<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      MARCH 31, 2001

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

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

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


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

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


              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 3,034,176 SHARES AS OF APRIL 26, 2001
      -------------------------------------------------------------------



<PAGE>   2


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

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

   ITEM 1. Financial Statements

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

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

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

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

     Notes to the Condensed Consolidated Financial Statements.....................7 - 12

   ITEM 2. Management's Discussion and Analysis of Financial Condition
     and Results of Operations...................................................13 - 20

   ITEM 3. Quantitative and Qualitative Disclosures About Market Risk............21 - 22


PART II  OTHER INFORMATION

   ITEM 1.
     Legal Proceedings................................................................23

   ITEM 2.
     Changes in Securities and Use of Proceeds........................................23

   ITEM 3.
     Default Upon Senior Securities...................................................23

   ITEM 4.
     Submission of Matters to a Vote of Security Holders..............................23

   ITEM 5.
     Other Information................................................................23

   ITEM 6.
     Exhibits and Reports on Form 8-K.................................................23

   SIGNATURES.........................................................................24
</TABLE>



                                                                               2
<PAGE>   3


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

PART I  FINANCIAL INFORMATION
         ITEM 1. FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
                                                                                           MARCH 31,        DECEMBER 31,
                                                                                             2001              2000
                                                                                         -------------     -------------
<S>                                                                                      <C>               <C>
ASSETS
Cash and due from Financial Institutions                                                 $   7,368,947     $  10,694,118

Securities available for sale                                                              117,106,380        94,438,970
Securities held to maturity
(Estimated fair value of $9,965,493 at 03/30/01 and $10,946,251 at 12/31/00)                 9,585,976        10,802,213
Loans receivable
  Commercial loans                                                                          19,325,385        20,414,810
  Commercial real estate loans                                                              63,717,393        64,811,940
  Real estate loans                                                                         55,489,205        55,931,621
  Installment loans                                                                         53,299,216        55,338,861
                                                                                         -------------     -------------
    Total loans receivable                                                                 191,831,199       196,497,232
Allowance for loan losses                                                                   (2,857,058)       (2,790,133)
                                                                                         -------------     -------------
    Net loans receivable                                                                   188,974,141       193,707,099
Premises and equipment, net                                                                  9,630,112         9,521,046
Accrued interest receivable and other assets                                                 4,394,122         4,722,355
                                                                                         -------------     -------------

  Total Assets                                                                           $ 337,059,678     $ 323,885,801
                                                                                         =============     =============

LIABILITIES
Demand deposits
  Noninterest-bearing                                                                    $  21,267,883     $  22,708,636
  Interest-bearing                                                                          43,071,205        45,470,957
Savings deposits                                                                            48,667,504        49,158,941
Time deposits - under $100,000                                                             121,530,176       120,797,039
Time deposits - $100,000 and over                                                           32,743,254        29,417,302
                                                                                         -------------     -------------
    Total deposits                                                                         267,280,022       267,552,875
Securities sold under agreements to repurchase                                               9,561,416         4,861,430
Other borrowed funds                                                                        28,822,648        21,247,616
Accrued expenses and other liabilities                                                       1,460,102         1,544,793
                                                                                         -------------     -------------
    Total Liabilities                                                                      307,124,189       295,206,714

SHAREHOLDERS' EQUITY
Common stock - $1 Par Value: 10,000,000 shares authorized;
  3,094,882  issued                                                                          3,094,882         3,094,882
Additional paid in capital                                                                  21,755,335        21,699,632
Treasury stock - 60,706 shares in 2001and 28,499 shares in 2000 at cost                       (630,675)         (283,564)
Shares held by deferred compensation plan - 30,985 shares at cost
in 2001 and 26,364 in 2000                                                                    (467,141)         (411,438)
Retained earnings                                                                            6,062,849         5,852,284
Accumulated other comprehensive income(loss), net of tax                                       120,239        (1,272,709)
                                                                                         -------------     -------------
  Total Shareholders' Equity                                                                29,935,489        28,679,087
                                                                                         -------------     -------------

  Total Liabilities and Shareholders' Equity                                             $ 337,059,678     $ 323,885,801
                                                                                         =============     =============
</TABLE>



        See accompanying notes to the consolidated financial statements        3
<PAGE>   4


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

<TABLE>
<CAPTION>
                                                         THREE MONTHS ENDED
                                                              MARCH 31,
                                                          2001          2000
                                                       ----------    ----------
<S>                                                    <C>           <C>
Interest and dividend income
  Loans, including fees                                $4,337,784    $4,007,268
  Taxable securities                                    1,521,706     1,237,833
  Non-taxable securities                                  268,618       264,199
  Other interest and dividend income                       75,743        84,044
                                                       ----------    ----------
      Total interest and dividend income                6,203,851     5,593,345

Interest expense
  Deposits
    Demand                                                279,198       225,646
    Savings                                               231,082       279,062
    Time                                                2,330,829     1,824,836
  Other borrowings                                        484,106       422,829
                                                       ----------    ----------
      Total interest expense                            3,325,216     2,752,373

Net interest income                                     2,878,635     2,840,972

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

Net interest income after provision for loan losses     2,683,635     2,725,472

Noninterest income
  Service charges on deposit accounts                     212,131       172,649
  Other income                                            155,984       151,929
                                                       ----------    ----------
      Total noninterest income                            368,115       324,578

Noninterest expense
  Salaries and employee benefits                        1,141,572     1,132,095
  Occupancy and equipment                                 369,025       349,250
  Other expenses                                          749,211       808,333
                                                       ----------    ----------
      Total noninterest expense                         2,259,809     2,289,678

Income before income taxes                                791,942       760,372
  Income tax expense                                      186,609       184,050
                                                       ----------    ----------

Net income                                             $  605,333    $  576,322
                                                       ==========    ==========

Earnings per common share - Basic                      $     0.20    $     0.19
Earnings per common share - Diluted                    $     0.20    $     0.19
Dividends per common share                             $     0.13    $     0.12
</TABLE>


        See accompanying notes to the 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                                                                                                              576,322
        Net change in unrealized gain/(loss) on
           securities available for sale
  Comprehensive income

Recognition of shares held by deferred
     compensation plan                                                             350,692           (350,692)
  Cash dividends - $0.12 per share                                                                                       (382,575)
                                                     ------------------ ------------------- ------------------- ------------------
BALANCE AT MARCH 31, 2000                                  $ 2,942,885        $ 20,010,897       $   (350,692)        $ 6,736,458
                                                     ================== =================== =================== ==================

BALANCE AT JANUARY 1, 2001                                 $ 3,094,882        $ 21,699,632       $   (695,002)        $ 5,852,284
  Net income                                                                                                              605,333
        Net change in unrealized gain/(loss) on
         securities available for sale

       Comprehensive income

Shares purchased for deferred compensation plan                                     55,703            (55,703)
Purchases of treasury stock - 32,207 shares at cost                                                  (347,111)
  Cash dividends - $0.13 per share                                                                                       (394,768)
                                                     ------------------ ------------------- ------------------- ------------------
BALANCE AT MARCH 31, 2001                                  $ 3,094,882        $ 21,755,335       $ (1,097,816)        $ 6,062,849
                                                     ================== =================== =================== ==================
</TABLE>

<TABLE>
<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                                               $   576,322                               576,322
        Net change in unrealized gain/(loss) on
           securities available for sale                       203,359           203,359             203,359
  Comprehensive income                                     $   779,681
                                                     ==================
Recognition of shares held by deferred
     compensation plan
  Cash dividends - $0.12 per share                                                                  (382,575)
                                                                        ----------------- -------------------
BALANCE AT MARCH 31, 2000                                                   $ (3,644,469)       $ 25,695,079
                                                                        ================= ===================

BALANCE AT JANUARY 1, 2001                                                  $ (1,272,709)       $ 28,679,087
  Net income                                               $   605,333                               605,333
        Net change in unrealized gain/(loss) on
         securities available for sale                       1,392,948         1,392,948           1,392,948
                                                     ------------------
       Comprehensive income                                $ 1,998,281
                                                     ==================
Shares purchased for deferred compensation plan
Purchases of treasury stock - 32,207 shares at cost                                                 (347,111)
  Cash dividends - $0.13 per share                                                                  (394,768)
                                                                        ----------------- -------------------
BALANCE AT MARCH 31, 2001                                                  $     120,239        $ 29,935,489
                                                                        ================= ===================
</TABLE>


        See accompanying notes to the consolidated financial statements        5
<PAGE>   6

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

<TABLE>
<CAPTION>
                                                                          THREE MONTHS ENDED
                                                                               MARCH 31,
                                                                         2001             2000
                                                                     ------------     ------------
<S>                                                                  <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income                                                           $    605,333     $    576,322
Adjustments to reconcile net income to net cash
    from operating activities
      Depreciation and amortization                                       238,375          209,606
      Provision for loan losses                                           195,000          115,500
      Deferred taxes                                                       27,475          (17,240)
      Federal Home Loan Bank stock dividend                               (62,700)         (23,200)
      Net realized gains on sales or calls of securities                  (24,214)         (19,534)
      (Accretion)/amortization of securities, net                          (8,540)           3,564
      Net realized gains on sales of loans                                 (7,424)          (2,595)
      Amortization of mortgage servicing rights                            13,680           11,561
      Net changes in accrued interest receivable and other assets        (314,814)        (448,002)
      Net changes in accrued expenses and other liabilities              (199,888)        (306,581)
                                                                     ------------     ------------
      Net cash from operating activities                                  462,283           99,401

CASH FLOWS FROM INVESTING ACTIVITIES
Securities available for sale
  Sales                                                                 3,773,516           17,367
  Maturities, prepayments and calls                                     6,483,358          217,363
  Purchases                                                           (30,724,719)
Securities held to maturity
  Maturities, prepayments and calls                                     1,500,000
  Purchases                                                              (277,305)
Net change in loans                                                     4,537,958       (4,207,338)
Net purchases of premises and equipment                                  (340,549)        (689,004)
                                                                     ------------     ------------
      Net cash from investing activities                              (15,047,741)      (4,661,612)

CASH FLOWS FROM FINANCING ACTIVITIES
Net change in deposits                                                   (272,853)      16,043,204
Net change in short-term borrowings                                    12,430,358      (14,577,338)
Principal payments on long-term debt                                     (155,340)        (162,665)
Treasury stock purchases                                                 (347,111)
Cash dividends paid                                                      (394,768)        (382,575)
                                                                     ------------     ------------
      Net cash from financing activities                               11,260,287          920,626
                                                                     ------------     ------------

Net change in cash and cash equivalents                                (3,325,171)      (3,641,585)

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

Cash and cash equivalents at end of period                           $  7,368,947     $  8,235,370
                                                                     ============     ============

     Interest paid                                                   $  3,323,910     $  2,715,292
     Income taxes paid                                                                     179,470
</TABLE>



        See accompanying notes to the consolidated financial statements        6
<PAGE>   7


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

1.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

                  These interim condensed consolidated financial statements are
         prepared without audit and reflect all adjustments which, in the
         opinion of management, are necessary to present fairly the financial
         position of United Bancorp, Inc. ("Company") at March 31, 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 CONSOLIDATION:
                  The condensed 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 segment. Loan customers are mainly located in Athens,
         Belmont, Carroll, Fairfield, Harrison, Hocking, Jefferson, and
         Tuscarawas Counties and the surrounding localities in northeastern,
         eastern, southeastern, and central Ohio and include a wide range of
         individuals, business and other organizations. A major portion of loans
         are secured by various forms of collateral including real estate,
         business assets, consumer property and other items. Commercial loans
         are expected to be repaid from cash flows of the business. CITIZENS
         conducts its business through its main office in Martins Ferry, Ohio
         and nine branches in Bridgeport, Colerain, Dellroy, Dover, Jewett, New
         Philadelphia, St. Clairsville, Sherrodsville, and Strasburg, Ohio.
         COMMUNITY conducts its business through its main office in Lancaster
         and six branches in Lancaster, Glouster, Nelsonville and Amesville,
         Ohio. The Company's primary deposit products are checking, savings, and
         term certificate accounts, 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 businesses.
         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.



                                                                               7
<PAGE>   8

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

1.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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

         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
                                                                             MARCH 31,
                                                                 2001                          2000
                                                       ---------------------------   -------------------------

<S>                                                    <C>                           <C>
Other comprehensive income:
      Unrealized holding gains on available
        for sale securities arising during period               2,134,783                     329,960
      Reclassification adjustment for gains
       later recognized in income                                 (24,214)                    (19,534)
                                                       ---------------------------   -------------------------
                                                                2,110,569                     310,426

Tax effect                                                       (717,621)                   (107,067)
                                                       ---------------------------   -------------------------

Other comprehensive income                              $       1,392,948             $       203,359
                                                       ===========================   =========================
</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 - MARCH 31, 2001
US Agency obligations                     $  98,442,426     $    372,502     $    (613,100)    $  98,201,828
State and Municipal obligations              13,142,068          390,534                          13,532,602
Mortgage-backed securities                    1,900,685           18,638                           1,919,324
Other securities                              3,439,700           12,925                           3,452,625
                                          -------------     -------------    -------------     -------------
                                          $ 116,924,880     $    794,599     $    (613,100)    $ 117,106,380
                                          =============     =============    =============     =============

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 - MARCH 31, 2001
US Agency obligations                     $     999,697     $      4,993     $           -     $   1,004,690
State and Municipal obligations               8,586,279          374,758              (234)        8,960,803
                                          -------------     -------------    -------------     -------------
                                          $   9,585,976     $    379,751     $        (234)    $   9,965,493
                                          =============     =============    =============     =============

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           (39,669)        8,461,031
                                          -------------     -------------    -------------     -------------
                                          $  10,802,213     $    196,785     $     (52,746)    $  10,946,251
                                          =============     =============    =============     =============
</TABLE>


Sales of securities available for sale were as follows:

<TABLE>
<CAPTION>
                                 THREE MONTHS ENDED
                                      MARCH 31,
                               2001              2000
                          ---------------   ---------------
<S>                        <C>                <C>
Proceeds                   $   3,773,516      $     17,367
Gross gains                       24,214            19,534
Gross losses
</TABLE>



                                                                               9
<PAGE>   10
                              UNITED BANCORP, INC.
            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

2.       SECURITIES: (CONTINUED)

                  Contractual maturities of securities at March 31, 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      $  1,007,190
  1 - 5   Years                                        2,249,872         2,253,668
  5 - 10  Years                                       39,988,171        40,224,858
  Over 10 Years                                       55,204,383        54,716,112
                                                 ---------------   ---------------
  Total                                               98,442,426        98,201,828
                                                 ---------------   ---------------
State and municipal obligations
  Under 1 Year                                         2,846,356         2,885,601
  1 - 5   Years                                        7,744,160         8,007,951
  5 - 10  Years                                        1,264,671         1,312,073
  Over 10 Years                                        1,286,881         1,326,976
                                                 ---------------   ---------------
  Total                                               13,142,068        13,532,602
                                                 ---------------   ---------------
Mortgage Backed securities
  5 - 10  Years                                          186,658           188,194
  Over 10 Years                                        1,714,027         1,731,130
                                                 ---------------   ---------------
  Total                                                1,900,685         1,919,324
                                                 ---------------   ---------------
Other investments
  Equity securities                                    3,439,700         3,452,625
                                                 ---------------   ---------------

Total securities available for sale                 $116,924,880      $117,106,380
                                                 ===============   ===============

HELD TO MATURITY

US Agency obligations
  Over 10 Years                                          999,697         1,004,690
                                                 ---------------   ---------------
  Total                                                  999,697         1,004,690
                                                 ---------------   ---------------
State and municipal obligations
  1 - 5   Years                                        2,606,542         2,718,482
  5 - 10  Years                                        4,077,461         4,289,314
  Over 10 Years                                        1,902,276         1,953,007
                                                 ---------------   ---------------
  Total                                                8,586,279         8,960,803
                                                 ---------------   ---------------
Total securities held to maturity                   $  9,585,976      $  9,965,493
                                                 ===============   ===============
</TABLE>

Securities with a carrying value of approximately 62,489,812 at March 31, 2001
and $49,414,697 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
                                                          MARCH 31,
                                                  2001               2000
                                               -----------        -----------
<S>                                            <C>                <C>
Beginning Balance                              $ 2,790,133        $ 3,109,821
  Provision charged to operating expense           195,000            115,500
  Loans charged-off                               (254,002)          (245,101)
  Recoveries                                       125,927             39,589
                                               -----------        -----------
Ending Balance                                 $ 2,857,058        $ 3,019,809
                                               ===========        ===========
</TABLE>

Non-performing loans were as follows:

<TABLE>
<CAPTION>
                                                               MARCH 31,                 DECEMBER 31,
                                                                  2001                       2000
                                                        -------------------------  -------------------------
<S>                                                      <C>                        <C>
Loans past due over 90 days still on accrual             $         88,311           $        124,000
Nonaccrual Loans                                                  856,950                    793,360
</TABLE>

                  Loans considered impaired under the provisions of SFAS No. 114
         were not material at March 31, 2001 and December 31, 2000.
         Nonperforming loans include all impaired loans and smaller balance
         homogeneous loans, such as residential mortgage and consumer loans that
         are collectively excluded for impairment.

4.       COMMITMENTS, OFF-BALANCE SHEET RISK AND CONTINGENCIES

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

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

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



                                                                              11
<PAGE>   12

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

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

                  Commitments generally have fixed expiration dates or other
         termination clauses and may require payment of a fee. Since many of the
         commitments are expected to expire without being used, total
         commitments do not necessarily represent future cash requirements.
         Standby letters of credit and financial guarantees written are
         conditional commitments to guarantee a customer's performance to a
         third party.

                  A summary of the notional or contractual amounts of financial
         instruments with off-balance sheet risk at March 31, 2001 and December
         31, 2000 follows:

<TABLE>
<CAPTION>
                                                               MARCH 31,                 DECEMBER 31,
                                                                  2001                       2000
                                                        -------------------------  -------------------------
<S>                                                         <C>                        <C>
Commitments to extend credit                                $  17,099,935              $   16,656,030
Credit card and ready reserve lines                             1,216,862                   1,256,090
Standby letters of credit                                         596,000                     596,000
</TABLE>

                  At March 31, 2001, and included above, commitments to make
         fixed-rate loans totaled $2,443,943 with the interest rates on those
         fixed-rate commitments ranging from 7.50% 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%.

                  At March 31, 2001 and December 31, 2000, reserves of
         $1,179,000 and $1,254,000 were required as deposits with the Federal
         Reserve or as cash on hand. These reserves do not earn interest.

5.       EARNINGS PER SHARE

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

<TABLE>
<CAPTION>
                                                                             THREE MONTHS ENDED
                                                                                MARCH 31,
                                                                       2001                   2000
                                                               -------------------    -------------------
<S>                                                            <C>                    <C>
BASIC
     Net income                                                       $   605,333            $   576,322
                                                               ===================    ===================

     Weighted average common shares outstanding                         3,019,568              3,090,029
                                                               ===================    ===================

      Basic earnings per common share                                 $      0.20            $      0.19

                                                               ===================    ===================

DILUTED
     Net income                                                       $   605,333            $   576,322
                                                               ===================    ===================

     Weighted average common shares outstanding for
           basic earnings per common share                              3,019,568              3,090,029
     Add:  Dilutive effects of assumed exercised of stock
           options                                                            767                  2,373
                                                               -------------------    -------------------

     Average shares and dilutive potential common shares                3,020,335              3,092,402
                                                               ===================    ===================

     Average shares and dilutive potential common shares              $      0.20            $      0.19
                                                               ===================    ===================
</TABLE>

         Stock options for 20,743 and 19,101 shares were not considered in
         computing diluted earnings per common share for 2001 and 2000 because
         they were antidilutive.



                                                                              12
<PAGE>   13

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

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

                  The following discusses the financial condition of the Company
         as of March 31, 2001, as compared to December 31, 2000 and the results
         of operations for the three months ended March 31, 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 were
         made or to reflect the occurrence of anticipated or unanticipated
         events.



                                                                              13
<PAGE>   14

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


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

                  >>       1902     Original banking charter granted for The
                                    German Savings Bank (later changed to The
                                    Citizens Savings Bank).

                  >>       1974     Construction of a full-service branch
                                    banking facility 6 miles west in Colerain,
                                    Ohio.

                  >>       1978     Construction of a full-service branch
                                    banking facility 2 miles south in
                                    Bridgeport, Ohio.

                  >>       1980     Construction of a limited-service
                                    auto-teller banking location in Martins
                                    Ferry, Ohio.

                  >>       1983     Creation of United Bancorp, Inc. as a
                                    single-bank holding company through
                                    acquisition of 100% of the voting stock of
                                    The Citizens Savings Bank of Martins Ferry,
                                    Ohio ("CITIZENS"). Also, began operation of
                                    Automated Teller Machine ("ATM") in
                                    Aetnaville, Ohio.

                  >>       1984     CITIZENS opened a newly constructed 21,500
                                    square foot main-office facility in Martins
                                    Ferry, Ohio, adjacent to the auto-teller
                                    facility built in 1980.

                  >>       1986     United Bancorp, Inc. became a multi-bank
                                    holding company through the acquisition of
                                    100% of the voting stock of The
                                    Citizens-State Bank of Strasburg, Strasburg,
                                    Ohio, merged into CITIZENS in 1999.

                  >>       1990     CITIZENS converted from third-party data
                                    processing to in-house data processing.
                                    CITIZENS constructed a full-service branch
                                    bank 6 miles south of Strasburg in Dover,
                                    Ohio.

                  >>       1992     CITIZENS acquired two branch bank locations
                                    in New Philadelphia and Sherrodsville, Ohio.

                  >>       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.




                                                                              14
<PAGE>   15

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


         ANALYSIS OF FINANCIAL CONDITION

         EARNING ASSETS - LOANS
                  At March 31, 2001, gross loans were $191,831,000 compared to
         $196,497,000 at year-end 2000, a decrease of 2.4%. The decrease in
         total outstanding loans was the result of decreases in all loan
         categories with particular decreases in the commercial and installment
         portfolios. COMMUNITY'S outstanding loans decreased .92% or
         approximately $447,000 from December 31, 2000. CITIZENS' also
         experienced a decrease in gross loans by 2.86% or $4.2 million.

                  Installment loans were 27.8% of total loans at March 31, 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 actually experienced a 3.3% or $1,105,000 decline
         in installment loans while COMMUNITY installment loans decreased
         $935,000 or 4.3% since December 31, 2000. Commercial loans also
         decreased $2.2 million or 2.6% from December 31, 2000.

                  Commercial and commercial real estate loans comprised 43.3% of
         total loans at March 31, 2001 compared to 43.4% at December 31, 2000.
         Commercial and commercial real estate loans have decreased $2.2 million
         or 2.6% from December 31, 2000. CITIZENS commercial portfolio decreased
         by $2.4 million while COMMUNITY's commercial loans increased $174,000
         from 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
         March 31, 2001 were 7.3% of total loans and 16.8% of total commercial
         and commercial real estate loans compared to 6.9% and 16.0% at year-end
         2000.

                  Real estate loans were 28.9% of total loans at March 31, 2001
         compared to 28.4% at year-end 2000. Real estate loans decreased .79%
         since December 31, 2000. CITIZENS real estate loans decreased 2.4% or
         $1.4 million while COMMUNITY's increased $320,000, or 4.9%. The Company
         offers both an adjustable rate and fixed rate product. Adjustable rate
         products typically have lower introductory rates as compared to that of
         a fixed rate mortgage. The Company primarily sells its fixed rate
         mortgages on the secondary market and retains the adjustable rate
         mortgages for the portfolio.

                  The allowance for loan losses represents the amount which
         management and the Board of Directors estimates is adequate to provide
         for probable losses inherent in the loan portfolio. The allowance
         balance and the provision charged to expense are reviewed by management
         and the Board of Directors monthly using a risk grading model that
         considers borrowers past due experience, current financial condition,
         collateral value and various other circumstances that are



                                                                              15
<PAGE>   16

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


         subject to change over time. Management believes the current balance of
         the allowance for loan losses is adequate to absorb probable incurred
         credit losses associated with the loan portfolio. Net charge-offs for
         the three months ended March 31, 2001 were approximately $128,000, or
         4.6% of the beginning balance in the allowance for loan losses compared
         to $206,000, or 6.6%, of the beginning balance for loan losses for the
         three months ended March 31, 2000. The decrease can be attributed to
         Management's continued focus on improving underwriting standards.

         EARNING ASSETS - SECURITIES AND FEDERAL FUNDS SOLD
                  The securities portfolio is comprised of U.S. Government
         agency-backed securities, tax-exempt obligations of states and
         political subdivisions and certain other investments. The Company does
         not hold any collateralized mortgage-backed securities, other than
         those issued by U.S. government agencies, or derivative securities. The
         quality rating of obligations of state and political subdivisions
         within Ohio is no less than Aaa, Aa or A, with all out-of-state bonds
         rated at AAA. Board policy permits the purchase of certain non-rated
         bonds of local schools, townships and municipalities, based on their
         estimated levels of credit risk. Securities available for sale at March
         31, 2001 increased approximately $22,667,000, or 24.0% from year-end
         2000 totals. This increase is a result of the slower loan growth and
         management's leveraging through Federal Home Loan Bank borrowings.
         Securities held to maturity at March 31, 2001 decreased approximately
         $1,216,000, or 11.3% compared to year-end 2000 totals.

                  Short-term federal funds sold are used to manage interest rate
         sensitivity and to meet liquidity needs of the Company. At March 31,
         2001, the Company had no federal funds sold.

         SOURCES OF FUNDS - DEPOSITS
                  The Company's primary source of funds is core deposits from
         retail and business customers. These core deposits include all
         categories of interest-bearing and noninterest-bearing deposits,
         excluding certificates of deposit greater than $100,000. For the period
         ended March 31, 2001, total core deposits decreased approximately $3.6
         million primarily from a decrease of demand deposits totaling $3.8
         million. This was partly offset by an increase in time deposits under
         $100,000 of $733,000.

                  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 March 31, 2001,
         certificates of deposit greater than $100,000 increased approximately
         $3.3 million, or 11.3% from year-end 2000 totals.

         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 three months of 2001, the Company



                                                                              16
<PAGE>   17


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

          continued to utilize the FHLB programs to manage interest rate risk
          and liquidity positions. The majority of the Company's repurchase
          agreements are with local school districts and city and county
          governments. Total other borrowings increased approximately $12.3
          million, or 47.0% from year-end 2000 totals. Most of this increase was
          immediately invested in available for sale securities.

         RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2001

         NET INCOME
                  Basic earnings per share for the three months ended March 31,
         2001 was $0.20, compared with $0.19 for the three months ended March
         31, 2000. Net income increased $29,000 for the three months ended March
         31, 2001, compared to the same period in 2000. On an annualized basis,
         Return on Average Assets (ROA) was 0.73% and Return on Average Equity
         (ROE) was 8.24% compared to ROA of .77% and ROE of 9.26% for the three
         months ended March 31, 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
         1.3% for the three months ended March 31, 2001 compared to the same
         period in 2000.

                  Total interest income for the three months ended March 31,
         2001 was $6,204,000 compared to $5,593,000 for the same period in 2000.
         Total interest income increased $611,000, or 10.9%. The increase can be
         attributed to the overall growth in the Company's interest-earning
         assets, and the increase in the interest rate environment during the
         year 2000.

                  Total interest expense for the three months ended March 31,
         2001 when compared to the same three months period ended March 31,
         2000, increased 20.8%, or $573,000. The Company has experienced an
         increase in interest expense due to the overall increase of rates on
         all deposit products in the year 2000 and also in remaining competitive
         in the market.

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

                  The total provision for loan losses was $195,000 for the three
         months ended March 31, 2001 compared to $116,000 for the same period in
         2000. Management increased the provision in 2001 due to the loan growth
         experienced by COMMUNITY in the year 2000.


                                                                              17
<PAGE>   18
                              UNITED BANCORP, INC.
         MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                             RESULTS OF OPERATIONS

         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
         March 31, 2001 was $368,000 compared to $325,000 for the same
         three-month period ended March 31, 2000. For the three months ended
         March 31, 2001 compared to the same period in 2000, noninterest income
         increased approximately 13.4%. The expanded customer base as a result
         of the COMMUNITY expansion and management's focus on updating our fee
         structures contributed to the increase.

         NONINTEREST EXPENSE
                  Noninterest expense for the three months ended March 31, 2001
         decreased 1.3% over the three months ended March 31, 2000. Expansion
         costs were incurred in the first quarter of 2000 related to COMMUNITY'S
         opening of a new headquarters, an adjacent limited service drive-thru,
         and a full service banking center in Lancaster, Ohio. Also, additional
         staffing, advertising and occupancy expenses were added to the
         COMMUNITY'S cost structure as a result of this expansion.

         CAPITAL RESOURCES
                  Internal capital growth, through the retention of earnings, is
         the primary means of maintaining capital adequacy for the Company.
         Shareholders' equity at March 31, 2001 was $29,935,000 compared to
         $28,679,000 at December 31, 2000, a 4.4% increase. Total shareholders'
         equity in relation to total assets was 8.88% at March 31, 2001 and
         8.85% at December 31, 2000.

                  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.

                  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



                                                                              18
<PAGE>   19

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

         adequately capitalized, regulatory approval is required to accept
         brokered deposits. If undercapitalized, capital distributions are
         limited, as is asset growth and expansion and plans for capital
         restoration are required.

                  The minimum requirements are:

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

                  The following table illustrates the Company's risk-weighted
         capital ratios at March 31, 2001:

<TABLE>
<CAPTION>
CAPITAL RESOURCES
                                                                            MARCH 31,
                            (IN THOUSANDS)                                     2001
                                                                       ---------------------
<S>                                                                     <C>
Tier 1 capital                                                          $         29,929
Total risk-based capital                                                $         32,572
Risk-weighted assets                                                    $        237,708
Average total assets                                                    $        331,333

Tier 1 capital to average assets                                                    9.03%
Tier 1 risk-based capital ratio                                                    12.59%
Total risk-based capital ratio                                                     13.70%
</TABLE>


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

                  For the three months ended March 31, 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. The net
         decrease in cash and cash equivalents of



                                                                              19
<PAGE>   20

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

         $3,325,000 was primarily the result of investment security purchases of
         $31,002,000 and an decrease in deposits of $273,000, offset by cash
         provided in financing activities of $11,260,000 related to an increase
         in short term borrowings and the decrease in loan volume. Also, cash
         was provided by the sales, maturities and paydowns of 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
         affects the financial condition and results of operations to a greater
         degree than changes in the rate of inflation. It should be noted that
         interest rates and inflation do effect each other, but do not always
         move in correlation with each other. The Company's ability to match the
         interest sensitivity of its financial assets to the interest
         sensitivity of its liabilities in its asset/liability management may
         tend to minimize the effect of changes in interest rates on the
         Company's performance.

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



                                                                              20
<PAGE>   21

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


ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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

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

         The Company's securities are all fixed rate and are weighted more
heavily towards available for sale which accounts for 92% of the portfolio
compared to the 8% 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 38% of total assets and a significant portion of its loan
portfolio consisting of fixed rate loans, the Company is particularly sensitive
to periods of rising interest rates. In such periods, the Company's net interest
spread is negatively affected because the interest rate paid on deposits
increases faster than the rates earned on loans. Management is continuing to
originate variable rate mortgage loans as the primary means to manage this risk.
In addition, the Company also originates consumer and commercial loans, which
make up a significant percentage of the overall loan portfolio. Consumer loans
typically have a significantly shorter weighted-average maturity and offer less
exposure to interest rate risks while commercial loans generally carry variable
interest rates.

         Management measures the Company's interest rate risk by computing
estimated changes in net interest income and the net portfolio value ("NPV") of
its cash flows from assets, liabilities and off-balance sheet items in the event
of a range of assumed changes in market interest rates. Presented in the
Company's 2000 Annual Report as of December 31, 2000, is an analysis of the
Company's interest rate risk as measured by changes in NPV for instantaneous and
sustained parallel shifts of 100 basis points in market interest rates.
Management believes that no events have occurred since December 31, 2000 which
would significantly change the Company's NPV at March 31, 2001 under each
assumed shifts of 100 basis points in market interest rates.

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



                                                                              21
<PAGE>   22

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


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.



                                                                              22
<PAGE>   23


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

PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS
         Not applicable.

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

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES
         Not applicable.

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

ITEM 5.  OTHER INFORMATION
         Not applicable.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K
         (a)    Exhibits
         (b)    The registrant filed no current reports on Form 8-K
                during the quarter ended March 31, 2001.



                                                                              23
<PAGE>   24


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






      May 11, 2001               By:   /s/ James W. Everson
----------------------                 -----------------------------
       Date                      James W. Everson
                                 Chairman, President & Chief Executive Officer






      May 11, 2001               By:   /s/ Randall M. Greenwood
----------------------                 -----------------------------
       Date                      Randall M. Greenwood
                                 Chief Financial Officer





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