Executive Summary

Q2 2025 diluted EPS of $0.33 and net income of $1.914M; total revenue (net interest income + noninterest income) of $7.99M, up sequentially and year over year; net interest margin expanded to 3.65% (+11 bps YoY) .
Loan growth crossed a milestone with gross loans at $500.7M (+3.4% YoY), supporting net interest income expansion; deposits rose to $642.9M (+3.2% YoY), though mix shifted toward higher-cost time deposits .
Management increased the regular quarterly dividend to $0.1875 for Q3, implying a forward yield of 5.2% at a $14.50 share price; year-to-date cash dividends total $0.73 including a Q1 special dividend .
No Q2 earnings call transcript was available; management’s prepared commentary emphasized growth investments (Wheeling banking center, Unified Mortgage, Treasury Management, digital and AI) and stable credit quality despite a single commercial nonaccrual driving higher nonperformers .
Street consensus EPS/revenue for Q2 2025 was not available via S&P Global; thus, no beat/miss determination vs estimates can be made for this quarter.*

What Went Well and What Went Wrong

What Went Well

Net interest income rose 6.4% YoY in Q2 and NIM improved to 3.65%; management expects continued NII expansion driven by asset growth and loan repricing in a higher-rate environment (“we are optimistic that we can continue this current increasing and expansionary trend”) .
Gross loans surpassed $500M for the first time in company history, with liquidity at the Fed positioned to fund additional higher-yielding loan growth (“for the first time in our Company’s history, our gross loans exceeded a threshold of a half-billion dollars!”) .
Fee income momentum from Unified Mortgage and Treasury Management and a broadened digital/AI roadmap to enhance customer experience and cross-sell opportunities (“we are also in the process of implementing artificial intelligence (AI)… guide them to the best financial solutions”) .

What Went Wrong

Interest expense increased (+3.8% YoY in Q2) and deposit mix shifted toward higher-cost term funding; demand and savings balances declined year over year, pressuring funding costs (“increase in our higher-cost term funding”) .
Nonaccrual loans rose YoY (to $1.80M from $0.36M), largely due to one commercial relationship; total past due and nonaccrual loans to gross loans climbed to 0.45% from 0.24% YoY, though improved sequentially .
AOCI drag increased, with accumulated other comprehensive loss deepening to $(14.50)M, and tangible equity down YoY; equity-to-assets declined to 7.04% vs 7.37% YoY, reflecting market rate impacts on securities .

Financial Results

Summary (income statement and returns)

Metric	Q2 2024	Q1 2025	Q2 2025
Total Revenue ($USD Millions)	$7.39 (NII $6.20 + Noninterest $1.18)	$7.53 (NII $6.25 + Noninterest $1.28)	$7.99 (NII $6.60 + Noninterest $1.39)
Net Income ($USD Millions)	$1.740	$1.872	$1.915
Diluted EPS ($)	$0.30	$0.32	$0.33
Net Interest Margin (%)	3.54	3.60	3.65
ROA (%)	0.91	0.91	0.91
ROE (%)	12.34	12.31	12.70

Revenue Composition

Component ($USD)	Q2 2024	Q1 2025	Q2 2025
Net Interest Income	$6,201,682	$6,246,185	$6,595,879
Total Noninterest Income	$1,184,090	$1,281,410	$1,389,462
Total Revenue	$7,385,772	$7,527,595	$7,985,341

Balance Sheet and KPIs

KPI	Q2 2024	Q1 2025	Q2 2025
Total Assets ($USD)	$821.8M	$830.7M	$847.9M
Gross Loans ($USD)	$484.5M	$496.9M	$500.7M
Total Deposits ($USD)	$623.2M	$624.1M	$642.9M
Nonaccrual Loans ($USD)	$0.36M	$1.94M	$1.80M
Allowance for Credit Losses to Total Loans (%)	0.82	0.82	0.83
ACL Coverage of Nonaccrual Loans (%)	1,101.85	211.33	231.21
Interest Expense to Average Assets (%)	1.74	1.75	1.79
Book Value per Share ($)	$10.18	$10.19	$10.02
Tangible Book Value per Share ($)	$10.03	$10.06	$9.89
Market Price End of Period ($)	$12.55	$13.42	$14.50
Dividend (Regular) per Share ($)	$0.1750	$0.1825 (plus $0.1750 special)	$0.1850

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Regular Quarterly Dividend per Share ($)	Q3 2025	$0.1850 (Q2 2025 regular)	$0.1875 (declared Aug 20; payable Sep 19)	Raised
Forward Dividend Yield (%)	Q3 2025	~5.1% implied on Q2 end price	5.2% based on $14.50 at Q2 end	Raised (slightly)
Wheeling Banking Center	2H 2025	Opening “late Q3 2025”	“Scheduled to open within the next 90 days” (from July 31, 2025)	Timing affirmed/nearer
Strategic Initiatives (Unified Mortgage, Treasury Mgmt, Digital & AI)	FY 2025-2026	Scaling, investment phase underway	Continued scaling; AI rollout to enhance service and sales routing	Maintained focus

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was available; themes reflect management’s press releases.

Topic	Previous Mentions (Q1 2025)	Current Period (Q2 2025)	Trend
AI/Technology & Digital Transformation	Investing in tech; AI implementation planned to improve customer service	Ongoing digital transformation and AI implementation to answer inquiries, route to sales, and cross-sell	Expanding execution
Macro Tariffs/Policy Uncertainty	Elevated uncertainty from newly implemented trade policy; cautious outlook	Continued uncertainty; optimism on NII/NIM expansion despite tariffs and inflation	Stable caution, improving NIM
Loan Growth & Regional Expansion (Wheeling, WV)	Wheeling banking center targeted for late Q3 opening	Opening within 90 days; early loan growth attributed to the office	Accelerating
Deposit Mix/Funding Costs	Selective pricing; deposits down slightly; interest expense to avg assets at 1.75%	Deposit growth +3.2% YoY; higher-cost time deposits increased; interest expense to avg assets 1.79%	Funding cost pressure persists
Credit Quality	Nonaccruals up YoY due to one relationship; strong coverage	Nonaccruals still elevated YoY; sequential improvement; ACL coverage 231%	Stabilizing sequentially
Fee Income Strategy	Unified Mortgage and Treasury Management scaling	Continued scaling; higher fee income YoY	Positive momentum
Shareholder Returns	Regular + special dividends; ~6.7% yield (Q1 context)	Regular dividend raised; forward yield 5.2% at $14.50	Shareholder-friendly policy sustained

Management Commentary

“For the quarter, our Company produced net income and diluted earnings per share of $1,914,000 and $0.33… respective increases of $175,000 and $0.03… over the second quarter of the previous year.”
“Our net interest income increased by $394,000, or 6.4%… and our net interest margin improved by eleven (11) basis points to 3.65% from 3.54%.”
“For the first time in our Company’s history, our gross loans exceeded a threshold of a half-billion dollars… our anticipated growth in gross loans… should contribute to higher levels of net interest income.”
“We have made a tremendous investment in the area of technology… We are also in the process of implementing artificial intelligence (AI)… guide [customers] to the best financial solutions.”
“Our Company’s total nonaccrual loans and loans past due 30 plus days were $2.2 million… down on a linked-quarter basis by $598,000… well-below historic levels and compare very favorably to peer.”
“We… paid both our regular cash dividend and a special dividend… total cash dividends… $0.5425… near-industry leading total dividend yield of 6.3%… based on… $14.50.”

Q&A Highlights

No Q2 2025 earnings call transcript or Q&A was available in company/SEC sources; the recap relies on the 8‑K press release and subsequent dividend announcement .

Estimates Context

Street consensus (S&P Global) for Q2 2025 EPS and revenue was not available; therefore, no beat/miss can be determined this quarter.*

Metric	Q2 2025 Consensus	Reported	Surprise
EPS ($)	N/A*	$0.33	N/A*
Revenue ($USD Millions)	N/A*	$7.99	N/A*

*Values retrieved from S&P Global.

Key Takeaways for Investors

Earnings quality improved: EPS up 10% YoY to $0.33 and NIM up 11 bps YoY to 3.65%, signaling margin tailwinds from loan repricing and asset growth .
Revenue mix healthy: Total revenue rose to $7.99M with gains in both NII and fee income; Unified Mortgage and Treasury Management are contributing .
Funding cost watch: Deposit growth was positive, but mix skewed to time deposits; interest expense to average assets climbed to 1.79%, requiring disciplined pricing .
Credit normalized but contained: Nonaccruals remain elevated YoY from a single commercial relationship, yet improved sequentially; ACL coverage at 231% and NCOs modest (0.07% of average loans annualized) .
Strategic catalysts: Wheeling banking center opening imminently, plus AI-enabled customer engagement and cross-sell at the Unified Center, support medium-term operating leverage .
Shareholder returns: Dividend raised to $0.1875 for Q3 (forward yield 5.2%); continued signaling of balanced capital return while funding growth .
Near-term trading lens: Momentum in NIM/NII and dividend increase are supportive; monitor deposit mix/funding costs and credit metrics for confirmation of margin trajectory .

Appendix: Additional Data Points (Q2 2025 vs YoY/Seq)

Net interest income: $6.596M (+6.36% YoY; +$0.349M seq) .
Noninterest income: $1.389M (+17.34% YoY; +$0.108M seq) .
Total noninterest expense: $5.842M (+3.07% YoY; +$0.256M seq), reflecting growth investments .
Deposits: $642.9M (+3.17% YoY; +$18.9M seq) .
AOCI: $(14.50)M (deeper by $3.28M YoY), pressuring book/tangible book .

Sources: Q2 2025 8‑K 2.02 and press release ; Q1 2025 8‑K 2.02 ; Q4/FY 2024 8‑K 2.02 (trend context) ; Q3 2025 dividend 8‑K 8.01 .

UNITED BANCORP INC /OH/ (UBCP)·Q2 2025 Earnings Summary