United Bancorp, Inc. Reports 2022 Third Quarter and Nine Month Earnings Performance
United Bancorp (NASDAQ: UBCP) reported diluted earnings per share of $0.40 for Q3 2022, with net income of $2.3 million, reflecting a $600,000 decline from the previous year. For the first nine months, EPS stands at $1.11 with net income of $6.35 million, down by $644,000. Total assets grew by 4.2% to $760.9 million, mainly due to a 1.4% increase in gross loans and a significant 53.9% rise in securities. The net interest margin improved to 3.60%. However, non-interest income suffered a decline, impacting overall profitability.
- Total assets increased by $30.5 million or 4.2% year-over-year.
- Gross loans grew by $6.2 million or 1.4%.
- Securities and other restricted stock rose by $75.1 million or 53.9%.
- Net interest income increased by $764,000 or 13.6%.
- Net interest margin increased from 3.54% to 3.60%.
- Cash dividends increased by $0.08 or 15.0%.
- Net income for Q3 decreased by $600,000 from the previous year.
- EPS declined by $0.10 year-over-year.
- Non-interest income dropped by $1.3 million year-to-date.
- Total shareholder's equity reduced by $14.5 million due to accumulated losses.
MARTINS FERRY, OH / ACCESSWIRE / November 1, 2022 / United Bancorp, Inc. (NASDAQ:UBCP) reported diluted earnings per share of
Randall M. Greenwood, Senior Vice President, CFO and Treasurer remarked, "We are pleased to report on the earnings performance of our Company for the third quarter and the first nine months of 2022. For the quarter ending September 30, 2022, our Company achieved net income of
Greenwood continued, "Considering the increase in the level of interest income that we generated and the marginal increase in our total interest expense in the third quarter ending September 30, 2022, our Company experienced an increase in the net interest income that it realized during the quarter of
Greenwood further mentioned, "Over the course of the first nine months of 2022, our Company's bottom-line net income was impacted by the strong inflationary and corresponding fast-paced, rising-rate environment in which we operated. As of September 30, 2022, the decline in some of our fee-income related lines of business (primarily relating to mortgage origination) and, as previously mentioned, the nonrecurrence of substantial security gains realized the previous year strongly influenced the decrease in the level of non-interest income that our Company realized. At the end of the most recently ended quarter, non-interest income was down on a quarter-over-quarter basis primarily due to a large security gain of
Lastly, Greenwood stated, "We have successfully maintained credit-related strength and stability within our loan portfolio over the course of the past two years during the pandemic-induced economic downturn and this trend continued for our Company into the most recently ended quarter. As of September 30, 2022, our total non-accrual loans were
Scott A. Everson, President and CEO stated, "As our economy has recovered and started to heat-up over the course of the first nine months of this year, we have seen opportunities to more fully leverage our capital and change the mix of our balance sheet into longer-term, higher-yielding assets and, once again, focus on growing our Company. Even though the Federal Open Market Committee (FOMC) of the Federal Reserve has aggressively raised the target rate for federal funds over this period, we are hopeful that our positive trend in rebalancing and growing our balance sheet will continue as the year progresses and produce positive operating results for our Company." Everson continued, "For the third quarter in a row, we saw an increase in the level of net interest income that our Company generated after not experiencing this for several quarters after the commencement of the slowdown relating to the pandemic. With the change in the mix of our balance sheet into higher yielding assets, we continued to see our net interest margin increase in a positive fashion, once again, this past quarter. In addition, by investing in municipal securities and having higher balances in these tax-exempt investments for the first time in a couple of years, we believe that our Company will see greater tax efficiency going forward which should provide additional benefit to our bottom-line. Like almost every other financial services organization in today's rapidly rising interest rate environment, our Company does have an accumulated other comprehensive loss primarily attributed to its investment portfolio, which continued to have an impact on our reported capital levels at the most recent quarter-end. Ultimately, our Company is considered to be well capitalized and this does not have an impact on regulatory capital at the bank-level." Everson further stated, "Our growth goal for our Company remains to increase our total assets to a level of
Everson continued, "Our primary focus is protecting the investment of our shareholders in our Company and rewarding them in a balanced fashion by growing their value and paying an attractive cash dividend. In these areas, our shareholders have been nicely rewarded with a year-over-year increase in cash dividends paid of
As of September 30, 2022, United Bancorp, Inc. has total assets of
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, | % | $ | ||||||||||||||
| 2022 | 2021 | Change | Change | |||||||||||||
Earnings | ||||||||||||||||
Interest income on loans | $ | 5,131,093 | $ | 4,819,022 | 6.48 | % | $ | 312,071 | ||||||||
Loan fees | 246,649 | 351,871 | -29.90 | % | $ | (105,222 | ) | |||||||||
Interest income on securities | 1,919,258 | 1,063,026 | 80.55 | % | $ | 856,232 | ||||||||||
Total interest income | 7,297,000 | 6,233,919 | 17.05 | % | $ | 1,063,081 | ||||||||||
Total interest expense | 928,530 | 628,971 | 47.63 | % | $ | 299,559 | ||||||||||
Net interest income | 6,368,470 | 5,604,948 | 13.62 | % | $ | 763,522 | ||||||||||
(Credit) Provision for loan losses | 15,000 | (400,000 | ) | -103.75 | % | $ | 415,000 | |||||||||
Net interest income after provision for loan losses | 6,353,470 | 6,004,948 | 5.80 | % | $ | 348,522 | ||||||||||
Service charges on deposit accounts | 753,253 | 721,157 | 4.45 | % | $ | 32,096 | ||||||||||
Net realized gains on sale of available-for-sale securities | - | 1,250,080 | -100.00 | % | $ | (1,250,080 | ) | |||||||||
Net realized gains on sale of loans | 6,592 | 54,061 | -87.81 | % | $ | (47,469 | ) | |||||||||
Other noninterest income | 282,793 | 261,398 | 8.18 | % | $ | 21,395 | ||||||||||
Total noninterest income | 1,042,638 | 2,286,696 | -54.40 | % | $ | (1,244,058 | ) | |||||||||
Total noninterest expense | 4,878,496 | 4,941,273 | -1.27 | % | $ | (62,777 | ) | |||||||||
Earnings before taxes | 2,517,612 | 3,350,371 | -24.86 | % | $ | (832,759 | ) | |||||||||
Income tax expense | 215,322 | 448,149 | -51.95 | % | $ | (232,827 | ) | |||||||||
Net income | $ | 2,302,290 | $ | 2,902,222 | -20.67 | % | $ | (599,932 | ) | |||||||
Per share | ||||||||||||||||
Earnings per common share - Basic | $ | 0.40 | $ | 0.50 | -20.00 | % | ||||||||||
Earnings per common share - Diluted | 0.40 | 0.50 | -20.00 | % | ||||||||||||
Cash Dividends paid | 0.1575 | 0.1475 | 6.78 | % | ||||||||||||
Annualized yield based on quarter end close | 3.92 | % | 4.13 | % | N/A | |||||||||||
Shares Outstanding | ||||||||||||||||
Average - Basic | 5,488,121 | 5,478,496 | -------- | |||||||||||||
Average - Diluted | 5,488,121 | 5,478,496 | -------- | |||||||||||||
Common stock, shares issued | 6,043,851 | 6,056,351 | -------- | |||||||||||||
Shares used for Book Value Computation | 5,914,488 | 5,966,758 | ||||||||||||||
Shares held as treasury stock | 129,363 | 79,593 | -------- | |||||||||||||
| For the Nine Months Ended September 30, | % | |||||||||||||||
| 2022 | 2021 | Change | ||||||||||||||
Earnings | ||||||||||||||||
Interest income on loans | $ | 14,270,748 | $ | 14,265,106 | 0.04 | % | $ | 5,642 | ||||||||
Loan fees | 811,972 | 909,760 | -10.75 | % | $ | (97,788 | ) | |||||||||
Interest income on securities | 4,656,765 | 3,379,822 | 37.78 | % | $ | 1,276,943 | ||||||||||
Total interest income | 19,739,485 | 18,554,688 | 6.39 | % | $ | 1,184,797 | ||||||||||
Total interest expense | 1,892,550 | 2,080,095 | -9.02 | % | $ | (187,545 | ) | |||||||||
Net interest income | 17,846,935 | 16,474,593 | 8.33 | % | $ | 1,372,342 | ||||||||||
(Credit) Provision for loan losses | (970,000 | ) | (855,000 | ) | 13.45 | % | $ | (115,000 | ) | |||||||
Net interest income after provision for loan losses | 18,816,935 | 17,329,593 | 8.58 | % | $ | 1,487,342 | ||||||||||
Service charges on deposit accounts | 2,180,719 | 2,121,637 | 2.78 | % | $ | 59,082 | ||||||||||
Net realized gains on sale of available-for-sale securities | - | 1,250,080 | N/A | $ | (1,250,080 | ) | ||||||||||
Net realized gains on sale of loans | 33,124 | 218,388 | -84.83 | % | $ | (185,264 | ) | |||||||||
Other noninterest income | 803,523 | 765,002 | 5.04 | % | $ | 38,521 | ||||||||||
Total noninterest income | 3,017,366 | 4,355,107 | -30.72 | % | $ | (1,337,741 | ) | |||||||||
Total noninterest expense | 14,837,584 | 13,940,551 | 6.43 | % | $ | 897,033 | ||||||||||
Earnings before income taxes | 6,996,717 | 7,744,149 | -9.65 | % | $ | (747,432 | ) | |||||||||
Income tax expense | 646,059 | 749,277 | -13.78 | % | $ | (103,218 | ) | |||||||||
Net income | $ | 6,350,658 | $ | 6,994,872 | -9.21 | % | $ | (644,214 | ) | |||||||
Per share | ||||||||||||||||
Earnings per common share - Basic | $ | 1.11 | $ | 1.21 | -8.26 | % | ||||||||||
Earnings per common share - Diluted | 1.11 | 1.21 | -8.26 | % | ||||||||||||
Cash dividends paid | 0.6150 | 0.5350 | 14.95 | % | ||||||||||||
Shares Outstanding | ||||||||||||||||
Average - Basic | 5,482,865 | 5,476,359 | -------- | |||||||||||||
Average - Diluted | 5,482,865 | 5,476,359 | -------- | |||||||||||||
At quarter end | ||||||||||||||||
Total assets | $ | 760,853,918 | $ | 730,382,242 | 4.17 | % | $ | 30,471,676 | ||||||||
Total assets (average) | 723,554,000 | 710,861,000 | 1.79 | % | $ | 12,693,000 | ||||||||||
Other real estate and repossessions | 236,685 | 415,270 | -43.00 | % | $ | (178,585 | ) | |||||||||
Gross loans | 468,363,405 | 462,118,971 | 1.35 | % | $ | 6,244,434 | ||||||||||
Allowance for loan losses | 2,618,942 | 4,122,787 | -36.48 | % | $ | (1,503,845 | ) | |||||||||
Net loans | 465,744,463 | 457,996,184 | 1.69 | % | $ | 7,748,279 | ||||||||||
Net loans recovered (charge offs) | 786 | (90,653 | ) | -100.87 | % | $ | 91,439 | |||||||||
Net overdrafts (charge offs) | (85,271 | ) | (44,354 | ) | 92.25 | % | $ | (40,917 | ) | |||||||
Total net (charge offs) | (84,485 | ) | (135,007 | ) | -37.42 | % | $ | 50,522 | ||||||||
Non-accrual loans | 4,018,143 | 2,869,785 | 40.02 | % | $ | 1,148,358 | ||||||||||
Loans past due 30+ days (excludes non accrual loans) | 397,757 | 221,853 | 79.29 | % | $ | 175,904 | ||||||||||
Average loans | 462,385,000 | 450,561,000 | 2.62 | % | $ | 11,824,000 | ||||||||||
Cash and due from Federal Reserve Bank | 35,297,069 | 91,407,053 | -61.38 | % | $ | (56,109,984 | ) | |||||||||
Average cash and due from Federal Reserve Bank | 58,551,000 | 87,717,000 | -33.25 | % | $ | (29,166,000 | ) | |||||||||
Securities and other restricted stock | 214,341,285 | 139,244,267 | 53.93 | % | $ | 75,097,018 | ||||||||||
Average securities and other restricted stock | 158,907,000 | 129,537,000 | 22.67 | % | $ | 29,370,000 | ||||||||||
Average total deposits | 617,363,000 | 598,115,000 | 3.22 | % | $ | 19,248,000 | ||||||||||
Total deposits | 650,101,056 | 608,508,347 | 6.84 | % | $ | 41,592,709 | ||||||||||
Non interest bearing demand | 155,689,415 | 150,632,386 | 3.36 | % | $ | 5,057,029 | ||||||||||
Interest bearing demand | 261,677,505 | 255,910,858 | 2.25 | % | $ | 5,766,647 | ||||||||||
Savings | 145,410,432 | 138,346,324 | 5.11 | % | $ | 7,064,108 | ||||||||||
Time | 87,323,704 | 63,618,779 | 37.26 | % | $ | 23,704,925 | ||||||||||
Subordinated debt (net of unamortized issuance costs) | 19,586,622 | 19,525,746 | 0.31 | % | $ | 60,876 | ||||||||||
Securities sold under agreements to repurchase | 28,113,553 | 18,280,341 | 53.79 | % | $ | 9,833,212 | ||||||||||
Shareholders' equity | 53,146,128 | 70,053,340 | -24.13 | % | $ | (16,907,212 | ) | |||||||||
Common Stock, Additional Paid in Capital | 30,767,157 | 29,568,884 | 4.05 | % | $ | 1,198,273 | ||||||||||
Retained Earnings | 40,585,067 | 36,285,679 | 11.85 | % | $ | 4,299,388 | ||||||||||
Share held by Deferred Plan and Treasury Stock | (3,726,078 | ) | (2,711,172 | ) | 37.43 | % | $ | (1,014,906 | ) | |||||||
Accumulated other comprehensive loss, net of tax benefits | (14,480,018 | ) | 6,909,949 | -309.55 | % | $ | (21,389,967 | ) | ||||||||
Goodwill and intangible assets (impact on Shareholders' equity) | 1,129,793 | 1,279,793 | -11.72 | % | $ | (150,000 | ) | |||||||||
Tangible shareholders' equity | 52,016,335 | 68,773,547 | -24.37 | % | $ | (16,757,212 | ) | |||||||||
Shareholders' equity (average) | 52,844,000 | 70,053,000 | -24.57 | % | $ | (17,209,000 | ) | |||||||||
Stock data | ||||||||||||||||
Market value - last close (end of period) | $ | 16.07 | $ | 14.30 | 12.38 | % | ||||||||||
Dividend payout ratio | 55.41 | % | 44.21 | % | 25.31 | % | ||||||||||
Book value (end of period) | 8.98 | 11.74 | -23.51 | % | ||||||||||||
Tangible book value | 8.78 | 11.53 | -23.85 | % | ||||||||||||
Market price to book value | 178.95 | % | 121.81 | % | 46.92 | % | ||||||||||
Market price to tangible book value | 183.03 | % | 124.02 | % | 47.58 | % | ||||||||||
Key performance ratios | ||||||||||||||||
Return on average assets (ROA) | 1.17 | % | 1.31 | % | -0.14 | % | ||||||||||
Return on average equity (ROE) | 16.02 | % | 13.31 | % | 2.71 | % | ||||||||||
Net interest margin (federal tax equivalent) | 3.60 | % | 3.57 | % | 0.03 | % | ||||||||||
Interest expense to average assets | 0.35 | % | 0.39 | % | -0.04 | % | ||||||||||
Total allowance for loan losses | ||||||||||||||||
to nonaccrual loans | 65.18 | % | 143.66 | % | -78.48 | % | ||||||||||
Total allowance for loan losses | ||||||||||||||||
to total loans | 0.56 | % | 0.89 | % | -0.33 | % | ||||||||||
Nonaccrual loans to total loans | 0.86 | % | 0.62 | % | 0.24 | % | ||||||||||
Nonaccrual assets to average assets | 0.59 | % | 0.46 | % | 0.13 | % | ||||||||||
Net charge-offs to average loans | 0.02 | % | 0.03 | % | -0.01 | % | ||||||||||
Equity to assets at period end | 6.99 | % | 9.59 | % | -2.61 | % | ||||||||||
Contacts:
Scott A. Everson
President and CEO
(740) 633-0445, ext. 6154
ceo@unitedbancorp.com
Randall M. Greenwood
Senior Vice President, CFO and Treasurer
(740) 633-0445, ext. 6181
cfo@unitedbancorp.com
SOURCE: United Bancorp, Inc. (Ohio)
View source version on accesswire.com:
https://www.accesswire.com/723330/United-Bancorp-Inc-Reports-2022-Third-Quarter-and-Nine-Month-Earnings-Performance
FAQ
What are the earnings results for United Bancorp (UBCP) for Q3 2022?
How did United Bancorp's net income change in 2022?
What was the increase in total assets for United Bancorp (UBCP) as of September 30, 2022?
What impact did securities have on United Bancorp's financials?
How has the net interest margin changed for United Bancorp?
