United Bancorp, Inc. Reports 2023 Second Quarter and Six Month Earnings Performance
- United Bancorp, Inc. (UBCP) reported positive earnings results for the second quarter and first six months of 2023. Diluted earnings per share increased by 4.3% and net income increased by 3.0% compared to the previous year.
- None.
MARTINS FERRY, OH / ACCESSWIRE / July 31, 2023 / 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 United Bancorp, Inc. (UBCP) for the second quarter ended June 30, 2023 and the first six months of 2023. For the quarter, our Company achieved solid net income and diluted earnings per share results of
Greenwood continued, "Adding additional leverage to our balance sheet while controlling our funding costs and enhancing the returns on our earning assets has allowed our Company to see improvement in our net interest margin and overall earnings on a year-over-year basis. Of note relating to our earnings improvement achieved in both the second quarter and the first six months of 2023 relative to our previous year's results, our Company did not have a negative provision for credit losses in the first quarter and only a very minimal negative provision in the second quarter, which was driven by our newly adopted Current Expected Credit Loss (CECL) loan loss reserve methodology. For the current year, the negative provision in the second quarter was
Lastly, Greenwood stated, "Even with the economic headwinds with which our country continues to be confronted and the significant increases in interest rates that may have affected some of our borrowers with rate resets to higher interest rate levels on their loans, we have successfully maintained credit-related strength and stability within our loan portfolio as of the most recently ended quarter. As of June 30, 2023, our Company's total nonaccrual loans and loans past due 30 plus days were
Scott A. Everson, President and CEO stated, "Considering the exceedingly dynamic monetary policy environment in which we have operated for the past fifteen months and the more recent issues which have impacted our industry since mid-March, we are very happy to report on the very strong earnings performance that United Bancorp, Inc. (UBCP) achieved in the first six months of 2023. Relating to the excessive tightening of our country's monetary policy over the course of the past year plus, we are extremely pleased that we have been able to grow the level of interest income that our Company generated while controlling overall interest expense levels; thereby, expanding the level of net interest income that we realized and our net interest margin. We achieved this while growing our level of assets and funding some of this expansion with growth in our overall deposits in a cost-effective manner. This is somewhat of a counter-trend to what occurred within our industry over this timeframe. With the aforementioned developments that occurred within our industry late in the first quarter of this year, we transitioned into a more conservative operating position that greatly increased our overall liquidity and locked in a fair portion of our funding as a hedge against further interest rate increases. Although this will have a marginal impact on our returns and margins (such as our return on assets and our net interest margin) in the short-term, it is immediately accretive to our bottom-line earnings. Overall, our capital levels remain very strong and our Company is classified as being well-capitalized based on industry standards. We firmly believe that with our strong liquidity, above industry-average growth in core deposits and minimal levels of uninsured deposits that our risk to capital is very low, and, fundamentally, our Company's financial position and future prospects are very solid."
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 the second quarter, we paid a regular cash dividend of
Everson concluded, "Considering that we continue to operate in a challenging economic and concerning industry-related environment, we are very pleased with our overall present performance and future prospects. Even with the present threats with which our overall industry is exposed, we are very optimistic about the future growth and earnings prospects for United Bancorp, Inc. (UBCP). We firmly believe that with the challenges that our industry has experienced over the course of the past few years, our Company has evolved into a more fundamentally sound organization with a focus of growing to achieve greater efficiencies and scales, while controlling overall costs. We have invested in areas that will lead to our continued and future relevancy within our industry--- along with anticipated higher revenue generation--- while implementing cost control initiatives, where needed, by consolidating delivery channels in markets in which we had low banking center performance and considerable overlap. We still have a vision of growing UBCP to an asset threshold of
As of June 30, 2023, 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 June 30, | % | $ | |||||||||||||
| 2023 | 2022 | Change | Change | ||||||||||||
Earnings | |||||||||||||||
Interest income on loans | $ | 5,954,031 | $ | 4,682,241 | $ | 1,271,790 | |||||||||
Loan fees | 172,328 | 231,656 | - | $ | (59,328) | ||||||||||
Interest income on securities | 3,159,910 | 1,531,466 | $ | 1,628,444 | |||||||||||
Total interest income | 9,286,269 | 6,445,363 | $ | 2,840,906 | |||||||||||
Total interest expense | 2,941,457 | 477,542 | $ | 2,463,915 | |||||||||||
Net interest income | 6,344,812 | 5,967,821 | $ | 376,991 | |||||||||||
(Credit) Provision for loan losses | (146,250) | (485,000) | - | $ | 338,750 | ||||||||||
Net interest income after provision for loan losses | 6,491,062 | 6,452,821 | $ | 38,241 | |||||||||||
Service charges on deposit accounts | 777,523 | 746,762 | $ | 30,761 | |||||||||||
Net realized gains on sale of available-for-sale securities | - | - | N/A | $ | - | ||||||||||
Net realized gains on sale of loans | 7,088 | 14,045 | - | $ | (6,957) | ||||||||||
Other noninterest income | 261,736 | 226,444 | $ | 35,292 | |||||||||||
Total noninterest income | 1,046,347 | 987,251 | $ | 59,096 | |||||||||||
Total noninterest expense | 5,089,269 | 4,848,389 | $ | 240,880 | |||||||||||
Earnings before income taxes | 2,448,140 | 2,591,683 | - | $ | (143,543) | ||||||||||
Income tax expense | 167,716 | 294,522 | - | $ | (126,806) | ||||||||||
Net income | $ | 2,280,424 | $ | 2,297,161 | - | $ | (16,737) | ||||||||
Per share | |||||||||||||||
Earnings per common share - Basic | $ | 0.40 | $ | 0.40 | |||||||||||
Earnings per common share - Diluted | 0.40 | 0.40 | |||||||||||||
Cash dividends paid | 0.1650 | 0.1550 | |||||||||||||
Shares Outstanding | |||||||||||||||
Average - Basic | 5,496,049 | 5,484,701 | -------- | ||||||||||||
Average - Diluted | 5,496,049 | 5,484,701 | -------- | ||||||||||||
| For the Six Months Ended June 30, | % | ||||||||||||||
| 2023 | 2022 | Change | |||||||||||||
Earnings | |||||||||||||||
Interest income on loans | $ | 11,865,781 | $ | 9,139,655 | $ | 2,726,126 | |||||||||
Loan fees | 69,383 | 565,323 | - | $ | (495,940) | ||||||||||
Interest income on securities | 5,559,206 | 2,737,507 | $ | 2,821,699 | |||||||||||
Total interest income | 17,494,370 | 12,442,485 | $ | 5,051,885 | |||||||||||
Total interest expense | 4,726,587 | 964,020 | $ | 3,762,567 | |||||||||||
Net interest income | 12,767,783 | 11,478,465 | $ | 1,289,318 | |||||||||||
(Credit) Provision for loan losses | (146,250) | (985,000) | - | $ | 838,750 | ||||||||||
Net interest income after (Credit) provision for loan losses | 12,914,033 | 12,463,465 | $ | 450,568 | |||||||||||
Service charges on deposit accounts | 1,498,360 | 1,427,466 | $ | 70,894 | |||||||||||
Net realized gains on sale of loans | 7,088 | 26,532 | - | $ | (19,444) | ||||||||||
Other noninterest income | 556,450 | 520,730 | $ | 35,720 | |||||||||||
Total noninterest income | 2,061,898 | 1,974,728 | $ | 87,170 | |||||||||||
Total noninterest expense | 10,526,886 | 9,959,088 | $ | 567,798 | |||||||||||
Earnings before income taxes | 4,449,045 | 4,479,105 | - | $ | (30,060) | ||||||||||
Income tax expense | 281,010 | 430,737 | - | $ | (149,727) | ||||||||||
Net income | $ | 4,168,035 | $ | 4,048,368 | $ | 119,667 | |||||||||
Per share | |||||||||||||||
Earnings per common share - Basic | $ | 0.73 | $ | 0.70 | |||||||||||
Earnings per common share - Diluted | 0.73 | 0.70 | |||||||||||||
Cash dividends paid | 0.4775 | 0.4575 | |||||||||||||
Annualized yield based on quarter end close (excluding special dividend) | |||||||||||||||
Shares Outstanding | |||||||||||||||
Average - Basic | 5,490,620 | 5,483,282 | -------- | ||||||||||||
Average - Diluted | 5,490,620 | 5,483,282 | -------- | ||||||||||||
Common stock, shares issued | 6,043,851 | 6,043,851 | -------- | ||||||||||||
Shares held as Treasury | 179,363 | 129,363 | -------- | ||||||||||||
At quarter end | |||||||||||||||
Total assets | $ | 830,283,563 | $ | 719,105,494 | $ | 111,178,069 | |||||||||
Total assets (average) | 800,813,000 | 721,398,000 | $ | 79,415,000 | |||||||||||
Other real estate and repossessions ("OREO") | 3,474,625 | 236,685 | $ | 3,237,940 | |||||||||||
Gross loans | 462,870,965 | 467,389,446 | - | $ | (4,518,481) | ||||||||||
Allowance for loan losses | 4,281,491 | 2,653,380 | $ | 1,628,111 | |||||||||||
Net loans | 458,589,474 | 464,736,066 | - | $ | (6,146,592) | ||||||||||
Non-accrual loans | 397,963 | 3,996,530 | - | $ | (3,598,567) | ||||||||||
Loans past due 30+ days (excludes non accrual loans) | 286,587 | 426,290 | - | $ | (139,703) | ||||||||||
Net loans (recovered) charged-off | (9,925) | (18,522) | - | $ | 8,597 | ||||||||||
Net overdrafts charged-off | 53,680 | 53,568 | $ | 112 | |||||||||||
Net charge-offs | 43,755 | 35,046 | $ | 8,709 | |||||||||||
Average loans | 460,184,000 | 459,081,000 | $ | 1,103,000 | |||||||||||
Cash and due from Federal Reserve Bank | 81,762,785 | 16,790,570 | $ | 64,972,215 | |||||||||||
Average cash and due from Federal Reserve Bank | 64,148,000 | 8,805,000 | $ | 55,343,000 | |||||||||||
Securities and other restricted stock | 240,032,267 | 193,879,576 | $ | 46,152,691 | |||||||||||
Average securities and other restricted stock | 243,348,000 | 159,352,000 | $ | 83,996,000 | |||||||||||
Total deposits | 643,615,877 | 607,309,482 | $ | 36,306,395 | |||||||||||
Non interest bearing demand | 145,170,414 | 148,451,445 | - | $ | (3,281,031) | ||||||||||
Interest bearing demand | 216,214,670 | 267,044,949 | - | $ | (50,830,279) | ||||||||||
Savings | 138,392,675 | 146,873,614 | - | $ | (8,480,939) | ||||||||||
Time < | 109,605,135 | 42,650,952 | $ | 66,954,183 | |||||||||||
Time > | 34,232,983 | 2,288,522 | $ | 31,944,461 | |||||||||||
Average total deposits | 645,703,000 | 611,093,000 | $ | 34,610,000 | |||||||||||
Advances from the Federal Home Loan Bank | 75,000,000 | - | N/A | $ | 75,000,000 | ||||||||||
Overnight advances | - | - | N/A | $ | - | ||||||||||
Term advances | 75,000,000 | - | N/A | $ | 75,000,000 | ||||||||||
Subordinated debt (net of unamortized issuance costs) | 23,756,279 | 23,695,403 | $ | 60,876 | |||||||||||
Securities sold under agreements to repurchase | 23,689,956 | 24,475,913 | - | $ | (785,957) | ||||||||||
Stockholders' equity | 58,408,393 | 58,313,196 | $ | 95,197 | |||||||||||
Goodwill and intangible assets (impact on Stockholders' equity) | 1,017,296 | 1,167,296 | - | $ | (150,000) | ||||||||||
Tangible stockholders' equity | 57,391,097 | 57,145,900 | $ | 245,197 | |||||||||||
Accumulated other comprehensive loss (AOCI) impact on Stockholders' equity | (9,722,090) | (7,810,175) | $ | (1,911,915) | |||||||||||
Stockholders' equity (average) | 58,575,000 | 58,068,000 | $ | 507,000 | |||||||||||
Stock data | |||||||||||||||
Market value - last close (end of period) | $ | 11.97 | $ | 16.39 | - | ||||||||||
Dividend payout ratio | |||||||||||||||
Price earnings ratio | 8.20x | 11.71x | |||||||||||||
Book value per share | $ | 9.96 | $ | 9.65 | |||||||||||
Tangible book value per share | $ | 9.79 | $ | 9.52 | |||||||||||
Market price to book value | - | ||||||||||||||
Market price to tangible book value | - | ||||||||||||||
Key performance ratios | |||||||||||||||
Return on average assets (ROA) | - | ||||||||||||||
Return on average equity (ROE) | |||||||||||||||
Net interest margin (federal tax equivalent)) | |||||||||||||||
Interest expense to average assets | |||||||||||||||
Total allowance for loan losses | |||||||||||||||
to nonaccrual loans | |||||||||||||||
Total allowance for loan losses | |||||||||||||||
to total loans | |||||||||||||||
Nonaccrual loans to total loans | - | ||||||||||||||
Nonaccrual loans and OREO to total assets | - | ||||||||||||||
Net charge-offs (recoveries) to average loans | |||||||||||||||
Equity to assets at period end | - | ||||||||||||||
Contacts:
| Scott A. Everson | Randall M. Greenwood | |
| President and CEO | Senior Vice President, CFO and Treasurer | |
| (740) 633-0445, ext. 6154 | (740) 633-0445, ext. 6181 | |
| ceo@unitedbancorp.com | cfo@unitedbancorp.com |
SOURCE: United Bancorp, Inc. (Ohio)
View source version on accesswire.com:
https://www.accesswire.com/771224/United-Bancorp-Inc-Reports-2023-Second-Quarter-and-Six-Month-Earnings-Performance
FAQ
What were United Bancorp's earnings per share for the second quarter of 2023?
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