Core Insights - United Bancorp, Inc. (UBCP) reported a 4.3% increase in share price following its earnings report for Q3 2025, outperforming the S&P 500's 0.5% growth during the same period, although it underperformed over the past month with a 2.9% decline compared to the S&P 500's 3.2% gain [1] - The company achieved earnings per share of 34 cents, reflecting a year-over-year increase of 9.7% [1] Financial Performance - Net interest income rose by 9.6% to $6.7 million, driven by a 7% increase in total interest income to $10.6 million [2] - Total noninterest income increased by 10.9% to $1.4 million, while noninterest expenses rose by 8.2% to $6 million, resulting in an 8.9% increase in pre-tax earnings [2] - Net income reached $1.9 million, a 6.1% increase from the same quarter in 2024 [2] Key Business Metrics - Net interest margin improved by 16 basis points to 3.66%, supported by a 5% increase in total assets to $866.8 million [3] - Gross loans increased by 4.5% year over year to $496.5 million, and cash held at the Federal Reserve rose by 20.6% to $45.6 million [3] - The company invested $21 million in excess reserves into municipal securities, achieving a taxable equivalent yield of 6.1% [3] Funding and Deposits - Total deposits increased by 4.8% to $645.2 million, with noninterest-bearing demand deposits rising by 8.5% to $156.3 million [4] - Interest expense increased by 2.7% year over year, but as a percentage of average assets, it only rose three basis points to 1.80% [4] Management Commentary - CFO Randall M. Greenwood acknowledged macroeconomic uncertainties but emphasized stable financial performance and positive trends in net interest income and margin expansion [5] - CEO Scott A. Everson highlighted the focus on expanding the balance sheet to exceed $1 billion in assets, particularly in the small-business segment [6] Earnings Drivers - Earnings growth was primarily supported by higher loan yields and an expanding loan book, with interest income on loans increasing by 7.6% [7] - Credit quality remained stable, with nonperforming assets at 0.66% of total assets and minimal net charge-offs at -0.04% of average loans [7] Credit Loss Provisions - The company doubled its provision for credit losses on loans to $0.2 million from $0.07 million in the prior year, reflecting proactive credit risk management [8] - The allowance for credit losses to total loans improved to 0.87%, with coverage of nonaccrual loans at 177% [8] Growth Initiatives - The company plans to open a new regional banking center in Wheeling, WV, which is expected to enhance deposit and loan growth [9] - Investments in digital transformation, including a new AI platform, aim to improve customer support and cross-selling opportunities [10] Strategic Infrastructure Developments - United Bancorp is finalizing renovations for the new Unified Center in St. Clairsville, OH, expected to enhance customer experience and internal efficiencies by Q1 2026 [11] Shareholder Returns - The company increased its regular cash dividend by 5.7% year over year to 55.5 cents and its special dividend by 16.7% to 17.5 cents, resulting in a total dividend payout of 73 cents for the first nine months of 2025, an 8.2% increase [12]