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: 1:00 PM July 14, 2008
SUBJECT: UNITED BANCORP, INC. REPORTS CONTINUED EARNINGS IMPROVEMENT WITH AN
EARNINGS PER SHARE INCREASE OF 31% FOR THE SIX MONTHS ENDED JUNE 30, 2008
MARTINS FERRY, OHIO --- United Bancorp, Inc. (NASDAQ: UBCP), headquartered in
Martins Ferry, Ohio reported continued earnings improvement with net earnings of
$1,928,000 for the six months ended June 30, 2008 compared to $1,482,000 for the
six months ended June 30, 2007. On a per share basis, the Company's six months
diluted earnings were $0.42 for 2008, as compared to $0.32 for 2007, an increase
of 31%.
Randall M. Greenwood, Senior Vice President, CFO and Treasurer remarked, "The
Company's six month earnings in 2008 generated an annualized 0.88% return on
average assets ("ROA") and a 11.4% return on average equity ("ROE"), compared to
0.71% ROA and 9.68% ROE for the comparable six month period in 2007. We believe
the 2008 results of operations for the six months ended June 30, 2008 will
compare very favorably with our peers in the banking industry. Moreover, with
the reduction in short term interest rates by the Federal Reserve, we are
projecting the Company's net interest margin to reflect continued improvement in
2008 as compared to 2007. The Company's net interest margin of 3.96% for the six
months ended June 30, 2008 generated an increase of approximately $1,490,000 in
net interest income over the same period in 2007. Service charge income on
deposit accounts for the six months ended June 30, 2008 increased $146,000,
which reflects the continuing positive impact of the Company's courtesy
overdraft program, as well as a merchant check capture program. The Company's
enhanced earnings level was accomplished despite an approximate $125,000 period
over period after-tax increase in the provision for loan losses."
James W. Everson, Chairman, President and Chief Executive Officer stated, "We
are pleased to report this 31% earnings per share improvement for the six months
ended June 30, 2008. This level of increased earnings was generated even with
the $125,000 after tax period over period increase in the provision for loan
losses. I wish to stress the increased loan loss provision in the 2008 six month
period reflects prudence related to the economic challenges facing the banking
industry as evidenced by significant deterioration in asset quality within the
financial sector."
Everson concluded by stating "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. Based upon our second half
performance in 2007 which was impacted by one time charter consolidation costs,
we are projecting a forty percent improvement in year-end 2008 earnings over
2007."
United Bancorp, Inc. is headquartered in Martins Ferry, Ohio and is a bank
holding company with total assets of approximately $427.0 million and total
shareholder's equity of approximately $32.5 million as of June 30, 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"
FOR THE THREE MONTHS
ENDED JUNE 30,
----------------------- %
2008 2007 CHANGE
---------- ---------- -------
EARNINGS
Total interest income $6,482,403 $6,648,974 -2.51%
Total interest expense 2,517,175 3,601,598 -30.11%
Net interest income 3,965,228 3,047,376 30.12%
Provision for loan losses 395,407 191,009 107.01%
Service charges on deposit accounts 510,863 457,499 11.66%
Net realized gains (losses) of sales on securities -- 749 -100.00%
Net realized gains (losses) on sale of loans 45,138 (4,440) 1116.62%
Net realized gains (losses) on sale of Other real
estate and repossessions -- 61,499 -100.00%
Other noninterest income 198,682 267,041 -25.60%
Total noninterest income 754,683 782,348 -3.54%
Total noninterest expense 2,998,779 2,726,552 9.98%
Income tax expense 300,300 147,700 103.32%
---------- ----------
Net income $1,025,425 $ 764,463 34.14%
PER SHARE
Earnings per common share - Basic $ 0.22 $ 0.17 29.41%
Earnings per common share - Diluted 0.22 0.17 29.41%
Cash dividends paid 0.13 0.13 0.00%
SHARES OUTSTANDING
Average - Basic 4,579,773 4,603,769 --
Average - Diluted 4,579,934 4,605,657 --
FOR THE SIX MONTHS
ENDED JUNE 30,
--------------------------- %
2008 2007 CHANGE
------------ ------------ -------
EARNINGS
Total interest income $ 13,142,043 $ 13,074,833 0.51%
Total interest expense 5,659,689 7,082,780 -20.09%
------------ ------------
Net interest income 7,482,354 5,992,053 24.87%
Provision for loan losses 563,342 374,353 50.48%
Service charges on deposit accounts 1,001,898 855,481 17.12%
Net realized gains (losses) of sales on securities -- 1,389 -100.00%
Net realized gains (losses) on sale of loans 58,866 (4,531) 1399.18%
Net realized gains (losses) on sale of Other real
estate and repossessions (151,620) 73,688 -305.76%
Other noninterest income 446,950 516,547 -13.47%
Total noninterest income 1,356,094 1,442,574 -5.99%
Total noninterest expense 5,821,544 5,328,118 9.26%
Income tax expense 525,107 250,013 110.03%
------------ ------------
Net income $ 1,928,455 $ 1,482,143 30.11%
PER SHARE
Earnings per common share - Basic $ 0.42 $ 0.32 31.25%
Earnings per common share - Diluted 0.42 0.32 31.25%
Cash dividends paid 0.26 0.26 0.00%
Book value (end of period) 7.08 6.70 5.67%
SHARES OUTSTANDING
Average - Basic 4,575,930 4,607,900 --
Average - Diluted 4,576,075 4,609,328 --
AT QUARTER END
Total assets $426,987,217 $432,309,393 -1.23%
Total assets (average) 440,795,000 420,024,000 4.95%
Other real estate and repossessions ("OREO") 500,716 521,343 -3.96%
Gross loans 234,431,991 227,080,310 3.24%
Allowance for loan losses 2,870,284 2,188,431 31.16%
Net loans 231,561,707 224,891,879 2.97%
Non-accrual loans 4,483,000 1,447,000 209.81%
Net loans charged off 140,000 491,000 -71.49%
Average loans 234,265,000 228,246,000 2.64%
Securities and other restricted stock 157,913,876 172,657,366 -8.54%
Total deposits 321,917,163 346,136,488 -7.00%
Shareholders' equity 32,469,372 30,607,766 6.08%
Shareholders' equity (average) 33,780,000 30,608,000 10.36%
STOCK DATA
Market value - last close (end of period) $ 9.74 $ 10.55 -7.68%
Dividend payout ratio 61.90% 81.25% -19.35%
Price earnings ratio 11.60x 16.23x -28.53%
KEY PERFORMANCE RATIOS
Return on average assets (ROA) 0.88% 0.71% 0.17%
Return on average equity (ROE) 11.42% 9.68% 1.74%
Net interest margin (FTE) 3.96% 3.16% 0.80%
Interest expense to average assets 2.57% 3.37% -0.80%
Total allowance for loan losses
to nonaccrual loans 64.03% 151.24% -87.21%
Total allowance for loan losses
to total loans 1.22% 0.96% 0.26%
Nonaccrual loans to total loans 1.91% 0.64% 1.27%
Nonaccrual loans and OREO to total assets 1.17% 0.46% 0.71%
Net charge-offs to average loans 0.12% 0.47% -0.35%
Equity to assets at period end 7.60% 7.08% 0.52%
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.