United Bancorp Reports Q1 2025 Financial Results with $1.872 Million Net Income

United Bancorp, Inc. reported its financial results for the first quarter of 2025, revealing a net income of $1.872 million, or $0.32 per diluted share. This represents a decrease of 6.1% in net income and an 8.6% decline in earnings per share compared to the same period in 2024. However, the results showed a slight improvement from the previous quarter, with net income increasing by $23,000 and earnings per share rising by $0.01. The company noted that last year's figures included non-recurring items that inflated the results, while this quarter benefited from a realized gain of $143,000 on the sale of available-for-sale securities.

Total assets for United Bancorp increased to $830.681 million as of March 31, 2025, up from $816.656 million at the end of 2024. The company’s loan portfolio grew by $5.9 million, or 1.2%, to $496.9 million, driven primarily by increases in commercial and commercial real estate loans. The provision for credit losses was recorded at $96,000, a shift from the absence of such provisions in the same quarter last year, reflecting the company's proactive approach to managing credit risk amid economic uncertainties.

Operationally, United Bancorp has been focusing on strategic initiatives to enhance its service offerings and infrastructure. The company is in the process of constructing a new banking center in Wheeling, West Virginia, which is expected to open in late 2025. Additionally, the launch of the Unified Mortgage Division and the development of Treasury Management services are aimed at increasing fee income and improving customer service. The company has also invested in technology upgrades, including artificial intelligence, to enhance customer interactions.

Despite the challenges posed by the current economic environment, including inflation and changing trade policies, United Bancorp reported a solid credit quality profile. Nonaccrual loans and loans past due over 30 days totaled $2.8 million, representing 0.57% of gross loans. The allowance for credit losses stood at $4.1 million, or 0.82% of total loans, indicating a well-capitalized position to absorb potential losses. The company remains optimistic about its growth trajectory, aiming to reach an asset threshold of $1 billion in the near future.

Looking ahead, United Bancorp anticipates continued growth in its loan portfolio and improvements in net interest income, supported by a favorable interest rate environment. The company is committed to maintaining its focus on infrastructure investments and product development, which it believes will drive future profitability and shareholder value. The board has also approved an increase in the quarterly dividend to $0.1825, along with a special dividend of $0.175, reflecting the company's commitment to returning value to its shareholders.