-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KAqAZxVoHNc0s5XTRKWPRVXEXzkInjzwnzL9Nnnb2Y/wAZpykgvaKVro0vnCV/6P QQxHf6nZHoPvapPNfWzVtQ== 0000950124-07-002213.txt : 20070417 0000950124-07-002213.hdr.sgml : 20070417 20070417143147 ACCESSION NUMBER: 0000950124-07-002213 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070417 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070417 DATE AS OF CHANGE: 20070417 FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNITED BANCORP INC /MI/ CENTRAL INDEX KEY: 0000775345 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 382606280 STATE OF INCORPORATION: MI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-16640 FILM NUMBER: 07770458 BUSINESS ADDRESS: STREET 1: 205 E CHICAGO BLVD STREET 2: PO BOX 248 CITY: TECUMSEH STATE: MI ZIP: 49286 BUSINESS PHONE: 5174238373 MAIL ADDRESS: STREET 1: 205 E CHICAGO BLVD STREET 2: P O BOX 248 CITY: TECUMSEH STATE: MI ZIP: 49286 8-K 1 k14226e8vk.txt CURRENT REPORT, DATED APRIL 17, 2007 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 April 17, 2007 (Date of Report (Date of Earliest Event Reported)) UNITED BANCORP, INC. ------------------------------------------------------ (Exact name of registrant as specified in its charter) MICHIGAN 0-16640 38-2606280 - --------------------------------- ----------- ------------------- (State or other jurisdiction Commission (I.R.S. Employer of incorporation or organization) File Number Identification No.) 205 E. CHICAGO BOULEVARD, TECUMSEH, MI 49286 -------------------------------------------- (Address of principal executive offices) (517) 423-8373 --------------------------------------------------- (Registrant's telephone number including area code) N/A ---------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION AND ITEM 7.01 REGULATION FD DISCLOSURE On April 17, 2007, registrant announced results of operations for the quarter ended March 31, 2007 as set forth in the press release included as Exhibit 99.1, which is incorporated herein by reference. ITEM 8.01 OTHER EVENTS On April 17, 2007, registrant announced the declaration of a cash dividend and a stock dividend, as set forth in the press release included as Exhibit 99.1, which is incorporated herein by reference. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS (c) EXHIBITS 99.1 Press Release dated April 17, 2007 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. United Bancorp, Inc. (Registrant) By: Date: April 17, 2007 /S/ Dale L. Chadderdon --------------------------------- Dale L. Chadderdon Executive Vice President and Chief Financial Officer 2 EX-99.1 2 k14226exv99w1.txt PRESS RELEASE DATED APRIL 17, 2007 EXHIBIT 99.1 UNITED BANCORP, INC. FOR IMMEDIATE RELEASE CONTACT: Robert K. Chapman April 17, 2007 United Bancorp, Inc. DRAFT 734-214-3801 UNITED BANCORP, INC. DECLARES CASH AND STOCK DIVIDENDS AND ANNOUNCES FIRST QUARTER 2007 EARNINGS TECUMSEH, MI - United Bancorp, Inc. (UBMI) announced that it has increased its quarterly dividend amount to $0.40 per share and has declared a 100% stock dividend. In addition, the Company reported net income of $1.726 million or $0.65 per share for the quarter ended March 31, 2007, compared to $2.145 million or $0.81 per share for the first quarter of 2006 and $2.197 million or $0.83 per share for the fourth quarter of 2006. Cash and Stock Dividends Declared Robert K. Chapman, President and Chief Executive Officer of United Bancorp, Inc. ("United") announced that the board of directors of United Bancorp, Inc. has declared a cash dividend of $0.40 per share payable April 30, 2007 to shareholders of record April 20, 2007. This dividend represents an increase of 5.3%, or $0.02 per share over the cash dividend paid in the first quarter of this year. In addition, the board of directors of United has declared a 100% stock dividend payable May 31, 2007 to shareholders of record May 11, 2007. As a result of this stock dividend, shareholders of United Bancorp, Inc. stock will receive one additional share of stock for each share they currently own. Financial Performance Additions to the Company's allowance for loan losses reduced net income during the first quarter of 2007, resulting in a decline in net income from prior quarters. Net interest income for the first quarter of 2007 was up over the same quarter last year. Noninterest income continues to improve, and expenses are down from the same period last year. At the same time, United continues to grow the company, and balances in the loan portfolio have increased by $56.0 million from a year ago. Mr. Chapman noted that "While we experienced a decline in earnings as a result of the additional provision for loan loss, our core earnings remain strong." The Company's interest income was up 12.0% in the first quarter compared to the first quarter of 2006 while interest expense increased by 32.2%, and net interest income increased by 1.2%. During the first quarter of this year, net interest margin was 4.30%, down from 4.52% for the same period of 2006. Chapman commented, "We continue to face the challenge of a flat to inverted yield curve and the resulting negative pressure on our net interest income." In the first quarter of 2007, the Company's provision for loan loss was $1.509 million, up from $365,900 for the first quarter of 2006. The increase in provision relates to the Company's recognition of impairment of a few large business loans and the Company's corresponding increase in the amount of its Allowance for Loan Losses at March 31, 2007. Total noninterest income for the first quarter increased $318,100 over the same quarter of 2006, representing an improvement of 11.0% for the period. Continued improvement in income from fees, wealth management services and mortgage loan sales and servicing has contributed to the improvement in noninterest income. Total noninterest expenses for the period were down 1.4% from the same quarter last year. While some expense categories were higher than the prior year, the increases were more than offset by declines in compensation expense and costs of external data processing. 3 Financial Condition Loans totaled $615.1 million at March 31, 2007, up from $559.1 million at March 31, 2006. Deposit growth for the past year was somewhat slower than loan growth, but new deposits of $33.2 million brought the quarter end total deposits to $636.4 million. Total consolidated assets at March 31, 2007 were $760.5 million, up from $718.3 million at the end of the first quarter of 2006. Loan growth for the past twelve months was 10.0%, with deposit growth of 5.5% and total asset growth of 5.9%. About United Bancorp, Inc. United Bancorp, Inc. is an independent financial holding company that is the parent company for United Bank & Trust and United Bank & Trust - Washtenaw. The subsidiary banks operate seventeen banking offices in Lenawee, Washtenaw and Monroe counties, and United Bank & Trust maintains an active wealth management group that serves the Company's market area. For more information, visit the company's website at www.ubat.com. UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOLLOW. Safe Harbor Statement This news release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21 B of the Securities Act of 1934, as amended, which are intended to be safe harbors created thereby. Those statements are based on management's beliefs, assumptions, current expectations, estimates and projections about the financial services industry, the economy, and about the Company itself. Words such as "anticipate," "believe," "determine," "estimate," "expect," "forecast," "intend," "is likely," "plan," "project," "opinion," variations of such terms, and similar expressions are intended to identify such forward-looking statements. The presentations and discussions of the provision and allowance for loan losses presented in this report are inherently forward-looking statements in that they involve judgments and statements of belief as to the outcome of future events. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions that are difficult to predict with regard to timing, extent, likelihood, and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed or forecasted in such forward-looking statements. Internal and external factors that may cause such a difference include changes in economic conditions in the market area the Company conducts business which could materially impact credit quality trends, interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking laws and regulations; changes in tax laws; changes in prices, levies, and assessments; the impact of technological advances; governmental and regulatory policy changes; the outcomes of pending and future litigation and contingencies; trends in customer behavior and customer ability to repay loans; software failure, errors or miscalculations; and the vicissitudes of the national economy. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events, or otherwise. ### 4 UNITED BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Dollars in thousands except per share data)
March 31, December 31, March 31, 2007 2006 2006 -------------- -------------- -------------- ASSETS Cash and demand balances in other banks $ 18,348 $ 17,606 $ 20,430 Federal funds sold 4,020 3,770 12,000 -------------- -------------- -------------- Total cash and cash equivalents 22,368 21,376 32,430 Securities available for sale 90,991 95,811 95,749 Loans held for sale 3,258 5,772 316 Portfolio loans Personal 92,575 91,817 81,087 Business 434,485 420,433 402,755 Residential Mortgage 84,786 83,741 74,906 -------------- -------------- -------------- Total loans 615,104 601,763 559,064 Less allowance for loan losses 9,229 7,849 6,581 -------------- -------------- -------------- Net loans 605,875 593,914 552,483 Premises and equipment, net 13,358 13,215 12,737 Goodwill 3,469 3,469 3,469 Bank owned life insurance 11,605 11,499 11,190 Accrued interest receivable and other assets 12,808 11,705 10,268 -------------- -------------- -------------- TOTAL ASSETS $ 760,473 $ 750,989 $ 718,326 ============== ============== ============== LIABILITIES Deposits Non-interest bearing $ 81,565 $ 81,373 $ 88,943 Interest bearing deposits 554,847 546,629 514,234 -------------- -------------- -------------- Total deposits 636,413 628,002 603,177 Short term borrowings 77 77 76 FHLB Advances outstanding 42,627 40,945 39,228 Accrued interest payable and other liabilities 6,079 7,430 5,983 -------------- -------------- -------------- TOTAL LIABILITIES 685,195 676,453 648,464 -------------- -------------- -------------- SHAREHOLDERS' EQUITY Common stock and paid in capital, no par value; 5,000,000 shares authorized; 2,621,286, 2,623,716 and 2,499,038 shares issued and outstanding, respectively 71,029 71,075 63,431 Retained earnings 4,110 3,393 6,839 Accumulated other comprehensive income (loss), net of tax 137 68 (409) -------------- -------------- -------------- TOTAL SHAREHOLDERS' EQUITY 75,277 74,536 69,861 -------------- -------------- -------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 760,473 $ 750,989 $ 718,326 ============== ============== ============== Book value per share of common stock $ 28.72 $ 28.41 $ 26.62
(Per share values restated to reflect 2006 stock dividend) 5 UNITED BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands except per share data)
Year to Date ------------------------------- March 31, March 31, 2007 2006 -------------- -------------- INTEREST INCOME Interest and fees on loans $ 11,153.2 $ 10,075.7 Interest on investment securities 1,074.0 884.4 Interest on federal funds sold 126.3 70.9 -------------- -------------- Total interest income 12,353.5 11,031.0 INTEREST EXPENSE Interest on deposits 4,558.0 3,343.8 Interest on fed funds purchased 6.8 40.4 Interest on FHLB advances 496.7 444.0 -------------- -------------- Total interest expense 5,061.5 3,828.2 -------------- -------------- NET INTEREST INCOME 7,292.0 7,202.8 Provision for loan losses 1,508.7 365.9 -------------- -------------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 5,783.3 6,836.9 -------------- -------------- NONINTEREST INCOME Service charges on deposit accounts 810.1 763.6 Trust & Investment fee income 959.9 992.8 Gains (losses) on securities transactions 0.8 (1.7) Income from loan sales and servicing 376.1 181.7 ATM, debit and credit card fee income 471.7 430.8 Sales of nondeposit investment products 254.4 226.7 Income from bank-owned life insurance 105.6 98.6 Other income 230.5 198.5 -------------- -------------- Total noninterest income 3,209.1 2,891.0 NONINTEREST EXPENSE Salaries and employee benefits 3,607.5 3,874.2 Occupancy and equipment expense 1,220.8 1,091.0 External data processing 291.2 350.0 Advertising and marketing 360.9 269.8 Other expense 1,209.3 1,197.7 -------------- -------------- Total noninterest expense 6,689.7 6,782.7 -------------- -------------- INCOME BEFORE FEDERAL INCOME TAX 2,302.7 2,945.2 Federal income tax 576.7 800.6 -------------- -------------- NET INCOME $ 1,726.0 $ 2,144.6 ============== ============== Basic and diluted earnings per share $ 0.650 $ 0.810
(Earnings per share restated to reflect 2006 stock dividend) 6 UNITED BANCORP, INC. AND SUBSIDIARIES FINANCIAL SUMMARY & SELECTED RATIOS (UNAUDITED) (Dollars in thousands except per share data)
Quarter to Date ---------------------------------------------------------------- March 31, Change -------------------------------- ---------------------------- 2007 2006 Amount Percentage ------------- --------------- -------------- ---------- FINANCIAL SUMMARY Interest Income $ 12,353.5 $ 11,031.0 $ 1,322.5 12.0% Interest Expense 5,061.5 3,828.2 1,233.3 32.2% ------------- --------------- -------------- Net Interest Income 7,292.0 7,202.8 89.2 1.2% Provision for loan losses 1,508.7 365.9 1,142.7 312.3% Non-interest income 3,209.1 2,891.0 318.1 11.0% Non-interest expense 6,689.7 6,782.7 (93.0) -1.4% ------------- --------------- -------------- Income before taxes 2,302.7 2,945.2 (642.6) -21.8% Federal income tax 576.7 800.6 (224.0) -28.0% ------------- --------------- -------------- Net income $ 1,726.0 $ 2,144.6 $ (418.6) -19.5% ============= =============== ============== PERFORMANCE RATIOS Return on average assets (annualized) 0.92% 1.21% -0.29% -24.0% Return on average equity (annualized) 9.35% 12.62% -3.27% -25.9% Net interest margin (tax equivalent) 4.30% 4.52% -0.22% -4.9% Efficiency ratio 62.3% 65.0% -2.78% 4.3% BALANCE SHEET DATA Average earning assets 720,664 676,040 44,624 6.6% Total loans 615,104 559,064 56,040 10.0% Allowance for loan loss 9,229 6,581 2,648 40.2% Average loans 605,872 558,796 47,075 8.4% Total deposits 636,413 603,177 33,236 5.5% Average deposits 632,500 598,105 34,395 5.8% Total assets 760,473 718,326 42,147 5.9% Average assets 758,816 717,888 40,928 5.7% ASSET QUALITY Net charge offs 128 145 (17) -11.9% Non-accrual loans 10,629 4,052 6,576 162.3% Non-performing loans 10,855 5,516 5,339 96.8% Loans over 90 days past due/total loans 0.04% 0.10% -0.06% -63.7% Nonperforming loans/total loans 1.76% 0.99% 0.78% 78.9% Allowance for loan loss/total loans 1.50% 1.18% 0.32% 27.5% Allowance for loan loss/nonperforming loans 85.0% 119.3% -34.3% -28.7% STOCK PERFORMANCE Earnings per share: Basic and diluted $ 0.65 $ 0.81 $ (0.16) -19.7% Market Value: High $ 47.00 $ 58.62 $ (11.62) -19.8% Low $ 43.75 $ 53.04 $ (9.29) -17.5% Close $ 44.10 $ 56.19 $ (12.09) -21.5% Shares outstanding 2,621,286 2,499,038 122,248 4.9% Dividends/share $ 0.38 $ 0.35 $ 0.0280 8.0% Dividend payout ratio 58.5% 43.5% 14.98% 34.4% Price/Earnings ratio (annualized) 17.0x 17.4x (0.39) -2.3% Selling price/Book 153.6% 211.0% -57.5% -27.2% Book Value per share $ 28.72 $ 26.62 $ 2.0936 7.9%
All per-share data is restated to reflect 5% stock dividend in 2006 7 UNITED BANCORP, INC. AND SUBSIDIARIES FINANCIAL SUMMARY & SELECTED RATIOS (UNAUDITED) (Dollars in thousands except per share data)
Quarter Ended ------------------------------------------------------------------------------------- March 31, December 31, September 30, June 30, March 31, 2007 2006 2006 2006 2006 ------------ ------------ ------------- ------------- -------------- FINANCIAL SUMMARY Interest Income $ 12,353.5 12,374.0 12,167.2 11,484.0 11,031.0 Interest Expense 5,061.5 4,950.0 4,739.3 4,285.0 3,828.0 ------------ ------------ ------------- ------------- -------------- Net Interest Income 7,292.0 7,424.0 7,427.9 7,199.0 7,203.0 Provision for loan losses 1,508.7 921.0 396.2 440.0 365.9 Non-interest income 3,209.1 3,110.0 3,122.8 3,051.0 2,890.9 Non-interest expense 6,689.7 6,598.0 6,742.3 6,791.0 6,782.7 ------------ ------------ ------------- ------------- -------------- Income before taxes 2,302.7 3,015.0 3,412.2 3,019.0 2,945.3 Federal income tax 576.7 818.0 967.0 835.0 800.6 ------------ ------------ ------------- ------------- -------------- Net income $ 1,726.0 $ 2,197.0 $ 2,445.2 2,184.0 2,144.7 ============ ============ ============= ============= ============== PERFORMANCE RATIOS Return on average assets (annualized) 0.92% 1.18% 1.32% 1.20% 1.21% Return on average equity (annualized) 9.35% 11.85% 13.52% 12.48% 12.62% Net interest margin (tax equivalent) 4.30% 4.39% 4.43% 4.42% 4.52% Efficiency ratio 62.3% 61.2% 62.6% 64.8% 65.7% BALANCE SHEET DATA Average earning assets 720,664 703,339 695,353 682,805 676,269 Total loans 615,104 601,763 592,382 574,996 559,064 Allowance for loan loss 9,229 7,849 6,994 6,868 6,581 Average loans 605,872 592,948 581,269 565,822 558,796 Total deposits 636,413 628,002 620,772 611,705 603,177 Average deposits 632,500 618,066 615,475 603,511 598,105 Total assets 760,473 750,989 739,896 731,019 718,326 Average assets 758,816 741,678 736,740 723,278 717,888 ASSET QUALITY Net charge offs 128 66 270 153 145 Non-accrual loans 10,629 5,427 2,869 2,620 4,052 Non-performing loans 10,855 6,282 3,028 4,613 5,516 Non-performing assets 11,966 7,360 3,585 5,172 6,134 Loans over 90 days past due/total loans 0.04% 0.14% 0.03% 0.19% 0.10% Nonperforming loans/total loans 1.76% 1.04% 0.51% 0.80% 0.99% Allowance for loan loss/total loans 1.50% 1.30% 1.18% 1.19% 1.18% Allowance for loan loss/non-performing 85.0% 124.9% 231.0% 148.9% 119.3% STOCK PERFORMANCE Earnings per share: Basic and diluted $ 0.65 $ 0.83 $ 0.92 $ 0.82 $ 0.81 Market Value: High $ 47.00 $ 45.00 $ 47.10 $ 56.05 $ 58.62 Low $ 43.75 $ 44.00 $ 43.73 $ 42.77 $ 53.04 Close $ 44.10 $ 45.00 $ 45.00 $ 45.07 $ 56.19 Shares outstanding 2,621,286 2,623,716 2,623,724 2,623,192 2,499,038 Dividends/share $ 0.38 $ 0.38 $ 0.37 $ 0.35 $ 0.35 Dividend payout ratio 58.5% 45.9% 40.1% 42.8% 43.5% Price/Earnings ratio (annualized) 17.0x 13.6x 12.2x 13.7x 17.4x Selling price/Book 153.6% 158.4% 161.1% 166.9% 211.1% Book Value per share $ 28.72 $ 28.41 $ 27.94 $ 27.00 $ 26.62
All per-share data is restated to reflect 5% stock dividend in 2006 8 -----END PRIVACY-ENHANCED MESSAGE-----