[PART I - FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) United Bancorp, Inc. reported increased assets and decreased net income for Q1 2022, primarily due to higher expenses and unrealized securities losses [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $733.4 million, while stockholders' equity decreased to $63.9 million due to unrealized losses Condensed Consolidated Balance Sheets (in thousands) | | March 31, 2022 (Unaudited) | December 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | $733,399 | $724,456 | | **Loans, net** | $459,119 | $450,699 | | **Total Deposits** | $612,494 | $605,136 | | **Total Liabilities** | $669,498 | $652,755 | | **Total Stockholders' Equity** | $63,901 | $71,701 | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net income decreased to $1.75 million in Q1 2022, primarily due to a significant rise in noninterest expenses Condensed Consolidated Statements of Income (in thousands) | | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | **Net Interest Income** | $5,510 | $5,313 | | **Provision (Credit) for Loan Losses** | $(500) | $(205) | | **Total Noninterest Income** | $987 | $926 | | **Total Noninterest Expense** | $5,110 | $4,449 | | **Net Income** | $1,751 | $1,908 | | **Diluted Earnings Per Share** | $0.3025 | $0.33 | [Condensed Consolidated Statements of Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) The company reported a comprehensive loss of $6.0 million in Q1 2022, driven by unrealized losses on securities Condensed Consolidated Statements of Comprehensive Loss (in thousands) | | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | **Net Income** | $1,751 | $1,908 | | **Other comprehensive (loss)** | $(7,748) | $(2,170) | | **Comprehensive (Loss)** | $(5,997) | $(262) | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%20Equity) Stockholders' equity decreased to $63.9 million, primarily due to comprehensive loss and cash dividends - Key changes in stockholders' equity for Q1 2022 included net income of **$1.75 million**, other comprehensive loss of **$7.75 million**, cash dividends of **$1.78 million**, and common stock repurchases of **$0.77 million**[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents decreased by $14.2 million in Q1 2022, driven by significant investing activities Condensed Consolidated Statements of Cash Flows (in thousands) | | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $5,021 | $1,402 | | **Net cash provided by (used in) investing activities** | $(31,115) | $2,542 | | **Net cash provided by financing activities** | $11,858 | $41,515 | | **(Decrease) in Cash and Cash Equivalents** | $(14,236) | $45,459 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, securities and loan portfolio changes, fair value measurements, and CECL adoption impact - The company's operations are aggregated into one reportable operating segment, primarily banking, with customers located in specific counties in Ohio and West Virginia[19](index=19&type=chunk) - The allowance for loan losses is based on historical experience, borrower conditions, collateral value, and economic conditions, and consists of allocated (for impaired loans) and general components[35](index=35&type=chunk)[36](index=36&type=chunk) - The company has adopted ASU 2016-13 (CECL), with an effective date for small reporting companies after December 15, 2022. The company anticipates a significant change in processes and a potential increase in the allowance for loan losses upon adoption[45](index=45&type=chunk)[48](index=48&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2022 results, highlighting net income, net interest income growth, increased expenses, and stable credit quality - Diluted earnings per share were **$0.31** on net income of **$1.75 million** for Q1 2022, compared to a record **$0.33** per share on net income of **$1.91 million** in Q1 2021[119](index=119&type=chunk) - Net interest income increased by **$198,000** (**3.7%**) year-over-year, driven by a **$289,000** (**37.3%**) decrease in interest expense[121](index=121&type=chunk) - The company released **$500,000** from its loan loss reserves during the quarter, citing sound credit quality and an improving economy[126](index=126&type=chunk) - The company's growth goal is to increase total assets to **$1.0 billion** or greater in the short to intermediate term[127](index=127&type=chunk) [Critical Accounting Policies](index=33&type=section&id=Critical%20Accounting%20Policies) The allowance for loan losses is identified as the most critical accounting policy due to its subjective nature and reliance on estimates - The allowance for loan losses is identified as the most critical accounting policy due to its reliance on management's estimates and subjective judgment regarding probable losses inherent in the loan portfolio[137](index=137&type=chunk)[139](index=139&type=chunk) [Analysis of Financial Condition](index=33&type=section&id=Analysis%20of%20Financial%20Condition) Gross loans increased to $462.3 million, securities portfolio grew, and core deposits increased by $9.2 million - Gross loans increased by **$7.9 million** to **$462.3 million** at March 31, 2022, from **$454.4 million** at December 31, 2021[141](index=141&type=chunk) - The allowance for loan losses decreased to **$3.2 million** (**0.69%** of total loans) from **$3.7 million** (**0.81%** of total loans) at year-end 2021[147](index=147&type=chunk) - Available-for-sale securities increased by approximately **$13.2 million** from December 31, 2021[148](index=148&type=chunk) - Core deposits (interest and non-interest bearing accounts and savings) increased by approximately **$9.2 million**, or **1.5%**, from December 31, 2021[149](index=149&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) Net interest income increased, a loan loss credit was recorded, and noninterest expense rose significantly due to employee costs - Net interest income increased by **$197,000** (**3.7%**) for Q1 2022 compared to Q1 2021[155](index=155&type=chunk) - The provision for loan losses was a credit to expense of **$500,000** in Q1 2022, as the company released a portion of its COVID-19 related reserves[156](index=156&type=chunk) - Noninterest expense increased by **$661,000** (**14.9%**) year-over-year, with salary and employee benefits increasing by **$700,000** due to the one-time vesting of certain stock awards[158](index=158&type=chunk) [Capital Resources and Liquidity](index=36&type=section&id=Capital%20Resources%20and%20Liquidity) Stockholders' equity decreased due to comprehensive loss, yet the company remains well-capitalized with adequate liquidity - Stockholders' equity decreased by **$7.8 million** during the quarter, primarily due to accumulated other comprehensive loss on the available-for-sale securities portfolio[161](index=161&type=chunk) Capital Ratios | Capital Ratio | Value | | :--- | :--- | | Common equity tier 1 capital ratio | 11.40% | | Tier 1 capital ratio | 12.13% | | Total capital ratio | 16.34% | | Leverage ratio | 9.28% | - Management believes it has adequate capital and profitability to meet current and projected liquidity needs[168](index=168&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, United Bancorp, Inc. is not required to provide these market risk disclosures - Smaller Reporting Companies are not required to provide this disclosure[172](index=172&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of March 31, 2022, with no material changes to internal controls - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of March 31, 2022[173](index=173&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[174](index=174&type=chunk) [PART II - OTHER INFORMATION](index=39&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any material legal proceedings beyond ordinary routine litigation - The company is not involved in any material legal proceedings outside of ordinary routine litigation[177](index=177&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) As a smaller reporting company, United Bancorp, Inc. is not required to provide risk factor information - Smaller reporting companies are not required to provide this information[178](index=178&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company purchased 2,447 common shares in Q1 2022 for its Directors and Officers Deferred Compensation Plan Common Stock Purchases | Period | Total Number of Shares Purchased | Average Price Paid Per Share ($) | | :--- | :--- | :--- | | January 2022 | –– | –– | | February 2022 | 2,447 | $17.47 | | March 2022 | –– | –– | - Share purchases are related to the United Bancorp, Inc. Affiliate Banks Directors and Officers Deferred Compensation Plan, where participants can defer fees to acquire common shares[179](index=179&type=chunk) [Item 3. Defaults Upon Senior Securities](index=39&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the company - Not applicable[180](index=180&type=chunk) [Item 4. Mine Safety Disclosures](index=40&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[183](index=183&type=chunk) [Item 6. Exhibits](index=40&type=section&id=Item%206.%20Exhibits) The report lists various concurrently filed exhibits, including corporate governance documents and officer certifications - A list of filed exhibits is provided, including corporate governance documents (Articles of Incorporation, Code of Regulations), officer certifications (Rule 13a-14(a), Section 1350), and XBRL interactive data files[184](index=184&type=chunk) [SIGNATURES](index=41&type=section&id=SIGNATURES) [Signatures](index=41&type=section&id=Signatures) The quarterly report was signed on May 13, 2022, by the CEO and CFO of the company - The report was signed on May 13, 2022, by the company's President and CEO, Scott A. Everson, and its EVP, CFO and Risk Officer, Randall M. Greenwood[188](index=188&type=chunk)

PART I [Item 1. Business](index=2&type=section&id=Item%201.%20Business) United Bancorp, Inc. operates as a bank holding company through Unified Bank, providing banking services in Ohio and West Virginia, subject to competition and extensive regulation [Business Overview](index=2&type=section&id=Business%20Overview) United Bancorp, Inc. operates Unified Bank, providing commercial and retail banking services through nineteen branches in Ohio and West Virginia - United Bancorp, Inc. is a bank holding company headquartered in Martins Ferry, Ohio, with one wholly-owned subsidiary, Unified Bank[8](index=8&type=chunk) - The company engages in commercial and retail banking in various counties in Ohio and the Northern panhandle of West Virginia, offering services like deposits and loans through its main office and nineteen branches[9](index=9&type=chunk) - Unified Bank has a diversified customer base, with no single customer having a material impact on its earnings[10](index=10&type=chunk) [Competition](index=2&type=section&id=Competition) Unified Bank faces intense competition from 39 banking institutions, ranking sixth in deposit market share in its Ohio markets as of June 30, 2021 - The bank competes with a wide range of financial institutions, including commercial banks, savings and loans, finance companies, and credit unions across its geographic markets in Ohio and West Virginia[11](index=11&type=chunk) - According to FDIC data as of June 30, 2021, Unified Bank ranked **sixth** in total deposit market share among **39 competitors** in its Ohio and West Virginia markets[12](index=12&type=chunk) [Supervision and Regulation](index=2&type=section&id=Supervision%20and%20Regulation) The company and Unified Bank are subject to comprehensive federal and state banking regulations, including capital adequacy and consumer protection, and were well-capitalized as of December 31, 2021 - The company is regulated by the Federal Reserve, FDIC, and the Ohio Division of Financial Institutions (ODFI), with a focus on protecting depositors and the overall financial system[13](index=13&type=chunk)[20](index=20&type=chunk) - Regulators have broad enforcement powers, including issuing cease and desist orders, imposing fines, and removing officers and directors for unsafe practices or violations of law[17](index=17&type=chunk)[18](index=18&type=chunk) - The Dodd-Frank Act introduced significant regulatory changes, including the creation of the Bureau of Consumer Financial Protection (Bureau) with broad authority over consumer financial laws[22](index=22&type=chunk)[23](index=23&type=chunk) - As of December 31, 2021, Unified Bank was **well-capitalized** under the prompt corrective action guidelines of the Federal Deposit Insurance Corporation Improvement Act (FDICIA)[38](index=38&type=chunk) [Employees and Executive Officers](index=15&type=section&id=Employees%20and%20Executive%20Officers) United Bancorp, Inc. has no employees, while Unified Bank employs 144 staff, with key executive officers including Scott Everson, Matthew Branstetter, and Randall Greenwood - The holding company has no employees, while its subsidiary, Unified Bank, has **124 full-time** and **20 part-time employees**[54](index=54&type=chunk) Executive Officers | Name | Age | Position | | :--- | :--- | :--- | | Scott Everson | 54 | President and Chief Executive Officer | | Matthew F. Branstetter | 54 | Senior Vice President – Chief Operating Officer | | Randall M. Greenwood | 58 | Senior Vice President, Chief Financial Officer, Treasurer & Corporate Secretary | [Statistical Disclosures by Bank Holding Companies](index=15&type=section&id=Statistical%20Disclosures%20by%20Bank%20Holding%20Companies) This section details United Bancorp, Inc.'s financial statistics, including average balances, net interest income, loan portfolio, and loan loss experience for 2019-2021 Average Balances and Net Interest Income (2020 vs 2019) | Metric | 2020 (in thousands) | 2019 (in thousands) | | :--- | :--- | :--- | | Total Interest-Earning Assets (Avg. Balance) | $643,465 | $597,260 | | Net Interest Income | $24,172 | $21,906 | | Net Interest Spread | 3.57% | 3.38% | | Net Yield on Interest Earning Assets | 3.76% | 3.67% | Rate/Volume Analysis of Net Interest Income (2020 vs 2019) | (In thousands) | Total Change | Change Due To Volume | Change Due To Rate | | :--- | :--- | :--- | :--- | | Total interest and dividend income | $876 | $2,252 | $(1,376) | | Total interest expense | $(1,390) | $260 | $(1,650) | | **Net interest income** | **$2,266** | **$1,992** | **$274** | Loan Portfolio Maturities (Commercial & Commercial Real Estate) as of Dec 31, 2021 | Maturity | Amount (in thousands) | | :--- | :--- | | One Year or Less | $11,467 | | One Through Five Years | $73,905 | | Five Through Fifteen Years | $162,224 | | After Fifteen Years | $110,073 | | **Total** | **$357,669** | Analysis of Allowance for Loan Losses (2019-2021) | (In thousands) | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Balance at beginning of year | $5,113 | $2,231 | $2,043 | | Net loan charge-offs | $185 | $455 | $720 | | (Credit) Provision for loan losses | $(1,255) | $3,337 | $908 | | **Balance at end of year** | **$3,673** | **$5,113** | **$2,231** | | Ratio of net charge-offs to average loans | 0.04% | 0.10% | 0.17% | [Item 1A. Risk Factors](index=22&type=section&id=Item%201A.%20Risk%20Factors) As a smaller reporting company, United Bancorp, Inc. is not required to provide risk factor disclosures - As a smaller reporting company, United Bancorp, Inc. is not required to provide risk factor disclosures[82](index=82&type=chunk) [Item 1B. Unresolved Staff Comments](index=22&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - The company has no unresolved staff comments[83](index=83&type=chunk) [Item 2. Properties](index=23&type=section&id=Item%202.%20Properties) The company owns its Main Office, an operations center, and nineteen branch offices in Ohio and West Virginia, all unencumbered and in good operating condition - The Company owns its Main Office, an operations center, and all **nineteen** of its branch offices located in Ohio and West Virginia[84](index=84&type=chunk) - Management confirms that all properties are in good operating condition, unencumbered by mortgages, and adequately insured[84](index=84&type=chunk) [Item 3. Legal Proceedings](index=23&type=section&id=Item%203.%20Legal%20Proceedings) The company and its subsidiary are not party to any material legal proceedings beyond ordinary business litigation - There are no material legal proceedings against the Company or its subsidiary outside of ordinary routine litigation[85](index=85&type=chunk) [Item 4. Mine Safety Disclosures](index=23&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures are not applicable to the company - Mine safety disclosures are not applicable to the Company[86](index=86&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities](index=24&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Shareholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section details common stock trading, dividends, and the company's Q4 2021 purchase of 2,923 shares at $15.99 for its Deferred Compensation Plan Issuer Purchases of Equity Securities (Q4 2021) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Oct 2021 | — | $— | | Nov 2021 | — | $— | | Dec 2021 | 2,923 | $15.99 | | **Total** | **2,923** | **$15.99** | - All purchased shares were acquired on the open market to fund the Company's Directors and Officers Deferred Compensation Plan[89](index=89&type=chunk) - The Deferred Compensation Plan allows directors and officers to defer fees and up to **50%** of their annual cash incentive award to acquire common shares, which are not registered under the Securities Act of 1933 in reliance upon the exemption provided by Section 4(a)(2)[90](index=90&type=chunk) [Item 6. [Reserved]](index=24&type=section&id=Item%206.%20%5BReserved%5D) This item is not applicable - Item 6 is not applicable[91](index=91&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The MD&A is incorporated by reference from the 2021 Annual Report, emphasizing the critical accounting policy for allowance for loan losses, which involves significant management estimates - The full MD&A is incorporated by reference from pages 10-22 of the 2021 Annual Report to Shareholders[91](index=91&type=chunk) - A critical accounting policy is the determination of the allowance for loan losses, which involves management estimates and judgment regarding credit risk, economic factors, and borrower situations[92](index=92&type=chunk)[93](index=93&type=chunk) - Management regularly reviews the adequacy of the allowance based on historical loss experience, portfolio characteristics, and current economic conditions to ensure it can absorb probable losses[94](index=94&type=chunk)[95](index=95&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=25&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, United Bancorp, Inc. is not required to provide market risk disclosures - The company is not required to provide disclosures about market risk because it is a smaller reporting company[96](index=96&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=25&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) The company's audited financial statements, notes, and the independent auditor's report are incorporated by reference from the 2021 Annual Report - The audited financial statements and supplementary data are incorporated by reference from the 2021 Annual Report to Shareholders[97](index=97&type=chunk) [Item 9. Changes In and Disagreements with Accountants](index=26&type=section&id=Item%209.%20Changes%20In%20and%20Disagreements%20with%20Accountants) This item is not applicable - There were no changes in or disagreements with accountants[98](index=98&type=chunk) [Item 9A. Controls and Procedures](index=26&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2021, with no material changes in Q4 2021 - Management, including the CEO and CFO, concluded that the Company's disclosure controls and procedures were **effective** as of December 31, 2021[99](index=99&type=chunk) - Based on an evaluation using the COSO framework, management concluded that internal control over financial reporting was **effective** as of December 31, 2021. An attestation report from the registered public accounting firm was not included[100](index=100&type=chunk) - No material changes were made to the company's internal control over financial reporting during the fourth quarter ended December 31, 2021[101](index=101&type=chunk) [Item 9B. Other Information](index=26&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - There is no other information to report[102](index=102&type=chunk) PART III [Item 10. Directors and Executive Officers of the Registrant](index=26&type=section&id=Item%2010.%20Directors%20and%20Executive%20Officers%20of%20the%20Registrant) Information on directors, executive officers, corporate governance, and the Code of Ethics is incorporated by reference from the 2022 Annual Meeting Proxy Statement - Information on directors and corporate governance is incorporated by reference from the Proxy Statement for the 2022 Annual Meeting of Shareholders[103](index=103&type=chunk) - The company has adopted a Code of Ethics applicable to its Principal Executive, Financial, and Accounting Officers, which is available on its website[103](index=103&type=chunk) [Item 11. Executive Compensation](index=26&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation details are incorporated by reference from the 2022 Annual Meeting Proxy Statement - Details on executive compensation are incorporated by reference from the 2022 Proxy Statement[104](index=104&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stock Holder Matters](index=28&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stock%20Holder%20Matters) Security ownership information is incorporated by reference from the 2022 Proxy Statement, detailing 317,500 securities to be issued and 352,500 available under equity plans as of December 31, 2021 - Security ownership information is incorporated by reference from the 'Ownership of Voting Shares' section of the 2022 Proxy Statement[105](index=105&type=chunk) Equity Compensation Plan Information (as of Dec 31, 2021) | Plan Category | Securities to be issued upon exercise | Securities remaining available for future issuance | | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 317,500 | 352,500 | | Equity compensation plans not approved by security holders | — | — | | **Total** | **317,500** | **352,500** | [Item 13. Certain Relationships and Related Transactions](index=28&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions) Information on certain relationships and related transactions is incorporated by reference from the 2022 Annual Meeting Proxy Statement - Information on related party transactions is incorporated by reference from the 2022 Proxy Statement[108](index=108&type=chunk) [Item 14. Principal Accountant Fees and Services](index=28&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Details on principal accountant fees and services are incorporated by reference from the 2022 Annual Meeting Proxy Statement - Details on principal accountant fees and services are incorporated by reference from the 2022 Proxy Statement[108](index=108&type=chunk) PART IV [Item 15. Exhibits and Financial Statement/Schedules](index=29&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%2FSchedules) This section lists financial statements and exhibits filed with the 10-K, incorporating consolidated financial statements and the independent auditor's report from the 2021 Annual Report - The Consolidated Financial Statements for the years ended December 31, 2021 and 2020, and the Report of Independent Registered Public Accounting Firm are incorporated by reference from the 2021 Annual Report[109](index=109&type=chunk) - A list of exhibits filed with the report is provided, including Articles of Incorporation, Code of Regulations, descriptions of securities, various agreements, stock incentive plans, the 2021 Annual Report, and CEO/CFO certifications[110](index=110&type=chunk)

Financial Performance - Net income for the three months ended September 30, 2021, was $2,902 thousand, a 40.9% increase compared to $2,059 thousand for the same period in 2020[7] - Earnings per common share for the nine months ended September 30, 2021, was $1.21, compared to $0.93 for the same period in 2020, indicating a growth of 30.1%[7] - Net income for the nine months ended September 30, 2021, was $6,995,000, an increase from $5,313,000 for the same period in 2020, representing a growth of 31.6%[15] - Comprehensive income for the three months ended September 30, 2021, was $1,467 thousand, compared to $1,338 thousand for the same period in 2020, reflecting an increase of 9.6%[9] - The total comprehensive income for the nine months ended September 30, 2021, was $6,910,000, compared to $9,613,000 in 2020, reflecting a decrease in overall comprehensive income[12] Asset and Deposit Growth - Total assets increased to $730,382 thousand as of September 30, 2021, up from $693,402 thousand at December 31, 2020, representing a growth of 5.7%[5] - Total deposits increased to $608,508 thousand as of September 30, 2021, up from $579,535 thousand at December 31, 2020, reflecting a growth of 5.0%[5] - The net change in deposits for the nine months ended September 30, 2021, was $28,973,000, compared to $28,787,000 in 2020, indicating a stable growth in deposits[18] Loan and Interest Income - Net interest income after provision for loan losses rose to $6,005 thousand for the three months ended September 30, 2021, compared to $4,411 thousand in the same period last year, marking a 36.1% increase[7] - The provision for loan losses was a credit of $400 thousand for the three months ended September 30, 2021, compared to a provision of $1,333 thousand in the same period last year, indicating a significant improvement in loan loss provisions[7] - The company reported a gain on the sale of loans held for sale amounting to $9,674,000 for the nine months ended September 30, 2021, compared to $4,289,000 in 2020, showing a significant increase of 126.5%[15] - The total balance of gross loans amounted to $462.1 million, an increase from $443.5 million as of December 31, 2020, representing a growth of approximately 4%[65] Noninterest Income and Expenses - Noninterest income for the three months ended September 30, 2021, was $2,287 thousand, slightly down from $2,340 thousand in the same period last year, a decrease of 2.3%[7] - Total noninterest expense increased to $4,942 thousand for the three months ended September 30, 2021, compared to $4,492 thousand in the same period last year, an increase of 10.0%[7] - Noninterest income for the nine months ended September 30, 2021, was $4,355 thousand, down from $5,540 thousand in 2020, indicating a decrease of 21.5%[7] - Noninterest expense increased by $460,000 or 3.4% year-over-year, primarily due to personnel-related expenses[164] Dividends and Shareholder Returns - The company declared dividends per common share of $0.1475 for the three months ended September 30, 2021, compared to $0.1425 for the same period in 2020, representing a growth of 3.5%[7] - Cash dividends paid on common stock increased to $3,206,000 for the nine months ended September 30, 2021, compared to $2,521,000 in 2020, reflecting a rise of 27.2%[18] - Cash dividends declared were $0.5350 per share for the nine months ended September 30, 2021, totaling $3,206,000, compared to $2,521,000 for $0.4275 per share in 2020[15] Capital and Equity - Stockholders' equity totaled $70.1 million at September 30, 2021, an increase of $1.7 million from $68.3 million at December 31, 2020[173] - The Company had a common equity tier 1 capital ratio of 13.57% as of September 30, 2021, indicating strong capital adequacy[179] Loan Loss Provisions and Risk Management - The allowance for loan losses decreased to $4.1 million as of September 30, 2021, down from $5.1 million at the end of 2020, indicating a reduction of about 20%[65] - The company continues to monitor the impact of COVID-19 on its loan portfolio and may need to make additional loan loss provisions as warranted[187] - The Company had credit reserve releases of $855,000 during the nine months ended September 30, 2021, reflecting an improving economy[161] Economic Conditions and Future Outlook - The company is focused on becoming a $1.0 billion community banking organization to achieve greater operating efficiencies and profitability[136] - The company anticipates significant changes in processes to calculate the allowance for loan losses due to the adoption of ASU 2016-13, which may lead to an increase in the allowance at the adoption date[56]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT For the transition period from to Commission File Number: 0-16540 UNITED BANCORP, INC. (Exact name of registrant as specified in its charter) Ohio 34-1405357 (State or other jurisdicti ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT For the transition period from ____________ to ____________ Commission File Number: 0-16540 UNITED BANCORP, INC. (Exact name of registrant as specified in its charter) Ohio 34-1405357 (State or other j ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from N/A to N/A Commission File Number 0-16540 UNITED BANCORP, INC. (Exact name of registrant as specified in its Charter.) Ohio 34-1405357 (State or other jurisdiction of incorpora ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT For the transition period from ____________ to _______________ Commission File Number: 0-16540 UNITED BANCORP, INC. (Exact name of registrant as specified in its charter) Ohio 34-1405357 (State or ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT For the transition period from ____________ to _______________ Commission File Number: 0-16540 UNITED BANCORP, INC. (Exact name of registrant as specified in its charter) Ohio 34-1405357 (State or other ...

FORM 10-Q [Filing Information](index=1&type=section&id=Filing%20Information) This document is a Form 10-Q quarterly report for UNITED BANCORP, INC for the period ended March 31, 2020 Form 10-Q Filing Details | Detail | Value | | :----- | :---- | | Filing Type | Quarterly Report (Form 10-Q) | | Period Ended | March 31, 2020 | | Registrant | UNITED BANCORP, INC | | Commission File Number | 0-16540 | | State of Incorporation | Ohio | | IRS Employer Identification No | 34-1405357 | | Principal Executive Offices | 201 South Fourth Street, Martins Ferry, Ohio 43935-0010 | | Telephone Number | (740) 633-0445 | | Trading Symbol | UBCP | | Exchange | NASDQ Capital Market | | Filer Status | Non-accelerated filer, Smaller Reporting Company | | Common Stock Outstanding (May 15, 2020) | 5,729,113 shares | PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the period ended March 31, 2020 - The financial statements are unaudited and reflect all necessary adjustments for fair presentation[22](index=22&type=chunk) Condensed Consolidated Balance Sheets (March 31, 2020 vs. December 31, 2019) | Item (In thousands) | March 31, 2020 | December 31, 2019 | Change (vs. Dec 2019) | | :------------------ | :------------- | :---------------- | :-------------------- | | **Assets** | | | | | Cash and cash equivalents | $28,042 | $14,985 | +$13,057 | | Available-for-sale securities | $197,401 | $188,785 | +$8,616 | | Loans, net | $445,629 | $439,317 | +$6,312 | | Total assets | $715,281 | $685,706 | +$29,575 | | **Liabilities** | | | | | Total deposits | $555,518 | $548,069 | +$7,449 | | Securities sold under repurchase agreements | $14,587 | $6,915 | +$7,672 | | Federal Home Loan Bank advances | $51,000 | $39,800 | +$11,200 | | Total liabilities | $652,333 | $625,784 | +$26,549 | | **Stockholders' Equity** | | | | | Total stockholders' equity | $62,948 | $59,922 | +$3,026 | | Total liabilities and stockholders' equity | $715,281 | $685,706 | +$29,575 | Condensed Consolidated Statements of Income (Three Months Ended March 31, 2020 vs. 2019) | Item (In thousands, except per share data) | 2020 | 2019 | Change (YoY) | | :--------------------------------------- | :--- | :--- | :----------- | | Total interest and dividend income | $7,319 | $6,315 | +$1,004 | | Total interest expense | $1,685 | $1,207 | +$478 | | Net Interest Income | $5,634 | $5,108 | +$526 | | Provision for Loan Losses | $563 | $90 | +$473 | | Net Interest Income After Provision for Loan Losses | $5,071 | $5,018 | +$53 | | Total noninterest income | $1,044 | $945 | +$99 | | Total noninterest expense | $4,410 | $4,162 | +$248 | | Income Before Federal Income Taxes | $1,705 | $1,801 | -$96 | | Provision for Federal Income Taxes | $126 | $187 | -$61 | | Net Income | $1,579 | $1,614 | -$35 | | Basic Earnings Per Share | $0.28 | $0.28 | $0.00 | | Diluted Earnings Per Share | $0.28 | $0.28 | $0.00 | | Dividends Per Share | $0.1425 | $0.13 | +$0.0125 | Condensed Consolidated Statements of Cash Flows (Three Months Ended March 31, 2020 vs. 2019) | Activity (In thousands) | 2020 | 2019 | Change (YoY) | | :---------------------- | :--- | :--- | :----------- | | Net cash provided by operating activities | $1,951 | $843 | +$1,108 | | Net cash used in investing activities | $(13,849) | $(11,190) | -$2,659 | | Net cash provided by financing activities | $24,955 | $17,786 | +$7,169 | | Increase in Cash and Cash Equivalents | $13,057 | $7,439 | +$5,618 | | Cash and Cash Equivalents, End of Period | $28,042 | $32,692 | -$4,650 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on accounting policies, securities, loans, and other financial items [Note 1: Summary of Significant Accounting Policies](index=10&type=section&id=Note%201%3A%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines key accounting principles, including revenue recognition, loan loss allowance, and new standards - The Company's operations are primarily banking services for customers in specific Ohio counties and West Virginia[24](index=24&type=chunk)[26](index=26&type=chunk) - Revenue recognition for most transactions is not subject to ASC 606, while service charges are recognized upon completion[28](index=28&type=chunk)[29](index=29&type=chunk) - The **allowance for loan losses is a critical accounting policy** involving subjective estimates based on multiple factors[41](index=41&type=chunk)[42](index=42&type=chunk)[45](index=45&type=chunk) - The Company adopted ASU 2016-02 "Leases (Topic 842)" on January 1, 2019, with an **immaterial impact**[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) - The Company is evaluating ASU 2016-13 (CECL), with adoption expected to **significantly change ALL calculation processes**[60](index=60&type=chunk)[64](index=64&type=chunk) Basic and Diluted Earnings Per Share Calculation (Three Months Ended March 31) | Item (In thousands, except per share data) | 2020 | 2019 | | :--------------------------------------- | :--- | :--- | | Net income | $1,579 | $1,614 | | Less allocated earnings on non-vested restricted stock | (32) | (27) | | Less allocated dividends on non-vested restricted stock | (35) | (23) | | Net income allocated to common stockholders | $1,512 | $1,564 | | Weighted Average Shares | 5,463,739 | 5,515,418 | | Basic and diluted earnings per share | $0.28 | $0.28 | [Note 2: Securities](index=17&type=section&id=Note%202%3A%20Securities) This note details the company's available-for-sale securities portfolio, including fair values and unrealized gains - The total fair value of temporarily impaired investments **decreased significantly from $50.3 million to $8.0 million**[70](index=70&type=chunk)[71](index=71&type=chunk)[73](index=73&type=chunk) - During Q1 2020, the Company sold **$8.0 million of US Government Agency bonds**, realizing a gain of approximately $69,000[75](index=75&type=chunk) Available-for-sale Securities (March 31, 2020 vs. December 31, 2019) | Category (In thousands) | Amortized Cost (Mar 31, 2020) | Fair Value (Mar 31, 2020) | Amortized Cost (Dec 31, 2019) | Fair Value (Dec 31, 2019) | | :---------------------- | :---------------------------- | :------------------------ | :---------------------------- | :------------------------ | | U.S. government agencies | $32,000 | $32,203 | $40,000 | $39,528 | | Subordinated notes | $4,500 | $4,530 | $4,500 | $4,532 | | State and municipal obligations | $149,144 | $160,668 | $135,897 | $144,725 | | Total debt securities | $185,644 | $197,401 | $180,397 | $188,785 | Gross Unrealized Gains and Losses on Available-for-Sale Securities (March 31, 2020 vs. December 31, 2019) | Item (In thousands) | Gross Unrealized Gains (Mar 31, 2020) | Gross Unrealized Losses (Mar 31, 2020) | Gross Unrealized Gains (Dec 31, 2019) | Gross Unrealized Losses (Dec 31, 2019) | | :------------------ | :------------------------------------ | :------------------------------------- | :------------------------------------ | :------------------------------------- | | Total debt securities | $11,858 | $(101) | $9,029 | $(641) | [Note 3: Loans and Allowance for Loan Losses](index=20&type=section&id=Note%203%3A%20Loans%20and%20Allowance%20for%20Loan%20Losses) This note details the loan portfolio composition, risk characteristics, and allowance for loan losses activity - Commercial loans are primarily cash flow-based, while real estate and consumer loans depend on property values and personal income[77](index=77&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) - The Company uses credit grades (pass, special mention, substandard, doubtful) to monitor credit quality[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) - In Q1 2020, two commercial loans totaling **$83,000 were restructured as troubled debt restructurings (TDRs)**[104](index=104&type=chunk)[105](index=105&type=chunk)[107](index=107&type=chunk) Loan Portfolio Composition (March 31, 2020 vs. December 31, 2019) | Loan Category (In thousands) | March 31, 2020 | December 31, 2019 | Change (vs. Dec 2019) | | :--------------------------- | :------------- | :---------------- | :-------------------- | | Commercial loans | $106,476 | $99,995 | +$6,481 | | Commercial real estate | $252,351 | $254,651 | -$2,300 | | Residential real estate | $80,151 | $77,205 | +$2,946 | | Installment loans | $9,359 | $9,697 | -$338 | | Total gross loans | $448,337 | $441,548 | +$6,789 | | Less allowance for loan losses | $(2,708) | $(2,231) | -$(477) | | Total loans, net | $445,629 | $439,317 | +$6,312 | Allowance for Loan Losses Activity (Three Months Ended March 31, 2020) | Item (In thousands) | Commercial | Commercial Real Estate | Residential | Installment | Total | | :------------------ | :--------- | :--------------------- | :---------- | :---------- | :---- | | Balance, beginning of period | $568 | $792 | $572 | $299 | $2,231 | | Provision charged to expense | $529 | $19 | $1 | $14 | $563 | | Losses charged off | $(42) | $(30) | $(6) | $(31) | $(109) | | Recoveries | $0 | $0 | $0 | $23 | $23 | | Balance, end of period | $1,055 | $781 | $567 | $305 | $2,708 | Loan Portfolio Quality Indicators (March 31, 2020 vs. December 31, 2019) | Loan Class (In thousands) | March 31, 2020 | December 31, 2019 | | :------------------------ | :------------- | :---------------- | | Pass Grade | $442,786 | $435,795 | | Special Mention | $3,750 | $4,016 | | Substandard | $1,801 | $1,737 | | Doubtful | $0 | $0 | | Total | $448,337 | $441,548 | Loan Portfolio Aging Analysis (March 31, 2020 vs. December 31, 2019) | Status (In thousands) | March 31, 2020 | December 31, 2019 | | :-------------------- | :------------- | :---------------- | | 30-59 Days Past Due and Accruing | $507 | $635 | | 60-89 Days Past Due and Accruing | $258 | $347 | | Greater Than 90 Days and Accruing | $0 | $226 | | Non Accrual | $1,850 | $1,452 | | Total Past Due and Non Accrual | $2,615 | $2,660 | | Current | $445,722 | $438,888 | | Total Loans Receivable | $448,337 | $441,548 | Impaired Loans (As of March 31, 2020) | Loan Category (In thousands) | Recorded Balance | Unpaid Principal Balance | Specific Allowance | Average Investment in Impaired Loans | Interest Income Recognized | | :--------------------------- | :--------------- | :----------------------- | :----------------- | :----------------------------------- | :------------------------- | | Commercial | $138 | $138 | $16 | $143 | $8 | | Commercial real estate | $758 | $758 | $0 | $761 | $0 | | Residential | $505 | $512 | $0 | $590 | $2 | [Note 4: Benefit Plans](index=28&type=section&id=Note%204%3A%20Benefit%20Plans) This note provides a summary of pension expense components for the first quarter of 2020 and 2019 Pension Expense (Three Months Ended March 31) | Item (In thousands) | 2020 | 2019 | | :------------------ | :--- | :--- | | Service cost | $98 | $75 | | Interest cost | $59 | $55 | | Expected return on assets | $(117) | $(102) | | Amortization of prior service cost and net loss | $13 | $1 | | Total Pension expense | $53 | $29 | [Note 5: Off-balance-sheet Activities](index=28&type=section&id=Note%205%3A%20Off-balance-sheet%20Activities) This note summarizes financial instruments with off-balance-sheet risk, such as loan commitments and credit lines - The Company issues financial instruments like loan commitments and credit lines that carry off-balance-sheet credit risk[109](index=109&type=chunk) Off-Balance-Sheet Financial Instruments (In thousands) | Item | March 31, 2020 | December 31, 2019 | | :-------------------------- | :------------- | :---------------- | | Commercial loans unused lines of credit | $48,485 | $40,538 | | Commitment to originate loans | $46,846 | $38,722 | | Consumer open end lines of credit | $38,295 | $38,575 | | Standby lines of credit | $46 | $46 | [Note 6: Accumulated Other Comprehensive Income](index=29&type=section&id=Note%206%3A%20Accumulated%20Other%20Comprehensive%20Income) This note details the components of accumulated other comprehensive income included in stockholders' equity Components of Accumulated Other Comprehensive Income (In thousands) | Item | March 31, 2020 | December 31, 2019 | | :---------------------------------------------------- | :------------- | :---------------- | | Net unrealized gain (loss) on securities available-for-sale | $11,757 | $8,389 | | Net unrealized loss for unfunded status of defined benefit plan liability | $(1,381) | $(1,381) | | Subtotal | $10,376 | $7,008 | | Less: Tax effect | $2,179 | $1,472 | | Net-of-tax amount | $8,197 | $5,536 | [Note 7: Fair Value Measurements](index=29&type=section&id=Note%207%3A%20Fair%20Value%20Measurements) This note explains the Company's fair value measurement methodologies using a three-level hierarchy - Fair value is measured using a three-level hierarchy based on the observability of inputs (Level 1, 2, and 3)[113](index=113&type=chunk)[114](index=114&type=chunk) - Impaired loans and foreclosed assets are measured at fair value on a nonrecurring basis and classified as **Level 3**[120](index=120&type=chunk)[121](index=121&type=chunk)[123](index=123&type=chunk) Fair Value Measurements of Available-for-Sale Securities (Recurring Basis, In thousands) | Item | Fair Value (Mar 31, 2020) | Level 1 | Level 2 | Level 3 | | :------------------------ | :------------------------ | :------ | :------ | :------ | | U.S. government agencies | $32,203 | $0 | $32,203 | $0 | | Subordinated Notes | $4,530 | $0 | $4,530 | $0 | | State and municipal obligations | $160,668 | $0 | $160,668 | $0 | | **Total (Mar 31, 2020)** | **$197,401** | **$0** | **$197,401** | **$0** | | Fair Value (Dec 31, 2019) | $188,785 | $0 | $188,785 | $0 | Fair Value Measurements of Nonrecurring Assets (In thousands) | Item | Fair Value (Mar 31, 2020) | Level 1 | Level 2 | Level 3 | | :-------------------------- | :------------------------ | :------ | :------ | :------ | | Collateral dependent impaired loans | $28 | $0 | $0 | $28 | | Foreclosed assets held for sale | $0 | $0 | $0 | $0 | Estimated Fair Values of Financial Instruments (March 31, 2020, In thousands) | Item | Carrying Amount | Fair Value (Level 1) | Fair Value (Level 2) | Fair Value (Level 3) | | :-------------------------- | :-------------- | :------------------- | :------------------- | :------------------- | | **Financial assets** | | | | | | Cash and cash equivalents | $28,042 | $28,042 | $0 | $0 | | Loans, net of allowance | $445,629 | $0 | $0 | $444,229 | | Federal Home Loan Bank stock | $4,452 | $0 | $4,452 | $0 | | Accrued interest receivable | $2,563 | $0 | $2,563 | $0 | | **Financial liabilities** | | | | | | Deposits | $555,518 | $0 | $554,096 | $0 | | Short term borrowings | $14,587 | $0 | $14,587 | $0 | | Federal Home Loan Bank Advances | $51,000 | $0 | $51,033 | $0 | | Subordinated debentures | $23,558 | $0 | $25,513 | $0 | | Interest payable | $704 | $0 | $704 | $0 | [Note 8: Repurchase Agreements](index=35&type=section&id=Note%208%3A%20Repurchase%20Agreements) This note describes the Company's repurchase agreements, which are secured borrowings collateralized by securities - Repurchase agreements are secured borrowings with customers, collateralized by the Company's investment securities[143](index=143&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk) Repurchase Agreements (In thousands) | Item | March 31, 2020 | December 31, 2019 | | :-------------------------- | :------------- | :---------------- | | U.S. government agencies (Overnight and Continuous) | $14,587 | $6,915 | | Total Repurchase Agreements | $14,587 | $6,915 | | Carrying value of collateral | $17,400 | $9,400 | [Note 9: Core Deposits and Other Intangible Assets](index=36&type=section&id=Note%209%3A%20Core%20Deposits%20and%20Other%20Intangible%20Assets) This note provides information on goodwill and core deposit intangible assets, including amortization and impairment tests - Despite COVID-19 uncertainty, the Company concluded that **no goodwill impairment was identified** as of March 31, 2020[149](index=149&type=chunk) Goodwill and Core Deposit Intangibles (In thousands) | Item | March 31, 2020 | December 31, 2019 | | :-------------------------- | :------------- | :---------------- | | Goodwill (Balance end of period) | $682 | $682 | | Core deposit intangibles (Net) | $822 | $860 | Estimated Future Amortization Expense for Intangible Assets (In thousands) | Year | Amortization Expense | | :--- | :------------------- | | 2020 | $136 | | 2021 | $181 | | 2022 | $181 | | 2023 | $181 | | 2024 | $136 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition, results of operations, and the impacts of the COVID-19 pandemic [Introduction and Overview](index=38&type=section&id=Introduction) The Company maintained stable EPS despite a higher loan loss provision, supported by strong asset growth and net interest income - The Company has adapted its operating structure due to COVID-19, with remote work and services via drive-ups and digital channels[157](index=157&type=chunk) Key Financial Highlights (Three Months Ended March 31, 2020 vs. 2019) | Metric | 2020 | 2019 | Change (YoY) | | :-------------------------- | :--- | :--- | :----------- | | Diluted Earnings Per Share | $0.28 | $0.28 | $0.00 | | Net Income (in thousands) | $1,579 | $1,614 | -$35 | | Loan Loss Provision (in thousands) | $563 | $90 | +$473 | | Gross Loans (YoY increase) | +$34.4 million | N/A | +8.3% | | Securities & Other Restricted Stock (YoY increase) | +$57.5 million | N/A | +39.8% | | Total Interest Income (YoY increase) | +$1.0 million | N/A | +15.9% | | Net Interest Income (YoY increase) | +$525 thousand | N/A | +10.3% | | Net Interest Margin (Mar 31, 2020) | 3.76% | N/A | Relatively stable | | Nonaccrual loans & 30+ days past due (Mar 31, 2020) | $2.6 million | $3.5 million | -$0.9 million | | Nonaccrual loans & 30+ days past due (% of total loans) | 0.58% | 0.85% | -0.27% | | Net loans charged off (annualized) | $63 thousand | N/A | 0.06% | | Allowance for Loan Losses (% of total loans) | 0.60% | 0.50% | +0.10% | | ALL to Nonperforming Loans | 146.4% | 132.2% | +14.2% | | Shareholders' Equity (YoY increase) | +$9.1 million | N/A | +17.0% | | Book Value Per Share (YoY increase) | $10.75 | N/A | +17.0% | [Forward-Looking Statements and Critical Accounting Policies](index=39&type=section&id=Forward-Looking%20Statements) This section outlines risks associated with forward-looking statements and identifies the allowance for loan losses as critical - Forward-looking statements are subject to risks including economic conditions, regulatory changes, and interest rate fluctuations[158](index=158&type=chunk)[161](index=161&type=chunk) - The **allowance for loan losses is a critical accounting policy** involving complex and subjective management decisions[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk) [Analysis of Financial Condition](index=41&type=section&id=Analysis%20of%20Financial%20Condition) This section analyzes changes in earning assets and funding sources, noting growth in loans, securities, and core deposits - Securities available for sale **increased by approximately $8.6 million** from December 31, 2019[174](index=174&type=chunk) - Repurchase agreements **increased by approximately $7.7 million** from December 31, 2019[178](index=178&type=chunk) Gross Loans by Category (March 31, 2020 vs. December 31, 2019) | Loan Category (In millions) | March 31, 2020 | December 31, 2019 | Change | | :-------------------------- | :------------- | :---------------- | :----- | | Gross Loans | $448.3 | $441.5 | +$6.8 | | Commercial & Commercial Real Estate | 80.0% of total | 80.3% of total | +$4.1 | | Residential Real Estate | 17.8% of total | 17.6% of total | +$2.9 | | Installment Loans | 2.2% of total | 2.1% of total | -$0.337 | Allowance for Loan Losses (March 31, 2020 vs. December 31, 2019) | Metric | March 31, 2020 | December 31, 2019 | | :-------------------------- | :------------- | :---------------- | | Allowance for loan losses | $2.7 million | $2.2 million | | % of total loans | 0.60% | 0.51% | | Net loan charge-offs (Q1 2020) | $63,000 | N/A | Deposit Growth (March 31, 2020 vs. December 31, 2019) | Deposit Category (In millions) | Change | | :----------------------------- | :----- | | Total core deposits | +$9.2 (1.7%) | | Savings accounts | +$2.8 (2.6%) | | Interest-bearing & non-interest bearing demand deposits | +$11.1 | | Certificates of deposit under $250,000 | +$4.7 | | Certificates of deposit greater than $250,000 | -$1.7 (12.2%) | [Results of Operations for the Three Months Ended March 31, 2020 and 2019](index=42&type=section&id=Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202020%20and%202019) This section details financial performance for Q1 2020, highlighting changes in income, expenses, and provisions - The increase in noninterest expense was mainly due to personnel-related expenses and enhanced marketing functions[184](index=184&type=chunk) Key Income Statement Changes (Three Months Ended March 31, 2020 vs. 2019) | Item | 2020 (in thousands) | 2019 (in thousands) | Change (YoY) | | :-------------------------- | :------------------ | :------------------ | :----------- | | Diluted Earnings Per Share | $0.28 | $0.28 | $0.00 | | Net Interest Income | $5,634 | $5,108 | +$526 (10.3%) | | Provision for Loan Losses | $563 | $90 | +$473 | | Noninterest Income | $1,044 | $945 | +$99 | | Noninterest Expense | $4,410 | $4,162 | +$248 (6.0%) | | Provision for Federal Income Taxes | $126 | $187 | -$61 | | Effective Tax Rate | 7.4% | 10.4% | -3.0% | [COVID-19: Update on Company Action and Ongoing Risks](index=43&type=section&id=COVID-19%3A%20Update%20on%20Company%20Action%20and%20Ongoing%20Risks) This section details the Company's response to the COVID-19 pandemic, including operational changes and customer assistance - In response to COVID-19, the Bank **temporarily suspended branch lobby hours**, encouraging use of drive-thru and digital services[188](index=188&type=chunk) - The Company received customer requests for payment deferrals covering **630 loans totaling approximately $167 million**[189](index=189&type=chunk) - Employees are encouraged to work remotely, and the Bank is following the Families First Coronavirus Response Act (FFCRA)[191](index=191&type=chunk) - Management believes Q1 2020 performance was not significantly impacted by COVID-19 but acknowledges **significant future uncertainty**[192](index=192&type=chunk) - Potential ongoing risks include declining demand, increased loan delinquencies, collateral value depreciation, and higher loan loss provisions[194](index=194&type=chunk)[196](index=196&type=chunk) [Capital Resources](index=46&type=section&id=Capital%20Resources) This section discusses the Company's capital adequacy, internal capital growth, and compliance with regulatory requirements - The Company is **well-capitalized** according to Federal regulatory capital requirements under Basel III rules[200](index=200&type=chunk)[201](index=201&type=chunk)[202](index=202&type=chunk)[203](index=203&type=chunk) Stockholders' Equity and Capital Ratios (March 31, 2020 vs. December 31, 2019) | Metric | March 31, 2020 | December 31, 2019 | Change | | :-------------------------- | :------------- | :---------------- | :----- | | Stockholders' equity | $62.9 million | $59.9 million | +$3.0 million | | Total average stockholders' equity to total assets | 8.79% | 8.74% | +0.05% | | Common equity tier 1 capital ratio | 11.48% | N/A | N/A | | Tier 1 capital ratio | 12.27% | N/A | N/A | | Total capital ratio | 16.81% | N/A | N/A | | Leverage ratio | 8.93% | N/A | N/A | [Liquidity and Inflation](index=47&type=section&id=Liquidity) This section addresses liquidity management and the impact of inflation on the Company's financial condition - The Company manages liquidity to meet commitments using sources like net income, loan payments, and maturing securities[205](index=205&type=chunk) - **Interest rate movements have a greater impact** on the Company's financial condition than inflation rates[206](index=206&type=chunk)[207](index=207&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market risk disclosures remain unchanged from the Annual Report on Form 10-K for the year ended December 31, 2019 - **No significant changes** in market risk disclosures from the previous Form 10-K[208](index=208&type=chunk) [Item 4. Controls and Procedures](index=48&type=section&id=Item%204%20Controls%20and%20Procedures) Management confirms the effectiveness of disclosure controls and procedures as of the quarter's end - The CEO and CFO concluded that the Company's disclosure controls and procedures were **effective as of March 31, 2020**[210](index=210&type=chunk) - **No material changes** in internal control over financial reporting occurred during the quarter ended March 31, 2020[211](index=211&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=49&type=section&id=Item%201%20Legal%20Proceedings) The Company is not involved in any legal proceedings outside of ordinary routine litigation incidental to its business - **No material legal proceedings** beyond routine business litigation[213](index=213&type=chunk) [Item 1A. Risk Factors](index=49&type=section&id=Item%201A%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the Company's Form 10-K - **No material changes** to risk factors from the previous Form 10-K[214](index=214&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports on issuer purchases of equity securities under a deferred compensation plan - Shares were purchased under the unfunded Deferred Compensation Plan for directors and officers, relying on Section 4(2) exemption[215](index=215&type=chunk) Issuer Purchases of Equity Securities (Common Stock) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :---------------- | :----------------------------- | :--------------------------- | | 1/1/20 to 1/31/2020 | -- | -- | | 2/1/2020 to 2/28/2020 | 3,200 | $14.65 | | 3/1/2020 to 3/31/2020 | -- | -- | [Item 3. Defaults Upon Senior Securities](index=49&type=section&id=Item%203%20Defaults%20Upon%20Senior%20Securities) This section confirms there are no defaults upon senior securities - Not applicable[216](index=216&type=chunk) [Item 4. Other Information](index=50&type=section&id=Item%204%20Other%20Information) This section confirms there are no mine safety disclosures to report - Not applicable (Mine Safety Disclosures)[218](index=218&type=chunk) [Item 5. Exhibits](index=50&type=section&id=Item%205%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance and certification documents - The exhibits include corporate governance documents, description of common stock, CEO and CFO certifications, and XBRL financial data[219](index=219&type=chunk) SIGNATURES [Signatures](index=51&type=section&id=Signatures) The report is duly signed by the CEO and CFO on behalf of the company as of May 15, 2020 - The report was signed by Scott A Everson (President and CEO) and Randall M Greenwood (SVP, CFO, and Treasurer) on May 15, 2020[221](index=221&type=chunk)[223](index=223&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from N/A to N/A Commission File Number 0-16540 UNITED BANCORP, INC. (Exact name of registrant as specified in its Charter.) Ohio 34-1405357 Registrant's telephone number, including ...