United Bancorp, Inc. Reports Continued Earnings Improvement with an Earnings Per...

United Bancorp, Inc. Reports Continued Earnings Improvement with an Earnings
Per Share Increase of 51% for the Nine Months Ended September 30, 2008

MARTINS FERRY, Ohio, Oct. 23 /PRNewswire-FirstCall/ -- United Bancorp,
Inc. (Nasdaq: UBCP), headquartered in Martins Ferry, Ohio reported continued
earnings improvement with net income of $2,825,000 for the nine months ended
September 30, 2008 compared to $1,874,000 for the nine months ended September
30, 2007. On a per share basis, the Company's nine month diluted earnings
were $0.62 for 2008, as compared to $0.41 for 2007, an increase of 51%. Third
quarter 2008 earnings per share was $0.20 compared to $0.09 for the third
quarter of 2007, up 122%.
Randall M. Greenwood, Senior Vice President, CFO and Treasurer remarked,
"The Company's nine month earnings in 2008 generated an annualized 0.87%
return on average assets ("ROA") and a 11.3% return on average equity ("ROE"),
compared to 0.59% ROA and 7.91% ROE for the comparable nine month period in
2007. We are confident the 2008 results of operations for the nine months
ended September 30, 2008 will compare very favorably with our peers in the
banking industry. Moreover, with the recent reduction in short term interest
rates by the Federal Reserve, we are projecting the Company's net interest
margin to reflect continued improvement through the end of 2008. The
Company's net interest margin of 4.08% for the nine months ended September 30,
2008, compared to 3.07% in 2007, generated an increase of approximately
$2,582,000 in net interest income over the same period in 2007. Service charge
income on deposit accounts for the nine months ended September 30, 2008
increased $182,000 which reflects the continuing positive impact of the
Company's courtesy overdraft and merchant check capture programs. The
Company's enhanced earnings level was accomplished despite an approximate
$230,000 period over period before-tax increase in the provision for loan
losses."
James W. Everson, Chairman, President and Chief Executive Officer stated,
"We are pleased to report our earnings improvement and continue to project a
year of record earnings for United Bancorp for 2008. Further, we wish to
stress the increased loan loss provision in the 2008 nine month period
reflects prudence as it relates to the economic challenges facing the banking
industry as evidenced by an overall deterioration in asset quality within the
financial sector."
Everson concluded by stating, "We project that our recently announced
acquisition of the Ohio offices and deposits of the failed Ameribank in St.
Clairsville, Dillonvale and Tiltonsville will greatly enhance our banking
"footprint" in our eastern region and will be accretive to earnings beginning
in the first quarter of 2009. In addition, this acquisition has provided
additional liquidity by adding approximately $32 million of low cost core
deposits to the Company's deposit totals reported as of September 30, 2008. We
anticipate by the end of November that our newly acquired customers will be
able to bank interchangeably at all thirteen of our full service banking
facilities located in the northern and eastern regions which comprise our
Citizens Bank Division. Based upon our performance in 2007, which was
impacted by one-time charter consolidation costs, we are projecting a record
forty percent improvement in year-end 2008 earnings over 2007. Needless to
say, your Directors and Management Team are pleased to make this positive
report during these trying economic times."
United Bancorp, Inc. is headquartered in Martins Ferry, Ohio with total
assets of approximately $453.0 million and total shareholder's equity of
approximately $32.3 million as of September 30, 2008. Through its single bank
charter now 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.

UNITED BANCORP, INC., MARTINS FERRY, OH
SYMBOL "UBCP"

For the Three Months Ended
September 30, %
2008 2007 Change
Earnings
Total interest income $6,305,116 $6,671,868 -5.50%
Total interest expense 2,347,512 3,806,649 -38.33%
Net interest income 3,957,604 2,865,219 38.13%
Provision for loan losses 324,016 283,095 14.45%
Net interest income after
provision for loan losses 3,633,588 2,582,124 40.72%
Service charges on deposit
accounts 515,835 480,684 7.31%
Net realized losses of sales on
securities (14,177) - N/A
Net realized gains on sale of
loans 23,418 13,612 72.04%
Net realized gains on sale of
other real estate and
repossessions 8,329
Other noninterest income 203,697 291,423 -30.10%
Total noninterest income 728,773 785,719 -7.25%
Total noninterest expense 3,235,530 3,005,168 7.67%
Income tax expense 239,000 (29,087) -921.67%
Net income $896,160 $391,762 128.75%
Per share
Earnings per common share - Basic $0.20 $0.09 122.22%
Earnings per common share -
Diluted 0.20 0.09 122.22%
Cash Dividends paid 0.14 0.13 7.69%
Shares Outstanding
Average - Basic 4,593,728 4,579,381 -
Average - Diluted 4,593,925 4,581,455 -

For the Nine Months Ended
September 30, %
2008 2007 Change
Earnings
Total interest income $19,447,159 $19,746,701 -1.52%
Total interest expense 8,007,201 10,889,429 -26.47%
Net interest income 11,439,958 8,857,272 29.16%
Provision for loan losses 887,358 657,448 34.97%
Net interest income after
provision for loan losses 10,552,600 8,199,824 28.69%
Service charges on deposit
accounts 1,517,733 1,336,165 13.59%
Net realized gains (losses) of
sales on securities (14,177) 1,389 -1120.66%
Net realized gains on sale of
loans 82,284 9,081 806.11%
Net realized losses on sale of
other real estate and
repossessions (143,292) - N/A
Other noninterest income 654,427 890,112 -26.48%
Total noninterest income 2,096,975 2,236,747 -6.25%
Total noninterest expense 9,060,854 8,341,740 8.62%
Income tax expense 764,107 220,926 245.87%
Net income $2,824,614 $1,873,905 50.73%
Per share
Earnings per common share -
Basic $0.62 $0.41 51.22%
Earnings per common share -
Diluted 0.62 0.41 51.22%
Cash Dividends paid 0.40 0.39 2.56%
Book value (end of period) 7.01 6.91 1.45%
Shares Outstanding
Average - Basic 4,581,958 4,564,741 -
Average - Diluted 4,582,155 4,566,765 -
At quarter end
Total assets $452,898,480 $442,147,590 2.43%
Total assets (average) 434,524,000 425,966,000 2.01%
Other real estate and
repossessions 620,270 820,100 -24.37%
Gross loans 239,750,617 227,329,359 5.46%
Allowance for loan losses 2,964,852 2,218,067 33.67%
Net loans 236,785,765 225,111,292 5.19%
Net loans charged off 369,760 784,778 -52.88%
Non-performing loans 4,302,000 1,586,000 171.25%
Average loans 235,204,000 227,722,000 3.29%
Securities and other
restricted stock 149,294,407 176,132,794 -15.24%
Shareholders' equity 32,275,339 32,115,558 0.50%
Shareholders' equity (average) 33,323,000 31,571,000 5.55%
Stock data
Market value - last close (end
of period) $10.00 $11.39 -12.20%
Dividend payout ratio 64.52% 95.12% -32.18%
Price earnings ratio 12.20 18.67 -34.68%
Key performance ratios
Return on average assets (ROA) 0.87% 0.59% 0.28%
Return on average equity (ROE) 11.30% 7.91% 3.39%
Net interest margin (FTE) 4.08% 3.07% 1.01%
Interest expense to average
assets 2.46% 3.41% -0.95%
Total allowance for loan losses
to nonperforming loans 68.92% 139.85% -70.93%
Total allowance for loan losses
to total loans 1.24% 0.98% 0.26%
Nonperforming loans to total loans 1.79% 0.70% 1.09%
Nonperforming assets to total
assets 1.09% 0.54% 0.55%
Net charge-offs to average loans 0.16% 0.34% -0.18%
Equity to assets at period end 7.13% 7.26% -0.14%

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.

James W. Everson, Chairman, President and CEO, +1-740-633-0445 Ext. 120,
ceo@unitedbancorp.com; or Randall M. Greenwood, Senior Vice President, CFO and
Treasurer, +1-740-633-0445 Ext. 181, cfo@unitedbancorp.com