United Bancorp, Inc. Reports an 4.3% Increase in Earnings for the Quarter Ended June 30, 2010

MARTINS FERRY, Ohio, July 29 /PRNewswire-FirstCall/ -- United Bancorp, Inc. (Nasdaq: UBCP), headquartered in Martins Ferry, Ohio reported net earnings of $701,000 for the quarter ended June 30, 2010, compared to $672,000 for the quarter ended June 30, 2009, an increase of 4.3%.  On a per share basis, the Company's diluted earnings were unchanged at $0.15 for three months ended June 30, 2010, as compared to the three months ended June 30, 2009.  For the six months ended June 30, 2010 the Company reported net earnings of $1,384,000, compared to $1,473,000 for the six months ended June 30, 2009, a decrease of 6.0%.  On a per share basis, the Company's six months diluted earnings were $0.30 for 2010, as compared to $0.32 for 2009, a decrease of 6.3%.

Randall M. Greenwood, Senior Vice President, CFO and Treasurer remarked, "The Company's earnings in the six months ended June 30, 2010 generated an annualized 0.61% return on average assets ("ROA") and a 7.62% return on average equity ("ROE"), compared to 0.65% ROA and 8.66% ROE for the six months ended June 30, 2009.  Comparing the six months ended June 30, 2010 to 2009, the Company's net interest margin was 3.92% compared to 4.00%, a modest decrease of 8 basis points. This decrease in the margin resulted in a $149,000 decrease in net interest income for the six months ended June 30, 2010 as compared to the same period in 2009. Comparing the same periods, Customer Service Fees on deposits increased $72,000.  On the expense side, total noninterest expense decreased $34,000 for the six months ended June 30, 2010 as compared to 2009.  The Company's 2010 earnings were affected by a period over period increase of $72,000 in our Provision for Loan Losses.  The increase in the provision for loan losses for the six months ended June 30, 2010 was predicated primarily upon an increase in the level of charge-offs, growth in the loan portfolio and the effect of the current economic environment."  

James W. Everson, UBCP's Chairman, President and CEO stated, "We continue to maintain our focus on managing our earnings to maintain our status of being a 'Well Capitalized Company' and allow for capital expenditures for future growth, while sufficiently accruing into our Loan Loss Provision as we manage our asset quality, plus cover our liberal cash dividend payment policy."  Everson concluded, "We are pleased with our earnings performance that supports these objectives.  We shall be introducing our next generation core operating system in August to support our future growth and product development and we shall be opening our new banking center in Tiltonsville in the fourth quarter."  

United Bancorp, Inc. is headquartered in Martins Ferry, Ohio with total assets of approximately $452.9 million and total shareholder's equity of approximately $36.3 million as of June 30, 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.