MARTINS FERRY, Ohio,
Oct. 10, 2019 /PRNewswire/ -- United
Bancorp, Inc. (NASDAQ: UBCP) reported diluted earnings per share of
$0.88 and net income of $5,041,000 for the nine months ended September 30, 2019, as compared to $0.71 and $3,691,000, respectively, for the corresponding
nine-month period in 2018. The Company's diluted earnings per share
for the three months ended September 30,
2019 was $0.31 as compared to
$0.25 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
of achieving profitable growth by both growing organically and
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
September 30, 2019 and year-to-date.
For the most recently ended quarter, our Company had an increase in
net income of $450,000, or 34%, on a
year-over-year basis. For the nine-month period ending September 30, 2019, our Company saw its net
income increase by $1,350,000, or
37%, to a level of $5,041,000 ---
which is a new earnings record for our Company for the
corresponding period. This increase in earnings is highly
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 $0.31 versus
$0.25 the prior year, an increase of
24%. 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 $142.3 million, or 29%, 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 $28.1 million, or 7.1%,
and solid growth in our investment portfolio, with securities and
other restricted stock increasing by $114.3
million or 126.1%. 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
nine months of 2019 of $4.6 million
or 30%."
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
$88.5 million, or 25%,
year-over-year. With lower-cost retail balances totaling
$437.8 million as of September 30, 2019, they comprise 80% 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 $27.1
million, or 32%, since September
2018. By funding our above-peer growth in earning assets
primarily with lower-costing retail funding this past year our
Company was able to maintain a very solid net interest margin which
was 3.67% 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 $3.2 million, or 0.75 percent of
total loans, at September 30, 2019.
Further, net loans charged off, excluding overdrafts, was
$164,000 for the nine months ended
September 30, 2019, which is lower
than the $238,000 charged off for the
same nine-month period the previous year. Net charge offs to
average loans for the first nine months of 2019 was 0.06% versus
0.08% for the same period in 2018. At these levels, we are very
satisfied with the continued stable performance of our loan
portfolio from a credit quality perspective."
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 firmly expect that
the double-digit earnings growth that we experienced in the first
nine months of the year to continue for the remainder of the
current year and into future periods."
Scott A. Everson, President and
CEO stated, "We are extremely gratified to report on the strong
earnings that our Company produced for the third quarter and first
nine months 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 gain even greater efficiencies and
higher levels of performance than we have already seen in recent
quarters. As previously announced, on May
14th of this year, 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 and into the current 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 so. 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 commented, "As we have
previously announced on June 18,
2019, our Company 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. We anticipate that our new
Moundsville Banking Center will be open for business toward the end
of the first quarter of 2020. 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
year-to-date record earnings in 2019, our Company had a return on
equity (ROE) of 11.2% and a return on assets (ROA) of 1.05% for the
nine months ended, September 30,
2019. For many quarters, we have stated that our goal is to
grow our Company in a highly profitable fashion. We are extremely
delighted that we have done so and that we continue to accomplish
this goal into the most recently ended quarter."
Everson concluded, "Our primary focus continues to be rewarding
our shareholders by paying a very solid cash dividend and
increasing their shareholder value in our Company. During the
course of the current year, we have increased our cash dividend
payout by $0.0025 per quarter and are
currently paying $0.1375, which on a
forward basis produces a dividend yield of 4.93% 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 times. With our market
sector trading more in the range of 12 to 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!"
As of September 30, 2019, United
Bancorp, Inc. has total assets of $675.8
million and total shareholder's equity of $60.1 million. 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 September 30,
|
|
%
|
|
$
|
|
2019
|
|
2018
|
|
Change
|
|
Change
|
Earnings
|
|
|
|
|
|
|
|
Interest income on loans
|
$
5,320,063
|
|
$
4,599,416
|
|
15.67%
|
|
$ 720,647
|
Loan fees
|
188,383
|
|
283,792
|
|
-33.62%
|
|
$ (95,409)
|
Interest income on securities
|
1,412,494
|
|
639,308
|
|
120.94%
|
|
$ 773,186
|
Total interest income
|
6,920,940
|
|
5,522,516
|
|
25.32%
|
|
$
1,398,424
|
Total interest expense
|
1,726,523
|
|
893,332
|
|
93.27%
|
|
$ 833,191
|
Net interest income
|
5,194,417
|
|
4,629,184
|
|
12.21%
|
|
$ 565,233
|
Provision for loan losses
|
120,000
|
|
72,000
|
|
66.67%
|
|
$ 48,000
|
Net interest income after provision for loan losses
|
5,074,417
|
|
4,557,184
|
|
11.35%
|
|
$ 517,233
|
Service charges on deposit accounts
|
731,066
|
|
666,255
|
|
9.73%
|
|
$ 64,811
|
Net realized gains on sale of loans
|
24,851
|
|
17,652
|
|
40.78%
|
|
$ 7,199
|
Other noninterest income
|
246,726
|
|
213,027
|
|
15.82%
|
|
$ 33,699
|
Total noninterest income
|
1,002,643
|
|
896,934
|
|
11.79%
|
|
$ 105,709
|
Total noninterest expense
|
4,161,797
|
|
3,855,586
|
|
7.94%
|
|
$ 306,211
|
Earnings before taxes
|
1,915,263
|
|
1,598,532
|
|
19.81%
|
|
$ 316,731
|
Income tax expense
|
134,515
|
|
268,199
|
|
-49.85%
|
|
$
(133,684)
|
Net income
|
$
1,780,748
|
|
$
1,330,333
|
|
33.86%
|
|
$ 450,415
|
|
|
|
|
|
|
|
|
Per
share
|
|
|
|
|
|
|
|
Earnings per common share - Basic
|
$ 0.31
|
|
$ 0.25
|
|
24.00%
|
|
|
Earnings per common share - Diluted
|
0.31
|
|
0.25
|
|
24.00%
|
|
|
Cash Dividends paid
|
0.1375
|
|
0.1300
|
|
5.77%
|
|
|
Annualized yield based on quarter end close
|
4.93%
|
|
3.95%
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
Shares
Outstanding
|
|
|
|
|
|
|
|
Average - Basic
|
5,519,677
|
|
4,854,934
|
|
--------
|
|
|
Average - Diluted
|
5,519,677
|
|
4,859,859
|
|
--------
|
|
|
Common stock, shares issued
|
5,959,351
|
|
5,560,304
|
|
--------
|
|
|
Shares used for Book Value Computation
|
5,867,401
|
|
4,881,928
|
|
|
|
|
Shares held as treasury stock
|
42,409
|
|
5,744
|
|
--------
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine
Months Ended September 30,
|
|
%
|
|
$
|
|
2019
|
|
2018
|
|
Change
|
|
Change
|
Earnings
|
|
|
|
|
|
|
|
Interest income on loans
|
$
15,560,775
|
|
$
13,056,340
|
|
19.18%
|
|
$
2,504,435
|
Loan fees
|
581,162
|
|
720,149
|
|
-19.30%
|
|
$
(138,987)
|
Interest income on securities
|
3,742,290
|
|
1,478,232
|
|
153.16%
|
|
$
2,264,058
|
Total interest income
|
19,884,227
|
|
15,254,721
|
|
30.35%
|
|
$
4,629,506
|
Total interest expense
|
4,402,131
|
|
2,122,999
|
|
107.35%
|
|
$
2,279,132
|
Net interest income
|
15,482,096
|
|
13,131,722
|
|
17.90%
|
|
$
2,350,374
|
Provision for loan losses
|
330,000
|
|
201,000
|
|
64.18%
|
|
$ 129,000
|
Net interest income after provision for loan losses
|
15,152,096
|
|
12,930,722
|
|
17.18%
|
|
$
2,221,374
|
Service charges on deposit accounts
|
2,137,847
|
|
1,947,421
|
|
9.78%
|
|
$ 190,426
|
Net realized gains on sale of loans
|
37,941
|
|
54,418
|
|
-30.28%
|
|
$ (16,477)
|
Other noninterest income
|
718,854
|
|
663,227
|
|
8.39%
|
|
$ 55,627
|
Total noninterest income
|
2,894,642
|
|
2,665,066
|
|
8.61%
|
|
$ 229,576
|
Total noninterest expense
|
12,496,001
|
|
11,188,479
|
|
11.69%
|
|
$
1,307,522
|
Earnings before income taxes
|
5,550,737
|
|
4,407,309
|
|
25.94%
|
|
$
1,143,428
|
Income tax expense
|
509,556
|
|
716,549
|
|
-28.89%
|
|
$
(206,993)
|
Net income
|
$
5,041,181
|
|
$
3,690,760
|
|
36.59%
|
|
$
1,350,421
|
Per
share
|
|
|
|
|
|
|
|
Earnings per common share - Basic
|
$ 0.88
|
|
$ 0.71
|
|
23.94%
|
|
|
Earnings per common share - Diluted
|
0.88
|
|
0.71
|
|
23.94%
|
|
|
Cash dividends paid
|
0.4050
|
|
0.3900
|
|
3.85%
|
|
|
Shares
Outstanding
|
|
|
|
|
|
|
|
Average
- Basic
|
5,518,500
|
|
4,924,859
|
|
--------
|
|
|
Average - Diluted
|
5,518,500
|
|
4,924,859
|
|
--------
|
|
|
At quarter
end
|
|
|
|
|
|
|
|
Total assets
|
$
675,821,076
|
|
$
525,278,642
|
|
28.66%
|
|
$
150,542,434
|
Total assets (average)
|
640,070,000
|
|
491,841,000
|
|
30.14%
|
|
$
148,229,000
|
Other real estate and repossessions
|
30,000
|
|
387,225
|
|
-92.25%
|
|
$
(357,225)
|
Gross loans
|
421,264,659
|
|
393,181,843
|
|
7.14%
|
|
$
28,082,816
|
Allowance for loan losses
|
2,120,999
|
|
2,003,868
|
|
5.85%
|
|
$ 117,131
|
Net loans
|
419,143,660
|
|
391,177,975
|
|
7.15%
|
|
$
27,965,685
|
Net loans (charge offs)
|
(163,888)
|
|
(237,986)
|
|
-31.14%
|
|
$ 74,098
|
Net overdrafts (charge offs)
|
(88,001)
|
|
(81,383)
|
|
8.13%
|
|
$ (6,618)
|
Total net (charge offs)
|
(251,889)
|
|
(319,369)
|
|
-21.13%
|
|
$ 67,480
|
Non-accrual loans
|
2,619,976
|
|
1,294,611
|
|
102.38%
|
|
$
1,325,365
|
Loans past due 30+ days (excludes non accrual loans)
|
526,215
|
|
721,218
|
|
-27.04%
|
|
$
(195,003)
|
Average loans
|
418,129,000
|
|
376,005,000
|
|
11.20%
|
|
$
42,124,000
|
Cash and due from Federal Reserve Bank
|
13,347,316
|
|
12,910,291
|
|
3.39%
|
|
$ 437,025
|
Average cash and due from Federal Reserve Bank
|
19,699,000
|
|
13,043,000
|
|
51.03%
|
|
$
6,656,000
|
Securities and other required stock
|
204,887,864
|
|
90,630,172
|
|
126.07%
|
|
$
114,257,692
|
Average securities and other required stock
|
148,863,000
|
|
75,253,000
|
|
97.82%
|
|
$
73,610,000
|
Average total deposits
|
537,064,000
|
|
408,419,000
|
|
31.50%
|
|
$
128,645,000
|
Total deposits
|
549,996,178
|
|
434,331,092
|
|
26.63%
|
|
$
115,665,086
|
Non
interest bearing demand
|
112,854,830
|
|
92,996,212
|
|
21.35%
|
|
$
19,858,618
|
Interest
bearing demand
|
215,883,974
|
|
175,607,791
|
|
22.94%
|
|
$
40,276,183
|
Savings
|
109,049,618
|
|
80,649,300
|
|
35.21%
|
|
$
28,400,318
|
Time
|
112,207,756
|
|
85,077,789
|
|
31.89%
|
|
$
27,129,967
|
Securities sold under agreements to repurchase
|
9,901,835
|
|
15,399,352
|
|
-35.70%
|
|
$
(5,497,517)
|
Advances from the Federal Home Loan Bank
|
20,800,000
|
|
22,138,879
|
|
-6.05%
|
|
$
(1,338,879)
|
Overnight
advances
|
20,800,000
|
|
22,000,000
|
|
N/A
|
|
$
(1,200,000)
|
Term
advances
|
-
|
|
138,879
|
|
-100.00%
|
|
$
(138,879)
|
Shareholders' equity
|
60,054,705
|
|
45,112,465
|
|
33.12%
|
|
$
14,942,240
|
Shareholders' equity (average)
|
60,055,000
|
|
45,112,000
|
|
33.12%
|
|
$
14,943,000
|
Stock
data
|
|
|
|
|
|
|
|
Market value - last close (end of period)
|
$ 11.15
|
|
$ 13.15
|
|
-15.21%
|
|
|
Dividend payout ratio
|
46.02%
|
|
54.93%
|
|
-16.22%
|
|
|
Book value (end of period)
|
10.24
|
|
9.24
|
|
10.82%
|
|
|
Market price to book value
|
108.89%
|
|
142.32%
|
|
-23.49%
|
|
|
Key performance
ratios
|
|
|
|
|
|
|
|
Return on average assets (ROA)
|
1.05%
|
|
1.00%
|
|
0.05%
|
|
|
Return on average equity (ROE)
|
11.19%
|
|
10.91%
|
|
0.28%
|
|
|
Net interest margin (federal tax equivalent)
|
3.67%
|
|
3.90%
|
|
-0.23%
|
|
|
Interest expense to average assets
|
0.92%
|
|
0.58%
|
|
0.34%
|
|
|
Total allowance for loan losses
|
|
|
|
|
|
|
|
to nonaccrual
loans
|
80.95%
|
|
154.79%
|
|
-73.83%
|
|
|
Total allowance for loan losses
|
|
|
|
|
|
|
|
to total
loans
|
0.50%
|
|
0.51%
|
|
-0.01%
|
|
|
Nonaccrual loans to total loans
|
0.62%
|
|
0.33%
|
|
0.29%
|
|
|
Nonaccrual assets to average assets
|
0.41%
|
|
0.34%
|
|
0.07%
|
|
|
Net charge-offs to average loans
|
0.06%
|
|
0.08%
|
|
-0.02%
|
|
|
Equity to assets at period end
|
8.89%
|
|
8.59%
|
|
0.27%
|
|
|
|
|
|
|
|
|
|
|
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multimedia:http://www.prnewswire.com/news-releases/united-bancorp-inc-reports-an-increase-in-net-income-of-37-for-the-nine-months-ended-september-30--2019-diluted-earnings-per-share-of-0-88-versus-0-71-reported-in-2018--and-a-forward-dividend-yield-of-4-93-300936578.html
SOURCE United Bancorp, Inc.