Washington, D.C. 20549







Pursuant to Section 13 OR 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 29, 2020




(Exact name of registrant as specified in its charter)




Ohio   0-16540   34-1405357

(State or other jurisdiction

of incorporation)



File Number)


(IRS Employer

Identification No.)


201 South 4th Street, Martins Ferry, Ohio   43935-0010
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: (740) 633-0445


(Former name or former address, if changed since last report.)



Securities registered pursuant to Section 12(b) of the Act:


Title of each class


Trading Symbol(s)


Name of each exchange on which registered

Common Stock, Par Value $1.00   UBCP   NASDQ Capital Market

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐




Item 2.02.

Results of Operations and Financial Condition.

On July 29, 2020, United Bancorp, Inc. issued a press release announcing its results of operations and financial condition for and as of the three and six month periods ended June 30, 2020, unaudited. The press release is furnished as Exhibit No. 99 hereto.


Item 9.01.

Financial Statements and Exhibits.




The following exhibits are furnished herewith:




Exhibit Description

99    Press release, dated July 29, 2020, announcing Registrant’s unaudited results of operations and financial condition for and as of the three and six month periods ended June 30, 2020.


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


Dated: July 30, 2020


/s/ Randall M. Greenwood

    Randall M. Greenwood
    Senior Vice President and
    Chief Financial Officer

Exhibit 99



United Bancorp, Inc. 201 South 4th at Hickory Street, Martins Ferry, OH 43935


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


FOR IMMEDIATE RELEASE:    1:00 p.m. July 29, 2020

United Bancorp, Inc. Reports on its Earnings for the Six Months Ended June 30, 2020

MARTINS FERRY, OHIO ◆◆◆ United Bancorp, Inc. (NASDAQ: UBCP) reported diluted earnings per share of $0.57 and net income of $3,254,000 for the six months ended June 30, 2020, as compared to $0.57 and $3,260,000, respectively, for the corresponding six-month period in 2019. The Company’s diluted earnings per share for the three months ended June 30, 2020 was $0.29 as compared to $0.29 for the same period in the previous year. Even though the Company achieved the same level of earnings on a year-over-year basis, year-to-date earnings were negatively impacted by a higher provision for loan losses in recognition of the unprecedented economic environment in which it is presently operating due to the global Covid-19 pandemic.

Randall M. Greenwood, Senior Vice President, CFO and Treasurer remarked, “In light of current events, we are pleased to report on our overall solid financial performance for both the most recently ended quarter and the six months ended June 30, 2020. As noted above, our Company achieved diluted earnings per share of $0.29 for the second quarter of 2020 and $0.57 year-to-date— which was the same for both corresponding periods the previous year— even though we booked an additional $1,761,000 of loan loss provision to give proper recognition to the risks posed to our Company by the continuing COVID-19 pandemic. Contributing to our achievement of a sound level of earnings this past quarter was the solid growth that our Company experienced in its earning assets on a year-over-year basis. Year-over-year, gross loans increased by $20.5 million, or 4.8%, and securities and other restricted stock increased by $30.3 million or 18.3%. This strong growth in our earning assets, along with robust loan fee generation during the first six months of this year, led to an increase in total interest income of $1.3 million, or 10.1%, over the previous year. As we have formerly disclosed, our Company started to position its balance sheet to be more liability sensitive over the course of the past year in response to the FOMC’s sudden change in the direction of monetary policy, which helped to control overall interest expense levels. Even with this change, interest expense did increase by $436,000 over last year’s level. But, with our focus on both growing assets and aggressively managing our sensitivity, our Company saw a year-over-year increase in its net interest income of $868,000 or 8.4%. As of June 30, 2020, our Company’s net interest margin was 3.52%, which compares favorably to our peer.”

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 as of June 30, 2020. Year-over-year, 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 $2.0 million, or 0.43 percent of total loans, at quarter end versus $3.3 million and 0.79 percent, respectively, the previous year. Further, net loans charged off, excluding overdrafts, was $162,000, or .07% annualized. With our additional provision for loan losses this past quarter, our total allowance for loan losses increased forty basis points over the course of the past twelve months to a level of 0.90% and our total allowance for loan losses to nonaccrual loans was 254.2%, both of which are up significantly year-over-year. We are committed under the present situation with which we are confronted to closely work with our valued loan customers to keep their loans current by adopting payment relief practices fully supported by present regulatory and accounting guidance. We are hopeful that these positive actions will allow our customers to weather this present storm and our Company to maintain overall sound credit quality. Toward the end of the most recent quarter, we have started to see a large percentage of our loan customer base that received some level of payment relief begin to resume contractual payments on their loans. We are hopeful that this current trend will continue over the course of the remainder of the year; but, being realistic, we firmly recognize that our credit quality metrics could become worse if our economy does not normalize in the near term.” Greenwood further stated, “Our Company continues to have very sound levels of capital. As previously announced in the second quarter of last year, we enhanced our capital levels by issuing $20.0 million in subordinated debt at very favorable terms. Even though this capital is only measured at the bank-level, it has provided some very welcome cushion during these very challenging times. Overall, our Company saw shareholder’s equity grow by $9.0 million, or 15.8%, year-over-year, and its book value increase by $1.69 or 17.4%.”

Scott A. Everson, President and CEO stated, “As our Company continues to navigate through these very uncertain times, we are extremely grateful to report on our level of quarterly and six month earnings for 2020. Even though the earnings that we achieved for both of these periods equaled those realized last year when we had a record year, we continue to posture our Company for a longer duration downturn due to the negative macroeconomic forces with which we are presently confronted related to the impacts of the COVID-19 pandemic on both our domestic and world economies. Accordingly, we did sell some investment securities in the most recently ended quarter, which led to a gain of $1.18 million. With the present gain position that we have within our investment portfolio, we felt a partial monetization of this gain was prudent under the current circumstances in order to further build our allowance for loan losses to protect our Company. On a year-over-year basis, our allowance for loan losses has increased by $1.873 million or 87.4%.” Everson continued, “We are somewhat encouraged by the continuing strong performance of our overall loan portfolio; but, we firmly realize that some of the potential risk within this portfolio could be masked due to present payment relief practices and government stimulus support which ultimately will go away. Only time will truly tell how great this potential risk is for our Company and all financial institutions.” Everson further stated, “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 operating philosophy will, once again, prove to be sound as we support our customers and work through this present crisis; therefore, protecting our shareholder value.”

Everson concluded, “Our thoughts and prayers continue to go out to everyone as we work through the challenges presented to all of us by this horrible and unprecedented 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 of service possible under the circumstances. We are blessed to have both systems and personnel capable of enacting quick change in our delivery, which has led to results that are similar to those when we are fully functional as a community bank. From an operating perspective, our Company was able to get back to some semblance of normalcy during the latter part of the second quarter as we reopened our lobbies and, once again, began in-person banking without a scheduled appointment. Although we are now open to the public once again, we are taking extreme precautions in our operations by following strict and evolving guidance provided by both governmental

and health department authorities. We are truly blessed to have an extremely caring and resilient team of employees that continue to provide a high level of service while operating on a more restricted basis. It is only through the diligence of our team members that we have been able to produce the operating results that we have during the first six months of 2020. For this, our team is to be commended and I am extremely proud of their fortitude!”

As of June 30, 2020, United Bancorp, Inc. has total assets of $701.3 million and total shareholder’s equity of $66.0 million. Through its single bank charter, Unified Bank, the Company currently has nineteen banking offices that serve the Ohio Counties of Athens, Belmont, Carroll, Fairfield, Harrison, Jefferson and Tuscarawas. The Company also operates a Loan Production Office in Wheeling, WV. United Bancorp, Inc. 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 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,            %     $  
     2020            2019            Change     Change  



Interest income on loans

   $ 5,162,032        $ 5,109,571          1.03   $ 52,461  

Loan fees

     262,967          288,302          -8.79   $ (25,335

Interest income on securities

     1,524,563          1,250,230          21.94   $ 274,333  













Total interest income

     6,949,562          6,648,103          4.53   $ 301,459  

Total interest expense

     1,426,867          1,468,420          -2.83   $ (41,553













Net interest income

     5,522,695          5,179,683          6.62   $ 343,012  

Provision for loan losses

     1,408,000          120,000          1073.33   $ 1,288,000  

Net interest income after provision for loan losses

     4,114,695          5,059,683          -18.68   $ (944,988

Service charges on deposit accounts

     670,712          693,487          -3.28   $ (22,775

Net realized gains on sale of available-for-sale securities

     1,180,863          —            N/A     $ 1,180,863  

Net realized gains on sale of loans

     40,338          9,286          334.40   $ 31,052  

Other noninterest income

     263,091          244,278          7.70   $ 18,813  

Total noninterest income

     2,155,004          947,051          127.55   $ 1,207,953  

Total noninterest expense

     4,578,268          4,171,876          9.74   $ 406,392  













Earnings before income taxes

     1,691,431          1,834,858          -7.82   $ (143,427













Income tax expense

     16,533          188,033          -91.21   $ (171,500













Net income

   $ 1,674,898        $ 1,646,825          1.70   $ 28,073  

Per share


Earnings per common share - Basic

   $ 0.29        $ 0.29          0.00  

Earnings per common share - Diluted

     0.29          0.29          0.00  

Cash dividends paid

     0.1425          0.1350          5.56  

Shares Outstanding


Average - Basic

     5,466,035          5,520,259          —      

Average - Diluted

     5,466,035          5,520,259          —      
     For the Six Months Ended June 30,            %     $  
     2020            2019            Change     Change  



Interest income on loans

   $ 10,492,066        $ 10,240,712          2.45   $ 251,354  

Loan fees

     775,102          392,779          97.34   $ 382,323  

Interest income on securities

     3,001,308          2,329,796          28.82   $ 671,512  













Total interest income

     14,268,476          12,963,287          10.07   $ 1,305,189  

Total interest expense

     3,112,302          2,675,608          16.32   $ 436,694  













Net interest income

     11,156,174          10,287,679          8.44   $ 868,495  

Provision for loan losses

     1,971,000          210,000          838.57   $ 1,761,000  

Net interest income after provision for loan losses

     9,185,174          10,077,679          -8.86   $ (892,505

Service charges on deposit accounts

     1,329,859          1,406,781          -5.47   $ (76,922

Net realized gains on sale of available-for-sale securities

     1,250,363          —            N/A     $ 1,250,363  

Net realized gains on sale of loans

     46,370          13,090          254.24   $ 33,280  

Other noninterest income

     573,321          472,128          21.43   $ 101,193  

Total noninterest income

     3,199,913          1,891,999          69.13   $ 1,307,914  

Total noninterest expense

     8,988,850          8,334,204          7.85   $ 654,646  













Earnings before income taxes

     3,396,237          3,635,474          -6.58   $ (239,237













Income tax expense

     142,175          375,041          -62.09   $ (232,866













Net income

   $ 3,254,062        $ 3,260,433          -0.20   $ (6,371

Per share


Earnings per common share - Basic

   $ 0.57        $ 0.57          0.00  

Earnings per common share - Diluted

     0.57          0.57          0.00  

Cash dividends paid

     0.2850          0.2675          6.54  

Annualized yield based on quarter end close

     4.95        4.65        0.30  

Shares Outstanding


Average - Basic

     5,464,899          5,517,852          —      

Average - Diluted

     5,464,899          5,517,852          —      

Common stock, shares issued

     5,966,351          5,939,351          —      

Shares held as Treasury

     79,593          42,410          —      

At quarter end


Total assets

   $ 701,327,751        $ 648,627,000          8.12   $ 52,700,751  

Total assets (average)

     695,557,000          629,540,000          10.49   $ 66,017,000  

Other real estate and repossessions (“OREO”)

     719,000          30,000          2296.67   $ 689,000  

Gross loans

     445,900,352          425,432,621          4.81   $ 20,467,731  

Allowance for loan losses

     4,014,502          2,141,790          87.44   $ 1,872,712  

Net loans

     441,885,850          423,290,831          4.39   $ 18,595,019  

Non-accrual loans

     1,579,116          2,814,220          -43.89   $ (1,235,104

Loans past due 30+ days (excludes non accrual loans)

     375,457          530,648          -29.25   $ (155,191

Net loans charged-off

     162,427          56,179          189.12   $ 106,248  

Net overdrafts charged-off

     25,187          54,919          -54.14   $ (29,732

Net charge-offs

     187,614          111,098          68.87   $ 76,516  

Average loans

     447,023,000          415,829,000          7.50   $ 31,194,000  

Cash and due from Federal Reserve Bank

     21,647,194          20,107,980          7.65   $ 1,539,214  

Average cash and due from Federal Reserve Bank

     8,257,000          5,272,000          56.62   $ 2,985,000  

Securities and other restricted stock

     195,951,994          165,617,415          18.32   $ 30,334,579  

Average securities and other restricted stock

     188,128,000          131,739,000          42.80   $ 56,389,000  

Total deposits

     592,020,465          546,246,079          8.38   $ 45,774,386  

Non interest bearing demand

     127,582,412          113,354,585          12.55   $ 14,227,827  

Interest bearing demand

     255,090,198          205,850,931          23.92   $ 49,239,267  


     116,559,001          110,884,640          5.12   $ 5,674,361  

Time < $100,000

     80,887,226          99,092,547          -18.37   $ (18,205,321

Time > $100,000

     11,901,628          17,063,376          -30.25   $ (5,161,748

Average total deposits

     567,931,000          543,553,000          4.48   $ 24,378,000  

Advances from the Federal Home Loan Bank

     —            1,633          N/A     $ (1,633

Overnight advances

     —            —            N/A     $ —    

Term advances

     —            1,633          N/A     $ (1,633

Subordinated debt (net of unamortized issuance costs)

     19,449,651          19,396,372          N/A     $ 53,279  

Securities sold under agreements to repurchase

     9,494,389          7,674,291          23.72   $ 1,820,098  

Stockholders’ equity

     65,984,734          57,005,357          15.75   $ 8,979,377  

Stockholders’ equity (average)

     65,326,000          57,028,000          14.55   $ 8,298,000  

Stock data


Market value - last close (end of period)

   $ 11.52        $ 11.50          0.17  

Dividend payout ratio

     50.00        46.93        3.07  

Price earnings ratio

     9.93       x        10.09       x        -0.16  

Book value (end of period)

   $ 11.42        $ 9.73          17.37  

Market price to book value

     100.88        118.19        -14.65  

Key performance ratios


Return on average assets (ROA)

     0.94        1.04        -0.10  

Return on average equity (ROE)

     9.96        11.43        -1.47  

Net interest margin (federal tax equivalent))

     3.52        3.73        -0.21  

Interest expense to average assets

     0.89        0.85        0.04  

Total allowance for loan losses to nonaccrual loans

     254.22        76.11        178.11  

Total allowance for loan losses to total loans

     0.90        0.50        0.40  

Nonaccrual loans to total loans

     0.35        0.66        -0.31  

Nonaccrual loans and OREO to total assets

     0.33        0.44        -0.11  

Net charge-offs (recoveries) to average loans

     0.08        0.05        0.03  

Equity to assets at period end

     9.41        8.79        0.62