UNITED BANCORP INC /OH/

Liquidity

Liquidity relates primarily to the Company’s ability to fund loan demand, meet deposit customers’ withdrawal requirements and provide for operating expenses. Assets used to satisfy these needs consist of cash and due from banks, federal funds sold and securities available-for-sale. These assets are commonly referred to as liquid assets. Liquid assets were $280.7 million at December 31, 2025, compared to $260.2 million at December 31, 2024. The Company’s residential real estate portfolio can and has been readily used to collateralize borrowings as an additional source of liquidity. Management believes its current liquidity level is sufficient to meet cash requirements. The Cash Flow Statements for the periods presented provide an indication of the Company’s sources and uses of cash as well as an indication of the ability of the Company to maintain an adequate level of liquidity. A discussion of the cash flow statements for 2025 and 2024 follows.

Net cash provided by operating activities totaled $10.5 and $8.4 million for the years ended December 31, 2025 and 2024, respectively. The adjustments to reconcile net income to net cash from operating activities consisted mainly of depreciation and amortization of premises and equipment and intangibles, gain on sales of loans, securities and other assets, the provision for credit losses, net amortization of securities and net changes in other assets and liabilities.

For the year ended December 31, 2025, net cash used in investing activities totaled $4.5 million. For the year ended December 31, 2024 net cash used in investing activities totaled $19.5 million. The changes in net cash from investing activities include loan growth, security and bank owned life insurance purchases, as well as normal maturities, security calls/sales and reinvestments of securities and premises and equipment expenditures.

Net cash provided by financing activities totaled $21.0 million for the year ended December 31, 2025. For the year ended December 31, 2024 net cash used by financing activities totaled $10.1 million. The net cash provided by financing activities in 2025 was primarily attributable to a $27.9 million increase in deposits.

Management feels that it has the capital adequacy, profitability, liquidity and reputation to meet the current and projected financial needs of its customers.