Exhibit 99
[UNITED BANCORP, INC. LOGO]
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. 120 (740) 633-0445 Ext. 181
ceo@unitedbancorp.com cfo@unitedbancorp.com
FOR IMMEDIATE RELEASE: 12:00 PM January 25, 2005
SUBJECT: UNITED BANCORP, INC. REPORTS DILUTED EARNINGS PER SHARE OF $0.85 FOR
THE TWELVE MONTHS ENDED DECEMBER 31, 2004 COMPARED TO $0.94 FOR THE
TWELVE MONTHS ENDED DECEMBER 31, 2003
MARTINS FERRY, OHIO --- United Bancorp, Inc. (NASDAQ: UBCP), headquartered in
Martins Ferry, Ohio reported earnings of $3,233,000 compared to $3,639,000 for
the twelve months ended December 31, 2004 and 2003, respectively. On a per share
basis, diluted earnings per share were $0.85 for the twelve months ended
December 31, 2004 compared to $0.94 for the same period in 2003, a decrease of
10%. Fourth quarter earnings, which were negatively impacted by higher pension
costs and the absence of gains on sale of loans and securities, were $0.16 per
share compared to the Company's strongest quarterly performance in history of
$0.29 per share in 2003. Earnings per share data gives effect to the 10% stock
split paid in the form of a dividend in 2004.
Randall M. Greenwood, Senior Vice President, CFO and Treasurer of UBCP, stated
2004 earnings generated a 0.83% return on average assets ("ROA") and a 9.9%
return on average equity ("ROE"). Greenwood also stated, "2004 was the second
most profitable year in the Company's history with core earnings providing a
solid foundation for positive earnings growth in 2005. Contributing to the
improvement in 2004 core earnings was a 9% growth in gross loans totaling $17
million. The $406,000 decline in net earnings is primarily attributable to a
$318,000 after-tax reduction in cyclical gains on sale of loans and securities.
During 2004 the Company experienced core earnings improvements with service
charges on depository accounts up 14.9% or $167,000, while noninterest expense
remained virtually unchanged at $10.4 million. The Company's net interest income
in 2004 also remained stable from 2003 as a result of the low interest rate
environment that persisted throughout much of 2004. At December 31, 2004, gross
outstanding loans comprised 54% of total assets as compared to 52% at December
31, 2003. The focus of the affiliate banks' lending activities is in the local
markets they serve and credit quality is strong, as evidenced by the positive
trend of net charge-offs to average loans. Net charge-offs to average loans of
0.22% for 2004 is the lowest percentage of losses in our loan portfolio since
the expansion of our Community Bank affiliate into Fairfield County in 2000."
James W. Everson, Chairman, President & CEO, stated, "Our consolidated earnings
performance in 2004, although less than our record results in 2003 is comprised
of core earnings growth and reflects management's strong control of noninterest
expense. We have a solid foundation of financial performance at both affiliate
banks to begin 2005 and we are looking to further expand our Community Bank
franchise in Fairfield County. Our Community Bank affiliate earnings excluding
security gains increased approximately $405,000 in 2004 compared to 2003 and we
anticipate continued strong earnings growth in 2005 for this affiliate and our
Citizens Bank affiliate."
United Bancorp, Inc. is headquartered in Martins Ferry, Ohio and is a multi-bank
holding company with total assets of approximately $398 million and total
shareholders' equity of approximately $33 million as of December 31, 2004.
Affiliates of UBCP include The Citizens Savings Bank and The Community Bank with
seventeen banking offices, an Operations Center and a UVEST Investment
Services(R) brokerage office 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 DECEMBER 31, %
2004 2003 CHANGE
------------ ------------ ------
EARNINGS
Total interest income $ 5,223,753 $ 5,304,405 -1.52%
Total interest expense 1,943,130 1,938,679 0.23%
------------ ------------
Net interest income 3,280,623 3,365,726 -2.53%
Provision for loan losses 119,500 126,000 -5.16%
Service Charges on deposit accounts 318,960 308,156 3.51%
Net realized (losses)/gains of sales on securities 4,561 8,241 -44.65%
Net realized gain on sale of loans 9,548 119,895 -92.04%
Other noninterest income 156,884 98,128 59.88%
Total noninterest expense 2,886,782 2,457,548 17.47%
Income tax expense 160,794 199,300 -19.32%
Net income $ 603,500 $ 1,117,298 -45.99%
PER SHARE
Earnings per common share - Basic $ 0.16 $ 0.29 -44.83%
Earnings per common share - Diluted 0.16 0.29 -44.83%
Cash Dividends paid 0.13 0.12 8.33%
SHARES OUTSTANDING
Average - Basic 3,811,417 3,844,277 --
Average - Diluted 3,817,925 3,855,531 --
FOR THE TWELVE MONTHS ENDED DECEMBER 31, %
2004 2003 CHANGE
------------ ------------ ----
EARNINGS
Total interest income $ 20,506,914 $ 20,720,464 -1.03%
Total interest expense 7,538,572 7,837,463 -3.81%
------------ ------------
Net interest income 12,968,342 12,883,001 0.66%
Provision for loan losses 618,000 540,000 14.44%
Service charges on deposit accounts 1,289,573 1,122,202 14.91%
Net realized gains of sales on securities 77,163 344,366 -77.59%
Net realized gains on sale of loans 42,108 177,813 -76.32%
Other noninterest income 790,176 967,185 -18.30%
Total noninterest income 2,199,020 2,611,566 -15.80%
Total noninterest expense 10,452,666 10,415,947 0.35%
Income tax expense 863,799 899,229 -3.94%
Net income $ 3,232,897 $ 3,639,391 -11.17%
PER SHARE
Earnings per common share - Basic $ 0.85 $ 0.94 -9.57%
Earnings per common share - Diluted 0.85 0.94 -9.57%
Cash Dividends paid 0.48 0.43 11.63%
Book value (end of period) 8.66 8.38 3.34%
SHARES OUTSTANDING
Average - Basic 3,818,351 3,859,570 --
Average - Diluted 3,824,574 3,876,111 --
AT YEAR END
Total assets $397,521,584 $385,522,969 3.11%
Total assets (average) 389,832,000 373,906,000 4.26%
Other real estate and repossessions 1,014,207 940,015 7.89%
Gross loans 215,446,870 198,608,574 8.48%
Non-performing loans 1,106,000 101,000 995.05%
Average loans 208,658,000 192,725,000 8.27%
Securities and other restricted stock 156,879,049 160,366,876 -2.17%
Shareholders' equity 32,824,111 32,514,459 0.95%
Shareholders' equity (average) 32,622,000 31,918,000 2.21%
STOCK DATA
Market value - last close (end of period) $ 14.89 $ 16.29 -8.59%
Dividend payout ratio 56.47% 45.74% 23.46%
Price earnings ratio 17.52 x 17.33 x 1.08%
KEY PERFORMANCE RATIOS
Return on average assets (ROA) 0.83% 0.97% -14.43%
Return on average equity (ROE) 9.91% 11.40% -13.07%
Net interest margin (FTE) 3.96% 4.09% -3.18%
Interest expense to average assets 1.93% 2.10% -8.10%
Total allowance loan losses
to total loans 1.39% 1.43% -2.80%
Nonperforming loans to total loans 0.51% 0.01% 5033.52%
Nonperforming assets to total assets 0.53% 0.27% 96.30%
Net charge-offs to average loans 0.22% 0.33% -33.33%
Equity to assets at period end 8.26% 8.43% -2.05%
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.