EXHIBIT 99
[UNITED BANCORP LOGO] UNITED BANCORP, INC.
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: 12:00 PM July 26, 2007
SUBJECT: UNITED BANCORP, INC. REPORTS EARNINGS PER SHARE OF $0.32 FOR THE SIX
MONTHS ENDED JUNE 30, 2007, AN INCREASE OF 52.4%
MARTINS FERRY, OHIO - - - United Bancorp, Inc. (NASDAQ: UBCP), headquartered in
Martins Ferry, Ohio reported earnings of $1,482,000 compared to $989,000 for the
six months ended June 30, 2007 and 2006, respectively. On a per share basis, the
Company's basic earnings per share were $0.32 for 2007 as compared to $0.21 for
2006, an increase of 52.4%. Earnings per share data for 2006 gives effect to the
10% stock split paid in the form of a dividend in December 2006. Second quarter
2007 earnings were $0.17 per share compared to $0.06 per share in 2006. Six
months earnings for 2006 were impacted by a $561,000 after tax charge relating
to the strategic repositioning of our Community Bank affiliate's balance sheet
which is now a division of the Company's lead bank, The Citizens Savings Bank.
Randall M. Greenwood, Senior Vice President, CFO and Treasurer remarked, "The
Company's six month earnings in 2007 generated an annualized 0.71% return on
average assets ("ROA") and an 9.7% return on average equity ("ROE") compared to
0.48% ROA and 6.2% ROE for the comparable six month period in 2006. With the
recent positive slope of the treasury yield curve, the rate of deterioration in
our net interest margin has lessened and the compression of the Company's net
interest margin should stabilize in the next six months. Service charge income
on deposit accounts for the six months ended June 30, 2007 increased $182,000
which reflects the positive impact of a courtesy overdraft program implemented
by the Company in late 2006. We should continue to see increasing service charge
results from this program in future quarters."
James W. Everson, Chairman, President and Chief Executive Officer stated, "As
reported last year, we took dramatic action in repositioning our balance sheet
in June of 2006. Taking our 10% share dividend into consideration, we posted per
share quarterly earnings at $0.06 in June 2006, $0.09 in September 2006, $0.15
in December and $0.16 in March 2007. Posting $0.17 in the second quarter of
2007, we continue to make solid progress in moving towards acceptable earnings,
yet we continue to recognize we must do better. We are committed to improvement
in earnings through the efficiencies to be gained by the merger on July 1st of
our two affiliate bank charters and we are projecting additional benefits to
begin in this fourth quarter by the enhanced oversight of the seasoned Citizens
Bank management team.
"As originally planned, we struck the July 1st quarter as the start date of the
consolidation 'for accounting purposes' of the merger of The Community Bank with
and into The Citizens Savings Bank. The 'physical consolidation' of our two
charters under the management group of The Citizens Savings Bank will take
between six and twelve months to complete." Everson concluded by stating, "We
are pleased with our progress of the past twelve months, yet we recognize much
must be accomplished as we combine the synergies of Community and Citizens,
taking the best that each bank offers, into one larger, stronger and more
profitable bank. While each of the banks will be combined under the charter of
Citizens, the Company intends to continue to capitalize on established branding
in the markets of each institution. In that respect, Community will operate
under the trade name 'The Community Bank, a Division of The Citizens Savings
Bank' and Citizens will operate under the trade name 'The Citizens Bank, a
Division of The Citizens Savings Bank'. The Company expects a normalization of
earnings to occur over the next twelve to eighteen months as a result of
enhanced operating and cost efficiencies to be realized from the consolidation.
In addition, the combined $432.3 million asset institution will have an expanded
$5.5 million lending authority with improved products and services to its
customers and will continue to provide quick loan approvals. As always, our
lending efforts are directed toward quality loans, as we have steered clear of
the sub-prime credits that have recently affected others within the financial
services industry."
United Bancorp, Inc. is headquartered in Martins Ferry, Ohio and is a bank
holding company with total assets of approximately $432.3 million and total
shareholder's equity of approximately $30.6 million as of June 30, 2007. Through
its seventeen banking offices and operations center, The Citizens Savings Bank
serves the Ohio Counties of Athens, Belmont, Carroll, Fairfield, Harrison,
Hocking, Jefferson and Tuscarawas. The Company trades on The NASDAQ Capital
Market tier of the NASDAQ Stock Market under the symbol UBCP, Cusip #909911109.
UNITED BANCORP, INC. MARTINS FERRY, OH
Symbol "UBCP"
<Table>
<Caption>
FOR THE THREE MONTHS ENDED JUNE 30,
------------------------------------ %
2007 2006 CHANGE
------------ ------------ --------
EARNINGS
Total interest income $ 6,648,974 $ 6,319,541 5.21%
Total interest expense 3,601,598 3,150,992 14.30%
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Net interest income 3,047,376 3,168,549 -3.82%
Provision for loan losses 191,009 302,000 -36.75%
Service charges on deposit accounts 457,499 323,380 41.47%
Net realized gains (losses) of sales
on securities 749 (319,976) -100.23%
Net realized gains (losses) on sale
of loans (4,440) 5,078 -187.44%
Other noninterest income 328,540 271,002 21.23%
Total noninterest income 782,348 279,484 179.93%
Total noninterest expense 2,726,552 2,940,711 -7.28%
Income tax expense 147,700 (81,546) -281.12%
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Net income 764,463 286,868 166.49%
PER SHARE
Earnings per common share - Basic $ 0.17 $ 0.06 183.33%
Earnings per common share - Diluted 0.17 0.06 183.33%
Cash dividends paid 0.13 0.12 8.33%
SHARES OUTSTANDING
Average - Basic 4,603,769 4,591,932 --
Average - Diluted 4,605,657 4,592,563 --
FOR THE SIX MONTHS ENDED JUNE 30,
------------------------------------ %
2007 2006 CHANGE
------------ ------------ --------
EARNINGS
Total interest income $ 13,074,833 $ 12,304,170 6.26%
Total interest expense 7,082,780 5,985,954 18.32%
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Net interest income 5,992,053 6,318,216 -5.16%
Provision for loan losses 374,353 404,000 -7.34%
Service charges on deposit accounts 855,481 673,709 26.98%
Net realized gains (losses) of sales
on securities 1,389 (350,003) -100.40%
Net realized gains (losses) on sale
of loans (4,531) 9,857 -145.97%
Other noninterest income 598,689 558,101 7.27%
Total noninterest income 1,451,028 891,664 62.73%
Total noninterest expense 5,336,572 5,729,801 -6.86%
Income tax expense 250,013 87,007 187.35%
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Net income $ 1,482,143 $ 989,072 49.85%
PER SHARE
Earnings per common share - Basic $ 0.32 $ 0.21 52.38%
Earnings per common share - Diluted 0.32 0.21 52.38%
Cash dividends paid 0.26 0.24 8.33%
Book value (end of period) 6.70 6.66 0.60%
SHARES OUTSTANDING
Average - Basic 4,607,900 4,621,663 --
Average - Diluted 4,609,328 4,622,803 --
AT QUARTER END
Total assets $432,309,393 $419,318,216 3.10%
Total assets (average) 420,024,000 414,680,000 1.29%
Other real estate and repossessions 521,343 1,183,015 -55.93%
Gross loans 227,080,310 236,279,137 -3.89%
Allowance for loan losses 2,188,431 2,839,442 -22.93%
Net loans 224,891,879 233,439,695 -3.66%
Non-performing loans 1,447,000 1,533,000 -5.61%
Net loans charged off 491,000 469,146 4.66%
Average loans 228,246,000 233,452,000 -2.23%
Securities and other restricted stock 172,657,366 144,951,202 19.11%
Total deposits 346,136,488 330,005,480 4.89%
Shareholders' equity 30,607,766 30,420,478 0.62%
Shareholders' equity (average) 30,608,000 31,839,000 -3.87%
STOCK DATA
Market value - last close (end of period) $ 10.55 $ 10.00 5.50%
Dividend payout ratio 81.25% 114.29% -28.91%
Price earnings ratio 16.23x 22.22x -26.95%
KEY PERFORMANCE RATIOS
Return on average assets (ROA) 0.71% 0.48% 47.92%
Return on average equity (ROE) 9.68% 6.21% 55.88%
Net interest margin (FTE) 3.16% 3.20% -1.25%
Interest expense to average assets 3.37% 2.89% 16.61%
Total allowance for loan losses
to nonperforming loans 151.24% 185.22% -18.35%
Total allowance for loan losses
to total loans 0.96% 1.20% -20.00%
Nonperforming loans to total loans 0.64% 0.65% -1.54%
Nonperforming assets to total assets 0.46% 0.65% -29.23%
</Table>
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.