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
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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: 3:00 PM April 20, 2005
SUBJECT: UNITED BANCORP, INC. REPORTS FIRST QUARTER 2005 EARNINGS PER SHARE OF
$0.22 AND DECLARES A CASH DIVIDEND OF 13 CENTS PER SHARE.
MARTINS FERRY, OHIO --- United Bancorp, Inc. (NASDAQ: UBCP), headquartered in
Martins Ferry, Ohio reported earnings of $821,000 compared to $856,000 for the
quarter ended March 31, 2005 and 2004, respectively. On a per share basis, basic
earnings per share were $0.22 for the quarters ended March 31, 2005 and 2004. On
April 20, 2005 the Board of Directors declared the second quarter dividend
payment of 13 cents per share for shareholders of record on May 27, 2005, with a
payment date of June 20, 2005. This dividend represents a projected annual
dividend of 52 cents per share paid in 2005, an 8% increase over the 48 cents
per share annual dividend paid in 2004. Earnings per share data for the 2004
quarter gives effect to the 10% stock spilt paid in the form of a dividend in
December 2004.
Randall M. Greenwood, Senior Vice President, CFO and Treasurer, of UBCP
remarked, "First quarter earnings generated an annualized 0.83% return on
average assets ("ROA") and an annualized 10.3% return on average equity ("ROE")
compared to 0.90% ROA and 10.5% ROE for the same period in 2004". During the
first quarter of 2005, the Company's core earnings increased $75,000. Core
earnings improvements were driven by net interest income increasing 3.3% or
$103,000 and service charges on depository accounts and other noninterest income
increasing 5.5% or $29,000. The $35,000 decline in net earnings for the first
quarter of 2005 compared to the same period in 2004 is attributable to an
$81,000 after-tax reduction in cyclical gains on sale of loans and securities.
The Company's realized gains from the sale of securities and loans totaled
$9,000 for the quarter ended March 31, 2005 compared to $122,000 for the quarter
ended March 31, 2004, a decrease of $113,000.
James W. Everson, Chairman, President & CEO, stated, "Our core earnings
increased $75,000 in the first quarter of 2005 due to our continued expansion
and growth of market share within the markets we serve. Additionally, although
earnings are down $35,000 quarter to quarter, we can see the value of our
continued stock repurchase plan has made since we are reporting the same
earnings per share for both quarters. Our increase in core earnings is
attributed to the continuing growth in loans which are up 8.6% comparing
March 31, 2005 to March 31, 2004. The focus of the affiliate banks' lending
activities in the local markets they serve and credit quality is strong, as
evidenced by a low 0.27% of net charge-offs to average loans. This level of net
charge-offs to average loans of 0.27% for the first quarter of 2005 is near its
lowest levels since the expansion of our Community Bank affiliate into Fairfield
County in 2000."
The Annual Meeting of United Bancorp was held at 2:00 p.m. on Wednesday
April 20, 2005. Directors James W. Everson, John M. Hoopingarner,
Richard L. Riesbeck and Matthew C. Thomas were re-elected to a two-year term
as Class of 2007. Those continuing to serve under previous election as Class
of 2006 are Michael J. Arciello, Terry A. McGhee and L.E. Richardson.
Following the Annual Meeting the Board of Directors appointed the following
officers, James W. Everson, Chairman, President & Chief Executive Officer;
Alan M. Hooker, Executive Vice President-Chief Administration Officer;
Scott A. Everson, Sr. Vice President-Chief Operating Officer; Randall M.
Greenwood, Sr. Vice President-Chief Financial Officer & Treasurer; Norman F.
Assenza, Jr., Vice President-Chief Compliance Officer & Secretary;
Michael A. Lloyd, Vice President-Chief Information Officer and James A. Lodes,
Vice President-Chief Lending Officer.
United Bancorp, Inc. is headquartered in Martins Ferry, Ohio and is a multi-bank
holding company with total assets of approximately $396 million and total
shareholder's equity of approximately $32 million as of March 31, 2005.
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 SmallCap 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, %
2005 2004 CHANGE
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EARNINGS
Total interest income $ 5,222,684 $ 5,027,449 3.88%
Total interest expense 1,974,353 1,882,094 4.90%
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Net interest income 3,248,331 3,145,355 3.27%
Provision for loan losses 144,000 139,500 3.23%
Service charges on deposit accounts 314,376 305,314 2.97%
Net realized gains of sales on securities 2,566 110,558 -97.68%
Net realized gains on sale of loans 6,478 11,516 -43.75%
Other noninterest income 243,020 223,115 8.92%
Total noninterest income 566,440 650,503 -12.92%
Total noninterest expense 2,620,322 2,567,486 2.06%
Income tax expense 229,500 232,900 -1.46%
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Net income $ 820,949 $ 855,972 -4.09%
PER SHARE
Earnings per common share - Basic $ 0.22 $ 0.22 0.00%
Earnings per common share - Diluted 0.22 0.22 0.00%
Cash Dividends paid 0.13 0.12 8.33%
Book value (end of period) 8.41 8.73 -3.67%
SHARES OUTSTANDING
Average - Basic 3,788,143 3,828,480 ---
Average - Diluted 3,797,394 3,851,885 ---
AT QUARTER END
Total assets $ 395,778,268 $ 384,410,818 2.96%
Total assets (average) 394,029,000 380,297,000 3.61%
Other real estate and repossessions 888,207 820,731 8.22%
Gross loans 218,677,565 201,456,215 8.55%
Non-performing loans 1,003,167 222,000 351.88%
Average loans 217,363,000 201,875,000 7.67%
Securities and other restricted stock 150,588,043 155,078,351 -2.90%
Shareholders' equity 31,956,314 33,341,239 -4.15%
Shareholders' equity (average) 31,843,000 32,657,000 -2.49%
STOCK DATA
Market value - last close (end of period) $ 14.24 $ 14.22 0.14%
Dividend payout ratio 59.09% 54.54% 8.34%
Price earnings ratio 16.18 x 16.10 x 0.51%
KEY PERFORMANCE RATIOS
Return on average assets (ROA) 0.83% 0.90% -7.40%
Return on average equity (ROE) 10.31% 10.48% -1.60%
Net interest margin (FTE) 3.83% 3.80% 0.79%
Interest expense to average assets 2.00% 1.98% 1.23%
Total allowance loan losses
to nonperforming loans 298.48% 315.71% -5.46%
Total allowance loan losses
to total loans 1.37% 1.38% -0.72%
Nonperforming loans to total loans 0.46% 0.11% 317.04%
Nonperforming assets to total assets 0.48% 0.27% 77.78%
Net charge-offs to average loans 0.27% 0.33% -18.18%
Equity to assets at period end 8.07% 8.67% -6.87%
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.
In order to comply with securities regulations and to treat all investors
fairly, we will not disclose material non-public information to any shareholder.
However, if a question recurs or raises an issue which we have not addressed in
our public releases, we will consider including the information in our next
public release. Please note that we do not hold conference calls, and that we do
not intend to do so in the future.