United Bancorp Reports $1.911 Million Net Income for Q1 2026, 2.1% Increase Year-Over-Year

United Bancorp, Inc. reported a net income of $1.911 million for the first quarter of 2026, reflecting a 2.1% increase from $1.872 million in the same period last year. This translates to diluted earnings per share of $0.33, up from $0.32 in the prior year. The company’s total interest income rose by 1.8% to $10.014 million, driven by an increase in interest-earning assets, while total interest expense decreased by 2.6% to $3.503 million. As a result, net interest income increased by 4.2% to $6.511 million, contributing to a net interest margin of 3.72%, a 12 basis point improvement year-over-year.

In terms of asset growth, United Bancorp's total assets increased by $27.8 million, or 3.6%, to $858.5 million compared to the previous year. This growth was primarily fueled by a $3.5 million increase in gross loans, which reached $500.3 million, and a $6 million rise in available-for-sale securities. Total deposits also saw a significant increase of $42.6 million, or 6.8%, totaling $666.7 million, with noninterest-bearing demand deposits contributing to this growth. The company’s focus on lower-cost funding sources has helped maintain a favorable interest expense profile.

Operationally, the company has made strategic investments in infrastructure, including the opening of a new banking center in Wheeling, West Virginia, which has already exceeded initial growth forecasts for both loans and deposits. Additionally, United Bancorp is expanding its Unified Mortgage Division and enhancing its Treasury Management capabilities, which are expected to drive noninterest income and strengthen customer relationships. The company is also investing in technology to improve customer service and operational efficiency, including the development of an AI solution for customer inquiries.

Despite the positive financial performance, the company noted an increase in nonaccrual loans and loans past due over 30 days, totaling $6.8 million, or 1.36% of gross loans, which is an increase from the previous year. However, this increase is attributed to a single commercial loan relationship and does not indicate a systemic risk within the loan portfolio. The allowance for credit losses stood at $4.3 million, representing 0.85% of total loans, which management believes is adequate to cover potential losses.

Looking ahead, United Bancorp remains optimistic about its growth trajectory, anticipating continued improvements in net interest income and margin throughout 2026. The company is committed to enhancing its infrastructure and service offerings to ensure long-term relevance in the competitive financial services landscape. The management expressed confidence in achieving a return on its investments in the coming years, with a goal of reaching $1 billion in assets.