United Bancorp(US:UBCP)2023-03-17 16:23Customer and Market Position - Unified has no single customer or related group of customers whose banking activities would materially impact earnings capabilities[11] - As of June 30, 2022, Unified ranked sixth in total deposit market share among approximately 39 commercial banking institutions in its Ohio and West Virginia markets[13] - Unified competes for loans and deposits with various financial institutions in the Mid-Ohio valley and surrounding areas[12] Regulatory Environment - Unified is subject to supervision and regulation by the Federal Reserve, FDIC, and Ohio Division of Financial Institutions, ensuring financial safety and soundness[14] - The Dodd-Frank Act created new restrictions and an expanded framework of regulatory oversight for financial institutions, impacting Unified's operations[23] - Unified is required to maintain capital adequacy ratios and exceeded its minimum capital requirements as of December 31, 2022[30] - The FDIC may terminate deposit insurance if Unified engages in unsafe practices or is in an unsafe condition to continue operations[35] - Unified's deposits are insured by the FDIC, which assesses premiums based on capital levels and supervisory evaluations[34] - The Dodd-Frank Act revised the FDIC's management of the Deposit Insurance Fund, implementing new rules regarding assessments and risk classification[36] - The Company is required to obtain prior approval from the Federal Reserve for acquisitions exceeding five percent of voting shares[26] - The Company is subject to various federal regulations regarding capital maintenance, affiliate transactions, and loan limitations[56] - The SEC's Dodd-Frank Executive Compensation Clawback Rules became effective on January 27, 2023, impacting executive compensation practices[45] - The implementation of Basel III capital adequacy measures began in March 2015, affecting how capital is measured[38] - The Federal Deposit Insurance Act prioritizes claims of depositors in the event of liquidation, ahead of unsecured creditors[50] - Ohio law restricts Unified from paying dividends exceeding its undivided profits without prior approval[40] Financial Performance - Total interest and dividend income decreased by $3,129 thousand, with a $1,886 thousand decline in loans and a $1,149 thousand decline in tax-exempt securities[69] - Net interest income decreased by $991 thousand, attributed to a $2,138 thousand reduction in total interest expense[69] - Total assets increased to $722,400 thousand in 2021 from $702,927 thousand in 2020, reflecting a growth of approximately 2.7%[66] - The ratio of net charge-offs to average loans outstanding increased to 0.14% in 2022 from 0.04% in 2021[77] - The total allowance for loan losses decreased to $2,052 thousand in 2022 from $3,673 thousand in 2021, indicating a reduction of approximately 44%[78] - The total stockholders' equity rose to $71,161 thousand in 2021, up from $69,457 thousand in 2020, representing a growth of about 2.4%[66] - The average yield on interest-earning assets decreased to 3.87% in 2021 from 4.49% in 2020[66] - Demand deposits increased to $256,638 thousand in 2021, compared to $248,167 thousand in 2020, marking a growth of approximately 3.9%[66] - The total allowance for loan losses to total loans ratio decreased to 0.45% in 2022 from 0.81% in 2021[77] - The average amount of uninsured deposits rose to approximately $102.9 million in 2022, up from $89.8 million in 2021[79] Employment and Operations - Unified has 125 full-time employees, with 32 in management positions and 17 part-time employees[59] - The Company operates solely in the banking sector, with no other business lines reported[62] Deposit Maturity - As of December 31, 2022, the total maturity of time deposits greater than $250,000 was $11,332,000[81] - Time deposits with a maturity of over six through twelve months amounted to $4,368,000[81] - Time deposits with a maturity of over twelve months totaled $6,964,000[81]