EXHIBIT 99
(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
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 April 10, 2008
SUBJECT: UNITED BANCORP, INC. REPORTS CONTINUED EARNINGS IMPROVEMENT WITH AN
EARNINGS PER SHARE INCREASE OF 25% FOR THE THREE MONTHS ENDED MARCH 31,
2008
MARTINS FERRY, OHIO --- United Bancorp, Inc. (NASDAQ: UBCP), headquartered in
Martins Ferry, Ohio reported continued earnings improvement with net earnings of
$903,000 for the three months ended March 31, 2008 compared to $718,000 for the
quarter ended March 31, 2007. On a per share basis, the Company's first quarter
diluted earnings were $0.20 for 2008, as compared to $0.16 for 2007, an increase
of 25.0%.
Randall M. Greenwood, Senior Vice President, CFO and Treasurer remarked, "The
Company's three month earnings in 2008 generated an annualized 0.81% return on
average assets ("ROA") and a 10.0% return on average equity ("ROE"), compared to
0.69% ROA and 8.8% ROE for the comparable three month period in 2007. We believe
the first quarter 2008 results of operations will compare very favorably with
our peers in the banking industry. Moreover, with the continued reduction in
short term interest rates by the Federal Reserve, we are projecting further
improvements in the Company's net interest margin in 2008. The Company's net
interest margin of 3.86% for the three months ended March 31, 2008 generated an
increase of approximately $572,000 in net interest income over the same period
in 2007. Service charge income on deposit accounts for the three months ended
March 31, 2008 increased $93,000, which reflects the positive impact of the
Company's courtesy overdraft program and implementation of a merchant check
capture program in 2007. The Company's enhanced earnings level was accomplished
despite an approximate $100,000 period over period after-tax increase in the
provision for losses on nonperforming assets."
James W. Everson, Chairman, President and Chief Executive Officer stated, "We
are pleased to report this 25% earnings improvement for the first quarter of
2008. Our Board of Directors and Management Team have worked aggressively over
the past eighteen months to implement the reorganization of our affiliate banks
into one charter. With the operational efficiencies gained from the full
integration of our two subsidiary banks and the streamlining of our management
and operational support positions, which has reduced time and money spent on
duplicated efforts, we anticipate a continuation of solid earnings improvement
throughout 2008."
United Bancorp, Inc. is headquartered in Martins Ferry, Ohio and is a multi-bank
holding company with total assets of approximately $447.2 million and total
shareholder's equity of approximately $34.2 million as of March 31, 2008.
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"
AT OR FOR THE QUARTER
ENDED MARCH 31,
--------------------------- %
2008 2007 CHANGE
------------ ------------ --------
EARNINGS
Total interest income $ 6,659,640 $ 6,425,859 3.64%
Total interest expense 3,142,514 3,481,182 -9.73%
------------ ------------
Net interest income 3,517,126 2,944,677 19.44%
Provision for loan losses 167,935 183,344 -8.40%
Service charges on deposit accounts 491,035 397,982 23.38%
Net realized gains of sales on securities -- -- --
Net realized gains on sale of loans 13,728 (91) 100.00%
Other noninterest income 251,648 270,789 -7.07%
Total noninterest income 756,411 668,680 13.12%
Total noninterest expense 2,977,765 2,610,020 14.09%
Earnings before income taxes 1,127,837 819,993 37.54%
Income tax expense 224,807 102,313 119.72%
------------ ------------
Net income $ 903,030 $ 717,680 25.83%
PER SHARE
Earnings per common share - Basic $ 0.20 $ 0.16 25.00%
Earnings per common share - Diluted 0.20 0.16 25.00%
Cash Dividends paid 0.13 0.13 0.00%
Annualized yield based on quarter end close 5.34% 5.10% 4.68%
Book value (end of period) 7.47 7.13 4.78%
SHARES OUTSTANDING
Average - Basic 4,572,057 4,611,847 --
Average - Diluted 4,572,057 4,613,004 --
AT QUARTER END
Total assets $447,151,463 $422,131,227 5.93%
Total assets (average) 446,507,000 414,720,000 7.66%
Other real estate and repossessions 500,344 789,742 -36.64%
Gross loans 233,865,126 227,096,800 2.98%
Allowance for loan losses (2,540,331) (2,381,958) 6.65%
Net loans 231,324,795 224,714,842 2.94%
Net loan (recoveries) charge-offs (74,858) 146,805 -150.99%
Non-performing loans 5,403,000 3,465,000 55.93%
Average loans 234,815,000 229,658,000 2.25%
Securities and other restricted stock 175,098,119 157,814,106 10.95%
Shareholders' equity 34,175,742 32,773,203 4.28%
Shareholders' equity (average) 36,078,000 32,755,000 10.15%
STOCK DATA
Market value - last close (end of period) $ 9.74 $ 10.20 -4.51%
Dividend payout ratio 65.00% 81.25% -16.25%
Price earnings ratio 12.18x 15.94x -23.59%
KEY PERFORMANCE RATIOS
Return on average assets (ROA) 0.81% 0.69% 0.12%
Return on average equity (ROE) 10.01% 8.76% 1.25%
Net interest margin (FTE) 3.86% 3.20% 0.66%
Interest expense to average assets 2.82% 3.36% -0.54%
Total allowance for loan losses
to nonperforming loans 47.02% 68.74% -21.72%
Total allowance for loan losses
to total loans 1.09% 1.05% 0.04%
Nonperforming loans to total loans 2.31% 1.53% 0.78%
Nonperforming assets to total assets 1.32% 1.01% 0.31%
Net (recoveries) charge-offs to average loans -0.03% 0.04% -0.07%
Equity to assets at period end 7.64% 7.76% -0.12%
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.