MARTINS FERRY, Ohio,
Aug. 2, 2019 /PRNewswire/
-- United Bancorp, Inc. (NASDAQ: UBCP), headquartered in
Martins Ferry, Ohio, reported
diluted earnings per share of $0.57
and net income of $3,260,000 for the
six months ended June 30, 2019, as
compared to $0.46 and $2,360,000, respectively, for the corresponding
six month period in 2018. The Company's diluted earnings per
share for the three months ended June 30,
2019 was $0.29 as compared to
$0.23 to the same period in the
previous year. 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
June 30, 2019 and year-to-date.
For the most recently ended quarter, our Company had an increase in
net income of $434,000, or 35.8%, on
a year-over-year basis. For the six month period ending
June 30, 2019, our Company saw its
net income increase by $900,000, or
38.1%, to a level of $3,260,000---
which is a new earnings record for our company. This increase
in earnings is strongly correlated to the strong organic and
acquisition-related growth that our Company experienced during the
past twelve months. Even with the issuance of common shares
to facilitate our most recent acquisition completed in the fourth
quarter of 2018, our diluted earnings per share was $0.29 versus $0.23
the prior year, an increase of 26.1%. The combination of the
acquisition-related and strong organic growth that we achieved this
past year facilitated the increase in the level of our Company's
higher-yielding earning assets, which grew by $117.2 million, or 24.9%, 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
$45.9 million, or 12.1%, and solid
growth in our investment portfolio, with securities and other
restricted stock increasing by $71.2
million or 78.8%. 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 for the
first six months of 2019 of $3.2
million or 33.2%."
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 $83.3 million, or 24%,
year-over-year. With lower-cost retail balances totaling
$430.1 million as of June 30, 2019, they comprise 79% of total
deposits for the Company. The remaining growth in deposits
came in the area of time deposits (consisting of certificates of
deposit or term funding), which increased by $47.4 million since June 2018. By funding
our above-peer growth in earning assets primarily with
lower-costing retail funding this past year--- even though we have
been operating in a rising rate environment during these past
twelve months; wherein, the Federal Open Market Committee (FOMC)
increased the target rate for Federal funds by 0.75% during that
timeframe --- our Company was able to maintain a very solid net
interest margin which was 3.73% as of the most recent quarter
end."
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 and loans past due 30 plus days,
which were $3.4 million, or 0.79
percent of total loans, at June 30,
2019. Further, net loans charged off, excluding overdrafts,
was $56,000 for the six months ended
June 30, 2019, which is a decrease of
$65,000 from the previous year.
Net charge offs to average loans for the first six months of 2019
was 0.05% versus 0.09% for the same period in 2018. 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 for the foreseeable future."
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 half 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 second quarter and first
half 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,
building new banking centers in key and complimentary markets and
capitalizing on prudent, yet profitable, organic
opportunities. Over the course of the past twelve months, we
had success in these key areas on which we keenly focus. With
the double digit growth that we have experienced during this
timeframe, our Company has produced record earnings. In
addition, we are well on our way to achieving our strategic vision
of growing our assets to a level of $1.0
billion, or greater, which should also help our Company
become more operationally efficient. Excitingly, during the
course of the most recently ended quarter, we announced that our
Company issued $20.0 million in
subordinated debt at very favorable terms. Although this does
not contribute to our Tier I Capital at the corporate-level, it
does add to our Tier I Capital at our bank-level. Having this
new leverageable (or growth) capital at our affiliate bank-level
will greatly aid in helping us attain our lofty goal for growth and
driving our earnings in a positive fashion in future
periods."
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."
Everson further and proudly stated, "On June
18, 2019, our Company announced that it has purchased land
in Moundsville, West Virginia and
has plans to construct a new banking center in this very vibrant
community in the heart of the proposed ethane cracker region.
This will be the Company's first full service office in the
State of West Virginia and this
new location will further enhance our developing footprint in the
Upper Ohio Valley Region (which is our traditional market), and
nicely compliment our recent market expansion in Powhatan Point, Ohio, which is across the Ohio
River from this new and exciting market. 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 six
months of 2019, our Company had a return on equity (ROE) of 11.4%
and a return on assets (ROA) of 1.04% for the six months ended,
June 30, 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 and
second quarter of this year, we increased our cash dividend payout
by $0.0025 per quarter and are
currently paying $0.1350 which, on a
forward basis, produces a dividend yield of 4.70% 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 10.0 times. With
our market sector trading more in the range of 13 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
$648.6 million and total
shareholder's equity of $57.0 million
as of June 30, 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"
|
|
For the Three
Months Ended June 30
|
|
%
|
|
$
|
|
2019
|
|
2018
|
|
Change
|
|
Change
|
Earnings
|
|
|
|
|
|
|
|
Interest income on
loans
|
$
5,109,571
|
|
$
4,341,084
|
|
17.70%
|
|
$
768,487
|
Loan fees
|
288,302
|
|
221,120
|
|
30.38%
|
|
$
67,182
|
Interest income on
securities
|
1,250,230
|
|
545,138
|
|
129.34%
|
|
$
705,092
|
Total interest
income
|
6,648,103
|
|
5,107,342
|
|
30.17%
|
|
$
1,540,761
|
Total interest expense
|
1,468,420
|
|
706,062
|
|
107.97%
|
|
$
762,358
|
Net interest income
|
5,179,683
|
|
4,401,280
|
|
17.69%
|
|
$
778,403
|
Provision for loan losses
|
120,000
|
|
72,000
|
|
66.67%
|
|
$
48,000
|
Net interest income after provision for loan losses
|
5,059,683
|
|
4,329,280
|
|
16.87%
|
|
$
730,403
|
Service charges on deposit accounts
|
693,487
|
|
650,577
|
|
6.60%
|
|
$
42,910
|
Net realized gains on sale of loans
|
9,286
|
|
22,546
|
|
-58.81%
|
|
$
(13,260)
|
Other noninterest income
|
244,278
|
|
214,854
|
|
13.69%
|
|
$
29,424
|
Total noninterest income
|
947,051
|
|
887,977
|
|
6.65%
|
|
$
59,074
|
Total noninterest expense
|
4,171,876
|
|
3,754,331
|
|
11.12%
|
|
$
417,545
|
Earnings before income taxes
|
1,834,858
|
|
1,462,926
|
|
25.42%
|
|
$
371,932
|
Income tax expense
|
188,033
|
|
250,051
|
|
-24.80%
|
|
$
(62,018)
|
Net income
|
$
1,646,825
|
|
$
1,212,875
|
|
35.78%
|
|
$
433,950
|
Per
share
|
|
|
|
|
|
|
|
Earnings per common share - Basic
|
$
0.29
|
|
$
0.23
|
|
26.09%
|
|
|
Earnings per common share - Diluted
|
0.29
|
|
0.23
|
|
26.09%
|
|
|
Cash dividends paid
|
0.1350
|
|
0.13
|
|
3.85%
|
|
|
Shares
Outstanding
|
|
|
|
|
|
|
|
Average - Basic
|
5,520,259
|
|
4,878,254
|
|
--------
|
|
|
Average - Diluted
|
5,520,259
|
|
4,878,254
|
|
--------
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended June 30
|
|
%
|
|
$
|
|
2019
|
|
2018
|
|
Change
|
|
Change
|
Earnings
|
|
|
|
|
|
|
|
Interest income on
loans
|
$
10,240,712
|
|
$
8,456,924
|
|
21.09%
|
|
$
1,783,788
|
Loan fees
|
392,779
|
|
436,357
|
|
-9.99%
|
|
$
(43,578)
|
Interest income on
securities
|
2,329,796
|
|
838,924
|
|
177.71%
|
|
$
1,490,872
|
Total interest
income
|
12,963,287
|
|
9,732,205
|
|
33.20%
|
|
$
3,231,082
|
Total interest expense
|
2,675,608
|
|
1,229,667
|
|
117.59%
|
|
$
1,445,941
|
Net interest income
|
10,287,679
|
|
8,502,538
|
|
21.00%
|
|
$
1,785,141
|
Provision for loan losses
|
210,000
|
|
129,000
|
|
62.79%
|
|
$
81,000
|
Net interest income after provision for loan losses
|
10,077,679
|
|
8,373,538
|
|
20.35%
|
|
$
1,704,141
|
Service charges on deposit accounts
|
1,406,781
|
|
1,281,166
|
|
9.80%
|
|
$
125,615
|
Net realized gains on sale of loans
|
13,090
|
|
36,766
|
|
-64.40%
|
|
$
(23,676)
|
Other noninterest income
|
472,128
|
|
450,200
|
|
4.87%
|
|
$
21,928
|
Total noninterest income
|
1,891,999
|
|
1,768,132
|
|
7.01%
|
|
$
123,867
|
Total noninterest expense
|
8,334,204
|
|
7,332,893
|
|
13.66%
|
|
$
1,001,311
|
Earnings before income taxes
|
3,635,474
|
|
2,808,777
|
|
29.43%
|
|
$
826,697
|
Income tax expense
|
375,041
|
|
448,350
|
|
-16.35%
|
|
$
(73,309)
|
Net income
|
$
3,260,433
|
|
$
2,360,427
|
|
38.13%
|
|
$
900,006
|
Per
share
|
|
|
|
|
|
|
|
Earnings per common share - Basic
|
$
0.57
|
|
$
0.46
|
|
23.91%
|
|
|
Earnings per common share - Diluted
|
0.57
|
|
0.46
|
|
23.91%
|
|
|
Cash dividends paid
|
0.2675
|
|
0.26
|
|
2.88%
|
|
|
Annualized yield based on quarter end close
|
4.65%
|
|
3.85%
|
|
0.80%
|
|
|
Shares
Outstanding
|
|
|
|
|
|
|
|
Average - Basic
|
5,517,852
|
|
4,866,322
|
|
--------
|
|
|
Average - Diluted
|
5,517,852
|
|
4,866,322
|
|
--------
|
|
|
Common stock, shares issued
|
5,939,351
|
|
5,360,304
|
|
--------
|
|
|
Shares held as Treasury
|
42,410
|
|
5,744
|
|
--------
|
|
|
At quarter
end
|
|
|
|
|
|
|
|
Total assets
|
$
648,627,000
|
|
$
514,801,418
|
|
26.00%
|
|
$
133,825,582
|
Total assets (average)
|
629,540,000
|
|
478,263,000
|
|
31.63%
|
|
$
151,277,000
|
Other real estate and repossessions ("OREO")
|
30,000
|
|
615,000
|
|
-95.12%
|
|
$
(585,000)
|
Gross loans
|
425,432,621
|
|
379,512,976
|
|
12.10%
|
|
$
45,919,645
|
Allowance for loan losses
|
2,141,790
|
|
2,080,145
|
|
2.96%
|
|
$
61,645
|
Net loans
|
423,290,831
|
|
377,432,831
|
|
12.15%
|
|
$
45,858,000
|
Non-accrual loans
|
2,814,220
|
|
1,204,256
|
|
133.69%
|
|
$
1,609,964
|
Loans past due 30+ days (excludes non accrual loans)
|
530,648
|
|
1,730,632
|
|
-69.34%
|
|
$
(1,199,984)
|
Net loans charged-off
|
56,179
|
|
120,839
|
|
-53.51%
|
|
$
(64,660)
|
Net overdrafts charged-off
|
54,919
|
|
50,254
|
|
9.28%
|
|
$
4,665
|
Net charge-offs
|
111,098
|
|
171,093
|
|
-35.07%
|
|
$
(59,995)
|
Average loans
|
415,829,000
|
|
370,341,000
|
|
12.28%
|
|
$
45,488,000
|
Cash and due from Federal Reserve Bank
|
20,107,980
|
|
16,308,016
|
|
23.30%
|
|
$
3,799,964
|
Average cash and due from Federal Reserve Bank
|
5,272,000
|
|
13,402,000
|
|
-60.66%
|
|
$
(8,130,000)
|
Securities and other restricted stock
|
161,605,015
|
|
90,376,328
|
|
78.81%
|
|
$
71,228,687
|
Average securities and other restricted stock
|
131,739,000
|
|
67,222,000
|
|
95.98%
|
|
$
64,517,000
|
Total deposits
|
546,246,079
|
|
415,634,366
|
|
31.42%
|
|
$
130,611,713
|
Non interest
bearing demand
|
113,354,585
|
|
68,903,739
|
|
64.51%
|
|
$
44,450,846
|
Interest bearing
demand
|
205,850,931
|
|
194,049,223
|
|
6.08%
|
|
$
11,801,708
|
Savings
|
110,884,640
|
|
83,838,243
|
|
32.26%
|
|
$
27,046,397
|
Time <
$100,000
|
99,092,547
|
|
63,035,793
|
|
57.20%
|
|
$
36,056,754
|
Time >
$100,000
|
17,063,376
|
|
5,807,368
|
|
193.82%
|
|
$
11,256,008
|
Average total
deposits
|
425,893,000
|
|
402,436,000
|
|
5.83%
|
|
$
23,457,000
|
Advances from the Federal Home Loan Bank
|
1,633
|
|
33,768,093
|
|
-100.00%
|
|
$
(33,766,460)
|
Overnight
advances
|
-
|
|
33,600,000
|
|
N/A
|
|
$
(33,600,000)
|
Term
advances
|
1,633
|
|
168,093
|
|
-99.03%
|
|
$
(166,460)
|
Subordinated debt (net of unamortized issuance costs)
|
19,396,372
|
|
-
|
|
N/A
|
|
$
19,396,372
|
Securities sold under agreements to repurchase
|
7,674,291
|
|
12,345,503
|
|
-37.84%
|
|
$
(4,671,212)
|
Stockholders' equity
|
57,005,357
|
|
44,985,506
|
|
26.72%
|
|
$
12,019,851
|
Stockholders' equity (average)
|
57,028,000
|
|
44,986,000
|
|
26.77%
|
|
$
12,042,000
|
Stock
data
|
|
|
|
|
|
|
|
Market value - last close (end of period)
|
$
11.50
|
|
$
13.50
|
|
-14.81%
|
|
|
Dividend payout ratio
|
46.93%
|
|
56.52%
|
|
-9.58%
|
|
|
Price earnings ratio
|
10.09
|
x
|
16.88
|
x
|
3.47%
|
|
|
Book value (end of period)
|
9.73
|
|
9.04
|
|
7.63%
|
|
|
Market price to book value
|
118.19%
|
|
149.34%
|
|
-20.86%
|
|
|
Key performance
ratios
|
|
|
|
|
|
|
|
Return on average assets (ROA)
|
1.04%
|
|
0.99%
|
|
0.04%
|
|
|
Return on average equity (ROE)
|
11.43%
|
|
10.49%
|
|
0.94%
|
|
|
Net interest margin (federal tax equivalent))
|
3.73%
|
|
3.90%
|
|
-0.17%
|
|
|
Interest expense to average assets
|
0.85%
|
|
0.51%
|
|
0.34%
|
|
|
Total allowance for loan losses
|
|
|
|
|
|
|
|
to
nonaccrual loans
|
76.11%
|
|
172.73%
|
|
-96.62%
|
|
|
Total allowance for loan losses
|
|
|
|
|
|
|
|
to total
loans
|
0.50%
|
|
0.55%
|
|
-0.05%
|
|
|
Nonaccrual loans to total loans
|
0.66%
|
|
0.32%
|
|
0.34%
|
|
|
Nonaccrual loans and OREO to total assets
|
0.44%
|
|
0.35%
|
|
0.09%
|
|
|
Net
charge-offs (recoveries) to average loans
|
0.05%
|
|
0.09%
|
|
-0.04%
|
|
|
Equity
to assets at period end
|
8.79%
|
|
8.74%
|
|
0.05%
|
|
|
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multimedia:http://www.prnewswire.com/news-releases/united-bancorp-inc-reports-an-increase-in-net-income-of-38-for-the-six-months-ended-june-30--2019-diluted-earnings-per-share-of-0-57-versus-0-46-reported-in-2018--and-a-forward-dividend-yield-of-4-70-300895742.html
SOURCE United Bancorp, Inc.