<PAGE>   1
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                            -------------------------

                                    FORM 10-Q



            |X|    Quarterly Report Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

                FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1999

                                       or

            |_|    Transition Report Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

                            -------------------------

                            COMMISSION FILE #0-16640

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

                      MICHIGAN                        38-2606280
       (State or other jurisdiction of             (I.R.S. Employer
        incorporation or organization)            Identification No.)


                  205 E. CHICAGO BOULEVARD, TECUMSEH, MI 49286
          (Address of principal executive offices, including Zip Code)

       Registrant's telephone number, including area code: (517) 423-8373

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 shorter periods 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                |_|

As of October 15, 1999, there were outstanding 1,816,956 shares of the
registrant's common stock, no par value.


                                     Page 1

<PAGE>   2

                              CROSS REFERENCE TABLE


<TABLE>
<CAPTION>
ITEM NO.                           DESCRIPTION                                          PAGE NO.
-------------------------------------------------------------------------------------------------------

                                    PART I - FINANCIAL INFORMATION

<S>       <C>                                                                           <C>
Item 1.   Financial Statements (Condensed)
          (a) Consolidated Balance Sheets                                                            3
          (b) Consolidated Statements of Income                                                      4
          (c) Consolidated Statements of Changes in Shareholders' Equity                             5
          (d) Consolidated Statements of Cash Flows                                                  6
          (e) Notes to Financial Statements                                                          7

Item 2.   Management's Discussion and Analysis
          Financial Condition                                                                        8
          Liquidity                                                                                 10
          Results of Operations                                                                     10

Item 3.   Quantitative and Qualitative Disclosures about Market Risk                                14


                                    PART II - OTHER INFORMATION

Item 1.   Legal Proceedings                                                                         15
Item 2.   Changes in Securities                                                                     16
Item 3.   Defaults Upon Senior Securities                                                           16
Item 4.   Submission of Matters to a Vote of Security Holders                                       16
Item 5.   Other Information                                                                         16
Item 6.   Exhibits and Reports on Form 8-K                                                          16

Signatures                                                                                          16
Exhibit Index                                                                                       17
</TABLE>


                                     Page 2


<PAGE>   3

                                     PART I
                              FINANCIAL INFORMATION

ITEM 1- FINANCIAL STATEMENTS


(A)   CONSOLIDATED BALANCE SHEETS (UNAUDITED)
In thousands of dollars
<TABLE>
<CAPTION>
                                                                              September 30,   December 31,   September 30,
                                                                                   1999           1998           1998
                                                                              -------------   ------------   -------------
<S>                                                                           <C>             <C>            <C>
ASSETS
Cash and demand balances in other banks                                         $  14,627     $  12,348      $  11,616
Federal funds sold                                                                      -             -          7,100
                                                                                ---------     ---------      ---------
Total cash and cash equivalents                                                    14,627        12,348         18,716

Securities available for sale                                                      49,572        58,468         51,335
Securities held to maturity (fair value of
      $34,413, $37,999 and $48,669, respectively)                                  34,176        36,919         37,415
                                                                                ---------     ---------      ---------
Total securities                                                                   83,748        95,387         88,750

Loans held for sale                                                                     -           535            227
Portfolio loans                                                                   293,650       269,714        259,838
                                                                                ---------     ---------      ---------
Total loans                                                                       293,650       270,249        260,065
Less: allowance for loan losses                                                     3,218         2,799          2,716
                                                                                ---------     ---------      ---------
Net loans                                                                         290,432       267,450        257,349

Premises and equipment, net                                                        12,976        11,406         11,148
Accrued interest receivable and other assets                                        9,883         7,104          7,111
                                                                                ---------     ---------      ---------
TOTAL ASSETS                                                                    $ 411,666     $ 393,695      $ 383,074
                                                                                =========     =========      =========

LIABILITIES
Deposits
      Noninterest bearing                                                       $  44,480     $  42,468      $  37,452
      Interest bearing certificates of deposit of $100,000 or more                 32,157        31,108         32,211
      Other interest bearing deposits                                             274,833       263,691        260,581
                                                                                ---------     ---------      ---------
Total deposits                                                                    351,470       337,267        330,244

Federal funds and other short term borrowings                                       6,700         3,874            667
Other borrowings                                                                   10,624        10,900         10,900
Accrued interest payable and other liabilities                                      2,377         2,890          3,089
                                                                                ---------     ---------      ---------
TOTAL LIABILITIES                                                                 371,171       354,931        344,900

SHAREHOLDERS' EQUITY
Common stock, no par value; 5,000,000 shares authorized;
      1,816,956, 1,730,480 and 1,728,490 shares issued and
      outstanding, respectively                                                    23,787        19,837         19,725
Retained earnings                                                                  16,977        18,607         17,929
Accumulated other comprehensive income (loss)                                        (269)          320            520
                                                                                ---------     ---------      ---------
TOTAL SHAREHOLDERS' EQUITY                                                         40,495        38,764         38,174
                                                                                ---------     ---------      ---------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                      $ 411,666     $ 393,695      $ 383,074
                                                                                =========     =========      =========
</TABLE>

The accompanying notes are an integral part of these consolidated financial
statements.


                                     Page 3


<PAGE>   4

(B)   CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
In thousands of dollars, except per share data
<TABLE>
<CAPTION>
                                                                     Three Months Ended           Nine Months Ended
                                                                       September 30,               September 30,
                                                              ---------------------------------------------------------
                                                                     1999          1998          1999           1998
                                                              ---------------- -------------  ------------  -----------
<S>                                                           <C>                 <C>          <C>            <C>
INTEREST INCOME
Interest and fees on loans
      Taxable                                                      $ 6,188        $ 5,818      $ 17,870       $ 17,510
      Tax exempt                                                        23             19            65             57
Interest on securities
      Taxable                                                          791            831         2,408          2,344
      Tax exempt                                                       430            471         1,332          1,416
Interest on federal funds sold                                          31            111            84            360
                                                                   -------        -------       -------        -------
Total interest income                                                7,463          7,250        21,759         21,687

INTEREST EXPENSE
Interest on certificates of deposit of $100,000 or more                395            472         1,158          1,537
Interest on other deposits                                           2,522          2,618         7,245          7,834
Interest on short term borrowings                                       19              8            66             28
Interest on other borrowings                                           164            168           495            484
                                                                   -------        -------       -------        -------
Total interest expense                                               3,100          3,266         8,964          9,883
                                                                   -------        -------       -------        -------
NET INTEREST INCOME                                                  4,363          3,984        12,795         11,804
Provision for loan losses                                              315            275           945            824
                                                                   -------        -------       -------        -------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES                  4,048          3,709        11,850         10,980

NONINTEREST INCOME
Service charges on deposit accounts                                    569            429         1,489          1,234
Trust & Investment fee income                                          568            417         1,548          1,198
Gains on securities transactions                                         -             45            11             54
Loan sales and servicing                                                96            212           442            758
Sales of nondeposit investment products                                186             75           497            344
Other income                                                           208            130           557            412
                                                                   -------        -------       -------        -------
Total noninterest income                                             1,627          1,308         4,544          4,000

NONINTEREST EXPENSE
Salaries and employee benefits                                       2,108          1,820         6,145          5,310
Occupancy and equipment expense                                        638            629         1,863          1,827
Other expense                                                        1,089            864         3,197          2,807
                                                                   -------        -------       -------        -------
Total noninterest expense                                            3,835          3,313        11,205          9,944
                                                                   -------        -------       -------        -------
INCOME BEFORE FEDERAL INCOME TAX                                     1,840          1,704         5,189          5,036
Federal income tax                                                     500            443         1,371          1,305
                                                                   -------        -------       -------        -------
NET INCOME                                                         $ 1,340        $ 1,261       $ 3,818        $ 3,731
                                                                   =======        =======       =======        =======

Basic and diluted earnings per share                                $ 0.73         $ 0.69        $ 2.10         $ 2.05
Cash dividends declared per share of common stock                     0.30           0.27          0.85           0.75
</TABLE>

The accompanying notes are an integral part of these consolidated financial
statements.


                                     Page 4


<PAGE>   5

(C)   CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)
In thousands of dollars, except per share data
<TABLE>
<CAPTION>
                                                                                              Accumulated
                                                                                              Other Compre-
                                                                    Common       Retained        hensive
                                                                    Stock        Earnings        Income         Total
                                                                  ---------      --------     -------------   --------
<S>                                                               <C>            <C>          <C>             <C>
Balance, December 31, 1997                                        $ 16,366       $ 18,867         $ 233       $ 35,466

Net Income                                                                          3,731                        3,731
Net change in unrealized gains (losses) on securities                                               287            287
                                                                                                              --------
Total comprehensive income                                                                                       4,018

Cash dividends declared                                                            (1,362)                      (1,362)
5% stock dividend declared, 82,298 shares at $40                     3,292         (3,292)                           -
Common stock and contingently issuable stock                            67            (15)            -             52
                                                                  --------       --------         -----       --------
Balance, September 30, 1998                                       $ 19,725       $ 17,929         $ 520       $ 38,174
                                                                  ========       ========         =====       ========


Balance, December 31, 1998                                        $ 19,837       $ 18,607         $ 320       $ 38,764

Net Income                                                                          3,818                        3,818
Net change in unrealized gains (losses) on securities                                              (589)          (589)
                                                                                                              --------
Total comprehensive income                                                                                       3,229

Cash dividends declared                                                            (1,539)                      (1,539)
5% stock dividend declared, 86,512 shares at $45                     3,893         (3,893)                           -
Common stock and contingently issuable stock                            57            (16)            -             41
                                                                  --------       --------         -----       --------
Balance, September 30, 1999                                       $ 23,787       $ 16,977         $(269)      $ 40,495
                                                                  ========       ========         =====       ========
</TABLE>

The accompanying notes are an integral part of these consolidated financial
statements.


                                     Page 5


<PAGE>   6

<TABLE>
<CAPTION>
(D)   CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)                                         Nine Months Ended
In thousands of dollars                                                                            September 30
                                                                                             -----------------------------
                                                                                                 1999           1998
                                                                                             -------------  --------------
<S>                                                                                          <C>            <C>
Cash Flows from Operating Activities
Net Income                                                                                     $  3,818       $  3,731
                                                                                               --------       --------

Adjustments to Reconcile Net Income to Net Cash from Operating Activities
Depreciation and amortization                                                                     1,381          1,175
Provision for loan losses                                                                           945            824
Change in loans held for sale                                                                       535            (86)
Change in accrued interest receivable and other assets                                           (3,053)          (869)
Change in accrued interest payable and other liabilities                                            (62)            53
                                                                                               --------       --------
Total adjustments                                                                                  (254)         1,097
                                                                                               --------       --------
Net cash from operating activities                                                                3,564          4,828
                                                                                               --------       --------

Cash Flows from Investing Activities
Securities available for sale
      Purchases                                                                                 (14,132)       (18,941)
      Sales                                                                                           -          3,035
      Maturities and calls                                                                       15,820          2,809
      Principal payments                                                                          6,168          4,690
Securities held to maturity
      Purchases                                                                                  (2,298)       (13,590)
      Maturities and calls                                                                        5,021         13,382
Change in portfolio loans                                                                       (24,462)         4,704
Premises and equipment expenditures, net                                                         (2,509)        (1,191)
                                                                                               --------       --------
Net cash from investing activities                                                              (16,392)        (5,102)
                                                                                               --------       --------

Cash Flows from Financing Activities
Net change in deposits                                                                           14,203         13,409
Net change in short term borrowings                                                               2,826         (4,275)
Proceeds from other borrowings                                                                        -          3,900
Principal payments on other borrowings                                                             (276)        (3,000)
Proceeds from stock transactions                                                                     41             52
Dividends paid                                                                                   (1,687)        (1,502)
                                                                                               --------       --------
Net cash from financing activities                                                               15,107          8,584
                                                                                               --------       --------
Net change in cash and cash equivalents                                                           2,279          8,310

Cash and cash equivalents at beginning of year                                                   12,348         10,406
                                                                                               --------       --------
Cash and cash equivalents at end of period                                                     $ 14,627       $ 18,716
                                                                                               ========       ========

Cash Paid During the Period for
Interest                                                                                        $ 9,100       $ 10,137
Income taxes                                                                                      1,400          1,400
                                                                                               ========       ========
</TABLE>

The accompanying notes are an integral part of these consolidated financial
statements.


                                     Page 6


<PAGE>   7

(E)   NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1 - BASIS OF PRESENTATION
The unaudited condensed consolidated financial statements of United Bancorp,
Inc. (the "Company") have been prepared in accordance with generally accepted
accounting principles for interim financial information and the instructions to
Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all
of the information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for a
fair presentation have been included. Operating results for the nine month
period ending September 30, 1999 are not necessarily indicative of the results
that may be expected for the year ended December 31, 1999. For further
information, refer to the consolidated financial statements and footnotes
thereto included in the Company's Annual Report on Form 10-K for the year ended
December 31, 1998.

NOTE 2 - LOANS HELD FOR SALE
Mortgage loans serviced for others are not included in the accompanying
consolidated statements. The unpaid principal balances of mortgage loans
serviced for others was $125,126,000 and $115,112,000 at the end of September
1999 and 1998. The balance of loans serviced for others related to servicing
rights that have been capitalized was $100,818,000 and $76,622,000 at September
30, 1999 and 1998.

Mortgage servicing rights activity in thousands of dollars for the nine months
ended September 30, 1999 and 1998 follows:

<TABLE>
<CAPTION>
      Unamortized cost of mortgage servicing rights                                  1999          1998
      ---------------------------------------------                                  ----          ----
<S>                                                                                 <C>           <C>
      Balance at January 1                                                          $ 646         $ 340
      Amount capitalized year to date                                                 176           314
      Amount amortized year to date                                                   (91)          (97)
                                                                                    -----         -----
      Balance at period end                                                         $ 731         $ 557
                                                                                    =====         =====
</TABLE>

No valuation allowance was considered necessary for mortgage servicing rights at
period end 1999 and 1998.

NOTE 3 - COMMON STOCK AND EARNINGS PER SHARE
Earnings per share are based upon the weighted average number of shares
outstanding plus contigently issuable shares during the year. On May 28, 1999
and May 29, 1998 the Company issued 5% stock dividends. Earnings per share,
dividends per share and weighted average shares have been restated to reflect
the stock dividend. The weighted average number of shares outstanding plus
contingently issuable shares was 1,822,559 for 1999 and 1,818,804 for 1998.

NOTE 4 - COMPREHENSIVE INCOME
Effective January 1, 1998, the Company adopted Financial Accounting Standard No.
130, "Reporting Comprehensive Income." Under this standard, comprehensive income
is now reported for all periods and encompasses both net income and other
comprehensive income. Other comprehensive income in thousands of dollars for the
period ended follows:


                                     Page 7


<PAGE>   8

<TABLE>
<CAPTION>
                                                                             Nine Months Ended September 30,
                                                                             -------------------------------
      Other comprehensive income                                                     1999          1998
      --------------------------                                                   ------        ------
<S>                                                                          <C>                 <C>
      Unrealized gains (losses) on securities arising during period                $ (882)       $  481
      Reclassification for realized amount included in income                         (11)          (46)
                                                                                   ------        ------
          Other comprehensive income, before tax                                     (893)          435
      Federal income tax expense (benefit)                                           (304)          148
                                                                                   ------        ------
          Other comprehensive income                                               $ (589)       $  287
                                                                                   ======        ======
</TABLE>

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

This discussion provides information about the consolidated financial condition
and results of operations of United Bancorp, Inc. and its subsidiary, United
Bank & Trust ("Bank") for the three and nine month periods ending September 30,
1999.

                               FINANCIAL CONDITION

SECURITIES
Investment securities balances increased during the third quarter of 1999.
Principal repayments on mortgage backed securities, as well as maturities within
the various portfolios, caused some minor shifts in the mix of the portfolio.
However, the mix of the securities portfolio remains relatively unchanged from
period to period over the long term. The chart below shows the mix of the
portfolio.

<TABLE>
<CAPTION>
                                                                               9/30/1999    12/31/1998      9/30/1998
                                                                               ----------   -----------     ----------
<S>                                                                            <C>          <C>             <C>
      U.S. Treasury and agency securities                                           24.4%         28.2%          23.6%
      Mortgage backed agency securities                                             20.5%         22.3%          24.4%
      Tax exempt obligations of states and political subdivisions                   40.2%         37.0%          40.4%
      Corporate, taxable municipal and asset backed securities                      14.9%         12.5%          11.6%
                                                                                   -----         -----          -----
          Total Securities                                                         100.0%        100.0%         100.0%
                                                                                   =====         =====          =====
</TABLE>

LOANS
Loan growth continued to be strong in the third quarter of 1999. During the
quarter, annualized loan growth was 17.4% compared to 9.3% for the second
quarter and 7.1% for the first quarter of the year. Year to date annualized
growth in the loan portfolio is 11.6%. Business loans and residential mortgages
led the increases, while all categories recorded growth for the quarter.

The mix of the loan portfolio continues to reflect this growth trend. Over the
long term, the trend is toward an increased percentage of residential mortgage
and business loans, with declines in personal loans. On the other hand, personal
loan balances have increased since December 31, 1998, reversing the declines
seen since September 30 of last year. The table below shows total loans
outstanding, in thousands of dollars at September 30, and December 31, and their
percentage of the total loan portfolio. All loans are domestic and contain no
concentrations by industry or customer.


                                     Page 8

<PAGE>   9

<TABLE>
<CAPTION>
                                         September 30, 1999          December 31, 1998           September 30, 1998
                                        ---------------------     -----------------------     ------------------------
Portfolio loans:                         Balance   % of total      Balance     % of total       Balance     % of total
                                         -------   ----------      -------     ----------       -------     ----------
<S>                                   <C>          <C>          <C>            <C>           <C>            <C>
      Personal                        $   59,376        20.2%   $   58,797          21.8%    $   62,476          24.0%
      Business/commercial mtgs            92,375        31.5%       82,521          30.5%        80,127          30.8%
      Tax exempt                           1,834         0.6%        1,381           0.5%         1,437           0.6%
      Residential mortgage               111,594        38.0%      104,903          38.8%       102,757          39.5%
      Construction                        28,471         9.7%       22,647           8.4%        13,268           5.1%
                                      ----------      ------    ----------        ------     ----------        ------
          Total loans                 $  293,650      100.00%   $  270,249        100.00%    $  260,065        100.00%
                                      ==========      ======    ==========        ======     ==========        ======
</TABLE>

CREDIT QUALITY
The Company continues to maintain a high level of asset quality compared to
peers, as a result of actively monitoring delinquencies, nonperforming assets
and potential problem loans. In addition, the Bank uses an independent loan
review firm to assess the continued quality of its business loan portfolio.

Nonperforming loans are comprised of (1) loans accounted for on a nonaccrual
basis; (2) loans contractually past due 90 days or more as to interest or
principal payments (but not included in the nonaccrual loans in (1) above;) and
(3) other loans whose terms have been renegotiated to provide a reduction or
deferral of interest or principal because of a deterioration in the financial
position of the borrower (exclusive of loans in (1) or (2) above.) The aggregate
amount of nonperforming loans, in thousands of dollars, is shown in the table
below. The Company's classification of nonperforming loans are generally
consistent with loans identified as impaired.

<TABLE>
<CAPTION>
                                                                 9/30/1999     12/31/1998     9/30/1998
                                                                 ---------     ----------     ---------
<S>                                                              <C>           <C>            <C>
      Nonaccrual loans                                             $ 1,356        $   821       $   543
      Loans past due 90 days or more                                    17            194           275
      Troubled debt restructurings                                     135            136           137
                                                                   -------        -------       -------
          Total nonperforming loans                                $ 1,508        $ 1,151       $   955
      Other real estate                                                335            335           335
                                                                   -------        -------       -------
          Total nonperforming assets                               $ 1,843        $ 1,486       $ 1,290
                                                                   =======        =======       =======
      Percent of total loans                                          0.63%          0.51%         0.50%
</TABLE>

Balances in nonperforming loans were up from June 30, 1999 and December 31,
1998. Loans past due ninety days or more declined, while nonaccrual loans
increased during the period. Nonperforming loans as a percent of total loans
remain well below industry standards, although higher than traditionally
experienced by the Company. The amount listed for other real estate relates
primarily to property that has been leased to a third party with an option to
purchase, and no loss is anticipated on that property.

Because of continued loan growth, the Company has maintained its provision for
loan losses at the same level throughout 1999, which reflects an increase over
the same period in 1998. The allowance for loan losses is maintained at a level
believed adequate by Management to absorb potential losses in the loan
portfolio. An analysis of the allowance for loan losses, in thousands of
dollars, for the nine months ended September 30, 1999 and 1998 follows:
<TABLE>
<CAPTION>
                                                                                     1999          1998
                                                                                  -------       -------
<S>                                                                               <C>           <C>
      Balance at beginning of period                                              $ 2,799       $ 2,467
      Loans charged off                                                              (673)         (738)
      Recoveries credited to allowance                                                147           163
      Provision charged to operations                                                 945           824
                                                                                  -------       -------
      Balance at end of period                                                    $ 3,218       $ 2,716
                                                                                  =======       =======
      As a percent of total loans                                                    1.10%         1.04%
</TABLE>


                                     Page 9


<PAGE>   10

DEPOSITS
Deposit totals continued to grow during the year, in part as a result of recent
expansion efforts. Growth during the quarter was light, at just under 1%
annualized. For the year, annualized deposit growth during 1999 is 5.61%,
compared to 5.64% for the first nine months of 1998. Management anticipates that
deposit growth during 1999 will be continue to improve, with continued growth
from new and existing markets.

LIQUIDITY
The Bank maintained an average funds sold position for the third quarter of
1999, although generally the Bank moves in and out of the fed funds market as
liquidity needs vary. Deposit growth moving at different times than loan growth
will cause continued variation in the short term funds position of the Bank. The
Company has a number of additional liquidity sources should the need arise, and
Management has no concerns for the liquidity position of the Company.

CAPITAL RESOURCES
The capital ratios of the Company exceed the regulatory guidelines for well
capitalized institutions. The increase in intangible assets shown below is the
result of the acquisition of the Manchester office of Great Lakes National Bank
during the second quarter of 1999. The following table shows the Company's
capital ratios and ratio calculations at September 30, 1999 and 1998 and
December 31, 1998. Dollars are shown in thousands.
<TABLE>
<CAPTION>
                                                  Regulatory   Guidelines                United Bancorp, Inc.
                                                  -----------------------                --------------------
                                                   Adequate       Well          9/30/1999    12/31/1998      9/30/1998
                                                  ----------   ----------       ---------    ----------      ---------
<S>                                               <C>          <C>              <C>          <C>             <C>
      Tier 1 capital to average assets                4%           5%                9.1%          9.4%           9.3%
      Tier 1 risk adjusted capital ratio              4%           6%               13.3%         14.0%          14.3%
      Total risk adjusted capital ratio               8%          10%               14.5%         15.0%          15.4%

      Total shareholders' equity                                                 $ 40,495      $ 38,764       $ 38,174
      Intangible assets                                                            (4,400)       (2,230)        (2,294)
      Unrealized (gain) loss on securities available for sale                         269          (320)          (520)
                                                                                 --------      --------       --------
          Tier 1 capital                                                           36,364        36,214         35,360
      Qualifying loan loss reserves                                                 3,218         2,799          2,716
                                                                                 --------      --------       --------
          Tier 2 capital                                                         $ 39,582      $ 39,013       $ 38,076
                                                                                 ========      ========       ========
</TABLE>

                              RESULTS OF OPERATIONS

NET INTEREST INCOME
Net interest margin remained relatively unchanged for the third quarter compared
to the first and second quarters of 1999, and was improved from the same period
in 1998. At the same time, the company's spread continued to show improvement
over prior periods. Continued loan growth and changes in deposit mix have
provided the majority of this improvement over 1998 levels.

The table below shows the year to date daily average Consolidated Balance Sheet,
interest earned (on a taxable equivalent basis) or paid, and the annualized
effective rate or yield, for the periods ended September 30, 1999 and 1998.


                                    Page 10

<PAGE>   11

<TABLE>
<CAPTION>
                                                 YIELD ANALYSIS OF CONSOLIDATED AVERAGE ASSETS AND LIABILITIES
                                    -----------------------------------------------------------------------------------
dollars in thousands                                  1999                                      1998
--------------------
                                    -----------------------------------------------------------------------------------
                                        Average      Interest       Yield/       Average       Interest         Yield/
                                        Balance        (b)           Rate        Balance          (b)            Rate
                                        -------      --------       ------       -------       --------         ------
<S>                                    <C>           <C>            <C>         <C>            <C>              <C>
ASSETS
Interest earning assets (a)
Federal funds sold                     $   2,319     $     84        4.81%      $   8,775      $    360          5.46%
Taxable securities                        52,449        2,408        6.12%         48,746         2,344          6.41%
Tax exempt securities (b)                 33,968        1,934        7.59%         35,275         2,049          7.75%
Taxable loans                            277,898       17,870        8.57%        259,828        17,510          8.99%
Tax exempt loans (b)                       1,659           94        7.58%          1,439            83          7.70%
                                       ---------      -------                   ---------      --------
      Total int. earning assets (b)      368,293       22,390        8.11%        354,063        22,346          8.42%
Less allowance for loan losses            (2,965)                                  (2,576)
Other assets                              35,441                                   29,534
                                       ---------                                ---------
TOTAL ASSETS                           $ 400,769                                $ 381,021
                                       =========                                =========

LIABILITIES AND SHAREHOLDERS' EQUITY
NOW accounts                           $  54,481     $    751        1.84%      $  42,741      $    526          1.64%
Savings deposits                          73,488        1,218        2.21%         72,833         1,542          2.82%
CDs $100,000 and over                     30,113        1,158        5.13%         35,691         1,537          5.74%
Other interest bearing deposits          145,258        5,277        4.84%        142,225         5,766          5.41%
                                       ---------      -------                   ---------      --------
      Total int. bearing deposits        303,340        8,403        3.69%        293,490         9,371          4.26%
Short term borrowings                      1,741           66        5.04%            704            28          5.38%
Other borrowings                          10,792          495        6.11%         10,607           484          6.08%
                                       ---------      -------                   ---------      --------
      Total int. bearing liabilities     315,873        8,964        3.78%        304,801         9,883          4.32%
Noninterest bearing deposits              42,660                                   36,415
Other liabilities                          2,502                                    2,949
Shareholders' equity                      39,734                                   36,856
                                       ---------                                ---------
TOTAL LIABILITIES AND
      SHAREHOLDERS' EQUITY             $ 400,769                                $ 381,021
                                       =========                                =========
Net interest income (b)                              $ 13,427                                  $ 12,463
                                                     ========                                  ========
Net spread (b)                                                       4.32%                                       4.09%
                                                                     =====                                       =====
Net yield on interest earning assets (b)                             4.86%                                       4.69%
                                                                     =====                                       =====
Ratio of interest earning assets to
      interest bearing liabilities          1.17                                     1.16
                                            ====                                     ====
</TABLE>

 (a) Non-accrual loans and overdrafts are included in the average balances of
     loans.
 (b) Fully tax-equivalent basis; 34% tax rate.

The table below shows the effect of volume and rate changes on net interest
income for the nine months ended September 30, on a taxable equivalent basis, in
thousands of dollars.

<TABLE>
<CAPTION>
                                                 1999 Compared to 1998                   1998 Compared to 1997
                                         -----------------------------------       ----------------------------------
                                           Increase (Decrease) Due To: (a)           Increase (Decrease) Due To: (a)
                                           -------------------------------           -------------------------------
                                          Volume        Rate          Net         Volume           Rate          Net
                                        ---------     -------        -----        ------          ------       -------
<S>                                     <C>           <C>            <C>          <C>             <C>          <C>
Interest earned on:
Federal funds sold                      $   (237)     $   (39)       $(276)       $   138         $    8       $   146
Taxable securities                           173         (109)          64            (35)           (14)          (49)
Tax exempt securities                        (75)         (40)        (115)           248            (51)          197
Taxable loans                              1,184         (823)         361            995           (100)          895
Tax exempt loans                              12           (1)          11             12              -            12
                                        --------     --------        -----        -------         ------       -------
      Total interest income             $  1,057      $(1,012)       $  45        $ 1,358         $ (157)      $ 1,201
                                        ========     ========        =====        =======         ======       =======
</TABLE>


                                    Page 11
<PAGE>   12

<TABLE>
<CAPTION>
                                                 1999 Compared to 1998                   1998 Compared to 1997
                                         -----------------------------------       ----------------------------------
                                           Increase (Decrease) Due To: (a)           Increase (Decrease) Due To: (a)
                                           -------------------------------           -------------------------------
                                           Volume       Rate          Net            Volume         Rate          Net
                                           ------     --------       ------          ------       --------       ------
<S>                                        <C>        <C>            <C>             <C>           <C>            <C>
Interest paid on:
NOW accounts                               $ 157      $     68       $  225          $  48         $   30         $  78
Savings deposits                              14          (338)        (324)            51            (11)           40
CDs $100,000 and over                       (225)         (154)        (379)          (258)           (31)         (289)
Other interest bearing deposits              121          (610)        (489)           770           (217)          553
Short term borrowings                         39            (2)          37            (62)            (1)          (63)
Other borrowings                               9             2           11            (64)             9           (55)
                                           -----      --------       ------          -----         ------         -----
      Total interest expense               $ 115      $ (1,034)      $ (919)         $ 485         $ (221)        $ 264
                                           =====      ========       ======          =====         ======         =====
Net change in net interest
      income                               $ 942      $     22       $  964          $ 873         $   64         $ 937
                                           =====      ========       ======          =====         ======         =====
</TABLE>

(a) The change in interest due to both rate and volume has been allocated to
    volume and rate changes in proportion to the relationship of the absolute
    dollar amounts of the change in each.

NONINTEREST INCOME
Noninterest income continues to improve over prior periods. All categories of
noninterest income other than income from loan sales and servicing increased
from the same period in 1998 and from the prior quarter. Overall, on an
annualized basis, total noninterest income is up 26.2% over the second quarter,
and is up 18.1% year to date over the same period of 1998. Income from service
charges on deposit accounts, as well as Trust & Investment Group fee income,
have continued to lead the increases. In particular, the increase in Trust &
Investment Group income reflects continued growth of the Department.

NONINTEREST EXPENSES
Noninterest expense also continued to increase over prior periods, reflecting
continued growth and expansion of the Bank. Additions to Bank facilities and
staff contribute immediately to expenses, but will contribute to earnings in
future periods. Total noninterest expense for the year, excluding provision for
loan losses, is 16.9% over the same period for 1998, and is 4.2% higher than
second quarter levels. Substantially all of this increase relates to growth and
expansion of the Bank.

FEDERAL INCOME TAX
There has been no significant change in the income tax position of the Company
during the third quarter of 1999.

NET INCOME
Consolidated net income during the first nine months of the year was
substantially unchanged from the same period in 1998, and income for the third
quarter exceeded that of the third quarter of 1998. However, income during the
quarter improved from previous quarters of the year. The slowing of earnings
generally reflects investments made in staff and facilities to generate future
growth and income. Management anticipates that benefits of this expansion will
become more evident in the fourth quarter of the year and into 2000. Year to
date earnings are up 3.1% (annualized) over 1998 levels.

YEAR 2000 READINESS
Federal banking regulators require specific actions of every financial
institution to become Year 2000 ready. These guidelines require a bank to:
    - Ensure the involvement of the board of directors and management in the
      institution's Year 2000 effort
    - Adopt a written project plan
    - Renovate its mission-critical systems


                                    Page 12


<PAGE>   13

    - Complete tests of the renovated mission-critical systems by specific
      deadlines
    - Plan for contingencies
    - Manage customer risk

United has an active Year 2000 committee that reports regularly on its progress
to the Board of Directors. The Board has adopted a written plan, and continues
to assess its risk. Management has determined which systems are
mission-critical, and those which are not. Based on these determinations, a plan
of action has been implemented. Key clients have been surveyed, and plans are
underway to assess and manage client risk.

Through the third quarter of 1999, the Company's Year 2000 task force has
continued to monitor the readiness of its major data processing hardware and
software providers, other critical vendor suppliers, and its large commercial
customers.

United uses major external third party vendors to the banking industry for its
mainframe and all personal computer hardware and software. These well-known,
national third party providers for the mission critical systems have provided
written assurances that they are Year 2000 ready and their systems have been
fully tested. The Company does not use any custom programmed software.

In 1998, United determined that its Unisys mainframe computer system, while Year
2000 compliant, did not have sufficient capacity for future growth. In the
fourth quarter of 1998, the Company installed a new Unisys mainframe to replace
its previous system. This system provides a substantial increase in efficiency
and capacity of operations, and allowed complete testing of its banking software
provided by Information Technology, Inc. during the installation of the
hardware, without any disruption to daily processing and customer service. All
testing was completed by June 30, 1999 within the FFIEC published guidelines and
no disruption in service due to a Year 2000 issue is anticipated.

Other systems are being tested, and all noncompliant systems will be replaced or
abandoned. Some non-critical systems have been found to be noncompliant, due to
their age, and will be replaced. The readiness of the software used for mission
critical systems is included in the cost of our normal maintenance of those
systems and we do not expect any additional charges. Some minor hardware and
software replacements will be needed, and expenditures are expected to be less
than $50,000. The staffing needed to complete the testing and implementation
plan has been identified and is available. Other new software installations for
the balance of the year will be restricted to assure that we can complete our
Year 2000 plan.

Contingency planning is substantially complete for mission critical tasks and
will be continually monitored and updated to ensure uninterrupted customer
services and backroom processing. United, however, cannot necessarily ensure
uninterruption with certain vendors such as utility companies and phone
companies, but those vendor plans are being monitored as an ongoing part of the
assessment. Currently, all critical dates mandated by the regulators have been
met by the data processing vendor and United is also on schedule for its review
of any in-house critical systems, software, and equipment.

During the second quarter of 1999, the Bank installed an auxiliary power
generator at its main office, and installed a generator at its Operations Center
during the third quarter. The generators are capable of powering the entire
building where installed, and will assure continued operation of the Bank's data
center and operations areas in the event of a power failure. While the Bank does
not expect systemic


                                    Page 13


<PAGE>   14

power failures, the generators also provide protection from power failure from
causes other than Year 2000 issues, including storms.

The Company has evaluated its anticipated liquidity needs relating to potential
cash demands, and has established a liquidity contingency policy. Management
believes that sufficient liquidity sources are available to provide the Bank
with adequate funding for any special cash needs that might develop.

Overall, the cost of evaluating the Company's Year 2000 readiness and assuring
its compliance will not have a measurable impact on the financial condition of
the Company. United regularly provides for upgrades and replacement of its
software and hardware, and the Year 2000 situation will not significantly impact
those expenditures.

Major loan and deposit customers have been surveyed to evaluate the level of
Year 2000 planning and readiness and to assess any potential risk. Currently, it
is unknown what impact a high risk client's inability to pay its bank
obligations will have on the adequacy of United's allowance for possible loan
losses or its financial position.

United updates the Board of Directors and appropriate banking regulators
regarding its Year 2000 readiness on a quarterly basis. No material affect on
United's financial performance is anticipated, due to the systematic approach
the Company has adopted to prepare for the Year 2000 date impact.

FORWARD-LOOKING STATEMENTS
Statements contained in Management's Discussion and Analysis of Financial
Condition and Results of Operations relate to United's expectations as to future
events relating to such items as the adequacy of the allowance for loan losses,
changes in economic conditions including interest rates, management's ability to
manage interest rate, liquidity and credit risks, impact on operations and
credit losses as it relates to the Year 2000 issue. Such statements are not
statements of historical fact and are forward-looking statements. United
believes the assumptions upon which these statements are founded are reasonable,
based on management's knowledge of its business and operations; however, there
is no assurance the assumptions will prove to have been correct. Furthermore,
United undertakes no obligation to update, amend or clarify forward-looking
statements, whether as a result of new information, future events, or otherwise.

ITEM 3- QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

FUNDS MANAGEMENT AND INTEREST RATE RISK
The composition of the Company's balance sheet consists of investments in
interest earning assets (loans and investment securities) that are funded by
interest bearing liabilities (deposits and borrowings). These financial
instruments have varying levels of sensitivity to changes in market interest
rates resulting in market risk. Bank policies place strong emphasis on
stabilizing net interest margin, with the goal of providing a sustained level of
satisfactory earnings. The Funds Management, Investment and Loan policies
provide direction for the flow of funds necessary to supply the needs of
depositors and borrowers. Management of interest sensitive assets and
liabilities is also necessary to reduce interest rate risk during times of
fluctuating interest rates.

A number of measures are used to monitor and manage interest rate risk,
including interest sensitivity and income simulation analyses. An interest
sensitivity model is the primary tool used to assess this risk


                                    Page 14


<PAGE>   15

with supplemental information supplied by an income simulation model. The
simulation model is used to estimate the effect that specific interest rate
changes would have on twelve months of pretax net interest income assuming an
immediate and sustained up or down parallel change in interest rates of 200
basis points. Key assumptions in the models include prepayment speeds on
mortgage related assets; cash flows and maturities of financial instruments held
for purposes other than trading; changes in market conditions, loan volumes and
pricing; and management's determination of core deposit sensitivity. These
assumptions are inherently uncertain and, as a result, the models cannot
precisely estimate net interest income or precisely predict the impact of higher
or lower interest rates on net interest income. Actual results will differ from
simulated results due to timing, magnitude, and frequency of interest rate
changes and changes in market conditions.

Based on the results of the simulation model as of September 30, 1999, the
Company would expect a maximum potential reduction in net interest margin of
less than 5% if market rates increased under an immediate and sustained parallel
shift of 200 basis points. The Bank's interest sensitivity position increased
slightly during the quarter.

The Company's exposure to market risk is reviewed on a regular basis by the
Funds Management Committee. The Committee's policy objective is to manage the
Company's assets and liabilities to provide an optimum and consistent level of
earnings within the framework of acceptable risk standards.

The Funds Management Committee of the Bank is also responsible for evaluating
and anticipating various risks other than interest rate risk. Those risks
include prepayment risk, credit risk and liquidity risk. The Committee is made
up of senior members of management, and continually monitors the makeup of
interest sensitive assets and liabilities to assure appropriate liquidity,
maintain interest margins and to protect earnings in the face of changing
interest rates and other economic factors.

The Funds Management policy of the Bank provides for a level of interest
sensitivity which, Management believes, allows the Bank to take advantage of
opportunities within the market relating to liquidity and interest rate risk,
allowing flexibility without subjecting the Bank to undue exposure to risk. In
addition, other measures are used to evaluate and project the anticipated
results of Management's decisions.


                                     PART II
                                OTHER INFORMATION

ITEM 1- LEGAL PROCEEDINGS

The Company is not involved in any material legal proceedings. The Company's
sole subsidiary, United Bank & Trust, is involved in ordinary routine litigation
incident to its business; however, no such proceedings are expected to result in
any material adverse effect on the operations or earnings of the Bank. Neither
the Bank nor the Company is involved in any proceedings to which any director,
principal officer, affiliate thereof, or person who owns of record or
beneficially five percent (5%) or more of the outstanding stock of the Company
or the Bank, or any associate of the foregoing, is a party or has a material
interest adverse to the Company or the Bank.


                                    Page 15

<PAGE>   16

ITEM 2- CHANGES IN SECURITIES

No changes in the securities of the Company occurred during the quarter ended
September 30, 1999.


ITEM 3- DEFAULTS UPON SENIOR SECURITIES

There have been no defaults upon senior securities relevant to the requirements
of this section during the three months ended September 30, 1999.


ITEM 4- SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

No matters were submitted to a vote of security holders during the quarter ended
September 30, 1999.


ITEM 5- OTHER INFORMATION

      None.


ITEM 6- EXHIBITS AND REPORTS ON FORM 8-K

(a) Listing of Exhibits (numbered as in Item 601 of Regulation S-K):
    27 Financial Data Schedule.

(b) The Company has filed no reports on Form 8-K during the quarter ended
    September 30, 1999.



                                   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.

United Bancorp, Inc.
October 29, 1999


      /S/ Dale L. Chadderdon
      --------------------------------------------------------
      Dale L. Chadderdon
      Senior Vice President, Secretary & Treasurer


                                    Page 16


<PAGE>   17

                                  EXHIBIT INDEX


EXHIBIT NO.                    DESCRIPTION
--------------------------------------------------------------------------------

   27                          Financial Data Schedule







                                    Page 17