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United Bancorp's Q2 Earnings Grow Y/Y on Loan Expansion
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Shares of United Bancorp, Inc. (UBCP - Free Report) have inched up 0.1% since the company reported its earnings for the quarter ended June 30, 2025. This compares to the S&P 500 index’s 0.9% decline over the same time frame. Over the past month, the stock has declined 5.2% compared with the S&P 500’s 1.4% growth, reflecting a recent pullback despite steady long-term gains.
United Bancorp reported earnings per share (EPS) of 33 cents for the second quarter of 2025, up from 30 cents a year earlier.
Total interest income advanced 5.4% year over year to $10.4 million, bolstered by a 9.3% increase in interest income on loans and a 30.3% surge in loan fees. Interest income from securities, however, fell 5.6%. Total interest expense edged up 3.8% to $3.8 million, yielding net interest income of $6.6 million, up 6.4% from the year-ago quarter.
Net income of $1.9 million denoted a 10% increase from $1.7 million in the same quarter of 2024.
United Bancorp, Inc. Price, Consensus and EPS Surprise
Noninterest income for the quarter reached $1.4 million, up 17.3% from a year earlier. This growth was led by a 65.6% increase in other noninterest income and a 19.3% rise in gains on loan sales. While gains on securities sales were absent this quarter compared to a gain of $0.08 million last year, the overall income trajectory remained positive. On the cost side, noninterest expenses rose 3.1% to $5.8 million, driven by ongoing investment initiatives. Despite the rise, earnings before income taxes improved to $1.9 million, a 20.1% jump from the prior-year quarter.
Credit metrics remained broadly stable. Provision for credit losses dropped 12.2% to $0.2 million for the quarter. Net charge-offs held steady at 0.07% of average loans. Total nonaccrual loans increased to $1.8 million from $0.4 million a year earlier, largely due to a single commercial account. Nevertheless, loans past due by more than 30 days declined 43.3%, and total past-due and nonaccrual loans remained a modest 0.45% of gross loans. Nonperforming assets as a percentage of total assets stood at 0.60%, up from 0.46% last year but down sequentially.
Management Commentary
Chief Financial Officer Randall Greenwood described the company’s earnings growth as encouraging, given ongoing macroeconomic pressures. He cited several transformative projects undertaken over the past year, including branch expansion, technology investments, and product development, which have elevated noninterest expenses. However, he emphasized that these investments are laying the groundwork for future growth. Greenwood noted a year-over-year net interest margin expansion of 11 basis points to 3.65% and underscored asset growth as a driver of higher income. Total assets rose 3.2% to $847.9 million, driven by a 3.4% increase in gross loans, which, for the first time, exceeded the $500 million threshold. Cash held with the Federal Reserve Bank also jumped 32.3% to $49.7 million.
Chief executive officer Scott Everson reinforced the company’s long-term growth ambitions, citing a renewed offensive strategy launched in 2024 after a period of conservative balance sheet management. Everson pointed to continued strength in the bank’s small-business-oriented commercial loan portfolio, which makes up 80% of total loans, and highlighted strong deposit-gathering trends. He reaffirmed the company’s long-standing goal of reaching $1 billion in total assets and expressed optimism that current initiatives would accelerate the pace of growth.
Factors Influencing the Headline Numbers
The bank’s earnings performance was underpinned by growth in interest income and effective cost controls. Higher loan volumes and interest rates contributed to the uptick in revenue, while interest expense growth remained relatively modest. A shift in the deposit mix — marked by a decline in lower-cost deposits and an increase in time deposits — pushed up funding costs, though only slightly. Despite increased provisioning due to economic uncertainty, the bank managed to preserve strong credit quality. While nonaccrual loans rose substantially year over year, the ratio of net charge-offs to average loans remained stable, and overall asset quality compared favorably with industry peers.
Guidance Provided by Management
Management expressed confidence in sustaining growth trends through continued loan expansion and investment in infrastructure. The bank’s leadership anticipates improved performance in interest income and fee-based revenue streams in the coming quarters. The development of the Unified Mortgage Division and expansion of Treasury Management services are expected to support both top-line growth and deposit acquisition.
Additionally, the company’s focus on omni-channel banking and AI-powered customer support is aimed at enhancing efficiency and driving cross-sell opportunities.
Other Developments
During the quarter, United Bancorp made substantial progress on several strategic initiatives. Construction advanced on a new regional banking center in Wheeling, WV, scheduled to open within 90 days. Although not yet operational, the center has already contributed to loan growth through pre-opening business development activities. The company also continued work on its Unified Center in St. Clairsville, OH, which will consolidate functions, including accounting, IT, and customer support. The facility is expected to become operational in early 2026.
Technology enhancements and the integration of artificial intelligence into customer service channels were also underway, as part of a broader digital transformation effort. These projects are expected to boost operating leverage and improve client engagement. On the capital return front, United Bancorp raised its regular cash dividend by 5.8% and its special dividend by 16.7% year over year. In total, shareholders received 54.25 cents per share in cash dividends during the first half of 2025, a 9.1% increase from the prior year, yielding 6.3% based on the quarter-end closing price of $14.50.
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United Bancorp's Q2 Earnings Grow Y/Y on Loan Expansion
Shares of United Bancorp, Inc. (UBCP - Free Report) have inched up 0.1% since the company reported its earnings for the quarter ended June 30, 2025. This compares to the S&P 500 index’s 0.9% decline over the same time frame. Over the past month, the stock has declined 5.2% compared with the S&P 500’s 1.4% growth, reflecting a recent pullback despite steady long-term gains.
United Bancorp reported earnings per share (EPS) of 33 cents for the second quarter of 2025, up from 30 cents a year earlier.
Total interest income advanced 5.4% year over year to $10.4 million, bolstered by a 9.3% increase in interest income on loans and a 30.3% surge in loan fees. Interest income from securities, however, fell 5.6%. Total interest expense edged up 3.8% to $3.8 million, yielding net interest income of $6.6 million, up 6.4% from the year-ago quarter.
Net income of $1.9 million denoted a 10% increase from $1.7 million in the same quarter of 2024.
United Bancorp, Inc. Price, Consensus and EPS Surprise
United Bancorp, Inc. price-consensus-eps-surprise-chart | United Bancorp, Inc. Quote
Other Key Business Metrics
Noninterest income for the quarter reached $1.4 million, up 17.3% from a year earlier. This growth was led by a 65.6% increase in other noninterest income and a 19.3% rise in gains on loan sales. While gains on securities sales were absent this quarter compared to a gain of $0.08 million last year, the overall income trajectory remained positive. On the cost side, noninterest expenses rose 3.1% to $5.8 million, driven by ongoing investment initiatives. Despite the rise, earnings before income taxes improved to $1.9 million, a 20.1% jump from the prior-year quarter.
Credit metrics remained broadly stable. Provision for credit losses dropped 12.2% to $0.2 million for the quarter. Net charge-offs held steady at 0.07% of average loans. Total nonaccrual loans increased to $1.8 million from $0.4 million a year earlier, largely due to a single commercial account. Nevertheless, loans past due by more than 30 days declined 43.3%, and total past-due and nonaccrual loans remained a modest 0.45% of gross loans. Nonperforming assets as a percentage of total assets stood at 0.60%, up from 0.46% last year but down sequentially.
Management Commentary
Chief Financial Officer Randall Greenwood described the company’s earnings growth as encouraging, given ongoing macroeconomic pressures. He cited several transformative projects undertaken over the past year, including branch expansion, technology investments, and product development, which have elevated noninterest expenses. However, he emphasized that these investments are laying the groundwork for future growth. Greenwood noted a year-over-year net interest margin expansion of 11 basis points to 3.65% and underscored asset growth as a driver of higher income. Total assets rose 3.2% to $847.9 million, driven by a 3.4% increase in gross loans, which, for the first time, exceeded the $500 million threshold. Cash held with the Federal Reserve Bank also jumped 32.3% to $49.7 million.
Chief executive officer Scott Everson reinforced the company’s long-term growth ambitions, citing a renewed offensive strategy launched in 2024 after a period of conservative balance sheet management. Everson pointed to continued strength in the bank’s small-business-oriented commercial loan portfolio, which makes up 80% of total loans, and highlighted strong deposit-gathering trends. He reaffirmed the company’s long-standing goal of reaching $1 billion in total assets and expressed optimism that current initiatives would accelerate the pace of growth.
Factors Influencing the Headline Numbers
The bank’s earnings performance was underpinned by growth in interest income and effective cost controls. Higher loan volumes and interest rates contributed to the uptick in revenue, while interest expense growth remained relatively modest. A shift in the deposit mix — marked by a decline in lower-cost deposits and an increase in time deposits — pushed up funding costs, though only slightly. Despite increased provisioning due to economic uncertainty, the bank managed to preserve strong credit quality. While nonaccrual loans rose substantially year over year, the ratio of net charge-offs to average loans remained stable, and overall asset quality compared favorably with industry peers.
Guidance Provided by Management
Management expressed confidence in sustaining growth trends through continued loan expansion and investment in infrastructure. The bank’s leadership anticipates improved performance in interest income and fee-based revenue streams in the coming quarters. The development of the Unified Mortgage Division and expansion of Treasury Management services are expected to support both top-line growth and deposit acquisition.
Additionally, the company’s focus on omni-channel banking and AI-powered customer support is aimed at enhancing efficiency and driving cross-sell opportunities.
Other Developments
During the quarter, United Bancorp made substantial progress on several strategic initiatives. Construction advanced on a new regional banking center in Wheeling, WV, scheduled to open within 90 days. Although not yet operational, the center has already contributed to loan growth through pre-opening business development activities. The company also continued work on its Unified Center in St. Clairsville, OH, which will consolidate functions, including accounting, IT, and customer support. The facility is expected to become operational in early 2026.
Technology enhancements and the integration of artificial intelligence into customer service channels were also underway, as part of a broader digital transformation effort. These projects are expected to boost operating leverage and improve client engagement. On the capital return front, United Bancorp raised its regular cash dividend by 5.8% and its special dividend by 16.7% year over year. In total, shareholders received 54.25 cents per share in cash dividends during the first half of 2025, a 9.1% increase from the prior year, yielding 6.3% based on the quarter-end closing price of $14.50.