Company: UBCP
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001410578-25-001789
Chunk: 7

Company: UNITED BANCORP INC /OH/
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 7
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As we all know, the economic environment in which we are operating is posing challenges for all businesses with the present high degree of uncertainty that permeates our national and world economies as a result of the tariffs that were announced earlier this year under the new administration and which are in the process of being enacted. This new trade policy, coupled with a potentially slowing economic output and lingering inflation, has led many of us to question the future direction of our economy and what impact it will have on the businesses that operate therein, including our Company. Even though we have dealt with changing fiscal and monetary policy over the course of the past couple of years, this new economic reality relating to trade policy has only recently been cast upon us. Thus far, our Company has responded in a positive fashion to this new economic uncertainty with which we have been confronted on both a year-to-date and year-over-year basis. For the first six months of 2025 compared to the same six- month period the previous year, the net interest income that our Company realized increased by $526,000, or 4.3%, and our net interest margin improved by eleven (11) basis points to 3.65% from 3.54%. Of note, on a year-over-year basis for the most recently ended quarter, our Company’s net interest income increased by $394,000, or 6.4%. We are optimistic that we can continue this current increasing and expansionary trend for both our total interest income and net interest margin for the remainder of this year. Primarily driving the growth in our net interest income and our margin expansion is the growth that our Company achieved in its total assets, increasing on a year-over-year basis by $26.0 million, or 3.2%, to a level of $847.9 million as of June 30, 2025. This growth in total assets was comprised of gross loans increasing by $16.2 million, or 3.4%, to a level of $500.7 million and cash and due from the Federal Reserve Bank increasing by $12.1 million, or 32.3%, to a level of $49.7 million as of the most recently ended quarter. Excitedly, for the first time in our Company’s history, our gross loans exceeded a threshold of a half-billion dollars! With our present liquidity levels at the Federal Reserve, we will have a keen focus on continuing to grow this higher-yielding asset category as we progress into this year. This anticipated growth in