MARTINS FERRY, Ohio,
April 24, 2019 /PRNewswire/ -- United
Bancorp, Inc. (NASDAQ: UBCP), reported net income of $1,614,000 and diluted earnings per share of
$0.28 for the three months ended
March 31, 2019, as compared to
$1,148,000 and $0.23 respectively for 2018. These
year-over-year improvements in UBCP's earnings are directly related
to the Company executing its strategic vision to achieve profitable
growth by growing in both an organic fashion and through acquiring
other like-minded community banking organizations.
Randall M. Greenwood, Senior Vice
President, CFO and Treasurer remarked, "We are pleased to report on
our solid financial performance for the three-month period ended
March 31, 2019. Our Company had
an increase in net income of $466,000, or 40.6%, on a year-over-year basis at
the end of this most recently completed quarter. This
increase in earnings is strongly correlated to the strong organic
and acquisition-related growth that our Company experienced during
the past twelve months. From an acquisition perspective (and,
as previously reported), we acquired Powhatan Point Community
Bancshares in the fourth quarter of last year and the merger is now
completed… both financially and operationally. Even with the
issuance of common shares to facilitate this purchase, our diluted
earnings per share was $0.28 versus
$0.23 the prior year, an increase of
21.7%. The combination of this acquisition and the strong
organic growth that we achieved this past year facilitated the
increase in the level of our Company's higher-yielding earning
assets by $112.5 million, or 25.2%,
on a year-over-year basis. This growth in earning assets was
divided between steady growth in our Company's loan portfolio,
which increased by $43.4 million or
11.7%, and solid growth in our investment portfolio, with
securities and other restricted stock increasing by $69.1 million or 92%. With our increased
level of higher-yielding earning assets, our Company saw a
year-over-year increase in the level of interest income that it
generated of $1.7 million or 36.6%."
Greenwood further stated, "In order to fund this strong growth
in our earning assets--- while improving our overall levels of
profitability--- our Company needed to attract a substantial level
of cost effective funding. We achieved this by successfully
growing our lower-cost, retail balances (consisting of noninterest
bearing and interest bearing demand deposits and savings deposits)
by $91.6 million, or 27%,
year-over-year. The remaining growth in deposits came in the
area of time deposits (consisting of certificates of deposit or
term funding), which increased by $43.3
million since March 2018. By funding our above-peer
growth in earning assets primarily with lower-costing retail
funding this past year--- even though we operated in a rising rate
environment; wherein, the Federal Open Market Committee (FOMC)
increased the target rate for Federal funds by 1.0% over the course
of the year--- our Company was able to maintain its solid net
interest margin. For the three months ended March 31, 2019, our net interest margin was
3.80%, compared to 3.86% for the same period in 2018."
Greenwood continued, "From a qualitative perspective, we have
successfully maintained overall strength and stability within our
loan portfolio. Year-over-year, our Company continues to have
very solid credit quality-related metrics supported by a relatively
low level of nonaccrual loans, which was approximately $1.6 million, or 0.38 percent of total loans at
March 31, 2019, compared to
$1.4 million at March 31, 2018, an increase of $200,000. Further--- net loans charged off,
excluding overdrafts, was $18,000 for
the three months ended March 31,
2019, which is a decrease of $14,000 from the previous year. We are very
satisfied with the continued strong performance of our loan
portfolio from a credit quality perspective. With the
anticipation of our economy remaining fundamentally sound in the
near to intermediate term, we anticipate that this trend will
continue in the current year."
Greenwood concluded, "Considering that we anticipate our earning
assets to continue growing at very acceptable levels and our
overall credit quality to remain very solid, we strongly expect
that we will be able to continue growing our earnings at the
double-digit level that we experienced in the first quarter of this
year throughout the course of 2019."
Scott A. Everson, President and
CEO stated, "We are extremely gratified to report on the strong
earnings that our Company produced for the first quarter of
2019. We greatly benefited from the positive execution of our
strategic plan, which calls for us to grow through acquiring other
like-minded community banking organizations and capitalizing on
prudent, yet profitable, organic opportunities. Over the
course of the past twelve months, we had success in both of these
key areas on which we keenly focus. By profitably growing our
Company, we achieved two milestones at March
31, 2019. One milestone is that for the first time in
our history, our Company's first quarter net income exceeded
$1.6 million. The second
milestone is that, for the first time, our Company's total assets
surpassed the $600 million threshold…
finishing the quarter at $621
million, an increase of $132.6
million or 27.2% year-over-year. Excitingly, we are
well on our way to achieving our current vision of having assets in
excess of $1.0 billion within the
course of the next few years and we strongly anticipate that we
will continue to see our Company produce record levels of core
earnings for the foreseeable future."
Everson continued, "By continuing to utilize the 'playbook' that
we did last year to achieve profitable growth, we are very
optimistic about our future prospects. In addition, we will
continue focusing on building our infrastructure (or, foundation)
to support further growth while achieving greater
efficiencies. As we have previously stated, we are strongly
committed to remaining relevant within our industry by investing in
our technology and origination/service platforms. Ultimately,
our vision is to become an omnichannel bank--- by having
complete channel integration and offering mobility to our
customers--- thereby, serving them on their terms and through
their preferred channels. We have started this initiative and
believe that, for a community-minded bank, we will have a complete
digital solution that will be highly appealing to our target
clientele within the next year or two. Coupling this
investment in technology with continued investment in growing our
Company through acquisition and new branch construction in key
complimentary markets, we firmly believe that we can continue to
grow at acceptable levels while remaining very profitable.
Even with the high level of growth that we experienced over the
course of the past twelve months, we continued to maintain our
overall profitability. With our record earnings in the first
quarter, our Company had a return on equity (ROE) of 12.0% and a
return on assets (ROA) of 1.08% for the three months ended,
March 31, 2019. We have stated
for many quarters that our goal is to profitably grow our
Company. We are extremely delighted that we are presently
accomplishing this."
Everson concluded, "Our primary foci are rewarding our
shareholders by paying a very solid cash dividend while driving
their shareholder value in our Company. In the first quarter
of this year, we increased our cash dividend payout from
$0.13 to $0.1325 which, on a forward basis, produces a
dividend yield of 4.88% based on our closing price as of the most
recent quarter end. Regarding our present market valuation,
on a forward basis we are currently trading at a price to earnings
multiple of 9.7 times. With our market sector trading more in
the range of 13.5 times at present, we are highly optimistic that
we will see a higher market valuation in future periods… assuming
that we continue to drive our earnings at the levels we have seen
and currently project. Overall, we are extremely pleased with
the direction that we are going and the results that we are
producing. We continue to be highly optimistic about our
future potential and look forward to realizing this upside
potential in future periods!"
United Bancorp, Inc. is headquartered in Martins Ferry, Ohio and has total assets of
$621.0 million and total
shareholder's equity of $53.8 million
as of March 31, 2019. Through
its single bank charter, Unified Bank, the Company has
nineteen banking offices that serve the Ohio Counties of Athens, Belmont, Carroll, Fairfield, Harrison, Jefferson and Tuscarawas. The Company also operates a Loan
Production Office in Wheeling, WV.
United Bancorp, Inc. 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 carry forward-looking statements,
whether as a result of new information, future events or
otherwise.
|
UNITED BANCORP,
INC. (UBCP)
|
|
At or for the
Quarter Ended
|
|
|
|
|
|
March
31,
|
|
March
31,
|
|
%
|
|
$
|
|
2019
|
|
2018
|
|
Change
|
|
Change
|
Earnings
|
|
|
|
|
|
|
|
Interest income on
loans
|
$
5,045,302
|
|
$
4,112,870
|
|
22.67%
|
|
$
932,432
|
Loan fees
|
190,316
|
|
215,237
|
|
-11.58%
|
|
$
(24,921)
|
Interest income on
securities
|
1,079,566
|
|
296,756
|
|
263.79%
|
|
$
782,810
|
Total interest income
|
6,315,184
|
|
4,624,863
|
|
36.55%
|
|
$
1,690,321
|
Total interest expense
|
1,207,188
|
|
523,605
|
|
130.55%
|
|
$
683,583
|
Net interest income
|
5,107,996
|
|
4,101,258
|
|
24.55%
|
|
$
1,006,738
|
Provision for loan losses
|
90,000
|
|
57,000
|
|
57.89%
|
|
$
33,000
|
Net interest income after provision for loan losses
|
5,017,996
|
|
4,044,258
|
|
24.08%
|
|
$
973,738
|
Service charge on deposit account
|
713,294
|
|
630,589
|
|
13.12%
|
|
$
82,705
|
Net realized gains on sale of loans
|
3,804
|
|
14,220
|
|
-73.25%
|
|
$
(10,416)
|
Other noninterest income
|
227,850
|
|
235,346
|
|
-3.19%
|
|
$
(7,496)
|
Total noninterest income
|
944,948
|
|
880,155
|
|
7.36%
|
|
$
64,793
|
Total noninterest expense
|
4,162,328
|
|
3,578,562
|
|
16.31%
|
|
$
583,766
|
Income tax expense
|
187,008
|
|
198,299
|
|
-5.69%
|
|
$
(11,291)
|
Net income
|
$
1,613,608
|
|
$
1,147,552
|
|
40.61%
|
|
$
466,056
|
Key performance
data
|
|
|
|
|
|
|
|
Earnings per common share - Basic
|
$
0.28
|
|
$
0.23
|
|
21.74%
|
|
$
0.050
|
Earnings per common share - Diluted
|
0.28
|
|
0.23
|
|
21.74%
|
|
$
0.050
|
Cash dividends paid
|
0.1325
|
|
0.130
|
|
1.92%
|
|
$
0.00250
|
Stock
data
|
|
|
|
|
|
|
|
Dividend payout ratio
|
47.32%
|
|
59.09%
|
|
-11.77%
|
|
|
Price earnings ratio
|
9.69
|
x
|
14.72
|
x
|
-34.17%
|
|
|
Market price to book value
|
118%
|
|
147%
|
|
-19.68%
|
|
|
Annualized yield based on quarter end close
|
4.88%
|
|
4.02%
|
|
21.39%
|
|
|
Market value - last close (end of period)
|
10.85
|
|
12.95
|
|
-16.22%
|
|
|
Book value (end of period)
|
9.19
|
|
8.81
|
|
4.31%
|
|
|
Shares
Outstanding
|
|
|
|
|
|
|
|
Average - Basic
|
5,515,418
|
|
4,874,479
|
|
--------
|
|
|
Average - Diluted
|
5,515,418
|
|
4,874,479
|
|
--------
|
|
|
Common stock, shares issued
|
5,897,227
|
|
5,560,304
|
|
--------
|
|
|
Shares held as treasury stock
|
29,624
|
|
5,744
|
|
--------
|
|
|
Return on average assets (ROA)
|
1.08%
|
|
1.00%
|
|
0.08%
|
|
|
Return on average equity (ROE)
|
12.00%
|
|
10.38%
|
|
1.63%
|
|
|
At quarter
end
|
|
|
|
|
|
|
|
Total assets
|
$
621,007,755
|
|
$
488,376,569
|
|
27.16%
|
|
$
132,631,186
|
Total assets (average)
|
599,312,000
|
|
461,300,000
|
|
29.92%
|
|
$
138,012,000
|
Cash and due from Federal
Reserve Bank
|
32,692,099
|
|
14,770,515
|
|
121.33%
|
|
$
17,921,584
|
Average cash and due from
Federal Reserve Bank
|
21,723,000
|
|
14,043,000
|
|
54.69%
|
|
$
7,680,000
|
Securities and other
restricted stock
|
144,329,961
|
|
75,228,928
|
|
91.85%
|
|
$
69,101,033
|
Average securities and other
restricted stock
|
131,402,000
|
|
52,518,000
|
|
150.20%
|
|
$
78,884,000
|
Other real estate and repossessions
|
91,000
|
|
384,630
|
|
-76.34%
|
|
$
(293,630)
|
Gross loans
|
413,896,086
|
|
370,485,374
|
|
11.72%
|
|
$
43,410,712
|
Allowance for loan losses
|
(2,083,480)
|
|
(2,125,369)
|
|
-1.97%
|
|
$
41,889
|
Net loans
|
411,812,606
|
|
368,360,005
|
|
11.80%
|
|
$
43,452,601
|
Average loans
|
412,671,000
|
|
366,173,000
|
|
12.70%
|
|
$
46,498,000
|
Net loans charged-off
|
18,420
|
|
32,376
|
|
-43.11%
|
|
$
(13,956)
|
Net overdrafts charged-off
|
30,988
|
|
21,493
|
|
44.18%
|
|
$
9,495
|
Total net charge offs
|
49,408
|
|
53,869
|
|
-8.28%
|
|
$
(4,461)
|
Nonaccrual loans
|
1,576,045
|
|
1,395,363
|
|
12.95%
|
|
$
180,682
|
Loans past due 30+ days (excludes non accrual loans)
|
1,953,368
|
|
1,999,059
|
|
-2.29%
|
|
$
(45,691)
|
Total Deposits
|
|
|
|
|
|
|
|
Noninterest bearing demand
|
102,447,401
|
|
66,418,796
|
|
54.24%
|
|
$
36,028,605
|
Interest
bearing demand
|
212,620,075
|
|
183,544,936
|
|
15.84%
|
|
$
29,075,139
|
Savings
|
110,923,522
|
|
84,474,961
|
|
31.31%
|
|
$
26,448,561
|
Time <
$250,000
|
94,268,487
|
|
63,783,823
|
|
47.79%
|
|
$
30,484,664
|
Time >
$250,000
|
18,671,486
|
|
5,840,817
|
|
219.67%
|
|
$
12,830,669
|
Total Deposits
|
538,930,971
|
|
404,063,333
|
|
33.38%
|
|
$
134,867,638
|
Average total deposits
|
526,632,000
|
|
394,127,000
|
|
33.62%
|
|
$
132,505,000
|
Advances from the Federal Home Loan Bank
|
79,505
|
|
8,194,518
|
|
-99.03%
|
|
$
(8,115,013)
|
Overnight
advances
|
-
|
|
8,000,000
|
|
N/A
|
|
$
(8,000,000)
|
Term
advances
|
79,505
|
|
194,518
|
|
-59.13%
|
|
$
(115,013)
|
Repurchase Agreements
|
13,440,580
|
|
15,583,346
|
|
-13.75%
|
|
$
(2,142,766)
|
Shareholders' equity
|
53,786,271
|
|
44,274,344
|
|
21.48%
|
|
$
9,511,927
|
Shareholders' equity (average)
|
53,786,000
|
|
44,211,000
|
|
21.66%
|
|
$
9,575,000
|
Key performance
ratios
|
|
|
|
|
|
|
|
Net interest margin (Federal tax equivalent)
|
3.80%
|
|
3.86%
|
|
-0.06%
|
|
|
Interest expense to average assets
|
0.81%
|
|
0.45%
|
|
0.36%
|
|
|
Total allowance for loan losses
|
|
|
|
|
|
|
|
to nonperforming
loans
|
132.20%
|
|
152.32%
|
|
-20.12%
|
|
|
Total allowance for loan losses
|
|
|
|
|
|
|
|
to total
loans
|
0.50%
|
|
0.57%
|
|
-0.07%
|
|
|
Total
past due and nonaccrual loans to gross loans
|
0.85%
|
|
0.92%
|
|
0.07%
|
|
|
Nonperforming assets to total assets
|
0.27%
|
|
0.36%
|
|
-0.09%
|
|
|
Net
charge-offs to average loans
|
0.05%
|
|
0.06%
|
|
-0.01%
|
|
|
Equity
to assets at period end
|
8.66%
|
|
9.07%
|
|
-0.41%
|
|
|
|
|
|
|
|
|
|
|
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SOURCE United Bancorp, Inc.