United Bancorp(US:UBCP)2024-08-13 15:00Financial Performance - Net income for the three months ended June 30, 2024, was $1,739 thousand, a decrease of 23.8% from $2,280 thousand for the same period in 2023[10]. - Net income for the six months ended June 30, 2024, was $3,732,000, a decrease of 10.5% compared to $4,168,000 for the same period in 2023[16]. - Earnings per common share for the three months ended June 30, 2024, was $0.30, down from $0.40 in the same period of 2023, a decrease of 25.0%[10]. - For the six months ended June 30, 2024, net income was $3,541,000, with basic and diluted earnings per share of $0.64, down from $0.73 in the same period of 2023[44]. - Comprehensive loss for the three months ended June 30, 2024, was $(1,673) thousand, compared to a comprehensive income of $288 thousand for the same period in 2023[11]. - Net income declined by 23.70% to $1,739,967, down from $2,280,424, reflecting a decrease in earnings before income taxes by 34.11% to $1,613,140[124]. Asset and Liability Management - Total assets increased to $821,815 thousand as of June 30, 2024, compared to $819,449 thousand at December 31, 2023, reflecting a growth of 0.3%[7]. - Total liabilities increased to $761,218 thousand as of June 30, 2024, from $755,856 thousand at December 31, 2023, reflecting an increase of 0.6%[7]. - The carrying amount of cash and cash equivalents was $37,570,000 as of June 30, 2024, down from $40,770,000 at December 31, 2023[100]. - The total stockholders' equity increased to $63,206,000 as of June 30, 2024, from $58,409,000 as of June 30, 2023, representing an increase of approximately 8.1%[16]. - The common equity tier 1 capital ratio was 13.26%, indicating the company remains well-capitalized under federal regulatory requirements[152]. Income and Expense Analysis - Net interest income after credit for losses was $6,098 thousand for the three months ended June 30, 2024, down from $6,491 thousand in the same period last year, representing a decline of 6.0%[10]. - Total noninterest income for the three months ended June 30, 2024, was $1,184 thousand, up from $1,046 thousand in the same period of 2023, indicating an increase of 13.2%[10]. - Total noninterest expense increased by 11.37% to $5,668,133, compared to $5,089,269 in the previous period[124]. - The provision for credit loss expense for loans was $234 thousand for the three months ended June 30, 2024, compared to a reversal of $146 thousand in the same period last year[10]. - The provision for credit losses on loans increased significantly by 260.34% to $234,499, indicating a rise in expected credit losses[124]. Deposit and Loan Activity - Total deposits increased to $623,189 thousand as of June 30, 2024, compared to $621,459 thousand at December 31, 2023, showing a slight increase of 0.3%[7]. - The net change in deposits for the six months ended June 30, 2024, was an increase of $1,730,000, contrasting with a decrease of $6,297,000 in the prior year[16]. - Total gross loans as of June 30, 2024, amounted to $484,514,000, an increase from $483,236,000 at December 31, 2023[54]. - The total recorded investment in loans as of June 30, 2024, was $484,204,000, with $91,917,000 in residential loans and $10,063,000 in consumer loans[60]. - The total performing loans across all categories amounted to $8,565,000, down from $13,393,000 year-over-year, a decrease of approximately 36.5%[67]. Securities and Investments - The fair value of available-for-sale securities at June 30, 2024, was $240,124,000, down from $251,683,000 at December 31, 2023[48]. - The company recorded a gain of approximately $78,000 on the sale of available-for-sale securities for the three months ended June 30, 2024, and a loss of approximately $116,000 for the six months ended June 30, 2024[53]. - The total fair value of investments in debt securities at June 30, 2024, was $215.3 million, representing 90% of the company's available-for-sale investment portfolio[51]. - The company experienced gross unrealized losses of $13,914,000 on total debt securities as of June 30, 2024[46]. - The net unrealized loss on securities available-for-sale increased to $(13,658,000) as of June 30, 2024, compared to $(8,922,000) at December 31, 2023, reflecting a deterioration of 53%[86]. Dividend and Shareholder Information - Dividends per common share increased to $0.1750 for the three months ended June 30, 2024, compared to $0.1650 for the same period in 2023, an increase of 9.1%[10]. - Cash dividends paid increased to $2,979,000 for the six months ended June 30, 2024, compared to $2,800,000 in the prior year, reflecting a dividend per share increase from $0.4775 to $0.4975[16]. - The company paid a regular cash dividend of $0.3475 and a special cash dividend of $0.15, totaling $0.4975, which represents a year-over-year increase of $0.01, or 6.1%[121]. - The total dividend yield for the current year is 6.8%, based on the second quarter cash dividend and special dividend[121]. Future Outlook and Strategic Initiatives - The company expects to overcome current challenges and achieve higher growth and improved performance in the next 12 to 24 months[113]. - UBCP aims to grow total assets to $1.0 billion or greater, with a new banking center under construction in Wheeling, West Virginia, expected to open by mid-2025[120]. - UBCP is focusing on enhancing mortgage origination and Treasury Management functions to generate additional noninterest income and improve overall performance[118].