EX-99 2 k21271exv99.txt PRESS RELEASE DATED NOVEMBER 1, 2007 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: 12:00 PM November 1, 2007 SUBJECT: UNITED BANCORP, INC. REPORTS EARNINGS PER SHARE OF $0.41PER SHARE FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007, AN INCREASE OF 37% MARTINS FERRY, OHIO *** United Bancorp, Inc. (NASDAQ: UBCP), headquartered in Martins Ferry, Ohio reported earnings of $1,874,000 and $1,392,000 for the nine months ended September 30, 2007 and 2006, respectively. On a per share basis, the Company's basic earnings were $0.41 for 2007, as compared to $0.30 for 2006, an increase of 36.7%. Earnings per share data for 2006 gives effect to the 10% stock split paid in the form of a dividend in December 2006. Third quarter 2007 earnings were $0.09 compared to $0.09 in for the third quarter of 2006. Randall M. Greenwood, Senior Vice President, CFO and Treasurer remarked, "The Company's nine month earnings in 2007 generated an annualized 0.59% return on average assets ("ROA") and an 7.9% return on average equity ("ROE") compared to 0.45% ROA and 5.9% ROE for the comparable nine month period in 2006. With the recent more positive slope of the treasury yield curve and the lower cost of short term funds, we are projecting improvement in the Company's net interest margin in the fourth quarter of 2007. Service charge income on deposit accounts for the nine months ended September 30, 2007 increased $312,000 which reflects the positive impact of a courtesy overdraft program implemented by the Company in late 2006. During the third quarter of 2007, the Company recorded costs of $160,000 relating to the recent charter merger. On an after tax basis, these non recurring expenses amounted to $0.02 per share. Without this item the Company's earnings per share for the three months ended September 30, 2007 would have been $0.11 compared to $0.09 for the third quarter of 2006, an increase of 22.2%." James W. Everson, Chairman, President and Chief Executive Officer stated, "As announced last quarter, we struck July 1st as the start date 'for accounting purposes' of the merger of The Community Bank with and into The Citizens Savings Bank. The 'physical consolidation' of our two charters under the management group of The Citizens Savings Bank was completed on October 31st resulting in a 22% reduction in staffing at The Community Bank division. Our flat third quarter earnings reflect the cost of employee severance payments to accomplish this which should translate into improved earnings moving forward into the fourth and future quarters. As reported in previous releases, we project a normalization of earnings to occur over the next twelve months as a result of enhanced operating and cost efficiencies to be realized from this consolidation. Having merged our bank charters into a single charter and common operating system, we shall save valuable resources and allow each of our offices to enhance our focus on growing our banking franchises by providing the highest level of customer service." United Bancorp, Inc. is headquartered in Martins Ferry, Ohio and is a multi-bank holding company with total assets of approximately $442.1 million and total shareholder's equity of approximately $32.1 million as of September 30, 2007. 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 SEPTEMBER 30, ----------------------- % 2007 2006 CHANGE ---------- ---------- ------- EARNINGS Total interest income $ 6,673 $ 6,552 1.85% Total interest expense 3,807 3,385 12.47% ---------- ---------- Net interest income 2,866 3,167 -9.50% Provision for loan losses 283 652 -56.60% Service charges on deposit accounts 481 350 37.43% Net realized (losses)/gains of sales on securities -- -- Net realized gains on sale of loans 13 4 225.00% Other noninterest income 291 345 -15.65% Total noninterest income 785 699 12.30% Total noninterest expense 3,005 2,773 8.37% Income tax (benefit) expense (29) 38 -176.32% ---------- ---------- Net income 392 403 -2.73% PER SHARE Earnings per common share - Basic $ 0.09 $ 0.09 0.00% Earnings per common share - Diluted 0.09 0.09 0.00% Cash Dividends paid 0.13 0.12 8.33% SHARES OUTSTANDING Average - Basic 4,579,381 4,576,756 -- Average - Diluted 4,581,455 4,576,917 --
FOR THE NINE MONTHS ENDED SEPTEMBER 30, ----------------------- % 2007 2006 CHANGE ---------- ---------- ------- EARNINGS Total interest income $ 19,747 $ 18,856 4.73% Total interest expense 10,889 9,371 16.20% ---------- ---------- Net interest income 8,858 9,485 -6.61% Provision for loan losses 657 1,056 -37.78% Service charges on deposit accounts 1,336 1,024 30.47% Net realized gains (losses) security transactions 1 (350) -100.29% Net realized gains on sale of loans 9 14 -35.71% Other noninterest income 890 903 -1.44% Total noninterest income 2,236 1,591 40.54% Total noninterest expense 8,342 8,503 -1.89% Income tax expense 221 125 76.80% ---------- ---------- Net income $ 1,874 $ 1,392 34.63% PER SHARE Earnings per common share - Basic $ 0.41 $ 0.30 36.67% Earnings per common share - Diluted 0.41 0.30 36.67% Cash Dividends paid 0.39 0.35 11.43% Book value (end of period) 6.91 7.14 -3.22% SHARES OUTSTANDING Average - Basic 4,564,741 4,589,740 -- Average - Diluted 4,566,765 4,590,293 -- AT QUARTER END Total assets $ 442,148 $ 425,346 3.95% Total assets (average) 425,966 416,269 2.33% Other real estate and repossessions 820 274 199.27% Gross loans 227,329 237,066 -4.11% Allowance for loan losses 2,218 3,474 -36.15% Net loans 225,111 233,592 -3.63% Net loans charged off 784 486 61.32% Non-performing loans 1,586 1,299 22.09% Average loans 227,722 234,210 -2.77% Total deposits 349,687 337,302 3.67% Securities and other restricted stock 176,133 157,207 12.04% Shareholders' equity 32,116 32,408 -0.90% Shareholders' equity (average) 31,571 31,606 -0.11% STOCK DATA Market value - last close (end of period) $ 11.39 $ 9.95 14.47% Dividend payout ratio 95.12% 118.18% -19.51% Price earnings ratio 18.67x 22.10x -342.79% KEY PERFORMANCE RATIOS Return on average assets (ROA) 0.59% 0.45% 0.14% Return on average equity (ROE) 7.91% 5.87% 2.04% Net interest margin (FTE) 3.07% 3.21% -0.14% Interest expense to average assets 3.41% 3.00% 0.41% Total allowance loan losses to nonperforming loans 139.85% 267.44% -127.59% Total allowance loan losses to total loans 0.98% 1.47% -0.49% Nonperforming loans to total loans 0.70% 0.55% 0.15% Nonperforming assets to total assets 0.54% 0.37% 0.17%
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.