United Bancorp, Inc. Reports Earnings of $0.15 per Share for the Quarter Ended March 31, 2010

MARTINS FERRY, Ohio, April 30 /PRNewswire-FirstCall/ -- United Bancorp, Inc. (Nasdaq: UBCP), headquartered in Martins Ferry, Ohio reported earnings of $683,000 for the quarter ended March 31, 2010, compared to $801,000 for the quarter ended March 31, 2009, a decrease of 14.7%.  On a per share basis, the Company's diluted earnings were $0.15 for three months ended March 31, 2010, as compared to $0.17 for the three months ended March 31, 2009, a decrease of 11.8%.  

Randall M. Greenwood, Senior Vice President, CFO and Treasurer remarked, "The Company's earnings in the first quarter of 2010 generated an annualized 0.61% return on average assets ("ROA") and an annualized 7.69% return on average equity ("ROE"), compared to 0.72% ROA and 9.46% ROE for the three months ended March 31, 2009.  Comparing the quarter ended March 31, 2010 to 2009, the Company's net interest margin was 4.00% compared to 4.05%, which caused a decrease in net interest income of approximately $114,000 or 3.0%.  As the historically low interest rates continue into 2010, it will be challenging to continue spreading the net interest margin by lowering the Company's cost of funds on an accelerated basis relative to the income generated by its assets.  Comparing the same periods, Customer Service Fees on deposits increased $21,000.  On the expense side, the Company's 2010 earnings were affected by a period over period increase of $65,000 in FDIC Premiums and a $35,000 increase in our Provision for Loan Losses.  The net after-tax per share impact of the additional FDIC Premiums expensed in the first quarter of 2010 is approximately $0.01 per share."  

James W. Everson, Chairman, President and Chief Executive Officer stated, "We continue to forecast a year of solid earnings in 2010, based on our budgeting process, that will be equal to or better than last year's $0.63 per share. Our management of the current risk in our loan portfolio shows improvement with non performing loans to total loans down to 2.30%, well below that of peer.  We continue to aggressively work with our borrowers to strengthen our relationships and pursue quality opportunities by meeting the needs of the credit worthy borrowers within our market areas. Net outstanding loans, the engine that drives earnings, are up 10.52% over first quarter last year.  As the economy recovers in 2010, we shall continue to invest in the communities we serve, to lend prudently, to evaluate strategies to grow our balance sheet, to control expenses and to maintain our services while helping our customers work through these tough times."  Everson concluded, "We are committed to being a sound and trusted provider of financial services through our twenty banking centers in the communities we shall serve for decades to come."      

United Bancorp, Inc. is headquartered in Martins Ferry, Ohio with total assets of approximately $450.2 million and total shareholder's equity of approximately $36.0 million as of March 31, 2010.  Through its single bank charter with its twenty banking offices and an operations center, The Citizens Savings Bank through its Community Bank Division serves the Ohio Counties of Athens, Fairfield and Hocking and through its Citizens Bank Division serves Belmont, Carroll, Harrison, Jefferson and Tuscarawas. United Bancorp, Inc. is a part of the Russell Microcap Index and trades on The NASDAQ Capital Market tier of the NASDAQ Stock Market under the symbol UBCP, Cusip #909911109.

Certain statements contained herein are not based on historical facts and are "forward-looking statements" within the meaning of Section 21A of the Securities Exchange Act of 1934.  Forward-looking statements, which are based on various assumptions (some of which are beyond the Company's control), may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as "may," "will," "believe," "expect," "estimate," "anticipate," "continue," or similar terms or variations on those terms, or the negative of these terms.  Actual results could differ materially from those set forth in forward-looking statements, due to a variety of factors, including, but not limited to, those related to the economic environment, particularly in the market areas in which the company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset/liability management, changes in the financial and securities markets, including changes with respect to the market value of our financial  assets, and the availability of and costs associated with sources of liquidity.  The Company undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE United Bancorp, Inc.