UNITED BANCORP INC /OH/

Net Interest Income

Net interest income, by definition, is the difference between interest income generated on interest-earning assets and the interest expense incurred on interest-bearing liabilities. Various factors contribute to changes in net interest income, including volumes, interest rates and the composition or mix of interest-earning assets in relation to interest-bearing liabilities.

Average interest-earning assets increased $13.5 million in 2024, as compared to 2023 while the associated weighted average yield on these interest-earning assets increased from 5.12% in 2023 to 5.43% for 2024. Average interest bearing liabilities increased $10.9 million in 2024 as compared to 2023, while the associated weighted-average costs on these interest-bearing liabilities increased from 1.84% in 2023 to 2.42% in 2024. Refer to the sections on Asset and Liability Management and Sensitivity to Market Risks and Average Balances, Net Interest Income and Yields Earned and Rates Paid elsewhere herein for further information.

Provision for (Reversal of) Credit Loss Expense - Loans The provision for (reversal of) credit losses is a charge or credit to expense recorded to maintain the related balance sheet allowance for credit losses at an amount considered adequate by Management and the Board of Directors to cover expected future credit losses in the portfolio. In 2024 the Company had a provision for credit loss expense of $299,000 as compared to a $454,000 credit release in 2023. At December 31, 2024, our total non-accrual loans were $736,000 or 0.15% of total loans. This level of non-accrual loans was an increase of $249,000 over the previous year. In addition, other real estate and repossession (OREO) decreased by $15,000 year-over-year. At year-end, nonaccrual loans and OREO to total assets was a very solid 0.50%, along with loans past due 30+ days at $289,000 or 0.06% of total loans.