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: 12:00PM October 23, 2008
SUBJECT: UNITED BANCORP, INC. REPORTS CONTINUED EARNINGS IMPROVEMENT WITH AN
EARNINGS PER SHARE INCREASE OF 51% FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 2008
MARTINS FERRY, OHIO --- United Bancorp, Inc. (NASDAQ: UBCP), headquartered in
Martins Ferry, Ohio reported continued earnings improvement with net income of
$2,825,000 for the nine months ended September 30, 2008 compared to $1,874,000
for the nine months ended September 30, 2007. On a per share basis, the
Company's nine month diluted earnings were $0.62 for 2008, as compared to $0.41
for 2007, an increase of 51%. Third quarter 2008 earnings per share was $0.20
compared to $0.09 for the third quarter of 2007, up 122%.
Randall M. Greenwood, Senior Vice President, CFO and Treasurer remarked, "The
Company's nine month earnings in 2008 generated an annualized 0.87% return on
average assets ("ROA") and a 11.3% return on average equity ("ROE"), compared to
0.59% ROA and 7.91% ROE for the comparable nine month period in 2007. We are
confident the 2008 results of operations for the nine months ended September 30,
2008 will compare very favorably with our peers in the banking industry.
Moreover, with the recent reduction in short term interest rates by the Federal
Reserve, we are projecting the Company's net interest margin to reflect
continued improvement through the end of 2008. The Company's net interest margin
of 4.08% for the nine months ended September 30, 2008, compared to 3.07% in
2007, generated an increase of approximately $2,582,000 in net interest income
over the same period in 2007. Service charge income on deposit accounts for the
nine months ended September 30, 2008 increased $182,000 which reflects the
continuing positive impact of the Company's courtesy overdraft and merchant
check capture programs. The Company's enhanced earnings level was accomplished
despite an approximate $230,000 period over period before-tax increase in the
provision for loan losses."
James W. Everson, Chairman, President and Chief Executive Officer stated, "We
are pleased to report our earnings improvement and continue to project a year of
record earnings for United Bancorp for 2008. Further, we wish to stress the
increased loan loss provision in the 2008 nine month period reflects prudence as
it relates to the economic challenges facing the banking industry as evidenced
by an overall deterioration in asset quality within the financial sector."
Everson concluded by stating, "We project that our recently announced
acquisition of the Ohio offices and deposits of the failed Ameribank in St.
Clairsville, Dillonvale and Tiltonsville will greatly enhance our banking
"footprint" in our eastern region and will be accretive to earnings beginning in
the first quarter of 2009. In addition, this acquisition has provided additional
liquidity by adding approximately $32 million of low cost core deposits to the
Company's deposit totals reported as of September 30, 2008. We anticipate by the
end of November that our newly acquired customers will be able to bank
interchangeably at all thirteen of our full service banking facilities located
in the northern and eastern regions which comprise our Citizens Bank Division.
Based upon our performance in 2007, which was impacted by one time charter
consolidation costs, we are projecting a record forty percent improvement in
year-end 2008 earnings over 2007. Needless to say, your Directors and Management
Team are pleased to make this positive report during these trying economic
times."
United Bancorp, Inc. is headquartered in Martins Ferry, Ohio with total assets
of approximately $453.0 million and total shareholder's equity of approximately
$32.3 million as of September 30, 2008. Through its single bank charter now with
its twenty banking offices and an operations center, The Citizens Savings Bank
through its Community Bank Division serves the Ohio Counties of Athens,
Fairfield and Hocking and through its Citizens Bank Division serves Belmont,
Carroll, Harrison, Jefferson and Tuscarawas. United Bancorp, Inc. is a part of
the Russell Microcap Index and 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,
----------------------------------------
%
2008 2007 CHANGE
------------ ------------ --------
EARNINGS
Total interest income $ 6,305,116 $ 6,671,868 -5.50%
Total interest expense 2,347,512 3,806,649 -38.33%
------------ ------------
Net interest income 3,957,604 2,865,219 38.13%
Provision for loan losses 324,016 283,095 14.45%
Net interest income after provision
for loan losses 3,633,588 2,582,124 40.72%
Service charges on deposit accounts 515,835 480,684 7.31%
Net realized losses of sales on
securities (14,177) -- N/A
Net realized gains on sale of loans 23,418 13,612 72.04%
Net realized gains on sale of other
real estate and repossessions 8,329
Other noninterest income 203,697 291,423 -30.10%
Total noninterest income 728,773 785,719 -7.25%
Total noninterest expense 3,235,530 3,005,168 7.67%
Income tax expense 239,000 (29,087) -921.67%
------------ ------------
Net income $ 896,160 $ 391,762 128.75%
PER SHARE
Earnings per common share - Basic $ 0.20 $ 0.09 122.22%
Earnings per common share - Diluted 0.20 0.09 122.22%
Cash Dividends paid 0.14 0.13 7.69%
SHARES OUTSTANDING
Average - Basic 4,593,728 4,579,381 --
Average - Diluted 4,593,925 4,581,455 --
FOR THE NINE MONTHS ENDED SEPTEMBER 30,
---------------------------------------
%
2008 2007 CHANGE
------------ ------------ --------
EARNINGS
Total interest income $ 19,447,159 $ 19,746,701 -1.52%
Total interest expense 8,007,201 10,889,429 -26.47%
------------ ------------
Net interest income 11,439,958 8,857,272 29.16%
Provision for loan losses 887,358 657,448 34.97%
Net interest income after provision
for loan losses 10,552,600 8,199,824 28.69%
Service charges on deposit accounts 1,517,733 1,336,165 13.59%
Net realized gains (losses) of sales
on securities (14,177) 1,389 -1120.66%
Net realized gains on sale of loans 82,284 9,081 806.11%
Net realized losses on sale of other
real estate and repossessions (143,292) -- N/A
Other noninterest income 654,427 890,112 -26.48%
Total noninterest income 2,096,975 2,236,747 -6.25%
Total noninterest expense 9,060,854 8,341,740 8.62%
Income tax expense 764,107 220,926 245.87%
------------ ------------
Net income $ 2,824,614 $ 1,873,905 50.73%
PER SHARE
Earnings per common share - Basic $ 0.62 $ 0.41 51.22%
Earnings per common share - Diluted 0.62 0.41 51.22%
Cash Dividends paid 0.40 0.39 2.56%
Book value (end of period) 7.01 6.91 1.45%
SHARES OUTSTANDING
Average - Basic 4,581,958 4,564,741 --
Average - Diluted 4,582,155 4,566,765 --
AT QUARTER END
Total assets $452,898,480 $442,147,590 2.43%
Total assets (average) 434,524,000 425,966,000 2.01%
Other real estate and repossessions 620,270 820,100 -24.37%
Gross loans 239,750,617 227,329,359 5.46%
Allowance for loan losses 2,964,852 2,218,067 33.67%
Net loans 236,785,765 225,111,292 5.19%
Net loans charged off 369,760 784,778 -52.88%
Non-performing loans 4,302,000 1,586,000 171.25%
Average loans 235,204,000 227,722,000 3.29%
Securities and other restricted stock 149,294,407 176,132,794 -15.24%
Shareholders' equity 32,275,339 32,115,558 0.50%
Shareholders' equity (average) 33,323,000 31,571,000 5.55%
STOCK DATA
Market value - last close (end of $ 10.00 $ 11.39 -12.20%
period)
Dividend payout ratio 64.52% 95.12% -32.18%
Price earnings ratio 12.20x 18.67x -34.68%
KEY PERFORMANCE RATIOS
Return on average assets (ROA) 0.87% 0.59% 0.28%
Return on average equity (ROE) 11.30% 7.91% 3.39%
Net interest margin (FTE) 4.08% 3.07% 1.01%
Interest expense to average assets 2.46% 3.41% -0.95%
Total allowance for loan losses
to nonperforming loans 68.92% 139.85% -70.93%
Total allowance for loan losses
to total loans 1.24% 0.98% 0.26%
Nonperforming loans to total loans 1.79% 0.70% 1.09%
Nonperforming assets to total assets 1.09% 0.54% 0.55%
Net charge-offs to average loans 0.16% 0.34% -0.18%
Equity to assets at period end 7.13% 7.26% -0.14%
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.