United Bancorp, Inc. (UBCP) reported its financial results for the three and nine months ended September 30, 2024, highlighting a mixed performance amid challenging economic conditions. For the third quarter of 2024, net income was $1.82 million, a decrease of $573,000 from $2.39 million in the same period of 2023. This decline in profitability was reflected in earnings per share, which fell to $0.31 from $0.42 year-over-year. For the nine-month period, net income totaled $5.55 million, down from $6.56 million in 2023, with diluted earnings per share decreasing from $1.15 to $0.95.

The company's total interest income for the first nine months of 2024 increased by $2.3 million, or 8.5%, compared to the previous year, driven by a rise in average loans and investment securities. However, total interest expense surged by $3.2 million, or 40.7%, leading to a net interest income decline of $878,000, or 4.5%. The net interest margin also compressed, decreasing from 3.63% to 3.50%. The provision for credit losses was recorded at $304,000 for the nine months, with net loans charged off amounting to approximately $141,000.

As of September 30, 2024, total assets increased to $825.48 million from $819.45 million at the end of 2023. Total deposits decreased slightly by $5.6 million, or less than 1%, while total stockholders' equity rose to $65.46 million, up from $63.59 million. The allowance for credit losses stood at $4.00 million, representing 0.84% of total loans, compared to $3.89 million or 0.81% at the end of 2023.

Strategically, UBCP is focused on expanding its operations, with a new banking center under construction in Wheeling, West Virginia, expected to open in Q3 2025. The company has also increased its regular cash dividend to $0.675 per share for 2024, reflecting a commitment to returning value to shareholders despite the economic headwinds.

The economic landscape remains challenging, with net interest margin compression and limited loan growth attributed to elevated interest rates and sluggish economic activity. The Federal Reserve's recent rate cuts may provide some relief, but the company anticipates navigating these challenges through strategic objectives and capital investments over the next 12 to 24 months.