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8-K - FORM 8-K - UNITED BANCORP INC /OH/ | k50358e8vk.htm |
Exhibit 99
United Bancorp, Inc.
P. O. BOX
10 MARTINS FERRY, OHIO 43935 · Phone: 740/633-BANK Fax:740/633-1448
We are United to Better Serve You
We are United to Better Serve You
PRESS RELEASE
United Bancorp, Inc.
201 South 4th at Hickory Street, Martins Ferry, OH 43935
201 South 4th at Hickory Street, Martins Ferry, OH 43935
Contact:
|
James W. Everson | Randall M. Greenwood | ||
Chairman, President and CEO | Senior Vice President, CFO and Treasurer | |||
Phone:
|
(740) 633-0445 Ext. 6120 | (740) 633-0445 Ext. 6181 | ||
ceo@unitedbancorp.com | cfo@unitedbancorp.com |
FOR IMMEDIATE RELEASE: 11:00 AM April 29, 2011
Subject: | United Bancorp, Inc. Reports Earnings of $0.15 per Share for the Quarter Ended March 31, 2011, an Increase of 7.14% |
MARTINS FERRY, OHIO ¨¨¨ United Bancorp, Inc. (NASDAQ: UBCP), headquartered in
Martins Ferry, Ohio reported net income of $738,000 for the quarter ended March 31, 2011, compared
to $683,000 for the quarter ended March 31, 2010, an increase of 8.12%. On a per share basis, the
Companys diluted earnings were $0.15 for the three months ended March 31, 2011, as compared to
$0.14 for the three months ended March 31, 2010, an increase of 7.14%.
Randall M. Greenwood, Senior Vice President, CFO and Treasurer remarked, The Companys earnings in
the first quarter of 2011 generated an annualized 0.69% return on average assets (ROA) and an
8.26% return on average equity (ROE), compared to 0.61% ROA and 7.69% ROE for the three months
ended March 31, 2010. Comparing the quarter ended March 31, 2011 to the first quarter of 2010, the
Companys net interest margin increased to 4.18% from 4.00%, an increase of 18 basis points. In
dollars, the Companys net interest income increased approximately $56,000, due to an increase in
earning assets and the net interest margin. Comparing the same periods, Customer Service Fees on
deposits decreased $89,000, due in part to changes in the way our overdraft program is structured
as a result of pending regulatory guidance related to customer overdraft fees. The Company
recognized a gain on sale of securities of $370,000 for the three months ended March 31, 2011. The
Company sold its government sponsored mortgagebacked securities portfolio to take advantage of
the favorable rate environment on these short term investments and provide liquidity to restructure
the Companys balance sheet to shift towards higher yielding loan relationships. On the expense
side, the Companys 2011 earnings were affected by a period over period increase of $288,000 in our
provision for loan losses. The increase in the provision for loan losses was predicated primarily
upon the economic challenges facing the banking industry.
James W. Everson, Chairman, President and Chief Executive Officer stated, We are pleased to see
our first quarter earnings 8.12% above last years first quarter performance. Our budget
projections show a continuation of earnings improvement for this year as we implement our planned
cost savings initiatives as a follow up to our newly installed core processing system. We are also
pleased with our asset management and the improvement in our non performing loans, which decreased
by 22% compared to the first quarter last year resulting in non-performing loans to total loans at
1.69% at quarter end, well below our banking peer group. We continue our focus on keeping a
balance between maintaining our regulatory Well Capitalized status, sufficiently accruing into
our loan loss reserve while managing our asset quality and making capital expenditures for future
shareholder growth...plus cover our generous dividend payment policy.
United Bancorp, Inc. is headquartered in Martins Ferry, Ohio with total assets of approximately
$432.1 million and total shareholders equity of approximately $35.8 million as of March 31, 2011.
Through its single bank charter with its twenty banking offices and an operations center, The
Citizens Savings Bank through its Community Bank Division serves the Ohio Counties of Athens,
Fairfield and Hocking and through its Citizens Bank Division serves Belmont, Carroll, Harrison,
Jefferson and Tuscarawas. United Bancorp, Inc. is a part of the Russell Microcap Index and 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
Companys 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 clarify forward-looking statements, whether as a
result of new information, future events or otherwise.
United Bancorp, Inc. UBCP
At or for the Quarter Ended March 31, | % | |||||||||||
2011 | 2010 | Change | ||||||||||
Earnings |
||||||||||||
Total interest income |
$ | 5,038,058 | $ | 5,530,075 | -8.90 | % | ||||||
Total interest expense |
1,255,745 | 1,804,158 | -30.40 | % | ||||||||
Net interest income |
3,782,313 | 3,725,917 | 1.51 | % | ||||||||
Provision for loan losses |
647,576 | 359,858 | 79.95 | % | ||||||||
Customer service fees |
444,099 | 533,318 | -16.73 | % | ||||||||
Net realized gains on sale of loans |
29,896 | 13,648 | 119.05 | % | ||||||||
Net realized gains on sale of securities |
370,145 | | N/A | |||||||||
Net realized loss on sale of other
real estate and repossessions |
| (3,112 | ) | -100.00 | % | |||||||
Other noninterest income |
220,236 | 232,614 | -5.32 | % | ||||||||
Total noninterest income |
1,064,376 | 776,468 | 37.08 | % | ||||||||
Deposit insurance premiums |
86,994 | 102,282 | -14.95 | % | ||||||||
Noninterest expense (excluding deposit insurance
premiums) |
3,207,925 | 3,269,200 | -1.87 | % | ||||||||
Earnings before income taxes |
904,194 | 771,045 | 17.27 | % | ||||||||
Income tax expense |
166,240 | 88,501 | 87.84 | % | ||||||||
Net income |
$ | 737,954 | $ | 682,544 | 8.12 | % | ||||||
Per share |
||||||||||||
Earnings per common share Basic |
$ | 0.15 | $ | 0.14 | 7.14 | % | ||||||
Earnings per common share Diluted |
0.15 | 0.14 | 7.14 | % | ||||||||
Cash dividends paid |
0.14 | 0.14 | 0.00 | % | ||||||||
Annualized yield based on quarter end close |
7.13 | % | 6.51 | % | 9.56 | % | ||||||
Book value (end of period) |
7.52 | 7.72 | -2.59 | % | ||||||||
Shares Outstanding |
||||||||||||
Average Basic |
4,753,955 | 4,665,937 | | |||||||||
Average Diluted |
4,772,218 | 4,682,449 | | |||||||||
At quarter end |
||||||||||||
Total assets |
$ | 432,075,873 | $ | 450,261,103 | -4.04 | % | ||||||
Total assets (average) |
429,884,000 | 447,160,000 | -3.86 | % | ||||||||
Other real estate and repossessions |
2,035,084 | 1,459,196 | 39.47 | % | ||||||||
Gross loans |
277,073,804 | 260,489,459 | 6.37 | % | ||||||||
Allowance for loan losses |
(2,520,611 | ) | (2,526,665 | ) | -0.24 | % | ||||||
Net loans |
274,553,193 | 257,962,794 | 6.43 | % | ||||||||
Net loans charged-off |
865,701 | 223,210 | 287.84 | % | ||||||||
Non-performing loans |
4,673,000 | 5,985,000 | -21.92 | % | ||||||||
Certificates of Deposit in other financial institutions |
1,682,000 | 11,272,000 | -85.08 | % | ||||||||
Average loans |
279,181,000 | 260,009,000 | 7.37 | % | ||||||||
Securities and other restricted stock |
110,037,573 | 107,604,622 | 2.26 | % | ||||||||
Shareholders equity |
35,751,168 | 36,038,134 | -0.80 | % | ||||||||
Shareholders equity (average) |
35,751,000 | 35,481,000 | 0.76 | % | ||||||||
Stock data |
||||||||||||
Market value last close (end of period) |
$ | 8.41 | $ | 8.60 | -2.21 | % | ||||||
Dividend payout ratio |
93.33 | % | 100.00 | % | -6.67 | % | ||||||
Price earnings ratio |
14.02 | x | 16.54 | x | -15.25 | % | ||||||
Market price to book value |
1.12 | 1.11 | 0.39 | % | ||||||||
Key performance ratios |
||||||||||||
Return on average assets (ROA) |
0.69 | % | 0.61 | % | 0.08 | % | ||||||
Return on average equity (ROE) |
8.26 | % | 7.69 | % | 0.56 | % | ||||||
Net interest margin (Federal tax equivalent) |
4.18 | % | 4.00 | % | 0.18 | % | ||||||
Interest expense to average assets |
1.17 | % | 1.61 | % | -0.44 | % | ||||||
Total allowance for loan losses
to nonperforming loans |
53.94 | % | 42.22 | % | 11.72 | % | ||||||
Total allowance for loan losses
to total loans |
0.91 | % | 0.97 | % | -0.06 | % | ||||||
Nonperforming loans to total loans |
1.69 | % | 2.30 | % | -0.61 | % | ||||||
Nonperforming assets to total assets |
1.55 | % | 1.65 | % | -0.10 | % | ||||||
Net charge-offs to average loans |
1.24 | % | 0.34 | % | 0.90 | % | ||||||
Equity to assets at period end |
8.27 | % | 8.00 | % | 0.27 | % |