Shares of United Bancorp, Inc. (UBCP Quick QuoteUBCP - Free Report) have declined 2.7% since the company reported results for the quarter ended March 31, 2026, compared with a 1.1% growth in the S&P 500 index over the same period. Over the past month, the stock fell 4.4%, underperforming the broader market’s 6.8% growth.

United Bancorp reported first-quarter 2026 earnings per share of 33 cents, which increased 3.1% from 32 cents a year earlier. 

Total interest income rose 1.8% year over year to $10 million, driven primarily by higher loan income and loan fees. Net interest income climbed 4.2% to $6.5 million as total interest expense declined 2.6% to $3.5 million. Total noninterest income increased 11.2% to $1.4 million, though total noninterest expense rose 10.2% to $6.2 million as the company continued investing in infrastructure and technology initiatives.

Net income of $1.91 million denoted a 2.1% increase from $1.87 million in the year-ago quarter.

United Bancorp, Inc. Price, Consensus and EPS Surprise

United Bancorp, Inc. price-consensus-eps-surprise-chart | United Bancorp, Inc. Quote

Balance Sheet Growth and Deposit Trends

United Bancorp ended the quarter with total assets of $858.5 million, up 3.4% from a year earlier. Gross loans increased 0.7% to $500.3 million, while securities holdings rose 2.6% to $239.9 million. Bank-owned life insurance nearly doubled year over year to $38.2 million.

Deposit growth remained a key driver of balance-sheet expansion. Total deposits increased 6.8% year over year to $666.7 million. Lower-cost funding sources — including noninterest-bearing demand, interest-bearing demand and savings deposits — grew by $27.4 million to $474.6 million, accounting for 71.2% of total deposits. Higher-cost time deposits rose $15.2 million to $192 million.

The company also benefited from the maturity of a $20 million Federal Home Loan Bank advance carrying a 4.39% interest rate, contributing to lower funding costs. Advances from the Federal Home Loan Bank declined 26.7% year over year to $55 million.

Margin Expansion and Credit Quality

United Bancorp continued to report improving profitability metrics. Net interest margin expanded 12 basis points year over year to 3.72%, while interest expense relative to average assets declined to 1.64% from 1.75%. Management said it expects favorable trends in net interest income and margin expansion to continue through 2026.

Credit-quality metrics, however, reflected some deterioration from unusually low prior-year levels. Nonaccrual loans surged 234.4% year over year to $6.5 million, primarily due to one commercial loan relationship of approximately $4.2 million being placed on nonaccrual status during the quarter. Total past-due and nonaccrual loans represented 1.36% of gross loans, compared with 0.57% a year ago. Still, management noted that delinquency levels declined sequentially from Dec. 31, 2025, levels and emphasized that the issue was isolated rather than indicative of broader portfolio weakness.

Net charge-offs remained minimal at $0.04 million, while the allowance for credit losses totaled $4.3 million, or 0.85% of total loans.

Management Commentary and Strategic Investments

Management highlighted ongoing investments in infrastructure, technology and customer-service capabilities as central to the company’s long-term growth strategy. Executives acknowledged that these initiatives are currently dilutive to earnings but said they are expected to generate stronger profitability over the next 12 to 24 months.

Chairman, President and CEO Scott Everson pointed to strong early performance from the company’s new Wheeling, W.Va., banking center, which opened in December 2025. According to management, the office has already exceeded its first-year loan growth forecast within its first three months of operation and achieved roughly two-thirds of its projected first-year deposit growth target.

The company also continued expanding its Unified Mortgage Division and treasury management operations, both of which contributed to higher fee income and deposit growth. Management additionally disclosed plans to implement artificial intelligence-based customer service tools and a fully digital omnichannel account-opening system as part of broader modernization efforts. These systems are expected to be operational by year-end and integrated into the company’s upcoming Unified Customer Care Center in St. Clairsville, OH.

Capital Position and Shareholder Returns

United Bancorp remained well capitalized during the quarter. Shareholders’ equity increased 11% year over year to $67.5 million, while tangible shareholders’ equity rose 11.3% to $66.8 million. Book value per share increased 10.8% to $11.29.

The company paid a combined regular and special cash dividend totaling 36.75 per share during the quarter, up from 35.75 a year earlier. The regular quarterly dividend increased 5.5% year over year to 19.25 per share.

Other Developments

During the quarter, United Bancorp continued investing in operational and digital infrastructure rather than pursuing acquisitions or divestitures. The company is developing an AI-powered customer inquiry platform and implementing omnichannel digital account-opening capabilities. It is also preparing to launch its Unified Customer Care Center, which management said could evolve into a “digital bank” supporting future growth initiatives.