
Return on average equity (ROE) 10.59% 10.09% 4.97%
Net interest margin (FTE) 3.70% 3.79% -2.37%
Interest expense to average assets 1.95% 2.17% -10.25%
Total allowance loan losses
to nonperforming loans 1052.21% 519.90% 102.39%
Total allowance loan losses
to total loans 1.40% 1.59% -12.18%
Nonperforming loans to total loans 0.13% 0.31% -56.58%
Nonperforming assets to total assets 0.32% 0.33% -4.18%
Net charge-offs to average loans 0.25% 0.20% 23.48%
Equity to assets at period end 7.82% 8.53% -8.31%
The information contained in this press release contains forward-looking
statements regarding expected future performances which are not historical facts
and which involve risk and uncertainties. Actual results and performance could
differ materially from those contemplated by these forward-looking statements.