United Bancorp(US:UBCP)2023-11-14 13:05Financial Performance - Net income for the three months ended September 30, 2023, was $2,392 thousand, a rise of 3.9% from $2,303 thousand in the same period last year[8]. - Net income for the nine months ended September 30, 2023, was $6,560,000, compared to $6,351,000 for the same period in 2022, representing an increase of 3.3%[13]. - Earnings per common share for the three months ended September 30, 2023, were $0.42, up from $0.40 in the same period of 2022, indicating a growth of 5.0%[7]. - For the first nine months of 2023, the company reported diluted earnings per share of $1.15 and net income of $6,560,000, showing growth over the same period in 2022[137]. - Comprehensive loss for the three months ended September 30, 2023, was $(4,906) thousand, compared to $(4,367) thousand in the same period of 2022[8]. Income and Expenses - Net interest income for the three months ended September 30, 2023, was $6,566 thousand, compared to $6,369 thousand for the same period in 2022, reflecting an increase of 3.1%[7]. - Noninterest income for the three months ended September 30, 2023, totaled $963 thousand, a decrease of 7.7% from $1,043 thousand in the same period last year[7]. - Total noninterest expense for the three months ended September 30, 2023, was $5,233 thousand, an increase from $4,879 thousand in the same period last year, representing a rise of approximately 7.2%[7]. - Noninterest income for the nine months ended September 30, 2023 increased by $7,000 or less than 1.0% compared to the same period in 2022[168]. - Noninterest expense increased by $922,000 or 6.2% year-over-year, primarily due to inflation[169]. Assets and Liabilities - Total assets increased to $814,281 thousand as of September 30, 2023, up from $757,400 thousand at December 31, 2022, representing a growth of 7.4%[5]. - Total liabilities increased to $761,691 thousand as of September 30, 2023, compared to $697,663 thousand at December 31, 2022, marking an increase of 9.2%[5]. - The company’s total comprehensive income (loss) decreased to $(17,020,000) as of September 30, 2023, from $(14,480,000) in 2022, reflecting a worsening of comprehensive performance[10]. - Stockholders' equity totaled $52.6 million at September 30, 2023, a decrease of $7.1 million from $59.7 million at December 31, 2022[178]. Deposits and Cash Flow - Total deposits decreased to $628,012 thousand as of September 30, 2023, down from $649,913 thousand at December 31, 2022, a decline of 3.3%[5]. - The company reported a net change in deposits of $(21,901,000) for the nine months ended September 30, 2023, compared to an increase of $44,965,000 in 2022[13]. - Cash dividends paid increased to $3,786,000 for the nine months ended September 30, 2023, from $3,613,000 in 2022, representing a rise of 4.8%[13]. - Net cash provided by operating activities was $6,748,000 for the nine months ended September 30, 2023, compared to $5,362,000 in 2022, indicating an increase of 25.8%[13]. - Total cash and cash equivalents at the end of the period increased to $70,892,000 as of September 30, 2023, compared to $35,297,000 at the end of the same period in 2022, marking a significant increase of 100.5%[13]. Credit Losses and Loans - The provision for credit loss expense for loans was a reversal of $154 thousand for the three months ended September 30, 2023, compared to an expense of $15 thousand in the same period of 2022[7]. - The allowance for credit losses totaled $4.5 million at September 30, 2023, representing 0.88% of total loans, compared to $2.1 million or 0.45% of total loans prior to adopting ASU 2016-13[159]. - The company experienced a decrease in total deposits of approximately $30.0 million, or 3.4%, from December 31, 2022[161]. - The total balance of common stock increased to $6,064,000 as of September 30, 2023, from $6,044,000 as of September 30, 2022, reflecting a slight increase of 0.3%[10]. - The company reported a loss on sale or write down of foreclosed assets of $62,000 for the nine months ended September 30, 2023, compared to $23,000 in 2022, indicating a deterioration in asset management[13]. Future Outlook and Strategy - United Bancorp plans to open a new regional banking center in Wheeling, West Virginia, to leverage its existing customer base for growth[147]. - The company aims to grow its assets to $1 billion or greater in a prudent and profitable manner while focusing on cost control and efficiency[145]. - A $75 million advance from the Federal Home Loan Bank was taken to enhance liquidity and hedge against interest rate increases, locked in at a blended rate of approximately 4.24%[143].