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 November 1, 2007
SUBJECT: UNITED BANCORP, INC. REPORTS EARNINGS PER SHARE OF $0.41PER SHARE FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2007, AN INCREASE OF 37%
MARTINS FERRY, OHIO *** United Bancorp, Inc. (NASDAQ: UBCP), headquartered in
Martins Ferry, Ohio reported earnings of $1,874,000 and $1,392,000 for the nine
months ended September 30, 2007 and 2006, respectively. On a per share basis,
the Company's basic earnings were $0.41 for 2007, as compared to $0.30 for 2006,
an increase of 36.7%. Earnings per share data for 2006 gives effect to the 10%
stock split paid in the form of a dividend in December 2006. Third quarter 2007
earnings were $0.09 compared to $0.09 in for the third quarter of 2006.
Randall M. Greenwood, Senior Vice President, CFO and Treasurer remarked, "The
Company's nine month earnings in 2007 generated an annualized 0.59% return on
average assets ("ROA") and an 7.9% return on average equity ("ROE") compared to
0.45% ROA and 5.9% ROE for the comparable nine month period in 2006. With the
recent more positive slope of the treasury yield curve and the lower cost of
short term funds, we are projecting improvement in the Company's net interest
margin in the fourth quarter of 2007. Service charge income on deposit accounts
for the nine months ended September 30, 2007 increased $312,000 which reflects
the positive impact of a courtesy overdraft program implemented by the Company
in late 2006. During the third quarter of 2007, the Company recorded costs of
$160,000 relating to the recent charter merger. On an after tax basis, these non
recurring expenses amounted to $0.02 per share. Without this item the Company's
earnings per share for the three months ended September 30, 2007 would have been
$0.11 compared to $0.09 for the third quarter of 2006, an increase of 22.2%."
James W. Everson, Chairman, President and Chief Executive Officer stated, "As
announced last quarter, we struck July 1st as the start date '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 was completed on October 31st resulting in a
22% reduction in staffing at The Community Bank division. Our flat third quarter
earnings reflect the cost of employee severance payments to accomplish this
which should translate into improved earnings moving forward into the fourth and
future quarters. As reported in previous releases, we project a normalization of
earnings to occur over the next twelve months as a result of enhanced operating
and cost efficiencies to be realized from this consolidation. Having merged our
bank charters into a single charter and common operating system, we shall save
valuable resources and allow each of our offices to enhance our focus on growing
our banking franchises by providing the highest level of customer service."
United Bancorp, Inc. is headquartered in Martins Ferry, Ohio and is a multi-bank
holding company with total assets of approximately $442.1 million and total
shareholder's equity of approximately $32.1 million as of September 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"
FOR THE THREE MONTHS
ENDED SEPTEMBER 30,
----------------------- %
2007 2006 CHANGE
---------- ---------- -------
EARNINGS
Total interest income $ 6,673 $ 6,552 1.85%
Total interest expense 3,807 3,385 12.47%
---------- ----------
Net interest income 2,866 3,167 -9.50%
Provision for loan losses 283 652 -56.60%
Service charges on deposit accounts 481 350 37.43%
Net realized (losses)/gains of sales on securities -- --
Net realized gains on sale of loans 13 4 225.00%
Other noninterest income 291 345 -15.65%
Total noninterest income 785 699 12.30%
Total noninterest expense 3,005 2,773 8.37%
Income tax (benefit) expense (29) 38 -176.32%
---------- ----------
Net income 392 403 -2.73%
PER SHARE
Earnings per common share - Basic $ 0.09 $ 0.09 0.00%
Earnings per common share - Diluted 0.09 0.09 0.00%
Cash Dividends paid 0.13 0.12 8.33%
SHARES OUTSTANDING
Average - Basic 4,579,381 4,576,756 --
Average - Diluted 4,581,455 4,576,917 --
FOR THE NINE MONTHS
ENDED SEPTEMBER 30,
----------------------- %
2007 2006 CHANGE
---------- ---------- -------
EARNINGS
Total interest income $ 19,747 $ 18,856 4.73%
Total interest expense 10,889 9,371 16.20%
---------- ----------
Net interest income 8,858 9,485 -6.61%
Provision for loan losses 657 1,056 -37.78%
Service charges on deposit accounts 1,336 1,024 30.47%
Net realized gains (losses) security transactions 1 (350) -100.29%
Net realized gains on sale of loans 9 14 -35.71%
Other noninterest income 890 903 -1.44%
Total noninterest income 2,236 1,591 40.54%
Total noninterest expense 8,342 8,503 -1.89%
Income tax expense 221 125 76.80%
---------- ----------
Net income $ 1,874 $ 1,392 34.63%
PER SHARE
Earnings per common share - Basic $ 0.41 $ 0.30 36.67%
Earnings per common share - Diluted 0.41 0.30 36.67%
Cash Dividends paid 0.39 0.35 11.43%
Book value (end of period) 6.91 7.14 -3.22%
SHARES OUTSTANDING
Average - Basic 4,564,741 4,589,740 --
Average - Diluted 4,566,765 4,590,293 --
AT QUARTER END
Total assets $ 442,148 $ 425,346 3.95%
Total assets (average) 425,966 416,269 2.33%
Other real estate and repossessions 820 274 199.27%
Gross loans 227,329 237,066 -4.11%
Allowance for loan losses 2,218 3,474 -36.15%
Net loans 225,111 233,592 -3.63%
Net loans charged off 784 486 61.32%
Non-performing loans 1,586 1,299 22.09%
Average loans 227,722 234,210 -2.77%
Total deposits 349,687 337,302 3.67%
Securities and other restricted stock 176,133 157,207 12.04%
Shareholders' equity 32,116 32,408 -0.90%
Shareholders' equity (average) 31,571 31,606 -0.11%
STOCK DATA
Market value - last close (end of period) $ 11.39 $ 9.95 14.47%
Dividend payout ratio 95.12% 118.18% -19.51%
Price earnings ratio 18.67x 22.10x -342.79%
KEY PERFORMANCE RATIOS
Return on average assets (ROA) 0.59% 0.45% 0.14%
Return on average equity (ROE) 7.91% 5.87% 2.04%
Net interest margin (FTE) 3.07% 3.21% -0.14%
Interest expense to average assets 3.41% 3.00% 0.41%
Total allowance loan losses
to nonperforming loans 139.85% 267.44% -127.59%
Total allowance loan losses
to total loans 0.98% 1.47% -0.49%
Nonperforming loans to total loans 0.70% 0.55% 0.15%
Nonperforming assets to total assets 0.54% 0.37% 0.17%
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.