MARTINS FERRY, Ohio,
May 14, 2019 /PRNewswire/ -- United
Bancorp, Inc. (NASDAQ: UBCP), the parent company of Unified
Bank, announced today that it has completed the private
placement of $20 million in
fixed-to-floating rate subordinated notes due 2029 (the "Notes").
The Notes have been structured to qualify as Tier 2 capital
under bank regulatory guidelines, and the proceeds from the sale of
the Notes will be utilized to support regulatory capital ratios and
for general corporate purposes, including growth initiatives at
Unified Bank.
President and CEO, Scott A.
Everson, stated, "We are pleased to announce the successful
completion of our subordinated debt offering at terms that are
favorable to our Company. The portion of this new capital
that we downstream to our Bank is leverageable, Tier 1 capital,
which will be integral to fueling the growth that we strategically
envision for our organization. Through the issuance of these
notes, we have cost-effectively increased our capital levels
without diluting our current shareholders."
The Notes will initially bear interest at 6.00% per annum,
beginning May 15, 2019 through
May 14, 2024, payable semi-annually
in arrears. From May 15, 2024
through May 14, 2029, or up to an
early redemption date, the interest rate shall reset quarterly to
an interest rate per annum equal to the then current three-month
LIBOR plus 362.5 basis points, payable quarterly in arrears.
Beginning on May 15, 2024 through
maturity, the Notes may be redeemed, at United Bancorp's option, on
any scheduled interest payment date. The Notes will mature on
May 15, 2029.
Sandler O'Neill + Partners, L.P., served as the sole placement
agent and was advised by Holland
& Knight, LLP. United Bancorp, Inc. was advised by
Shumaker, Loop & Kendrick, LLP.
The Notes have not been registered under the Securities Act of
1933, as amended, or any state securities laws and may not be
offered or sold in the United
States absent registration or an applicable exemption from
registration requirements. This press release does not constitute
an offer to sell, or the solicitation of an offer to buy, any
security.
About United Bancorp, Inc.
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.
Forward Looking Statements
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.
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SOURCE United Bancorp, Inc.