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UNITED BANCORP INC /OH/ (UBCP)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 EPS of $0.31 and net income of $1,849,812; flat EPS vs Q3 ($0.31) and down vs Q4 2023 ($0.42) as funding costs and higher provision continued to pressure results . Net interest margin stabilized sequentially at 3.51% vs 3.50% in Q3 (3.54% in Q2) .
  • Loans grew $16.0M QoQ in Q4 (+13.4% annualized), reversing prior stagnation and aiding net interest income sequentially (+$206K QoQ), while deposit mix shifts (lower DDA/savings, higher time) and the $75M FHLB advance kept interest expense elevated . Uninsured deposits remain low at 17.6%; no brokered deposits, supporting funding stability .
  • Credit quality remained solid: total nonaccrual + 30+ dpd at 0.21% of loans; ACL/loans 0.82%; NCOs 0.04% annualized ex overdrafts; NPAs/assets 0.50% .
  • Management is scaling fee income (Unified Mortgage, Treasury Management), preparing a new Wheeling, WV branch for 3Q25, and sees NIM relief as policy eases; total 2024 dividends were $0.855/share (regular + special) .
  • Street estimates (S&P Global) were unavailable at time of writing; no beat/miss analysis possible. Consensus unavailable via S&P Global for Q4 2024 and FY 2024.

What Went Well and What Went Wrong

  • What Went Well

    • Sequential improvement: Net interest income rose $206K QoQ and NIM ticked up to 3.51% (from 3.50%), with EPS flat QoQ at $0.31 .
    • Loan momentum returned: Gross loans increased $16.0M QoQ in Q4 (+13.4% annualized), supporting interest income .
    • Credit strength: Nonaccrual + 30+ dpd at 0.21% of loans; ACL/loans 0.82%; coverage of nonaccruals 1,243% at year-end; NCOs 0.04% annualized (ex overdrafts) .
    • Quote: “We are optimistic that [NIM/net interest income] trend will continue… especially if [FOMC] continues to become less restrictive or… remains stable” — CFO Randall Greenwood .

  • What Went Wrong

    • YoY pressure: EPS down to $0.31 from $0.42 in Q4 2023 on higher funding costs and provision; NII down 2.4% YoY; noninterest expense up 10.6% YoY .
    • Funding mix and borrowings: Shift from demand/savings to time deposits and the full-year impact of a $75M FHLB advance and a subordinated debenture that repriced to floating increased interest expense 33.7% YoY despite deposit declines .
    • Provision normalization: Provision rose to $124,499 in Q4 (vs a credit in Q4 2023), reducing quarterly EPS by ~$0.04 and FY EPS by ~$0.11 per management .

Financial Results

Quarterly progression (oldest → newest):

MetricQ2 2024Q3 2024Q4 2024
Total interest income ($)9,878,202 9,943,797 10,078,466
Total interest expense ($)3,676,520 3,804,903 3,733,489
Net interest income ($)6,201,682 6,138,894 6,344,977
Provision for credit losses ($)104,499 69,665 124,499
Noninterest income ($)1,184,090 1,215,215 1,194,245
Noninterest expense ($)5,668,133 5,529,138 5,631,264
Net income ($)1,739,967 1,819,659 1,849,812
Diluted EPS ($)0.30 0.31 0.31

YoY comparison for the quarter:

MetricQ4 2023Q4 2024
Net interest income ($)6,499,400 6,344,977
Provision for credit losses ($)(153,750) 124,499
Noninterest expense ($)5,091,039 5,631,264
Net income ($)2,389,060 1,849,812
Diluted EPS ($)0.42 0.31

Margins & efficiency:

MetricQ2 2024Q3 2024Q4 2024
Net interest margin (FTE) (%)3.54 3.50 3.51
Interest expense / avg assets (%)1.74 1.77 1.78
Cash dividend per share (quarter) ($)0.1750 0.1775 0.1800

Balance sheet & credit KPIs:

MetricQ2 2024Q3 2024Q4 2024
Gross loans ($)484,514,415 475,004,333 490,971,361
Total deposits ($)623,188,540 615,818,830 613,493,640
Total past due + nonaccrual / loans (%)0.24 0.21 0.21
Nonperforming assets / assets (%)0.46 0.46 0.50
ACL / total loans (%)0.82 0.84 0.82
Net loan charge-offs to avg loans (%)0.07 -0.05 0.04
Uninsured deposits (% of total)17.2 18.4 17.6

Notes:

  • Management indicates no brokered deposits .
  • Q4 loan growth was +$16.0M QoQ; net interest income +$206K QoQ; NIM +1 bp QoQ .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Formal financial guidance (revenue, margins, opex, tax, segment)2025None providedNone provided; qualitative outlook onlyMaintained (no formal guidance) -
Branch expansion timingWheeling, WVMid-2025 (prior commentary) 3Q 2025 opening targeted Updated timing
Dividend policyOngoingRegular + special historically2024 total payout $0.855; no prospective guidanceInformational (no forward guidance)

Earnings Call Themes & Trends

No Q4 2024 earnings call transcript was found; themes below reflect management’s press releases.

TopicPrevious Mentions (Q2 & Q3 2024)Current Period (Q4 2024)Trend
Monetary policy & NIM“Higher for longer” pressured NIM; slight QoQ NIM improvement to 3.54% in Q2; 3.50% in Q3; expectation policy easing would help funding costs - NIM 3.51%; sequential NII/NIM improvement; management optimistic trend continues if policy eases or stays stable Stabilizing; cautiously improving
Funding mix & costsDemand/savings down; time deposits up; $75M FHLB advance; rising interest expense despite lower deposits Same dynamics; uninsured deposits 18.4%; no brokered deposits Uninsured deposits 17.6%; no brokered deposits; subordinated debt repriced to float raised costs
Fee income initiativesUnified Mortgage ramping; Treasury Management buildout to boost noninterest income and low-cost balances Unified Mortgage gains; strong operating leverage potential; Treasury Mgmt emphasized Unified Mortgage increased net gain on sale by $453K YoY; continued scaling; Treasury Mgmt focus reiterated
Credit qualitySolid; low NPAs; small NCOs driven by single relationship Stable: total nonaccrual + 30+ dpd 0.21% of loans; strong coverage Stable: nonaccrual + 30+ dpd 0.21% of loans; ACL to nonaccruals 1,243%; NCOs 0.04% annualized (ex OD)
Capital & TBVTangible equity +$2.3M YoY; TBVPS +$0.24 YoY Tangible equity +$13.0M YoY; TBVPS +$2.07 YoY Tangible equity +$4.2M YoY; TBVPS $11.21 (+5.2% YoY; +3.4% QoQ)
ExpansionWheeling, WV branch mid-2025 target Wheeling opening targeted 3Q 2025 Wheeling opening 3Q 2025; seen as growth lever in coveted market

Management Commentary

  • “On a linked-quarter basis, net income increased by $30,000… and diluted EPS matched the level achieved the previous quarter at $0.31… [NII] and NIM respectively increase[d] by $206,000… and one basis point from 3.50% to 3.51%” — CFO Randall Greenwood .
  • “Total average assets were $828.1 million (+3.2% YoY). Gross loans increased by $7.7 million (+1.6% YoY)… and increased by $16.0 million on a linked-quarter basis” — CFO Randall Greenwood .
  • “Total interest expense increased… by $3.7 million (+33.7% YoY)… attributed to [deposit mix shift]… $75.0 million FHLB advance… and a subordinated debenture [that] start[ed] floating” — CFO Randall Greenwood .
  • “We have successfully maintained credit-related strength… total nonaccrual + 30+ dpd were $1.0 million (0.21% of loans)… NCOs (ex overdrafts) 0.04% annualized… ACL/nonaccrual 1,243%” — CFO Randall Greenwood .
  • “We are enhancing our mortgage origination function with Unified Mortgage… and developing our Treasury Management function… [Wheeling, WV banking center] should be completed… in the third quarter of 2025” — CEO Scott Everson .
  • “Total dividend payout in 2024… $0.8550… total dividend yield of 6.6% based on $13.00 quarter-end price” — CEO Scott Everson .

Q&A Highlights

  • No earnings call transcript was available for Q4 2024; no Q&A insights could be reviewed (no call document found in the period searched) [List: 0 transcripts].

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 2024 and FY 2024 was unavailable at time of writing due to data access limits; therefore, no beat/miss analysis vs consensus is provided. We will update once S&P Global estimates are accessible.

Key Takeaways for Investors

  • NIM and NII have likely bottomed and are stabilizing; Q4 delivered sequential NIM/NII improvement with flat EPS QoQ, positioning for potential expansion as policy eases and funding costs normalize .
  • Loan growth reaccelerated in Q4 (+$16M QoQ), a constructive shift after prior stagnation; monitoring sustainability into 1H25 will be key for net interest income trajectory .
  • Funding remains sound with low uninsured deposits (17.6%) and no brokered balances, but deposit mix and wholesale/FRB-linked instruments still pressure interest expense near term .
  • Fee-income vectors (Unified Mortgage, Treasury Management) are scaling and should provide operating leverage and partial offset to NII pressures in 2025 .
  • Credit remains a bright spot: low NPAs, modest NCOs, and strong reserve coverage reduce downside risk to capital amid macro uncertainty .
  • Tangible equity and TBVPS improved QoQ and YoY, underpinning valuation support; continued TBV growth will be a focus if rates decline and OCI improves .
  • 3Q25 Wheeling, WV branch opening is a tangible growth catalyst that could lift core deposits and lending in a favorable market, aiding both funding costs and revenue mix medium-term .

Additional Notes

  • Other Q4 2024 press releases: None identified beyond the earnings 8-K/press release [List: only the 2025-02-07 8-K 2.02 for Q4].
  • Prior-period reference points:
    • Q3 2024: EPS $0.31; NIM 3.50%; uninsured deposits 18.4% .
    • Q2 2024: EPS $0.30; NIM 3.54%; uninsured deposits 17.2% .