EDGAR 10-K Filing

Company CIK: 731653
Filing Year: 2021
Filename: 731653_10-K_2021_0001104659-21-038794.json

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ITEM 1. BUSINESS
Item 1 Business
Business
United Bancorp, Inc. (Company) is a bank holding company headquartered in Martins Ferry, Ohio. The Company is an Ohio corporation which filed its initial articles of incorporation on July 8, 1983. At December 31, 2020 the Company has one wholly-owned subsidiary bank, Unified Bank, Martins Ferry, Ohio (Unified, or the Bank).
The Company serves customers in northeastern, eastern, southeastern and south central Ohio and the Northern panhandle of West Virginia and is engaged in the business of commercial and retail banking in Belmont, Harrison, Jefferson, Tuscarawas, Carroll, Athens, Hocking, and Fairfield counties and the surrounding localities. The bank also operates in Marshall County West Virginia. 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. Unified conducts its business through its main office and stand alone operations center in Martins Ferry, Ohio and nineteen branches located in the counties mentioned above. Unified operates a Loan Production Office in Wheeling, West Virginia.
Unified 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 Unified operates continue to be highly competitive. Unified 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 including Belmont, Harrison and Jefferson counties and extending into the northern panhandle of West Virginia and the Tuscarawas and Carroll County geographic areas of northeastern Ohio. Unified also encounters similar competition for loans and deposits throughout the Athens, and Fairfield County geographic areas of central and southeastern Ohio.
Pursuant to deposit market share information provided by the FDIC as of June 30, 2020, Unified competes with approximately 36 other commercial banking institutions in its primary Ohio markets. Based on this information, the Bank ranked sixth in total deposit market share. The top five institutions in Unified’s primary Ohio banking markets included: Huntington National Bank; JP Morgan Chase Bank; PNC Bank; Wesbanco Bank; and Park National Bank.
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 Unified 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 Unified.
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”) pursuant to the Bank Holding Company Act of 1956, as amended.
Unified 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 Federal Deposit Insurance Corporation (the “FDIC”).
Regulatory Reform
Overview. Congress, the U.S. Department of the Treasury (“Treasury”), and the federal banking regulators, including the FDIC, have taken broad action since early September 2008 to address volatility in the U.S. banking system and financial markets. Beginning in late 2008, the U.S. and global financial markets experienced deterioration of the worldwide credit markets, which created significant challenges for financial institutions both in the United States and around the world. These actions included the adoption by Congress of both the Emergency Economic Stabilization Act of 2008 (“EESA”), and the American Recovery and Reinvestment Act of 2009 (“ARRA”). The most recent significant piece of legislation adopted in response to this crisis was the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”), which was signed into law on July 21, 2010, and which is discussed more thoroughly below.
Dodd-Frank Wall Street Reform and Consumer Protection Act. The Dodd-Frank Act created many new restrictions and an expanded framework of regulatory oversight for financial institutions, including insured depository institutions. Currently, federal regulators are still in the process of drafting the implementing regulations for many portions of the Dodd-Frank Act. Federal regulators continue to implement many provisions of the Dodd-Frank Act. The Dodd-Frank Act created an independent regulatory body, the Bureau of Consumer Financial Protection (“Bureau”), with authority and responsibility to set rules and regulations for most consumer protection laws applicable to all banks - both large and small. Oversight of Federal consumer financial protection functions have been transferred to the Bureau. The Bureau has responsibility for mortgage reform and enforcement, as well as broad new powers over consumer financial activities which could impact what consumer financial services would be available and how they are provided. The following consumer protection laws are the designated laws that fall under the Bureau’s rulemaking authority: the Alternative Mortgage Transactions Parity Act of 1928, the Consumer Leasing Act of 1976, the Electronic Fund Transfer Act, the Equal Credit Opportunity Act, the Fair Credit Billing Act, the Fair Credit Reporting Act subject to certain exclusions, the Fair Debt Collection Practices Act, the Home Owners Protection Act, certain privacy provisions of the Gramm-Leach-Bliley Act, the Home Mortgage Disclosure Act (HMDA), the Home Ownership and Equity Protection Act of 1994, the Real Estate Settlement Procedures Act (RESPA), the S.A.F.E. Mortgage Licensing Act of 2008 (SAFE Act), and the Truth in Lending Act. Review and revision of current financial regulations in conjunction with added new financial service regulations will heighten the regulatory compliance burden and increase litigation risk for the banking industry.
Many aspects of the Dodd-Frank Act are still subject to rulemaking and will take effect over several years, making it difficult to anticipate the overall financial impact on the Company, its subsidiaries, their respective customers or the financial services industry more generally. The Company is closely monitoring all relevant sections of the Dodd-Frank Act to ensure continued compliance with these regulatory requirements.
The Holding Company Regulation
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 on quarterly basis information pursuant to the Act. The Federal Reserve may conduct examinations or inspections of the Company and Unified.
The Company is required to obtain prior approval from the Federal Reserve 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, engage in, or acquire shares of companies engaged in activities which are deemed by the Federal Reserve 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 has determined to be closely related to banking. No Federal Reserve approval is required for a financial holding 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. As with bank holding companies, prior Federal Reserve approval is required before a financial holding company may acquire the beneficial ownership or control of more than five percent of the voting shares, or substantially all of the assets, of a bank holding company, bank or savings association. If any subsidiary bank of a financial holding company ceases to be "well capitalized" or "well managed" under applicable regulatory standards, the Federal Reserve 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 a financial holding 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.
Dividends and Capital Reductions. The Board of Governors of the Federal Reserve has issued Supervisory Guidance and Regulations on the Payment of Dividends, Stock Redemptions, and Stock Repurchases by Bank Holding Companies (the “Policy Statement”). In the Policy Statement, the Federal Reserve stated that it is important for a banking organization’s board of directors to ensure that the dividend level is prudent relative to the organization’s financial position and is not based on overly optimistic earnings scenarios. As a general matter, the Policy Statement provides that the board of directors of a bank holding company should inform the Federal Reserve and should eliminate, defer, or significantly reduce its dividends if:
(1) net income available to shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividends;
(2) the prospective rate of earnings retention is not consistent with the company’s capital needs and overall current and prospective financial condition; or
(3) the company will not meet, or is in danger of not meeting, its minimum regulatory capital adequacy ratios.
Failure to do so could result in a supervisory finding that the organization is operating in an unsafe and unsound manner. Moreover, the Policy Statement requires a bank holding company to inform the Federal Reserve reasonably in advance of declaring or paying a dividend that exceeds earnings for the period (e.g., quarter) for which the dividend is being paid or that could result in a material adverse change to the organization’s capital structure. Declaring or paying a dividend in either circumstance could raise supervisory concerns. As described above, Unified exceeded its minimum capital requirements under applicable guidelines as of December 31, 2020.
Control Acquisitions. The Federal Change in Bank Control Act prohibits a person or group of persons from acquiring "control" of the Company unless the Federal Reserve has been notified and has not objected to the transaction. The acquisition of 10% or more of a class of voting stock of a bank holding company with a class of securities registered under Section 12 of the Exchange Act, such as the Company, is rebuttably presumed to constitute the acquisition of control of the bank holding company. In addition, a company is required to obtain the approval of the Federal Reserve under the Federal Bank Holding Company Act before acquiring 25% (5% in the case of an acquirer that is a bank holding company) or more of any class of outstanding voting stock of a bank holding company, or otherwise obtaining control or a "controlling influence" over that bank holding company.
Liability for Banking Subsidiaries. Under the current Federal Reserve policy, the Company is expected to act as a source of financial and managerial strength to its subsidiary bank and to maintain resources adequate to support the Bank. This support may be required at times when the Company may not have the resources to provide it. In the event of the Company's bankruptcy, any commitment to a U.S. federal bank regulatory agency to maintain the capital of the Bank would be assumed by the bankruptcy trustee and entitled to priority of payment.
Regulation of the Bank
General. Unified is an Ohio-chartered bank that is not a member of the Federal Reserve System. Unified is therefore regulated by the ODFI as well as the FDIC. The regulatory agencies have the authority to regularly examine Unified, which is subject to all applicable rules and regulations promulgated by its supervisory agencies. In addition, the deposits of Unified are insured by the FDIC to the fullest extent permitted by law.
Deposit Insurance. As an FDIC-insured institution, Unified 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, 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 Unified.
The Dodd-Frank Act revised the statutory authorities governing the FDIC’s management of the DIF. Key requirements from the Dodd-Frank Act resulted in the FDIC’s adoption of new rules in February 2011 regarding Assessments, Dividends, Assessment Base, and Large Bank Pricing. The new rules implemented the following changes: (1) redefined the definition of an institution’s deposit insurance assessment base from one based on domestic deposits to one based on assets now defined as “average consolidated total assets minus average tangible equity”; (2) changed the assessment rate adjustments to better account for risk based on an institution’s funding sources; (3) revised the deposit insurance assessment rate schedule in light of the new assessment base and assessment rate adjustments; (4) implemented Dodd-Frank Act dividend provisions; (5) revised the large insured depository institution assessment system to better differentiate for risk and to take into account losses the FDIC may incur from large institution failures; and (6) provided technical and other changes to the FDIC’s assessment rules. Though deposit insurance assessments maintain a risk-based approach, the FDIC imposed a more extensive risk-based assessment system on large insured depository institutions with at least $10 billion in total assets since they are more complex in nature and could pose greater risk.
Regulatory Capital Requirements	Unified is required to maintain minimum levels of capital in accordance with FDIC capital adequacy guidelines. If capital falls below minimum guideline levels, a bank, among other things, may be denied approval to acquire or establish additional branches or organize or acquire other non-bank businesses. The required capital levels and the Bank’s's capital position at December 31, 2020 and 2019 are summarized in the table included in Note 11 to the consolidated financial statements.
Beginning in 2015, bank holding companies and banks were required to measure capital adequacy using Basel III accounting. Basel III is a comprehensive set of reform measures, developed by the Basel Committee on Banking Supervision, to strengthen the regulation, supervision and risk management of the banking sector. Implementation of the rules will be overseen by the Federal Reserve, the FDIC and the OCC. Reporting under the new rules began with the March 2015 quarterly regulatory filings.
FDICIA
The Federal Deposit Insurance Corporation Improvement Act of 1991 ("FDICIA"), and the regulations promulgated under FDICIA, among other things, established five capital categories for insured depository institutions-well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized-and requires U.S. federal bank regulatory agencies to implement systems for "prompt corrective action" for insured depository institutions that do not meet minimum capital requirements based on these categories. Unless a bank is well capitalized, it is subject to restrictions on its ability to offer brokered deposits and on certain other aspects of its operations. An undercapitalized bank must develop a capital restoration plan and its parent bank holding company must guarantee the bank's compliance with the plan up to the lesser of 5% of the bank’s assets at the time it became undercapitalized and the amount needed to comply with the plan. As of December 31, 2020 the Bank was well capitalized pursuant to these prompt corrective action guidelines.
Dividends. Ohio law prohibits Unified, 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 is also affected by the requirement to maintain adequate capital pursuant to applicable capital adequacy guidelines and regulations.
Safety and Soundness Standards. The Federal banking agencies have adopted guidelines that establish operational and managerial standards to promote the safety and soundness of federally insured depository institutions. The guidelines set forth standards for internal controls, information systems, internal audit systems, loan documentation, credit underwriting, interest rate exposure, asset growth, compensation, fees and benefits, asset quality and earnings.
In general, the safety and soundness guidelines prescribe the goals to be achieved in each area, and each institution is responsible for establishing its own procedures to achieve those goals. If an institution fails to comply with any of the standards set forth in the guidelines, the institution’s primary federal regulator may require the institution to submit a plan for achieving and maintaining compliance. If an institution fails to submit an acceptable compliance plan, or fails in any material respect to implement a compliance plan that has been accepted by its primary federal regulator, the regulator is required to issue an order directing the institution to cure the deficiency. Until the deficiency cited in the regulator’s order is cured, the regulator may restrict the institution’s rate of growth, require the institution to increase its capital, restrict the rates the institution pays on deposits or require the institution to take any action the regulator deems appropriate under the circumstances. Noncompliance with the standards established by the safety and soundness guidelines may also constitute grounds for other enforcement action by the federal banking regulators, including cease and desist orders and civil money penalty assessments.
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 on the aggregate amount of deposits that may be held by the surviving bank and all of its insured depository institution affiliates. Effective with the enactment of The Dodd-Frank Act, the FDI Act and the National Bank Act have been amended to remove the expressly required “opt-in” concept applicable to de novo interstate branching and now permits national and insured state banks to engage in de novo in interstate branching if, under the laws of the state where the new branch is to be established, a state bank chartered in that state would be permitted to establish a branch.
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. Unified’s business and earnings are affected significantly by the fiscal and monetary policies of the federal government and its agencies. Unified is particularly affected by the policies of the Federal Reserve, 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 have a material effect on the earnings of Unified.
Environmental Laws. Banks that hold mortgages on property as secured lenders are exempt from liability under Federal environmental protection laws if certain criteria are met. The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) contains a secured creditor exemption that eliminates owner or operator liability for lenders who take an ownership interest in a property primarily to protect their interest in the facility as security on a loan, provided that the bank does not participate in the management of the facility. Generally, participation in management applies if a bank exercises decision-making control over a property’s environmental compliance, or exercises control at a level similar to a manager of the facility or property.
Additional and Pending Regulation. Unified 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 Unified of its own securities and other aspects of banking operations. In addition, the activities and operations of Unified 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 Unified. At this time, the Company is unable to predict whether any proposed legislation will be 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. Unified has 112 full time employees, with 22 of these serving in a management capacity, and 20 part time employees.
Executive Officers Positions held with Company;
Name
Age
Business Experience
Scott Everson
President and Chief Executive Officer
Matthew F. Branstetter
Senior Vice President - Chief Operating Officer
Randall M. Greenwood
Senior Vice President, Chief Financial Officer & Treasurer
Lisa A. Basinger
Corporate Secretary
Each individual has held the position noted during the past five years.
Each of these Executive Officers is appointed annually by the Company’s board of directors and is serving at-will in their current positions.
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.
Statistical Disclosures by Bank Holding Companies
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” and “Rate/Volume Analysis on pages 19 and 20 of our 2020 Annual Report filed herewith as Exhibit 13, which is incorporated by reference.
Average Balances, Net Interest Income and Yields Earned and Rates Paid
The following table provides average balance sheet information and reflects the taxable equivalent average yield on interest-earning assets and the average cost of interest-bearing liabilities for the years ended December 31, 2019 and 2018. The yields and costs are calculated by dividing income or expense by the average balance of interest-earning assets or interest-bearing liabilities.
The average balance of available-for-sale securities is computed using the carrying value of securities while the yield for available for sale securities has been computed using the average amortized cost. Average balances are derived from average month-end balances, which include nonaccruing loans in the loan portfolio, net of the allowance for loan losses. Interest income has been adjusted to tax-equivalent basis.
(Dollars In thousands)
Interest
Interest
Average Income/ Yield/
Average Income/ Yield/
Balance Expense Rate
Balance Expense Rate
Assets
Interest-earning assets
Loans $ 420,487 21,803 5.19 %
$ 382,164 18,885 4.94 %
Taxable securities - AFS 48,911 2.04
45,250 1.69
Tax-exempt securities - AFS 106,528 4,687 4.40
35,424 1,493 4.21
Federal funds sold 17,285 1.93
12,958 1.59
FHLB stock and other 4,049 5.21
4,179 5.91
Total interest-earning assets 597,260 28,030 4.69
479,975 21,589 4.50
Noninterest-earning assets
Cash and due from banks 5,405
2,000
Premises and equipment (net) 12,232
11,838
Other nonearning assets 22,787
20,274
Less: allowance for loan losses (2,127 )
(2,085 )
Total noninterest-earning
assets 38,297
32,027
Total assets 635,557
512,002
Liabilities & stockholders’ equity
Interest-bearing liabilities
Demand deposits $ 209,810 2,381 1.13 %
$ 183,754 1,433 0.78 %
Savings deposits 109,806 0.17
88,900 0.06
Time deposits 112,211 2,258 2.01
77,558 1,104 1.42
FHLB advances 3.70
14,393 2.08
Federal funds purchased 8,933 2.07
5.56
Trust preferred debentures 16,276 5.99
4,124 3.47
Repurchase agreements 9,699 1.40
12,874 1.06
Total interest-bearing
liabilities 466,762 6,124 1.31
381,756 3,178 0.83
Noninterest-bearing
liabilities
Demand deposits 109,349
80,243
Other liabilities 5,054
3,102
Total noninterest-bearing liabilities 114,403
83,345
Total liabilities -
-
Total stockholders’ equity 54,392
46,904
Total liabilities &
stockholders’ equity $ 635,557
$ 512,002
Net interest income
$ 21,906
$ 18,411
Net interest spread
3.38 %
3.67 %
Net yield on interest-earning assets
3.67 %
3.84 %
• For purposes of this schedule, nonaccrual loans are included in loans.
• Fees collected on loans are included in interest on loans.
Rate/Volume Analysis
The table below describes the extent to which changes in interest rates and changes in volume of interest-earning assets and interest-bearing liabilities have affected interest income and expense during 2019. For purposes of this table, changes in interest due to volume and rate were determined using the following methods:
• Volume variance results when the change in volume is multiplied by the previous year’s rate.
• Rate variance results when the change in rate is multiplied by the previous year’s volume.
• Rate/volume variance results when the change in volume is multiplied by the change in rate.
NOTE: The rate/volume variance was allocated to volume variance and rate variance in proportion to the relationship of the absolute dollar amount of the change in each. Non accrual loans are ignored for purposes of the calculations due to the nominal amount of the loans.
2019 Compared to 2018
Increase/(Decrease)
(In thousands)
Change Change
Total Due To Due To
Change Volume Rate
Interest and dividend income
Loans $ 2,918 1,956
Taxable securities available for sale
Tax-exempt securities available for sale 3,194 3,126
Federal funds sold
FHLB stock and other (38 ) (8 ) (30 )
Total interest and dividend income 6,441 5,215 1,226
Interest expense
Demand deposits
Savings deposits
Time deposits 1,154
FHLB advances (298 ) (429 )
Federal funds purchased (9 )
Trust Preferred debentures -
Repurchase agreements --- (38 )
Total interest expense 2,946 2,389
Net interest income $ 3,495 4,658 (1,163 )
II Investment Portfolio
A The following table sets forth the carrying amount of securities at December 31, 2020, 2019 and 2018.
December 31,
(In thousands)
Available for sale (at fair value)
U. S. government agencies
$ 10,053 $ 39,528 $ 44,750
State and municipal obligations
143,509 144,725 79,241
Subordinated notes
4,505 4,532 -
Total securities available for sale
$ 158,067 $ 188,785 $ 123,991
B Contractual maturities of securities at year-end 2020 were as follows:
Amortized
Cost Estimated
Fair Value Average Tax
Equivalent Yield
(dollars in
thousands)
Available for Sale
US government agencies
Under 1 Year --- --- ---
1 - 5 Years 10,000 10,053 2.32 %
5-10 Years - - -
Over 10 Years - - -
State and municipal obligations
Under 1 Year - - -
1 - 5 Years - - -
5-10 Years - - -
Over 10 Years 129,006 143,509 4.01 %
Subordinated Debt
Under 1 Year - - -
1 - 5 Years 4,500 4,505 4.78 %
5-10 Years - - -
Over 10 Years - - -
Total securities available for sale $ 143,506 $ 158,067 3.92 %
C Excluding holdings of U.S. Government agency obligations, there were no investments in securities of any one issuer exceeding 10% of the Company’s consolidated shareholders’ equity at December 31, 2020.
III Loan Portfolio
A Types of Loans
The amounts of gross loans outstanding at December 31, 2020, 2019, 2018, 2017, and 2016 are shown in the following table according to types of loans:
December 31,
2017
(In thousands)
Commercial loans $ 103,277 $ 99,995 $ 93,690 $ 81,327 $ 74,514
Commercial real estate loans 246,167 254,651 223,462 198,936 191,686
Residential real estate loans 85,789 77,205 78,767 75,853 76,154
Installment loans 8,258 9,697 13,765 12,473 14,367
Total loans $ 443,491 $ 441,548 $ 409,684 $ 368,589 $ 356,721
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, 2019 maturing within the various time frames indicated:
One Year
or
Less One
Through
Five Years After
Five Years Total
(In thousands)
Commercial loans $ 6,092 $ 49,858 $ 47,327 $ 103,277
Commercial real estate loans 5,753 21,980 218,434 246,167
Total $ 11,845 $ 71,838 $ 265,761 $ 349,444
The following is a schedule of fixed-rate and variable-rate commercial and commercial real estate loans at December 31, 2020 due to mature after one year:
Fixed
Rate Variable Rate Total >
One
Year
(In thousands)
Commercial loans $ 48,236 $ 48,949 $ 97,185
Commercial real estate loans 22,491 217,923 240,414
Total $ 70,727 $ 266,872 $ 337,599
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, impaired loans and newly classified troubled debt restructurings at December 31, 2020, 2019, 2018, 2017 and 2016:
December 31,
2017
(In thousands)
Nonaccrual basis $ 626 $ 1,452 $ 1,245 $ 1,395 $ 1,361
Accruing loans 90 days or greater past due - -
Total impaired loans 1,036 1,008 4,652
Impaired loan with related allowance for unconfirmed losses -
Impaired loan without related allowance for unconfirmed losses 1,036 3,959
Troubled debt restructured loans -
The additional amount of interest income that would have been recorded on nonaccrual loans, had they been current, totaled approximately $13,000 for the year ended December 31, 2020. Interest income that was recorded for the year on nonaccrual loans, totaled $68,000 for the year ended December 31, 2020.
The Company’s policy is to generally not allow loans greater than 90 days past due to accrue interest unless the loan is both well secured and in the process of collection. Interest income is not reported when full loan repayment is doubtful, typically when the loan is impaired. Payments received on such loans are reported as principal reductions.
On December 27, 2020, the President signed into law the 2021 Consolidated Appropriations Act. The $900 billion relief package includes legislation that extends certain relief provisions from the March 2020 Coronavirus Aid, Relief, and Economic Security Act (CARES Act) that were set to expire at the end of this year. CARES Act §4013 permitted financial institutions to suspend TDR assessment and reporting requirements under generally accepted accounting principles for loan modifications. Set to expire on December 31, 2020, this new legislation extends this relief to the earlier of 60 days after the national emergency termination date or January 1, 2022.
2. Potential Problem Loans
The Company had no potential problem loans as of December 31, 2020 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.
IV Summary of Loan Loss Experience
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 ASC 310-10-35-16, “Accounting by Creditors for Impairment of a Loan.” ASC 310-10-35-16 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 ASC 310-10-35-16 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 ASC 310-10-35-16, 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 ASC 310-10-35-16 at that time.
For additional explanation of factors which influence management’s judgment in determining amounts charged to expense, refer to pages 13-15 of the “Management’s Discussion and Analysis” and Notes to Consolidated Financial Statements set forth in our 2020 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, 2020, 2019, 2018, 2017 and 2016:
2017
(In thousands)
Loans
Gross loans outstanding $ 443,491 $ 441,548 $ 409,684 $ 368,589 $ 356,721
Average loans outstanding $ 446,256 $ 420,487 $ 382,164 $ 356,224 $ 343,243
Allowance for Loan Losses
Balance at beginning of year $ 2,231 $ 2,043 $ 2,122 $ 2,341 $ 2,437
Loan charge-offs:
Commercial -
Commercial real estate -
Residential real estate 78
Installment 230
Total loan charge-offs 438
Loan recoveries
Commercial 52
Commercial real estate - -
Residential real estate 20
Installment 45
Total loan recoveries 119
Net loan charge-offs 319
Provision for loan losses 3,337 301
Balance at end of year $ 5,113 $ 2,231 $ 2,043 $ 2,122 $ 2,341
Ratio of net charge-offs to average loans outstanding for the year 0.10 % 0.17 % 0.10 % 0.09 % 0.12 %
B Allocation of the Allowance for Loan Losses
The following table allocates the allowance for loan losses at December 31, 2020, 2019, 2018, 2017 and 2016. 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:
2017
Allowance
Amount % of
Loans
to Total
Loans Allowance
Amount % of Loans
to Total
Loans Allowance
Amount % of
Loans
to Total
Loans Allowance
Amount % of
Loans
to Total
Loans
Allowance
Amount
% of
Loans
to Total
Loans
(In thousands)
Loan type
Commercial $ 1,397 23.29 % $ 568 22.65 % $ 389 22.87 % $ 537 22.06 % $ 495 20.89 %
Commercial real estate 1,821 55.51 % 57.67 % 54.54 % 53.97 % 53.73 %
Residential real estate 1,471 19.34 % 17.49 % 19.23 % 20.58 % 21.35 %
Installment 1.86 % 2.19 % 3.36 % 3.39 % 4.03 %
General - N/A - N/A - N/A N/A N/A
Total $ 5,113 100.00 % $ 2,231 100.00 % $ 2,043 100.00 % $ 2,122 100.00 % $ 2,431 100.00 %
V Deposits
A Schedule of Average Deposit Amounts and Rates
Refer to Section I of this “Statistical Disclosures by Bank Holding Companies” section and to Management’s Discussion and Analysis “Average Balances, Net Interest Income and Yields Earned and Rates Paid” on page 19 of our 2020 Annual Report filed herewith as Exhibit 13, which is incorporated by reference.
B Maturity analysis of time deposits greater than $250,000.
At December 31, 2020, the time to remaining maturity for time deposits in excess of $250,000 was:
(In thousands)
Three months or less $ 664
Over three through six months 3,598
Over six through twelve months 2,946
Over twelve months
Total $ 7,770
VI Return on Equity and Assets
Our dividend payout ratio and equity to assets ratio were as follows:
December 31,
Dividend Payout Ratio 41.01 % 45.80 % 63.41 %
Equity to Assets 9.85 % 8.74 % 8.53 %
Return on Average Assets 1.15 % 1.07 % 0.83 %
Return on Average Equity 11.45 % 12.52 % 8.03 %
VII Short-Term Borrowings
Information concerning securities sold under agreements to repurchase is summarized as follows:
(Dollars in thousands)
Balance at December 31, $ 12,705 $ 6,915 $ 8,068
Weighted average interest rate at December 31 0.29 % 1.37 % 1.06 %
Average daily balance during the year $ 12,524 $ 9,272 $ 12,874
Average interest rate during the year 0.29 % 1.40 % 1.13 %
Maximum month-end balance during the year $ 16,503 $ 13,441 $ 16,161
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.
No other individual component of borrowed funds with the exception of borrowings from the Federal Home Loan Bank comprised more than 30% of shareholders’ equity and accordingly is not disclosed in detail.

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ITEM 1A. RISK FACTORS
Item 1A. Risk Factors
Smaller Reporting Companies are not required to provide this disclosure.

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ITEM 1B. UNRESOLVED STAFF COMMENTS
Item 1B. Unresolved Staff Comments
None.

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ITEM 2. PROPERTIES
Item 2 Properties
The Company owns and operates its Main Office and stand alone operations center in Martins Ferry, Ohio and the following offices:
Branch Office Location
Owned or Leased
Location
Owned or Leased
Bridgeport, Ohio
Owned
Sherrodsville, Ohio
Owned
Colerain, Ohio
Owned
Glouster, Ohio
Owned
Jewett, Ohio
Owned
Amesville, Ohio
Owned
St. Clairsville, Ohio
Owned
Nelsonville, Ohio
Owned
Dover, Ohio
Owned
Lancaster, Ohio
Owned
Dellroy, Ohio
Owned
Lancaster, Ohio
Owned
New Philadelphia, Ohio
Owned
Powhatan, Ohio
Owned
Strasburg, Ohio
Owned
Moundsville, WV
Owned
Tiltonsville, Ohio
Owned
Dillonvale, Ohio
Leased
St. Clairsville, Ohio
Owned
Loan Production Office
Location
Owned or Leased
Wheeling, West Virginia
Leased
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.

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ITEM 3. LEGAL PROCEEDINGS
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.

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ITEM 4. MINE SAFETY DISCLOSURE
Item 4 Mine Safety Disclosures
Not applicable.
PART II

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ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY
Item 5 Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities
Refer to Page 9, “Shareholder Information” of the 2020 Annual Report To Shareholders filed herewith as Exhibit 13 and refer to Page 31, Note 1 of the Notes to the Consolidated Financial Statements of the Company in the 2020 Annual Report To Shareholders for common stock trading ranges, cash dividends declared and information relating to dividend restrictions, which information is incorporated herein by reference. Additional disclosure regarding dividend restrictions is also included under Part I, Item 1 of this 10-K in the section captioned “Supervision and Regulation.”
ISSUER PURCHASES OF EQUITY SECURITIES
Period (a)
Total Number of
Shares (or Units)
Purchased (b)
Average Price
Paid per Share
(or Unit) (c)
Total Number of
Shares (or Units)
Purchased as Part
of Publicly
Announced Plans
or Programs (d)
Maximum Number
(or Approximate Dollar Value) of
Shares (or Units)
that May Yet Be
Purchased Under the
Plans or Programs
Month #l 10/1/2020 to 10/31/2020 - $ - -
Month #2 11/1/2020 to 11/30/2020 5,330 (1) $ 12.32 - -
Month #3 12/1/2020 to 12/31/2020 - - - -
Total 5,330 (1) $ 12.32 - -
(1) All of these shares were purchased by the Company on the open market to fund acquisitions under the Company’s Directors and Officers Deferred Compensation Plan.
Unregistered Sales of Equity Securities and Use of Proceeds
The Company adopted the United Bancorp, Inc. Affiliate Banks Directors and Officers Deferred Compensation Plan (the “Plan”), which is an unfunded deferred compensation plan. Amounts deferred pursuant to the Plan remain unrestricted assets of the Company, and the right to participate in the Plan is limited to members of the Board of Directors and Company officers. Under the Plan, directors or other eligible participants may defer fees and up to 50% of their annual cash incentive award payable to them by the Company, which are used to acquire common shares which are credited to a participant’s respective account. Except in the event of certain emergencies, no distributions are to be made from any account as long as the participant continues to be an employee or member of the Board of Directors. Upon termination of service, the aggregate number of shares credited to the participant’s account are distributed to him or her along with any cash proceeds credited to the account which have not yet been invested in the Company’s stock. During the quarter ended December 31, 2020, the Plan purchased 5,330 shares at an average cost of $12.32, which were allocated to participant accounts. All purchases under the Plan are funded with either earned director fees or officer incentive award payments. No underwriting fees, discounts, or commissions are paid in connection with the Plan. The shares allocated to participant accounts under the Plan have not been registered under the Securities Act of 1933 in reliance upon the exemption provided by Section 4(a)(2) thereof.

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ITEM 6. SELECTED FINANCIAL DATA
Item 6 Selected Consolidated Financial Data
Not Applicable

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS
Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations
Refer to Pages 10-22, “Management’s Discussion and Analysis” of the 2020 Annual Report To Shareholders filed herewith as Exhibit 13, which section is incorporated herein by reference.
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.
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.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Item 7A Quantitative and Qualitative Disclosures About Market Risk
Smaller Reporting Companies are not required to provide this disclosure.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Item 8 Financial Statements and Supplementary Data
Refer to the Report of the Company’s Independent Registered Public Accounting Firm and the related audited financial statements and notes thereto contained in the 2020 Annual Report To Shareholders filed herewith as Exhibit 13, which items are incorporated herein by reference.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
Item 9 Changes In and Disagreements with Accountants
Not applicable.

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ITEM 9A. CONTROLS AND PROCEDURES
Item 9A Controls and Procedures
The Company, under the supervision, and with the participation, of its management and its outsourced internal audit firm Greenestock Consulting LLC, including the Company's principal executive and principal financial officers, evaluated the effectiveness of the design and operation of the Company's disclosure controls and procedures as of December 31, 2020, 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, 2020, 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 Exchange Act Rule13a-15. 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 31,2020. This annual report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s independent registered public accounting firm.
There was no change in the Company's internal control over financial reporting that occurred during the Company's fiscal quarter ended December 31, 2020 that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

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ITEM 9B. OTHER INFORMATION
Item 9B Other Information
None.
PART III

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ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Item 10 Directors and Executive Officers of the Registrant
Information concerning executive officers of the Company is set forth in Part I, “Executive Officers of Registrant.” Other information responding to this Item 10 is included in the Registrant’s Proxy Statement for the 2021 Annual Meeting of Shareholders and is incorporated by reference under the captions “Proposal 1 - Election of Directors,” “Corporate Governance and Committees of the Board” and “Delinquent Section 16(a) Reports.”
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.

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ITEM 11. EXECUTIVE COMPENSATION
Item 11 Executive Compensation
The information required by this item is incorporated by reference from the section of the Registrant’s Proxy Statement for the 2021 Annual Meeting of Shareholders captioned “Executive Compensation and Other Information”.

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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
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 2020 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:
Equity Compensation Plan Information December 31, 2020
Number of securities to be
issued upon exercise of
outstanding options, warrants
and rights Weighted-average exercise
price of outstanding options,
warrants and rights Number of securities remaining
available for future issuance
under equity compensation
plans (excluding securities
reflected in column (a))
Equity compensation plans approved by security holders 320,000 $ 11.73 362,500
Equity compensation plans not approved by security holders
Total 320,000 $ 11.73 362,500

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ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
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 2020 Annual Meeting of Shareholders captioned “Director Independence and Related Party Transactions.”

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ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
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 2020 Annual Meeting of Shareholders.
PART IV

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ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
Item 15 Exhibits and Financial Statement/Schedules
Financial Statements
The following Consolidated Financial Statements and related Notes to Consolidated Financial Statements, together with the report of the Independent Registered Public Accounting Firm, appear on pages 25 through 85 of the United Bancorp, Inc. 2020 Annual Report and are incorporated herein by reference.
Consolidated Balance Sheets
December 31, 2020 and 2019
Consolidated Statements of Income
Years Ended December 31, 2020 and 2019
Consolidated Statements of Comprehensive Income
Years Ended December 31, 2020 and 2019
Consolidated Statements of Stockholders’ Equity
Years Ended December 31, 2020 and 2019
Consolidated Statements of Cash Flows
Years Ended December 31, 2020 and 2019
Notes to Consolidated Financial Statements
December 31, 2020 and 2019
Report of Independent Registered Public Accounting Firm
Exhibits
Exhibit Number
Exhibit Description
3.1
Amended Articles of Incorporation (1)
3.2
Amended and Restated Code of Regulations (2)
4.1
Description of Registrant’s Common Stock(4)
4.2
Forms of 6.00% Fixed to Floating Rate Subordinated Note due May 15, 2029 (11)
10.1
Randall M. Greenwood Change in Control agreement (3)
10.2
Scott A. Everson Change in Control Agreement (3)
10.3
Matthew F. Branstetter Change in Control Agreement (3)
10.4
United Bancorp, Inc. and Subsidiaries Director Supplemental Life Insurance Plan, covering Messrs. Glessner, Hoopingarner, Jones, McGehee, and Riesbeck. (5)
10.5
United Bancorp, Inc. and Subsidiaries Senior Executive Supplemental Life Insurance Plan, covering, Scott A. Everson, Matthew Branstetter and Randall M. Greenwood. (3)
10.6
Amended and Restated United Bancorp, Inc. and United Bancorp, Inc. Affiliate Banks Directors and Officers Deferred Compensation Plan. (9)
10.7
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)
10.8
Junior Subordinated Indenture between United Bancorp, Inc. and Wilmington Trust Company, as Trustee, dated as of November 17, 2005. (6)
10.9
Guaranty Agreement between United Bancorp, Inc., as Guarantor, and Wilmington Trust Company, as Guarantee Trustee, dated as of November 17, 2005. (6)
10.10
United Bancorp, Inc. 2008 Stock Incentive Plan (8)
10.11
United Bancorp, Inc. 2018 Stock Incentive Plan (10)
10.12
Form of Subordinated Note Purchase Agreement, dated May 14, 2019, by and among United Bancorp, Inc. and the Purchasers (12)
2020 Annual Report
Subsidiaries of the Registrant
23.1
Consent of BKD, 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
The following materials from United Bancorp, Inc. on Form 10-K for the year ended December 31, 2020, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets; (ii) the Consolidated Statements of Income and Comprehensive Income; (iii) the Consolidated Statements of Cash Flows and (iv) Notes to Consolidated Financial Statements, tagged as blocks of text.
(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 Exhibit 3.2 to the registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on November 18, 2016
(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 4 to registrant’s 10-K filed with the Securities and Exchange Commission on March 20, 2020.
(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.
(7)
Incorporated by reference to the registrant’s 8-K filed with the Securities and Exchange Commission on September 24, 2008.
(8)
Incorporated by reference to the registrant’s 8-K filed with the Securities and Exchange Commission on April 22, 2008.
(9)
Incorporated by reference to Exhibit 10.10 to the registant’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 19, 2014
(10)
Incorporated by reference to Exhibit 10.1 to the registant’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 14, 2018
(11)
Incorporated by reference to Exhibit 4.1 to the registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on May 14, 2019.
(12)
Incorporated by reference to Exhibit 10.1 to the registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on May 14, 2019.
United Bancorp Inc.