UNITED BANCORP INC /OH/

Once again in 2024, we were able to successfully maintain the credit-related strength and stability within the loan portfolio of United Bancorp, Inc. (UBCP), even with the continued heightened inflation levels and higher interest rates throughout the year, which led to higher operating costs and payment levels--- each of which had the potential to create tighter cash flows for our borrowers. As of December 31, 2024, UBCP’s total nonaccrual loans and loans past due 30 plus days were $1.0 million, or 0.21% of gross loans, which is down from last year by $122,000 or 10.6%. Also, as of year-end, our Company’s nonperforming assets to total assets was a very respectable 0.50%, which is only a three (3) basis point increase from last year. Further highlighting the overall strength of our loan portfolio, UBCP had net loans charged off (excluding overdrafts) of $204,000, which annualized is 0.04% of average loans. Considering some of the economic uncertainty and macroeconomic trends that occurred in 2024, our Company had a provision for credit loss expense of $299,000 for the year (versus a reversal of credit loss expense the previous year), which is an increase of $752,000 year-over-year. For the twelve months ended December 31, 2024, this year-over-year increase in the provision for credit loss expense caused a decrease in our Company’s diluted earnings per share of approximately $0.11. With the increased provision for credit losses this past year and continued solid credit quality-related metrics at year-end, our Company had a total allowance for credit losses to total loans of 0.82% and its total allowance for credit losses to nonaccrual loans was 547% as of December 31, 2024. Overall, we firmly believe that we are presently well reserved with very strong coverage. In addition, our Company remains very well capitalized by industry standards, experiencing a year-over-year increase in its average shareholders’ equity of $11.2 million, or 21.4%, to a level of $63.5 million and equity to assets of 7.8%, which is slightly up year-over-year.

Over the course of 2024, United Bancorp, Inc. (UBCP) continued to keenly focus on controlling its net noninterest margin, while executing on its strategic vision of prudently growing and remaining relevant in a very challenging and competitive environment. Regarding the noninterest income-side of the noninterest margin, some fee generating services and lines of business continued to be under attack by both regulatory and political authorities in 2024, which ultimately put pressure on the level of noninterest income that our Company was able to realize. Accordingly (and, instead of dwelling on this negative reality), UBCP looked to find new alternatives to generate additional levels of both noninterest income and other sources of revenue, such as:

Obviously, these new alternatives that can lead to additional noninterest income and revenue enhancement opportunities for UBCP do have a cost, which already has and will continue to lead to additional expense or overhead for our Company. But, sometimes you have to take one-step back in order to take several-steps forward and that is what we firmly believe we are doing by undertaking these new initiatives. With the revenue challenges that both we and the players within our industry are currently facing, we strongly feel that now is the time for our Company to focus on enhancing and expanding existing lines of business and growing new lines of business… thus, achieving the organic growth that will help lead to the continued and future relevance of UBCP.

As always, our primary focus is protecting the investment of our shareholders in our Company and rewarding them in a balanced fashion by growing their value and paying an attractive cash dividend. In these areas, our shareholders have been nicely rewarded. In 2024, we, once again, paid both our regular cash dividend, which increased by $0.04 to a level of $0.7050, and a special cash dividend of $0.15 for a total payout of $0.8550 this past year, which is an increase of $0.04, or 4.9%, for the year. This total dividend payout level in 2024 produces a near-industry leading total dividend yield of 6.6%. This total dividend yield is based on total dividend paid out this past year and our year-end fair market value of $13.00. On a year-over-year basis as of December 31, 2024, the fair market value of our Company’s stock was up $0.16, or 1.25%, from the prior year and our Company’s market price to tangible book value was 122%, which compares favorably to our peer group.

On occasion, United Bancorp, Inc. (UBCP) experiences a milestone event that is worthy of recognition. This past year, our Company experienced such an event, which was the retirement of our long-term Director, Richard Riesbeck. Richard faithfully served as a director of both our affiliate, Unified Bank, and our Company, UBCP, for more than forty years. Richard joined our bank and corporate-level boards of directors in February, 1984. Over the years, Richard’s wisdom, guidance and strong governance benefited our Company greatly and helped propel us to many new highs and much success throughout his tenure. His leadership, as the Chairman of the Board of Directors of UBCP for the past ten years, will truly be missed. Richard retired from our bank and corporate boards of directors in October of this past year, at which time I succeeded him as Chairman of UBCP. My relationship with Richard spanned many years and under his tutelage; especially, over the course of the past ten years, he greatly inspired my development and prepared me well to fulfil the responsibilities of my new role. It is a rare occurrence when one serves our great Company for as-long-as Richard! On behalf of our employees, management and directors, I thank Richard for his unwavering loyalty to our Company and wish him nothing but the best in his proverbial “Golden Years” ahead. Thank you, Richard!!

Considering that we continue to operate in both a challenging economic and industry-related environment, we are very pleased with our current performance and prospects for profitable growth. Even with the present threats with which our overall industry is exposed, we are very optimistic about the future growth and earnings potential for United Bancorp, Inc. (UBCP). We firmly believe that with the challenges and paradigmatic shift that our industry has experienced over the course of the past few years, our Company has evolved into a more fundamentally sound organization with a focus on evolving and growing in order to achieve greater efficiencies and scales and generate higher levels of revenue--- while prudently managing expenses and controlling global costs. We have and continue to invest in areas that will lead to our continued relevancy within our industry. Although such initiatives can stress the short-term performance of our Company, we firmly believe that they will help us fulfil our intermediate and longer-term goals and produce above industry average earnings and overall performance. As previously mentioned, we still have a vision of growing UBCP to an asset threshold of $1.0 billion, or greater, in the near term in a prudent and profitable fashion. We are truly excited about our Company’s direction and the potential that it brings. With a keen focus on continual process improvement, product development and delivery, we firmly believe the future for our Company is very bright. UBCP is truly blessed to have a “Unified and United” team, management, board of directors and shareholder group. As a successful financial services company, we truly appreciate everyone’s continued support… Together, We Will Accomplish More!

Scott A. Everson

Chairman, President, and Chief Executive Officer

ceo@unitedbancorp.com

February 19, 2025

Certain statements contained herein are not based on historical facts and are “forward-looking statements” within the meaning of Section 21A of the Securities Exchange Act of 1934. Forward-looking statements, which are based on various assumptions (some of which are beyond the Company’s control), may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of these terms. Actual results could differ materially from those set forth in forward-looking statements, due to a variety of factors, including, but not limited to, those related to the economic environment, particularly in the market areas in which the company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset/liability management, changes in the financial and securities markets, including changes with respect to the market value of our financial assets, and the availability of and costs associated with sources of liquidity. The Company undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.