United Bancorp(UBCP) - 2025 Q2 - Quarterly Report

Financial Performance - Net income for the three months ended June 30, 2025, was $1,914 thousand, up 10.1% from $1,739 thousand in the same period of 2024[10]. - Basic earnings per share for the three months ended June 30, 2025, was $0.33, compared to $0.30 for the same period in 2024, reflecting a growth of 10%[10]. - Net income for the six months ended June 30, 2025, was $3,786,000, compared to $3,732,000 for the same period in 2024, reflecting a growth of 1.45%[16]. - For Q2 2025, United Bancorp, Inc. reported net income of $1,914,000 and diluted earnings per share of $0.33, reflecting increases of 10.0% and 10.0% respectively compared to Q2 2024[150]. - For the first six months of 2025, net income was $3,786,000, an increase of $54,000 or 1.4% year-over-year, while diluted earnings per share remained at $0.65[150]. Asset Growth - Total assets increased to $847,884 thousand as of June 30, 2025, up from $816,656 thousand at December 31, 2024, representing a growth of 3.5%[7]. - Total cash and cash equivalents at the end of the period rose to $49,686,000 as of June 30, 2025, up from $37,570,000 in 2024, marking a 32.3% increase[16]. - Total deposits rose to $642,945 thousand as of June 30, 2025, compared to $613,494 thousand at December 31, 2024, marking an increase of 4.8%[7]. - The company reported a net change in deposits of $29,451,000 for the six months ended June 30, 2025, compared to $1,730,000 in 2024, showing a substantial increase in deposit growth[16]. Income and Expenses - Net interest income for the three months ended June 30, 2025, was $6,595 thousand, an increase of 6.3% compared to $6,202 thousand for the same period in 2024[10]. - Noninterest income for the six months ended June 30, 2025, increased to $2,671 thousand, up from $2,050 thousand in the same period of 2024, a rise of 30.2%[10]. - Total noninterest expense for the three months ended June 30, 2025, was $5,843 thousand, a slight increase from $5,670 thousand in the same period of 2024[10]. - The provision for credit loss expense for the quarter ended June 30, 2025, was $302,000, an increase of $68,000 year-over-year, leading to a decrease in diluted earnings per share of $0.03[154]. Loan and Credit Quality - Total gross loans increased to $500.7 million as of June 30, 2025, from $491.0 million at December 31, 2024, reflecting a growth of 1.6%[63]. - The allowance for credit losses increased to $4.156 million as of June 30, 2025, compared to $4.026 million at December 31, 2024, indicating a rise of 3.2%[63]. - The company experienced a net change in loans of $(9,723,000) for the six months ended June 30, 2025, compared to $(1,151,000) in 2024, indicating a significant increase in loan activity[16]. - Total nonperforming loans amounted to $1,796,000 as of June 30, 2025, with $1,350,000 in commercial real estate and $238,000 in residential loans[92]. Investment and Securities - The total amortized cost of available-for-sale securities was $244.948 million as of June 30, 2025, with a fair value of $227.253 million, reflecting gross unrealized losses of $17.697 million[52]. - The company reported unrealized losses on available-for-sale securities totaling $17.7 million as of June 30, 2025, compared to $12.5 million at December 31, 2024[58]. - The net unrealized loss on available-for-sale securities was $(17,695,000) as of June 30, 2025, compared to $(12,130,000) at the end of 2024[102]. Capital and Dividends - Stockholders' equity decreased by $3.8 million to $59.7 million at June 30, 2025, with a total stockholders' equity to total assets ratio of 7.04%[191]. - The regular cash dividend increased by $0.02 to $0.3675, a 5.8% increase year-over-year, while the special cash dividend was $0.1750, a 16.7% increase[159]. - The Company maintains a strong capital position with a common equity tier 1 capital ratio of 12.86% and a total capital ratio of 13.55%[196]. Future Outlook - The company anticipates continued growth in gross loans and higher interest income due to the repricing of the loan portfolio in a higher-rate environment[151]. - The company is cautiously optimistic about managing economic risks, monitoring higher risk segments within the loan portfolio due to inflationary pressures[198]. - The company has undertaken several transformative projects, including the construction of a new banking center and investment in technology, which are expected to enhance future growth[150].