United Bancorp(US:UBCP)2025-05-14 14:33Financial Performance - Net income for the first quarter of 2025 was $1,872 thousand, a decrease of 6.06% compared to $1,993 thousand in the same period of 2024[9]. - Net income for the three months ended March 31, 2025, was $1.872 million, resulting in basic and diluted earnings per share of $0.32[45]. - Net income for the three months ended March 31, 2025, was $1,903,000, resulting in basic and diluted earnings per share of $0.35[47]. - United Bancorp, Inc. reported net income of $1,872,000 and diluted earnings per share of $0.32 for Q1 2025, representing decreases of 6.1% and 8.6% year-over-year, respectively[144][145]. - Net income for Q1 2025 was reported at $0.32 per diluted share, a decrease of 8.6% from $0.35 in Q1 2024[172]. Asset and Deposit Growth - Total assets increased to $830,681 thousand as of March 31, 2025, up from $816,656 thousand at December 31, 2024, representing a growth of 1.54%[6]. - Total deposits rose to $624,081 thousand as of March 31, 2025, an increase of 1.20% from $613,494 thousand at the end of 2024[6]. - Total core deposits increased by approximately $5.3 million, or 2.9%, from December 31, 2024[167]. Loan Portfolio - Total gross loans as of March 31, 2025, amounted to $496,866,000, an increase from $490,971,000 as of December 31, 2024[60]. - The total recorded investment in loans as of March 31, 2025, was $490,751,000, indicating a stable loan portfolio[69]. - The total past due loans amounted to $1,025,000 as of March 31, 2025, with $158,000 past due for 30-59 days, $75,000 for 60-89 days, and $56,000 for more than 90 days[87]. - The total past due and accruing loans for commercial and industrial as of March 31, 2025, was $350,000, with total loans amounting to $99,571,000[85]. - The total past due and accruing loans for residential loans was $737,000, with total loans amounting to $92,709,000[85]. - The total past due and accruing loans for commercial real estate was $1,673,000, with total loans amounting to $296,493,000[85]. Income and Expenses - Noninterest income increased to $1,281 thousand in Q1 2025, up 47.83% from $866 thousand in Q1 2024[9]. - Total noninterest expense increased to $5,586 thousand in Q1 2025, up from $4,838 thousand in Q1 2024, reflecting a rise of 15.43%[9]. - The total cash dividend paid in Q1 2025 was $0.3575, reflecting a 10.9% increase compared to Q1 2024[152]. - Noninterest income increased by $415,000 year-over-year, partly due to a $143,000 gain on the sale of available-for-sale securities in Q1 2025[175]. - Noninterest expense rose by $748,000 or 15.5% year-over-year, influenced by the approval of an Employee Retention Credit of $1,080,000 in Q1 2024[176]. Credit Losses and Provisions - The provision for credit loss expense was $96 thousand in Q1 2025, compared to no provision in Q1 2024[9]. - The allowance for credit losses (ACL) is established to present the net amount expected to be collected on loans, with significant changes possible from period to period[36][37]. - The allowance for credit losses increased to $4,095,000 as of March 31, 2025, compared to $4,026,000 at the end of 2024[64]. - The total allowance for credit losses to total loans was 0.82% as of March 31, 2025, indicating strong coverage and capitalized status[148]. - The allowance for credit losses totaled $4.1 million, representing 0.82% of total loans as of March 31, 2025[165]. Market Presence and Operations - The Company operates primarily in Ohio and West Virginia, with banking operations aggregated in one reportable operating segment[19]. - The Company has branches in multiple locations across Ohio and West Virginia, enhancing its market presence[19]. - The Company’s primary deposit products include checking, savings, and term certificate accounts, while primary lending products consist of residential real estate, commercial and industrial loans[20]. Investment and Securities - The fair value of available-for-sale securities was $221,672,000 as of March 31, 2025, representing 96% of the Company's available-for-sale investment portfolio[54]. - The total fair value of investments in available-for-sale securities decreased from $208.8 million at December 31, 2024, to $221.7 million at March 31, 2025[54]. - The net unrealized loss on available-for-sale securities was $(15,212,000) as of March 31, 2025, compared to $(12,130,000) at December 31, 2024[98]. Future Outlook and Strategy - The Company aims to grow to an asset threshold of $1.0 billion or greater in a prudent and profitable manner[153]. - The company is investing in technology and digital transformation, including the implementation of artificial intelligence to enhance customer service[151]. - The company has undertaken several transformative projects, including the construction of a new banking center in Wheeling, West Virginia, scheduled to open in late Q3 2025[149][151]. Risk Management - The company is cautiously optimistic about managing economic risks, supported by prudent underwriting policies and capital levels, but may need to make additional credit loss provisions due to economic conditions[184]. - The company utilizes a loan risk grading system with categories including pass, special mention, substandard, and doubtful, which are updated periodically[83]. - The company has not made significant changes to its loan risk grading system or allowance for credit losses methodology in the past year[83].