United Bancorp, Inc. Reports Record Earnings for Both the Fourth Quarter and Year Ending December 31, 2020
United Bancorp, Inc. (NASDAQ: UBCP) reported strong financial results for 2020, achieving record net income of $7,953,000 and diluted earnings per share of $1.39, representing a 16.8% increase year-over-year. The fourth quarter saw a 48.4% rise in earnings per share, totaling $0.46. Despite challenges from the COVID-19 pandemic, the company increased its provision for loan losses to 1.15% of total loans and saw solid growth in earning assets, with average loans rising by 6.1%. However, overall expenses increased due to pandemic-related impacts, highlighting ongoing economic uncertainties.
- Record net income of $7,953,000, up 16.8% year-over-year.
- Diluted EPS increased to $1.39, compared to $1.19 in 2019.
- Fourth quarter EPS increased 48.4% to $0.46.
- Average loans grew by $25.8 million, or 6.1%.
- Net interest income rose by $1,984,000, or 9.5%.
- Solid credit quality metrics with nonaccrual loans at 0.19%.
- Increased provision for loan losses of $2,429,000 due to the pandemic.
- Overall earnings negatively affected by higher expenses related to COVID-19.
MARTINS FERRY, OH / ACCESSWIRE / January 21, 2021 / United Bancorp, Inc. (NASDAQ:UBCP) reported diluted earnings per share of
Randall M. Greenwood, Senior Vice President, CFO and Treasurer remarked, "In light of the events that have had a significant impact on our Company and economy as a whole this past year, we are extremely pleased to report on our record earnings performance for both the most recently ended quarter and the twelve months ended December 31, 2020. For the fourth quarter of 2020, our Company achieved net income of
Greenwood continued, "Even though we fully realize that the continuing pandemic situation has the potential to change our qualitative metrics relating to credit, we have successfully maintained overall strength and stability within our loan portfolio throughout the course of this past year and at year-end. As of December 31, 2020, 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
Scott A. Everson, President and CEO stated, "As our Company navigated through an unprecedented and highly uncertain operating environment in 2020, I am extremely proud to report that we responded well to the challenges with which we were confronted and produced record earnings. We are exceptionally grateful for the level of increased earnings that we achieved in the pandemic-challenged economy in which we operated this past year and continue to be both mindful and respectful of the continuing challenges that it will pose for our Company in the current year. Accordingly, we continue to posture our Company for a longer duration downturn due to the negative macroeconomic forces with which we continue to be confronted related to the impacts of the pandemic on both our domestic and world economies. But, with the recent development of a COVID-19 vaccine and our solid credit related metrics and loss coverage related thereto, our Company did not contribute an additional provision to our relatively robust loan loss reserve this past quarter. Giving consideration to our exceptionally strong coverage ratio at year-end, we may be able to continue this course in the coming year if our credit metrics remain solid and the economy continues to improve and get closer to pre-pandemic performance levels." Everson continued, "We are comforted to know that our Company continues to be well capitalized under regulatory and industry guidelines, which should help us weather any storm that may confront us. In addition, our Company has always had a long-term view, predicated on sound underwriting practices, superior customer service and prudent liquidity and capital management, which has served us well through various operating environments. We are confident that this philosophy will again prove to be sound as we support our customers and work through this present crisis; therefore, protecting our shareholder value."
Everson concluded, "This past year was extremely trying for our nation and our thoughts and prayers continue to go out to everyone as we all work through the challenges presented to us by this horrible COVID-19 pandemic. Our number one priority continues to be protecting the health and welfare of our team members and customer base, while delivering the highest quality service possible under the circumstances. During this time of great uncertainty, we are blessed to have both systems and personnel capable of delivering quality service and support to our valued customers. From an operating perspective, our Company was back to full operations and availability for the entire second half of 2020. In addition, I am extremely happy to report that we opened our newest Banking Center in Moundsville, West Virginia during this timeframe. This new location, our Company's twentieth full-service Banking Center, is our first one located in the State of West Virginia. Although we are open to the public, we are taking extreme precautions in our operations by following the strict and further evolving guidance provided by both governmental and health authorities. We are truly blessed to have an extremely caring and resilient team of employees that helped our Company perform at a record level during arguably the most demanding environment in which any of us have ever worked. It is only through the diligence of our team members that we have been able to execute at a high level and achieve the record level of earnings that we did in 2020. For this, our team is to be commended and, as always, I am exceptionally proud of their willingness to overcome extreme obstacles, their ability to produce stellar results under trying circumstances and, in general, their overall fortitude… our Company is truly blessed to have such a motivated and Unified Team!"
As of December 31, 2020, 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.
| For the Three Months Ended | ||||||||||||||||
| December 31, 2020 | December 31, 2019 | % Change | $ Change | |||||||||||||
Earnings | ||||||||||||||||
Interest income on loans | $ | 5,024,010 | $ | 5,287,127 | -4.98 | % | $ | (263,117 | ) | |||||||
Loan fees | 428,939 | 361,019 | 18.81 | % | $ | 67,920 | ||||||||||
Interest income on securities | 1,215,225 | 1,501,386 | -19.06 | % | $ | (286,161 | ) | |||||||||
Total interest income | 6,668,174 | 7,149,532 | -6.73 | % | $ | (481,358 | ) | |||||||||
Total interest expense | 673,920 | 1,720,946 | -60.84 | % | $ | (1,047,026 | ) | |||||||||
Net interest income | 5,994,254 | 5,428,586 | 10.42 | % | $ | 565,668 | ||||||||||
Provision for loan losses | 33,000 | 578,000 | -94.29 | % | $ | (545,000 | ) | |||||||||
Net interest income after provision for loan losses | 5,961,254 | 4,850,586 | 22.90 | % | $ | 1,110,668 | ||||||||||
Service charges on deposit accounts | 605,161 | 705,799 | -14.26 | % | $ | (100,638 | ) | |||||||||
Net realized gains on sale of loans | 86,965 | 16,285 | 434.02 | % | $ | 70,680 | ||||||||||
Other noninterest income | 683,782 | 271,590 | 151.77 | % | $ | 412,192 | ||||||||||
Total noninterest income | 1,375,908 | 993,674 | 38.47 | % | $ | 382,234 | ||||||||||
Total noninterest expense | 4,410,309 | 3,986,369 | 10.63 | % | $ | 423,940 | ||||||||||
Income before income taxes | 2,926,853 | 1,857,891 | 57.54 | % | $ | 1,068,962 | ||||||||||
Income tax expense | 286,461 | 89,482 | 220.13 | % | $ | 196,979 | ||||||||||
Net income | $ | 2,640,392 | $ | 1,768,409 | 49.31 | % | $ | 871,983 | ||||||||
Per share | ||||||||||||||||
Earnings per common share - Basic | $ | 0.46 | $ | 0.31 | 48.39 | % | $ | 0.15 | ||||||||
Earnings per common share - Diluted | 0.46 | 0.31 | 48.39 | % | $ | 0.15 | ||||||||||
Cash Dividends paid | 0.1425 | 0.14 | 1.79 | % | $ | 0.00 | ||||||||||
Shares Outstanding | ||||||||||||||||
Average - Basic | 5,458,365 | 5,550,469 | -------- | |||||||||||||
Average - Diluted | 5,458,365 | 5,550,469 | -------- | |||||||||||||
| For the Year Ended December 31, | ||||||||||||||||
| 2020 | 2019 | % Change | $ Change | |||||||||||||
Earnings | ||||||||||||||||
Interest income on loans | $ | 20,581,592 | $ | 20,847,902 | -1.28 | % | $ | (266,310 | ) | |||||||
Loan fees | 1,516,804 | 942,181 | 60.99 | % | $ | 574,623 | ||||||||||
Interest income on securities | 5,529,290 | 5,243,676 | 5.45 | % | $ | 285,614 | ||||||||||
Total interest income | 27,627,686 | 27,033,759 | 2.20 | % | $ | 593,927 | ||||||||||
Total interest expense | 4,733,501 | 6,123,077 | -22.69 | % | $ | (1,389,576 | ) | |||||||||
Net interest income | 22,894,185 | 20,910,682 | 9.49 | % | $ | 1,983,503 | ||||||||||
Provision for loan losses | 3,337,000 | 908,000 | 267.51 | % | $ | 2,429,000 | ||||||||||
Net interest income after provision for loan losses | 19,557,185 | 20,002,682 | -2.23 | % | $ | (445,497 | ) | |||||||||
Service charges on deposit accounts | 2,580,044 | 2,843,646 | -9.27 | % | $ | (263,602 | ) | |||||||||
Gains on sale of available-for-sale securities | 2,593,613 | - | N/A | $ | 2,593,613 | |||||||||||
Net realized gains on sale of loans | 179,980 | 54,226 | 231.91 | % | $ | 125,754 | ||||||||||
Other noninterest income | 1,561,945 | 990,444 | 57.70 | % | $ | 571,501 | ||||||||||
Total noninterest income | 6,915,582 | 3,888,316 | 77.86 | % | $ | 3,027,266 | ||||||||||
Total noninterest expense | 17,890,434 | 16,482,370 | 8.54 | % | $ | 1,408,064 | ||||||||||
Income before income taxes | 8,582,333 | 7,408,628 | 15.84 | % | $ | 1,173,705 | ||||||||||
Income tax expense | 628,850 | 599,038 | 4.98 | % | $ | 29,812 | ||||||||||
Net income | $ | 7,953,483 | $ | 6,809,590 | 16.80 | % | $ | 1,143,893 | ||||||||
Per share | ||||||||||||||||
Earnings per common share - Basic | $ | 1.39 | $ | 1.19 | 16.81 | % | $ | 0.200 | ||||||||
Earnings per common share - Diluted | 1.39 | 1.19 | 16.81 | % | $ | 0.200 | ||||||||||
Cash Dividends paid | 0.570 | 0.545 | 4.59 | % | $ | 0.025 | ||||||||||
Book value (end of period) | 11.45 | 10.24 | 11.82 | % | $ | 1.210 | ||||||||||
Shares Outstanding | ||||||||||||||||
Average - Basic | 5,468,658 | 5,525,965 | -------- | |||||||||||||
Average - Diluted | 5,468,658 | 5,525,965 | -------- | |||||||||||||
Common stock, shares issued | 6,046,351 | 5,959,351 | -------- | |||||||||||||
Shares held as Treasury Stock | 79,593 | 42,400 | -------- | |||||||||||||
At year end | ||||||||||||||||
Total assets | $ | 693,401,559 | $ | 685,705,764 | 1.12 | % | $ | 7,695,795 | ||||||||
Total assets (average) | 689,288,000 | 648,930,000 | 6.22 | % | $ | 40,358,000 | ||||||||||
Cash and due from Federal Reserve Bank | 51,591,508 | 14,984,518 | 244.30 | % | $ | 36,606,990 | ||||||||||
Average cash and due from Federal Reserve Bank | 25,522,000 | 5,405,000 | 372.19 | % | $ | 20,117,000 | ||||||||||
Securities and other restricted stock | 162,243,989 | 192,797,436 | -15.85 | % | $ | (30,553,447 | ) | |||||||||
Average Securities and other restricted stock | 167,420,000 | 157,659,000 | 6.19 | % | $ | 9,761,000 | ||||||||||
Other real estate and repossessions ("OREO") | 720,850 | 818,450 | -11.92 | % | $ | (97,600 | ) | |||||||||
Gross loans | 443,490,525 | 441,548,353 | 0.44 | % | $ | 1,942,172 | ||||||||||
Average loans | 446,256,000 | 420,487,000 | 6.13 | % | $ | 25,769,000 | ||||||||||
Allowance for loan losses | 5,112,796 | 2,231,118 | 129.16 | % | $ | 2,881,678 | ||||||||||
Net loans | 438,377,729 | 439,317,235 | -0.21 | % | $ | (939,506 | ) | |||||||||
Net loans charged off | 378,297 | 601,007 | -37.06 | % | $ | (222,710 | ) | |||||||||
Net overdrafts charged off | 77,024 | 118,763 | -35.14 | % | $ | (41,739 | ) | |||||||||
Total net charge offs | 455,321 | 719,770 | -36.74 | % | $ | (264,449 | ) | |||||||||
Non-accrual loans | 626,240 | 1,452,050 | -56.87 | % | $ | (825,810 | ) | |||||||||
Loans past due 30+ days (excludes non accrual loans) | 205,922 | 1,208,227 | -82.96 | % | $ | (1,002,305 | ) | |||||||||
Average total deposits | 572,384,000 | 541,176,000 | 5.77 | % | $ | 31,208,000 | ||||||||||
Total Deposits | 579,534,113 | 548,068,392 | 5.74 | % | $ | 31,465,721 | ||||||||||
Non interest bearing deposits | 122,736,625 | 101,334,810 | 21.12 | % | $ | 21,401,815 | ||||||||||
Interest bearing demand | 253,550,084 | 233,044,782 | 8.80 | % | $ | 20,505,302 | ||||||||||
Savings | 122,548,757 | 108,218,061 | 13.24 | % | $ | 14,330,696 | ||||||||||
Time | 80,698,647 | 105,470,739 | -23.49 | % | $ | (24,772,092 | ) | |||||||||
Repurchase Agreements | 12,705,419 | 6,915,603 | 83.72 | % | $ | 5,789,816 | ||||||||||
Advances from the Federal Home Loan Bank | - | 39,800,000 | N/A | $ | (39,800,000 | ) | ||||||||||
Overnight advances | - | 39,800,000 | N/A | $ | (39,800,000 | ) | ||||||||||
Shareholders' equity | 68,327,896 | 59,921,955 | 14.03 | % | $ | 8,405,941 | ||||||||||
Shareholders' equity (average) | 69,455,000 | 60,368,000 | 15.05 | % | $ | 9,087,000 | ||||||||||
Stock data | ||||||||||||||||
Market value - last close (end of period) | $ | 13.18 | $ | 14.30 | -7.83 | % | ||||||||||
Dividend payout ratio | 41.01 | % | 45.80 | % | -10.46 | % | ||||||||||
Price earnings ratio | 9.48 | x | 12.02 | x | -21.09 | % | ||||||||||
Market Price to Book Value | 115 | % | 140 | % | -27.00 | % | ||||||||||
Annualized yield based on year end close | 4.32 | % | 3.92 | % | -0.63 | % | ||||||||||
Key performance ratios | ||||||||||||||||
Return on average assets (ROA) | 1.15 | % | 1.05 | % | 0.10 | % | ||||||||||
Return on average equity (ROE) | 11.45 | % | 11.28 | % | 0.17 | % | ||||||||||
Net interest margin (Federal tax equivalent) | 3.76 | % | 3.67 | % | 0.09 | % | ||||||||||
Interest expense to average assets | 0.69 | % | 0.94 | % | -0.25 | % | ||||||||||
Total allowance for loan losses | ||||||||||||||||
to nonperforming loans | 816.43 | % | 153.65 | % | 662.78 | % | ||||||||||
Total allowance for loan losses | ||||||||||||||||
to total loans | 1.15 | % | 0.51 | % | 0.64 | % | ||||||||||
Nonaccrual loans to total loans | 0.14 | % | 0.33 | % | -0.19 | % | ||||||||||
Non accrual loans and OREO to total assets | 0.19 | % | 0.33 | % | -0.14 | % | ||||||||||
Net loan charge-offs to average loans (excludes overdraft charge-offs) | 0.08 | % | 0.14 | % | -0.05 | % | ||||||||||
Equity to assets at period end | 9.85 | % | 8.74 | % | 1.27 | % | ||||||||||
CONTACT:
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.
View source version on accesswire.com:
https://www.accesswire.com/625290/United-Bancorp-Inc-Reports-Record-Earnings-for-Both-the-Fourth-Quarter-and-Year-Ending-December-31-2020
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