<PAGE>
                                  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 MARCH 31, 2003

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

For the transition period from   N/A        to        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 BY CHECK MARK WHETHER THE REGISTRANT IS AN ACCELERATED FILER (AS
DEFINED IN EXCHANGE ACT RULE 12b-2).
YES     NO  X
    ---    ---

     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 3,223,074 SHARES AS OF APRIL 20, 2003
      -------------------------------------------------------------------



<PAGE>


                              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 - 14

   ITEM 2. Management's Discussion and Analysis of Financial Condition
     and Results of Operations...................................................................................15 - 21

   ITEM 3. Quantitative and Qualitative Disclosures About Market Risk............................................22 - 23

   ITEM 4. Controls and Procedures....................................................................................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

   CERTIFICATIONS..................................................................................................27-31
</TABLE>


   See accompanying notes to the condensed consolidated financial statements

                                                                               2
<PAGE>

                              UNITED BANCORP, INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS

PART I
FINANCIAL INFORMATION

<TABLE>
<CAPTION>

                                                                                                   (UNAUDITED)
                                                                                                    MARCH 31,          DECEMBER 31,
                                                                                                      2003                 2002
                                                                                                  -------------       -------------
<S>                                                                                               <C>                 <C>
ASSETS
Cash and due from financial institutions                                                          $  12,024,712       $   8,248,554
Federal funds sold                                                                                   16,625,000           2,040,000
                                                                                                  -------------       -------------
Total cash and cash equivalents                                                                      28,649,712          10,288,554

Securities available for sale                                                                       124,922,101         132,869,484
Securities held to maturity
(Estimated fair value of $14,070,508 at 03/31/03 and $13,634,177 at 12/31/02)                        13,317,796          12,925,517
Loans receivable
  Commercial loans                                                                                   22,645,538          21,059,890
  Commercial real estate loans                                                                       69,344,831          69,286,653
  Real estate loans                                                                                  53,151,657          52,535,507
  Installment loans                                                                                  44,776,490          45,005,864
                                                                                                  -------------       -------------
    Total loans receivable                                                                          189,918,516         187,887,914
Allowance for loan losses                                                                            (3,005,291)         (2,971,116)
                                                                                                  -------------       -------------
    Net loans receivable                                                                            186,913,225         184,916,798
Premises and equipment, net                                                                           8,775,306           8,932,684
Other real estate and repossessions                                                                     642,565             698,065
Core deposit and other intangible assets                                                                 65,917              75,452
Bank owned life insurance                                                                             6,942,319           6,860,601
Accrued interest receivable                                                                           2,346,553           2,602,091
Other assets                                                                                          1,757,933           1,541,823
                                                                                                  -------------       -------------

  Total Assets                                                                                    $ 374,333,427       $ 361,711,069
                                                                                                  =============       =============

LIABILITIES
Demand deposits
  Noninterest-bearing                                                                             $  27,148,119       $  26,843,394
  Interest-bearing                                                                                   53,037,565          48,341,237
Savings deposits                                                                                     50,771,065          50,382,277
Time deposits - under $100,000                                                                      131,205,597         131,794,499
Time deposits - $100,000 and over                                                                    36,999,056          42,840,126
                                                                                                  -------------       -------------
    Total deposits                                                                                  299,161,402         300,201,533
Federal funds purchased                                                                              11,556,000           2,055,000
Securities sold under agreements to repurchase                                                        8,742,171           7,009,799
Other borrowed funds                                                                                 16,461,587          17,347,429
Accrued expenses and other liabilities                                                                6,686,950           2,942,446
                                                                                                  -------------       -------------
    Total Liabilities                                                                               342,608,110         329,556,207

SHAREHOLDERS' EQUITY
Preferred stock, without par value: 2,000,000 shares authorized and unissued
Common stock - $1 Par Value: 10,000,000 shares authorized;
   3,411,307 issued at March 31, 2003 and December 31, 2002                                           3,411,307           3,411,307
Additional paid in capital                                                                           25,619,466          25,651,879
Retained earnings                                                                                     4,856,074           4,472,544
Treasury stock at cost, 188,265 shares at 03/31/03 and 163,065 shares at 12/31/02                    (2,115,855)         (1,772,127)
Shares held by deferred compensation plan at cost, 40,325 shares at 03/31/03
and 42,828 at 12/31/02                                                                                 (540,318)           (572,731)
Accumulated other comprehensive income, net of tax                                                      494,643             963,990
                                                                                                  -------------       -------------
  Total Shareholders' Equity                                                                         31,725,317          32,154,862
                                                                                                  -------------       -------------

  Total Liabilities and Shareholders' Equity                                                      $ 374,333,427       $ 361,711,069
                                                                                                  =============       =============
</TABLE>


    See accompanying notes to the condensed consolidated financial statements

                                                                               3
<PAGE>


                              UNITED BANCORP, INC.
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME



<TABLE>
<CAPTION>
                                                                                                         THREE MONTHS ENDED
                                                                                                              MARCH 31,
                                                                                                             (UNAUDITED)
                                                                                                     2003                    2002
                                                                                                  ----------              ----------
<S>                                                                                               <C>                     <C>
Interest and dividend income
  Loans, including fees                                                                           $3,415,724              $3,725,942
  Taxable securities                                                                               1,381,853               1,546,438
  Non-taxable securities                                                                             349,292                 259,596
  Federal funds sold                                                                                  23,948                  61,625
  Dividends on Federal Home Loan Bank stock and other                                                 43,835                  39,757
                                                                                                  ----------              ----------
      Total interest and dividend income                                                           5,214,652               5,633,358

Interest expense
  Deposits
    Demand                                                                                           118,203                 116,271
    Savings                                                                                           63,213                 107,656
    Time                                                                                           1,638,064               2,079,499
  Other borrowings                                                                                   209,836                 160,744
                                                                                                  ----------              ----------
      Total interest expense                                                                       2,029,316               2,464,170
                                                                                                  ----------              ----------

Net interest income                                                                                3,185,336               3,169,188

Provision for loan losses                                                                            150,000                 157,500
                                                                                                  ----------              ----------

Net interest income after provision for loan losses                                                3,035,336               3,011,688

Noninterest income
  Service charges on deposit accounts                                                                248,287                 218,818
  Net realized gains on sales of securities                                                          201,928                  46,345
  Net realized gains on sales of loans                                                                24,909                  37,461
  Other income                                                                                       269,105                 142,587
                                                                                                  ----------              ----------
      Total noninterest income                                                                       744,229                 445,211
                                                                                                  ----------              ----------

Noninterest expense
  Salaries and employee benefits                                                                   1,315,824               1,281,344
  Occupancy and equipment                                                                            420,356                 364,740
  Professional services                                                                              122,288                  88,441
  Insurance                                                                                           62,149                  67,984
  Franchise and other taxes                                                                           96,650                  88,913
  Advertising                                                                                         74,135                  73,786
  Stationary and office supplies                                                                      83,230                  62,220
  Amortization of intangibles                                                                          4,500                  16,500
  Other expenses                                                                                     534,779                 490,974
                                                                                                  ----------              ----------
      Total noninterest expense                                                                    2,713,911               2,534,902

Income before income taxes                                                                         1,065,654                 921,997
  Income tax expense                                                                                 263,129                 241,839
                                                                                                  ----------              ----------

Net income                                                                                        $  802,525              $  680,158
                                                                                                  ==========              ==========

Earnings per common share - Basic                                                                 $     0.25              $     0.21
Earnings per common share - Diluted                                                               $     0.25              $     0.21
Dividends per common share                                                                        $     0.13              $     0.12
</TABLE>


    See accompanying notes to the condensed consolidated financial statements


                                                                               4
<PAGE>

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

<TABLE>
<CAPTION>
                                              COMMON                            TREASURY                 ACCUMULATED
                                               STOCK             ADDITIONAL    STOCK AND                   OTHER
                                                                  PAID IN       DEFERRED     RETAINED   COMPREHENSIVE
                                         SHARES       DOLLARS     CAPITAL         PLAN       EARNINGS   INCOME (LOSS)      TOTAL
                                        ---------   ----------  -----------   -----------   ----------  -----------    ------------
<S>                <C>                  <C>         <C>         <C>           <C>           <C>         <C>            <C>
BALANCE AT JANUARY 1, 2002              3,126,886   $3,249,227  $23,619,610   $(1,382,613)  $5,044,540  $   (56,569)   $ 30,474,195
Net income                                                                                     680,158                      680,158
   Net change in unrealized loss on
     securities  available for sale                                                                      (1,718,047)     (1,718,047)
                                                                                                                         ----------
   Comprehensive loss                                                                                                    (1,037,889)
Shares purchased for deferred
   compensation plan                       (4,130)                   47,197       (47,197)                                     --
Shares distributed from deferred
   compensation plan                        3,708                   (45,680)       45,680                                      --
Purchases of treasury stock, at cost      (15,330)                               (183,960)                                 (183,960)
Cash dividends - $0.12 per share                                                              (409,350)                    (409,350)
                                        ---------   ----------  -----------   -----------   ----------  -----------    ------------
BALANCE AT MARCH 31, 2002 (UNAUDITED)   3,111,134   $3,249,227  $23,621,127   $(1,568,090)  $5,315,348  $(1,774,616)   $ 28,842,996
                                        =========   ==========  ===========   ===========   ==========  ===========    ============


BALANCE AT JANUARY 1, 2003              3,205,414   $3,411,307  $25,651,879   $(2,344,858)  $4,472,544  $   963,990    $ 32,154,862
Net income                                                                                     802,525                      802,525
   Net change in unrealized loss on
     securities  available for sale                                                                        (469,347)       (469,347)
                                                                                                                         ----------
   Comprehensive loss                                                                                                       333,178
Shares purchased for deferred
   compensation plan                       (1,527)                   17,879       (17,879)                                     --
Shares distributed from deferred
   compensation plan                        4,030                   (50,292)       50,292                                      --
Purchases of treasury stock, at cost      (25,200)                               (343,728)                                 (343,728)
Cash dividends - $0.13 per share                                                              (418,995)                    (418,995)
                                        ---------   ----------  -----------   -----------   ----------  -----------    ------------
BALANCE AT MARCH 31, 2003 (UNAUDITED)   3,182,717   $3,411,307  $25,619,466   $(2,656,173)  $4,856,074  $   494,643    $ 31,725,317
                                        =========   ==========  ===========   ===========   ==========  ===========    ============

</TABLE>



    See accompanying notes to the condensed consolidated financial statements


                                                                               5
<PAGE>


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



<TABLE>
<CAPTION>
                                                                                                        THREE MONTHS ENDED
                                                                                                              MARCH 31,
                                                                                                     2003                  2002
                                                                                                 ------------          ------------
<S>                                                                                              <C>                   <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income                                                                                       $    802,525          $    680,158
Adjustments to reconcile net income to net cash
    from operating activities
      Depreciation and amortization                                                                   238,981               210,363
      Provision for loan losses                                                                       150,000               157,500
      Deferred taxes                                                                                   71,900              (151,710)
      Bank owned life insurance income                                                                (90,211)                 --
      Federal Home Loan Bank stock dividend                                                           (42,400)              (49,500)
      Net realized gains on sales of securities                                                      (201,928)              (46,345)
      (Accretion)/amortization of premium and discount on securities, net                             113,830               (11,078)
      Net realized gains on sales of loans                                                            (24,909)              (37,461)
      Net realized gains on sale of real estate owned                                                  (9,500)               (3,800)
      Amortization of mortgage servicing rights                                                        22,671                16,987
      Net changes in accrued interest receivable and other assets                                      55,194               (75,376)
      Net changes in accrued expenses and other liabilities                                         3,914,389              (259,039)
                                                                                                 ------------          ------------
      Net cash from operating activities                                                            5,000,542               430,699

CASH FLOWS FROM INVESTING ACTIVITIES
Securities available for sale
  Sales                                                                                            12,612,512             6,025,781
  Maturities, prepayments and calls                                                                36,662,624            15,216,919
  Purchases                                                                                       (41,915,483)          (21,466,778)
Securities held to maturity
  Maturities, prepayments and calls                                                                   202,000                  --
  Purchases                                                                                          (587,183)           (1,637,004)
Net change in loans                                                                                (2,146,427)              (50,580)
Purchases of premises and equipment                                                                   (77,103)              (14,195)
Proceeds from sale of real estate owned                                                                65,000                17,000
                                                                                                 ------------          ------------
      Net cash from (used) in investing activities                                                  4,815,940            (1,908,857)

CASH FLOWS FROM FINANCING ACTIVITIES
Net change in deposits                                                                             (1,040,131)            3,445,527
Net change in borrowings                                                                           10,347,530            (7,838,479)
Treasury stock purchases                                                                             (343,728)             (183,960)
Cash dividends paid                                                                                  (418,995)             (409,350)
                                                                                                 ------------          ------------
      Net cash from (used) in financing activities                                                  8,544,676            (4,986,262)
                                                                                                 ------------          ------------

Net change in cash and cash equivalents                                                            18,361,158            (6,464,420)

Cash and cash equivalents at beginning of year                                                     10,288,554            23,389,756
                                                                                                 ------------          ------------

Cash and cash equivalents at end of period                                                       $ 28,649,712          $ 16,925,336
                                                                                                 ============          ============

     Interest paid                                                                               $  2,033,603          $  2,562,439
     Income taxes paid                                                                                   --                  65,346

</TABLE>


   See accompanying notes to the condensed consolidated financial statements


                                                                               6


<PAGE>


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


1.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

                  These interim 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 March 31, 2003, 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 for Form 10-Q and, therefore, do not purport to contain
         all the necessary financial disclosures required by accounting
         principles generally accepted in the United States of America 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, 2002
         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 2002 Annual Report to
         Shareholders. The Company has consistently followed these policies in
         preparing this Form 10-Q.

         PRINCIPLES OF CONDENSED CONSOLIDATION:
                  The consolidated financial statements include the accounts of
         the Company and its wholly-owned subsidiaries, (collectively, "the
         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 revenues, operating income and assets are
         primarily from the banking industry. Accordingly, all of the Company's
         banking operations are considered by Management to be aggregated in one
         reportable operating segment. 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. 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 Amesville, Glouster, Lancaster, and Nelsonville,
         Ohio. The Company's primary deposit products are checking, savings, and
         term certificates of deposits, and its primary lending products are
         residential mortgage, commercial, and installment loans. Substantially
         all loans are secured by specific items of collateral including
         business assets, consumer assets, and real estate. Commercial loans are
         expected to be repaid from cash flow from operations of business. Real
         estate loans are secured by both residential and commercial real
         estate. Other financial instruments which potentially represent
         concentrations of credit risk include deposit accounts in other
         financial institutions.

         USE OF ESTIMATES:
                  To prepare financial statements in conformity with accounting
         principles generally accepted in the United States of America,
         management makes estimates and assumptions based

                                                                               7
<PAGE>

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

1.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

         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.

         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.

         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.

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

<TABLE>
<CAPTION>
                                                                                     THREE MONTHS ENDED
                                                                                         March 31,
                                                                                2003                   2002
                                                                             ----------             ----------
<S>                                                                          <C>                    <C>
BASIC
     Net income                                                              $  802,525             $  680,158
                                                                             ==========             ==========

     Weighted average common shares outstanding                               3,186,734              3,273,938
                                                                             ==========             ==========

     Basic earnings per common share                                         $     0.25             $     0.21
                                                                             ==========             ==========

DILUTED
     Net income                                                              $  802,525             $  680,158
                                                                             ==========             ==========

     Weighted average common shares outstanding for
           basic earnings per common share                                    3,186,734              3,273,938
     Add:  Dilutive effects of assumed exercise of stock
           options                                                               12,359                  9,205
                                                                             ----------             ----------

     Average shares and dilutive potential common shares                      3,199,093              3,283,143
                                                                             ==========             ==========

     Diluted earnings per common share                                       $     0.25             $     0.21
                                                                             ==========             ==========

Number of stock options not considered in computing
diluted earnings per share due to antidilutive nature                            21,057                 21,057

Weighted average exercise price                                              $     9.69             $     9.69
</TABLE>


                                                                               8

<PAGE>

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

         EARNINGS AND DIVIDENDS PER SHARE (CONTINUED):

                        The interim period disclosures for the stock option plan
         as required under Financial Accounting Standards Board Statement of
         Financial Accounting Standards No. 148 "Accounting for Stock Based
         Compensation - Transition and Disclosure" have been omitted due to no
         activity in the option plan.

         COMPREHENSIVE INCOME:
                  Comprehensive income consists of net income and other
         comprehensive income. Other comprehensive income includes net
         unrealized gains and losses on securities available for sale which are
         recognized as a separate component of equity. The detailed components
         of the net change in unrealized gains (losses) on securities available
         for sale are as follows:


<TABLE>
<CAPTION>
                                                                                THREE MONTHS ENDED
                                                                                    MARCH 31,
                                                                          2003                   2002
                                                                       -----------            -----------
<S>                                                                    <C>                    <C>
Net change in unrealized losses on securities available for sale:
      Unrealized holding losses on available
        for sale securities arising during period                      $  (509,204)           $(2,558,177)
      Reclassification adjustment for gains
       later recognized in income                                         (201,928)               (46,345)
                                                                       -----------            -----------
                                                                          (711,132)            (2,604,522)

Tax effects thereon                                                        241,785                886,474
                                                                       -----------            -----------

Net change in unrealized losses
on securities available for sale:                                      $  (469,347)           $(1,718,048)
                                                                       ===========            ===========
</TABLE>


                                                                               9

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

2.       SECURITIES:

                  Securities were as follows:


<TABLE>
<CAPTION>
                                                                        ------------------------------------------------------------
                                                                         ESTIMATED                 GROSS                  GROSS
                                                                         FAIR VALUE          UNREALIZED GAINS      UNREALIZED LOSSES
                                                                        ------------         ----------------      -----------------
<S>                                                                     <C>                    <C>                   <C>
AVAILABLE FOR SALE - MARCH 31, 2003
     U.S. Government and federal agency                                 $ 68,756,161           $    721,800          $    (42,402)
     State and municipal obligations                                      21,262,030                309,636              (145,142)
     Mortgage-backed securities                                           28,053,331                 53,820              (145,239)
     Collateralized mortgage obligations                                   2,992,985                   --                 (16,608)
                                                                        ------------           ------------          ------------
     Total debt securities                                               121,064,507              1,085,256              (349,391)
                                                                        ------------           ------------          ------------
     Other securities                                                      3,857,594                 13,594                  --
                                                                        ------------           ------------          ------------
                                                                        $124,922,101           $  1,098,850          $   (349,391)
                                                                        ============           ============          ============

AVAILABLE FOR SALE - DECEMBER 31, 2002
     U.S. Government and federal agency                                 $ 93,261,759           $  1,186,116          $    (17,179)
     State and municipal                                                  20,713,901                310,894               (58,552)
     Mortgage-backed                                                      14,074,772                 50,763               (31,647)
     Collateralized mortgage obligations                                     998,589                  2,752                  --
                                                                        ------------           ------------          ------------
     Total debt securities                                               129,049,021              1,550,525              (107,378)
                                                                        ------------           ------------          ------------
     Other securities                                                      3,820,463                 18,200                  (756)
                                                                        ------------           ------------          ------------
                                                                        $132,869,484           $  1,568,725          $   (108,134)
                                                                        ============           ============          ============
</TABLE>

<TABLE>
<CAPTION>
                                                                                     GROSS              GROSS
                                                                CARRYING          UNRECOGNIZED       UNRECOGNIZED        FAIR VALUE
                                                                 AMOUNT              GAINS              LOSSES
                                                               -----------        -----------        -----------         -----------
<S>                                                            <C>                <C>                <C>                 <C>
HELD TO MATURITY - MARCH 31, 2003
     State and municipal obligations                           $13,317,796        $   754,991        $    (2,279)        $14,070,508
                                                               ===========        ===========        ===========         ===========

HELD TO MATURITY - DECEMBER 31, 2002
     State and municipal obligations                           $12,925,517        $   712,282        $    (3,622)        $13,634,177
                                                               ===========        ===========        ===========         ===========
</TABLE>

Sales of securities available for sale were as follows:


<TABLE>
<CAPTION>
                                                       THREE MONTHS ENDED
                                                            MARCH 31,
                                                  2003                  2002
                                               -----------           -----------
<S>                                            <C>                   <C>
Proceeds                                       $12,612,512           $ 6,025,781
Gross gains                                        201,928                46,345
</TABLE>


                                                                              10
<PAGE>
                             UNITED BANCORP, INC.
            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


2.       SECURITIES: (CONTINUED)

                  Contractual maturities of securities at March 31, 2003 were as
follows:


<TABLE>
<CAPTION>
AVAILABLE FOR SALE                                            AMORTIZED         ESTIMATED
                                                                 COST           FAIR VALUE
                                                            -------------     -------------
<S>                                                         <C>               <C>
U.S. government and federal agency obligations
  Under 1 Year                                              $       --        $       --
  1 - 5   Years                                                 1,128,296         1,132,855
  5 - 10  Years                                                12,475,301        12,495,886
 Over 10  Years                                                54,473,166        55,127,420
                                                            -------------     -------------
  Total                                                        68,076,763        68,756,161
                                                            -------------     -------------
State and municipal obligations
  Under 1 Year                                                  3,894,520         3,961,363
  1 - 5 Years                                                     927,971           993,723
  5 - 10  Years                                                 6,577,627         6,715,452
 Over 10 Years                                                  9,697,418         9,591,492
                                                            -------------     -------------
  Total                                                        21,097,536        21,262,030
                                                            -------------     -------------
Mortgage backed securities
  5 - 10 Years                                                 11,845,163        11,869,552
 Over 10 Years                                                 16,299,587        16,183,779
                                                            -------------     -------------
   Total                                                       28,144,750        28,053,331
                                                            -------------     -------------
Collateralized mortgage obligations
  5 - 10 Years                                                  1,478,900         1,471,082
 Over 10 Years                                                  1,530,693         1,521,903
                                                            -------------     -------------
   Total                                                        3,009,593         2,992,985
                                                            -------------     -------------
Other investments
  Equity securities                                             3,844,000         3,857,594
                                                            -------------     -------------

Total securities available for sale                         $ 124,172,642     $ 124,922,101
                                                            =============     =============

HELD TO MATURITY

State and municipal obligations
  Under 1 Year                                              $      50,000      $     50,490
  1 - 5    Years                                                4,400,849         4,715,239
  5 - 10  Years                                                 3,165,959         3,426,947
  Over 10 Years                                                 5,700,988         5,877,832
                                                            -------------      ------------
Total securities held to maturity                           $  13,317,796      $ 14,070,508
                                                            =============      ============
</TABLE>


Securities with a carrying value of approximately $43.0 million at March 31,
2003 and $49.7 million at December 31, 2002 were pledged to secure public
deposits, repurchase agreements and other liabilities as required or permitted
by law.



                                                                              11

<PAGE>


                             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
                                                             MARCH 31,
                                                       2003             2002
                                                   -----------      -----------
<S>                                                <C>              <C>
Beginning Balance                                  $ 2,971,116      $ 2,879,065
  Provision charged to operating expense               150,000          157,500
  Loans charged-off                                   (167,880)        (144,091)
  Recoveries                                            52,055           55,731
                                                   -----------      -----------
Ending Balance                                     $ 3,005,291      $ 2,948,205
                                                   ===========      ===========
</TABLE>



                  Non-performing loans were as follows:

<TABLE>
<CAPTION>
                                                           MARCH 31,         DECEMBER 31,
                                                             2003               2002
                                                           --------           --------
<S>                                                        <C>                <C>
Loans past due over 90 days still on accrual               $  5,000           $ 85,000
Nonaccrual loans                                            773,000            685,000
</TABLE>

                  Loans considered impaired under the provisions of SFAS No. 114
         were not material at March 31, 2003 and December 31, 2002. Nonaccrual
         loans include all impaired loans and smaller balance homogenous loans,
         such as residential mortgage and consumer loans that are collectively
         evaluated for impairment.

4.       COMMITMENTS, OFF-BALANCE SHEET RISK AND CONTINGENCIES

                  Financial instruments are used in the normal course of
         business to meet the financing needs of customers. Such 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.


                                                                              12



<PAGE>

                             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 March 31, 2003 and December
         31, 2002 follows:



<TABLE>
<CAPTION>
                                                      MARCH 31,      DECEMBER 31,
                                                        2003             2002
                                                    -----------      -----------
<S>                                                 <C>              <C>
Commitments to extend credit                        $24,932,253      $25,423,442
Credit card and ready reserve lines                   1,488,963        1,384,224
Standby letters of credit                               490,200          490,200
</TABLE>


                  At March 31, 2003, and included above, commitments to make
         fixed-rate loans totaled $1,906,175 with the interest rates on those
         fixed-rate commitments ranging from 4.75% to 9.75%. At December 31,
         2002, commitments to make fixed rate loans totaled $2,087,373 with
         interest rates on those fixed-rate commitments ranging from 4.75% to
         9.75%.

5.       NEW ACCOUNTING PRONOUNCEMENTS

         In June 2002, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 146, "Accounting for
Costs Associated with Exit or Disposal Activities." SFAS No. 146 provides
financial accounting and reporting guidance for costs associated with exit or
disposal activities, including one-time termination benefits, contract
termination costs other than for a capital lease, and costs to consolidate
facilities or relocate employees. SFAS No. 146 is effective for exit or disposal
activities initiated after December 31, 2002. SFAS No. 146 is not expected to
have a material effect on the Corporation's financial condition or results of
operations.

         In December 2002, the FASB issued SFAS No. 148, "Accounting for
Stock-Based Compensation - Transition and Disclosure." SFAS No. 148 amends SFAS
No. 123, "Accounting for Stock-Based Compensation," to provide alternative
methods of transition for a voluntary change to the fair value based method of
accounting for stock-based employee compensation. In addition, SFAS No. 148
amends the disclosure requirements of SFAS No. 123 to require prominent
disclosures in both annual and interim financial statements about the method of
accounting for stock-based employee compensation and the effect of the method
used on reported results. SFAS No. 148 is effective for fiscal years beginning
after December 15, 2002. The expanded annual disclosure requirements and the
transition provisions are effective for fiscal years ending after December 15,
2002. The interim disclosure provisions are effective for financial reports
containing financial statements for interim periods beginning after December 15,
2002. SFAS No. 148 is not expected to have a material effect on the
Corporation's financial position or results of operations.

                                                                              13
<PAGE>

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

5.       NEW ACCOUNTING PRONOUNCEMENTS (CONTINUED)

         In January 2003, the FASB issued FASB Interpretation No. 46 ("FIN 46"),
"Consolidation of Variable Interest Entities." FIN 46 requires a variable
interest entity to be consolidated by a company if that company is subject to a
majority of the risk of loss from the variable interest entity's activities or
entitled to receive a majority of the entity's residual returns, or both. FIN 46
also requires disclosures about variable interest entities that a company is not
required to consolidate, but in which it has a significant variable interest.
The consolidation requirements of FIN 46 apply immediately to variable interest
entities created after January 31, 2003. The consolidation requirements apply to
existing entities in the first fiscal year or interim period beginning after
June 15, 2003. Certain of the disclosure requirements apply in all financial
statements issued after January 31, 2003, regardless of when the variable
interest entity was established. The Corporation is currently evaluating the
impact of FIN 46 and expects no material effect on its financial statements.



                                                                              14

<PAGE>
                              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 March 31, 2003, as compared to December 31, 2002 and the results
         of operations for the three months ended March 31, 2003 compared to the
         same period in 2002. 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.





                                                                              15
<PAGE>

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



         ANALYSIS OF FINANCIAL CONDITION
         EARNING ASSETS - LOANS
                  At March 31, 2003, gross loans were $189,918,516 compared to
         $187,887,914 at year-end 2002, an increase of $2,030,602 or 1.1%. The
         increase in total outstanding loans was the result of an increase in
         the commercial, commercial real estate and real estate portfolios.
         Management attributes the relatively small increase in loans to the
         general economic slow-down in the lending markets served.

                  Installment loans represented to 23.6% of total loans at March
         31, 2003 compared to 24.0% at year-end 2002. 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. CITIZENS experienced a 2.97%, or $827,917 increase in
         installment loans while COMMUNITY had a decrease of 6.18%, or
         $1,057,291 in installment loans. In general, as the overall economy has
         slowed in the markets we service, so has the demand for consumer based
         loans. Also with interest rates depressed, management has not been
         aggressive in lowering rates on these fixed rate loan products.
         Recently, management has employed the strategy of focusing on
         adjustable rate products to position the Company for an eventual rise
         in interest rates.

                  Commercial and commercial real estate loans comprised 48.4% of
         total loans at March 31, 2003 compared to 48.1% at December 31, 2002.
         Commercial and commercial real estate loans have increased $1,643,826
         or 1.8% since December 31, 2002. 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.

                  Real estate loans were 28.0% of total loans at March 31, 2003
         and 28.0% at year-end 2002. In dollar volume real estate loans
         increased 1.2% since December 31, 2002. However, COMMUNITY actually
         experienced an increase in real estate loans of 4.7% or $1,048,446 and
         CITIZENS experienced a decrease of 1.4% or $432,296. As previously
         mentioned, management's position is to focus on adjustable rate
         products as the overall rate environment reaches historical low levels
         with the intent these products will adjust as interest rates rise.

                  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 evaluation model that
         considers borrowers' past due experience, economic conditions 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 three months ended
         March 31, 2003 were approximately $116,000, or 3.9%, of the beginning
         balance in the allowance for loan losses. During the first three months
         of 2003, gross charge-offs were almost entirely consumer loans and
         totaled approximately $168,000.


                                                                              16
<PAGE>

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

         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 March
         31, 2003 decreased approximately $7,947,383, or 6.0% from year-end 2002
         totals. Securities held to maturity at March 31, 2002 increased
         approximately $392,279, or 3.0% compared to year-end 2002 totals.

         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 March 31, 2003, total core deposits increased approximately
         $4,800,939 or 1.9% primarily from an increase in interest bearing
         demand deposits of $4.7 million.

                  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 March 31, 2003,
         certificates of deposit greater than $100,000 decreased approximately
         $5,841,070, or 13.6% from year-end 2002 totals.

                  Over the past year, COMMUNITY has developed several large
         depository customers. As of March 31, 2003, the seven largest
         depository customers accounted for approximately 28% of COMMUNITY'S
         certificate of deposits and approximately 87% of total certificates of
         deposits greater than $100,000. These customers also represent 15% of
         Community's demand deposits at March 31, 2003. Total concentration of
         retail funding is approximately 26% of COMMUNITY'S total deposits at
         March 31, 2003. On a consolidated level, this represents approximately
         8% of total retail deposits at March 31, 2003 compared to 9% at
         December 31, 2002. This deposit concentration does pose possible
         liquidity and earnings risk for COMMUNITY. The earnings risks would be
         triggered if COMMUNITY would be placed in a position to sell assets
         below book value to meet current liquidity needs. This risk is
         mitigated with COMMUNITY'S capability to borrow wholesale funding from
         its correspondent banks. Management has an active asset/liability
         committee that monitors, among other items, monthly liquidity needs on
         a 90 day time horizon.

         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

                                                                              17
<PAGE>

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

         ("FHLB") advances. In the first three months of 2003, the Company
         continued to utilize the FHLB programs to manage interest rate risk and
         liquidity positions. The majority of the Company's repurchase
         agreements are with local school districts and city and county
         governments. Total other borrowings decreased approximately $878,842,
         or 5.1% from year-end 2002 totals.

         RESULTS OF OPERATIONS FOR THREE MONTHS ENDED MARCH 31, 2003

         NET INCOME
                  Basic and diluted earnings per share for the three months
         ended March 31, 2003 totaled $0.25, compared with $0.21 for the three
         months ended March 31, 2002, an increase of 19.1%. In dollars, net
         income increased 18.0% for the three months ended March 31, 2003,
         compared to the same quarter in 2002.

         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 remained
         relatively unchanged for the three months ended March 31, 2003 compared
         to the same period in 2002. This resulted from a growth in earning
         assets but was offset by a decrease in the net interest margin.

                  Total interest income for the three months ended March 31,
         2003 was $5,214,652 compared to $5,633,358 for the same period in 2002.
         Total interest income decreased $418,706, or 7.4%. The decline can be
         attributed to the overall lower interest rate environment that
         currently exists.

                  Total interest expense for the three months ended March 31,
         2003 when compared to the same three-month period ended March 31, 2002,
         decreased 17.7%, or $434,854. The Company has experienced a decrease in
         interest expense due to a decreased use of FHLB advances to fund
         security purchases and the effect of a lower interest rate environment
         on deposit products. Management has been proactive in lowering deposit
         product interest rates and has relied less on certificates of deposits
         to fund asset growth.

         PROVISION FOR LOAN LOSSES
                  The total provision for loan losses was $150,000 for the three
         months ended March 31, 2003 compared to $157,500 for the same period in
         2002. At March 31, 2003 and December 31, 2002, the allowance for loan
         losses to total loans was 1.58%. The allowance for loan losses to
         nonaccrual loans was 389% at March 31, 2003, compared to 430% at
         December 31, 2002. As stated previously, the loan portfolio balance
         remained almost unchanged since December 31, 2002 with a growth of
         approximately 1.1%.

         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 deposit, safe deposit rental income, internet bank
         service fees and other miscellaneous items. Noninterest income for the
         three months ended March 31, 2003 was $744,229 compared to $445,211 for
         the same three-month period ended March 31, 2002, an increase of

                                                                              18


<PAGE>

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

         approximately 67.2% or $299,018. The Company's two affiliates invested
         in Bank Owned Life Insurance on June 30, 2002. For the three months
         ended March 31, 2003 the Company has recognized $90,211 of income
         related to this product. In addition, the Company's security portfolio
         generated approximately $201,928 in security gains for the three months
         ended March 31, 2003, compared to $46,345 for the same period in 2002.
         Management's sale strategy took into consideration the relative
         volatility in the bond market during the quarter. Management realized
         there were opportunities to sell certain bonds in the portfolio when
         overall interest rates were depressed. Security gains are not a
         component of core income and depending on future interest rate
         scenarios, gains on the sale of investment securities may negatively
         impact the yield on the investment portfolio and the Company's net
         interest margin in future periods.


         NONINTEREST EXPENSE
                  Noninterest expense for the three months ended March 31, 2003
         increased $179,009 or 7.1% over the three months ended March 31, 2002.
         Salary and benefit expense increased approximately $34,480 or 2.7%,
         occupancy expense increased $55,616 or 15.2% due to capital
         expenditures mainly in technology enhancements in mid to late 2002 and
         other expenses increased $88,913 or 10.0%. Other expenses primarily
         increased due to growth in ATM merchant expenses of $18,514, legal
         expenses of $38,979 and state income taxes of $13,737.

         CAPITAL RESOURCES
                  Internal capital growth, through the retention of earnings, is
         the primary means of maintaining capital adequacy for the Company.
         Shareholders' equity at March 31, 2003, totaled $31,725,317 compared to
         $32,154,862 at December 31, 2002, a 1.3% decrease. Total shareholders'
         equity in relation to total assets was 8.48% at March 31, 2003 and
         8.89% at December 31, 2002. In May 2001, our shareholders approved an
         amendment to the Company's Articles of Incorporation to create a class
         of preferred shares with 2,000,000 authorized shares. This will enable
         the Company, at the option of the Board of Directors, to issue series
         of preferred shares in a manner calculated to take advantage of
         financing techniques which may provide a lower effective cost of
         capital to the Company. The amendment also provides greater flexibility
         to the Board of Directors in structuring the terms of equity securities
         that may be issued by the Company.

                  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 and the 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,

                                                                              19
<PAGE>

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

         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 March 31, 2003:


<TABLE>
<CAPTION>
                                                                       MARCH 31,
                      (in thousands)                                      2003
                                                                       ---------
<S>                                                                 <C>
Tier 1 capital                                                         $ 31,148
Total risk-based capital                                               $ 33,794
Risk-weighted assets                                                   $227,285
Average total assets                                                   $363,646

Tier 1 capital to average assets                                           8.57%
Tier 1 risk-based capital ratio                                           13.70%
Total  risk-based capital ratio                                           14.87%
</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 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 three months ended March 31, 2003, 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

                                                                              20


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

         LIQUIDITY - CONTINUED
         and liabilities. Cash and cash equivalents decreased as a result of the
         purchasing of government agency securities. 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 GAAP in the United States of America
         (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
         affect 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.


                                                                              21

<PAGE>

                              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, like other financial institutions, is 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 interest 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 91% of the portfolio
compared to the 9% for held to maturity securities. The Company primarily
invests in U.S. Agency obligations and State and Municipal obligations and has a
modest amount invested in mortgage-backed securities. Due to total securities
approximating 37% 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 loans as the primary means to manage this risk.

         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. The following tables
present an analysis of the potential sensitivity of the Company's new present
value of its financial instruments to sudden and sustained changes in the
prevailing interest rates.

<TABLE>
<CAPTION>
                            (Dollars in Thousands)
---------------------------------------------------------------------------------
                     NET PORTFOLIO VALUE-MARCH 31, 2003

CHANGE IN RATES                       $ AMOUNT         $ CHANGE         % CHANGE
                                   ---------------------------------------------
<S>                                <C>              <C>                <C>
Up 200                                $26,947          $  (240)          -0.88%

Up 100                                $28,606          $ 1,419            5.22%

Base                                  $27,187

Down 100                              $23,196          $(3,991)          -14.68%

Down 200                              $23,282          $(3,905)          -14.36%
</TABLE>


<TABLE>
<CAPTION>
                               (Dollars in Thousands)
--------------------------------------------------------------------------------
                      NET PORTFOLIO VALUE-DECEMBER 31, 2002

CHANGE IN RATES                       $ AMOUNT         $ CHANGE         % CHANGE
                                   ---------------------------------------------
<S>                                <C>              <C>                <C>
Up 200                                 $27,138          $(1,912)          -6.58%

Up 100                                 $30,396          $ 1,346            4.63%

Base                                   $29,050

Down 100                               $26,391          $(2,659)          -9.15%

Down 200                               $26,553          $(2,497)          -8.60%
</TABLE>


                                                                              22


<PAGE>

                              UNITED BANCORP, INC.
                             CONTROLS AND PROCEDURES

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK (CONTINUED)

         The projected volatility of the net present value at both March 31,
2003 and December 31, 2002 fall within the general guidelines established by the
Board of Directors. The NPV table shows that in a falling interest rate
environment, the NPV would decrease between 14.68% and 14.36%. In Management's
view there is a low probability that interest rates would decrease another 100
to 200 basis points. In the upward change in interest rates the Company's NPV
would increase 5.22% with a 100 basis point interest rate increase. In a 200
basis point rate increase the Company's NPV would decrease .88%. This decrease
is a result of the Company's available for sale securities portfolio that is
invested in fixed-rate securities. As interest rates increase, the market value
of the securities decrease. However, since the Company currently has the ability
to hold these securities to their final maturity, it would not have to incur any
losses.

         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.



                                                                              23
<PAGE>


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


ITEM 4. CONTROLS AND PROCEDURES

         Within the 90 days prior to the date of this report, the Company
carried out an evaluation, under the supervision and with the participation of
the Company's management, including the Company's Chairman, President and Chief
Executive Officer, and Senior Vice President, Chief Financial Officer and
Treasurer, of the effectiveness of the design and operation of the Company's
disclosure controls and procedures pursuant to Exchange Act Rule 13a-14. Based
upon that evaluation, the President and Chief Executive Officer and Senior Vice
President and Chief Financial Officer concluded that the Company's disclosure
controls and procedures are effective in timely alerting them to material
information relating to the Company (including its consolidated subsidiaries)
required to be included in the Company's periodic SEC filings.



                                                                              24

<PAGE>

                              UNITED BANCORP, INC.
                                OTHER INFORMATION

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

            3.1     Amended Articles of Incorporation of United Bancorp, Inc.

            3.2     Amended Code of Regulations of United Bancorp, Inc.

            4.0     Instruments Defining the Rights of Security Holders (See
                    Exhibits 3.1 and 3.2)

            99.1    Certification pursuant to 18 U.S.C. Section 1350, As Adopted
                    Pursuant to Section 906 of The Sarbanes-Oxley Act of 2002.

            99.2    Certification pursuant to 18 U.S.C. Section 1350, As Adopted
                    Pursuant to Section 906 of The Sarbanes-Oxley Act of 2002.

       (b)     The Company filed no reports on SEC Form 8-K during the last
               quarter of the period covered by this report.

                                                                              25

<PAGE>


                              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.






     May 2, 2003                               By:   /s/ James W. Everson
------------------------------------               -----------------------------
     Date                                      James W. Everson
                                               Chairman, President & Chief
                                               Executive Officer






     May 2, 2003                                 By:   /s/ Randall M. Greenwood
--------------------------------------------         ---------------------------
     Date                                        Randall M. Greenwood
                                                 Senior Vice President, Chief
                                                 Financial Officer and Treasurer


                                                                              26

<PAGE>
                              UNITED BANCORP, INC.
                                  CERTIFICATION

         I, James W. Everson, certify that:

         1. I have reviewed this quarterly report on Form 10-Q of United
Bancorp, Inc.;

         2. Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this
quarterly report;

         3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

         4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

         a) Designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this quarterly report is being prepared;

         b) Evaluated the effectiveness of the registrant's disclosure controls
and procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and

         c) Presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our evaluation
as of the Evaluation Date;

         5. The registrant's other certifying officers and I have disclosed,
based on our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent function):

         a) All significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to record,
process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and

         b) Any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's internal
controls; and

         6. The registrant's other certifying officers and I have indicated in
this quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date or our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date:
         -----------------------------------------------------------------------
By:
         -----------------------------------------------------------------------
         James W. Everson, Chairman, President and Chief Executive Officer


                                                                              27
<PAGE>
                              UNITED BANCORP, INC.
                                 CERTIFICATIONS

         I, Randall M. Greenwood, certify that:

         1. I have reviewed this quarterly report on Form 10-Q of United
Bancorp, Inc.;

         2. Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this
quarterly report;

         3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

         4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

         d) Designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this quarterly report is being prepared;

         e) Evaluated the effectiveness of the registrant's disclosure controls
and procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and

         f) Presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our evaluation
as of the Evaluation Date;

         5. The registrant's other certifying officers and I have disclosed,
based on our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent function):

         c) All significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to record,
process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and

         d) Any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's internal
controls; and

         6. The registrant's other certifying officers and I have indicated in
this quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date or our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date:
         -----------------------------------------------------------------------
By:
         -----------------------------------------------------------------------
         Randall M. Greenwood, Senior Vice President and Chief Financial Officer

                                                                              28
<PAGE>
                               10-Q EXHIBIT INDEX

 EXHIBIT NO.        DESCRIPTION

 EX - 99.1          Certification pursuant to 18 U.S.C. Section 1350, as adopted
                    pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 EX - 99.2          Certification pursuant to 18 U.S.C. Section 1350, as adopted
                    pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

                                                                              29