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

                                    FORM 10-Q

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

For the quarterly period ended      JUNE 30, 2001

[ ]           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.)

<TABLE>
<S>                                                                  <C>
                            OHIO                                                 34-1405357
                            ----                                                 ----------
(State or other jurisdiction of incorporation or organization)       (IRS Employer Identification No.)
</TABLE>


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

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

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

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

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

       COMMON STOCK, $1.00 PAR VALUE 3,019,076 SHARES AS OF JULY 19, 2001



<PAGE>   2
                              UNITED BANCORP, INC.
                                TABLE OF CONTENTS
                                    FORM 10-Q


PART I FINANCIAL INFORMATION (UNAUDITED)

<TABLE>
<S>                                                                                                             <C>
   ITEM 1. Financial Statements

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

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

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

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

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

   ITEM 2. Management's Discussion and Analysis of Financial Condition
     and Results of Operations...................................................................................14 - 23

   ITEM 3. Quantitative and Qualitative Disclosures About Market Risk............................................24 - 25


PART II  OTHER INFORMATION

   ITEM 1.
     Legal Proceedings................................................................................................26

   ITEM 2.
     Changes in Securities and Use of Proceeds........................................................................26

   ITEM 3.
     Default Upon Senior Securities...................................................................................26

   ITEM 4.
     Submission of Matters to a Vote of Security Holders..............................................................26

   ITEM 5.
     Other Information................................................................................................26

   ITEM 6.
     Exhibits and Reports on Form 8-K.................................................................................26

   SIGNATURES.........................................................................................................27
</TABLE>



                                                                               2


<PAGE>   3

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


PART I FINANCIAL INFORMATION


<TABLE>
<CAPTION>
                                                                                              JUNE 30,          DECEMBER 31,
                                                                                                2001                2000
                                                                                          -----------------   ------------------
<S>                                                                                       <C>                 <C>
   ASSETS
   Cash and due from financial institutions                                                   $ 10,695,307        $  10,694,118

   Securities available for sale                                                               125,046,716           94,438,970
   Securities held to maturity
   (Estimated fair value of $8,912,552 at 06/30/01 and $10,946,251 at 12/31/00)                  8,591,898           10,802,213
   Loans receivable
     Commercial loans                                                                           19,059,592           20,414,810
     Commercial real estate loans                                                               63,533,021           64,811,940
     Real estate loans                                                                          54,900,080           55,931,621
     Installment loans                                                                          50,444,423           55,338,861
                                                                                          -----------------   ------------------
       Total loans receivable                                                                  187,937,116          196,497,232
   Allowance for loan losses                                                                    (2,839,270)          (2,790,133)
                                                                                          -----------------   ------------------
       Net loans receivable                                                                    185,097,846          193,707,099
   Premises and equipment, net                                                                   9,440,259            9,521,046
   Accrued interest receivable and other assets                                                  4,663,972            4,722,355
                                                                                          -----------------   ------------------

     Total Assets                                                                             $343,535,998        $ 323,885,801
                                                                                          =================   ==================

   LIABILITIES
   Demand deposits
     Noninterest-bearing                                                                      $ 23,056,063        $  22,708,636
     Interest-bearing                                                                           42,899,462           45,470,957
   Savings deposits                                                                             48,687,281           49,158,941
   Time deposits - under $100,000                                                              121,355,917          120,797,039
   Time deposits - $100,000 and over                                                            34,960,624           29,417,302
                                                                                          -----------------   ------------------
       Total deposits                                                                          270,959,347          267,552,875
   Securities sold under agreements to repurchase                                                7,717,201            4,861,430
   Other borrowed funds                                                                         33,956,286           21,247,616
   Accrued expenses and other liabilities                                                        1,072,627            1,544,793
                                                                                          -----------------   ------------------
       Total Liabilities                                                                       313,705,461          295,206,714

   SHAREHOLDERS' EQUITY
   Preferred stock, without par value: 2,000,000 authorized and unissued
   Common stock - $1 par value: 10,000,000 shares authorized;
     3,094,882  issued                                                                           3,094,882            3,094,882
   Additional paid in capital                                                                   21,769,867           21,699,632
   Treasury stock - 75,706 shares in 2001 and 28,499 shares in 2000 at cost                       (789,175)            (283,564)
   Shares held by deferred compensation plan - 32,227 shares at cost
   in 2001 and 26,155 in 2000                                                                     (481,673)            (411,438)
   Retained earnings                                                                             6,407,032            5,852,284
   Accumulated other comprehensive income (loss), net of tax                                      (170,396)          (1,272,709)
                                                                                          -----------------   ------------------
     Total Shareholders' Equity                                                                 29,830,537           28,679,087
                                                                                          -----------------   ------------------

     Total Liabilities and Shareholders' Equity                                               $343,535,998        $ 323,885,801
                                                                                          =================   ==================

</TABLE>



    See accompanying notes to the condensed consolidated financial statements

                                                                               3

<PAGE>   4

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


<TABLE>
<CAPTION>
                                                                   THREE MONTHS ENDED                   SIX MONTHS ENDED
                                                                        JUNE 30,                            JUNE 30,
                                                                 2001              2000              2001              2000
                                                            ----------------  ---------------  -----------------  ----------------
<S>                                                         <C>               <C>              <C>                <C>
Interest and dividend income
  Loans, including fees                                         $ 4,269,846      $ 4,172,931        $ 8,607,630       $ 8,180,199
  Taxable securities                                              1,714,387        1,290,589          3,236,093         2,528,422
  Non-taxable securities                                            272,577          271,039            541,195           535,238
  Other interest and dividend income                                 63,887           64,624            139,630           148,668
                                                            ----------------  ---------------  -----------------  ----------------
      Total interest and dividend income                          6,320,697        5,799,183         12,524,548        11,392,527

Interest expense
  Deposits
    Demand                                                          228,829          268,143            508,027           493,788
    Savings                                                         182,283          274,664            413,365           553,726
    Time                                                          2,354,490        2,041,363          4,685,319         3,866,198
  Other borrowings                                                  431,832          367,253            915,939           790,083
                                                            ----------------  ---------------  -----------------  ----------------
      Total interest expense                                      3,197,434        2,951,423          6,522,650         5,703,795

Net interest income                                               3,123,263        2,847,760          6,001,898         5,688,732

Provision for loan losses                                           195,000          115,500            390,000           231,000
                                                            ----------------  ---------------  -----------------  ----------------


Net interest income after provision for loan losses               2,928,263        2,732,260          5,611,898         5,457,732

Noninterest income
  Service charges on deposit accounts                               231,263          216,549            443,394           389,198
  Other income                                                      154,095          118,245            310,079           270,174
                                                            ----------------  ---------------  -----------------  ----------------
      Total noninterest income                                      385,358          334,794            753,473           659,372

Noninterest expense
  Salaries and employee benefits                                  1,205,151        1,016,411          2,346,723         2,148,506
  Occupancy and equipment                                           372,768          365,774            741,793           715,024
  Other expenses                                                    840,240          749,334          1,589,451         1,557,667
                                                            ----------------  ---------------  -----------------  ----------------
      Total noninterest expense                                   2,418,159        2,131,519          4,677,967         4,421,197

Income before income taxes                                          895,462          935,535          1,687,404         1,695,907
  Income tax expense                                                158,786          230,200            345,395           414,250
                                                            ----------------  ---------------  -----------------  ----------------

Net income                                                      $   736,676      $   705,335        $ 1,342,009       $ 1,281,657
                                                            ================  ===============  =================  ================

Earnings per common share - Basic                               $      0.25      $      0.23        $      0.45       $      0.42
Earnings per common share - Diluted                             $      0.25      $      0.23        $      0.45       $      0.42
Dividends per common share                                      $      0.13      $      0.12        $      0.26       $      0.25
</TABLE>



    See accompanying notes to the condensed consolidated financial statements

                                                                               4

<PAGE>   5

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



<TABLE>
<CAPTION>
                                                                                                      TREASURY
                                                                                   ADDITIONAL         STOCK AND
                                                                  COMMON            PAID IN           DEFERRED         RETAINED
                                                                   STOCK            CAPITAL             PLAN           EARNINGS
                                                               --------------   ---------------    ---------------   --------------
<S>                                                            <C>              <C>                <C>               <C>
BALANCE AT JANUARY 1, 2000                                      $  2,942,885     $  19,660,205      $          -      $  6,542,711
  Net income                                                                                                             1,281,657
Stock issuance                                                        4,954             47,288
        Net change in unrealized gain/(loss) on
           securities available for sale
  Comprehensive income

Recognition of shares held by deferred
     compensation plan                                                                 370,198          (370,198)
  Cash dividends - $0.12 per share                                                                                        (765,150)
                                                               --------------   ---------------    --------------    ---------------
BALANCE AT JUNE 30, 2000                                        $  2,947,839     $  20,077,691      $   (370,198)     $  7,059,218
                                                               ==============   ===============    ==============    ===============

BALANCE AT JANUARY 1, 2001                                      $  3,094,882     $  21,699,632      $   (695,002)     $  5,852,284
  Net income                                                                                                             1,342,009
        Net change in unrealized gain/(loss) on
         securities available for sale

       Comprehensive income

Shares purchased for deferred compensation plan                                         70,235           (70,235)
Purchases of treasury stock - 47,207 shares at cost                                                     (505,611)
  Cash dividends - $0.13 per share                                                                                        (787,261)
                                                               --------------   ---------------    --------------    --------------
BALANCE AT JUNE 30, 2001                                        $  3,094,882     $  21,769,867      $ (1,270,848)     $  6,407,032
                                                               ==============   ===============    ==============    ==============



<CAPTION>
                                                                                     ACCUMULATED
                                                                                        OTHER
                                                                COMPREHENSIVE       COMPREHENSIVE
                                                                   INCOME              INCOME                TOTAL
                                                               ---------------     ---------------      --------------
<S>                                                            <C>                 <C>                  <C>
BALANCE AT JANUARY 1, 2000                                                          $ (3,847,828)        $ 25,297,973
  Net income                                                    $   1,281,657                               1,281,657
Stock issuance                                                                                                 52,242
        Net change in unrealized gain/(loss) on
           securities available for sale                             (153,935)          (153,935)            (153,935)
                                                               ---------------
  Comprehensive income                                          $   1,127,722
                                                               ===============
Recognition of shares held by deferred
     compensation plan
  Cash dividends - $0.12 per share                                                                           (765,150)
                                                                                   ---------------      --------------
BALANCE AT JUNE 30, 2000                                                            $ (4,001,763)        $ 25,712,787
                                                                                   ===============      ==============

BALANCE AT JANUARY 1, 2001                                                          $ (1,272,709)        $ 28,679,087
  Net income                                                    $   1,342,009                               1,342,009
        Net change in unrealized gain/(loss) on
         securities available for sale                              1,102,312          1,102,312            1,102,312
                                                                 -------------
       Comprehensive income                                     $   2,444,321
                                                                ==============
Shares purchased for deferred compensation plan
Purchases of treasury stock - 47,207 shares at cost                                                          (505,611)
  Cash dividends - $0.13 per share                                                                           (787,261)
                                                                                   ---------------      --------------
BALANCE AT JUNE 30, 2001                                                            $   (170,396)        $ 29,830,537
                                                                                   ===============      ==============


</TABLE>




    See accompanying notes to the condensed consolidated financial statements  5
<PAGE>   6
                              UNITED BANCORP, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                          SIX MONTHS ENDED
                                                                                              JUNE 30,
                                                                                  2001                        2000
                                                                         ----------------------------------------------------
<S>                                                                      <C>                         <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income                                                                          $  1,342,009                $  1,281,657
Adjustments to reconcile net income to net cash
    from operating activities
      Depreciation and amortization                                                      462,628                     443,259
      Provision for loan losses                                                          390,000                     231,000
      Deferred taxes                                                                      27,475                     (17,240)
      Federal Home Loan Bank stock dividend                                             (123,200)                    (78,000)
      Net realized gains on sales or calls of securities                                 (34,438)                    (16,674)
      (Accretion)/amortization of securities, net                                        (15,656)                      3,383
      Net realized gains on sales of loans                                               (28,255)                     (4,648)
      Amortization of mortgage servicing rights                                           27,599                      22,495
      Net changes in accrued interest receivable and other assets                       (575,032)                   (359,535)
      Net changes in accrued expenses and other liabilities                             (578,050)                   (417,233)
                                                                         ------------------------    ------------------------
      Net cash from operating activities                                                 895,080                   1,088,464

CASH FLOWS FROM INVESTING ACTIVITIES
Securities available for sale
  Sales                                                                                5,480,956                      17,367
  Maturities, prepayments and calls                                                   12,861,740                     303,084
  Purchases                                                                          (47,119,272)                 (5,999,063)
Securities held to maturity
  Maturities, prepayments and calls                                                    2,500,000
  Purchases                                                                             (277,305)                 (1,050,711)
Net change in loans                                                                    8,219,253                 (13,844,392)
Net purchases of premises and equipment                                                 (368,058)                 (1,112,629)
Proceeds from sale of real estate owned                                                  130,753
                                                                         ------------------------    ------------------------
      Net cash from investing activities                                             (18,571,933)                (21,686,344)

CASH FLOWS FROM FINANCING ACTIVITIES
Net change in deposits                                                                 3,406,472                  22,453,004
Net change in short-term borrowings                                                   16,793,941                  (3,362,992)
Principal payments on long-term debt                                                  (1,229,499)                   (512,565)
Treasury stock purchases                                                                (505,611)
Proceeds from stock issuance                                                                                          52,242
Cash dividends paid                                                                     (787,261)                   (765,150)
                                                                         ------------------------    ------------------------
      Net cash from financing activities                                              17,678,042                  17,864,539
                                                                         ------------------------    ------------------------

Net change in cash and cash equivalents                                                    1,189                  (2,733,341)

Cash and cash equivalents at beginning of year                                        10,694,118                  11,876,955
                                                                         ------------------------    ------------------------

Cash and cash equivalents at end of period                                          $ 10,695,307                $  9,143,614
                                                                         ========================    ========================

     Interest paid                                                                  $  6,449,642                $  5,613,289
     Income taxes paid                                                                   419,011                     549,470
</TABLE>




    See accompanying notes to the condensed consolidated financial statements  6
<PAGE>   7
                              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 June 30, 2001, and its results of operations and cash flows
     for the periods presented. All such adjustments are normal and recurring in
     nature. The accompanying condensed consolidated financial statements have
     been prepared in accordance with the instructions of Form 10-Q and,
     therefore, do not purport to contain all the necessary financial
     disclosures required by generally accepted accounting principles that might
     otherwise be necessary in the circumstances and should be read in
     conjunction with the consolidated financial statements, and related notes
     thereto, of the Company for the year ended December 31, 2000 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 2000 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, ("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. 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. Loan customers
     are mainly located in Athens, Belmont, Carroll, Fairfield, Harrison,
     Hocking, Jefferson, and Tuscarawas Counties and the surrounding localities
     in northeastern, eastern, southeastern, and central Ohio and include a wide
     range of individuals, business and other organizations. CITIZENS conducts
     its business through its main office in Martins Ferry, Ohio and nine
     branches in Bridgeport, Colerain, Dellroy, Dover, Jewett, New Philadelphia,
     St. Clairsville, Sherrodsville, and Strasburg, Ohio. COMMUNITY conducts its
     business through its main office in Lancaster and four branches in
     Lancaster, Glouster, Nelsonville and Amesville, Ohio.

     USE OF ESTIMATES:

          To prepare financial statements in conformity with generally accepted
     accounting principles, management makes estimates and assumptions based on
     available information. These




                                                                               7

<PAGE>   8
                              UNITED BANCORP, INC.
            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

     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.

     COMPREHENSIVE INCOME:

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

<TABLE>
<CAPTION>
                                                                THREE MONTHS ENDED                     SIX MONTHS ENDED
                                                                     JUNE 30,                               JUNE 30,
                                                             2001                2000               2001                2000
                                                         ------------        ------------       ------------         -----------
<S>                                                      <C>                 <C>                <C>                  <C>
Other comprehensive income:
      Unrealized holding gains on available
        for sale securities arising during period           (430,009)           (549,683)          1,704,774            (220,149)
      Reclassification adjustment for gains
       later recognized in income                            (10,224)              2,859             (34,438)            (16,674)
                                                         -----------         -----------         -----------         -----------
                                                            (440,233)           (546,824)          1,670,336            (236,823)

Tax effect                                                   149,598             188,654            (568,023)             82,888
                                                         -----------         -----------         -----------         -----------

Other comprehensive income                               $  (290,635)        $  (358,170)        $ 1,102,313         $  (153,935)
                                                         ===========         ===========         ===========         ===========
</TABLE>






                                                                               8

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


2.   SECURITIES:

                  Securities were as follows:


<TABLE>
<CAPTION>
                                                                      GROSS           GROSS
                                                  AMORTIZED        UNREALIZED       UNREALIZED        ESTIMATED
                                                     COST             GAINS           LOSSES          FAIR VALUE
                                               -----------------  --------------  ---------------  -----------------
<S>                                            <C>                <C>             <C>              <C>
AVAILABLE FOR SALE - JUNE 30, 2001
US Agency obligations                             $ 108,193,806       $ 211,369     $   (858,254)      $107,546,921
State and Municipal obligations                      13,436,046         377,360           (3,025)        13,810,381
Mortgage-backed securities                              174,764           1,525                             176,289
Other securities                                      3,500,200          12,925                           3,513,125
                                               -----------------  --------------  ---------------  -----------------
                                                  $ 125,304,816       $ 603,179     $   (861,278)      $125,046,716
                                               =================  ==============  ===============  =================


AVAILABLE FOR SALE - DECEMBER 31, 2000
US Agency obligations                             $  77,808,200        $ 62,193     $ (2,185,777)      $ 75,684,616
State and Municipal obligations                      13,247,607         207,123          (20,430)        13,434,300
Mortgage-backed obligations                           1,934,599                           (4,470)         1,930,129
Other securities                                      3,377,000          12,925                           3,389,925
                                               -----------------  --------------  ---------------  -----------------
                                                  $  96,367,406       $ 282,241     $ (2,210,677)      $ 94,438,970
                                               =================  ==============  ===============  =================


HELD TO MATURITY - JUNE 30, 2001
US Agency obligations
State and Municipal obligations                   $   8,591,898       $ 326,016     $     (5,362)      $  8,912,552
                                               -----------------  --------------  ---------------  -----------------
                                                  $   8,591,898       $ 326,016     $     (5,362)      $  8,912,552
                                               =================  ==============  ===============  =================


HELD TO MATURITY - DECEMBER 31, 2000
US Agency obligations                             $   2,495,865       $   2,432     $    (13,077)      $  2,485,220
State and Municipal obligations                       8,306,348         194,353          (39,670)      $  8,461,031
                                               -----------------  --------------  ---------------  -----------------
                                                  $  10,802,213       $ 196,785     $    (52,747)      $ 10,946,251
                                               =================  ==============  ===============  =================
</TABLE>


Sales of securities available for sale were as follows:

<TABLE>
<CAPTION>
                                                        THREE MONTHS ENDED                 SIX MONTHS ENDED
                                                              JUNE 30,                         JUNE 30,
                                                     2001              2000            2001              2000
                                                ---------------   -------------   --------------     --------------
<S>                                             <C>               <C>             <C>                <C>
Proceeds                                         $   1,707,440                     $  5,480,956       $     17,367
Gross gains                                             10,224                           34,438             19,534
Gross losses                                                             2,859                               2,859
</TABLE>




                                                                               9


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



2.   SECURITIES: (CONTINUED)

          Contractual maturities of securities at June 30, 2001 were as follows:

<TABLE>
<CAPTION>
AVAILABLE FOR SALE                                 AMORTIZED         ESTIMATED
                                                     COST           FAIR VALUE
                                                ----------------  ----------------
<S>                                             <C>               <C>
US Agency obligations
  Under 1 Year                                    $   1,000,000     $   1,005,000
  1 - 5   Years                                       1,374,090         1,379,640
  5 - 10  Years                                      42,485,715        42,582,039
  Over 10  Years                                     63,334,001        62,580,242
                                                ----------------  ----------------
  Total                                             108,193,806       107,546,921
                                                ----------------  ----------------
State and municipal obligations
  Under 1 Year                                        3,404,061         3,439,137
  1 - 5   Years                                       7,481,270         7,755,592
  5 - 10  Years                                       1,504,680         1,548,425
  Over 10  Years                                      1,046,035         1,067,227
                                                ----------------  ----------------
  Total                                              13,436,046        13,810,381
                                                ----------------  ----------------
Mortgage Backed securities
  5 - 10 Years                                          174,764           176,289
                                                ----------------  ----------------
   Total                                                174,764           176,289
                                                ----------------  ----------------
Other investments
  Equity securities                                   3,500,200         3,513,125
                                                ----------------  ----------------
Total securities available for sale               $ 125,304,816     $ 125,046,716
                                                ================  ================

HELD TO MATURITY

State and municipal obligations
  1 - 5   Years                                   $   2,951,331     $   3,068,766
  5 - 10  Years                                       3,829,679         3,998,762
  Over 10 Years                                       1,810,888         1,845,024
                                                ----------------  ----------------
  Total                                               8,591,898         8,912,552
                                                ----------------  ----------------
Total securities held to maturity                 $   8,591,898     $   8,912,552
                                                ================  ================
</TABLE>




Securities with a carrying value of approximately $59,259,257 at June 30, 2001
and $45,332,000 at December 31, 2000 were pledged to secure public deposits,
repurchase agreements and other liabilities as required or permitted by law.




                                                                              10


<PAGE>   11
                              UNITED BANCORP, INC.
            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS



3.   ALLOWANCE FOR LOAN LOSSES

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


<TABLE>
<CAPTION>
                                                                    THREE MONTHS ENDED                   SIX MONTHS ENDED
                                                                        JUNE 30,                              JUNE 30,
                                                                 2001                2000               2001              2000
                                                            ----------------   ----------------   ----------------  ----------------
<S>                                                         <C>                <C>                <C>               <C>
BEGINNING BALANCE                                            $    2,857,058     $    3,019,809     $    2,790,133    $    3,109,821
  Provision charged to operating expense                            195,000            115,500            390,000           231,000
  Loans charged-off                                                (274,550)          (130,671)          (528,552)         (375,772)
  Recoveries                                                         61,762             83,089            187,689           122,678
                                                            ----------------   ----------------   ----------------  ----------------
Ending Balance                                               $    2,839,270     $    3,087,727     $    2,839,270    $    3,087,727
                                                            ================   ================   ================  ================
</TABLE>



          Non-performing loans were as follows:

<TABLE>
<CAPTION>
                                                               JUNE 30,        DECEMBER 31,
                                                                 2001              2000
                                                            --------------    --------------
<S>                                                         <C>               <C>
Loans past due over 90 days still on accrual                 $     55,091      $    124,000
Nonaccrual Loans                                             $    647,353           793,360
</TABLE>



          Loans considered impaired under the provisions of SFAS No. 114 were
     not material at June 30, 2001 and December 31, 2000 or for the three and
     six months ended June 30, 2001 and 2000. Nonperforming loans include all
     impaired loans and smaller balance homogenous loans, such as residential
     mortgage and consumer loans that are collectively excluded for impairment.

4.   COMMITMENTS, OFF-BALANCE SHEET RISK AND CONTINGENCIES

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

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

          Exposure to credit loss if the other party does not perform is
     represented by the contractual amount for commitments to extend credit,
     standby letters of credit and financial guarantees written. The same credit
     policies are used for commitments and conditional obligations as are used
     for loans. The amount of collateral obtained, if deemed necessary, upon
     extension of credit is based on management's credit evaluation. Collateral
     varies, but may include


                                                                              11


<PAGE>   12
                              UNITED BANCORP, INC.
            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS



     accounts receivable, inventory, property, equipment, income-producing
     commercial properties, residential real estate and consumer assets.


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 June 30, 2001 and December 31,
     2000 follows:
<TABLE>
<CAPTION>
                                                               JUNE 30,         DECEMBER 31,
                                                                 2001               2000
                                                            --------------     --------------
<S>                                                         <C>                <C>
Commitments to extend credit                                 $ 19,053,317       $ 16,656,030
Credit card and ready reserve lines                             1,276,168          1,256,090
Standby letters of credit                                         335,990            596,000
</TABLE>


          At June 30, 2001, and included above, commitments to make fixed-rate
     loans totaled $2,377,105 with the interest rates on those fixed-rate
     commitments ranging from 6.95% to 10.00%. At December 31, 2000, commitments
     to make fixed rate loans totaled $2,740,105 with interest rates on those
     fixed-rate commitments ranging from 7.50% to 10.00%.




                                                                              12
<PAGE>   13
                              UNITED BANCORP, INC.
            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS



5.   EARNINGS PER SHARE

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

<TABLE>
<CAPTION>
                                                                       THREE MONTHS ENDED              SIX MONTHS ENDED
                                                                           JUNE 30,                         JUNE 30,
                                                                      2001            2000             2001             2000
                                                                 -------------   --------------  ---------------   -------------
<S>                                                              <C>             <C>             <C>               <C>
BASIC
     Net income                                                    $   736,676     $    705,335    $  1,342,009     $ 1,281,657
                                                                  =============   ==============  ==============   =============

     Weighted average common shares outstanding                      2,991,689        3,090,087       3,005,655       3,090,058
                                                                  =============   ==============  ==============   =============

      Basic earnings per common share                              $      0.25     $       0.23    $       0.45     $      0.42
                                                                  =============   ==============  ==============   =============

DILUTED
     Net income                                                    $   736,676     $    705,335    $  1,342,009     $ 1,281,657
                                                                  =============   ==============  ==============   =============

     Weighted average common shares outstanding for
           basic earnings per common share                           2,991,689        3,090,087       3,005,655       3,090,058
     Add:  Dilutive effects of assumed exercised of stock
           options                                                       2,480            4,587           1,504           4,552
                                                                  -------------   --------------  --------------   -------------

     Average shares and dilutive potential common shares             2,994,169        3,094,674       3,007,159       3,094,610
                                                                  =============   ==============  ==============   =============

     Average shares and dilutive potential common shares           $      0.25     $       0.23    $       0.45     $      0.42
                                                                  =============   ==============  ==============   =============

Number of stock options not considered in computing
diluted earnings per share due to antidilutive nature                   20,743           18,191          20,743          18,191
</TABLE>





                                                                              13
<PAGE>   14
                              UNITED BANCORP, INC.
      MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
                                  OF OPERATION

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 June 30, 2001, as compared to December 31, 2000 and the results of
          operations for the three and six months ended June 30, 2001 compared
          to the same periods in 2000. 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 or to
          reflect the occurrence of anticipated or unanticipated events.















                                                                              14

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


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

<TABLE>
<S>               <C>      <C>
         >>       1902     Original banking charter granted for The German
                           Savings Bank (later changed to The Citizens Savings
                           Bank).
         >>       1974     Construction of a full-service branch banking
                           facility 6 miles west in Colerain, Ohio.
         >>       1978     Construction of a full-service branch banking
                           facility 2 miles south in Bridgeport, Ohio.
         >>       1980     Construction of a limited-service auto-teller banking
                           location in Martins Ferry, Ohio.
         >>       1983     Creation of United Bancorp, Inc. as a single-bank
                           holding company through acquisition of 100% of the
                           voting stock of The Citizens Savings Bank of Martins
                           Ferry, Ohio ("CITIZENS"). Also, began operation of
                           Automated Teller Machine ("ATM") in Aetnaville, Ohio.
         >>       1984     CITIZENS opened a newly constructed 21,500 square
                           foot main-office facility in Martins Ferry, Ohio,
                           adjacent to the auto-teller facility built in 1980.
         >>       1986     United Bancorp, Inc. became a multi-bank holding
                           company through the acquisition of 100% of the voting
                           stock of The Citizens-State Bank of Strasburg,
                           Strasburg, Ohio, merged into CITIZENS in 1999.
         >>       1990     CITIZENS converted from third-party data processing
                           to in-house data processing. CITIZENS constructed a
                           full-service branch bank 6 miles south of Strasburg
                           in Dover, Ohio.
         >>       1992     CITIZENS acquired two branch bank locations in New
                           Philadelphia and Sherrodsville, Ohio.
         >>       1993     CITIZENS relocated Data Processing, Accounting and
                           Bookkeeping to a renovated Operations Center across
                           from the main office in Martins Ferry, Ohio.
         >>       1994     CITIZENS purchased a branch bank in Dellroy, Ohio.
         >>       1996     CITIZENS converted to check imaging and optical
                           character recognition for data processing.
         >>       1997     CITIZENS opened a full-service Retail Banking Center
                           inside Riesbeck's Food Markets, Inc.'s St.
                           Clairsville, Ohio store. Additionally, CITIZENS
                           introduced a Secondary Market Real Estate Mortgage
                           Program available for all locations and introduced a
                           MasterCard(R)Check Card to the local market area.
         >>       1998     CITIZENS increased ATM network by four cash dispenser
                           machines in various Riesbecks' Food Markets.
         >>       1998     Effective July 7, 1998, the acquisition of Southern
                           Ohio Community Bancorporation, Inc. was completed and
                           The Community Bank, Glouster, Ohio ("COMMUNITY") was
                           added as a separate banking charter to the Company.
         >>       1999     January 28, 1999 CITIZENS acquired a full service
                           banking facility in Jewett, Ohio
         >>       1999     March 1999 COMMUNITY opened a Loan Production Office
                           in Lancaster, Ohio.
         >>       1999     CITIZENS established a full service brokerage
                           division to be known as Brokerage United with
                           securities provided through Raymond James Financial
                           Services, Inc., member NASD/SIPC.
         >>       1999     COMMUNITY moved their main office to Lancaster, Ohio.
         >>       2000     COMMUNITY opened a new branch in Lancaster and their
                           auto teller for the main office.
         >>       2000     CITIZENS and COMMUNITY introduced Electronic Banking.
</TABLE>



                                                                              15
<PAGE>   16
                              UNITED BANCORP, INC.
      MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
                                  OF OPERATION


          ANALYSIS OF FINANCIAL CONDITION

          EARNING ASSETS - LOANS

               At June 30, 2001, gross loans were $187,937,000 compared to
          $196,497,000 at year-end 2000, a decrease of 4.4%. The decrease in
          total outstanding loans was the result of a decline in the commercial
          and installment portfolios. Management attributes the overall decrease
          in loans to the general economic slow-down in the lending markets
          served.

               Installment loans, with continued emphasis placed on the indirect
          automobile lending market, decreased to 26.8% of total loans at June
          30, 2001 compared to 28.2% at year-end 2000. 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 9.5%, or
          $3,180,000 decline in installment loans while COMMUNITY had a decrease
          of 7.9%, or $1,715,000 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 to lower 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 44.0% of
          total loans at June 30, 2001 compared to 43.4% at December 31, 2000.
          Commercial and commercial real estate loans have decreased $2,634,000
          or 3.1% since December 31, 2000. The Company has originated and
          purchased participations in loans from other banks for out-of-area
          commercial and commercial real estate loans to benefit from consistent
          economic growth outside the Company's primary market area. The
          majority of these loans are secured by real estate holdings comprised
          of hotels, motels and churches located in various geographic
          locations, including Columbus and the Akron-Canton, Ohio metropolitan
          areas. Out-of-area loans at June 30, 2001 were 6.8% of total loans and
          15.4% of total commercial and commercial real estate loans compared to
          6.9% and 16.0% at year-end 2000.

               Real estate loans were 29.2% of total loans at June 30, 2001
          compared to 28.4% at year-end 2000. Real estate loans decreased 1.8%
          since December 31, 2000. However, COMMUNITY actually experienced an
          increase in real estate loans of 5.9% or $1,074,000. 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 code 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


                                                                              16


<PAGE>   17
                              UNITED BANCORP, INC.
      MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
                                  OF OPERATION


          absorb probable incurred credit losses associated with the loan
          portfolio. Net charge-offs for the six months ended June 30, 2001 were
          approximately $341,000, or 12.2%, of the beginning balance in the
          allowance for loan losses compared to $253,000, or 8.1%, of the
          beginning balance for loan losses for the six months ended June 30,
          2000. During the first half of 2001, net charge-offs for consumer
          loans totaled approximately $217,000 compared to $132,000 for the
          first half of                                                    2000.

          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 June
          30, 2001 increased approximately $30,608,000, or 32.4% from year-end
          2000 totals. Securities held to maturity at June 30, 2001 decreased
          approximately $2,210,000, or 20.5% compared to year-end 2000 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 June 30, 2001, total core deposits decreased
          approximately $2.1 million primarily from a decrease of
          interest-bearing demand deposits and savings deposits of $2.6 million
          and $0.5 million, respectively. This was partly offset by an increase
          in time deposits under $100,000 of $559,000.

               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 June 30, 2001, certificates of
          deposit greater than $100,000 increased approximately $5.5 million, or
          18.8% from year-end 2000 totals. The majority of the increase,
          approximately $4.6 million, came from COMMUNITY'S growth in the public
          agency account relationships.

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

               Other interest-bearing liabilities include securities sold under
          agreements to repurchase, sweep accounts, federal funds purchased,
          Treasury, Tax & Loan notes payable and Federal Home Loan Bank ("FHLB")
          advances. In the first six months of 2001, 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



                                                                              17

<PAGE>   18
                              UNITED BANCORP, INC.
      MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
                                  OF OPERATION


          governments. Total other borrowings increased approximately
          $15,564,000 million, or 59.6% from year-end 2000 totals. Management
          took advantage of the favorable interest rate environment and
          leveraged both CITIZENS and COMMUNITY through the use of FHLB advances
          and the purchasing of fixed rate government agency securities. This
          strategy was deemed prudent in light of the general slow-down in the
          Company's lending activities related specifically to a sluggish
          economy. Management focused on purchasing investment securities to
          maintain the Company's earning assets at a level to support growth in
          earnings for 2001.


















                                                                              18
<PAGE>   19
                              UNITED BANCORP, INC.
      MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
                                  OF OPERATION

RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2001

NET INCOME

     Basic earnings per share for the six months ended June 30, 2001 was $0.45,
compared with $0.42 for the six months ended June 30, 2000. Net income increased
$60,000 for six months ended June 30, 2001, compared to the same period in 2000.
On an annualized basis, Return on Average Assets (ROA) was 0.80% and Return on
Average Equity (ROE) was 9.1% compared to ROA of .85% and ROE of 10.27% for the
six months ended June 30, 2000.

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 increased 5.5% for the six months ended June 30, 2001 compared
to the same period in 2000.

     Total interest income for the six months ended June 30, 2001 was
$12,525,000 compared to $11,393,000 for the same period in 2000. Total interest
income increased $1,132,000, or 9.9%. The increase can be attributed to the
overall growth in the Company's interest-earning assets, mainly investment
securities.

     Total interest expense for the six months ended June 30, 2001 when compared
to the same six months period ended June 30, 2000, increased 14.4%, or $819,000.
The Company has experienced an increase in interest expense due to an increased
use of time deposits to fund growth and capture market share in Fairfield
County.


PROVISION FOR LOAN LOSSES

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

     The total provision for loan losses was $390,000 for the six months ended
June 30, 2001 compared to $231,000 for the same period in 2000. Management
increased the provision in 2001 due to an anticipated increase in net
charge-offs for the fiscal year and as a result of projected loan growth. The
Company has not experienced the loan growth it anticipated in 2001, however,
with the slow down in the overall economic cycle, Management felt it was prudent
at this point not to reduce the provision expense.

NONINTEREST INCOME

     Total noninterest income is made up of bank related fees and service
charges, as well as other income producing services provided, sale of secondary
market loans, ATM income, early redemption penalties for certificates of
deposits, safe deposit rental income and other miscellaneous items. Noninterest
income for the six months ended June 30, 2001 was $753,000 compared to $659,000
for the same six-month period ended June 30, 2000. For the six months ended June
30, 2001 compared to the same period in 2000, noninterest income increased
approximately 14.3%. The increase in noninterest income can be



                                                                              19

<PAGE>   20
                              UNITED BANCORP, INC.
      MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
                                  OF OPERATION


attributed to an increase in security gains of approximately $15,000. a gain of
23,500 on the sale of an OREO property and increases in service charges on
deposit accounts.

NONINTEREST EXPENSE

     Noninterest expense for the six months ended June 30, 2001 increased 5.8%
over the six months ended June 30, 2000. The increase is attributable to an
approximate increase of $198,000 in employee salary and benefits. This is a
result of increased benefit costs namely health care and employee salary
adjustments.


RESULTS OF OPERATIONS FOR THREE MONTHS ENDED JUNE 30, 2001

NET INCOME

     Basic earnings per share for the three months ended June 30, 2001 was
$0.25, compared with $0.23 for the three months ended June 30, 2000. Net income
increased $31,000 for three months ended June 30, 2001, compared to the same
period in 2000. On an annualized basis, Return on Average Assets (ROA) was 0.88%
and Return on Average Equity (ROE) was 10.0% compared to ROA of 0.93% and ROE of
11.3% for the three months ended June 30, 2000.

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 increased 9.7% for the three months ended June 30, 2001 compared
to the same period in 2000. The increase was a result of the Company having a
larger base of average earning assets combined with a decrease in short-term
interest rates. Management anticipates the short-term impact to continue over
the next several quarters if short-term rates continue at their current levels.
As a result of the decline in short term interest rates, Management was able to
lower the Company's overall cost of funds.

     Total interest income for the three months ended June 30, 2001 was
$6,321,000 compared to $5,799,000 for the same period in 2000. Total interest
income increased $522,000, or 9.0%. The increase can be attributed to the
overall growth in the Company's interest-earning assets do mainly in part by a
significant volume of security purchases in the early part of 2001. Please refer
to the page 6 Condensed Consolidated Statements of Cash Flows for further
details on investment activity.

     Total interest expense for the three months ended June 30, 2001 when
compared to the same three month period ended June 30, 2000, increased 8.3%, or
$246,000. The Company has experienced an increase in interest expense due to an
increase use of FHLB advances to fund security purchases. The security purchases
will help offset the loss of interest income due to an anticipated soft loan
market in 2001. Management has been proactive in lowering deposit product rates
as the overall rate environment began to decrease in January of this year.


                                                                              20
<PAGE>   21
                              UNITED BANCORP, INC.
      MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
                                  OF OPERATION



PROVISION FOR LOAN LOSSES

     The total provision for loan losses was $195,000 for the three months ended
June 30, 2001 compared to $115,500 for the same period in 2000. Management
increased the provision in 2001 due to an anticipated increase in net
charge-offs for the fiscal year and as a result of projected loan growth. The
Company has not experienced the loan growth it anticipated in 2001, however,
with the slow down in the overall economic cycle, Management felt it was prudent
at this point not to reduce the provision expense.

NONINTEREST INCOME

     Total noninterest income is made up of bank related fees and service
charges, as well as other income producing services provided, sale of secondary
market loans, ATM income, early redemption penalties for certificates of
deposits, safe deposit rental income and other miscellaneous items. Noninterest
income for the three months ended June 30, 2001 was $385,000 compared to
$335,000 for the same three months period ended June 30, 2000. For the three
months ended June 30, 2001 compared to the same period in 2000, noninterest
income increased approximately 15.1%. As previously discussed, an increase in
security gains of $10,000 along with an OREO gain of $23,500 were the main
contributors to the added additional noninterest income for the three months
ended June 30, 2001.

NONINTEREST EXPENSE

     Noninterest expense for the three months ended June 30, 2001 increased
$287,000 or 13.4% over the three months ended June 30, 2000. Salary and benefit
expense increased approximately $189,000 for the three months ended June 30,
2001 as a result of rising benefit costs. Other expenses increased $90,906 or
12.1% from 2000 to 2001 primarily as a result of the expansion into our Internet
banking program in December 2000.

CAPITAL RESOURCES

     Internal capital growth, through the retention of earnings, is the primary
means of maintaining capital adequacy for the Company. Shareholders' equity at
June 30, 2001 was $29,831,000 compared to $28,679,000 at December 31, 2000, a
4.0% increase. Total shareholders' equity in relation to total assets was 8.68%
at June 30, 2001 and 8.85% at December 31, 2000. In May 2001 our shareholders
approved to amend 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 maintains a deferred compensation plan for its Directors. The
plan permits the Directors to defer into a Rabbi Trust all or a portion of their
director fees. The plan is being accounted for under the provisions of EITF
97-14.




                                                                              21
<PAGE>   22
                              UNITED BANCORP, INC.
      MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
                                  OF OPERATION



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

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

     The minimum requirements are:


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



     The following table illustrates the Company's risk-weighted capital ratios
at June 30, 2001:

<TABLE>
<CAPTION>
                                                               JUNE 30,
                      (IN THOUSANDS)                             2001
                                                            ---------------
<S>                                                         <C>
Tier 1 capital                                               $      29,876
Total risk-based capital                                     $      32,441
Risk-weighted assets                                         $     208,124
Average total assets                                         $     338,649

Tier 1 capital to average assets                                      8.82%
Tier 1 risk-based capital ratio                                      14.35%
Total  risk-based capital ratio                                      15.59%
</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



                                                                              22


<PAGE>   23
                              UNITED BANCORP, INC.
      MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
                                  OF OPERATION


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 six months ended June 30, 2001, the adjustments to reconcile net
income to net cash from operating activities consisted mainly of depreciation
and amortization of premises and equipment and intangibles, the provision for
loan losses, net amortization of securities and net changes in other assets and
liabilities. Cash and cash equivalents remained relatively stable as a result of
a decrease in loan and deposit volume and the use of borrowed funds to purchase
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 Generally Accepted
Accounting Principles (GAAP). GAAP currently requires the Company to measure the
financial position and results of operations in terms of historical dollars,
with the exception of securities available for sale, impaired loans and other
real estate loans that are measured at fair value. Changes in the value of money
due to rising inflation can cause purchasing power loss.

     Management's opinion is that movements in interest rates 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.




                                                                              23
<PAGE>   24
                              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 94% of the portfolio compared to
the 6% for held to maturity securities. The Company primarily invests in US
Agency obligations and State and Municipal obligations and has a modest amount
invested in mortgage-backed securities. Due to total securities approximating
39% of total assets and a significant portion of its loan portfolio consisting
of fixed rate loans, the Company is particularly sensitive to periods of rising
interest rates. In such periods, the Company's net interest spread is negatively
affected because the interest rate paid on deposits increases faster than the
rates earned on loans. Management is continuing to originate variable rate
mortgage loans as the primary means to manage this risk. In addition, the
Company also originates consumer and commercial loans, which make up a
significant percentage of the overall loan portfolio. Consumer loans typically
have a significantly shorter weighted-average maturity and offer less exposure
to interest rate risks while commercial loans generally carry variable interest
rates.

     Management measures the Company's interest rate risk by computing estimated
changes in net interest income and the net portfolio value ("NPV") of its cash
flows from assets, liabilities and off-balance sheet items in the event of a
range of assumed changes in market interest rates. 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-JUNE 30, 2001

CHANGE IN RATES         $ AMOUNT   $ CHANGE     % CHANGE
                       ------------------------------------
<S>                    <C>         <C>          <C>
Up 200                   $ 38,157    $ (7,556)    -16.53%

Up 100                   $ 50,468    $  4,755      10.40%

Base                     $ 45,713

Down 100                 $ 45,473    $   (240)     -0.53%

Down 200                 $ 40,715    $ (4,998)    -10.93%

<CAPTION>
                  (Dollars in Thousands)
-----------------------------------------------------------
           NET PORTFOLIO VALUE-DECEMBER 31, 2000

CHANGE IN RATES         $ AMOUNT   $ CHANGE     % CHANGE
                       ------------------------------------
<S>                    <C>         <C>          <C>
Up 200                   $ 24,728    $ (7,351)    -22.92%

Up 100                   $ 34,210    $  2,131       6.64%

Base                     $ 32,079

Down 100                 $ 31,398    $   (681)     -2.12%

Down 200                 $ 31,734    $   (345)     -1.08%
</TABLE>







                                                                              24

<PAGE>   25
                              UNITED BANCORP, INC.
           QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK



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

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





















                                                                              25

<PAGE>   26
                              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

          The following matters were submitted to a vote of security holders at
          the Annual meeting April 18, 2001, which meeting was adjourned and
          reconvened on May 19, 2001.

          Election of Directors for the class of 2003 to include the following:

               James W. Everson         Ayes 2,488,949  Withheld 13,831
               John M. Hoopingarner     Ayes 2,487,283, Withheld 15,497
               Richard L. Riesbeck      Ayes 2,482,725, Withheld 20,055
               Matthew C. Thomas        Ayes 2,485,566, Withheld 17,224

          Authorization of Preferred Shares: Ayes 2,084,415, Nays 349,433,
          Abstain 59,385

          Elimination of Cumulative Voting: Ayes 2,133,888, Nays 297,499,
          Abstain 61,843

          Addition of Supermajority Shareholder Vote and Fair Price Provisions:

          Ayes 2,189,427, Nays 250,697, Abstain 53,110

          Shareholder Vote Required: Ayes 2,241,801, Nays 199,688, Abstain
          51,742

          Technical Revisions to the Articles of Incorporation: Ayes 2,248,627,
          Nays 151,075, Abstain 93,529

ITEM 5.   OTHER INFORMATION
          Not applicable.

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

          (a)  Exhibits

          (b)  The registrant filed no current reports on Form 8-K during the
               quarter ended June 30, 2001.




                                                                              26


<PAGE>   27
                              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.






    August 4, 2001                          By:   /s/ James W. Everson
------------------------------                    -----------------------------
    Date                                          James W. Everson
                                                  Chairman, President & Chief
                                                  Executive Officer






    August 4, 2001                          By:   /s/ Randall M. Greenwood
------------------------------                    -----------------------------
    Date                                          Randall M. Greenwood
                                                  Chief Financial Officer





                                                                              27