<PAGE>   1
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                    FORM 10-Q

[X]     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended  SEPTEMBER 30, 2000

[ ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                  N/A        N/A
                               -------------------------------

Commission File Number:           0-16540
                                  -------


                              UNITED BANCORP, INC.
                              --------------------
            (Exact name of registrant as specified in its charter.)


                Ohio                                            34-1405357
                ----                                          --------------
(State or other jurisdiction of                                (IRS Employer
 incorporation or organization)                            Identification No.)


              201 SOUTH 4TH STREET, MARTINS FERRY, OHIO 43935-0010
              ----------------------------------------------------
              (Address of principal executive offices) (Zip Code)


                                 (740) 633-0445
                                 --------------
              (Registrant's telephone number, including area code)


                                 NOT APPLICABLE
                                 --------------
(Former name, former address and former fiscal year, if changed since last
report)

     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes  X    No
                                             -----     -----

     Indicate the number of shares outstanding of the issuer's classes of common
stock as of the latest practicable date.

     COMMON STOCK, $1.00 PAR VALUE 2,909,464 SHARES AS OF OCTOBER 26, 2000

<PAGE>   2

                              UNITED BANCORP, INC.
                                TABLE OF CONTENTS
                                    FORM 10-Q


<TABLE>
<S>                                                                     <C>
PART I FINANCIAL INFORMATION (UNAUDITED)

ITEM 1. Financial Statements

  Condensed Consolidated Balance Sheets...................................... 3

  Condensed Consolidated Statements of Income................................ 4

  Condensed Consolidated Statements of Shareholders' Equity.................. 5

  Condensed Consolidated Statements of Cash Flows............................ 6

  Notes to the Condensed Consolidated Financial Statements.............. 7 - 13

ITEM 2. Management's Discussion and Analysis of Financial Condition
  and Results of Operations.............................................14 - 22

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk......23 - 24


PART II  OTHER INFORMATION

ITEM 1.
  Legal Proceedings......................................................... 25

ITEM 2.
  Changes in Securities and Use of Proceeds................................. 25

ITEM 3.
  Default Upon Senior Securities............................................ 25

ITEM 4.
  Submission of Matters to a Vote of Security Holders....................... 25

ITEM 5.
  Other Information......................................................... 25

ITEM 6.
  Exhibits and Reports on Form 8-K.......................................... 25

SIGNATURES.................................................................. 26
</TABLE>


                                                                               2
<PAGE>   3

                              UNITED BANCORP, INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (UNAUDITED)


PART I  FINANCIAL INFORMATION
        ITEM 1. FINANCIAL STATEMENTS
(IN THOUSANDS)

<TABLE>
<CAPTION>

                                                               SEPTEMBER 30,  DECEMBER 31,
                                                                   2000           1999
                                                               -------------  --------------
<S>                                                            <C>            <C>
ASSETS
Cash and due from banks                                        $     10,340   $      11,097
Federal funds sold                                                        -             780
                                                               -------------  --------------
  Total cash and cash equivalents                                    10,340          11,877
Securities available for sale                                        91,722          85,362
Securities held to maturity
(Estimated fair value of $10,641 at 09/30/00 and
 $9,566 at 12/31/99)                                                 10,675           9,794
Loans receivable
  Commercial loans                                                   21,620          15,463
  Commercial real estate loans                                       62,650          60,305
  Real estate loans                                                  54,783          51,357
  Installment loans                                                  57,529          53,391
                                                               -------------  --------------
    Total loans receivable                                          196,582         180,516
Allowance for loan losses                                            (2,976)         (3,110)
                                                               -------------  --------------
    Net loans receivable                                            193,606         177,406
Premises and equipment, net                                           9,552           9,009
Accrued interest receivable and other assets                          6,102           5,316
                                                               -----------------------------

  Total Assets                                                 $    321,997   $     298,764
                                                               =============================

LIABILITIES
Demand deposits
  Noninterest-bearing                                          $     21,711   $      19,858
  Interest-bearing                                                   43,765          37,781
Savings deposits                                                     52,412          56,245
Time deposits - under $100,000                                      115,565          98,326
Time deposits - $100,000 and over                                    24,584          23,330
                                                               -------------  --------------
    Total deposits                                                  258,037         235,540
Securities sold under agreements to repurchase                        4,685           5,788
Other borrowed funds                                                 31,499          30,599
Accrued expenses and other liabilities                                1,353           1,539
                                                               -------------  --------------
    Total Liabilities                                               295,574         273,466

SHAREHOLDERS' EQUITY
Common stock - $1 Par Value: 10,000,000 shares authorized;
  2,947,839 issued                                                    2,948           2,943
Additional paid in capital                                           20,094          19,660
Treasury Stock - 15,417 shares at cost                                 (153)              -
Shares Held By Deferred Compensation Plan -
 22,958 shares at cost                                                 (387)
Retained earnings                                                     7,343           6,543
Accumulated other comprehensive income, net of tax                   (3,422)         (3,848)
                                                               -------------  --------------
  Total Shareholders' Equity                                         26,423          25,298
                                                               -------------  --------------
  Total Liabilities and Shareholders' Equity                   $    321,997   $     298,764
                                                               =============  ==============
</TABLE>

        See accompanying notes to the consolidated financial statements


                                                                               3
<PAGE>   4

                              UNITED BANCORP, INC.
           CONDENSED CONSOLIDATED COMPREHENSIVE STATEMENTS OF INCOME


(IN THOUSANDS-EXCEPT PER SHARE AMOUNTS)

<TABLE>
<CAPTION>
                                                    THREE MONTHS ENDED         NINE MONTHS ENDED
                                                      SEPTEMBER 30,              SEPTEMBER 30,
                                                    2000         1999          2000          1999
                                                 ------------ ------------ -------------- ------------
<S>                                               <C>           <C>           <C>         <C>
Interest and dividend income
  Loans, including fees                          $     4,423  $     3,849  $      12,604  $    11,144
  Taxable securities                                   1,359        1,238          3,887        3,739
  Non-taxable securities                                 277          324            812          980
  Other interest and dividend income                      66           65            215          188
                                                 ------------ ------------ -------------- ------------
      Total interest and dividend income               6,125        5,476         17,518       16,051

Interest expense
  Deposits
    Demand                                               299          214            793          656
    Savings                                              282          383            836        1,146
    Time                                               2,131        1,458          5,997        4,392
  Other borrowings                                       558          437          1,348        1,035
                                                 ------------ ------------ -------------- ------------
      Total interest expense                           3,270        2,492          8,974        7,229

NET INTEREST INCOME                                    2,855        2,984          8,544        8,822

Provision for loan losses                                116          141            347          544
                                                 ------------ ------------ -------------- ------------

NET INTEREST INCOME AFTER PROVISION FOR
 LOAN LOSSES                                           2,739        2,843          8,197        8,278

Non-interest income
  Service charges on deposit accounts                    236          181            625          540
  Other income                                            95           89            365          415
                                                 ------------ ------------ -------------- ------------
      Total non-interest income                          331          270            990          955

Non-interest expense
  Salaries and employee benefits                       1,060        1,032          3,209        3,045
  Occupancy                                              329          334          1,044          974
  Other expenses                                         739          707          2,296        2,184
                                                 ------------ ------------ -------------- ------------
      Total non-interest expense                       2,128        2,073          6,549        6,203

INCOME BEFORE INCOME TAXES                               942        1,040          2,638        3,030
  Income tax expense                                     274          264            688          749
                                                 ------------ ------------ -------------- ------------

NET INCOME                                       $       668  $       776  $       1,950  $     2,281
                                                 ============ ============ ============== ============

Earnings per common share - Basic                $      0.23  $      0.26  $        0.66  $      0.77
Earnings per common share - Diluted              $      0.23  $      0.26  $        0.66  $      0.77
Dividends per common share                       $      0.13  $      0.12  $        0.39  $      0.37
</TABLE>

        See accompanying notes to the consolidated financial statements


                                                                               4
<PAGE>   5

                              UNITED BANCORP, INC.
           CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
                                   (UNAUDITED)

(IN THOUSANDS)

<TABLE>
<CAPTION>                                                                                               ACCUMULATED
                                                  ADDITIONAL                                              OTHER
                                         COMMON     PAID IN      TREASURY   RETAINED   COMPREHENSIVE   COMPREHENSIVE
                                         STOCK      CAPITAL       STOCK     EARNINGS      INCOME         INCOME        TOTAL
                                        -------- -------------- ---------- ---------- ---------------  ------------ ----------
<S>                                     <C>       <C>            <C>        <C>        <C>             <C>          <C>
BALANCE AT JANUARY 1, 1999              $ 2,800       $ 17,802    $     -    $  6,840                     $   (121)   $ 27,321
  Net income                                                                    2,281        $ 2,281                     2,281
  Proceeds and tax benefit from
    exercise of stock options                 3             21                                                              24
  Other comprehensive income (loss),
    net of tax:
        Cumulative effect change from
         transfer of securities from
         held to maturity to available
         for sale from adoption of
         SFAS No. 133                                                                            445           445         445
        Net change in unrealized
         gain/(loss) on securities
         available for sale                                                                   (3,256)       (3,256)     (3,256)
  Comprehensive income (loss)                                                                $  (530)
                                                                                      ===============
  Cash dividends - $0.37 per share                                      -      (1,093)                                  (1,093)
                                        -------- -------------- ---------- ----------                  ------------ ----------
BALANCE AT SEPTEMBER 30, 1999           $ 2,803       $ 17,823    $     -    $  8,028                     $ (2,932)   $ 25,722
                                        =======  ============== ========== ==========                  ============ ==========

BALANCE AT JANUARY 1, 2000              $ 2,943       $ 19,660    $     -    $  6,543                     $ (3,848)   $ 25,298
  Net income                                                                    1,950        $ 1,950                     1,950
  Stock issuance                              5             47                                                              52
  Proceeds and tax benefit from
    exercise of stock options                 -              -                                                               -
  Other comprehensive income (loss),
   net of tax:
        Net change in unrealized
         gain/(loss) on
         securities available for sale                                                           426           426         426
                                                                                      ---------------
       Comprehensive income                                                                  $ 2,376
                                                                                      ===============
  Recognition of shares held by deferred
    compensation plan - 22,958 at cost                     370        (370)
Shares purchased for deferred
    compensation plan                                       17         (17)
Treasury Stock - 15,417 shares at cost                                (153)                                               (153)
  Cash dividends - $0.39 per share                                             (1,150)                                  (1,150)
                                        -------- -------------- ---------- ----------                  ------------ ----------
BALANCE AT SEPTEMBER 30, 2000           $ 2,948       $ 20,094    $   (540)     7,343                     $ (3,422)   $ 26,423
                                        ======== ============== ========== ==========                  ============ ==========
</TABLE>


        See accompanying notes to the consolidated financial statements



                                                                               5
<PAGE>   6


                              UNITED BANCORP, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (UNAUDITED)

<TABLE>
<CAPTION>
(IN THOUSANDS)                                                           NINE MONTHS ENDED
                                                                           SEPTEMBER 30,
                                                                   2000                    1999
                                                            --------------------------------------------
<S>                                                               <C>                    <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income                                                  $             1,950     $             2,281
Adjustments to reconcile net income to net cash
    from operating activities
      Depreciation and amortization                                         650                     570
      Provision for loan losses                                             347                     544
      Deferred taxes                                                        (17)                   (172)
      Federal Home Loan Bank stock dividend                                (137)                    (83)
      Gain on sale/call of securities                                       (17)                      -
      (Accretion)/amortization of securities, net                             6                     122
      Gain on sale of loans                                                  (7)                    (53)
      Amortization of mortgage servicing rights                              33                      29
      Gain/loss on sale of assets                                             -                       9
      Net changes in accrued interest receivable and
       other assets                                                        (767)                   (889)
      Net changes in accrued expenses and other
      liabilities                                                          (284)                    207
                                                            --------------------    --------------------
      Net cash from operating activities                                  1,757                   2,565

CASH FLOWS FROM INVESTING ACTIVITIES
Securities available for sale
  Proceeds from sales                                                        17                       -
  Proceeds from maturities/calls                                          1,405                  16,584
  Purchases                                                              (6,999)                (19,077)
Securities held to maturity
  Proceeds from maturities/calls                                            179                       -
  Purchases                                                              (1,051)                 (3,961)
Net change in loans                                                     (16,719)                (13,003)
Net purchases of premises and equipment                                  (1,169)                 (1,705)
Proceeds from sale of assets                                                  -                     269
                                                            --------------------    --------------------
      Net cash from investing activities                                (24,337)                (20,893)

CASH FLOWS FROM FINANCING ACTIVITIES
Net change in deposits                                                   22,497                   7,065
Cash and cash equvalents received from deposit assumption,
   net of asset acquired                                                      -                       -
Net change in short-term borrowings                                         440                   3,336
Proceeds from long-term debt                                                  -                   3,693
Principal payments on long-term debt                                       (643)                   (714)
Proceeds from exercise of stock options                                       -                      24
Proceeds from stock issuance                                                 52                       -
Purchases of Treasury Stock                                                (153)
Cash dividends paid                                                      (1,150)                 (1,093)
                                                            --------------------    --------------------
      Net cash from financing activities                                 21,043                  12,311
                                                            --------------------    --------------------

Net change in cash and cash equivalents                                  (1,537)                 (6,017)

Cash and cash equivalents at beginning of year                           11,877                  16,492
                                                            --------------------    --------------------

Cash and cash equivalents at end of period                  $            10,340     $            10,475
                                                            ====================    ====================

     Interest paid                                          $             8,831     $             7,276
     Income taxes paid                                                      724                     559

Non-cash transfer from loans to other real estate
 and repossessions                                          $               172     $               244
Non-cash transfer of securities from held to maturity
 to available  for sale upon adoption of SFAS No. 133                         -                  16,005
</TABLE>

        See accompanying notes to the consolidated financial statements


                                                                               6
<PAGE>   7

                              UNITED BANCORP, INC.
            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     These interim consolidated financial statements are prepared without audit
and reflect all adjustments which, in the opinion of management, are necessary
to present fairly the financial position of United Bancorp, Inc. ("Company") at
September 30, 2000, and its results of operations and cash flows for the periods
presented. All such adjustments are normal and recurring in nature. The
accompanying condensed consolidated financial statements have been prepared in
accordance with the instructions of Form 10-Q and, therefore, do not purport to
contain all the necessary financial disclosures required by generally accepted
accounting principles that might otherwise be necessary in the circumstances and
should be read in conjunction with the consolidated financial statements, and
related notes thereto, of the Company for the year ended December 31, 1999
included in its annual report. Reference is made to the accounting policies of
the Company described in the notes to the consolidated financial statements
contained in its 1999 Annual Report to Shareholders. The Company has
consistently followed these policies in preparing this Form 10-Q.

PRINCIPLES OF CONSOLIDATION:
     The consolidated financial statements include the accounts of the Company
and its wholly-owned subsidiaries, ("Banks") The Citizens Savings Bank, Martins
Ferry, Ohio ("CITIZENS") and The Community Bank, Lancaster, Ohio ("COMMUNITY").
All significant intercompany transactions and balances have been eliminated in
consolidation.

NATURE OF OPERATIONS:
     The Company's and Banks' revenues, operating income and assets are
primarily from the banking industry. Loan customers are mainly located in
Athens, Belmont, Carroll, Fairfield, Harrison, Hocking, Jefferson, and
Tuscarawas Counties and the surrounding localities in northeastern, eastern,
southeastern, and central Ohio and include a wide range of individuals, business
and other organizations. A major portion of loans are secured by various forms
of collateral including real estate, business assets, consumer property and
other items. Commercial loans are expected to be repaid from cash flows of the
business. CITIZENS conducts its business through its main office in Martins
Ferry, Ohio and nine branches in Bridgeport, Colerain, Dellroy, Dover, Jewett,
New Philadelphia, St. Clairsville, Sherrodsville, and Strasburg, Ohio. COMMUNITY
conducts its business through its main office in Lancaster and four branches in
Lancaster, Glouster, Nelsonville and Amesville, Ohio. All of the Company's
banking operations are considered by Management to be aggregated in one
reportable operating segment.

USE OF  ESTIMATES:
     To prepare financial statements in conformity with generally accepted
accounting principles, management makes estimates and assumptions based on
available information. These estimates and assumptions affect the amounts
reported in the financial statements and the disclosures provided and future
results could differ. The allowance for loan losses, fair values of financial
instruments and status of contingencies are particularly subject to change.


                                                                               7
<PAGE>   8

                              UNITED BANCORP, INC.
            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

INCOME TAXES:
     Income tax expense is based on the effective tax rate expected to be
applicable for the entire year. Income tax expense is the total of the current
year income tax due or refundable and the change in deferred tax assets and
liabilities. Deferred tax assets and liabilities are the expected future tax
consequences of temporary differences between the carrying amounts and tax bases
of assets and liabilities computed using enacted tax rates. A valuation
allowance, if needed, reduces deferred tax assets to the amount expected to be
realized.

STOCK DIVIDENDS:
     Dividends issued in stock are reported by transferring the market value of
the stock issued from retained earnings to common stock and additional paid-in
capital. All per share data has been retroactively adjusted for the 5% stock
dividends distributed in 1999 and 1998.

EARNINGS AND DIVIDENDS PER SHARE:
     Basic earnings per common share ("EPS") is net income divided by the
weighted-average number of shares outstanding during the period. Diluted EPS
includes the dilutive effect of additional potential common shares issuable
under stock options. Earnings and dividends per share are restated for all stock
dividends through the date of issuance of the financial statements.

COMPREHENSIVE INCOME:
     Comprehensive income consists of net income and other comprehensive income.
Other  comprehensive  income includes  unrealized gains and losses on securities
available for sale which is also  recognized as a separate  component of equity.
Other comprehensive income components net of related taxes are as follows:

<TABLE>
<CAPTION>
                                                                    THREE MONTHS ENDED             NINE MONTHS ENDED
                                                                      SEPTEMBER 30,                   SEPTEMBER 30,
                   (IN THOUSANDS)                               2000             1999             2000            1999
                                                           ----------------  --------------  ---------------  --------------
<S>                                                        <C>               <C>              <C>             <C>
Other comprehensive income (loss):
      Unrealized holding gains (losses) on available
        for sale securities arising during period                      879            (746)             660          (4,932)
      Cumulative effect adjustment for the transfer
        of securities from held to maturity to
        available for sale from adoption of
        SFAS No. 133                                                                     -                              674
      Reclassification adjustment for (gains) and
        losses later recognized in income                                -               -              (17)              -
                                                           ----------------  --------------  ---------------  --------------
                                                                       879            (746)             643          (4,258)

Tax effect                                                            (299)            254             (217)          1,447
                                                           ----------------  --------------  ---------------  --------------

Other comprehensive income (loss)                          $           580   $        (492)  $          426   $      (2,811)
                                                           ================  ==============  ===============  ==============
</TABLE>


                                                                               8


<PAGE>   9
                              UNITED BANCORP, INC.
            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


2.   SECURITIES:

         Securities were as follows:

<TABLE>
<CAPTION>
                                                                   GROSS           GROSS
                (IN THOUSANDS)                   AMORTIZED      UNREALIZED      UNREALIZED       ESTIMATED
                                                   COST            GAINS          LOSSES        FAIR VALUE
                                               --------------  --------------  --------------  --------------
<S>                                             <C>             <C>              <C>             <C>
AVAILABLE FOR SALE - SEPTEMBER 30, 2000
US Agency obligations                          $      77,827   $           6   $      (5,290)  $      72,543
State and Municipal obligations                       13,809             175             (48)         13,936
Mortgage-backed securities                             1,955               -             (38)          1,917
Other securities                                       3,316              10               -           3,326
                                               --------------  --------------  --------------  --------------
                                               $      96,907   $         191   $      (5,376)  $      91,722
                                               ==============  ==============  ==============  ==============

AVAILABLE FOR SALE - DECEMBER 31, 1999
US Agency obligations                          $      71,820   $           -   $      (5,869)  $      65,951
State and Municipal obligations                       14,112             203            (128)         14,187
Mortgage-backed obligations                            2,079               -             (61)          2,018
Other securities                                       3,179              27               -           3,206
                                               --------------  --------------  --------------  --------------
                                               $      91,190   $         230   $      (6,058)  $      85,362
                                               ==============  ==============  ==============  ==============

HELD TO MATURITY - SEPTEMBER 30, 2000
US Agency obligations                          $       2,495   $           -   $         (68)  $       2,427
State and Municipal obligations                        8,180             128             (94)          8,214
                                               --------------  --------------  --------------  --------------
                                               $      10,675   $         128   $        (162)  $      10,641
                                               ==============  ==============  ==============  ==============

HELD TO MATURITY - DECEMBER 31, 1999
US Agency obligations                          $       2,494   $           -   $         (84)  $       2,410
State and Municipal obligations                        7,300              49            (193)          7,156
                                               --------------  --------------  --------------  --------------
                                               $       9,794   $          49   $        (277)  $       9,566
                                               ==============  ==============  ==============  ==============
</TABLE>


Sales of securities available for sale were as follows:


<TABLE>
<CAPTION>
(IN THOUSANDS)                                      THREE MONTHS ENDED               NINE MONTHS ENDED
                                                        SEPTEMBER 30,                   SEPTEMBER 30,
                                                   2000            1999            2000            1999
                                               --------------  --------------  --------------  --------------
<S>                                            <C>             <C>             <C>             <C>
Proceeds                                       $           -   $           -   $          17   $           -
Gross gains                                                -               -              20               -
Gross losses                                               -               -               3               -
</TABLE>



                                                                               9
<PAGE>   10

                              UNITED BANCORP, INC.
            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


2.   SECURITIES: (CONTINUED)

         Contractual maturities of securities at September 30, 2000 were as
follows:

<TABLE>
<CAPTION>

AVAILABLE FOR SALE (IN THOUSANDS)                  AMORTIZED          ESTIMATED
                                                      COST           FAIR VALUE
                                                -----------------  ----------------
<S>                                             <C>               <C>
US Agency obligations
  Under 1 Year                                  $          1,000   $           999
  1 - 5 Years                                              2,600             2,544
  5 - 10 Years                                            35,471            33,924
 Over 10 Years                                            38,756            35,076
                                                -----------------  ----------------
  Total                                                   77,827            72,543
                                                -----------------  ----------------
State and municipal obligations
  Under 1 Year                                               821               823
  1 - 5 Years                                             10,210            10,363
  5 - 10 Years                                             1,114             1,105
 Over 10 Years                                             1,664             1,645
                                                -----------------  ----------------
  Total                                                   13,809            13,936
                                                -----------------  ----------------
Mortgage Backed securities
  5 - 10 Years                                               203               196
  Over 10 Years                                            1,752             1,721
                                                -----------------  ----------------
   Total                                                   1,955             1,917
                                                -----------------  ----------------
Other investments
  Equity securities                                        3,316             3,326
                                                -----------------  ----------------

Total securities available for sale             $         96,907   $        91,722
                                                =================  ================

HELD TO MATURITY (IN THOUSANDS)

US Agency obligations
  1 - 5 Years                                   $          1,000   $           990
  5 - 10 Years                                               496               488
  Over 10 Years                                              999               949
                                                -----------------  ----------------
  Total                                                    2,495             2,427
                                                -----------------  ----------------
State and municipal obligations
  1 - 5 Years                                              1,982             2,005
  5 - 10 Years                                             3,517             3,541
  Over 10 Years                                            2,681             2,668
                                                -----------------  ----------------
  Total                                                    8,180             8,214
                                                -----------------  ----------------
Total securities held to maturity               $         10,675   $        10,641
                                                =================  ================
</TABLE>


Securities with a carrying value of approximately $48,694,000 at September 30,
2000 and $45,332,000 at December 31, 1999 were pledged to secure public
deposits, repurchase agreements and other liabilities as required or permitted
by law.


                                                                              10
<PAGE>   11

                              UNITED BANCORP, INC.
            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


3.   ALLOWANCE FOR LOAN LOSSES

         The activity in the allowance for loan losses was as follows:

<TABLE>
<CAPTION>
                                                                 THREE MONTHS ENDED              NINE MONTHS ENDED
                                                                  SEPTEMBER 30,                    SEPTEMBER 30,
                    (IN THOUSANDS)                           2000             1999             2000              1999
                                                        ---------------  ---------------  ----------------  ---------------
<S>                                                     <C>              <C>              <C>               <C>
Beginning Balance                                       $        3,088   $        2,935   $         3,110   $        3,033
  Provision charged to operating expense                           116              141               347              544
  Loans charged-off                                               (299)            (164)             (674)            (764)
  Recoveries                                                        71              109               193              208
                                                        ---------------  ---------------  ----------------  ---------------
Ending Balance                                          $        2,976   $        3,021   $         2,976   $        3,021
                                                        ===============  ===============  ================  ===============
</TABLE>

Non-performing loans were as follows:

<TABLE>
<CAPTION>
                                                        SEPTEMBER 30,     DECEMBER 31,
                    (IN THOUSANDS)                           2000             1999
                                                        ---------------  ---------------
<S>                                                     <C>              <C>
Loans past due over 90 days still on accrual            $          194   $           36
Nonaccrual Loans                                                   958              987
</TABLE>

     Loans considered impaired under the provisions of SFAS No. 114 were not
material at September 30, 2000 and December 31, 1999. Nonperforming loans
include all impaired loans and smaller balance homogeneous loans, such as
residential mortgage and consumer loans that are collectively excluded for
impairment.

4.   COMMITMENTS, OFF-BALANCE SHEET RISK AND CONTINGENCIES

     There are various contingent liabilities not reflected within the financial
statements, including claims and legal actions arising in the ordinary course of
business. In the opinion of management, after consultation with legal counsel,
the ultimate disposition of these matters is not expected to have a material
effect on the Company's financial condition or results of operations.

     Some financial instruments are used in the normal course of business to
meet the financing needs of customers. These financial instruments include
commitments to extend credit, standby letters of credit and financial
guarantees. These involve, to varying degrees, credit and interest-rate risk in
excess of the amounts reported in the financial statements.

     Exposure to credit loss if the other party does not perform is represented
by the contractual amount for commitments to extend credit, standby letters of
credit and financial guarantees written. The same credit policies are used for
commitments and conditional obligations as are used for loans. The amount of
collateral obtained, if deemed necessary, upon extension of credit is based on
management's credit evaluation. Collateral varies, but may include accounts
receivable, inventory, property, equipment, income-producing commercial
properties, residential real estate and consumer assets.



                                                                              11
<PAGE>   12

                              UNITED BANCORP, INC.
            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


4.   COMMITMENTS, OFF-BALANCE SHEET RISK AND CONTINGENCIES (CONTINUED)

     Commitments to extend credit are agreements to lend to a customer as long
as there is no violation of any condition established in the commitment.
Commitments generally have fixed expiration dates or other termination clauses
and may require payment of a fee. Since many of the commitments are expected to
expire without being used, total commitments do not necessarily represent future
cash requirements. Standby letters of credit and financial guarantees written
are conditional commitments to guarantee a customer's performance to a third
party.

     A summary of the notional or contractual amounts of financial instruments
with off-balance sheet risk at September 30, 2000 and December 31, 1999 follows:

<TABLE>
<CAPTION>
                                                        SEPTEMBER 30,     DECEMBER 31,
                    (IN THOUSANDS)                           2000             1999
                                                        ---------------  ---------------
<S>                                                     <C>              <C>
Commitments to extend credit                            $       19,051   $       17,131
Credit card and ready reserve lines                              1,231            1,178
Standby letters of credit                                          373              446
</TABLE>

     At September 30, 2000, and included above, commitments to make fixed-rate
loans totaled $4,655,267 with the interest rates on those fixed-rate commitments
ranging from 7.50% to 10.00%. At December 31, 1999, commitments to make fixed
rate loans totaled $2,363,000 with interest rates on those fixed-rate
commitments ranging from 7.50% to 10.00%.

     At September 30, 2000 and December 31, 1999, reserves of $1,191,000 and
$1,241,000 were required as deposits with the Federal Reserve or as cash on
hand. These reserves do not earn interest.

5.   EARNINGS PER SHARE

         The factors used in the earnings per share computation were as follows:

<TABLE>
<CAPTION>
                                                                       THREE MONTHS ENDED                    NINE MONTHS ENDED
(IN THOUSANDS-EXCEPT FOR PER SHARE INFORMATION)                          SEPTEMBER 30,                       SEPTEMBER 30,
                                                                    2000               1999               2000               1999
                                                                   -------------      -----------       ------------      ---------
<S>                                                             <C>                  <C>                <C>               <C>
BASIC
     Net income                                                    $       668        $       776       $      1,950      $   2,281
                                                                   ===========        ===========       ============      =========
     Weighted average common shares outstanding                      2,942,002          2,943,068          2,942,646      2,942,160
                                                                   ===========        ===========       ============      =========
     Basic earnings per common share                               $      0.23        $      0.26       $       0.66      $    0.77
                                                                   ===========        ===========       ============      =========
DILUTED
     Net income                                                    $       668        $     $ 776       $      1,950          2,281
                                                                   ===========        ===========       ============      =========
     Weighted average common shares outstanding for
           basic earnings per common share                           2,942,002          2,943,068          2,942,646      2,942,160
     Add:  Dilutive effects of assumed exercised of stock
           options                                                           -             19,841              2,679         23,779
                                                                   -----------        -----------       ------------      ---------
     Average shares and dilutive potential common shares             2,942,002          2,962,909          2,945,325      2,965,939
                                                                   ===========        ===========       ============      =========

     Average shares and dilutive potential common shares           $      0.23        $      0.26       $       0.66      $    0.77
                                                                   ===========        ===========       ============      =========
Number of stock options not considered in computing
diluted earnings per share due to antidilutive nature                   74,560             18,192             19,756          7,167
</TABLE>



                                                                              12
<PAGE>   13

                              UNITED BANCORP, INC.
            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

5.   EARNINGS PER SHARE (CONTINUED)

     During the quarter ending September 30, 2000, there were 13,340 options
forfeited due to the death of an executive officer.





                                                                              13
<PAGE>   14


                              UNITED BANCORP, INC.
        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                             RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

         The following discusses the financial condition of the Company as of
    September 30, 2000, as compared to December 31, 1999 and the results of
    operations for the three and nine months ended September 30, 2000 compared
    to the same periods in 1999. This discussion should be read in conjunction
    with the interim condensed consolidated financial statements and related
    footnotes included herein.

    FORWARD-LOOKING STATEMENTS

         When used in this document, the words or phrases "will likely result,"
    "are expected to," "will continue," " is anticipated," "estimated,"
    "projected" or similar expressions are intended to identify "forward looking
    statements" within the meaning of the Private Securities Litigation Reform
    Act of 1995. Such statements are subject to certain risks and uncertainties
    including changes in economic conditions in the Banks' market areas, changes
    in policies by regulatory agencies, fluctuations in interest rates, demand
    for loans in the Banks' market areas and competition, that could cause
    actual results to differ materially from historical earnings and those
    presently anticipated or projected. Factors listed above could affect the
    Company's financial performance and could cause the Company's actual results
    for future periods to differ materially from any statements expressed with
    respect to future periods.

         The Company does not undertake, and specifically disclaims any
    obligation, to publicly revise any forward-looking statements to reflect
    events or circumstances after the date such statements were made or to
    reflect the occurrence of anticipated or unanticipated events.

         The following brief history of the Company and its subsidiary growth
    and development highlights the continuing commitment to maintaining a
    presence as a local "Hometown" community bank serving several diverse market
    areas.

         *      1902    Original banking charter granted for The German Savings
                        Bank (later changed to The Citizens Savings Bank).
         *      1974    Construction of a full-service branch banking facility 6
                        miles west in Colerain, Ohio.
         *      1978    Construction of a full-service  branch banking facility
                        2 miles south in Bridgeport, Ohio.
         *      1980    Construction of a limited-service auto-teller banking
                        location in Martins Ferry, Ohio.
         *      1983    Creation of United Bancorp, Inc. as a single-bank
                        holding company through acquisition of 100% of the
                        voting stock of The Citizens Savings Bank of Martins
                        Ferry, Ohio ("CITIZENS"). Also, began operation of
                        Automated Teller Machine ("ATM") in Aetnaville, Ohio.
         *      1984    CITIZENS opened a newly constructed 21,500 square foot
                        main-office facility in Martins Ferry, Ohio, adjacent to
                        the auto-teller facility built in 1980.
         *      1986    United Bancorp, Inc. became a multi-bank holding company
                        through the acquisition of 100% of the voting stock of
                        The Citizens-State Bank of Strasburg, Strasburg, Ohio,
                        merged into CITIZENS in 1999.
         *      1990    CITIZENS converted from third-party data processing to
                        in-house data processing. CITIZENS constructed a
                        full-service branch bank 6 miles south of Strasburg in
                        Dover, Ohio.
         *      1992    CITIZENS acquired two branch bank locations in New
                        Philadelphia and Sherrodsville, Ohio.



                                                                              14
<PAGE>   15
                              UNITED BANCORP, INC.
        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                             RESULTS OF OPERATIONS



     *      1993    CITIZENS relocated Data Processing, Accounting and
                    Bookkeeping to a renovated Operations Center across from the
                    main office in Martins Ferry, Ohio.
     *      1994    CITIZENS purchased a branch bank in Dellroy, Ohio.
     *      1996    CITIZENS converted to check imaging and optical character
                    recognition for data processing.
     *      1997    CITIZENS opened a full-service Retail Banking Center inside
                    Riesbeck's Food Markets, Inc.'s St. Clairsville, Ohio store.
                    Additionally, CITIZENS introduced a Secondary Market Real
                    Estate Mortgage Program available for all locations and
                    introduced a MasterCard(R) Check Card to the local market
                    area.
     *      1998    CITIZENS increased ATM network by four cash dispenser
                    machines in various Riesbecks' Food Markets.
     *      1998    Effective July 7, 1998, the acquisition of Southern Ohio
                    Community Bancorporation, Inc. was completed and The
                    Community Bank, Glouster, Ohio ("COMMUNITY") was added as a
                    separate banking charter to the Company.
     *      1999    January 28, 1999 CITIZENS acquired a full service banking
                    facility in Jewett, Ohio
     *      1999    March 1999 COMMUNITY opened a Loan Production Office in
                    Lancaster, Ohio.
     *      1999    CITIZENS established a full service brokerage division to be
                    known as Brokerage United with securities provided through
                    Raymond James Financial Services, Inc., member NASD/SIPC.
     *      1999    COMMUNITY moved their main office to Lancaster,  Ohio.
     *      2000    COMMUNITY opened a new branch in Lancaster and their auto
                    teller for the main office.

ANALYSIS OF FINANCIAL CONDITION

EARNING ASSETS - LOANS

     At September 30, 2000, gross loans were $196,582,000 compared to
$180,516,000 at year-end 1999, an increase of 8.9%. The increase in total
outstanding loans was the result of growth in all loan categories with
particular growth in the commercial and installment portfolios. COMMUNITY'S
outstanding loans increased 25.7% or approximately $9.5 million from December
31, 1999. Management anticipates the expansion plans of COMMUNITY into the
Lancaster, OH market. CITIZENS' also experienced sound growth as gross loans
increased $6.5 million, or 4.5%.

     Installment loans, with continued emphasis placed on the indirect
automobile lending market, stayed relatively constant at 29.3% of total loans at
September 30, 2000 compared to 29.6% at year-end 1999. The indirect lending type
of financing carries somewhat more risk than real estate lending, however, it
also provides for higher yields. The targeted lending areas encompass four
metropolitan areas, minimizing the risk to changes in economic conditions in the
communities housing the Company's 17 branch locations. Management has worked to
expand the lending market of COMMUNITY into the Lancaster, Ohio area which
provided an increase of installment loans of $6,061,000 from December 31, 1999.
CITIZENS actually experienced a 5.2% or $1,923,000 decline in installment loans.
Even with the decline at CITIZENS, the installment loan portfolio for the
Company increased 7.8% since December 31, 1999.

     Commercial and commercial real estate loans comprised 42.9% of total loans
at September 30, 2000 compared to 42.0% at December 31, 1999. Commercial and
commercial real estate loans have increased $8,502,000 or 11.2% since December
31, 1999. CITIZENS



                                                                              15
<PAGE>   16

                              UNITED BANCORP, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS

contributed $7,168,000 to the overall increase. The Company has originated and
purchased participations in loans from other banks for out-of-area commercial
and commercial real estate loans to benefit from consistent economic growth
outside the Company's primary market area. The majority of these loans are
secured by real estate holdings comprised of hotels, motels and churches located
in various geographic locations, including Columbus and the Akron-Canton, Ohio
metropolitan areas. Out-of-area loans at September 30, 2000 were 7.3% of total
loans and 17.0% of total commercial and commercial real estate loans compared to
8.5% and 20.3% at year-end 1999.

     Real estate loans were 27.9% of total loans at September 30, 2000 compared
to 28.4% at year-end 1999. Real estate loans increased 6.7% since December 31,
1999. Our real estate loans are not growing as quickly as commercial, commercial
real estate, and installment; however; the slight increase shows the continued
shift in customer preference to adjustable rate real estate loans as interest
rates trended higher. Adjustable rate products typically have lower introductory
rates as compared to that of a fixed rate mortgage. The Company primarily sells
its fixed rate mortgages on the secondary market and retains the adjustable rate
mortgages for the portfolio.

     The allowance for loan losses represents the amount which management and
the Board of Directors estimates is adequate to provide for probable losses
inherent in the loan portfolio. The allowance balance and the provision charged
to expense are reviewed by management and the Board of Directors monthly using a
risk grading model that considers borrowers past due experience, current
financial condition, collateral value and various other circumstances that are
subject to change over time. Management believes the current balance of the
allowance for loan losses is adequate to absorb probable incurred credit losses
associated with the loan portfolio. Net charge-offs for the nine months ended
September 30, 2000 were approximately $483,000, or 15.5%, of the beginning
balance in the allowance for loan losses compared to $556,000, or 18.3%, of the
beginning balance for loan losses for the nine months ended September 30, 1999.
The decrease can be attributed to Management's continued focus on improving
underwriting standards..

EARNING ASSETS - SECURITIES AND FEDERAL FUNDS SOLD

     The securities portfolio is comprised of U.S. Government agency-backed
securities, tax-exempt obligations of states and political subdivisions and
certain other investments. The Company does not hold any collateralized
mortgage-backed securities, other than those issued by U.S. government agencies,
or derivative securities. The quality rating of obligations of state and
political subdivisions within Ohio is no less than Aaa, Aa or A, with all
out-of-state bonds rated at AAA. Board policy permits the purchase of certain
non-rated bonds of local schools, townships and municipalities, based on their
estimated levels of credit risk. Securities available for sale at September 30,
2000 increased approximately $6,360,000, or 7.5% from year-end 1999 totals.
Securities held to maturity at September 30, 2000 increased approximately
$881,000 or 9.0% compared to year-end 1999 totals.

     Short-term federal funds sold are used to manage interest rate sensitivity
and to meet liquidity needs of the Company. At September 30, 2000, the Company
had no federal funds sold compared to $780,000 at year-end 1999.




                                                                              16
<PAGE>   17

                              UNITED BANCORP, INC.
        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                             RESULTS OF OPERATIONS

SOURCES OF FUNDS - DEPOSITS

     The Company's primary source of funds is core deposits from retail and
business customers. These core deposits include all categories of
interest-bearing and noninterest-bearing deposits, excluding certificates of
deposit greater than $100,000. For the period ended September 30, 2000, total
core deposits increased approximately $15.8 million primarily from an increase
of demand deposits and time deposits under $100,000 of $7.8 million and $7.95
million, respectively. This was partly offset by a decrease in savings deposits
of $3.8 million. During the first nine months of 2000, COMMUNITY has experienced
an increase of time deposits under $100,000 of $7.3 million. This increase is
primarily the result of management's expansion plans in Lancaster, Ohio and
paying higher interest rates to attract customers.

     The Company has a strong deposit base from public agencies, including local
school districts, city and township municipalities, public works facilities and
others that may tend to be more seasonal in nature resulting from the receipt
and disbursement of state and federal grants. These entities have maintained
fairly static balances with the Company due to various funding and disbursement
timeframes.

     Certificates of deposit greater than $100,000 are not considered part of
core deposits and as such are used to balance rate sensitivity as a tool of
funds management. At September 30, 2000, certificates of deposit greater than
$100,000 increased approximately $6.7 million, or 34.0% from year-end 1999
totals. Again, approximately $9.3 million of the increase was due to the
COMMUNITY expansion.

SOURCES OF FUNDS - SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER
BORROWINGS

     Other interest-bearing liabilities include securities sold under agreements
to repurchase, sweep accounts, federal funds purchased, Treasury, Tax & Loan
notes payable and Federal Home Loan Bank ("FHLB") advances. In the first nine
months of 2000, the Company continued to utilize the FHLB programs to manage
interest rate risk and liquidity positions. The majority of the Company's
repurchase agreement are with local school districts, city and county
government. Total other borrowings increased approximately $0.8 million, or 2.9%
from year-end 1999 totals. With the probable occurrence of higher interest rates
in the latter half of 2000, Management determined that the issuance of fixed
rate certificate of deposits rather than floating rate FHLB advances would help
support the Company's net interest margin as short term rates increase.

RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000

NET INCOME

     Basic earnings per share for the nine months ended September 30, 2000 was
$0.66, compared with $0.77 for the nine months ended September 30, 1999. Net
income decreased $331,000 for nine months ended September 30, 2000, compared to
the same period in 1999. On



                                                                              17
<PAGE>   18

                              UNITED BANCORP, INC.
        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                             RESULTS OF OPERATIONS

an annualized basis, Return on Average Assets (ROA) was 0.84% and Return on
Average Equity (ROE) was 10.13% compared to ROA of 1.06% and ROE of 11.47% for
the nine months ended September 30, 1999.

NET INTEREST INCOME

     Net interest income, by definition, is the difference between interest
income generated on interest-earning assets and the interest expense incurred on
interest-bearing liabilities. Various factors contribute to changes in net
interest income, including volumes, interest rates and the composition or mix of
interest-earning assets in relation to interest-bearing liabilities. Net
interest income decreased 3.2% for the nine months ended September 30, 2000
compared to the same period in 1999.

     Total interest income for the nine months ended September 30, 2000 was
$17,518,000 compared to $16,051,000 for the same period in 1999. Total interest
income increased $1,467,000, or 9.1%. The increase can be attributed to the
overall growth in the Company's interest-bearing assets, and an increase in the
interest rate environment.

     Total interest expense for the nine months ended September 30, 2000 when
compared to the same nine months period ended September 30, 1999, increased
24.14% or $1,745,000. The Company has experienced an increase in interest
expense due to an increased use of time deposits to fund loan growth and an
overall increase of rates on all deposit products to remain competitive in the
market.

PROVISION FOR LOAN LOSSES

     The provision for loan losses is an operating expense recorded to maintain
the related balance sheet allowance for loan losses at an amount considered
adequate to cover probable losses associated with the loan portfolio.

     The total provision for loan losses was $347,000 for the nine months ended
September 30, 2000 compared to $544,000 for the same period in 1999. Management
decreased the provision in 2000 due to an anticipated decrease in net
charge-offs for the fiscal year. This decrease is a result of Management's
commitment to improve the portfolio's credit quality.

NONINTEREST INCOME

     Total noninterest income is made up of bank related fees and service
charges, as well as other income producing services provided, sale of secondary
market loans, ATM income, early redemption penalties for certificates of
deposits, safe deposit rental income and other miscellaneous items. Noninterest
income for the nine months ended September 30, 2000 was $990,000 compared to
$955,000 for the same nine-month period ended September 30, 1999. For the nine
months ended September 30, 2000 compared to the same period in 1999, noninterest
income increased approximately 3.7%. The expanded customer base as a result of
the COMMUNITY expansion and management's focus on updating our fee structures
contributed to the increase.



                                                                              18
<PAGE>   19

                              UNITED BANCORP, INC.
        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                             RESULTS OF OPERATIONS


NONINTEREST EXPENSE

     Noninterest expense for the nine months ended September 30, 2000 increased
5.6% over the nine months ended September 30, 1999. Expansion costs were
incurred in the first quarter of 2000 related to COMMUNITY'S opening of a new
headquarters, an adjacent limited service drive-thru, and a full service banking
center in Lancaster, Ohio. Also, additional staffing, advertising and occupancy
expenses were added to the COMMUNITY'S cost structure as a result of this
expansion.

RESULTS OF OPERATIONS FOR THREE MONTHS ENDED SEPTEMBER 30, 2000

NET INCOME

     Basic earnings per share for the three months ended September 30, 2000 was
$0.23, compared with $0.26 for the three months ended September 30, 1999. Net
income decreased $108,000 for three months ended September 30, 2000, compared to
the same period in 1999. On an annualized basis, Return on Average Assets (ROA)
was 0.86% and Return on Average Equity (ROE) was 10.41% compared to ROA of 1.08%
and ROE of 11.70% for the three months ended September 30, 1999.

NET INTEREST INCOME

     Net interest income, by definition, is the difference between interest
income generated on interest-earning assets and the interest expense incurred on
interest-bearing liabilities. Various factors contribute to changes in net
interest income, including volumes, interest rates and the composition or mix of
interest-earning assets in relation to interest-bearing liabilities. Net
interest income decreased 4.3% for the three months ended September 30, 2000
compared to the same period in 1999. Management anticipates the short-term
impact to continue over the next several quarters if short term rates continue
to rise at such a rapid pace.

     Total interest income for the three months ended September 30, 2000 was
$6,125,000 compared to $5,476,000 for the same period in 1999. Total interest
income increased $649,000, or 11.85%. The increase can be attributed to the
overall growth in the Company's interest-bearing assets, and in increase in the
interest rate environment.

     Total interest expense for the three months ended September 30, 2000 when
compared to the same three months period ended September 30, 1999, increased
31.2%, or $778,000. The Company has experienced an increase in interest expense
due to an increase use of time deposits to fund loan growth and an overall
increase of rates on all deposit products to remain competitive in the market.

PROVISION FOR LOAN LOSSES

     The provision for loan losses is an operating expense recorded to maintain
the related balance sheet allowance for loan losses at an amount considered
adequate to cover probable losses associated with the loan portfolio.



                                                                              19
<PAGE>   20

                              UNITED BANCORP, INC.
        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                             RESULTS OF OPERATIONS

     The total provision for loan losses was $115,000 for the three months ended
September 30, 2000 compared to $141,000 for the same period in 1999. Management
decreased the provision in 2000 due to an anticipated decrease in net
charge-offs for the fiscal year. This decrease is a result of Management's
commitment to improve the portfolio's credit quality.

NONINTEREST INCOME

     Total noninterest income is made up of bank related fees and service
charges, as well as other income producing services provided, sale of secondary
market loans, ATM income, early redemption penalties for certificates of
deposits, safe deposit rental income and other miscellaneous items. Noninterest
income for the three months ended September 30, 2000 was $331,000 compared to
$270,000 for the same three months period ended September 30, 1999, an increase
of approximately 22.6%. The increase in noninterest income can be attributed to
an increase in service charge income. The Company has focused on increasing its
service charges fees when deemed appropriate with the local competition. Also,
as previously discussed, with the growth of the COMMUNITY franchise, additional
service charge income was added as the customer base was expanded.

NONINTEREST EXPENSE

     Noninterest expense for the three months ended September 30, 2000 increased
$55,000 or 2.7% over the three months ended September 30, 1999. Salary expense
increased approximately $28,000 or 2.7% for the three months ended September 30,
2000.

CAPITAL RESOURCES

     Internal capital growth, through the retention of earnings, is the primary
means of maintaining capital adequacy for the Company. Shareholders' equity at
September 30, 2000 was $26,423,000 compared to $25,298,000 at December 31, 1999,
a 4.4% increase. Total shareholders' equity in relation to total assets was
8.21% at September 30, 2000 and 8.5% at December 31, 1999.

     During the quarter ended September 30, 2000, the Company initiated a Stock
Buyback Program. The Stock Buy Back Program authorizes Management to repurchase
up to 10% of the Company's common stock in the open market. Total shares
purchased under the plan as of September 30, 2000 totaled 15,417 with a capital
expenditure of approximately $153,000.

     The Company has a Dividend Reinvestment Plan ("The Plan") for shareholders
under which the Company's common stock will be purchased by the Plan for
participants with automatically reinvested dividends. The Plan does not
represent a change in the Company's dividend policy or a guarantee of future
dividends.

     The Company maintains a deferred compensation plan for its Directors. The
plan permits the Directors to defer into a Rabbi Trust all or a portion of their
director fees. The plan is being accounted for under the provisions of EITF
97-14.



                                                                              20
<PAGE>   21

                              UNITED BANCORP, INC.
        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                             RESULTS OF OPERATIONS

         The Company and Banks are subject to regulatory capital requirements
    administered by federal banking agencies. Capital adequacy guidelines and
    prompt corrective action regulations involve quantitative measures of
    assets, liabilities and certain off-balance sheet items calculated under
    regulatory accounting practices. Capital amounts and classifications are
    also subject to qualitative judgments by regulators about components, risk
    weightings and other factors and the regulators can lower classifications in
    certain cases. Failure to meet various capital requirements can initiate
    regulatory action that could have a direct material effect on the Banks'
    operations.

         The prompt corrective action regulations provide five classifications,
    including well capitalized, adequately capitalized, undercapitalized,
    significantly undercapitalized and critically undercapitalized, although
    these terms are not used to represent overall financial condition. If
    adequately capitalized, regulatory approval is required to accept brokered
    deposits. If undercapitalized, capital distributions are limited, as is
    asset growth and expansion and plans for capital restoration are required.

         The minimum requirements are:

<TABLE>
<CAPTION>

                           TOTAL         TIER 1       TIER 1
                         CAPITAL TO    CAPITAL TO   CAPITAL TO
                       RISK-WEIGHTED  RISK-WEIGHTED   AVERAGE
                           ASSETS        ASSETS       ASSETS
                       -------------  ------------- ----------
<S>                    <C>            <C>           <C>
Well capitalized              10.00%         6.00%      5.00%
Adequately capitalized         8.00%         4.00%      4.00%
Undercapitalized               6.00%         3.00%      3.00%
</TABLE>

         The following table illustrates the Company's risk-weighted capital
    ratios at September 30, 2000:

         CAPITAL RESOURCES

<TABLE>
<CAPTION>
                                                   SEPTEMBER 30,
                      (IN THOUSANDS)                  2000
                                                   ------------
         <S>                                        <C>
         Tier 1 capital                              $  29,704
         Total risk-based capital                    $  32,371
         Risk-weighted assets                        $ 213,088
         Average total assets                        $ 312,497

         Tier 1 capital to average assets                9.51%
         Tier 1 risk-based capital ratio                13.94%
         Total  risk-based capital ratio                15.19%
</TABLE>


    LIQUIDITY

         Management's objective in managing liquidity is maintaining the ability
    to continue meeting the cash flow needs of its customers, such as borrowings
    or deposit withdrawals, as well




                                                                              21
<PAGE>   22

                              UNITED BANCORP, INC.
        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                             RESULTS OF OPERATIONS

    as its own financial commitments. The principal sources of liquidity are net
    income, loan payments, maturing securities and sales of securities available
    for sale, federal funds sold and cash and deposits with banks. Along with
    its liquid assets, the Company has additional sources of liquidity available
    to ensure that adequate funds are available as needed. These include, but
    are not limited to, the purchase of federal funds, the ability to borrow
    funds under line of credit agreements with correspondent banks and a
    borrowing agreement with the Federal Home Loan Bank of Cincinnati, Ohio and
    the adjustment of interest rates to obtain depositors. Management feels that
    it has the capital adequacy, profitability and reputation to meet the
    current and projected needs of its customers.

         For the nine months ended September 30, 2000, the adjustments to
    reconcile net income to net cash from operating activities consisted mainly
    of depreciation and amortization of premises and equipment and intangibles,
    the provision for loan losses, net amortization of securities and net
    changes in other assets and liabilities. The net decrease in cash and cash
    equivalents of $1,537,000 was primarily the result of principal payments on
    long term debt of $643,000 and an increase in loans of $16,719,000, offset
    by cash provided in financing activities of $22,497,000 related to an
    increase in deposits. For a more detailed illustration of sources and uses
    of cash, refer to the condensed consolidated statements of cash flows.

    INFLATION

         Substantially all of the Company's assets and liabilities relate to
    banking activities and are monetary in nature. The consolidated financial
    statements and related financial data are presented in accordance with
    Generally Accepted Accounting Principles (GAAP). GAAP currently requires the
    Company to measure the financial position and results of operations in terms
    of historical dollars, with the exception of securities available for sale,
    impaired loans and other real estate loans that are measured at fair value.
    Changes in the value of money due to rising inflation can cause purchasing
    power loss.

         Management's opinion is that movements in interest rates affects the
    financial condition and results of operations to a greater degree than
    changes in the rate of inflation. It should be noted that interest rates and
    inflation do effect each other, but do not always move in correlation with
    each other. The Company's ability to match the interest sensitivity of its
    financial assets to the interest sensitivity of its liabilities in its
    asset/liability management may tend to minimize the effect of changes in
    interest rates on the Company's performance.

    REGULATORY MATTERS

         The Company is subject to the regulatory requirements of The Federal
    Reserve System as a multi-bank holding company. The affiliate banks are
    subject to regulations of the Federal Deposit Insurance Corporation (FDIC)
    and the State of Ohio, Division of Financial Institutions.



                                                                              22

<PAGE>   23

                              UNITED BANCORP, INC.
           QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     The principal market risk affecting the Company is interest rate risk. The
Banks do not maintain a trading account for any class of financial instrument
and the Company is not affected by foreign currency exchange rate risk or
commodity price risk. Because the Banks do not hold any equity securities other
than stock in the Federal Home Loan Bank of Cincinnati, which is not
significant, the Company is not subject to equity price risk.

     The Company and its Banks, like other financial institutions, are subject
to interest rate risk to the extent that its interest-earning assets reprice
differently than its interest-bearing liabilities. One of the principal
financial objectives is to achieve long-term profitability while reducing its
exposure to fluctuations in interest rates. The Company has sought to reduce
exposure of its earnings to changes in market interest rates by managing assets
and liability maturities and interest rates primarily by originating
variable-rate lending products, or if issued with a fixed interest rate, as is
the case with the indirect automobile portfolio, the term is rather short in
duration. Both the variable interests rates inherent in the commercial,
commercial real estate and real estate loan portfolios, and the short duration
loan products, mitigate the Company's exposure to dramatic interest rate
movements.

     The Company's securities are all fixed rate and are weighted more heavily
towards available for sale which accounts for 90% of the portfolio compared to
the 10% for held to maturity securities. The Company primarily invests in US
Agency obligations and State and Municipal obligations and has a modest amount
invested in mortgage-backed securities. Due to total securities approximating
32% of total assets and a significant portion of its loan portfolio consisting
of fixed rate loans, the Company is particularly sensitive to periods of rising
interest rates. In such periods, the Company's net interest spread is negatively
affected because the interest rate paid on deposits increases faster than the
rates earned on loans. Management is continuing to originate variable rate
mortgage loans as the primary means to manage this risk. In addition, the
Company also originates consumer and commercial loans, which make up a
significant percentage of the overall loan portfolio. Consumer loans typically
have a significantly shorter weighted-average maturity and offer less exposure
to interest rate risks while commercial loans generally carry variable interest
rates.

     Management measures the Company's interest rate risk by computing estimated
changes in net interest income and the net portfolio value ("NPV") of its cash
flows from assets, liabilities and off-balance sheet items in the event of a
range of assumed changes in market interest rates. Presented in the Company's
1999 Annual Report as of December 31, 1999, is an analysis of the Company's
interest rate risk as measured by changes in NPV for instantaneous and sustained
parallel shifts of 100 basis points in market interest rates. Management
believes that no events have occurred since December 31, 1999 which would
significantly change the Company's NPV at September 30, 2000 under each assumed
shifts of 100 basis points in market interest rates.

     The Company's NPV is more sensitive to increasing rates than decreasing
rates. Such difference in sensitivity occurs principally because, as rates rise,
the effect is offset on a short-term basis by the rather fixed nature of our
consumer loans and investment securities. This occurs even though the
commercial, commercial real estate and real estate portfolios are comprised of
variable rate products. Also in a rising rate environment consumers tend not to
prepay fixed rate loans as quickly as they would




                                                                              23
<PAGE>   24

                              UNITED BANCORP, INC.
           QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

have had rates not changed dramatically. Moreover, the interest the Company pays
on its deposits would increase because deposits generally have shorter periods
to reprice.

     Certain shortcomings are inherent in the NPV method of analysis. Certain
assets such as adjustable-rate loans have features that restrict changes in
interest rates on a short-term basis and over the life of the asset. In
addition, the proportion of adjustable-rate loans in the Company's portfolio
could decrease in future periods if market interest rates remain at or decrease
below current levels due to refinancing activity. Further, in the event of a
change in interest rates, prepayment and early withdrawal levels would likely
deviate from those assumed in the analysis. Finally, the ability of many
borrowers to repay their adjustable-rate debt may decrease in the case of an
increase in interest rates.




                                                                              24
<PAGE>   25

                              UNITED BANCORP, INC.
                          PART II - OTHER INFORMATION
                                   FORM 10-Q

PART II - OTHER INFORMATION

ITEM 1.     LEGAL PROCEEDINGS
            Not applicable.

ITEM 2.     CHANGES IN SECURITIES AND USE OF PROCEEDS
            Not applicable.

ITEM 3.     DEFAULTS UPON SENIOR SECURITIES
            Not applicable.

ITEM 4.     SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
            Not applicable.

ITEM 5.     OTHER INFORMATION
            Not applicable.

ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K
            (a)  Exhibits

                 Exhibit 27 Financial Data Schedules

            (b)  The registrant filed no current reports on Form 8-K during the
                 quarter ended September 30, 2000.




                                                                              25

<PAGE>   26

                              UNITED BANCORP, INC.
                                   SIGNATURES


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.






        November 7, 2000                  By:   /s/ James W. Everson
----------------------------------              --------------------------------
        Date                           James W. Everson
                                       Chairman, President & Chief Executive
                                       Officer






        November 7, 2000                  By:   /s/ Randall M. Greenwood
----------------------------------              --------------------------------
        Date                           Randall M. Greenwood
                                       Chief Financial Officer






                                                                              26
<PAGE>   27


                                EXHIBIT INDEX
                                -------------
<TABLE>
<CAPTION>
Exhibit No.                   Description
-----------                   -----------
<S>                           <C>
   27                         Financial Data Schedule
</TABLE>