• UBCP reported a net income of $2,392,000 for Q3 2023, an increase of 3.9% over the previous year.

• For the first nine months of 2023, UBCP reported a net income of $6,560,000, a 3.3% increase over the previous year.

• Net interest income for Q3 2023 increased by 3.1% over the previous year.

• UBCP's total assets as of September 30, 2023, stood at $814.3 million.

• Warning! GuruFocus has detected 1 Warning Sign with UBCP.

United Bancorp Inc (NASDAQ:UBCP) released its earnings report for the third quarter and the first nine months of 2023 on November 1, 2023. The company reported a net income of $2,392,000 for Q3 2023, marking a 3.9% increase over the previous year. For the first nine months of 2023, UBCP reported a net income of $6,560,000, a 3.3% increase over the previous year.

Financial Performance

UBCP's net interest income for Q3 2023 increased by $197,000, or 3.1%, over the previous year. For the first nine months of 2023, the company's net interest income increased by $1,487,000 or 8.3%. The company's net interest margin improved by 3 basis points to 3.63% over the previous year.

We are pleased to report on the earnings performance of United Bancorp, Inc. (NASDAQ:UBCP) for the third quarter ended September 30, 2023 and the first nine months of 2023. For the quarter, our Company achieved solid net income and diluted earnings per share results of $2,392,000 and $0.42, which were respective increases of $89,000, or 3.9%, and $0.02, or 5.0%, over the results achieved during the third quarter of last year," remarked Randall M. Greenwood, Senior Vice President, CFO and Treasurer.

Challenges and Opportunities

Despite the challenges of a rapidly increasing interest rate environment, UBCP was able to capitalize on the tightening of monetary policy by the Federal Open Market Committee of the Federal Reserve. This led to an improvement in the level of net interest income generated on both a quarterly and year-to-date basis as of September 30, 2023.

Although it has been somewhat challenging to produce improving results in such a fast-paced, increasing interest rate environment, our Company was properly positioned to take advantage of this dramatic increase in interest rates over the course of the past eighteen months and, accordingly, we experienced an improvement in the level of net interest income that we generated on both a quarterly and year-to-date basis as of September 30, 2023," Greenwood added.

Future Prospects

Despite the current economic and industry-related challenges, UBCP remains optimistic about its future growth and earnings prospects. The company has a vision of growing UBCP to an asset threshold of $1.0 billion or greater in the near term in a prudent and profitable fashion.