Community banks are navigating a mixed operating backdrop marked by still-elevated funding costs, competitive deposit pricing and the need to balance loan growth with disciplined credit risk management. In this environment, United Bancorp, Inc. (UBCP Quick QuoteUBCP - Free Report) and Ohio Valley Banc Corp. (OVBC Quick QuoteOVBC - Free Report) stand out as two regional institutions with similar core banking foundations but distinct operating footprints and business levers. UBCP operates through Unified Bank with 18 banking centers across multiple Ohio counties and parts of West Virginia, while OVBC runs a broader multi-subsidiary model that includes The Ohio Valley Bank Company, Loan Central (consumer finance) and an insurance agency, creating multiple revenue streams beyond traditional banking.

While UBCP remains focused on expanding its core community banking franchise through measured balance sheet growth and deeper penetration across its Ohio and West Virginia markets, OVBC leverages a more diversified operating model that includes consumer finance and insurance alongside traditional banking. With both positioned to benefit from improving rate dynamics and steady regional economic activity, the question remains: which stock offers the more attractive opportunity right now? Let’s take a closer look.

Stock Performance & Valuation: OVBC vs. UBCP

OVBC (up 9.3%) has outperformed UBCP (up 2.2%) over the past three months. In the past year, Ohio Valley Banc stock has rallied 64.8% compared with United Bancorp’s gain of 11.1%.

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Meanwhile, OVBC is trading at a trailing 12-month price-to-earnings (P/E) ratio of 13.3X, above its median of 9.9X over the past five years. UBCP’s trailing 12-month P/E multiple sits at 11.1X, above its last five-year median of 9.7X. Ohio Valley Banc and United Bancorp both appear to be cheap when compared with the Zacks Finance sector average of 18.7X.

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Factors Driving Ohio Valley Banc’s Stock

Loan growth is emerging as a clear driver, with Ohio Valley Banc continuing to expand in its targeted, higher-return categories. The company is building its portfolio through commercial real estate, commercial and industrial, and residential real estate lending, while intentionally scaling back consumer loans that have been viewed as less profitable. This mix shift supports stronger earning-asset momentum and helps reinforce the quality and durability of growth rather than simply chasing volume.

Improving net interest dynamics are also supporting the stock, as Ohio Valley Banc benefits from higher earning-asset yields alongside better funding economics. Net interest margin has strengthened as the balance sheet has tilted toward higher-yielding loans and securities, while deposit costs have eased due to a shift away from higher-cost time deposits and toward lower-cost checking, savings, NOW and money market accounts. This combination enhances core profitability and provides a favorable backdrop for earnings resilience.

Finally, operating discipline is reinforcing bottom-line performance, with management taking steps to keep costs contained while still supporting strategic initiatives. Personnel-related expenses have declined as the voluntary early retirement program implemented in 2024 reduced the full-time equivalent employee base, and efficiency metrics have improved as overhead growth has remained limited. Even with some pressure from software and assessment costs, the overall expense trajectory has supported stronger operating leverage.

Factors Driving United Bancorp’s Stock

UBCP’s stock is being driven by steady balance-sheet expansion that is translating into stronger core banking revenue. Management highlighted a clear growth trend in total assets, supported by increases in both loans and deposits, and expects continued momentum as demand remains strong in its relationship-driven small-business commercial portfolio. This expanding footprint, coupled with initiatives tied to new market entry, reinforces United Bancorp’s longer-term goal of scaling toward the $1.0 billion asset level.

A second key factor is improving net interest performance, supported by a combination of higher earning-asset yields and active balance-sheet positioning. United Bancorp has benefited from loan repricing in a higher-rate environment, and it also deployed excess liquidity into higher-yield municipal securities to enhance interest income going forward. With expectations that funding costs may begin easing, margin expansion remains an important underpinning for the stock.

Finally, UBCP’s multi-pronged investment strategy is shaping investor sentiment around future operating leverage. The company is building infrastructure through a new Wheeling banking center, scaling Unified Mortgage and Treasury Management programs, investing in digital transformation and AI-driven customer support, and creating a centralized “Unified Center.” These initiatives pressure current expenses but are designed to deepen relationships, strengthen deposit gathering and support more profitable growth over time.

Choose OVBC Over UBCP Now

While both Ohio Valley Banc and United Bancorp are positioned to benefit from a stabilizing rate backdrop and steady community-bank demand, their current setups suggest different levels of upside, and OVBC appears better positioned right now. OVBC has delivered significantly stronger stock performance in both the past three months and the past year, reflecting rising investor confidence in its earnings momentum and a more diversified business model that extends beyond traditional banking into consumer finance and insurance. That strength has pushed Ohio Valley Banc’s valuation above its own five-year median, but it still remains inexpensive relative to the broader Finance sector, leaving room for further re-rating if execution holds.

United Bancorp, meanwhile, has shown steady progress through balance-sheet growth and continued investments in expansion initiatives, but its recent stock gains have been more muted. Even though UBCP also trades at a discount to the sector and remains reasonably valued versus its history, the near-term catalyst profile appears less compelling compared to OVBC’s sharper operational momentum and stronger market recognition. With better relative performance, a more diversified earnings engine and valuation still below sector norms, OVBC looks like the stronger pick over UBCP right now.