UNITED BANCORP INC OH

Sources of Funds**–**** Deposits**

The Company’s primary source of funds is retail core deposits from individuals and business customers. These demand,savings and time deposits. Total deposits decreased $28.5 million, or 4.4%, from $649.9 million at December 31, 2022 to $621.4 million at December 31, 2023. Overall the total deposit decrease was mainly focused on non-interest and interest bearing demand and deposit accounts and savings accounts.

On average, the Company has a strong deposit base from public agencies, including local school districts, city and township municipalities, public works facilities and others, which may tend to be more seasonal in nature resulting from the receipt and disbursement of state and federal grants. These entities have maintained relatively stable balances with the Company due to various funding and disbursement timeframes.

Sources of Funds– Securities Sold Under Agreements to Repurchase and Other Borrowed Funds Other interestbearing liabilities include securities sold under agreements to repurchase, and Federal Home Loan Bank (“FHLB”) advances Securities sold under agreements to repurchase increased approximately $8.7 million from December 31, 2022 to December 31, 2023. Securities sold under agreements to repurchase totaled $26.8 million and $18.1 million at December 31, 2023 and 2022, respectively. At December 31, 2023, advances from the Federal Home Loan Bank were $75 million. The Company did not have any advances from the Federal Home Loan Bank at December 31, 2022. At December 31, 2023, required annual payments on Federal Home Loan Bank advances were for years ending December 31, 2026 $20 million (4.39% fixed rate), December 31, 2027 $35 million (4.24% fixed rate) and December 31, 2028 $20 million (4.11% fixed rate).

On May 14, 2019 the Company issued $20,000,000 of junior subordinated debentures in denominations of not less than $250,000. The debentures bear interest at a fixed rate of 6.0% until May 2024, which then becomes a floating interest rate equal to the three-month SOFR plus 3.625%, resetting quarterly. Interest on the subordinated notes will be payable semiannually through May 2024 and quarterly thereafter through the maturity date of May 2029. Principal is due upon maturity. The debentures are unsecured and payable to various investors. For purposes of computing regulatory capital, the debentures are included in Tier 2 Capital. The subordinated notes may not be repaid in whole or in part prior to the fifth anniversary of the issue date (May 2019).