EX-99 2 k09513exv99.txt PRESS RELEASE DATED OCTOBER 27, 2006 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: 10:00 AM October 27, 2006 SUBJECT: UNITED BANCORP, INC. REPORTS EARNINGS PER SHARE OF $0.10 FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2006 AND $0.33 FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006 MARTINS FERRY, OHIO --- United Bancorp, Inc. (NASDAQ: UBCP), headquartered in Martins Ferry, Ohio reported earnings of $403,000 for the three months ended September 30, 2006 compared to $828,000 for the three months ended September 30, 2005. On a per share basis, basic earnings were $0.10 for the three months ended September 30, 2006 compared to $0.20 for the three months ended September 30, 2005. Year to date earnings for the nine months ended September 30, were $0.33 per share in 2006 compared to $0.60 in 2005. UBCP Chairman, President and CEO James W. Everson stated "we are not pleased with our earnings for the third quarter, particularly with respect to continued write downs at our Community Bank affiliate that have dampened other earnings improvement initiatives of the Company. During the third quarter, our Community Bank affiliate recorded an additional $550,000 of loan loss provision and charged another $67,000 to expense to write-down certain other real estate owned ("OREO") properties to their estimated market value. These two additional expense items reduced the Company's earnings by approximately $0.08 per share after tax for the third quarter. Randall M. Greenwood, Senior Vice President, CFO and Treasurer, of UBCP stated "The Company's nine months earnings in 2006 generated an annualized 0.45% return on assets ("ROA") and a 5.87% return on equity ("ROE"). The Company's earnings for the nine months ended September 30, 2006 were negatively impacted by the provision and charge-offs, as well as by continued pressure on the Company's net interest margin which is a current industry challenge. Without the additional expense items, ROA would have been 0.71% and ROE of 9.34% for the nine months ended September 30, 2006. The net interest margin of the Company continued to decrease during the first nine months of 2006; however, the growth of the loan portfolio of approximately $2.5 million, and an increase in the Company's investment portfolio of $10.7 million did help offset the margin compression. We also continued to see strong deposit growth of approximately $30.4 million, or 9.9%, for the nine months ended September 30, 2006." James W. Everson, Chairman, President & CEO stated, "We are very disappointed with the events that required an additional $550,000 of additional loan loss provision and $67,000 write-down to OREO properties at our Community Bank affiliate during the third quarter. We will continue to focus on improving our earnings at our Community Bank affiliate and will begin taking immediate actions to improve the earnings of the Company. As with much of the financial services industry in general, both of our affiliate banks have experienced compression of net interest margin due to the current flat interest rate environment and the competitive markets in which we operate. We are pleased to report our Citizens Bank affiliate continues to perform in the top quadrant of its peer group, which is helping to sustain our reported earnings." Everson concluded by stating, "We are cautiously optimistic regarding our 4th quarter earnings as we see a more normalized earnings stream as we move forward." United Bancorp, Inc. is headquartered in Martins Ferry, Ohio and is a multi-bank holding company with total assets of approximately $425.3 million and total shareholder's equity of approximately $32.4 million as of June 30, 2006. 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 Capital Market tier of the Nasdaq Stock Market under the symbol UBCP, Cusip #909911109. 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. UNITED BANCORP, INC. MARTINS FERRY, OH Symbol "UBCP"
FOR THE THREE MONTHS ENDED SEPTEMBER 30, ----------------------- % 2006 2005 CHANGE ---------- ---------- ------- EARNINGS Total interest income $ 6,552 $ 5,658 15.80% Total interest expense 3,385 2,404 40.81% ---------- ---------- Net interest income 3,167 3,254 -2.67% Provision for loan losses 652 68 858.82% Service charges on deposit accounts 350 343 2.04% Net realized (losses)/gains of sales on securities -- (19) -100.00% Net realized gains on sale of loans 4 4 0.00% Other noninterest income 345 246 40.24% Total noninterest income 699 574 21.78% Total noninterest expense 2,773 2,664 4.09% Income tax expense 38 268 -85.82% ---------- ---------- Net income 403 828 -51.33% PER SHARE Earnings per common share - Basic $ 0.10 $ 0.20 -50.00% Earnings per common share - Diluted 0.10 0.20 -50.00% Cash Dividends paid 0.13 0.12 8.33% SHARES OUTSTANDING Average - Basic 4,160,687 4,243,151 -- Average - Diluted 4,160,834 4,243,694 --
FOR THE NINE MONTHS ENDED SEPTEMBER 30, ----------------------- % 2006 2005 CHANGE ---------- ---------- ------- EARNINGS Total interest income $ 18,856 $ 16,326 15.50% Total interest expense 9,371 6,539 43.31% ---------- ---------- Net interest income 9,485 9,787 -3.09% Provision for loan losses 1,056 328 221.95% Service charges on deposit accounts 1,024 972 5.35% Net realized losses of sales on securities (350) (25) 1300.00% Net realized gains on sale of loans 14 16 -12.50% Other noninterest income 903 766 17.89% Total noninterest income 1,591 1,729 -7.98% Total noninterest expense 8,503 7,924 7.31% Income tax expense 125 735 -82.99% ---------- ---------- Net income $ 1,392 $ 2,529 -44.96% PER SHARE Earnings per common share - Basic $ 0.33 $ 0.60 -45.00% Earnings per common share - Diluted 0.33 0.60 -45.00% Cash Dividends paid 0.39 0.36 8.33% Book value (end of period) 7.85 8.06 -2.60% SHARES OUTSTANDING Average - Basic 4,172,491 4,227,686 -- Average - Diluted 4,172,994 4,228,931 -- AT QUARTER END Total assets $ 425,346 $ 405,694 4.84% Total assets (average) 416,269 401,049 3.80% Other real estate and repossessions 274 1,140 -75.96% Gross loans 237,066 230,588 2.81% Allowance for loan losses 3,474 2,942 18.08% Net loans 233,592 227,646 2.61% Net loans charged off 487 381 27.82% Non-performing loans 1,299 974 33.37% Average loans 234,210 222,686 5.17% Total deposits 337,302 306,915 9.90% Securities and other restricted stock 157,207 148,250 6.04% Shareholders' equity 32,408 33,904 -4.41% Shareholders' equity (average) 31,606 32,720 -3.40% STOCK DATA Market value - last close (end of period) $ 10.94 $ 11.32 -3.34% Dividend payout ratio 118.18% 60.00% 96.97% Price earnings ratio 17.93x 12.86x 39.44% KEY PERFORMANCE RATIOS Return on average assets (ROA) 0.45% 0.84% -46.92% Return on average equity (ROE) 5.87% 10.31% -43.04% Net interest margin (FTE) 3.40% 3.69% -7.86% Interest expense to average assets 3.00% 2.17% 8.49% Total allowance loan losses to nonperforming loans 267.44% 302.05% -11.46% Total allowance loan losses to total loans 1.47% 1.28% 14.86% Nonperforming loans to total loans 0.55% 0.42% 29.72% Nonperforming assets to total assets 0.37% 0.52% -29.03%