<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                    FORM 10-K

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

                   FOR THE FISCAL YEAR ENDED DECEMBER 31, 2007

                                       OR

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

                    FOR THE TRANSITION PERIOD FROM N/A TO N/A

                         COMMISSION FILE NUMBER 0-16540

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

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

<TABLE>
<S>                                                               <C>
201 SOUTH FOURTH STREET, MARTINS FERRY, OHIO                        43935
  (Address of principal executive offices)                        (ZIP Code)
</TABLE>

REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (740) 633-0445

           SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:

<TABLE>
<S>                                     <C>
                 NONE                                       N/A
           (Title of class)             (Name of each exchange on which registered)
Common Stock, Par Value $1.00 a share              NASDAQ Capital Market
</TABLE>

        SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT: NONE

INDICATE BY CHECK MARK IF THE REGISTRANT IS A WELL-KNOWN SEASONED ISSUER, AS
DEFINED IN RULE 405 OF THE SECURITIES ACT. YES     NO  X .
                                               ---    ---

INDICATED BY CHECK MARK IF THE REGISTRANT IS NOT REQUIRED TO FILE REPORTS
PURSUANT TO SECTION 13 OR SECTION 15(D) OF THE EXCHANGE ACT. YES     NO  X .
                                                                 ---    ---

INDICATE BY CHECK MARK WHETHER THE REGISTRANT (1) HAS FILED ALL REPORTS REQUIRED
TO BE FILED BY SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 DURING
THE PRECEDING 12 MONTHS (OR FOR SUCH SHORTER PERIOD THAT THE REGISTRANT WAS
REQUIRED TO FILE SUCH REPORTS), AND (2) HAS BEEN SUBJECT TO SUCH FILING
REQUIREMENTS FOR THE PAST 90 DAYS. YES  X  NO
                                       ---    ---

INDICATE BY CHECK MARK IF DISCLOSURE OF DELINQUENT FILERS PURSUANT TO ITEM 405
OF REGULATION S-K IS NOT CONTAINED HEREIN, AND WILL NOT BE CONTAINED TO THE BEST
OF REGISTRANT'S KNOWLEDGE, IN DEFINITIVE PROXY OR INFORMATION STATEMENTS
INCORPORATED BY REFERENCE IN PART III OF THIS FORM 10-K OR ANY AMENDMENT TO THIS
FORM 10-K. (X)

INDICATE BY CHECK MARK WHETHER THE REGISTRANT IS A LARGE ACCELERATED FILER, AN
ACCELERATED FILER, A NON-ACCELERATED FILER, OR A SMALLER REPORTING COMPANY. SEE
THE DEFINITIONS OF "LARGE ACCELERATED FILER," "ACCELERATED FILER" AND "SMALLER
REPORTING COMPANY" IN RULE 12B-2 OF THE EXCHANGE ACT.

         LARGE ACCELERATED FILER [ ]            ACCELERATED FILER         [ ]

         NON-ACCELERATED FILER   [ ]            SMALLER REPORTING COMPANY [X]
(DO NOT CHECK IF A SMALLER REPORTING COMPANY)

INDICATE BY CHECK MARK WHETHER THE REGISTRANT IS A SHELL COMPANY (AS DEFINED IN
RULE 12B-2 OF THE EXCHANGE ACT).

YES     NO  X
    ---    ---

AS OF JUNE 30, 2007 THE AGGREGATE MARKET VALUE OF THE REGISTRANT'S COMMON STOCK
HELD BY NON-AFFILIATES OF THE REGISTRANT WAS $38,910,783 BASED ON THE CLOSING
SALE PRICE AS REPORTED ON THE NATIONAL ASSOCIATION OF SECURITIES DEALERS
AUTOMATED QUOTATION SYSTEM.

INDICATE THE NUMBER OF SHARES OUTSTANDING OF EACH OF THE ISSUER'S CLASSES OF
COMMON STOCK, AS OF THE LATEST PRACTICABLE DATE REGISTRANT HAD 5,000,038 COMMON
SHARES OUTSTANDING AS OF MARCH 6, 2008.

                       DOCUMENTS INCORPORATED BY REFERENCE

PORTIONS OF THE PROXY STATEMENT FOR THE ANNUAL SHAREHOLDERS MEETING TO BE HELD
APRIL 16, 2008 ARE INCORPORATED BY REFERENCE INTO PART III.

PORTIONS OF THE ANNUAL REPORT TO SHAREHOLDERS FOR THE YEAR ENDED DECEMBER 31,
2007 ARE INCORPORATED BY REFERENCE INTO PARTS I AND II.

<PAGE>

PART I

ITEM 1 BUSINESS

          BUSINESS

          United Bancorp, Inc. (Company) is a bank holding company headquartered
          in Martins Ferry, Ohio. The Company at December 31, 2007, has one
          wholly-owned subsidiary bank, The Citizens Savings Bank, Martins
          Ferry, Ohio (CITIZENS). On July 1, 2007, the Company received
          regulatory approval for the merger of its two wholly-owned
          subsidiaries, The Glouster Community Bank ("Community"), Lancaster,
          Ohio, and The Citizens Savings Bank ("Citizens"), Martins Ferry, Ohio,
          under the charter of the latter. The Boards of both Citizens and
          Community endorsed this consolidation. The Company continues to
          capitalize on the established branding in the market places of each
          institution.

          CITIZENS serves customers in northeastern, eastern, southeastern and
          south central Ohio and is engaged in the business of commercial and
          retail banking in Belmont, Harrison, Tuscarawas, Carroll, Athens,
          Hocking, and Fairfield counties and the surrounding localities. The
          Bank provides a broad range of banking and financial services, which
          includes accepting demand, savings and time deposits and granting
          commercial, real estate and consumer loans. CITIZENS conducts its
          business through its main office and stand alone operations center in
          Martins Ferry, Ohio and sixteen branches located in the counties
          memtioned above. CITIZENS also offers full brokerage service through
          UVEST(R) member NASD/SIPC.

          CITIZENS has no single customer or related group of customers whose
          banking activities, whether through deposits or lending, would have a
          material impact on the continued earnings capabilities if those
          activities were removed.

          COMPETITION

          The markets in which CITIZENS operates continue to be highly
          competitive. CITIZENS competes for loans and deposits with other
          retail commercial banks, savings and loan associations, finance
          companies, credit unions and other types of financial institutions
          within the Mid-Ohio valley geographic area along the eastern border of
          Ohio, extending into the northern panhandle of West Virginia and the
          Tuscarawas and Carroll County geographic areas of northeastern Ohio.
          CITIZENS also encounters similar competition for loans and deposits
          throughout the Athens, Hocking, and Fairfield County geographic areas
          of central and southeastern Ohio.

          SUPERVISION AND REGULATION

               GENERAL

          The Company is a corporation organized under the laws of the State of
          Ohio. The business in which the Company and its subsidiary are engaged
          is subject to extensive supervision, regulation and examination by
          various bank regulatory authorities. The supervision, regulation and
          examination to which the Company and its subsidiary are subject are
          intended primarily for the protection of depositors and the deposit
          insurance funds that insure the deposits of banks, rather than for the
          protection of shareholders.

          Several of the more significant regulatory provisions applicable to
          banks and bank holding companies to which the Company and CITIZENS are
          subject are discussed below. To the extent that the following
          information describes statutory or regulatory provisions, it is
          qualified in its entirety by reference to the particular statutory
          provisions. Any change in applicable law or regulation may have a
          material effect on the business and prospects of the Company and
          CITIZENS.

               REGULATORY AGENCIES

          The Company is a registered bank holding company and is subject to
          inspection, examination and supervision by the Board of Governors of
          the Federal Reserve System (the "Federal Reserve Board") pursuant to
          the Bank Holding Company Act of 1956, as amended.

          CITIZENS is an Ohio chartered commercial bank. It is subject to
          regulation and examination by both the Ohio Division of Financial
          Institutions (the "ODFI") and the FDIC.

<PAGE>

               THE HOLDING COMPANY

          As a holding company incorporated and doing business within the State
          of Ohio, the Company is subject to regulation and supervision under
          the Bank Holding Act of 1956, as amended (the "Act"). The Company is
          required to file with the Federal Reserve Board on quarterly basis
          information pursuant to the Act. The Federal Reserve Board may conduct
          examinations or inspections of the Company and CITIZENS.

          The Company is required to obtain prior approval from the Federal
          Reserve Board for the acquisition of more than five percent of the
          voting shares or substantially all of the assets of any bank or bank
          holding company. In addition, the Company is generally prohibited by
          the Act from acquiring direct or indirect ownership or control of more
          than five percent of the voting shares of any company which is not a
          bank or bank holding company and from engaging directly or indirectly
          in activities other than those of banking, managing or controlling
          banks or furnishing services to its subsidiaries. The Company may,
          however, subject to certain prior approval requirements of the Federal
          Reserve Board, engage in, or acquire shares of companies engaged in
          activities which are deemed by the Federal Reserve Board by order or
          by regulation to be financial in nature or closely related to banking.

          On November 12, 1999, the Gramm-Leach-Bliley Act (the "GLB Act") was
          enacted into law. The GLB Act made sweeping changes with respect to
          the permissible financial services which various types of financial
          institutions may now provide. The Glass-Steagall Act, which had
          generally prevented banks from affiliation with securities and
          insurance firms, was repealed. Pursuant to the GLB Act, bank holding
          companies may elect to become a "financial holding company," provided
          that all of the depository institution subsidiaries of the bank
          holding company are "well capitalized" and "well managed" under
          applicable regulatory standards.

          Under the GLB Act, a bank holding company that has elected to become a
          financial holding company may affiliate with securities firms and
          insurance companies and engage in other activities that are financial
          in nature. Activities that are "financial in nature" include
          securities underwriting, dealing and market-making, sponsoring mutual
          funds and investment companies, insurance underwriting and agency,
          merchant banking, and activities that the Federal Reserve Board has
          determined to be closely related to banking. No Federal Reserve Board
          approval is required for the Company to acquire a company, other than
          a bank holding company, bank or savings association, engaged in
          activities that are financial in nature or incidental to activities
          that are financial in nature, as determined by the Federal Reserve
          Board. Prior Federal Reserve Board approval is required before the
          Company may acquire the beneficial ownership or control of more than
          5% of the voting shares, or substantially all of the assets, of a bank
          holding company, bank or savings association. If any subsidiary bank
          of the Company ceases to be "well capitalized" or "well managed" under
          applicable regulatory standards, the Federal Reserve Board may, among
          other actions, order the Company to divest the subsidiary bank.
          Alternatively, the Company may elect to conform its activities to
          those permissible for a bank holding company that is not also a
          financial holding company. If any subsidiary bank of the Company
          receives a rating under the Community Reinvestment Act of 1977 of less
          than satisfactory, the Company will be prohibited from engaging in new
          activities or acquiring companies other than bank holding companies,
          banks or savings associations. The Company is not a financial holding
          company and has no current intention of making such an election.

               THE BANK

          General. CITIZENS is an Ohio-chartered bank that is not a member of
          the Federal Reserve System. CITIZENS is therefore regulated by the
          ODFI as well as the FDIC. The regulatory agencies have the authority
          to regularly examine CITIZENS, which is subject to all applicable
          rules and regulations promulgated by its supervisory agencies. In
          addition, the deposits of CITIZENS are insured by the FDIC to the
          fullest extent permitted by law.

          Deposit Insurance. As an FDIC-insured institution, CITIZENS is
          required to pay deposit insurance premium assessments to the FDIC. The
          FDIC has adopted a risk-based assessment system under which all
          insured depository institutions are placed into one of nine categories
          and assessed insurance premiums based upon their respective levels of
          capital and results of supervisory evaluations. Institutions
          classified as well-capitalized (as defined by the FDIC) and considered
          healthy pay the lowest premium while institutions that are less than
          adequately capitalized (as defined by the FDIC) and considered of
          substantial supervisory concern pay the highest premium. Risk
          classification of all insured institutions is made by the FDIC for
          each semi-annual assessment period.

          The FDIC may terminate the deposit insurance of any insured depository
          institution if the FDIC determines, after a hearing, that the
          institution has engaged or is engaging in unsafe or unsound practices,
          is in an unsafe or unsound condition to continue operations or has
          violated any applicable law,

<PAGE>

          regulation, order, or any condition imposed in writing by, or written
          agreement with, the FDIC. The FDIC may also suspend deposit insurance
          temporarily during the hearing process for a permanent termination of
          insurance if the institution has no tangible capital. Management of
          the Company is not aware of any activity or condition that could
          result in termination of the deposit insurance of CITIZENS.

          Capital Requirements. The Federal Reserve Board, ODFI and FDIC require
          banks and holding companies to maintain minimum capital ratios. The
          "risk-adjusted" capital guidelines for CITIZENS and the Company
          involve a mathematical process of assigning various risk weights to
          different classes of assets, then evaluating the sum of the
          risk-weighted balance sheet structure against CITIZENS's and Company's
          capital base. The rules set the minimum guidelines for the ratio of
          capital to risk-weighted assets (including certain off-balance sheet
          activities, such as standby letters of credit) at 8%. Tier 1 Capital
          is comprised of common equity, retained earnings, and a limited amount
          of perpetual preferred stock less certain intangible items. At least
          half of the total capital is to be Tier 1 Capital. The remainder may
          consist of a limited amount of subordinated debt, other preferred
          stock, and a portion of the loan loss reserves (not to exceed 1.25% of
          risk-weighted assets). CITIZENS anticipates maintaining capital at a
          level sufficient to be classified as "well capitalized" pursuant to
          the Federal Reserve guidelines.

          In addition, the federal banking regulatory agencies have adopted
          leverage capital guidelines for banks and bank holding companies.
          Under these guidelines, banks and bank holding companies must maintain
          a minimum ratio of three percent (3%) Tier 1 Capital to total assets.
          However, most banking organizations are expected to maintain capital
          ratios well in excess of the minimum level and generally must keep
          their Tier 1 ratio at or above 5%. CITIZENS intends to maintain
          capital well above the regulatory minimum.

          The capital requirements described above are minimum requirements.
          Higher capital levels will be required if warranted by the particular
          circumstances or risk profiles of individual institutions. For
          example, the regulations provide that additional capital may be
          required to take adequate account of, among other things, interest
          rate risk or the risks posed by concentrations of credit,
          nontraditional activities or securities trading activities. As of
          December 31, 2007, CITIZENS exceeded its minimum regulatory capital
          requirements with a total risk-based capital ratio of 14.14%, a Tier 1
          risk-based capital ratio of 13.23% and aTier 1 leverage ratio of
          8.07%.

          In addition to the minimum regulatory capital requirements discussed
          above, provisions contained in the Federal Deposit Insurance
          Corporation Improvement Act ("FDICIA") expressly provide for certain
          supervisory actions which are directly keyed to the capital levels of
          an insured depository institution. These "prompt corrective action"
          provisions impose progressively more restrictive constraints on
          operations, management and capital distributions of a particular
          institution as its regulatory capital decreases. Using Tier 1
          risk-based, total risk-based, and Tier 1 leverage capital ratios as
          the relevant measures, FDIC insured depository institutions are
          grouped into one of the following five prompt corrective action
          capital categories: well capitalized, adequately capitalized;
          undercapitalized; significantly undercapitalized; and critically
          undercapitalized. An institution is considered well capitalized if it
          has a total risk-based capital ratio of at least 10%, a Tier 1
          risk-based capital ratio of at least 6% and a Tier 1 leverage capital
          ratio of at least 5%, provided, however, such institution is not
          subject to a written advisement, order or capital directive to meet
          and maintain a specific capital level for any particular capital
          measure. An adequately capitalized institution must have a total
          risk-based capital ratio of at least 8%, a Tier 1 risk-based capital
          ratio of at least 4% and a Tier 1 leverage capital ratio of at least
          4% (3% if the institution has achieved the highest composite rating in
          its most recent examination). At December 31, 2007, CITIZENS satisfied
          all requirements for inclusion in the "well capitalized" category.

          Dividends. Ohio law prohibits CITIZENS, without the prior approval of
          the ODFI, from paying dividends in an amount greater than the lesser
          of its undivided profits or the total of its net income for that year,
          combined with its retained net income from the preceding two years.
          The payment of dividends by any financial institution or its holding
          company is also affected by the requirement to maintain adequate
          capital pursuant to applicable capital adequacy guidelines and
          regulations, and a financial institution generally is prohibited from
          paying any dividends if, following payment thereof, the institution
          would be under-capitalized. As described above, CITIZENS exceeded its
          minimum capital requirements under applicable guidelines as of
          December 31, 2007.

          Branching Authority. Ohio chartered banks have the authority under
          Ohio law to establish branches anywhere in the State of Ohio, subject
          to receipt of all required regulatory approvals. Additionally, in May
          1997 Ohio adopted legislation "opting in" to the provisions of
          Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994
          (the "Interstate Act") which allows banks to establish interstate
          branch networks through acquisitions of other banks, subject to
          certain conditions, including certain limitations

<PAGE>

          on the aggregate amount of deposits that may be held by the surviving
          bank and all of its insured depository institution affiliates. The
          establishment of de novo interstate branches or the acquisition of
          individual branches of a bank in another state (rather than the
          acquisition of an out-of-state bank in its entirety) is also allowed
          by the Riegle-Neal Act and authorized by Ohio law.

          Affiliate Transactions. Various governmental requirements, including
          Sections 23A and 23B of the Federal Reserve Act, limit borrowings by
          holding companies and non-bank subsidiaries from affiliated insured
          depository institutions, and also limit various other transactions
          between holding companies and their non-bank subsidiaries, on the one
          hand, and their affiliated insured depository institutions on the
          other. Section 23A of the Federal Reserve Act also generally requires
          that an insured depository institution's loan to its non-bank
          affiliates be secured, and Section 23B of the Federal Reserve Act
          generally requires that an insured depository institution's
          transactions with its non-bank affiliates be on arms-length terms.

          Depositor Preference. The Federal Deposit Insurance Act provides that,
          in the event of the "liquidation or other resolution" of an insured
          depository institution, the claims of depositors of the institution,
          including the claims of the FDIC as subrogee of insured depositors,
          and certain claims for administrative expenses of the FDIC as a
          receiver, will have priority over other general unsecured claims
          against the institution. If an insured depository institution fails,
          insured and uninsured depositors, along with the FDIC, will have
          priority in payment ahead of unsecured, non deposit creditors and
          shareholders of the institution.

          Privacy Provisions of Gramm-Leach-Bliley Act. Under GLB, federal
          banking regulators adopted rules that limit the ability of banks and
          other financial institutions to disclose non-public information about
          consumers to non-affiliated third parties. These limitations require
          disclosure of privacy policies to consumers and, in some
          circumstances, allow consumers to prevent disclosure of certain
          personal information to non-affiliated third parties. The privacy
          provisions of GLB affect how consumer information is transmitted
          through diversified financial companies and conveyed to outside
          vendors.

          Anti-Money Laundering Provisions of the USA Patriot Act of 2001. On
          October 26, 2001, the USA Patriot Act of 2001 (the "Patriot Act") was
          signed into law. The Patriot Act is intended to strengthen U.S. law
          enforcement's and the intelligence community's ability to work
          cohesively to combat terrorism on a variety of fronts. The potential
          impact of the Patriot Act on financial institutions of all kinds is
          significant and wide-ranging. The Patriot Act contains sweeping
          anti-money laundering and financial transparency laws and requires
          various regulations, including: (a) due diligence requirements for
          financial institutions that administer, maintain, or manage private
          bank accounts or correspondent accounts for non-U.S. persons; (b)
          standards for verifying customer identification at account opening;
          and (c) rules to promote cooperation among financial institutions,
          regulators and law enforcement entities in identifying parties that
          may be involved in terrorism or money laundering.

          Fiscal and Monetary Policies. CITIZENS's business and earnings are
          affected significantly by the fiscal and monetary policies of the
          federal government and its agencies. CITIZENS is particularly affected
          by the policies of the Federal Reserve Board, which regulates the
          supply of money and credit in the United States. Among the instruments
          of monetary policy available to the Federal Reserve are (a) conducting
          open market operations in United States government securities, (b)
          changing the discount rates of borrowings of depository institutions,
          (c) imposing or changing reserve requirements against depository
          institutions' deposits, and (d) imposing or changing reserve
          requirements against certain borrowing by banks and their affiliates.
          These methods are used in varying degrees and combinations to affect
          directly the availability of bank loans and deposits, as well as the
          interest rates charged on loans and paid on deposits. For that reason
          alone, the policies of the Federal Reserve Board have a material
          effect on the earnings of CITIZENS.

          Additional and Pending Regulation. CITIZENS is also subject to federal
          regulation as to such matters as the maintenance of required reserves
          against deposits, limitations in connection with affiliate
          transactions, limitations as to the nature and amount of its loans and
          investments, regulatory approval of any merger or consolidation,
          issuance or retirement by CITIZENS of its own securities and other
          aspects of banking operations. In addition, the activities and
          operations of CITIZENS are subject to a number of additional detailed,
          complex and sometimes overlapping laws and regulations. These include
          state usury and consumer credit laws, state laws relating to
          fiduciaries, the Federal Truth-in-Lending Act and Regulation Z, the
          Federal Equal Credit Opportunity Act and Regulation B, the Fair Credit
          Reporting Act, the Truth in Savings Act, the Community Reinvestment
          Act, anti-redlining legislation and antitrust laws.

          Congress regularly considers legislation that may have an impact upon
          the operation of the Company and CITIZENS. At this time, the Company
          is unable to predict whether any proposed legislation will be

<PAGE>

          enacted and, therefore, is unable to predict the impact such
          legislation may have on the operations of the Company.

          EMPLOYEES

          The Company itself, as a holding company, has no compensated
          employees. CITIZENS has 104 full time employees, with 30 of these
          serving in a management capacity, and 19 part time employees.

          INDUSTRY SEGMENTS

          United Bancorp and its subsidiary are engaged in one line of business,
          banking. Item 8 of this 10-K provides financial information for United
          Bancorp's business.

          REPORTS TO SECURITY HOLDERS

          The Company files annual reports on Form 10-K, quarterly reports on
          Form 10-Q, current reports on Form 8-K and proxy solicitation
          materials, as applicable, under Commission Regulation 14A. The public
          may read and copy any materials the Company files with the Commission
          at the SEC's Public Reference Room at 100 F. Street, NE, Washington,
          DC 20549, on official business days during the hours of 10:00 am to
          3:00 pm. The public may obtain information on the operation of the
          Public Reference Room by calling the Commission at 1-800-SEC-0330. The
          Commission maintains an Internet site that contains reports, proxy and
          information statements, and other information regarding issuers that
          file electronically with the Commission at HTTP://WWW.SEC.GOV. The
          Company's internet website is WWW.UNITEDBANCORP.COM.

     I    DISTRIBUTION OF ASSETS, LIABILITIES AND STOCKHOLDERS EQUITY; INTEREST
          RATES AND INTEREST DIFFERENTIAL

          Refer to Management's Discussion and Analysis "Average Balances, Net
          Interest Income and Yields Earned and Rates Paid" beginning on page 23
          of our 2007 Annual Report, which is incorporated by reference.

     II   INVESTMENT PORTFOLIO

     A    The following table sets forth the carrying amount of securities at
          December 31, 2007, 2006 and 2005:

<TABLE>
<CAPTION>
                                                  DECEMBER 31,
                                         ------------------------------
            (In thousands)                 2007       2006       2005
                                         --------   --------   --------
<S>                                      <C>        <C>        <C>
AVAILABLE FOR SALE (AT MARKET)
   US Government agency obligations      $113,002   $ 79,864   $ 75,483
   Mortgage-backed securities              23,602     28,221     35,440
   Collateralized mortgage obligations        630        765      2,230
   State and municipal obligations         28,070     24,953      8,769
   Equity securities                           20          5         24
                                         --------   --------   --------
                                         $165,324   $133,808   $121,946
                                         ========   ========   ========
HELD TO MATURITY (AT COST)
   State and municipal obligations       $ 16,142   $ 17,870   $ 20,262
                                         ========   ========   ========
</TABLE>

<PAGE>

     B    Contractual maturities of securities at year-end 2007 were as follows:

<TABLE>
<CAPTION>
                                                                   AVERAGE
                                      AMORTIZED    ESTIMATED   TAX EQUIVALENT
AVAILABLE FOR SALE                       COST     FAIR VALUE        YIELD
------------------                    ---------   ----------   --------------
                                            (Dollars in Thousands)
<S>                                   <C>         <C>          <C>
US GOVERNMENT AGENCY OBLIGATIONS
Under 1 year                                 --          --           --
   1-5 years                           $  5,892    $  5,908         4.34%
   5-10 years                            19,007      19,048         5.11%
   Over 10 years                         87,571      88,046         5.80%
                                       --------    --------         ----
      Total                             112,470     113,002         5.60%
                                       --------    --------         ----
MORTGAGE-BACKED SECURITIES
   Under 1 year                             273         273         4.23%
   1-5 years                              4,128       4,075         4.11%
   5-10 years                             3,505       3,487         4.43%
   Over 10 years                         16,008      15,767         4.57%
                                       --------    --------         ----
      Total                              23,914      23,602         4.46%
                                       --------    --------         ----
COLLATERALIZED MORTGAGE OBLIGATIONS
Under 1 year                                 --          --           --
   1-5 years                                190         189         4.29%
   5-10 years                               238         235         4.31%
   Over 10 years                            207         206         4.59%
                                       --------    --------         ----
      Total                                 635         630         4.40%
                                       --------    --------         ----
STATE AND MUNICIPAL OBLIGATIONS
   Under 1 year                              --          --           --
   1-5 years                              1,752       1,776         6.42%
   5-10 years                             4,765       4,760         5.05%
   Over 10 years                         21,556      21,534         5.76%
                                       --------    --------         ----
      Total                              28,073      28,070         5.68%
                                       --------    --------         ----
OTHER SECURITIES
   Equity securities                          4          20         0.00%
                                       --------    --------         ----
TOTAL SECURITIES AVAILABLE FOR SALE    $165,096    $165,324         5.32%
                                       ========    ========         ====
HELD TO MATURITY
STATE AND MUNICIPAL OBLIGATIONS
   Under 1 year                              --          --           --
   1-5 years                           $  2,803    $  2,894         6.96%
   5-10 years                             5,714       5,858         6.99%
   Over 10 years                          7,625       7,729         6.06%
                                       --------    --------         ----
 TOTAL SECURITIES HELD TO MATURITY     $ 16,142    $ 16,481         6.23%
                                       ========    ========         ====
</TABLE>

     C    Excluding holdings of U.S. Agency obligations, there were no
          investments in securities of any one issuer exceeding 10% of the
          Company's consolidated shareholders' equity at December 31, 2007.

     III  LOAN PORTFOLIO

          A    TYPES OF LOANS

               The amounts of gross loans outstanding at December 31, 2007,
               2006, 2005, 2004 and 2003 are shown in the following table
               according to types of loans:
<PAGE>

<TABLE>
<CAPTION>
                                                    December 31,
                                ----------------------------------------------------
        (In thousands)            2007       2006       2005       2004       2003
-----------------------------   --------   --------   --------   --------   --------
<S>                             <C>        <C>        <C>        <C>        <C>
Commercial loans                $ 59,785   $ 40,512   $ 32,675   $ 35,309   $ 28,049
Commercial real estate loans      74,660     92,895     97,706     83,103     68,902
Residential real estate loans     58,524     56,167     57,746     55,062     52,237
Installment loans                 41,675     41,943     43,884     41,973     49,421
                                --------   --------   --------   --------   --------
   Total loans                  $234,644   $231,517   $232,011   $215,447   $198,609
                                ========   ========   ========   ========   ========
</TABLE>

          Construction loans were not significant at any date indicated above.

     B    MATURITIES AND SENSITIVITIES OF LOANS TO CHANGES IN INTEREST RATES

          The following is a schedule of commercial and commercial real estate
          loans at December 31, 2007 maturing within the various time frames
          indicated:

<TABLE>
<CAPTION>
                               One Year   One Through      After
       (In thousands)          Or Less     Five Years   Five Years     Total
----------------------------   --------   -----------   ----------   --------
<S>                            <C>        <C>           <C>          <C>
Commercial loans                $13,808     $16,805       $29,172    $ 59,785
Commercial real estate loans     12,717       8,193        53,750      74,660
                                -------     -------       -------    --------
   Total                        $26,525     $24,998       $82,922    $134,445
                                =======     =======       =======    ========
</TABLE>

          The following is a schedule of fixed-rate and variable-rate commercial
          and commercial real estate loans at December 31, 2007 due to mature
          after one year:

<TABLE>
<CAPTION>
                                FIXED    VARIABLE    TOTAL >
       (In thousands)            RATE      RATE     ONE YEAR
----------------------------   -------   --------   --------
<S>                            <C>       <C>        <C>
Commercial loans               $27,284    $18,693   $ 45,977
Commercial real estate loans    10,689     51,254     61,943
                               -------    -------   --------
   Total                       $37,973    $69,947   $107,920
                               =======    =======   ========
</TABLE>

          Variable rate loans are those loans with floating or adjustable
          interest rates.

     C    RISK ELEMENTS

          1.   NONACCRUAL, PAST DUE, RESTRUCTURED AND IMPAIRED LOANS

          The following schedule summarizes nonaccrual loans, accruing loans
          which are contractually 90 days or more past due, and impaired loans
          at December 31, 2007, 2006 2005, 2004 and 2003:

<TABLE>
<CAPTION>
                                       DECEMBER 31,
                         ----------------------------------------
     (In thousands)       2007     2006     2005     2004    2003
----------------------   ------   ------   ------   ------   ----
<S>                      <C>      <C>      <C>      <C>      <C>
Nonaccrual basis (1)     $1,822   $3,396   $1,144   $1,106   $101
Accruing loans 90 days
   or greater past due
   (4)                   $2,585   $   55   $  417   $  500   $655
Impaired loans (2) (3)   $3,399   $3,122   $  875       --     --
Impaired loans with
   related allowance
   for unconfirmed
   losses (5)            $2,347   $1,012       --       --     --
Impaired loans without
   related allowance
   for unconfirmed
   losses(6)             $1,051   $2,110   $  875       --     --
</TABLE>

<PAGE>

(1)  There were no restructured loans at any of the dates indicated above. For
     years 2003 through 2006,, all of the Company's impaired loans were on a
     nonaccrual basis. For 2007, includes $1,675,000 of impaired loans

(2)  Loans considered impaired under the provisions of SFAS No. 114 and interest
     recognized on a cash received basis were not material for 2003 through
     2004, inclusive. Interest recognized on impaired loans in 2007 was $84,000
     and in 2006 it was $309,000.

(3)  Additional information incorporated by reference on page 44 of the Notes to
     Consolidated Financial Statements set forth in our 2007 Annual Report,
     which is incorporated herein by reference.

(4)  Loans past due greater than 90 days and still accruing totaling $1,724,000
     in 2007 are also classified as impaired loans.

(5)  Includes $1,082,000 of loans past due greater than 90 days and still
     accruing and $1,266,000 of nonaccrrual loans at December 31, 2007.

(6)  Includes $642,000 of loans past due greater than 90 days and $409,000 of
     nonaccrual loans at December 31, 2007.

          The additional amount of interest income that would have been recorded
          on nonaccrual loans, had they been current, totaled approximately
          $128,000 and $218,000 for the years ended December 31, 2007 and 2006.
          At that date, all impaired loans were commercial or commercial real
          estate loans.

          Interest income is not reported when full loan repayment is doubtful,
          typically when the loan is impaired or payments are past due over 90
          days. Payments received on such loans are reported as principal
          reductions.

          The allowance for loan losses is a valuation allowance for probable
          incurred credit losses, increased by the provision for loan losses and
          decreased by charge-offs less recoveries. Management estimates the
          allowance balance required based on past loan loss experience, the
          nature and volume of the portfolio, information about specific
          borrower situations and estimated collateral values, economic
          conditions and other factors. Allocations of the allowance may be made
          for specific loans, but the entire allowance is available for any loan
          that, in management's judgment, should be charged-off. Loan losses are
          charged against the allowance when management believes the
          uncollectibility of a loan balance is confirmed. The Company accounts
          for impaired loans in accordance with SFAS No. 114, "Accounting for
          Creditors for Impairment of a Loan." SFAS 114 requires that impaired
          loans be measured based upon the present value of expected future cash
          flows discounted at the loan's effective interest rate or, as an
          alternative, at the loan's observable market price or fair value of
          the collateral. A loan is defined under SFAS No. 114 as impaired when,
          based on current information and events, it is probable that a
          creditor will be unable to collect all amounts due according to the
          contractual terms of the loan agreement. In applying the provisions of
          SFAS No. 114, the Company considers its investment in one-to-four
          family residential loans and consumer installment loans to be
          homogenous and therefore excluded from separate identification for
          evaluation of impairment. With respect to the Company's investment in
          nonresidential and multi-family residential real estate loans, and its
          evaluation of impairment thereof, such loans are generally collateral
          dependent and, as a result, are carried as a practical expedient at
          the fair value of the collateral.

          Collateral dependent loans which are more than ninety days delinquent
          are considered to constitute more than a minimum delay in repayment
          and are evaluated for impairment under SFAS No. 114 at that time.

          2.   POTENTIAL PROBLEM LOANS

          The Company had no potential problem loans as of December 31, 2007
          which have not been disclosed in Table C 1., but where known
          information about possible credit problems of borrowers causes
          management to have serious doubts as to the ability of such borrowers
          to comply with the present loan repayment terms and which may result
          in disclosure of such loans into one of the problem loan categories.

<PAGE>

          3.   LOAN CONCENTRATIONS

          Refer to Page 67, Note 19 of Notes to Consolidated Financial
          Statements set forth in our 2007 Annual Report, which is incorporated
          herein by reference.

     IV   SUMMARY OF LOAN LOSS EXPERIENCE

          For additional explanation of factors which influence management's
          judgment in determining amounts charged to expense, refer to pages 13
          and 16 of the "Management's Discussion and Analysis" and Notes to
          Consolidated Financial Statements set forth in our 2007 Annual Report,
          which is incorporated herein by reference.

          A    ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES

               The following schedule presents an analysis of the allowance for
               loan losses, average loan data and related ratios for the years
               ended December 31, 2007, 2006, 2005, 2004 and 2003:

<TABLE>
<CAPTION>
   (Dollars in thousands)        2007       2006       2005       2004       2003
----------------------------   --------   --------   --------   --------   --------
<S>                            <C>        <C>        <C>        <C>        <C>
LOANS
Loans outstanding              $234,644   $231,517   $232,011   $215,447   $198,608
Average loans outstanding      $228,673   $234,436   $224,945   $208,658   $192,725
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of year   $  2,345   $  2,904   $  2,995   $  2,843   $  2,971
Loan Charge-offs:
   Commercial                       206      1,420         89         58        250
   Commercial real estate            --         --         --         --         79
   Residential real estate          349        350        331         16         28
   Installment                      583        377        342        645        459
                               --------   --------   --------   --------   --------
Total loan charge-offs            1,138      2,147        762        719        816
                               --------   --------   --------   --------   --------
Loan recoveries
   Commercial                         9         22          7          4          3
   Commercial real estate            --         --         --         --         --
   Residential real estate           52         34         50          7          3
   Installment                      186        148        202        242        142
                               --------   --------   --------   --------   --------
Total loan recoveries               247        204        259        253        148
                               --------   --------   --------   --------   --------
Net loan charge-offs                891      1,943        503        466        668
Provision for loan losses           993      1,384        412        618        540
                               --------   --------   --------   --------   --------
Balance at end of year         $  2,447   $  2,345   $  2,904   $  2,995   $  2,843
                               ========   ========   ========   ========   ========
Ratio of net charge-offs to
   average loans                   0.39%      0.83%      0.22%      0.22%      0.35%
                               --------   --------   --------   --------   --------
</TABLE>

<PAGE>

     B    ALLOCATION OF THE ALLOWANCE FOR LOAN LOSSES

          The following table allocates the allowance for loan losses at
          December 31, 2007, 2006, 2005, 2004 and 2003. Management adjusts the
          allowance periodically to account for changes in national trends and
          economic conditions in the Bank's service areas. The allowance has
          been allocated according to the amount deemed to be reasonably
          necessary to provide for the probability of losses being incurred
          within the following categories of loans at the dates indicated:

<TABLE>
<CAPTION>
(Dollars in
thousands)                 2007                   2006                   2005                   2004                   2003
----------------   --------------------   --------------------   --------------------   --------------------   --------------------
                                % Loans                % Loans                % Loans                % Loans                % Loans
                   Allowance   to Total   Allowance   to Total   Allowance   to Total   Allowance   to Total   Allowance   to Total
Loan type            Amount     Loans       Amount      Loans      Amount      Loans      Amount      Loans      Amount      Loans
----------------   ---------   --------   ---------   --------   ---------   --------   ---------   --------   ---------   --------
<S>                <C>         <C>        <C>         <C>        <C>         <C>        <C>         <C>        <C>         <C>
Commercial           $  765      25.48%     $  636      17.50%     $  502      14.08%     $  530      16.39%     $  452      14.13%
Commercial Real
   Estate               974      31.82%        777      40.12%      1,092      42.11%      1,136      38.57%      1,005      34.69%
Residential Real
   Estate               117      24.94%        138      24.26%        310      24.89%        313      25.56%        387      26.30%
Installment             243      17.76%        442      18.12%        739      18.92%        532      19.48%        982      24.88%
Unallocated             348        N/A         352        N/A         261        N/A         484        N/A          17        N/A
                     ------     ------      ------     ------      ------     ------      ------     ------      ------     ------
   Total             $2,447     100.00%     $2,345     100.00%     $2,904     100.00%     $2,995     100.00%     $2,843     100.00%
                     ======     ======      ======     ======      ======     ======      ======     ======      ======     ======
</TABLE>

     V    DEPOSITS

          A    SCHEDULE OF AVERAGE DEPOSIT AMOUNTS AND RATES

               Refer to Management's Discussion and Analysis and Results of
               Operations "Average Balances, Net Interest Income and Yields
               Earned and Rates Paid" set forth in our 2007 Annual Report and
               incorporated herein by reference.

          B    MATURITY ANALYSIS OF TIME DEPOSITS GREATER THAN $100,000.

          The time to remaining maturity for time deposits in excess of $100,000
          are:

<TABLE>
<CAPTION>
 (Dollars in thousands)      2007
------------------------   -------
<S>                        <C>
Less than 3 months         $ 9,870
Over 3 through 6 months      8,567
Over 6 through 12 months    13,371
Over 12 months               6,704
                           -------
Totals                     $38,512
                           =======
</TABLE>

     VI   RETURN ON EQUITY AND ASSETS

          Our dividend payout ratio and equity to assets ratio were as follows:

<TABLE>
<CAPTION>
                             DECEMBER 31,
                        ----------------------
                         2007     2006    2005
                        -----   ------   -----
<S>                     <C>     <C>      <C>
Dividend Payout Ratio   91.23%  106.67%  61.97%
Equity to Assets         7.51%    7.73%   7.88%
</TABLE>

          For other ratios refer to the inside front cover of our 2007 Annual
          Report to Shareholders, incorporated herein by reference.

<PAGE>

     VII  SHORT-TERM BORROWINGS

          Information concerning securities sold under agreements to repurchase
          is summarized as follows:

<TABLE>
<CAPTION>
            (Dollars In thousands)                 2007      2006      2005
----------------------------------------------   -------   -------   -------
<S>                                              <C>       <C>       <C>
Balance at December 31,                          $10,942   $ 6,218   $ 7,142
Weighted average interest rate at December 31       3.77%     4.26%     2.49%
Average daily balance during the year            $11,864   $10,557   $10,129
Average interest rate during the year               4.47%     4.18%     2.58%
Maximum month-end balance during the year        $14,967   $22,659   $14,555
</TABLE>

          Securities sold under agreements to repurchase are financing
          arrangements whereby the Company sells securities and agrees to
          repurchase the identical securities at the maturities of the
          agreements at specified prices.

          Information concerning the cash management line of credit from the
          Federal Home Loan Bank of Cincinnati, Ohio is summarized as follows:

<TABLE>
<CAPTION>
           (Dollars in thousands)                  2007      2006      2005
----------------------------------------------   -------   -------   -------
<S>                                              <C>       <C>       <C>
Balance at December 31,                          $34,500   $33,175   $35,000
Weighted average interest rate at December 31,      4.74%     5.79%     3.62%
Average daily balance during the year            $11,360   $31,034   $27,217
Average interest rate during the year               4.39%     4.99%     3.44%
Maximum month-end balance during the year        $34,500   $39,510   $36,057
</TABLE>

          No other individual component of borrowed funds comprised more than
          30% of shareholders' equity and accordingly is not disclosed in
          detail.

          SUPPLEMENTAL ITEM - EXECUTIVE OFFICERS OF THE REGISTRANT

          Pursuant to General Instruction G(3) of Form 10-K, the following
          information on the executive officers of the Company is included as an
          additional item in Part I:

<TABLE>
<CAPTION>
                               Executive Officers Positions held with Company;
Name                     Age   Business Experience
----------------------   ---   ------------------------------------------------------------
<S>                      <C>   <C>
James W. Everson          69   Chairman, President and Chief Executive Officer
Scott Everson             40   Senior Vice President and Chief Operating Officer
Randall M. Greenwood      44   Senior Vice President and Chief Financial Officer, Treasurer
James A. Lodes            62   Vice President - Chief Lending Officer
Norman F. Assenza, Jr.    62   Vice President - Chief Compliance Officer
Michael A. Lloyd          39   Vice President - Chief Information Officer
</TABLE>

          Each individual has held the position noted during the past five
          years, except for the following:

          Scott A. Everson served as President and Chief Operating Officer from
          April 2002 to November 2004 and Senior Vice President, Operations and
          Retail Banking, of The Citizens Savings Bank from May 1999 to April
          2002. Prior to that he served as Assistant Vice President/Branch
          Manager Bridgeport Office from 1997 to May 1999. In addition, he is
          currently President and Chief Executive Office and a Director of The
          Citizens Savings Bank. He has held this position since November 2004.

<PAGE>

          Each of these Executive Officers are serving at-will in their current
          positions. The Officers have held the positions for the following time
          periods: James W. Everson, 25 years, Norman F. Assenza, Jr., 25 years,
          James A. Lodes, 12 years, Michael Lloyd, 5 years and Randall M.
          Greenwood, 10 years.

ITEM 1A. RISK FACTORS

          An investment in the Company's common stock is subject to risks
          inherent to the Company's business. The material risks and
          uncertainties that management believes affect the Company are
          described below. Before making an investment decision, investors
          should carefully consider the risks and uncertainties described below
          together with all the other information included or incorporated by
          reference in this report. The risks and uncertainties described below
          are not the only ones facing the Company. Additional risks and
          uncertainties that Management is not aware of or focused on or that
          management currently deems immaterial may also impair the Company's
          business operations. This report is qualified in its entirety by these
          risk factors.

          If any of the following risks actually occur, the Company's financial
          condition and results of operations could be materially and adversely
          affected. If this were to happen, the value of the Company's common
          stock could decline significantly, and investors would lose all or
          part of their investment.

RISKS RELATED TO THE COMPANY'S BUSINESS

          INTEREST RATE RISK - The Company's earnings and cash flows are largely
          dependent upon its net interest income. Net interest income is the
          difference between interest income earned on interest earning assets
          such as loans and securities and interest expense paid on interest
          bearing liabilities such as deposits and borrowings. Interest rates
          are highly sensitive to many factors that are beyond the Company's
          control, including general economic and market conditions and policies
          of various governmental and regulatory agencies and, in particular,
          the Board of Governors of the Federal Reserve System. Changes in
          monetary policy, including changes in interest rates, could influence
          not only the interest the Company receives on loans and investment
          securities and the amount of interest it pays on deposits and
          borrowings, but such changes could also affect the Company's ability
          to originate loans and obtain deposits and the fair values of the
          Company's financial assets and liabilities. If the interest rates paid
          on deposits and other borrowings increase at a faster rate or decrease
          at a slower rate than the interest rates received on loans and
          investments, the Company's net interest income, and therefore
          earnings, could be adversely affected.

          Although management believes it has implemented effective asset and
          liability management strategies to reduce the potential effects of
          changes in interest rates on the Company's results of operations, any
          substantial, unexpected, or prolonged change in market interest rates
          or in the term structure of interest rates could have a material
          adverse effect on the Company's financial condition and results of
          operations. See Item 7A. Quantitative and Qualitative Disclosures
          about Market Risk in this report for further discussion related to the
          Company's management if interest rate risk.

          LENDING RISK - There are inherent risks associated with the Company's
          lending activities. These risks include, among other things, the
          impact of changes in interest rates and changes in economic conditions
          in the markets where the Company operates as well as those across the
          State of Ohio and the United States. Increases in interest rates
          and/or weakening economic conditions could adversely impact the
          ability of borrowers to repay outstanding loans or the value of the
          collateral securing these loans. The Company is also subject to
          various laws and regulations that affect its lending activities.
          Failure to comply with applicable laws and regulations could subject
          the Company to regulatory enforcement action that could result in the
          assessment of significant civil money penalties against the Company.

          The Company maintains an Allowance for Loan Losses, which is a reserve
          established through a provision for loan losses charged to expense,
          that represents management's best estimate of probable and inherent
          loan losses that have been incurred within the existing portfolio of
          loans. The Allowance, in the judgment of management, is necessary to
          reserve for estimated loan losses and risks inherent in the loan
          portfolio. The level of the Allowance reflects management's continuing
          evaluation of loan loss experience, current loan portfolio quality,
          present economic, political, and regulatory conditions, and
          unidentified losses inherent in the current loan portfolio. The
          determination of the appropriate level of the Allowance inherently
          involves a high degree of subjectivity and requires the Company to
          make significant estimates of current credit risks and future trends,
          all of which may undergo material changes. Changes in economic
          conditions affecting borrowers, new information regarding existing
          loans, identification of additional problem loans, and other factors,
          both within and outside of the Company's control, may require an
          increase in the Allowance. In addition, bank regulatory agencies
          periodically review the Company's Allowance and may require an
          increase in the provision for loan losses or the recognition of
          further loan charge-offs, based on judgments different from those of
          management.

<PAGE>

          ECONOMIC RISK - The Company's success depends significantly on the
          general economic conditions of Southeastern and Central Ohio. Unlike
          larger regional or national banks that are more geographically
          diversified, the Company provides banking and financial services to
          customers primarily in Southeast and Central Ohio and Northeast West
          Virginia. The local economic conditions in these areas have a
          significant impact on the demand for the Company's products and
          services as well as the ability of the Company's customers to repay
          loans, the value of the collateral securing loans, and the stability
          of the Company's deposit funding sources. A significant decline in
          general economic conditions caused by inflation, recession, acts of
          terrorism, unemployment, changes in securities markets or other
          factors could impact these local economic conditions and, in turn,
          have a material adverse effect on the Company's financial condition
          and results of operations.

          COMPETITIVE RISK - The Company faces substantial competition in all
          areas of its operations from a variety of different competitors, many
          of which are larger and may have more financial resources. Such
          competitors primarily include regional and national banks within the
          market the Company operates. The Company also faces competition from
          many other types of financial institutions, including savings and loan
          institutions, credit unions, finance companies, brokerage firms,
          insurance companies, and other financial intermediaries. The financial
          services industry could become even more competitive as a result of
          legislative, regulatory, and technological changes and continued
          consolidation. Banks, securities firms, and insurance companies can
          merge under the umbrella of a financial holding company, which can
          offer virtually any type of financial service, including banking,
          securities underwriting, and insurance. Also, technology has lowered
          barriers to entry and made it possible for non-banks to offer products
          and services traditionally provided by banks, such as automatic
          transfer and automatic payment systems. Many of the Company's
          competitors have fewer regulatory constraints, and may have lower cost
          structures. Additionally, many competitors may be able to achieve
          economies of scale, and as a result, may offer a broader range of
          products and services as well as better pricing for those products and
          services. Increased competition could adversely affect the Company's
          growth and profitability, which, in turn, could have a material
          adverse effect on the Company's financial condition and results of
          operations.

          REGULATORY RISK - The Company is subject to extensive federal and
          state regulation and supervision. Banking regulations are primarily
          intended to protect depositors' funds, federal deposit insurance
          funds, and the banking system as a whole, not shareholders. These
          regulations affect the Company's lending practices, capital structure,
          investment practices, dividend policy, and growth, among other things.
          Congress and federal regulatory agencies continually review banking
          laws, regulations, and policies for possible changes. Changes to
          statutes, regulations, or regulatory policies, including changes in
          interpretation or implementation of statutes, regulations, or
          policies, could affect the Company in substantial and unpredictable
          ways. Such changes could subject the Company to additional costs,
          limit the types of financial services and products the Company may
          offer and/or increase the ability of non-banks to offer competing
          financial products and services, among other things. Failure to comply
          with laws, regulations, or policies could result in sanctions by
          regulatory agencies, civil money penalties, and/or reputation damage,
          which could have a material adverse effect on the Company's business,
          financial condition, and results of operations. While the Company has
          policies and procedures designed to prevent any such violations, there
          can be no assurance that such violations will not occur.

          FAILURE OR CIRCUMVENTION OF CONTROLS AND PROCEDURES - Management
          regularly reviews and updates the Company's internal controls,
          disclosure controls, and procedures, and corporate governance policies
          and procedures. Any system of controls, however well designed and
          operated, is based in part on certain assumptions and can provide only
          reasonable, not absolute, assurances that the objectives of the system
          are met. Any failure or circumvention of the Company's controls and
          procedures or failure to comply with regulations related to controls
          and procedures could have a material adverse effect on the Company's
          business, results of operations, and financial condition.

ITEM 1B. UNRESOLVED STAFF COMMENTS

          None.

<PAGE>

ITEM 2 PROPERTIES

          The Company owns and operates its Main Office and stand alone
          operations center in Martins Ferry, Ohio and the following offices:

<TABLE>
<CAPTION>
Location
--------
<S>                      <C>
Bridgeport, Ohio         Owned
Colerain, Ohio           Owned
Jewett, Ohio             Owned
St. Clairsville, Ohio    Leased
Dover, Ohio              Owned
Dellroy, Ohio            Owned
New Philadelphia, Ohio   Owned
Strasburg, Ohio          Owned
Sherrodsville, Ohio      Owned
Glouster, Ohio           Owned
Glouster, Ohio           Owned
Amesville, Ohio          Owned
Nelsonville, Ohio        Owned
Lancaster, Ohio          Owned
Lancaster, Ohio          Owned
Lancaster, Ohio          Owned
</TABLE>

          Management believes the properties described above to be in good
          operating condition for the purpose for which they are used. The
          properties are unencumbered by any mortgage or security interest and
          are, in management's opinion, adequately insured.

ITEM 3 LEGAL PROCEEDINGS

          There are no material legal proceedings, other than ordinary routine
          litigation incidental to its business, to which the Company or its
          subsidiary is a party or to which any of its property is subject.

ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

          No matters were submitted to shareholders for a vote during the fourth
          quarter of 2007.

PART II

ITEM 5 MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND
ISSUER PURCHASES OF EQUITY SECURITIES

          Refer to Page 7, "Shareholder Information" of the 2007 Annual Report
          To Shareholders and refer to Page 39, Note 1 of the Notes to the
          Consolidated Financial Statements of the Company in the 2007 Annual
          Report To Shareholders for common stock trading ranges, cash dividends
          declared and information relating to dividend restrictions, which are
          incorporated herein by reference.

<PAGE>

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

                      ISSUER PURCHASES OF EQUITY SECURITIES

<TABLE>
<CAPTION>
                                                                                 (D)
                                                          (C)               MAXIMUM NUMBER
                                                       TOTAL NUMBER        (OR APPROXIMATE
                                                      OF SHARES (OR        DOLLAR VALUE) OF
                      (A)               (B)        UNITS) PURCHASED AS    SHARES (OR UNITS)
                 TOTAL NUMBER      AVERAGE PRICE     PART OF PUBLICLY      THAT MAY YET BE
                 OF SHARES (OR    PAID PER SHARE     ANNOUNCED PLANS     PURCHASED UNDER THE
PERIOD         UNITS) PURCHASED      (OR UNIT)         OR PROGRAMS        PLANS OR PROGRAMS
------------   ----------------   --------------   -------------------   -------------------
<S>            <C>                <C>              <C>                   <C>
Month #l
10/1/2007 to         4,095            $10.87              4,095               $1,256,170
10/31/2007
Month #2
11/1/2007 to           764            $10.65                764               $1,248,030
11/30/2007
Month #3
12/1/2007 to        30,837            $10.01             30,837               $  939,452
12/31/2007
                    ------            ------             ------               ----------
Total               35,696            $10.12             35,696               $  361,225
                    ======            ======             ======               ==========
</TABLE>

UNITED BANCORP PURCHASED THESE SHARES UNDER A STOCK PURCHASE PROGRAM PUBLICLY
ANNOUNCED BY A PRESS RELEASE ISSUED ON NOVEMBER 21, 2006, UNDER WHICH ITS BOARD
OF DIRECTORS AUTHORIZED MANAGEMENT TO CAUSE THE COMPANY TO PURCHASE UP TO $2
MILLION OF ITS COMMON SHARES OVER A TWO-YEAR PERIOD. SUCH AUTHORIZATION WILL
EXPIRE ON NOVEMBER 21, 2008.

ITEM 6 SELECTED CONSOLIDATED FINANCIAL DATA

          Refer to inside front cover, "Decade of Progress" of the 2007 Annual
          Report To Shareholders, which is incorporated herein by reference.

ITEM 7 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

          Refer to Pages 12-26, "Management's Discussion and Analysis" of the
          2007 Annual Report To Shareholders.

          CRITICAL ACCOUNTING POLICY

          The consolidated financial statements are prepared in accordance with
          accounting principles generally accepted in the United States of
          America and follow general practices within the financial services
          industry. The application of these principles requires management to
          make certain estimates, assumptions and judgements that affect the
          amounts reported in the financial statements and footnotes. These
          estimates, assumptions and judgements are based on information
          available as of the date of the financial statements, and as this
          information changes, the financial statements could reflect different
          estimates, assumptions, and judgements.

          The procedures for assessing the adequacy of the allowance for loan
          losses reflect our evaluations of credit risk after careful
          consideration of all information available to management. In
          developing this assessment, management must rely on estimates and
          exercise judgement regarding matters where the ultimate outcome is
          unknown such as economic factors, development affecting companies in
          specific industries and issues with respect to single borrowers.
          Depending on changes in circumstances, future assessments of credit
          risk may yield materially different results, which may require an
          increase or a decrease in the allowance for loan losses.

<PAGE>

          The allowance is regularly reviewed by management to determine whether
          the amount is considered adequate to absorb probable losses. This
          evaluation includes specific loss estimates on certain individually
          reviewed loans, statistical losses, estimates for loan pools that are
          based on historical loss experience, and general loss estimates that
          are based on the size, quality and concentration characteristics of
          the various loan portfolios, adverse situations that may affect a
          borrower's ability to repay, and current economic and industry
          conditions. Also considered as part of that judgement is a review of
          the bank's trends in delinquencies and loan losses, and economic
          factors.

          The allowance for loan losses is maintained at a level believed
          adequate by management to absorb probable losses inherent in the loan
          portfolio. Management's evaluation of the adequacy of the allowance is
          an estimate based on management's current judgement about the credit
          quality of the loan portfolio. While the Company strives to reflect
          all known risk factors in its evaluation, judgement errors may occur.

The following table sets forth the Company's contractual obligations at December
31, 2007:

<TABLE>
<CAPTION>
                                            PAYMENT DUE BY PERIOD
                                                 (IN "000")
                              ------------------------------------------------
                                         LESS THAN    1-3     3-5    MORE THAN
CONTRACTUAL OBLIGATIONS         TOTAL      1 YEAR    YEARS   YEARS    5 YEARS
---------------------------   --------   ---------   -----   -----   ---------
<S>                           <C>        <C>         <C>     <C>     <C>
Long term debt obligations    $ 58,926    $34,594     $295    $448    $23,589
Operating lease obligations         98         30       68                 --
Loan and standby letters
   of credit commitments       45,300,     45,300       --      --         --
                              --------    -------     ----    ----    -------
Total                         $104,324    $79,924     $363    $448    $23,589
                              ========    =======     ====    ====    =======
</TABLE>

ITEM 7A QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

          Refer to Page 19-21 "Asset/Liability Management and Sensitivity to
          Market Risks" of the 2007 Annual Report to Shareholders, which is
          incorporated herein by reference.

ITEM 8 FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

          Refer to the 2007 Annual Report To Shareholders, which is incorporated
          herein by reference.

ITEM 9 CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS

          Not applicable.

ITEM 9A CONTROLS AND PROCEDURES

          The Company, under the supervision, and with the participation, of its
          management, including the Company's Chief Executive Officer and Chief
          Financial Officer, evaluated the effectiveness of the design and
          operation of the Company's disclosure controls and procedures as of
          December 31, 2007, pursuant to the requirements of Exchange Act Rule
          13a-15. Based upon that evaluation, the Chief Executive Officer and
          Chief Financial Officer concluded that the Company's disclosure
          controls and procedures were effective as of December 31, 2007, in
          timely alerting them to material information relating to the Company
          (including its consolidated subsidiaries) required to be included in
          the Company's periodic SEC filings.

          Management is responsible for establishing and maintaining adequate
          internal control over financial reporting for the Company. Under the
          supervision and with the participation of management, including our
          principal executive and principal financial officers, we conducted an
          evaluation of the effectiveness of our internal control over financial
          reporting based on the framework in Internal Control - Integrated
          Framework issued by the Committee of Sponsoring Organizations of the
          Treadway Commission, as required by paragraph (c) of Section
          240.13a-15 of this chapter. Based on the evaluation under Internal
          Control - Integrated Framework, management concluded that the
          Company's internal control over financial reporting was effective as
          of December 31, 2007. This annual report does not include an
          attestation report of the Company's registered public accounting firm
          regarding internal

<PAGE>

          control over financial reporting. Management's report was not subject
          to attestation by the Company's registered public accounting firm
          pursuant to temporary rules of the Securities and Exchange Commission
          that permit the Company to provide only management's report in this
          annual report.

          There was no change in the Company's internal control over financial
          reporting that occurred during the Company's fiscal quarter ended
          December 31, 2007 that has materially affected, or is reasonably
          likely to materially affect, the Company's internal control over
          financial reporting.

ITEM 9B OTHER INFORMATION

          None.

PART III

ITEM 10 DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

          Information concerning executive officers of the Company is set forth
          in Part I, "Supplemental Item - Executive Officers of Registrant."
          Other information responding to this Item 10 is included in the
          Registrant's Proxy Statement for the 2008 Annual Meeting of
          Shareholders and is incorporated by reference under the captions
          "Proposal 1 - Election of Directors" and "Section 16(a) Beneficial
          Ownership Reporting Compliance". Information concerning the
          designation of the Audit Committee and the Audit Committee Financial
          Expert is included in the Registrant's Proxy Statement for the 2008
          Annual Meeting of Shareholders under the caption "Committees of the
          Board - Audit Committee", and is incorporated herein by reference.

          The Company's Board of Directors has adopted a Code of Ethics that
          applies to its Principal Executive, Principal Financial, and Principal
          Accounting Officers. A copy of the Company's Code of Ethics is posted
          and can be viewed on the Company's internet web site at
          http://www.unitedbancorp.com. In the event the Company amends or
          waives any provision of its Code of Ethics which applies to its
          Principal Executive, Principal Financial, or Principal Accounting
          Officers, and which relates to any element of the code of ethics
          definition set forth in Item 406(b) of Regulation S-K, the Company
          shall post a description of the nature of such amendment or waiver on
          its internet web site. With respect to a waiver of any relevant
          provision of the code of ethics, the Company shall also post the name
          of the person to whom the waiver was granted and the date of the
          waiver grant.

ITEM 11 EXECUTIVE COMPENSATION

          The information required by this item is incorporated by reference
          from the captions titled "Executive Compensation and Other
          Information" and "Compensation Committee Interlocks and Insider
          Participation in Compensation Decisions" of the Registrant's Proxy
          Statement for 2008 Annual Meeting of Shareholders.

<PAGE>

ITEM 12 SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
RELATED STOCK HOLDER MATTERS

          The information contained in the Registrant's Proxy Statement for the
          2008 Annual Meeting of Shareholders under the caption "Ownership of
          Voting Shares" is incorporated herein by reference. The following
          table is a disclosure of securities authorized for issuance under
          equity compensation plans:

<TABLE>
<CAPTION>
                                                                   Equity Compensation Plan Information
                                         ---------------------------------------------------------------------------------------
                                                                                                         Number of securities
                                                                                                       remaining available for
                                             Number of securities                                       future issuance under
                                               to be issued upon         Weighted-average exercise       equity compensation
                                            exercise of outstanding     outstanding options, price   plans (excluding securities
                                         options, warrants and rights     of warrants and rights       reflected in column (a))
                                         ----------------------------   --------------------------   ---------------------------
<S>                                      <C>                            <C>                          <C>
Equity compensation plans approved by
security holders                                    55,529                        $10.34                          0
Equity compensation plans not approved
by security holders
                                                    ------                        ------                        ---
   Total                                            55,529                        $10.34                          0
                                                    ======                        ======                        ===
</TABLE>

ITEM 13 CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

          The information required by this item is incorporated herein by
          reference to the sections in the Registrant's Proxy Statement for the
          2008 Annual Meeting of Shareholders captioned "Compensation Committee
          Interlocks and Insider Participation in Compensation Decisions,"
          "Certain Transactions" and "Proposal 1-Election of Directors."

ITEM 14 PRINCIPAL ACCOUNTANT FEES AND SERVICES

          The information required by this item is incorporated by reference
          from the section under the caption "Principal Accounting Firm Fees" of
          the Registrant's Proxy Statement for the 2008 Annual Meeting of
          Shareholders.

PART IV

ITEM 15 EXHIBITS AND FINANCIAL STATEMENT/SCHEDULES

          FINANCIAL STATEMENTS

          (a)  The following Consolidated Financial Statements and related Notes
               to Consolidated Financial Statements, together with the reports
               of Independent Registered Public Accounting Firms, appear on
               pages 27 through 74 of the United Bancorp, Inc. 2007 Annual
               Report and are incorporated herein by reference.

                    Consolidated Balance Sheets
                    December 31, 2007 and 2006

                    Consolidated Statements of Income
                    Years Ended December 31, 2007, 2006 and 2005

                    Consolidated Statements of Stockholders' Equity
                    Years Ended December 31, 2007, 2006 and 2005

                    Consolidated Statements of Cash Flows
                    Years Ended December 31, 2007, 2006 and 2005

                    Notes to Consolidated Financial Statements
                    December 31, 2007, 2006 and 2005

                    Reports of Independent Registered Public Accounting Firms

<PAGE>

                                    EXHIBITS

<TABLE>
<CAPTION>
Exhibit
 Number   Exhibit Description
-------   -------------------
<S>       <C>
  3.1     Amended Articles of Incorporation (1)

  3.2     Amended Code of Regulations (2)

  10.1    James W. Everson Change in Control Agreement (3)

  10.2    Randall M. Greenwood Change in Control agreement (3)

  10.3    Scott A. Everson Change in Control Agreement (3)

  10.4    Norman F. Assenza Change in Control Agreement (3)

  10.5    James A. Lodes Change in Control Agreement (3)

  10.6    Michael A. Lloyd Change in Control Agreement (3)

  10.7    United Bancorp, Inc. Stock Option Plan (4)

  10.8    United Bancorp, Inc. and Subsidiaries Director Supplemental Life
          Insurance Plan, covering Messrs. Hoopingarner, McGehee, Riesbeck and
          Thomas. (5)

  10.9    United Bancorp, Inc. and Subsidiaries Senior Executive Supplemental
          Life Insurance Plan, covering James W. Everson, Scott A. Everson,
          Randall M. Greenwood, Norman F. Assenza, Michael A. Lloyd and James A.
          Lodes. (5)

  10.10   United Bancorp, Inc. and United Bancorp, Inc. Affiliate Banks
          Directors Deferred Compensation Plan. (5)

  10.11   Amended and Restated Trust Agreement among United Bancorp, Inc. as
          Depository, Wilmington Trust Company, as Property Trustee, Wilmington
          Trust Company, as Delaware Trustee, and Administrative Trustees, dated
          as of November 17, 2005. (6)

  10.12   Junior Subordinated Indenture between United Bancorp, Inc. and
          Wilmington Trust Company, as Trustee, dated as of November 17, 2005.
          (6)

  10.13   Guaranty Agreement between United Bancorp, Inc., as Guarantor, and
          Wilmington Trust Company, as Guarantee Trustee, dated as of November
          17, 2005. (6)

  13      2007 Annual Report

  21      Subsidiaries of the Registrant (5)

  23.1    Consent of BKD, LLP

  23.2    Consent of Grant Thornton LLP

  31.1    Rule 13a-14(a) Certification - CEO

  31.2    Rule 13a-14(a) Certification - CFO

  32.1    Section 1350 Certification - CEO

  32.2    Section 1350 Certification - CFO
</TABLE>

(1)  Incorporated by reference to Appendix B to the registrant's Definitive
     Proxy Statement filed with the Securities and Exchange Commission on March
     14, 2001.

(2)  Incorporated by reference to Appendix C to the registrant's Definitive
     Proxy Statement filed with the Securities and Exchange Commission on March
     14, 2001.

(3)  Incorporated by reference to the registrant's 10-K filed with the
     Securities and Exchange Commission on March 27, 2003.

(4)  Incorporated by reference to Exhibit A to the registrant's Definitive Proxy
     Statement filed with the Securities and Exchange Commission on March 11,
     1996.

(5)  Incorporated by reference to the registrant's 10-K filed with the
     Securities and Exchange Commission on March 29, 2004.

(6)  Incorporated by reference to the registrant's 10-K filed with the
     Securities and Exchanges Commission on March 30, 2006.

<PAGE>

                               UNITED BANCORP INC.
                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

(Registrant) United Bancorp, Inc.


By: /s/ James W. Everson                March 28, 2008
    ---------------------------------
    James W. Everson, Chairman,
    President & CEO

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the registrant and
in the capacities and on the dates indicated.


By: /s/ James W. Everson                March 28, 2008
    ---------------------------------
    James W. Everson, Chairman,
    President & CEO


By: /s/ Randall M. Greenwood            March 28, 2008
    ---------------------------------
    Randall M. Greenwood, Senior Vice
    President & CFO


By: /s/ Michael J. Arciello             March 28, 2008
    ---------------------------------
    Michael J. Arciello, Director


By: /s/ Terry A. McGhee                 March 28, 2008
    ---------------------------------
    Terry A. McGhee, Director


By: /s/ John M. Hoopingarner            March 28, 2008
    ---------------------------------
    John M. Hoopingarner, Director


By: /s/ Richard L. Riesbeck             March 28, 2008
    ---------------------------------
    Richard L. Riesbeck, Director


By: /s/ Samual J. Jones                 March 28, 2008
    ---------------------------------
    Samual J. Jones , Director


By: /s/ Matthew C. Thomas               March 28, 2008
    ---------------------------
    Matthew C. Thomas, Director

<PAGE>



                                 EXHIBIT INDEX

<TABLE>
<CAPTION>
Exhibit
 Number   Exhibit Description
-------   -------------------
<S>       <C>
3.1       Amended Articles of Incorporation (1)

3.2       Amended Code of Regulations (2)

10.1      James W. Everson Change in Control Agreement (3)

10.2      Randall M. Greenwood Change in Control agreement (3)

10.3      Scott A. Everson Change in Control Agreement (3)

10.4      Norman F. Assenza Change in Control Agreement (3)

10.5      James A. Lodes Change in Control Agreement (3)

10.6      Michael A. Lloyd Change in Control Agreement (3)

10.7      United Bancorp, Inc. Stock Option Plan (4)

10.8      United Bancorp, Inc. and Subsidiaries Director Supplemental Life
          Insurance Plan, covering Messrs. Hoopingarner, McGehee, Riesbeck and
          Thomas. (5)

10.9      United Bancorp, Inc. and Subsidiaries Senior Executive Supplemental
          Life Insurance Plan, covering James W. Everson, Scott A. Everson,
          Randall M. Greenwood, Norman F. Assenza, Michael A. Lloyd and James A.
          Lodes. (5)

10.10     United Bancorp, Inc. and United Bancorp, Inc. Affiliate Banks
          Directors Deferred Compensation Plan. (5)

10.11     Amended and Restated Trust Agreement among United Bancorp, Inc. as
          Depository, Wilmington Trust Company, as Property Trustee, Wilmington
          Trust Company, as Delaware Trustee, and Administrative Trustees, dated
          as of November 17, 2005. (6)

10.12     Junior Subordinated Indenture between United Bancorp, Inc. and
          Wilmington Trust Company, as Trustee, dated as of November 17, 2005.
          (6)

10.13     Guaranty Agreement between United Bancorp, Inc., as Guarantor, and
          Wilmington Trust Company, as Guarantee Trustee, dated as of November
          17, 2005. (6)

13        2007 Annual Report

21        Subsidiaries of the Registrant (5)

23.1      Consent of BKD, LLP

23.2      Consent of Grant Thornton LLP

31.1      Rule 13a-14(a) Certification - CEO

31.2      Rule 13a-14(a) Certification - CFO

32.1      Section 1350 Certification - CEO

32.2      Section 1350 Certification - CFO
</TABLE>

(1)  Incorporated by reference to Appendix B to the registrant's Definitive
     Proxy Statement filed with the Securities and Exchange Commission on March
     14, 2001.

(2)  Incorporated by reference to Appendix C to the registrant's Definitive
     Proxy Statement filed with the Securities and Exchange Commission on March
     14, 2001.

(3)  Incorporated by reference to the registrant's 10-K filed with the
     Securities and Exchange Commission on March 27, 2003.

(4)  Incorporated by reference to Exhibit A to the registrant's Definitive Proxy
     Statement filed with the Securities and Exchange Commission on March 11,
     1996.

(5)  Incorporated by reference to the registrant's 10-K filed with the
     Securities and Exchange Commission on March 29, 2004.

(6)  Incorporated by reference to the registrant's 10-K filed with the
     Securities and Exchanges Commission on March 30, 2006.