UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~March~~June 3130, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT

For the transition period from ___________ to___________

Commission File Number: 0-16540

UNITED BANCORP, INC.

(Exact name of registrant as specified in its charter)

Ohio		34-1405357
(State or other jurisdiction of		(IRS Employer Identification No.)
incorporation or organization)

201 South Fourth Street, Martins Ferry, Ohio 43935-0010

(Address of principal executive offices)

(740) 633-0445

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, Par Value $1.00	UBCP	NASDQ Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐		Accelerated filer ☐
Non-accelerated filer ☒
Smaller Reporting Company ☒		Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)

Yes ☐ No ☒

Indicate the number of shares outstanding of the issuer’s classes of common stock as of the latest practicable date: As of ~~May~~August 18, 2025, 5,~~794~~774,011 shares of the Company’s common stock, $1.00 par value, were issued and outstanding.

Table of Contents

PART I - FINANCIAL INFORMATION
Item 1	Condensed Consolidated Balance Sheets	3

	Condensed Consolidated Statements of Income	4

	Condensed Consolidated Statements of Comprehensive (Loss~~) Income~~	5

	Condensed Consolidated Statements of Stockholders’ Equity	6

	Condensed Consolidated Statements of Cash Flows	7

	Notes to Condensed Consolidated Financial Statements	8
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3234
Item 3	Quantitative and Qualitative Disclosures About Market Risk	3841
Item 4	Controls and Procedures	3841

PART II - OTHER INFORMATION
Item 1	Legal Proceedings	3942
Item 1A	Risk Factors	3942
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	3942
Item 3	Defaults Upon Senior Securities	3942

Item 4	Mine Safety Disclosures	3942
Item 5	Other Information	3942

Item 6	Exhibits	4043

SIGNATURES		4144

Table of Contents

ITEM 1. Financial Statements

United Bancorp, Inc.

Condensed Consolidated Balance Sheets

(In thousands, except share data)


	~~March~~June 3130,		December 31,
	2025		2024
	(Unaudited)
Assets
Cash and due from banks	$	7,~~905~~867	$	8,171
Interest-bearing demand deposits		2841,~~498~~819		11,437
Cash and cash equivalents		3649,~~403~~686		19,608
Available-for-sale securities, net of allowance of allowance for credit losses of $0 at March 31, 2025 and December 31, 2024		229,843		240,631
Available-for-sale securities, net of allowance for credit losses of $0 at June 30, 2025 and December 31, 2024		227,253		240,631
Loans, net of allowance for credit losses of $4,095 and $4,026 at March 31, 2025 and December 31, 2024, respectively		492,771		486,945
Loans, net of allowance for credit losses of $4,156 and $4,026 at June 30, 2025 and December 31, 2024, respectively		496,591		486,945
Premises and equipment		2427,~~967~~008		23,599
Federal Home Loan Bank stock		4,~~026~~030		4,026
Foreclosed assets held for sale, net		3,~~328~~275		3,363
Core deposit other intangible asset		8547		122
Goodwill		682		682
Accrued interest receivable		34,~~499~~013		4,322
Deferred federal income tax		25,~~516~~511		4,011
Bank-owned life insurance		1920,~~954~~054		19,852
Other assets		129,~~607~~734		9,495
Total assets	$	~~830~~847,~~681~~884	$	816,656
Liabilities and Stockholders’ Equity
Liabilities
Deposits
Demand	$	~~323~~327,~~030~~461	$	320,690
Savings		~~124~~123,~~244~~689		125,120
Time		~~176~~191,~~807~~795		167,684
Total deposits		~~624~~642,~~081~~945		613,494
Securities sold under repurchase agreements		3735,~~565~~600		30,494
Subordinated debentures		23,~~863~~878		23,847
Advances Federal Home Loan Bank		75,000		75,000
Lease liability – finance lease		2,~~893~~913		2,873
Interest payable and other liabilities		67,~~478~~890		7,491
Total liabilities		~~769~~788,~~880~~226		753,199

Stockholders’ Equity
Preferred stock, no par value, authorized 2,000,000 shares; no shares issued		—		—
Common stock, $1 par value; authorized 10,000,000 shares; issued 6,203,141 shares at March 31, 2025, and 6,203,141 shares at December 31, 2024; outstanding - 5,794,021 and 5,793,611 shares at March 31, 2025 and December 31, 2024, respectively		6,203		6,203
Common stock, $1 par value; authorized 10,000,000 shares; issued 6,203,141 shares at June 30, 2025, and 6,203,141 shares at December 31, 2024; outstanding - 5,774,011 and 5,793,611 shares at June 30, 2025 and December 31, 2024, respectively		6,203		6,203
Additional paid-in capital		26,~~543~~712		26,373
Retained earnings		46,~~046~~856		46,307
Stock held by deferred compensation plan; 168,576 and 172,667 shares at March 31, 2025 and December 31, 2024, respectively		(2,159)		(2,078)
Stock held by deferred compensation plan; 182,267 and 172,667 shares at June 30, 2025 and December 31, 2024, respectively		(2,239)		(2,078)
Accumulated other comprehensive loss		(1214,~~535~~496)		(10,100)
Treasury stock, at cost 240,544 and 236,863 shares at March 31, 2025 and December 31, 2024, respectively		(3,297)		(3,248)
Treasury stock, at cost 246,863 and 236,863 shares at June 30, 2025 and December 31, 2024, respectively		(3,378)		(3,248)
Total stockholders’ equity		6059,~~801~~658		63,457
Total liabilities and stockholders’ equity	$	~~830~~847,~~681~~884	$	816,656

See Notes to Condensed Consolidated Financial Statements

Table of Contents

United Bancorp, Inc.

Condensed Consolidated Statements of Income

Three Months and Six Months Ended ~~March~~June 3130, 2025 and 2024

(In thousands, except per share data)

(Unaudited)


	~~2025~~Three months ended June 30,		~~2024~~		Six months ended June 30,
Interest and Dividend Income
	2025		2024		2025		2024
Loans, including fees	$	7,327	$	6,762
Interest and Dividend Income
Securities:
Loans, including fees	$	7,680	$	6,986	$	15,007	$	13,748
Taxable		~~387~~388		~~560~~513		775		1,073
Non-taxable		1,~~896~~858		1,~~714~~847		3,754		3,561
Federal funds sold		~~138~~395		~~487~~438		533		925
Dividends on Federal Home Loan Bank and other stock		94		98
Dividends on Federal Home Loan Bank stock and other stock		90		94		184		192
Total interest and dividend income		910,~~842~~411		9,~~621~~878		20,253		19,499
Interest Expense
Interest expense
Deposits		2,~~015~~188		12,~~962~~022		4,203		3,984
Borrowings		1,~~580~~628		1,~~544~~654		3,208		3,198
Total interest expense		3,~~595~~816		3,~~506~~676		7,411		7,182
Net Interest Income		6,~~247~~595		6,~~115~~202		12,842		12,317
Credit Loss Expense
Provision for credit loss expense - loans		96206		—234		302		234
Provision for credit loss expense - off balance sheet commitments		—		—
Reversal of credit loss expense - off balance sheet commitments		—		(130)		—		(130)
Provision for Credit Loss Expense		96206		—104		302		104
Net Interest Income After Provision for Credit Losses		6,151		6,115
Net interest income after credit for credit losses		6,389		6,098		12,540		12,213
Noninterest Income
Service charges on deposit accounts		~~733~~801		~~703~~717		1,534		1,420
Realized gain (loss) on sale of available-for-sale securities		143		(194)
Realized gains (losses) on sale of available-for-sale securities		—		78		144		(116)
Realized gains on sales of loans		84141		77118		225		195
Earnings on bank-owned life insurance		~~193~~187		~~197~~188		380		385
Other income		~~128~~261		83		388		166
Total noninterest income		1,~~281~~390		~~866~~1,184		2,671		2,050
Noninterest Expense
Noninterest expense
Salaries and employee benefits		2,~~837~~869		12,~~787~~675		5,706		4,462
Occupancy and equipment		630		624
Occupancy and Equipment		620		542		1,250		1,166
Professional services		~~342~~508		~~610~~457		850		1,067
Data processing and related electronic services		~~366~~409		~~383~~431		775		814
FDIC insurance		94		108
FDIC Insurance		94		157		188		307
Insurance		~~162~~159		~~150~~108		321		216
Franchise and other taxes		~~145~~127		~~148~~145		272		293
Advertising		130		~~113~~124		260		237
Stationery and office supplies		3138		2630		69		56
Amortization of intangibles		3738		38		75		75
Other expenses		~~812~~851		~~851~~963		1,663		1,814
Total noninterest expense		5,~~586~~843		45,~~838~~670		11,429		10,507
Income Before Federal Income Taxes		1,~~846~~936		21,~~143~~612		3,782		3,756
(Benefit) provision for Federal Income Taxes		(26)		150
Provision (Benefit) for Federal Income Taxes		22		(127)		(4)		24
Net Income	$	1,~~872~~914	$	1,~~993~~739	$	3,786	$	3,732
Basic Earnings Per Share	$	0.3233	$	0.3530	$	0.65	$	0.65
Diluted Earnings Per Share	$	0.3233	$	0.3530	$	0.65	$	0.65
Dividends Per Share (including special dividend of $0.175 in March 2025 and $0.15 in March 2024)	$	0.3575	$	0.3225
Dividends Per Share	$	0.1850	$	0.1750	$	0.5425	$	0.4975

See Notes to Condensed Consolidated Financial Statements

Table of Contents

United Bancorp, Inc.

Condensed Consolidated Statements of Comprehensive (Loss) ~~Income~~

Three Months and Six Months Ended ~~March~~June 3130, 2025 and 2024

(In thousands, except per share data)

(Unaudited)


	~~2025~~Three months ended		~~2024~~		Six months ended
Net Income	$	1,872	$	1,993
	June 30,				June 30,
Other comprehensive income (loss), net of tax
	2025		2024		2025		2024
Net realized (gain) loss included in net income, net of tax $ 30 and (benefits) of ($41)		(113)		153
Net income	$	1,914	$	1,739	$	3,786	$	3,732
Unrealized holding gain (loss) on available-for-sale securities during the period, net of taxes (benefits) of ($617) and ($129) for each respective period		(2,322)		(482)
Other comprehensive income (loss), net of tax
Other comprehensive loss		(2,435)		(329)
Net realized (gain) loss included in net income, net of taxes (benefits) of $0, $17, $30, ($24)		—		(61)		(114)		92
Comprehensive (Loss) income	$	(563)	$	1,664
Unrealized holding gain (loss) on available-for-sale securities during the period, net of taxes (benefits) of ($521), ($891), ($1,139) and ($1,019) for each respective period		(1,961)		(3,351)		(4,282)		(3,833)
Other comprehensive loss		(1,961)		(3,412)		(4,396)		(3,741)
Comprehensive loss	$	(47)	$	(1,673)	$	(610)	$	(9)

See Notes to Condensed Consolidated Financial Statements

Table of Contents

United Bancorp, Inc.

Consolidated Statements of Stockholders’ Equity

Three Months Ended ~~March~~June 3130, 2025 and 2024

(In thousands except per share data)

(Unaudited)


					Treasury				Accumulated
			Additional		Stock and				Other
	Common		Paid-in		Deferred		Retained		Comprehensive
	Stock		Capital		Compensation		Earnings		~~Income (~~Loss)		Total
Balance January 1, 2024	$	6,064	$	25,913	$	(4,924)	$	44,018	$	(7,478)	$	63,593
Balance April 1, 2024	$	6,188	$	25,998	$	(5,246)	$	44,073	$	(7,807)	$	63,206
Net income		—		—		—		1,~~993~~739		—		1,~~993~~739
Restricted stock issued		~~124~~—		~~(124)~~—		—		—		—		—
Other comprehensive loss		—		—		—		—		(~~329~~3,412)		(~~329~~3,412)
Cash dividends - $0.3225 per share		—		—		—		(1,938)		—		(1,938)
Cash dividends - $0.1750 per share		—		—		—		(1,041)		—		(1,041)
Repurchase of common stock		—		—		(~~656~~32)		—		—		(~~656~~32)
Shares purchased for deferred compensation plan		—		~~(334)~~84		~~334~~(84)		—		—		—
Expense related to share-based compensation plans		—		~~543~~137		—		—		—		~~543~~137
Balance, March 31, 2024	$	6,188	$	25,998	$	(5,246)	$	44,073	$	(7,807)	$	63,206
Balance, June 30, 2024	$	6,188	$	26,219	$	(5,362)	$	44,771	$	(11,219)	$	60,597
Balance January 1, 2025		6,203		26,373		(5,326)		46,307		(10,100)		63,457
Balance April 1, 2025	$	6,203	$	26,543	$	(5,456)	$	46,046	$	(12,535)	$	60,801
Net income		—		—		—		1,~~872~~914		—		1,~~872~~914
Restricted stock issued		—		—		—		—		—		—
Other comprehensive loss		—		—		—		—		(21,~~435~~961)		(21,~~435~~961)
Cash dividends - $0.3575 per share		—		—		—		(2,133)		—		(2,133)
Cash dividends - $0.1850 per share		—		—		—		(1,104)		—		(1,104)
Repurchase of common stock		—		—		(4980)		—		—		(4980)
Shares purchased for deferred compensation plan		—		81		(81)		—		—		—
Expense related to share-based compensation plans		—		8988		—		—		—		8988
Balance, March 31, 2025	$	6,203	$	26,543	$	(5,456)	$	46,046	$	(12,535)	$	60,801
Balance, June 30, 2025	$	6,203	$	26,712	$	(5,617)	$	46,856	$	(14,496)	$	59,658


					Treasury				Accumulated
			Additional		Stock and				Other
	Common		Paid-in		Deferred		Retained		Comprehensive
	Stock		Capital		Compensation		Earnings		Loss		Total
Balance January 1, 2024	$	6,064	$	25,913	$	(4,924)	$	44,018	$	(7,478)	$	63,593
Net income		—		—		—		3,732		—		3,732
Other comprehensive loss		—		—		—		—		(3,741)		(3,741)
Cash dividends - $0.4975 per share		—		—		—		(2,979)		—		(2,979)
Resticted stock issued		124		(124)		—		—		—		—
Deferred compensation plan activity		—		(250)		250		—		—		—
Repurchase of common stock		—		—		(688)		—		—		(688)
Expense related to share-based compensation plans		—		680		—		—		—		680
Balance, June 30, 2024	$	6,188	$	26,219	$	(5,362)	$	44,771	$	(11,219)	$	60,597
Balance January 1, 2025	$	6,203	$	26,373	$	(5,326)	$	46,307	$	(10,100)	$	63,457
Net income		—		—		—		3,786		—		3,786
Other comprehensive loss		—		—		—		—		(4,396)		(4,396)
Cash dividends - $0.5425 per share		—		—		—		(3,237)		—		(3,237)
Resticted stock issued		—		—		—		—		—		—
Deferred compensation plan activity		—		162		(162)		—		—		—
Repurchase of common stock		—		—		(129)		—		—		(129)
Expense related to share-based compensation plans		—		177		—		—		—		177
Balance, June 30, 2025	$	6,203	$	26,712	$	(5,617)	$	46,856	$	(14,496)	$	59,658

See Notes to Condensed Consolidated Financial Statements

Table of Contents

United Bancorp, Inc.

Condensed Consolidated Statements of Cash Flows

~~Three~~Six Months Ended ~~March~~June 3130, 2025 and 2024

(In thousands except per share data)

(Unaudited)


	Six months ended
	June 30,
	2025		2024
Operating Activities
Net income	$	13,~~872~~786	$	13,~~993~~732
Items not requiring (providing) cash
Depreciation and amortization		~~290~~576		~~261~~527
Amortization of intangible asset		3775		3875
Premium amortization on securities		~~107~~213		~~122~~225
Provision for credit loss expense		96302		—234
Gain on sale of loans		(84225)		(77195)
(Gain) loss on sale of available-for-sale securities		(~~143~~144)		~~194~~116
Expense related to share based compensation programs		89177		~~543~~680
Increase in value of bank-owned life insurance		(~~103~~202)		(~~114~~221)
Originations of loans held for sale		(27,~~378~~255)		(16,~~970~~024)
Proceeds from sale of loans held for sale		27,~~462~~480		26,~~047~~219
Amortization of debt instrument costs		1530		1530
Net change in accrued interest receivable and other assets		(~~222~~448)		~~931~~(2,390)
Net change in accrued expenses and other liabilities		~~(974)~~480		(~~368~~182)

Net cash provided by operating activities		14,~~064~~845		32,~~615~~826

Investing Activities
Purchase of available-for-sale securities		—		(34,~~905~~906)
Proceeds from calls/redemptions of available-for-sale securities		10		35
Sales of available-for-sale securities		7,724		27,431
Sale of available-for-sale securities		7,733		25,091
Maturities of available-for-sale securities		10		5,035
Net change in loans		(59,~~838~~723)		2(1,~~959~~151)
Proceeds from sales of foreclosed assets		28		—
Purchase of Federal Home Loan Bank Stock		(4)		—
Purchases of premises and equipment		(1,658)		(3,392)
Purchase of Federal Home Loan Bank Stock		—		(47)
Proceeds from sales of foreclosed assets		50		13
Purchases of premises and equipment, net		(3,975)		(4,119)

Net cash provided by (used in) investing activities		275		(10,212)
Net cash used in investing activities		(5,918)		(7,744)

Financing Activities
Net change in deposits		1029,~~587~~451		41,~~291~~730
Net change in securities sold under repurchase agreements		75,~~071~~106		113,~~024~~655
Net change in Federal Home Loan Bank advances		—		—
Finance lease principal payment		(40)		(17)
Finance lease principal payment		(20)		(17)
Repurchase of common stock		(129)		(671)
Repurchase of common stock		(49)		(656)
Cash dividends paid		(3,237)		(2,979)
Cash dividends paid		(2,133)		(1,938)

Net cash provided by financing activities		1531,~~456~~151		121,~~704~~718

Increase in Cash and Cash Equivalents		16,795		6,107
Increase (Decrease) in Cash and Cash Equivalents		30,078		(3,200)

Cash and Cash Equivalents, Beginning of Period		19,608		40,770

Cash and Cash Equivalents, End of Period	$	3649,~~403~~686	$	4637,~~877~~570

Supplemental Cash Flows Information
Federal income taxes paid	$	—	$	—
Interest paid on deposits and borrowings	$	613,~~243~~450	$	37,~~477~~186

See Notes to Condensed Consolidated Financial Statements

Table of Contents

United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended ~~March~~June 3130, 2025 and 2024

(In thousands)

Note 1: Summary of Significant Accounting Policies

These interim financial statements are prepared without audit and reflect all adjustments which, in the opinion of management, are necessary to present fairly the financial position of United Bancorp, Inc. (“Company”) at ~~March~~June 3130, 2025, and its results of operations and cash flows for the interim periods presented. All such adjustments are normal and recurring in nature. The accompanying condensed consolidated financial statements have been prepared in accordance with the instructions for Form 10-Q and, therefore, do not purport to contain all the necessary financial disclosures required by accounting principles generally accepted in the United States of America that might otherwise be necessary in the circumstances and should be read in conjunction with the Company’s consolidated financial statements and related notes for the year ended December 31, 2024 included in its Annual Report on Form 10-K. Reference is made to the accounting policies of the Company described in the Notes to the Consolidated Financial Statements contained in its Annual Report on Form 10-K. The results of operations for the three and six months ended ~~March~~June 3130, 2025, are not necessarily indicative of the results to be expected for the full year. The condensed consolidated balance sheet of the Company as of December 31, 2024 has been derived from the audited consolidated balance sheet of the Company as of that date.

Principles of Consolidation

The consolidated financial statements include the accounts of United Bancorp, Inc. (“United” or “the Company”) and its wholly-owned subsidiary, Unified Bank of Martins Ferry, Ohio (“the Bank”). All intercompany transactions and balances have been eliminated in consolidation.

Nature of Operations

The Company’s revenues, operating income and assets are almost exclusively derived from banking. Accordingly, all of the Company’s banking operations are considered by management to be aggregated in one reportable operating segment. Customers are mainly located in Athens, Belmont, Carroll, Fairfield, Harrison, Jefferson and Tuscarawas Counties in Ohio and Marshall and Ohio Counties in West Virginia and the surrounding localities in northeastern, east-central and southeastern Ohio and include a wide range of individuals, businesses and other organizations. Unified Bank conducts its business through its main office in Martins Ferry, Ohio and branches in Bridgeport, Colerain, Dellroy, Dover, Glouster, Jewett, Lancaster Downtown, Lancaster East, Nelsonville, New Philadelphia, Powhatan Point, St. Clairsville East, St. Clairsville West, Sherrodsville, Strasburg, Tiltonsville, Ohio and Moundsville West Virginia.

The Company’s primary deposit products are checking, savings and term certificate accounts and its primary lending products are residential real estate, commercial and industrial, commercial real estate and installment loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets and real estate. Commercial and industrial loans are expected to be repaid from cash flow from operations of businesses. Real estate loans are secured by both residential and commercial real estate. Net interest income is affected by the relative amount of interest-earning assets and interest-bearing liabilities and the interest received or paid on these balances. The level of interest rates paid or received by the Company can be significantly influenced by a number of environmental factors, such as governmental monetary and fiscal policies, that are outside of management’s control.

Revenue Recognition

Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied.

The majority of the Company’s revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as loans, investment securities, as well as revenue related to mortgage banking activities, as these activities are subject to other GAAP discussed elsewhere within the Company’s disclosures.

Table of Contents

United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended ~~March~~June 3130, 2025 and 2024

(In thousands)

Descriptions of the Company’s revenue-generating activities that are within the scope of ASC 606, which are presented in the income statements as components of non-interest income are as follows:

Service charges on deposit accounts - these represent general service fees for monthly account maintenance and activity- or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when the performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied.

Use of Estimates

To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided and future results could differ. The allowance for credit losses and fair values of financial instruments are particularly subject to change.

Investment Securities

Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such designation as of each balance sheet date.

Investment securities classified as available for sale are those securities that the Company intends to hold for an indefinite period of time but not necessarily to maturity. Securities available for sale are carried at fair value. Any decision to sell a security classified as available for sale would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. Unrealized gains or losses are reported as increases or decreases in other comprehensive income (loss), net of the deferred tax effect. Realized gains or losses, determined on the basis of the cost of the specific securities sold, are included in earnings. Premiums and discounts are recognized in interest income using the interest method over the terms of the securities.

Allowance for Credit Losses – Available for Sale Securities

The Company measures expected credit losses on available-for-sale debt securities when the Company does not intend to sell, or when it is not more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available-for-sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this evaluation indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, equal to the amount that the fair value is less than the amortized cost basis. The Company utilizes independent firms to evaluate the Company’s State and Municipal Obligations and Subordinated Notes to measure any expected credit losses. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income.

The allowance for credit losses on available-for-sale debt securities is included within investment securities available-for-sale on the consolidated balance sheet. Changes in the allowance for credit losses are recorded within provision for credit losses on the consolidated statement of income. Losses are charged against the allowance when the Company believes the collectability of an available-for-sale security is in jeopardy or when either of the criteria regarding intent or requirement to sell is met.

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended ~~March~~June 3130, 2025 and 2024

(In thousands)

Accrued interest receivable on available-for-sale debt securities totaled $2.17 million at ~~March~~June 3130, 2025 and $2.9 million at December 31, 2024 and is included within the line item accrued interest receivable on the consolidated balance sheet. This amount is excluded from the estimate of expected credit losses. Available-for-sale debt securities are typically classified as nonaccrual when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about the further collectability of principal or interest. When available-for-sale debt securities are placed on nonaccrual status, unpaid interest credited to income is reversed.

Loans

Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for credit losses and any deferred fees or costs. Accrued interest receivable totaled $1.43 million at ~~March~~June 3130, 2025 and $1.4 million at December 31, 2024 and was reported in the line item accrued interest receivable on the Consolidated Balance Sheets and is excluded from the estimate of credit losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) of the related loans. The Company is amortizing these amounts over the contractual life of the loan. Premiums and discounts on purchased loans are amortized as adjustments to interest income using the effective yield method.

The loans receivable portfolio is segmented into commercial and industrial, which are typically utilized for general business purposes and commercial real estate, which are collaterized by real estate. Homogenouse loans consisting similar products that are smaller in amount and distributed over a large number of individual borrowers include residential real estate and consumer loans.

For all classes of loans receivable, the accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for credit losses. Interest generally is either applied against principal or reported as interest income on a cash basis, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months), and the ultimate collectability of the total contractual principal and interest is no longer in doubt. The past-due status of all classes of loans receivable is determined based on contractual due dates for loan payments.

Allowance for Credit Losses - Loans

The allowance for credit losses (“ACL”) is a valuation reserve established and maintained by charges against income and is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged off against the ACL when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

The ACL is an estimate of expected credit losses, measured over the contractual life of a loan, that considers our historical loss experience, current conditions and forecasts of future economic conditions. Determination of an appropriate ACL is inherently subjective and may have significant changes from period to period.

The methodology for determining the ACL has two main components: evaluation of expected credit losses for certain groups of homogeneous loans that share similar risk characteristics and evaluation of loans that do not share risk characteristics with other loans.

The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The Company uses the call report classification as its segment breakout and measures the allowance for credit losses using the Weighted Average Remaining Maturity method for all loan segments.

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended ~~March~~June 3130, 2025 and 2024

(In thousands)

Historical credit loss experience is the basis for the estimation of expected credit losses. We apply historical loss rates to pools of loans with similar risk characteristics. After consideration of the historic loss calculation, management applies qualitative adjustments to reflect the current conditions and reasonable and supportable forecasts not already reflected in the historical loss information at the balance sheet date. Our reasonable and supportable forecast adjustment is based on a 2 year unemployment forecast provided by Bloomberg and management judgment. For periods beyond our reasonable and supportable forecast, we revert back to historical annual loss rates for the remainder of the life of each pool after the forecast period. The qualitative adjustments for current conditions are based upon current level of inflation, changes in lending policies and practices, experience and ability of lending staff, quality of the Company’s loan review system, value of underlying collateral, the existence of and changes in concentrations and other external factors. These modified historical loss rates are multiplied by the outstanding principal balance of each loan to calculate a required reserve.

The Company has elected to exclude accrued interest receivable from the measurement of its ACL. When a loan is placed on non-accrual status, any outstanding accrued interest is reversed against interest income.

The ACL for individual loans begins with the use of normal credit review procedures to identify whether a loan no longer shares similar risk characteristics with other pooled loans and therefore, should be individually assessed. We evaluate all commercial and industrial loans and residential and installment loans greater than $100,000 that meet the following criteria: 1) when it is determined that foreclosure is probable, 2) substandard, doubtful and nonperforming loans when repayment is expected to be provided substantially through the operation or sale of the collateral, 3) when it is determined by management that a loan does not share similar risk characteristics with other loans. Specific reserves are established based on the following three acceptable methods for measuring the ACL: 1) the present value of expected future cash flows discounted at the loan’s original effective interest rate; 2) the loan’s observable market price; or 3) the fair value of the collateral when the loan is collateral dependent. Our individual loan evaluations consist primarily of the fair value of collateral method because most of our loans are collateral dependent. Collateral values are discounted to consider disposition costs when appropriate. A specific reserve is established or a charge-off is taken if the fair value of the loan is less than the loan balance.

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted through credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.

Earnings Per Share

Earnings per share (EPS) were computed as follows:


	Three Months Ended ~~March~~June 3130, 2025
			Weighted-	Per
	Net		Average	Share
	Income		Shares	Amount
	(In thousands)
Net income	$	1,~~872~~914
Less allocated earnings on non-vested restricted stock		—(36)
Less allocated dividends on non-vested restricted stock		(~~103~~52)
Net income allocated to common stockholders		1,~~769~~826
			5,~~566~~491,~~428~~322
Basic and diluted earnings per share				$	0.3233

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended ~~March~~June 3130, 2025 and 2024

(In thousands)


	Three Months Ended March 31, 2024
			Weighted-
	Net		Average	Per Share
	Income		Shares	Amount
	(In thousands)
Net income	$	1,993
Less allocated earnings on non-vested restricted stock		(2)
Less allocated dividends on non-vested restricted stock		(88)
Net income allocated to common stockholders		1,903
			5,499,877
Basic and diluted earnings per share				$	0.35


	Three Months Ended June 30, 2024
			Weighted-
	Net		Average	Per Share
	Income		Shares	Amount
	(In thousands)
Net income	$	1,739
Less allocated earnings on non-vested restricted stock		(31)
Less allocated dividends on non-vested restricted stock		(49)
Net income allocated to common stockholders		1,659
			5,629,558
Basic and diluted earnings per share				$	0.30


	Six Months Ended June 30, 2025
			Weighted-	Per
	Net		Average	Share
	Income		Shares	Amount
	(In thousands)
Net income	$	3,786
Less allocated earnings on non-vested restricted stock		(19)
Less allocated dividends on non-vested restricted stock		(155)
Net income allocated to common stockholders		3,612
			5,558,504
Basic and diluted earnings per share				$	0.65


	Six Months Ended June 30, 2024
			Weighted-
			Average	Per Share
	Net Income		Shares	Amount
	(In thousands)
Net income	$	3,732
Less allocated earnings on non-vested restricted stock		(52)
Less dividends on non-vested restricted stock		(139)
Net income allocated to common stockholders		3,541
			5,565,391
Basic and diluted earnings per share				$	0.65

Income Taxes

The Company is subject to income taxes in the U.S. federal jurisdiction, as well as various state jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for the years before 2021.

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2025 and 2024

(In thousands)

Note 2: Securities

The amortized cost and fair values, together with gross unrealized gains and losses of securities are as follows:

Gross

Unrealized

Amortized Cost

Gains

Losses

Fair Value

Available-for-sale Securities:

March 31, 2025:

June 30, 2025:

U.S. government agencies

12,500

—

(~~160~~123)

12,~~340~~377

Subordinated notes

26,~~928~~914

—

(2,~~500~~383)

24,~~428~~531

State and municipal obligations

205,~~627~~534

342

(1215,~~586~~191)

~~193~~190,~~075~~345

Total debt securities

~~245~~244,~~055~~948

342

(1517,~~246~~697)

~~229~~227,~~843~~253


			Gross		Gross
			Unrealized		Unrealized
	Amortized Cost		Gains		Losses		Fair Value

	(In thousands)
Available-for-sale Securities:
December 31, 2024:
U.S. government agencies	$	12,500	$	—	$	(246)	$	12,254
Subordinated notes		26,942		—		(2,824)		24,118
State and municipal obligations		213,319		335		(9,395)		204,259
Total debt securities	$	252,761	$	335	$	(12,465)	$	240,631

There was no allowance for credit losses at ~~March~~June 3130, 2025 or December 31, 2024.

12The amortized cost and fair value of available-for-sale securities at June 30, 2025, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Amortized		Fair
	Cost		Value

	(In thousands)
Under one year	$	4,219	$	4,195
One to five years		14,500		14,388
Five to ten years		28,138		25,596
Over ten years		198,091		183,074
Totals	$	244,948	$	227,253

The carrying value of securities pledged as collateral, to secure public deposits and for other purposes, was $121.8 million and $121.4 million at June 30, 2025 and December 31, 2024, respectively.

Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. The total fair value of these investments at June 30, 2025 was $226.8 million, which represented 99% of the Company’s available-for-sale investment portfolio. The total fair value of these investments at December 31, 2024 was $208.8 million, which represented less than 87% of the Company’s available-for-sale.

Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary and are a result of an increase in longer term interest rates.

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended ~~March~~June 3130, 2025 and 2024

(In thousands)

The ~~amortized~~following ~~cost~~tables ~~and~~show ~~fair~~the ~~value~~Company’s of available- for- sale securities atand ~~March~~the ~~31,~~related ~~2025,~~gross byunrealized ~~contractual~~losses ~~maturity~~and fair value,for ~~are~~which ~~shown~~an ~~below.~~allowance ~~Expected~~for ~~maturities~~credit ~~will~~losses ~~differ~~has ~~from~~not ~~contractual~~been ~~maturities~~recorded, ~~because~~aggregated ~~issuers~~by ~~may~~investment category and length of time that individual securities have ~~the~~been ~~right~~in toa ~~call~~continuous orunrealized ~~prepay~~loss ~~obligations~~position ~~with~~at orJune ~~without~~30, ~~call~~2025 orand ~~prepayment~~December ~~penalties~~31. 2024:


	~~Amortized~~June 30, 2025		~~Fair~~
	~~Cost~~Less than 12 Months		~~Value~~		12 Months or More				Total
	(In thousands)
Description of			Unrealized				Unrealized				Unrealized
Under one year	$	4,235	$	4,194
Securities	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
One to five years		14,500		14,376
	(In thousands)
Five to ten years		27,037		24,329
U.S. Government agencies	$	—	$	—	$	12,377	$	(123)	$	12,377	$	(123)
Over ten years		199,283		186,944
Subordinated notes		—		—		24,531		(2,383)		24,531		(2,383)
Totals	$	245,055	$	229,843
State and municipal obligations		136,391		(6,772)		53,451		(8,419)		189,842		(15,191)
Total temporarily impaired securities	$	136,391	$	(6,772)	$	90,359	$	(10,925)	$	226,750	$	(17,697)

The carrying value of securities pledged as collateral, to secure public deposits and for other purposes, was $118.7 million and $121.4 million at March 31, 2025 and December 31, 2024, respectively.

Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. The total fair value of these investments at March 31, 2025 was $221.7 million, which represented 96% of the Company’s available-for-sale investment portfolio. The total fair value of these investments at December 31, 2024 was $208.8 million, which represented less than 87% of the Company’s available-for-sale.

The following tables show the Company’s available for sale securities and the related gross unrealized losses and fair value,for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2025 and December 31. 2024:


	March 31, 2025
	Less than 12 Months				12 Months or More				Total
Description of			Unrealized				Unrealized				Unrealized
Securities	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(In thousands)
U.S. Government agencies	$	—	$	—	$	12,340	$	(160)	$	12,340	$	(160)
Subordinated notes		—		—		24,428		(2,500)		24,428		(2,500)
State and municipal obligations		133,752		(4,706)		51,152		(7,880)		184,904		(12,586)
Total temporarily impaired securities	$	133,752	$	(4,706)	$	87,920	$	(10,540)	$	221,672	$	(15,246)


	December 31, 2024
	Less than 12 Months				12 Months or More				Total
Description of			Unrealized				Unrealized				Unrealized
Securities	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses

	(In thousands)
US government agencies	$	—	$	—	$	12,254	$	(246)	$	12,254	$	(246)
Subordinated notes		—		—		24,118		(2,824)		24,118		(2,824)
State and municipal obligations		127,876		(2,478)		44,535		(6,917)		172,411		(9,395)
Total temporarily impaired securities	$	127,876	$	(2,478)	$	80,907	$	(9,987)	$	208,783	$	(12,465)

13The unrealized losses on the Company’s 206 investments in available for sale securities were caused primarily by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to require an allowance for credit losses to be recognized as of June 30, 2025 or December 31, 2024.

The Company recorded a net gain on the sale of available - for - sale securities of approximately $144,000 for the six months ended June 30, 2025. The Company sold $140,000 in securities for a loss of $2,000 and sold $7.7 million in securities for a gain of $146,000. The Company wanted to rebalance a portion of its security portfolio during the first quarter of 2025.

The Company recorded a net gain on the sale of available-for-sale securities of approximately $78,000 for the three months ended June 30, 2024 and loss of approximately $116,000 for the six month ended June 30, 2024. The Company sold $20.3 million in securities for a loss of $228,000 and sold $7.2 million in securities for a gain of $112,000.

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended ~~March~~June 3130, 2025 and 2024

(In thousands)

The unrealized losses on the Company’s 196 investments in available for sale securities were caused primarily by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to require an allowance for credit losses to be recognized as of March 31, 2025 or December 31, 2024.

The Company recorded a gain on the sale of available - for - sale securities of approximately $143,000 for the three months ended March 31, 2025. The Company sold $140,000 in securities for a loss of $2,000 and sold $7,593,000 million in securities for a gain of $145,000. The Company wanted to rebalance a portion of its security portfolio during the first quarter of 2025. The Company recorded a loss on the sale of available-for-sale securities of approximately $194,000 for the three months ended March 31, 2024. The Company sold $20.3 million in securities for a loss of $228,000 and sold $5.0 million in securities for a gain of $34,000.

Note 3: Loans and Allowance for Credit Losses

Categories of loans by purpose include:


	~~March~~June 3130,		December 31,
	2025		2024
	(In thousands)
Commercial and Industrial	$	99100,~~571~~053	$	98,795
Commercial real estate		~~296~~301,~~493~~128		291,673
Residential real estate		9291,~~709~~898		91,737
Consumer loans		87,~~093~~668		8,766

Total gross loans		~~496~~500,~~866~~747		490,971

Less allowance for credit losses		(4,~~095~~156)		(4,026)

Total loans	$	~~492~~496,~~771~~591	$	486,945

The risk characteristics of each loan portfolio segment are as follows:

Commercial and Industrial, and Commercial Real Estate

Commercial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and may include a personal guarantee. Short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The characteristics of properties securing the Company’s commercial real estate portfolio are diverse, but with geographic location almost entirely in the Company’s market area. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. In general, the Company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner-occupied commercial real estate versus nonowner-occupied loans.

14Residential Real Estate and Consumer

Residential real estate and consumer loans consist of two segments - residential mortgage loans and personal loans. For residential mortgage loans that are secured by 1-4 family residences and are generally owner-occupied, the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and consumer personal loans are secured by consumer personal assets, such as automobiles or recreational vehicles. Some consumer personal loans are unsecured, such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas, such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers.

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended ~~March~~June 3130, 2025 and 2024

(In thousands)

~~Residential~~The ~~Real~~following ~~Estate~~tables present the balance in the allowance for credit losses by collateral type and ~~Consumer~~the recorded investment in loans by purpose based on portfolio segment and credit loss method as of June 30, 2025 and December 31, 2024.

The following tables present the balance in the allowance for credit losses by collateral type and the recorded investment in loans by purpose based on portfolio segment and credit loss method as of March 31, 2025 and December 31, 2024.


	June 30, 2025
	Commercial and		Commercial
	Industrial		Real Estate		Residential		Installment		Total

	(In thousands)
Allowance for credit losses:

Balance, April 1, 2025	$	719	$	1,425	$	1,837	$	114	$	4,095
Provision for credit loss exposure		22		48		105		31		206
Losses charged off		(110)		—		(4)		(44)		(158)
Recoveries		2		—		—		11		13
Balance, June 30, 2025	$	633	$	1,473	$	1,938	$	112	$	4,156
Balance, January 1, 2025	$	699	$	1,488	$	1,708	$	131	$	4,026
Provision for credit loss exposure		41		(15)		234		42		302
Losses charged off		(110)		—		(4)		(78)		(192)
Recoveries		3		—		—		17		20
Balance, June 30, 2025	$	633	$	1,473	$	1,938	$	112	$	4,156

Allocation:

Ending balance: individually evaluated for credit losses	$	—	$	—	$	—	$	—	$	—
Ending balance: collectively evaluated for credit losses	$	633	$	1,473	$	1,938	$	112	$	4,156
Loans:
Ending balance: individually evaluated for credit losses	$	194	$	1,484	$	197	$	—	$	1,875
Ending balance: collectively evaluated for credit losses	$	99,859	$	299,644	$	91,701	$	7,668	$	498,872


	March 31, 2025
	Commercial and		Commercial
	Industrial		Real Estate		Residential		Installment		Total
	(In thousands)
Allowance for credit losses:

Balance, beginning of period	$	699	$	1,488	$	1,708	$	131	$	4,026
Provision for credit loss expense		19		(63)		129		11		96
Losses charged off		—		—		—		(34)		(34)
Recoveries		1		—		—		6		7
Balance, end of period	$	719	$	1,425	$	1,837	$	114	$	4,095

Ending balance: individually evaluated for credit losses	$	111	$	—	$	—	$	—	$	111
Ending balance: collectively evaluated for credit losses	$	608	$	1,425	$	1,837	$	114	$	3,984
Loans:
Ending balance: individually evaluated for credit losses	$	323	$	1,469	$	—	$	200	$	1,992
Ending balance: collectively evaluated for credit losses	$	99,248	$	295,024	$	92,709	$	7,893	$	494,874

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended ~~March~~June 3130, 2025 and 2024

(In thousands)


	~~March~~June 3130, 2024
	Commercial and		Commercial
	Industrial		Real Estate		Residential		Installment		Total
	(In thousands)
Allowance for credit losses:

Balance, beginning of period	$	573	$	1,408	$	1,843	$	94	$	3,918
Balance, April 1, 2024	$	589	$	1,377	$	1,783	$	121	$	3,870
Provision for credit loss expense		15		(31)		(60)		76		—
Provision for (reversal of) credit loss exposure		114		36		37		47		234
Losses charged off		—(75)		—		—(7)		(5744)		(57126)
Recoveries		1—		—		—		811		911
Balance, end of period	$	589	$	1,377	$	1,783	$	121	$	3,870
Balance, June 30, 2024	$	628	$	1,413	$	1,813	$	135	$	3,989
Balance, January 1, 2024	$	573	$	1,408	$	1,843	$	94	$	3,918
Provision for (reversal of) credit loss exposure		129		5		(23)		123		234
Losses charged off		(75)		—		(7)		(101)		(183)
Recoveries		1		—		—		19		20
Balance, June 30, 2024	$	628	$	1,413	$	1,813	$	135	$	3,989

Ending balance: individually evaluated for credit losses	$	75	$	—	$	—	$	—	$	75
Allocation:
Ending balance: collectively evaluated for credit losses	$	514	$	1,377	$	1,783	$	121	$	3,795

Ending balance: individually evaluated for credit losses	$	—	$	—	$	—	$	—	$	—
Ending balance: collectively evaluated for credit losses	$	628	$	1,413	$	1,813	$	135	$	3,989
Loans:
Ending balance: individually evaluated for credit losses	$	~~141~~66	$	87	$	~~235~~237	$	—	$	~~384~~310
Ending balance: collectively evaluated for losses	$	90,086	$	288,878	$	92,477	$	8,482	$	479,923
Ending balance: collectively evaluated for credit losses	$	94,596	$	287,628	$	91,917	$	10,063	$	484,204

Allowance for Loan Losses and Recorded Investment in Loans

As of December 31, 2024


			December 31, 2024
	Commercial and		Commercial
	Industrial		Real Estate		Residential		Installment		Total

	(In thousands)
Allowance for credit losses:
Ending balance: individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—
Ending balance: collectively evaluated for impairment	$	699	$	1,488	$	1,708	$	131	$	4,026

Loans:
Ending balance: individually evaluated for impairment	$	—	$	—	$	220	$	—	$	220
Ending balance: collectively evaluated for impairment	$	98,795	$	291,673	$	91,517	$	8,766	$	490,751

1617

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended ~~March~~June 3130, 2025 and 2024

(In thousands)

The following tables show the portfolio quality indicators.

Based on the most recent analysis performed, the following table presents the recorded investment in non-homogeneous loans by internal risk rating system as of ~~March~~June 3130, 2025 (in thousands):


													Revolving		Revolving
													Loans		Loans
													Amortized		Converted
March 31, 2025	2025		2024		2023		2022		2021		Prior		Cost Basis		to Term		Total
June 30, 2025	2025		2024		2023		2022		2021		Prior		Cost Basis		to Term		Total
Commercial and Industrial
Risk Rating
Pass	$	612,~~512~~499	$	2119,~~013~~055	$	1715,~~007~~964	$	109,~~640~~889	$	76,~~088~~126	$	1815,~~425~~854	$	1719,~~491~~412	$	—	$	98,~~176~~799
Special Mention		—		—		—		—		—		—		1,~~072~~060		—		1,~~072~~060
Substandard		—		—		41—		26		—		~~186~~168		70—		—		~~323~~194
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	612,~~512~~499	$	2119,~~013~~055	$	1715,~~048~~964	$	109,~~666~~915	$	76,~~088~~126	$	1816,~~611~~022	$	1820,~~633~~472	$	—	$	99100,~~571~~053

Commercial and Industrial
Current period gross charge-offs	$	—	$	—	$	—110	$	—	$	—	$	—	$	—	$	—	$	—110

Commercial real estate
Risk Rating
Pass	$	1114,~~377~~109	$	19,~~453~~070	$	3229,~~301~~546	$	3231,~~347~~780	$	3635,~~169~~686	$	9594,~~886~~620	$	5461,~~180~~807	$	—	$	~~281~~286,~~713~~618
Special Mention		—		—		—		~~315~~309		—		6,~~654~~292		6,~~342~~425		—		13,~~311~~026
Substandard		—		—		—		—		377		1,~~092~~107		—		—		1,~~469~~484
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	1114,~~377~~109	$	19,~~453~~070	$	3229,~~301~~546	$	32,~~662~~089	$	36,~~546~~063	$	~~103~~102,~~632~~019	$	6068,~~522~~232	$	—	$	~~296~~301,~~493~~128

Commercial real estate
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total
Pass	$	1726,~~889~~608	$	4038,~~466~~125	$	4945,~~308~~510	$	4241,~~987~~669	$	4341,~~257~~812	$	~~114~~110,~~311~~474	$	7181,~~671~~219	$	—	$	~~379~~385,~~889~~417
Special Mention		—		—		—		~~315~~309		—		6,~~654~~292		7,~~414~~485		—		14,~~383~~086
Substandard		—		—		41—		26		377		1,~~278~~275		70—		—		1,~~792~~678
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	1726,~~889~~608	$	4038,~~466~~125	$	4945,~~349~~510	$	4342,~~328~~004	$	4342,~~634~~189	$	~~122~~118,~~243~~041	$	7988,~~155~~704	$	—	$	~~396~~401,~~064~~181
Current period gross charge-offs	$	—	$	—	$	—110	$	—	$	—	$	—	$	—	$	—	$	—110

1718

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended ~~March~~June 3130, 2025 and 2024

(In thousands)

The Company monitors the credit risk profile by payment activity for residential and consumer loan classes. Loans past due 90 days or more and loans on nonaccrual status are considered nonperforming. Nonperforming loans are reviewed quarterly. The following table presents the amortized cost in residential and consumer loans based on payment activity:


													Revolving		Revolving
													Loans		Loans
													Amortized		Converted
March 31, 2025	2025		2024		2023		2022		2021		Prior		Cost Basis		to Term		Total
June 30, 2025	2025		2024		2023		2022		2021		Prior		Cost Basis		to Term		Total
Residential Real Estate
Payment Performance
Performing	$	24,~~414~~686	$	98,~~410~~763	$	109,~~234~~750	$	16,~~772~~441	$	14,~~846~~621	$	3837,~~769~~399	$	—	$	—	$	9291,~~445~~660
Nonperforming		—		—23		21—		—		1618		~~227~~197		—		—		~~264~~238
Total	$	24,~~414~~686	$	98,~~410~~786	$	109,~~255~~750	$	16,~~772~~441	$	14,~~862~~639	$	3837,~~996~~596	$	—	$	—	$	9291,~~709~~898

Residential real estate
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—4	$	—	$	—	$	—4

Consumer
Payment Performance
Performing	$	~~418~~735	$	43,~~099~~755	$	1,~~199~~091	$	~~698~~585	$	~~305~~272	$	~~980~~843	$	~~375~~373	$	—	$	87,~~074~~654
Nonperforming		—		—		2		—		—		1712		—		—		1914
Total	$	~~418~~735	$	43,~~099~~755	$	1,~~201~~093	$	~~698~~585	$	~~305~~272	$	~~997~~855	$	~~375~~373	$	—	$	87,~~093~~668

Consumer
Current period gross charge-offs	$	3465	$	—7	$	—	$	—1	$	—	$	—5	$	—	$	—	$	3478

Total
Payment Performance
Performing	$	25,~~632~~421	$	1312,~~509~~518	$	1110,~~433~~841	$	17,~~470~~026	$	1514,~~151~~893	$	3938,~~752~~242	$	~~375~~373	$	—	$	~~100~~98,~~322~~314
Nonperforming		—		—23		232		—		1618		~~241~~209		—		—		~~280~~252
Total	$	25,~~632~~421	$	1312,~~509~~541	$	1110,~~456~~843	$	17,~~470~~026	$	1514,~~167~~911	$	3938,~~993~~451	$	~~375~~373	$	—	$	~~100~~99,~~602~~566
Current period gross charge-offs	$	65	$	7	$	—	$	1	$	—	$	9	$	—	$	—	$	82

1819

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended ~~March~~June 3130, 2025 and 2024

(In thousands)

The following tables show the portfolio quality indicators.

Based on the most recent analysis performed, the following table presents the recorded investment in non-homogeneous loans by internal risk rating system as of December 31, 2024 (in thousands):


													Revolving		Revolving
													Loans		Loans
													Amortized		Converted
December 31, 2024	2024		2023		2022		2021		2020		Prior		Cost Basis		to Term		Total
Commercial and industrial
Risk Rating
Pass	$	22,474	$	17,993	$	11,487	$	8,082	$	10,099	$	8,295	$	19,068	$	—	$	97,498
Special Mention		—		—		26		—		—		185		1,086		—		1,297
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	22,474	$	17,993	$	11,513	$	8,082	$	10,099	$	8,480	$	20,154	$	—	$	98,795

Commercial and industrial
Current period gross charge-offs	$	—	$	127	$	—	$	—	$	—	$	—	$	—	$	—	$	127

Commercial real estate
Risk Rating
Pass	$	19,554	$	30,858	$	32,972	$	36,870	$	31,461	$	68,279	$	57,096	$	—	$	277,090
Special Mention		—		—		315		242		—		7,781		6,229		—		14,567
Substandard		—		—		—		—		—		16		—		—		16
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	19,554	$	30,858	$	33,287	$	37,112	$	31,461	$	76,076	$	63,325	$	—	$	291,673

Commercial real estate
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total
Pass	$	42,028	$	48,851	$	44,459	$	44,952	$	41,560	$	76,574	$	76,164	$	—	$	374,588
Special Mention		—		—		341		242		—		7,966		7,315		—		15,864
Substandard		—		—		—		—		—		16		—		—		16
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	42,028	$	48,851	$	44,800	$	45,194	$	41,560	$	84,556	$	83,479	$	—	$	390,468
Current period gross charge-offs	$	—	$	127	$	—	$	—	$	—	$	—	$	—	$	—	$	127

1920

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended ~~March~~June 3130, 2025 and 2024

(In thousands)


													Revolving		Revolving
													Loans		Loans
													Amortized		Converted
December 31, 2024	2024		2023		2022		2021		2020		Prior		Cost Basis		to Term		Total
Residential Real Estate
Payment Performance
Performing	$	9,480	$	10,469	$	16,912	$	15,174	$	17,401	$	21,993	$	—	$	—	$	91,429
Nonperforming		—		22		—		17		—		269		—		—		308
Total	$	9,480	$	10,491	$	16,912	$	15,191	$	17,401	$	22,262	$	—	$	—	$	91,737

Residential real estate
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	17	$	—	$	—	$	17

Consumer
Payment Performance
Performing	$	4,619	$	1,427	$	798	$	349	$	275	$	907	$	376	$	—	$	8,751
Nonperforming		—		—		—		—		15		—		—		—		15
Total	$	4,619	$	1,427	$	798	$	349	$	290	$	907	$	376	$	—	$	8,766

Consumer
Current period gross charge-offs	$	144	$	72	$	—	$	—	$	—	$	—	$	—	$	—	$	216

Total
Payment Performance
Performing	$	14,099	$	11,896	$	17,710	$	15,523	$	17,676	$	22,900	$	376	$	—	$	100,180
Nonperforming		—		22		—		17		15		269		—		—		323
Total	$	14,099	$	11,918	$	17,710	$	15,540	$	17,691	$	23,169	$	376	$	—	$	100,503
Current period gross charge-offs	$	144	$	72	$	—	$	—	$	—	$	17	$	—	$	—	$	233

To facilitate the monitoring of credit quality within the loan portfolio, and for purposes of analyzing historical loss rates used in the determination of the allowance for credit losses, the Company utilizes the following categories of credit grades: pass, special mention, substandard, and doubtful. The four categories, which are derived from standard regulatory rating definitions, are assigned upon initial approval of credit to borrowers and updated periodically thereafter. Pass ratings, which are assigned to those borrowers that do not have identified potential or well defined weaknesses and for which there is a high likelihood of orderly repayment, are updated periodically based on the size and credit characteristics of the borrower. All other categories are updated on at least a quarterly basis.

The Company assigns a special mention rating to loans that have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the loan or the Company’s credit position.

The Company assigns a substandard rating to loans that are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged. Substandard loans have well defined weaknesses or weaknesses that could jeopardize the orderly repayment of the debt. Loans and leases in this grade also are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies noted are not addressed and corrected.

The Company assigns a doubtful rating to loans that have all the attributes of a substandard rating with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors that may work to the advantage of and strengthen the credit quality of the loan or lease, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceeding, capital injection, perfecting liens on additional collateral or refinancing plans.

2021

Table of Contents

United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended ~~March~~June 3130, 2025 and 2024

(In thousands)

The Company evaluates the loan risk grading system definitions and allowance for credit losses methodology on an ongoing basis. No significant changes were made to either during the past year to date period.

Loan Portfolio Aging Analysis

As of ~~March~~June 3130, 2025

30-59 Days

60‑89 Days

Greater

Past Due

Than 90 Days

Total Past

and

Due and

Total Loans

Accruing

Non Accrual

Current

Receivable

(In thousands)

Commercial and Industrial

27—

—

~~323~~194

~~350~~194

99,~~221~~859

99100,~~571~~053

Commercial real estate

~~338~~—

—

1,~~335~~350

1,~~673~~350

~~294~~299,~~820~~778

~~296~~301,~~493~~128

Residential

~~443~~327

3074

—

~~264~~238

~~737~~640

91,~~972~~258

9291,~~709~~898

Installment

5844

5—

3—

1614

8259

87,~~011~~609

87,~~093~~668

Total

~~866~~371

3574

3—

1,~~938~~796

2,~~842~~243

~~494~~498,~~024~~504

~~496~~500,~~866~~747

Loan Portfolio Aging Analysis

As of December 31, 2024


	30‑59 Days		60‑89 Days		Greater
	Past Due		Past Due		Than 90 Days				Total Past
	and		and		and				Due and				Total Loans
	Accruing		Accruing		Accruing		Non Accrual		Non Accrual		Current		Receivable

	(In thousands)
Commercial and Insustrial	$	—	$	43	$	41	$	170	$	254	$	98,541	$	98,795
Commercial real estate		48		—		—		258		306		291,367		291,673
Residential		95		30		—		308		433		91,304		91,737
Installment		15		2		15		—		32		8,734		8,766
Total	$	158	$	75	$	56	$	736	$	1,025	$	489,946	$	490,971

Nonperforming Loans

The following table present the amortized cost basis of loans on nonaccrual status and loans past due over 90 days still accruing interest as of ~~March~~June 3130, 2025:


							Loans Past
							Due Over 90 Days		Total
	Nonaccrual with no ACL		Nonaccrual with ACL		Total Nonaccrual		Still Accruing		Nonperforming
	(In thousands)
Commercial and Industrial	$	~~211~~194	$	~~112~~—	$	~~323~~194	$	—	$	~~323~~194
Commercial real estate		1,~~335~~350		—		1,~~335~~350		—		1,~~335~~350
Residential		~~264~~238		—		~~264~~238		—		~~264~~238
Installment		1614		—		1614		3—		1914
Total	$	1,~~826~~796	$	~~112~~—	$	1,~~938~~796	$	3—	$	1,~~941~~796

2122

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended ~~March~~June 3130, 2025 and 2024

(In thousands)

The Company ~~recognized~~did ~~$103,000~~not recognize interest income on nonaccrual loans during the period ended ~~March~~June 3130, 2025.

The following table present the amortized cost basis of loans on nonaccrual status and loans past due over 90 days still accruing interest as of December 31, 2024:


							Loans Past
							Due Over 90 Days		Total
	Nonaccrual with no ACL		Nonaccrual with ACL		Total Nonaccrual		Still Accruing		Nonperforming

	(In thousands)
Commercial and Industrial	$	170	$	—	$	170	$	41	$	211
Commercial real estate		258		—		258		—		258
Residential		308		—		308		—		308
Consumer		—		—		—		15		15
Total	$	736	$	—	$	736	$	56	$	792

The Company recognized approximately $4,000 interest income on nonaccrual loans during the the period ended December 31, 2024.

Note 4: Benefit Plans

Pension expense includes the following:


	Three months ended				Six months ended
	~~March~~June 3130,				June 30,
	2025		2024		2025		2024
	(In thousands)
Service cost	$	87	$	81	$	174	$	162
Interest cost		9897		81		194		162
Expected return on assets		(178)		(156)		(356)		(312)
Amortization of prior service cost and net loss		(22)		(22)
Accretion of prior service cost and net loss		(22)		(22)		(44)		(44)

Pension (contra expense) expense	$	(1516)	$	(16)	$	(32)	$	(32)

All components of pension expense are reflected within the salaries and employee benefits line of the consolidated statement of income.

Note 5: Off-~~balance~~Balance-~~sheet~~Sheet Activities

Some financial instruments, such as loan commitments, credit lines, letters of credit and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contracts are met, and usually have expiration dates. Commitments may expire without being used. Off-balance-sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment.

2223

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended ~~March~~June 3130, 2025 and 2024

(In thousands)

A summary of the notional or contractual amounts of financial instruments with off-balance-sheet risk at the indicated dates is as follows:


	~~March~~June 3130,		December 31,
	2025		2024
	(In thousands)
Commercial loans unused lines of credit	$	7198,~~314~~461	$	71,522
Commitment to originate loans		6996,~~988~~981		70,251
Consumer open end lines of credit		3534,~~701~~889		35,570
Standby lines of credit		11—		136

During the three and six months ended ~~March~~June 3130, 2025, there was no change in the provision for credit expense for off balance sheet exposure of $94,000.

Allowance for Credit Losses on Off-Balance Sheet Commitments

The following table present the activity in the allowance for credit losses related to off-balance sheet commitments, that is included in interest payable and other liabilities on the consolidated balance sheets of financial condition for the three and six months ended ~~March~~June 3130, 2025 and 2024.


	~~March~~June 3130,
	2025

Balance – December 31, 2024	$	94
Provision for (reversal of) credit losses		—
Balance – March 31, 2025	$	94
Provision for (reversal of) credit losses		—
Balance – June 30, 2025	$	94


	~~March~~June 3130,
	2024

Balance – December 31, 2023	$	224
Provision for (reversal of) credit losses		—
Balance – March 31, 2024	$	224
Provision for (reversal of) credit losses		(130)
Balance – June 30, 2024	$	94

Note 6: Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss), included in stockholders’ equity, are as follows:


	~~March~~June 3130,		December 31,
	2025		2024
	(In thousands)
Net unrealized loss on securities available-for-sale	$	(1517,~~212~~695)	$	(12,130)
Net unrealized loss for unfunded status of defined benefit plan liability		(654)		(654)
		(1518,~~866~~349)		(12,784)
Less: Tax effect		3,~~331~~853		2,684
Net-of-tax amount	$	(1214,~~535~~496)	$	(10,100)

2324

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended ~~March~~June 3130, 2025 and 2024

(In thousands)

The changes in accumulated other comprehensive income (loss) by component shown of net of tax and parenthesis indicating debits as of ~~March~~June 3130, 2025 and 2024.

Three months ended

~~March~~June 3130, 2025

~~March~~June 3130, 2024

Net unrealized

(Loss)

Defined

(Loss)

Defined

Gain on Available

Benefit

Gain on Available

Benefit

For Sale Securities

Plan

Total

For Sale Securities

Plan

Total

(In thousands)

Beginning balance

(912,~~583~~018)

(517)

(1012,~~100~~535)

(7,~~049~~378)

(429)

(7,~~478~~807)

Other comprehensive income (loss) before reclassification

(21,~~322~~961)

—

(21,~~322~~961)

(~~482~~3,351)

—

(~~482~~3,351)

Amounts reclassified from accumulated other comprehensive gain (loss)

~~(113)~~—

—

~~(113)~~—

~~153~~(61)

—

~~153~~(61)

Net current -period other comprehensive income (loss)

(21,~~435~~961)

—

(21,~~435~~961)

(~~329~~3,412)

—

(~~329~~3,412)

Ending balance

(1213,~~018~~979)

(517)

(1214,~~535~~496)

(710,~~378~~790)

(429)

(711,~~807~~219)


	Six months ended						Six months ended
	June 30, 2025						June 30, 2024
	Net unrealized						Net unrealized
	(Loss)		Defined				(Loss)		Defined
	Gain on Available		Benefit				Gain on Available		Benefit
	For Sale Securities		Plan		Total		For Sale Securities		Plan		Total
(In thousands)
Beginning balance	$	(9,583)	$	(517)	$	(10,100)	$	(7,049)	$	(429)	$	(7,478)
Other comprehensive income (loss) before reclassification		(4,282)		—		(4,282)		(3,833)		—		(3,833)
Amounts reclassified from accumulated other comprehensive (gain) loss		(114)		—		(114)		92		—		92
Net current -period other comprehensive income (loss)		(4,396)		—		(4,396)		(3,741)		—		(3,741)
Ending balance	$	(13,979)	$	(517)	$	(14,496)	$	(10,790)	$	(429)	$	(11,219)

Note 7: Fair Value Measurements

The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company also utilizes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1

Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date

Level 2

Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities

Level 3

Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities

Following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy.25

Available-for-sale Securities

Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. The Company’s equity securities are classified within Level 1 of the hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy.

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended ~~March~~June 3130, 2025 and 2024

(In thousands)

~~The~~Following ~~following~~is ~~table~~a ~~presents~~description ~~the fair value measurements~~ of ~~assets recognized in~~ the ~~accompanying~~valuation ~~consolidated~~methodologies ~~balance~~used ~~sheets~~for assets measured at fair value on a recurring basis and ~~the~~recognized ~~level~~in ~~within~~ the ~~fair~~accompanying ~~value~~consolidated ~~hierarchy~~balance insheets, ~~which~~as ~~the~~well ~~fair~~as ~~value~~the ~~measurements~~general ~~fall~~classification atof ~~March~~such ~~31,~~instruments ~~2025~~pursuant ~~and~~to ~~December~~the ~~31,~~valuation ~~2024:~~hierarchy.

Available-for-sale Securities

The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2025 and December 31, 2024:


			Fair Value Measurements Using
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
	(In thousands)
March 31, 2025
June 30, 2025
U.S. government agencies	$	12,~~340~~377	$	—	$	12,~~340~~377	$	—
Subordinated Notes		24,~~428~~531		—		24,~~428~~531		—
State and municipal obligations		~~193~~190,~~075~~345		—		~~193~~190,~~075~~345		—


December 31, 2024
U.S. government agencies	$	12,254	$	—	$	12,254	$	—
Subordinated Notes		24,118		—		24,118		—
State and municipal obligations		204,259		—		204,259		—

Following is a description of the valuation methodologies used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below.

Collateral Dependent

Collateral dependent loans consisted primarily of loans secured by nonresidential real estate. Management has determined fair value measurements on collateral dependent loans primarily through evaluations of appraisals performed. Due to the nature of the valuation inputs, impaired loans are classified within Level 3 of the hierarchy.

~~The~~As ~~Company~~of ~~considers~~June ~~the~~30, ~~appraisal~~2025, ~~or evaluation as~~ the ~~starting point for determining~~ fair value ~~and~~investment ~~then~~in ~~considers~~individually ~~other~~analyzed ~~factors~~loans ~~and~~totaled ~~events~~$1,875,000 ~~in the environment~~ that ~~may~~did ~~affect~~not ~~the~~require ~~fair~~a ~~value.~~specific ~~Appraisals~~allowance offor ~~the~~credit ~~collateral~~loss ~~underlying~~since ~~collateral-dependent~~either ~~loans are obtained when~~ the ~~loan~~estimated isrealizable ~~determined~~value toof bethe collateral~~-dependent~~ ~~and~~or ~~subsequently~~the asdiscounted ~~deemed~~cash ~~necessary~~flows byexceeded the ~~Company’s~~recorded ~~Chief~~investment ~~Lender.~~in ~~Appraisals are reviewed for accuracy and consistency by~~ the ~~Company’s Chief Lender~~loan. ~~Appraisers~~As ~~are selected from the list~~ of ~~approved~~December ~~appraisers~~31, ~~maintained~~2024, bythe ~~management.~~fair ~~The~~value ~~appraised~~investment ~~values~~in ~~are~~individually ~~reduced~~analyzed byloans ~~discounts~~totaled to$220,000 ~~consider~~that ~~lack~~did ofnot ~~marketability~~require ~~and~~a ~~estimated~~specific ~~cost~~allowance tofor ~~sell~~credit ifloss ~~repayment~~since oreither ~~satisfaction of~~ the ~~loan~~estimated isrealizable ~~dependent~~value ~~on the sale~~ of the collateral. ~~These~~or ~~discounts~~the ~~and~~discounted ~~estimates~~cash ~~are~~flows ~~developed~~exceeded by the ~~Company’s~~recorded ~~Chief~~investment ~~Lender~~in ~~by comparison to historical results. At March 31, 2025,~~ the ~~Company has a $75,000 collateral dependent~~ loan ~~that is fully reserved~~. ~~There were no collateral dependent loans at December 31, 2024.~~

~~Foreclosed Assets Held for Sale~~26

Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value (based on current appraised value) at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Management has determined fair value measurements on other real estate owned primarily through evaluations of appraisals performed, and current and past offers for the other real estate under evaluation. Due to the nature of the valuation inputs, foreclosed assets held for sale are classified within Level 3 of the hierarchy.

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended ~~March~~June 3130, 2025 and 2024

(In thousands)

The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by the Company’s Chief Lender. Appraisals are reviewed for accuracy and consistency by the Company’s Chief Lender. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by the Company’s Chief Lender by comparison to historical results. There were no collateral dependent loans at June 30, 2025 and December 31, 2024.

Foreclosed Assets Held for Sale

Appraisals of OREO are obtained when the real estate is acquired and subsequently as deemed necessary by the Company’s Chief lender. Appraisals are reviewed for accuracy and consistency by the Company’s Chief Lender and are selected from the list of approved appraisers maintained by management.

The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at ~~March~~June 3130, 2025 and December 31, 2024.


			Fair Value Measurements Using
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	Fair		Assets		Inputs		Inputs
	Value		(Level 1)		(Level 2)		(Level 3)
	(In thousands)
March 31, 2025
June 30, 2025
Collateral dependent loans	$	—	$	—	$	—	$	—
Foreclosed assets held for sale		—		—		—		—

December 31, 2024
Collateral dependent loans	$	—	$	—	$	—	$	—
Foreclosed assets held for sale		120		—		—		120

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2025 and 2024

(In thousands)

Unobservable (Level 3) Inputs

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements.


	Fair Value at		Valuation	Unobservable
	36/3130/25		Technique	Inputs	Range
	(In thousands)
Collateral-dependent loans	$	—	Market comparable properties	Comparability adjustments	5% – 10%
Foreclosed assets held for sale		—	Market comparable properties	Marketability discount	10% – 35%


	Fair Value at		Valuation	Unobservable
	12/31/24		Technique	Inputs	Range

	(In thousands)
Collateral-dependent loans	$	—	Market comparable properties	Comparability adjustments	5% – 10%
Foreclosed assets held for sale		120	Market comparable properties	Marketability discount	10% – 35%

2628

Table of Contents

United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended ~~March~~June 3130, 2025 and 2024

(In thousands)

Filing Compare · UNITED BANCORP INC /OH/