Executive Summary

EPS of $0.34 rose 9.7% year over year and 3.0% sequentially; net income was $1.93M, up 6.1% YoY and 0.9% QoQ, driven by 9.6% YoY growth in net interest income and disciplined interest expense control .
Net interest margin continued to expand (federal tax equivalent NIM 3.66% vs. 3.50% YoY), supported by asset growth to $866.8M (+5.0% YoY), securities redeployment at ~6.1% TEY, and loan repricing tailwinds .
Credit quality remained solid: nonperforming assets/total assets of 0.66% and ACL/loans of 0.87%, despite higher provision; net charge-offs were a small negative on a YTD basis (annualized -0.04% of average loans) .
Dividend remains a key shareholder-cash return lever: regular quarterly dividend increased to $0.1875 in 3Q (up 5.6% YoY); YTD total cash dividends of $0.73 (+8.2% YoY), implying a ~6.6% yield at 3Q-end pricing—supportive near-term stock catalyst alongside branch opening and digital/AI initiatives .

What Went Well and What Went Wrong

What Went Well
- Net interest income acceleration: Q3 NII grew 9.6% YoY (+$591K) as NIM expanded and asset yields improved, aided by securities reinvestment at ~6.1% TEY and loan repricing .
- Balance sheet momentum: Assets reached $866.8M (+5.0% YoY); deposits rose to $645.2M (+4.8% YoY) with a rising mix of noninterest-bearing demand (+8.5% YoY to $156.3M) supporting funding costs .
- Management tone confident on growth: “We strongly believe that these current undertakings… will provide a pathway to future growth and lead to increasingly higher performance over the course of the next twelve to twenty-four months” (CFO) .
What Went Wrong
- Provision higher YoY: Provision for credit losses in Q3 rose to $186K (from $70K), and YTD provision of $488K (+$314K YoY) reduced diluted EPS by ~($0.045) YTD .
- Nonaccruals higher vs. last year: Nonaccrual loans increased to $2.44M (from $0.38M YoY), though coverage is robust (ACL/nonaccrual ~177%) and NPA ratios remain low by historical standards .
- Mixed loan trajectory sequentially: Gross loans were $496.5M at Q3 (down from $500.7M at Q2) as the company manages through macro uncertainty and funding mix normalization .

Financial Results

Quarterly performance (oldest → newest):

Metric	Q1 2025	Q2 2025	Q3 2025
Diluted EPS ($)	$0.32	$0.33	$0.34
Net Income ($)	$1.872M	$1.915M	$1.931M
Total Interest Income ($)	$9.842M	$10.411M	$10.635M
Total Interest Expense ($)	$3.596M	$3.815M	$3.906M
Net Interest Income ($)	$6.246M	$6.596M	$6.729M
Total Noninterest Income ($)	$1.281M	$1.389M	$1.348M
Total Noninterest Expense ($)	$5.586M	$5.842M	$5.981M
Provision for Credit Losses ($)	$96K	$206K	$186K
ROA (%)	0.91%	0.91%	0.91%
ROE (%)	12.31%	12.70%	12.48%
Net Interest Margin (FTE, %)	3.60%	3.65%	3.66%
Cash Dividends per Share ($)	$0.3575 (incl. special)	$0.1850	$0.1875

Balance sheet and credit KPIs:

KPI	Q1 2025	Q2 2025	Q3 2025
Total Assets (End of Period, $)	$830.68M	$847.88M	$866.76M
Gross Loans ($)	$496.87M	$500.75M	$496.54M
Total Deposits ($)	$624.08M	$642.94M	$645.19M
Noninterest-Bearing Demand ($)	$138.24M	$148.48M	$156.29M
Time Deposits ($)	$176.81M (sum, Q1 cat.)	$191.79M (sum of < and >$250K)	$189.13M
Nonperforming Assets / Total Assets (%)	0.68%	0.60%	0.66%
Nonaccrual Loans ($)	$1.94M	$1.80M	$2.44M
ACL / Loans (%)	0.82%	0.83%	0.87%
Equity / Assets at Period End (%)	7.32%	7.04%	7.67%

YoY context (Q3 2025 vs. Q3 2024):

EPS up $0.03 (+9.7%); net income up $111K (+6.1%); NII up $591K (+9.6%) .
NIM expanded by 16 bps to 3.66% on a federal tax equivalent basis .

Estimates vs. Actuals (Q3 2025):

Consensus EPS: Not available*; Consensus revenue: Not available*; comparison to estimates not possible for this micro-cap bank.
Actual EPS $0.34 and net income $1.93M as reported in the company’s press release .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Regular Cash Dividend per Share	Q3 2025	$0.1850 (Q2 2025 actual payout)	$0.1875 (declared/paid for Q3)	Raised
NII/NIM Trajectory	2H 2025	“Continue net interest income expansion and margin accretion during the current year”	“Optimistic we can continue increasing trend in total interest income and net interest margin for the remainder of this year”	Maintained (qualitative)
Loan Growth Focus	Q4 2025	“Keen focus on growing gross loans as we progress into this year”	“Sharp focus on continuing to grow loans outstanding as we enter the fourth quarter”	Maintained (qualitative)
Wheeling Banking Center Opening	Late Q3/4Q Timing	“Scheduled to open within ~90 days”	“Scheduled to open within the next few weeks”	Timing narrowed/near-term
Unified Center/AI Launch	By Q1 2026	“Renovation done by year-end; launch new solutions in Q1 next year”	“Renovation completed by year-end; ready to launch in Q1 of next year”	Maintained

Note: UBCP does not issue formal quantitative revenue/EPS guidance; commentary is qualitative.

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was found after targeted searches across the company’s document set; UBCP may not host a regular earnings call. Themes below reflect management commentary in quarterly press releases.

Topic	Previous Mentions (Q1 2025, Q2 2025)	Current Period (Q3 2025)	Trend
NIM/Net Interest Income	Q1: NIM +14 bps YoY to 3.60%; controlled deposit costs . Q2: NIM 3.65% with NII +6.4% YoY in quarter .	NIM 3.66%; NII +9.6% YoY in quarter	Improving
Macro/Tariffs/Policy	Q1: New trade policy uncertainty, inflation; FOMC easing helped margin . Q2: Continued uncertainty; tariffs being enacted .	Tariff negotiations and gov’t shutdown increased uncertainty; still delivering growth .	Persistent headwind, managed
Loan Growth	Q1: Gross loans +3.5% YoY; focus on growth . Q2: First time >$500M; focus to keep growing .	Loans $496.5M; expect renewed growth into Q4 via liquidity and repricing .	Mixed sequentially; outlook constructive
Deposit Mix	Q1: Time deposits rising; managing pricing . Q2: Demand/savings down, time up; still controlling costs .	Noninterest-bearing demand +8.5% YoY; expect expense moderation .	Mix improving for cost
Credit Quality	Q1: Nonaccrual increase largely one commercial relationship; coverage strong . Q2: NPAs 0.60%; ACL/nonaccrual 231% .	NPAs 0.66%; ACL/loans 0.87%; net charge-offs minimal YTD .	Stable/adequate coverage
New Markets/Branch	Q1: Wheeling Banking Center late Q3 target . Q2: Opening in ~90 days .	Opening “within the next few weeks” .	Imminent
Technology & AI	Q1: Digital transformation; implementing AI . Q2: Continued AI implementation .	AI solution to enhance service and sales routing .	Advancing
Unified Center	Q1: Launch early next year . Q2: Renovation done by YE; launch in Q1 .	On track for YE completion and Q1 launch .	On track

Management Commentary

“For the quarter, our Company produced net income and diluted earnings per share of $1,931,000 and $0.34… respective increases of $111,000, or 6.1%, and $0.03, or 9.7%, over… last year… on a linked-quarter basis… increased by $17,000, or 0.9%, and $0.01 or 3.0%.” — Randall M. Greenwood, CFO .
“Net interest income… increased by $1,116,000, or 6.0% [YTD], and our net interest margin improved by… 16 bps to 3.66%… On a year-over-year basis for the most recently ended quarter… net interest income… increased… by $591,000, or 9.6%.” — CFO .
“Total assets… increased… by $41.3 million, or 5.0%, to… $866.8 million… gross loans [to] $496.5 million… we invested approximately $21.0 million… into municipal securities with an average taxable equivalent yield (TEY) of 6.1%.” — CFO .
“Nonaccrual loans and loans past due 30+ days were $3.1 million (0.63% of gross loans)… nonperforming assets to total assets was 0.66%… allowance for credit losses to total loans of 0.87%.” — CFO .
“Wheeling, West Virginia… banking center… scheduled to open within the next few weeks… we firmly believe that within five years, this new banking center will be a top performer for UBCP!” — Scott A. Everson, CEO .

Q&A Highlights

No Q3 2025 earnings call transcript was available in the company’s document set; therefore, no Q&A themes or clarifications can be reported. Management’s qualitative outlook is drawn from the Q3 press release .

Estimates Context

Wall Street consensus for Q3 2025 EPS and revenue was not available for UBCP; as a result, beat/miss versus consensus cannot be determined*.
Actual performance: Diluted EPS $0.34; net income $1.93M; NII $6.73M; NIM 3.66% FTE .

Values retrieved from S&P Global.*

Key Takeaways for Investors

Earnings cadence improved for the third straight quarter (EPS: $0.32 → $0.33 → $0.34), supported by NIM expansion and stronger NII; this trend can continue if loan repricing and securities yields persist .
Funding mix is turning more favorable (noninterest-bearing demand +8.5% YoY), which should help tame interest expense and support margin accretion into Q4 .
Credit metrics remain benign with strong coverage (ACL/loans 0.87%; ACL/nonaccrual ~177%), offering resilience against macro uncertainty .
Near-term catalysts: imminent opening of the Wheeling Banking Center, ongoing digital transformation/AI deployment, and a steadily rising dividend run-rate .
Watch items: sequential dip in loans versus Q2, elevated—though low—nonaccruals vs. last year, and macro sensitivity to tariffs/government funding dynamics .
Dividend yield remains a compelling component of total return (YTD cash dividends $0.73; forwardized annual payout strong), potentially underpinning valuation in volatile markets .
With assets nearing $900M and targeted growth initiatives, crossing $1B in assets could unlock further operating leverage and earnings scalability over the next 12–24 months .

Additional Relevant Press Releases (Q3 timeframe)

UBCP increased the third quarter cash dividend to $0.1875 per share (5.6% YoY increase), payable Sept 19, 2025; forward yield implied at 5.2% on 2Q-end market price .

UNITED BANCORP INC /OH/ (UBCP)·Q3 2025 Earnings Summary