United Bancorp, Inc. Reports Increased 2023 Third Quarter and Nine Month Earnings Results
- UBCP reported an increase in diluted earnings per share and net income for Q3 2023 compared to the same period last year.
- For the first nine months of the year, UBCP also saw an increase in diluted earnings per share and net income.
- The company benefited from the tightening of monetary policy, resulting in higher interest rates and increased net interest income.
- UBCP maintained credit-related strength and stability within its loan portfolio, with a decrease in nonaccrual loans and loans past due 30 plus days.
- None.
MARTINS FERRY, OH / ACCESSWIRE / October 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 third quarter ended September 30, 2023 and the first nine months of 2023. For the quarter, our Company achieved solid net income and diluted earnings per share results of
Greenwood continued, "We are grateful to see that our net interest income and net interest margin levels continue to increase in the current, dynamic economic environment in which we are operating. We have achieved this positive result by seeing our loan portfolio yield increase in the current rising rate environment, even though from a volume perspective, our gross loans are marginally lower on a year-over-year basis by
Lastly, Greenwood stated, "Even with the continued heightened inflation levels and related increases in interest rates that may be impacting some of our borrowers with higher operating costs and 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 September 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 eighteen 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 nine months of 2023. Relating to the excessive tightening of our country's monetary policy over the course of the past year and a half, 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. 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 by taking a
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 third 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 September 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.
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
United Bancorp, Inc. ("UBCP")
| For the Three Months Ended September 30, | % | $ | ||||||||||||||
| 2023 | 2022 | Change | Change | |||||||||||||
Earnings | ||||||||||||||||
Interest income on loans | $ | 6,203,404 | $ | 5,131,093 | 20.90 | % | $ | 1,072,311 | ||||||||
Loan fees | 250,864 | 246,649 | 1.71 | % | $ | 4,215 | ||||||||||
Interest income on securities | 3,197,109 | 1,919,258 | 66.58 | % | $ | 1,277,851 | ||||||||||
Total interest income | 9,651,377 | 7,297,000 | 32.26 | % | $ | 2,354,377 | ||||||||||
Total interest expense | 3,083,418 | 928,530 | 232.08 | % | $ | 2,154,888 | ||||||||||
Net interest income | 6,567,959 | 6,368,470 | 3.13 | % | $ | 199,489 | ||||||||||
(Credit) Provision for credit losses | (153,750 | ) | 15,000 | -1125.00 | % | $ | (168,750 | ) | ||||||||
Net interest income after provision for credit losses | 6,721,709 | 6,353,470 | 5.80 | % | $ | 368,239 | ||||||||||
Service charges on deposit accounts | 703,699 | 753,253 | -6.58 | % | $ | (49,554 | ) | |||||||||
Net realized gains on sale of loans | 1,068 | 6,592 | -83.80 | % | $ | (5,524 | ) | |||||||||
Other noninterest income | 257,843 | 282,793 | -8.82 | % | $ | (24,950 | ) | |||||||||
Total noninterest income | 962,610 | 1,042,638 | -7.68 | % | $ | (80,028 | ) | |||||||||
Total noninterest expense | 5,233,772 | 4,878,496 | 7.28 | % | $ | 355,276 | ||||||||||
Earnings before taxes | 2,450,547 | 2,517,612 | -2.66 | % | $ | (67,065 | ) | |||||||||
Income tax expense | 58,089 | 215,322 | -73.02 | % | $ | (157,233 | ) | |||||||||
Net income | $ | 2,392,458 | $ | 2,302,290 | 3.92 | % | $ | 90,168 | ||||||||
Per share | ||||||||||||||||
Earnings per common share - Basic | $ | 0.42 | $ | 0.40 | 5.00 | % | ||||||||||
Earnings per common share - Diluted | 0.42 | 0.40 | 5.00 | % | ||||||||||||
Cash Dividends paid | 0.1675 | 0.1575 | 6.35 | % | ||||||||||||
Annualized yield based on quarter end close | 5.80 | % | 3.92 | % | N/A | |||||||||||
Shares Outstanding | ||||||||||||||||
Average - Basic | 5,488,995 | 5,488,121 | -------- | |||||||||||||
Average - Diluted | 5,488,995 | 5,488,121 | -------- | |||||||||||||
Common stock, shares issued | 6,063,851 | 6,043,851 | -------- | |||||||||||||
Shares used for Book Value Computation | 5,884,488 | 5,914,488 | ||||||||||||||
Shares held as treasury stock | 179,363 | 129,363 | -------- | |||||||||||||
| For the Nine Months Ended September 30, | % | $ | ||||||||||||||
| 2023 | 2022 | Change | Change | |||||||||||||
Earnings | ||||||||||||||||
Interest income on loans | $ | 17,786,193 | $ | 14,270,748 | 24.63 | % | $ | 3,515,445 | ||||||||
Loan fees | 603,239 | 811,972 | -25.71 | % | $ | (208,733 | ) | |||||||||
Interest income on securities | 8,756,313 | 4,656,765 | 88.03 | % | $ | 4,099,548 | ||||||||||
Total interest income | 27,145,745 | 19,739,485 | 37.52 | % | $ | 7,406,260 | ||||||||||
Total interest expense | 7,810,006 | 1,892,550 | 312.67 | % | $ | 5,917,456 | ||||||||||
Net interest income | 19,335,739 | 17,846,935 | 8.34 | % | $ | 1,488,804 | ||||||||||
(Credit) Provision for credit losses | (300,000 | ) | (970,000 | ) | -69.07 | % | $ | 670,000 | ||||||||
Net interest income after provision for credit losses | 19,635,739 | 18,816,935 | 4.35 | % | $ | 818,804 | ||||||||||
Service charges on deposit accounts | 2,202,060 | 2,180,719 | 0.98 | % | $ | 21,341 | ||||||||||
Net realized gains on sale of loans | 8,156 | 33,124 | -75.38 | % | $ | (24,968 | ) | |||||||||
Other noninterest income | 814,293 | 803,523 | 1.34 | % | $ | 10,770 | ||||||||||
Total noninterest income | 3,024,509 | 3,017,366 | 0.24 | % | $ | 7,143 | ||||||||||
Total noninterest expense | 15,760,658 | 14,837,584 | 6.22 | % | $ | 923,074 | ||||||||||
Earnings before income taxes | 6,899,590 | 6,996,717 | -1.39 | % | $ | (97,127 | ) | |||||||||
Income tax expense | 339,099 | 646,059 | -47.51 | % | $ | (306,960 | ) | |||||||||
Net income | $ | 6,560,491 | $ | 6,350,658 | 3.30 | % | $ | 209,833 | ||||||||
Per share | ||||||||||||||||
Earnings per common share - Basic | $ | 1.15 | $ | 1.10 | 4.55 | % | ||||||||||
Earnings per common share - Diluted | 1.15 | 1.10 | 4.55 | % | ||||||||||||
Cash dividends paid | 0.6450 | 0.6150 | 4.88 | % | ||||||||||||
Shares Outstanding | ||||||||||||||||
Average - Basic | 5,490,072 | 5,482,865 | -------- | |||||||||||||
Average - Diluted | 5,490,072 | 5,482,865 | -------- | |||||||||||||
At quarter end | ||||||||||||||||
Total assets | $ | 814,280,733 | $ | 760,853,918 | 7.02 | % | $ | 53,426,815 | ||||||||
Total assets (average) | 807,244,000 | 723,554,000 | 11.57 | % | $ | 83,690,000 | ||||||||||
Other real estate and repossessions | 3,480,404 | 236,685 | 1370.48 | % | $ | 3,243,719 | ||||||||||
Gross loans | 466,841,622 | 468,363,405 | -0.32 | % | $ | (1,521,783 | ) | |||||||||
Allowance for loan losses | 4,111,999 | 2,618,942 | 57.01 | % | $ | 1,493,057 | ||||||||||
Net loans | 462,729,623 | 465,744,463 | -0.65 | % | $ | (3,014,840 | ) | |||||||||
Net loans recovered (charge offs) | 22,056 | 786 | 2706.11 | % | $ | 21,270 | ||||||||||
Net overdrafts (charge offs) | (81,553 | ) | (85,271 | ) | -4.36 | % | $ | 3,718 | ||||||||
Total net (charge offs) | (59,497 | ) | (84,485 | ) | -29.58 | % | $ | 24,988 | ||||||||
Non-accrual loans | 216,515 | 4,018,143 | -94.61 | % | $ | (3,801,628 | ) | |||||||||
Loans past due 30+ days (excludes non accrual loans) | 493,190 | 397,757 | 23.99 | % | $ | 95,433 | ||||||||||
Average loans | 460,403,000 | 462,385,000 | -0.43 | % | $ | (1,982,000 | ) | |||||||||
Cash and due from Federal Reserve Bank | 70,892,134 | 35,297,069 | 100.84 | % | $ | 35,595,065 | ||||||||||
Average cash and due from Federal Reserve Bank | 68,699,000 | 58,551,000 | 17.33 | % | $ | 10,148,000 | ||||||||||
Securities and other restricted stock | 228,658,652 | 214,341,285 | 6.68 | % | $ | 14,317,367 | ||||||||||
Average securities and other restricted stock | 245,931,000 | 158,907,000 | 54.76 | % | $ | 87,024,000 | ||||||||||
Average total deposits | 640,408,000 | 617,363,000 | 3.73 | % | $ | 23,045,000 | ||||||||||
Total deposits | 628,011,577 | 650,101,056 | -3.40 | % | $ | (22,089,479 | ) | |||||||||
Non interest bearing demand | 148,850,104 | 155,689,415 | -4.39 | % | $ | (6,839,311 | ) | |||||||||
Interest bearing demand | 205,449,982 | 261,677,505 | -21.49 | % | $ | (56,227,523 | ) | |||||||||
Savings | 134,422,588 | 145,410,432 | -7.56 | % | $ | (10,987,844 | ) | |||||||||
Time | 139,288,903 | 87,323,704 | 59.51 | % | $ | 51,965,199 | ||||||||||
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) | 19,647,498 | 19,586,622 | 0.31 | % | $ | 60,876 | ||||||||||
Securities sold under agreements to repurchase | 28,583,996 | 28,113,553 | 1.67 | % | $ | 470,443 | ||||||||||
Shareholders' equity | 52,589,312 | 53,146,128 | -1.05 | % | $ | (556,816 | ) | |||||||||
Common Stock, Additional Paid in Capital | 31,544,430 | 30,767,157 | 2.53 | % | $ | 777,273 | ||||||||||
Retained Earnings | 42,629,322 | 40,585,067 | 5.04 | % | $ | 2,044,255 | ||||||||||
Share held by Deferred Plan and Treasury Stock | (4,564,244 | ) | (3,726,078 | ) | 22.49 | % | $ | (838,166 | ) | |||||||
Accumulated other comprehensive loss, net of tax benefits | (17,020,196 | ) | (14,480,018 | ) | 17.54 | % | $ | (2,540,178 | ) | |||||||
Goodwill and intangible assets (impact on Shareholders' equity) | 979,793 | 1,129,793 | -13.28 | % | $ | (150,000 | ) | |||||||||
Tangible shareholders' equity | 51,609,519 | 52,016,335 | -0.78 | % | $ | (406,816 | ) | |||||||||
Shareholders' equity (average) | 51,612,000 | 52,844,000 | -2.33 | % | $ | (1,232,000 | ) | |||||||||
Stock data | ||||||||||||||||
Market value - last close (end of period) | $ | 11.55 | $ | 16.07 | -28.13 | % | ||||||||||
Dividend payout ratio | 56.09 | % | 55.91 | % | 0.32 | % | ||||||||||
Book value (end of period) | 8.97 | 8.98 | -0.11 | % | ||||||||||||
Tangible book value | 8.77 | 8.78 | -0.11 | % | ||||||||||||
Market price to book value | 128.76 | % | 178.95 | % | -28.05 | % | ||||||||||
Market price to tangible book value | 131.70 | % | 183.03 | % | -28.04 | % | ||||||||||
Key performance ratios | ||||||||||||||||
Return on average assets (ROA) | 1.08 | % | 1.21 | % | -0.13 | % | ||||||||||
Return on average equity (ROE) | 16.95 | % | 16.55 | % | 0.40 | % | ||||||||||
Net interest margin (federal tax equivalent) | 3.63 | % | 3.60 | % | 0.03 | % | ||||||||||
Interest expense to average assets | 1.29 | % | 0.35 | % | 0.94 | % | ||||||||||
Total allowance for credit losses | ||||||||||||||||
to nonaccrual loans | 1899.18 | % | 65.18 | % | 1834.00 | % | ||||||||||
Total allowance for credit losses | ||||||||||||||||
to total loans | 0.88 | % | 0.56 | % | 0.32 | % | ||||||||||
| 0.05 | % | 0.86 | % | -0.81 | % | |||||||||||
Nonperforming assets to average assets | 0.46 | % | 0.59 | % | -0.13 | % | ||||||||||
Net charge-offs to average loans | 0.02 | % | 0.02 | % | 0.00 | % | ||||||||||
Equity to assets at period end | 6.46 | % | 6.99 | % | -0.53 | % | ||||||||||
SOURCE: United Bancorp, Inc. (Ohio)
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https://www.accesswire.com/798037/united-bancorp-inc-reports-increased-2023-third-quarter-and-nine-month-earnings-results
FAQ
What were UBCP's diluted earnings per share and net income for Q3 2023?
Did UBCP's performance improve compared to the same period last year?
What contributed to UBCP's improved performance?
Did UBCP maintain credit-related strength within its loan portfolio?
