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: 10:00 AM October 27, 2006
SUBJECT: UNITED BANCORP, INC. REPORTS EARNINGS PER SHARE OF $0.10 FOR THE THREE
MONTHS ENDED SEPTEMBER 30, 2006 AND $0.33 FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 2006
MARTINS FERRY, OHIO --- United Bancorp, Inc. (NASDAQ: UBCP), headquartered in
Martins Ferry, Ohio reported earnings of $403,000 for the three months ended
September 30, 2006 compared to $828,000 for the three months ended September 30,
2005. On a per share basis, basic earnings were $0.10 for the three months ended
September 30, 2006 compared to $0.20 for the three months ended September 30,
2005. Year to date earnings for the nine months ended September 30, were $0.33
per share in 2006 compared to $0.60 in 2005. UBCP Chairman, President and CEO
James W. Everson stated "we are not pleased with our earnings for the third
quarter, particularly with respect to continued write downs at our Community
Bank affiliate that have dampened other earnings improvement initiatives of the
Company. During the third quarter, our Community Bank affiliate recorded an
additional $550,000 of loan loss provision and charged another $67,000 to
expense to write-down certain other real estate owned ("OREO") properties to
their estimated market value. These two additional expense items reduced the
Company's earnings by approximately $0.08 per share after tax for the third
quarter.
Randall M. Greenwood, Senior Vice President, CFO and Treasurer, of UBCP stated
"The Company's nine months earnings in 2006 generated an annualized 0.45% return
on assets ("ROA") and a 5.87% return on equity ("ROE"). The Company's earnings
for the nine months ended September 30, 2006 were negatively impacted by the
provision and charge-offs, as well as by continued pressure on the Company's net
interest margin which is a current industry challenge. Without the additional
expense items, ROA would have been 0.71% and ROE of 9.34% for the nine months
ended September 30, 2006. The net interest margin of the Company continued to
decrease during the first nine months of 2006; however, the growth of the loan
portfolio of approximately $2.5 million, and an increase in the Company's
investment portfolio of $10.7 million did help offset the margin compression. We
also continued to see strong deposit growth of approximately $30.4 million, or
9.9%, for the nine months ended September 30, 2006."
James W. Everson, Chairman, President & CEO stated, "We are very disappointed
with the events that required an additional $550,000 of additional loan loss
provision and $67,000 write-down to OREO properties at our Community Bank
affiliate during the third quarter. We will continue to focus on improving our
earnings at our Community Bank affiliate and will begin taking immediate actions
to improve the earnings of the Company. As with much of the financial services
industry in general, both of our affiliate banks have experienced compression of
net interest margin due to the current flat interest rate environment and the
competitive markets in which we operate. We are pleased to report our Citizens
Bank affiliate continues to perform in the top quadrant of its peer group, which
is helping to sustain our reported earnings." Everson concluded by stating, "We
are cautiously optimistic regarding our 4th quarter earnings as we see a more
normalized earnings stream as we move forward."
United Bancorp, Inc. is headquartered in Martins Ferry, Ohio and is a multi-bank
holding company with total assets of approximately $425.3 million and total
shareholder's equity of approximately $32.4 million as of June 30, 2006.
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 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. MARTINS FERRY, OH
Symbol "UBCP"
FOR THE THREE MONTHS
ENDED SEPTEMBER 30,
----------------------- %
2006 2005 CHANGE
---------- ---------- -------
EARNINGS
Total interest income $ 6,552 $ 5,658 15.80%
Total interest expense 3,385 2,404 40.81%
---------- ----------
Net interest income 3,167 3,254 -2.67%
Provision for loan losses 652 68 858.82%
Service charges on deposit accounts 350 343 2.04%
Net realized (losses)/gains of sales
on securities -- (19) -100.00%
Net realized gains on sale of loans 4 4 0.00%
Other noninterest income 345 246 40.24%
Total noninterest income 699 574 21.78%
Total noninterest expense 2,773 2,664 4.09%
Income tax expense 38 268 -85.82%
---------- ----------
Net income 403 828 -51.33%
PER SHARE
Earnings per common share - Basic $ 0.10 $ 0.20 -50.00%
Earnings per common share - Diluted 0.10 0.20 -50.00%
Cash Dividends paid 0.13 0.12 8.33%
SHARES OUTSTANDING
Average - Basic 4,160,687 4,243,151 --
Average - Diluted 4,160,834 4,243,694 --
FOR THE NINE MONTHS
ENDED SEPTEMBER 30,
----------------------- %
2006 2005 CHANGE
---------- ---------- -------
EARNINGS
Total interest income $ 18,856 $ 16,326 15.50%
Total interest expense 9,371 6,539 43.31%
---------- ----------
Net interest income 9,485 9,787 -3.09%
Provision for loan losses 1,056 328 221.95%
Service charges on deposit accounts 1,024 972 5.35%
Net realized losses of sales on
securities (350) (25) 1300.00%
Net realized gains on sale of loans 14 16 -12.50%
Other noninterest income 903 766 17.89%
Total noninterest income 1,591 1,729 -7.98%
Total noninterest expense 8,503 7,924 7.31%
Income tax expense 125 735 -82.99%
---------- ----------
Net income $ 1,392 $ 2,529 -44.96%
PER SHARE
Earnings per common share - Basic $ 0.33 $ 0.60 -45.00%
Earnings per common share - Diluted 0.33 0.60 -45.00%
Cash Dividends paid 0.39 0.36 8.33%
Book value (end of period) 7.85 8.06 -2.60%
SHARES OUTSTANDING
Average - Basic 4,172,491 4,227,686 --
Average - Diluted 4,172,994 4,228,931 --
AT QUARTER END
Total assets $ 425,346 $ 405,694 4.84%
Total assets (average) 416,269 401,049 3.80%
Other real estate and repossessions 274 1,140 -75.96%
Gross loans 237,066 230,588 2.81%
Allowance for loan losses 3,474 2,942 18.08%
Net loans 233,592 227,646 2.61%
Net loans charged off 487 381 27.82%
Non-performing loans 1,299 974 33.37%
Average loans 234,210 222,686 5.17%
Total deposits 337,302 306,915 9.90%
Securities and other restricted stock 157,207 148,250 6.04%
Shareholders' equity 32,408 33,904 -4.41%
Shareholders' equity (average) 31,606 32,720 -3.40%
STOCK DATA
Market value - last close (end of
period) $ 10.94 $ 11.32 -3.34%
Dividend payout ratio 118.18% 60.00% 96.97%
Price earnings ratio 17.93x 12.86x 39.44%
KEY PERFORMANCE RATIOS
Return on average assets (ROA) 0.45% 0.84% -46.92%
Return on average equity (ROE) 5.87% 10.31% -43.04%
Net interest margin (FTE) 3.40% 3.69% -7.86%
Interest expense to average assets 3.00% 2.17% 8.49%
Total allowance loan losses
to nonperforming loans 267.44% 302.05% -11.46%
Total allowance loan losses
to total loans 1.47% 1.28% 14.86%
Nonperforming loans to total loans 0.55% 0.42% 29.72%
Nonperforming assets to total assets 0.37% 0.52% -29.03%