Shares of United Bancorp, Inc. UBCP have gained 2.6% since the company reported its earnings for the quarter ended Dec. 31, 2025. This compares to the S&P 500 index’s 1.1% decline over the same time frame. Over the past month, the stock has declined 0.9% compared with the S&P 500’s 0.9% decrease, indicating relative stability in performance amid broader market volatility.
United Bancorp reported earnings per share (EPS) of 35 cents, which rose 12.9% from 31 cents in the same quarter of 2024.
Total interest income for the quarter grew 5.2% year over year to $10.6 million, driven primarily by an 8.3% increase in interest income on loans. Net interest income rose 8.6% to $6.9 million, and despite a 49.4% increase in credit loss provisions, net income held strong.
Net income of $2 million reflected a 10% year-over-year increase. Notably, the bank also reported a $0.7 million gain from the sale of available-for-sale securities during the quarter.
United Bancorp, Inc. Price, Consensus and EPS Surprise
United Bancorp, Inc. price-consensus-eps-surprise-chart | United Bancorp, Inc. Quote
2025 Update
Full-year net income reached $7.8 million, up 4.7%, while EPS rose to $1.34, a 5.5% increase compared to $1.27 in 2024.
For the full year, net interest income was up 6.7% to $26.5 million.
Other Key Business Metrics
UBCP experienced notable balance sheet growth in 2025. Total assets increased by $40.8 million (5%) to $857.4 million as of Dec. 31, 2025. Average loans rose 3.5% year over year to $497.9 million, while average deposits increased 2.5% to $635.3 million. Interest-bearing time deposits saw an 8.4% rise, contributing to a total deposit growth of 4.5%.
The company’s net interest margin improved by 19 basis points to 3.70% from 3.51% the prior year, aided by both organic loan growth and strategic balance sheet management. This included a swap in municipal securities that increased taxable equivalent yield by 139 basis points, generating an additional $0.4 million in annualized interest income.
Credit quality remained resilient. Nonaccrual loans, while rising to $2.3 million (0.46% of gross loans), were still considered manageable. Total net charge-offs were $0.4 million for the year, or 0.06% of average loans. The allowance for credit losses rose 5.8% to $4.3 million, now covering 0.87% of total loans.
Management Commentary and Strategic Outlook
CFO Randall Greenwood highlighted that the year’s performance came amid significant investment initiatives that increased noninterest expenses by 19.5% in the quarter. These included the launch of a new banking center in Wheeling, WV; expansion of the Unified Mortgage and Treasury Management programs; and digital transformation efforts. Greenwood acknowledged the dilutive impact of these projects but emphasized their importance to long-term growth.
Greenwood also cited macroeconomic headwinds — including trade-related uncertainty, inflation, and the impact of federal government shutdowns — but noted the company's proactive response via balance sheet expansion and interest margin management. He added that declining interest expense trends, observed in the fourth quarter, may continue into 2026, potentially boosting net interest income further.
Influences on Performance
The company benefited from higher loan yields as older low-rate loans repriced. A one-time gain from securities sales and increased income from fee-generating activities — such as the Unified Mortgage Division — also contributed to earnings strength. On the downside, provision for credit losses more than doubled year-over-year, trimming EPS by approximately 54 cents.
Despite these headwinds, the return on average assets (ROA) rose to 0.91% and return on average equity (ROE) improved to 11.69%, up from 0.89% and 10.93% in the prior year, respectively. The company also maintained strong regulatory capital levels, with total regulatory capital at $75.9 million, or 8.9% of average assets.
Guidance and Future Plans
CEO Scott Everson reiterated the company’s strategic objective of growing total assets to over $1 billion. He expects the recent infrastructure investments, including digital platforms and AI-driven customer service enhancements, to play a pivotal role in driving efficiency, customer acquisition, and cross-sell opportunities.
Everson also indicated that strong demand in the small business commercial loan segment — comprising 81% of total loans — would be a key growth driver. He emphasized that achieving greater scale through asset growth would support improved profitability.
Other Developments
During the fourth quarter, UBCP opened its new Wheeling, WV, banking center, which had already begun contributing to loan and deposit growth before its official launch on Dec. 9, 2025. Additionally, the company acquired and is developing the “Unified Center” in St. Clairsville, OH, which will centralize the bank’s Accounting, IT and Customer Support operations. Completion is expected by the end of the first quarter of 2026.
The company also enhanced shareholder returns with higher dividend payouts. Total cash dividends increased 7.6% to 92 cents in 2025, including a 16.7% rise in the special dividend. The stock's total dividend yield stood at a notable 6.4%, reflecting both steady capital return and robust market performance.
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United Bancorp, Inc. (UBCP): Free Stock Analysis Report
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