United Bancorp, Inc. Reports a 21.3% increase in Earnings for the Year Ended December 31, 2011

MARTINS FERRY, Ohio, Jan. 26, 2012/PRNewswire/ -- United Bancorp, Inc. (Nasdaq: UBCP), headquartered in Martins Ferry, Ohioreported net income of $3,090,924for the year ended December 31, 2011compared to $2,547,367for the year ended December 31, 2010, an increase of 21.3%.  On a per share basis, the Company's diluted earnings were $0.62for 2011, as compared to $0.52for 2010, an increase of 19.2%.

Randall M. Greenwood, Senior Vice President, CFO and Treasurer remarked, "The Company's net income in 2011 generated an annualized 0.73% return on average assets ("ROA") and an 8.53% return on average equity ("ROE"), compared to 0.57% ROA and 7.05% ROE for 2010.  Comparing the year ended December 31, 2011to 2010, the Company's net interest margin was 4.18% compared to 4.02%, an increase of 16 basis points. This increase in the margin resulted in a $317,000increase in net interest income for the year ended December 31, 2011as compared to 2010. Comparing the same periods, customer service fees on deposits decreased $128,000.  As the Company continues to implement government imposed regulations from the Dodd-Frank Act regarding its courtesy overdraft program, we will continue to experience regulatory requirements that may result in a decrease in customer service fees. In anticipation of these challenges and their potential impact on non-interest income, a variety of cost savings initiatives have been implemented in 2011 to reduce the non-interest expense of the Company.  Year-to-date non-interest expense, excluding the reduction in FDIC Insurance Premiums, conversion expenses and provision for losses on impairment of foreclosed real estate, decreased by $379,000.  The majority of the decrease in non-interest expense is due to the Company's cost savings initiatives implemented during the second and third quarters of 2011. As we move forward, these cost saving initiatives are expected to have a continuing positive impact on future earnings and help offset some of the anticipated decline in non-interest income.  The Company recognized a gain on sale of securities of $370,000for the year ended December 31, 2011and the Company received $100,000of a BOLI benefit in excess of surrender value.  The securities gain was the result of the Company selling its government sponsored mortgage-backed securities portfolio to take advantage of the favorable rate environment on these short term investments and provide liquidity to restructure the Company's balance sheet to shift towards higher yielding loan relationships.   Accordingly, this shift in the mix of the interest-earning assets on the balance sheet contributed to average loans increasing by $10,259,000.  On the expense side, the Company's 2011 earnings were affected by a period over period increase of $152,000in our provision for loan losses. The increase in the provision for loan losses was predicated primarily upon the continued economic challenges facing the banking industry.  While net loans charged off did increase for the year ended December 31, 2011as compared to 2010, the Company was able to move those charged off credits through the collection process and into Other Real Estate for Sale and begin to market these properties for sale." 

James W. Everson, UBCP's Chairman, President and CEO stated, "Our Management Team is both pleased and excited to have met our earlier announced earnings projections for 2011.  Our focus continues to be maintaining a balance in managing our asset size and our asset quality with sufficient provisions to our reserve for loan losses while retaining sufficient earnings to maintain our regulatory "Well Capitalized" status and   continuing our liberal dividend payment policy.  We are very proud of the fact the market recognizes our efforts and that our stock continues to trade over 110% of its book value where many of our peers are trading at less than 70% of their book value."  Everson concluded, "Based on our projected earnings growth and the continued low interest rate environment resulting from current economic and monetary policies, we continue to think United Bancorp, Inc. stock is a viable investment option for anyone looking for a good return on their money."

United Bancorp, Inc. is headquartered in Martins Ferry, Ohiowith total assets of approximately $415.6 millionand total shareholder's equity of approximately $36.2 millionas of December 31, 2011.  Through its single bank charterwithits twenty banking offices and an operations center, The Citizens Savings Bank through its Community Bank Division serves the OhioCounties of Athens, Fairfieldand Hockingand through its Citizens Bank Division serves Belmont, Carroll, Harrison, Jeffersonand 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.

United Bancorp, Inc,
"UBCP"
	For the Three Months Ended December 31,				%
	2011		2010		Change
Earnings
Total interest income	$ 4,889,360		$ 5,220,898		-6.35%
Total interest expense	1,090,460		1,379,093		-20.93%
Net interest income	3,798,900		3,841,805		-1.12%
Provision for loan losses	424,327		765,420		-44.56%
Net interest income after provision for loan losses	3,374,573		3,076,385		9.69%
Service charges on deposit accounts	519,132		503,041		3.20%
Net realized gains of sales on securities	-		-		N/A
Net realized gains on sale of loans	18,226		92,158

SOURCE United Bancorp, Inc.