United Bancorp(US:UBCP)2024-08-08 20:53Financial Performance - For Q2 2024, United Bancorp, Inc. reported diluted earnings per share of $0.30 and net income of $1,739,000, representing decreases of $540,000 and $0.10 year-over-year[2]. - For the first six months of 2024, diluted earnings per share were $0.64 and net income was $3,732,000, down $436,000 and $0.09 compared to the same period in 2023[2]. - Net income decreased by 23.70% to $1,739,967 from $2,280,424 in the same period last year[7]. - Earnings before income taxes fell by 34.11% to $1,613,140 compared to $2,448,140 previously[7]. - Net income decreased by 10.44% to $3,732,879 from $4,168,035 year-over-year[8]. - Earnings per common share (diluted) decreased by 12.33% to $0.64 from $0.73[8]. Interest Income and Expenses - Total interest income increased by $2.0 million, or 11.5%, year-over-year, while total interest expense rose by $2.5 million, or 52.0%, leading to a net interest income decline of $451,000, or 3.5%[3]. - Interest income on loans increased by 13.78% to $6,774,227 compared to $5,954,031 in the previous year[7]. - Total interest income rose by 6.37% to $9,878,202 from $9,286,269 year-over-year[7]. - Total interest income increased by 11.46% to $19,499,024 compared to $17,494,370 in the previous year[8]. Asset and Loan Management - As of June 30, 2024, total assets decreased by $8.5 million, or 1.0%, to $821.8 million, while gross loans increased by $21.6 million, or 4.7%, to $484.5 million[3]. - Total assets decreased by 1.02% to $821,814,882 from $830,283,563[8]. - Gross loans increased by 4.68% to $484,514,415 compared to $462,870,965 in the previous year[8]. - Non-accrual loans decreased by 9.02% to $362,051 from $397,963[8]. Credit Losses - The provision for credit loss expense was $104,000 for the quarter, marking an increase of $250,000 year-over-year, impacting diluted earnings per share by approximately $0.04[3]. - The provision for credit losses on loans increased significantly by 260.34% to $234,499 from a benefit of $(146,250) in the previous year[7]. - Net charge-offs increased by 273.51% to $163,429 compared to $43,755 in the previous year[8]. - The total allowance for credit losses to total loans was 0.82% as of June 30, 2024, indicating strong coverage[3]. - Total allowance for loan losses to nonaccrual loans improved to 1101.85%, an increase of 26.00%[9]. Dividends and Shareholder Returns - United Bancorp, Inc. paid a regular cash dividend of $0.3475 and a special cash dividend of $0.15, totaling $0.4975, which is a 6.1% increase year-over-year[5]. - Cash dividends paid rose by 6.06% to $0.1750 from $0.1650[7]. - Cash dividends paid increased by 4.19% to $0.4975 from $0.4775[8]. - The dividend payout ratio increased to 54.30%, up 9.43% from 44.86%[9]. Equity and Market Performance - Stockholders' equity grew by 3.75% to $60,597,763, with tangible stockholders' equity increasing by 4.05% to $59,717,970[9]. - The market value at the last close was $12.55, up 4.85% from $11.97[9]. - Return on average equity (ROE) decreased to 12.34%, down 1.89% from 14.23%[9]. - Accumulated other comprehensive loss (AOCI) impacted stockholders' equity, increasing by 15.40% to $(11,219,599)[9]. Strategic Developments - The company is developing Unified Mortgage to enhance mortgage origination and increase fee income, alongside expanding its Treasury Management function[4]. - A new banking center is under construction in Wheeling, West Virginia, expected to open by mid-2025, aimed at leveraging existing customer relationships and expanding market presence[4].