UNITED BANCORP INC /OH/

Previous wording

The following discusses the consolidated financial condition of the Company as of March 31, 2025, as compared to December 31, 2024, and the results of consolidated operations for the three months ended March 31, 2025, compared to the same period in 2024. This discussion should be read in conjunction with the interim condensed consolidated financial statements and related footnotes included herein.

Current wording

The following discusses the consolidated financial condition of the Company as of June 30, 2025, as compared to December 31, 2024, and the results of consolidated operations for the three and six months ended June 30, 2025, compared to the same period in 2024. This discussion should be read in conjunction with the interim condensed consolidated financial statements and related footnotes included herein.

Previous wording

We are pleased to report on the earnings performance of United Bancorp, Inc. (UBCP) for the first quarter ended March 31, 2025. For the quarter, our Company achieved solid net income and diluted earnings per share results of $1,872,000 and $0.32. Although these earning metrics are respective decreases of $121,000, or 6.1%, and $0.03, or 8.6%, over the results achieved during the first quarter of last year, they are each respectively higher on a linked-quarter basis by $23,000 and $0.01. As we have previously disclosed, last year’s first quarter financial performance results included non-recurring items that added approximately $271,000 to net income and $0.05 to diluted earnings per share. In this year’s first quarter, our Company did have a net realized gain on the sale of available for sale securities, which added approximately $113,000 to net income and $0.02 to our diluted earnings per share. Netting these one-time, nonrecurring items out of our reported diluted earnings per share for both years results in “core” diluted earnings per share for each of these periods of $0.30. Considering, over the course of the past twelve months, we have undertaken several transformative projects that that have added to our noninterest expense levels, such as: the construction of our new Wheeling Banking Center, the development and scaling out of both Unified Mortgage and our Treasury Management Programs, the investment in new technology and digital transformation and the acquisition of a property in St. Clairsville, Ohio that will become our Unified Center which will house our Accounting, Information Technology and Customer Sales and Service Functions we are very happy with the present performance of our Company. With our unwavering focus on growing our Company through our investment in infrastructure, product development and delivery, we strongly believe that these current undertakings which are dilutive to current financial performance will provide a pathway to future growth and lead to increasingly higher performance over the course of the next twelve to twenty-four months, and help us to maintain our overall relevance for many years to come.

Current wording

We are happy to report on the increased earnings for the second quarter ended June 30, 2025 and, the overall solid performance achieved by United Bancorp, Inc. (UBCP) for the first six months of 2025. For the quarter, our Company produced net income and diluted earnings per share of $1,914,000 and $0.33, which are respective increases of $175,000 and $0.03, or 10.0% for each, over the results achieved for the second quarter of the previous year. In addition, and on a linked-quarter basis, our Company’s net income and diluted earnings per share results also respectively increased by $43,000, or 2.3%, and $0.01 or 3.1%. For the first six months of 2025, UBCP produced net income of $3,786,000, an increase of $54,000, or 1.4%, over the previous year and diluted earnings per share of $0.65, which matched the level achieved the previous year. Considering, over the course of the past twelve months, we have undertaken several transformative projects that have added to our noninterest expense levels, such as: the construction of our new Wheeling Banking Center, the development and scaling out of both Unified Mortgage and our Treasury Management Programs, the investment in new technology and digital transformation and the acquisition of a property in St. Clairsville, Ohio that will become our Unified Center--- which will house our Accounting, Information Technology and Customer Sales and Service Functions--- we are very happy with the present performance of our Company. With our unwavering focus on growing our Company through our investment in infrastructure, product development and delivery, we strongly believe that these current undertakings, which are dilutive to current financial performance, will provide a pathway to future growth and lead to increasingly higher performance over the course of the next twelve to twenty-four months, and help us to maintain our overall relevance for many years to come.

Previous wording

As we all know, the economic environment in which we are operating is posing challenges for all businesses with the present high degree of uncertainty that permeates our national and world economies as a result of the tariffs that were announced under the new administration and which are in the process of being enacted. This new trade policy coupled with a potentially slowing economic output and lingering inflation has led many of us to question the future direction of our economy and what impact it will have on the businesses that operate therein, including our Company. Even though we have dealt with changing fiscal and monetary policy over the course of the past couple of years, this new economic reality relating to trade policy has only recently been cast upon us. Thus far, our Company has responded in a positive fashion to this new economic uncertainty with which we have been confronted on both a year-over-year and linked-quarter basis. Year-over-year, as of the most recently ended quarter, the net interest income that our Company realized increased by $131,000, or 2.2%, and our net interest margin improved by fourteen (14) basis points to 3.60% from 3.46% the previous year. Even though our Company’s total assets declined during this same time period by $3.3 million, or 0.40%, to a level of $830.7 million as of March 31, 2025, we were able to improve the level of net interest income earned by both increasing our gross loans outstanding by $16.6 million, or 3.5%, and having our loan portfolio continuing to reprice in a higher-rate environment. Accordingly, our total interest income increased year-over-year during the first quarter by $221,000 or 2.3%. Even though we continue to operate in a higher than previously anticipated interest rate environment on which we benefitted on the asset-side of the balance sheet, we were able to manage the liability-side of our balance sheet by selectively pricing our retail deposit offerings to manage our liquidity needs and control our overall interest expense levels. As of March 31, 2025, our total deposits decreased by ($1.7 million), or (0.27%), and our interest expense to average assets marginally increased by four (4) basis points, to 1.75%, year-over-year. In addition, on a linked quarter basis as of March 31, 2025, our Company experienced a decline in its interest expense to average assets of three (3) basis points from 1.78% the previous quarter and an increase in its net interest margin of nine (9) basis points, increasing from its previous quarter level of 3.51%. We are optimistic that this trend will continue into the coming quarters of the current year; especially, if the Federal Open Market Committee (FOMC) of the Federal Reserve gains more clarity on the direction of our economy and reduces their target for the Federal Funds Rate (FFR) in the coming months as the markets presently forecast.

Current wording

As we all know, the economic environment in which we are operating is posing challenges for all businesses with the present high degree of uncertainty that permeates our national and world economies as a result of the tariffs that were announced earlier this year under the new administration and which are in the process of being enacted. This new trade policy, coupled with a potentially slowing economic output and lingering inflation, has led many of us to question the future direction of our economy and what impact it will have on the businesses that operate therein, including our Company. Even though we have dealt with changing fiscal and monetary policy over the course of the past couple of years, this new economic reality relating to trade policy has only recently been cast upon us. Thus far, our Company has responded in a positive fashion to this new economic uncertainty with which we have been confronted on both a year-to-date and year-over-year basis. For the first six months of 2025 compared to the same six- month period the previous year, the net interest income that our Company realized increased by $526,000, or 4.3%, and our net interest margin improved by eleven (11) basis points to 3.65% from 3.54%. Of note, on a year-over-year basis for the most recently ended quarter, our Company’s net interest income increased by $394,000, or 6.4%. We are optimistic that we can continue this current increasing and expansionary trend for both our total interest income and net interest margin for the remainder of this year. Primarily driving the growth in our net interest income and our margin expansion is the growth that our Company achieved in its total assets, increasing on a year-over-year basis by $26.0 million, or 3.2%, to a level of $847.9 million as of June 30, 2025. This growth in total assets was comprised of gross loans increasing by $16.2 million, or 3.4%, to a level of $500.7 million and cash and due from the Federal Reserve Bank increasing by $12.1 million, or 32.3%, to a level of $49.7 million as of the most recently ended quarter. Excitedly, for the first time in our Company’s history, our gross loans exceeded a threshold of a half-billion dollars! With our present liquidity levels at the Federal Reserve, we will have a keen focus on continuing to grow this higher-yielding asset category as we progress into this year. This anticipated growth in our Company’s gross loans, along with the continued repricing of our loan portfolio in a higher-rate environment, should contribute to our Company continuing to generate higher levels of interest income on loans and loan related fees, which should positively contribute to the aforementioned projection of higher levels of net interest income being realized for the remainder of the year. Looking at the interest expense side of the net interest margin, our Company’s total interest expense did respectively increase on both a year-to-date and year-over-year basis for the most recently ended quarter…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

Even with many of our borrowers experiencing rate resets to levels that may be double their previous rates on their loans in this higher-rate environment and with the economic uncertainty that continues, we have successfully maintained credit-related strength and stability within our loan portfolio. As of March 31, 2025, our Company’s total nonaccrual loans and loans past due 30 plus days were $2.8 million, or 0.57% of gross loans, which is up from last year by $1.4 million. Year-over-year, our loans past due thirty plus days actually decreased by ($50,000) or (5.2%). But, our nonaccrual loans increased by $1.5 million with a majority of this being attributed to one commercial relationship on which we are very well secured and the loss given default is extremely low. As of the end of the most recently completed quarter, our Company’s nonperforming assets to total assets was 0.68%, an increase of seventeen (17) basis points from the previous year’s level of 0.51%. These reported levels continue to be well-below historic levels and compare very favorably to peer. Further highlighting the overall strength of our loan portfolio, our Company had net loans charged off (excluding overdrafts) of ($3,000) for the first quarter of this year, which annualized is (0.02%) of average loans and is down from the previous year. Considering some of the economic uncertainty and macroeconomic trends in the current year along with the growth in our gross loans our Company had a provision for credit loss expense of $96,000 for the most recently ended quarter after not having a provision for credit loss expense for the same period the previous year. With the increased provision for credit losses this year and continued solid credit quality-related metrics as of quarter-end, our Company had a total allowance for credit losses to total loans of 0.82%, which is a one (1) basis point increase over the previous year, and our total allowance for credit losses to nonaccrual loans was 211% as of March 31, 2025. Overall, we firmly believe that we are presently well reserved with strong coverage. Also, our Company remains very well capitalized by regulatory standards with an equity to assets at period end of 7.32% as of the end of the first quarter of this year.

Current wording

Even with many of our borrowers experiencing rate resets to levels that may be double their previous rates on their loans in this higher-rate environment and with the economic uncertainty that continues, we have successfully maintained credit-related strength and stability within our loan portfolio. As of June 30, 2025, our Company’s total nonaccrual loans and loans past due 30 plus days were $2.2 million, or 0.45% of gross loans, which is up from last year by $1.1 million; but, down on a linked-quarter basis by $598,000 from a level of $2.8 million. Year-over-year, our loans past due thirty plus days actually decreased by ($340,000) or (43.3%). But, our nonaccrual loans increased by $1.4 million with a majority of this being attributed to one commercial relationship. As of the end of the most recently completed quarter, our Company’s nonperforming assets to total assets was 0.60%, an increase of fourteen (14) basis points from the previous year’s level of 0.46%; but, lower on a linked-quarter basis by eight (8) basis points. These reported levels continue to be well-below historic levels and compare very favorably to peer. Further highlighting the overall strength of our loan portfolio, our Company had net loans charged off (excluding overdrafts) of ($122,000) for the first six months of this year, which annualized is (0.07%) of average loans and is in-line with the previous year. Considering some of the economic uncertainty and macroeconomic trends in the current year, along with the growth in our gross loans, our Company had a provision for credit loss expense of $302,000 year-to-date for the quarter ended June 30, 2025, which is an increase of $68,000 year-over-year and led to a decrease in our Company’s diluted earnings per share of ($0.03) in the current year. Even considering our growing gross loans, with the increased provision for credit losses this year and continued solid credit quality-related metrics as of the most recently ended quarter, our Company had a total allowance for credit losses to total loans of 0.83%, which is a one (1) basis point increase over the previous year, and our total allowance for credit losses to nonaccrual loans was 231% as of June 30, 2025. Overall, we firmly believe that we are presently well reserved with strong coverage. Also, our Company remains very well capitalized by regulatory standards with regulatory capital (stockholders’ equity plus accumulated other comprehensive loss (AOCI)) of $74.1 million, or 8.9%, of average assets as of June 30, 2025.

Previous wording

Although we have encountered many economic and policy-related challenges in recent years that commenced with the world-wide pandemic (ie: zero interest rate policy, excessive stimulus funding, extreme inflation and historically aggressive tightening of monetary policy), in a lot of ways the current economic challenges relating to the newly implemented trade policy of our country has created a level of uncertainty that, arguably, exceeds any other that occurred in recent years. Our Company, like most others, is keenly focused on what is presently occurring and will be ready to respond in an appropriate fashion as things develop more fully and we gain more clarity on the evolving situation. Even though we continue to operate in an environment emanating a heightened level of uncertainty, United Bancorp, Inc. (UBCP) is performing in an admirable fashion at present. In recent months, our Company has benefitted from the new direction of our country’s monetary policy as the Federal Open Market Committee of the Federal Reserve (FOMC) has loosened this policy, somewhat, by lowering the target for the Federal Funds Rate (FFR) by one hundred (100) basis points since their September 18, 2024 meeting. This most recent moderating action taken by the FOMC has taken some of the pressure off of our net interest margin and has enabled our Company to generate higher levels of net interest income and experience an increase in its net interest margin for the first time in many quarters. These are positive trends that we anticipate continuing in the coming quarters of the current year for our Company. Even with all of the present uncertainty within both the national and global economies, we are happy to see the growth trends that we have seen over the course of the past two quarters in our gross loans and the current quality of the credit metrics of our loan portfolio that remain relatively stable and low by historic standards. With the stronger demand for our loan products that we are currently experiencing especially, in the relationship-driven, small-business oriented commercial portfolio, which accounts for approximately eighty percent (80%) of our total loans we can begin to focus on attracting more deposits to fund this increased loan demand and, once again, begin growing our Company and working toward achieving our goal of growing our total assets to a level of $1.0 billion or greater!

Current wording

Considering that the uncertainty relating to our country’s present economic outlook remains elevated due to our current administrations recently implemented trade policy, coupled with the arguably overly restrictive monetary policy position of the Federal Open Market Committee’s (FOMC) under which we presently operate, our Company has performed in an admirable fashion over the course of the first six months of 2025. We are happy to see the growth trends that we have experienced during the first two quarters of the current year in both our total deposits and gross loans and the current quality of the credit related metrics of our loan portfolio that remain relatively stable and low by historic standards. With the stronger demand for our loan products that we are currently experiencing, especially, in the relationship-driven, small-business oriented commercial portfolio, which accounts for approximately eighty percent (80%) of our total loans, we can continue our focus of attracting more deposits to fund this increased loan demand that we continued to see over the course of the most recently ended quarter and, once again, begin growing our Company and working toward achieving our goal of growing our total assets to a level of $1.0 billion or greater. As we invest in the infrastructure of our Company, we have a lot of positive operating leverage and scale is definitely our friend. This anticipated growth that we envision should lead to increasing revenue generation and profitability in future periods.

Previous wording

Under it’s guiding principles and vision, United Bancorp, Inc. (UBCP) has had a growth-centric goal to grow its asset-base to a level of $1.0 billion (and, beyond) for the past several years. With all of the economic uncertainty and challenges within the past few years with which we have been confronted, our Company adopted a more defensive posture which sacrificed growth for the sake of maintaining sound performance with a more conservative balance sheet management approach. Beginning in 2024, we began to adopt a more offensive-oriented posture with a focus, once again, on driving the growth of the balance sheet of our Company, which we believe will lead to higher levels of earnings and profitability and ensure our long-term relevance. Several new initiatives (some of which we have previously announced and have already undertaken or begun) are key to driving this envisioned growth. A major initiative that our Company has undertaken as we put our proverbial “foot on the accelerator” to achieve our envisioned growth objective is the development and construction of a new regional banking center in the desirable market of Wheeling, West Virginia. We are excited with the progress that has been made on this highly-promising banking center, which is tentatively scheduled to open in the late third quarter of this year. Even though this banking center has not yet opened, some of the recent growth within our loan portfolio is directly attributed to this office through the efforts of our business development team that we already have in place. We firmly believe that within five years, this new banking center will be a top performer for UBCP! Another exciting initiative that we have undertaken and more fully developed over the course of the past year is our new Unified Mortgage Division. Last year, this new division helped our Company

Current wording

Under it’s guiding principles and vision, UBCP has had a goal to grow its asset-base to a level of $1.0 billion (and, beyond) for the past several years. With all of the economic uncertainty and challenges within the past few years with which we have been confronted, our Company adopted a more defensive posture, which sacrificed growth for the sake of maintaining sound performance with a more conservative balance sheet management approach. Beginning in 2024, we began to adopt a more offensive-oriented posture with a focus, once again, on driving the growth of the balance sheet of our Company, which we believe will lead to higher levels of earnings and profitability and ensure our long-term relevance. Several new initiatives (some of which we have previously announced and have already undertaken or begun) are key to driving this envisioned growth. A major initiative that our Company has undertaken, as we put our proverbial “foot on the accelerator” to achieve our envisioned growth objective, is the development and construction of a new regional banking center in the desirable market of Wheeling, West Virginia. We are excited with the progress that has been made on this highly-promising banking center, which is scheduled to open within the next ninety (90) days. Even though this banking center has not yet opened, some of the recent growth within our loan portfolio is directly attributed to this office through the efforts of our business development team that we already have in place. We firmly believe that within five years, this new banking center will be a top performer for UBCP. Another exciting initiative that we have undertaken and more fully developed over the course of the past year is our new Unified Mortgage Division. Last year, this new division helped our Company produce higher levels of fee income and we believe that as we scale this function more fully, it will only become more lucrative for us. We have also become more focused on developing our Treasury Management function, which focusses on helping our small business customers with cash management, merchant services and payments. Not only does this developing department within our Company help generate higher levels of fee income, it also is key to

Previous wording

produce higher levels of fee income and we believe that as we scale this function more fully, it will only become more lucrative for us. We have also become more focused on developing our Treasury Management function, which focusses on helping our small business customers with cash management, merchant services and payments. Not only does this developing department within our Company help generate higher levels of fee income, it also is key to helping us grow our no or low-cost deposit base both of which lead to increased profitability. Also, over the course of the past year, UBCP has made a tremendous investment in the area of technology as we focus on digital transformation and omni-channel delivery, which will ensure that we meet the changing needs of our customer base and attract new customers to our Company. We are also in the process of implementing artificial intelligence (AI), which will help us better serve our customers by more effectively and efficiently answering customer inquiries on their terms and guide them to the best financial solutions to meet their current and changing needs. Lastly, we acquired a property in St. Clairsville, Ohio that will house the Accounting, Technology and Customer Support functions for our Company, which will be known as the Unified Center. As UBCP has grown and evolved over the course of the past several years (and, as we continue to do so), we have had a need for a facility such as this. We are most excited about the Customer Support function that we are developing at the Unified Center, which will centralize the service function of our Company with team members that are highly skilled and more capable of providing a more “Unified Experience” to our valued customers. In addition, it will have a sales-oriented function, which is anticipated to lead to additional business for our Company (with the help of our AI-solution) by routing inbound inquiries from any banking channel to a skilled sales professional. This process will focus on the development and expansion of relationships through more effective on-boarding practices and the cross-selling of additional products and services to our existing and newly prospected customers through this much more efficient and effective channel.

Current wording

helping us grow our no or low-cost deposit base, both of which lead to increased profitability. Also, over the course of the past year, UBCP has made a tremendous investment in the area of technology as we focus on digital transformation and omni-channel delivery, which will ensure that we meet the changing needs of our customer base and attract new customers to our Company. We are also in the process of implementing artificial intelligence (AI), which will help us better serve our customers by more effectively and efficiently answering customer inquiries on their terms and guide them to the best financial solutions to meet their current and changing needs. Lastly, we acquired a property in St. Clairsville, Ohio that will house the Accounting, Technology and Customer Support functions for our Company, which will be known as the Unified Center. As UBCP has grown and evolved over the course of the past several years (and, as we continue to do so), we have had a need for a facility such as this. I am most excited about the Customer Support function that we are developing at the Unified Center, which will centralize the service function of our Company with team members that are highly skilled and more capable of providing a more “Unified Experience” to our valued customers. In addition, it will have a sales-oriented function, which is anticipated to lead to additional business for our Company (with the help of our AI-solution) by routing inbound inquiries from any banking channel to a skilled sales professional. This process will focus on the development and expansion of relationships through more effective on-boarding practices and the cross-selling of additional products and services to our existing and newly prospected customers through this much more efficient and effective delivery channel. The renovation of the Unified Center should be completed by year-end and will be ready for our occupancy and the launch of our new and exciting customer-centric solutions in the first quarter of next year.

Previous wording

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 the first quarter of this year, we, once again, paid both our regular cash dividend, which increased by $0.0025 to a level of $0.1825, and a special cash dividend of $0.1750, an increase of $0.025 over the previous year for a total payout of $0.3575 for the quarter. This is a $0.035, or 10.9%, increase over the total cash dividend paid in the first quarter of the previous year and produces a near-industry leading total dividend yield of 6.7%. This total dividend yield is based on our first quarter cash dividend on a forward basis, plus the special dividend (which combined total $0.9050) and our quarter-end fair market value of $13.42. On a year-over-year basis as of March 31, 2025, the fair market value of our Company’s stock declined slightly from the previous year and our Company’s market price to book value was 132%, which compares favorably to current industry standards.

Current wording

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 the first half of the current year, we, once again, paid both our regular cash dividend and a special dividend to our valued shareholders. With these payouts, the regular cash dividend increased by $0.02 from the previous year to a level of $0.3675, an increase of 5.8%. The special cash dividend paid out in the first quarter of this year was $0.1750, which was an increase of $0.025, or 16.7%, over the payout the previous year. In the current year, UBCP has paid total cash dividends to its shareholders in the amount of $0.5425, an increase of $0.045, or 9.1%, over the amount paid in the first six months of 2024, which produces a near-industry leading total dividend yield of 6.3%. This total dividend yield is based on our second quarter cash dividend on a forward basis, plus the special dividend (which combined total $0.9150) and our quarter-end fair market value of $14.50. On a year-over-year basis as of June 30, 2025, the fair market value of our Company’s stock favorably increased by $1.95, or 15.5%, and our market price to tangible book value was 147%, which compares favorably to current industry standards.

Previous wording

Considering that we continue to operate in a challenging and uncertain economic and a highly competitive industry-related environment, we are very pleased with our current performance and future prospects. Even with these present threats to which we are exposed, we are very optimistic about the future growth and earnings potential for United Bancorp, Inc. (UBCP). We firmly believe that with the challenges 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 overall costs. We have and continue to invest in areas that will lead to our continued and future relevancy within our industry. Although such initiatives can stress the short-term performance of our Company, we firmly believe that the will help us fulfil our intermediate and longer-term goals and produce above industry 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.

Current wording

Considering that we continue to operate in a challenging and uncertain economic and a highly competitive industry-related environment, we are very pleased with our current performance and future prospects. Even with these present threats to which we are exposed, we are very optimistic about the future growth and earnings potential for UBCP. We firmly believe that with the challenges 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 overall costs. We have and continue to invest in areas that will lead to our continued and future relevancy within our industry. Although such initiatives can stress the short-term performance of our Company, we firmly believe that the will help us fulfill our intermediate and longer-term goals and produce above industry 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.

Previous wording

The Company’s focus as a community bank is to meet the credit needs of the markets it serves. At March 31, 2025, gross loans were $496.9 million, compared to $491.0 million at December 31, 2024, an increase of $5.9 million after offsetting repayments for the period. The overall increase in the loan portfolio was comprised of a $5.6 million increase in commercial and commercial real estate loans and a $972,000 increase in real estate lending and a $673,000 million decrease in installment loans since December 31, 2024.

Current wording

The Company’s focus as a community bank is to meet the credit needs of the markets it serves. At June 30, 2025, gross loans were $500.7 million, compared to $491.0 million at December 31, 2024, an increase of $9.8 million after offsetting repayments for the period. The overall increase in the loan portfolio was comprised of a $10.7 million increase in commercial and commercial real estate loans and a $161,000 increase in real estate lending and a $1.1 million decrease in installment loans since December 31, 2024.

Previous wording

Commercial and commercial real estate loans comprised 79.7% of total loans at March 31, 2025, compared to 79.5% at December 31, 2024. Commercial and commercial real estate loans have increased $5.6 million, or approximately 1.4% since December 31, 2024. This segment of the loan portfolio includes originated loans in its market areas and purchased participations in loans from other banks for out-of-area commercial and commercial real estate loans to benefit from consistent economic growth outside the Company’s primary market area.

Current wording

Commercial and commercial real estate loans comprised 80.1% of total loans at June 30, 2025, compared to 79.5% at December 31, 2024. Commercial and commercial real estate loans have increased $10.7 million, or approximately 2.7% since December 31, 2024. This segment of the loan portfolio includes originated loans in its market areas and purchased participations in loans from other banks for out-of-area commercial and commercial real estate loans to benefit from consistent economic growth outside the Company’s primary market area.

Previous wording

Consumer loans represented 1.6% of total loans at March 31, 2025 and 1.8% at December 31, 2024. Some of the consumer loans carry somewhat more risk than real estate lending; however, it also provides for higher yields. Consumer loans have decreased $673,000, or 7.68%, since December 31, 2024. The targeted lending areas encompass four separate metropolitan areas, minimizing the risk to changes in economic conditions in the communities housing the Company’s banking locations.

Current wording

Consumer loans represented 1.5% of total loans at June 30, 2025 and 1.8% at December 31, 2024. Some of the consumer loans carry somewhat more risk than real estate lending; however, it also provides for higher yields. Consumer loans have decreased $1.1 million, or 12.5%, since December 31, 2024. The targeted lending areas encompass four separate metropolitan areas, minimizing the risk to changes in economic conditions in the communities housing the Company’s banking locations.

Previous wording

Residential real estate loans were 18.8% of total loans at March 31, 2025 and 18.7% at December 31, 2024, representing an increase of $972,000, or 1.06% since December 31, 2024. At March 31, 2025, the Company did not hold any loans for sale.

Current wording

Residential real estate loans were 18.4% of total loans at June 30, 2025 and 18.7% at December 31, 2024, representing an increase of $161,000, or less than 1.0% since December 31, 2024. At June 30, 2025, the Company did not hold any loans for sale.

Previous wording

As of March 31, 2025, the Company considered its concentration of credit risk to be acceptable. The highest concentrations are in 1 st Lien 1-4 Family with $132.2 million of loans outstanding, or 26.6% of total loan outstanding at March 31, 2025, and Commercial and Industrial with loans outstanding of $96.7 million of 19.5% of loans outstanding. The following table presents additional detail regarding the Company’s largest loan concentration as of March 31, 2025 and December 31, 2024.

Current wording

As of June 30, 2025, the Company considered its concentration of credit risk to be acceptable. The following table presents additional detail regarding the Company’s largest loan concentration as of June 30, 2025 and December 31, 2024.

Previous wording

The allowance for credit losses totaled $4.1 million at March 31, 2025, which represented 0.82% of total loans. The allowance represents the amount which management and the Board of Directors estimates is adequate to provide for probable losses inherent in the loan portfolio. The allowance balance and the provision charged to expense are reviewed by management and the Board of Directors monthly using a risk evaluation model that considers borrowers’ past due experience, economic conditions and various other circumstances that are subject to change over time. Management believes the current balance of the allowance for credit losses is adequate to absorb credit losses over the life of the loan portfolio. Net loan (recoveries) charge-offs (exclusive of overdrafts net charge-offs of $24,000) for the three months ended March 31, 2025 were approximately $3,000. Net loans charged off (exclusive of overdrafts net charge-offs $20,000) was $28,000 for the three months ended March 31, 2024.

Current wording

The allowance for credit losses totaled $4.2 million at June 30, 2025, which represented 0.83% of total loans. The allowance represents the amount which management and the Board of Directors estimates is adequate to provide for probable losses inherent in the loan portfolio. The allowance balance and the provision charged to expense are reviewed by management and the Board of Directors monthly using a risk evaluation model that considers borrowers’ past due experience, economic conditions and various other circumstances that are subject to change over time. Management believes the current balance of the allowance for credit losses is adequate to absorb credit losses over the life of the loan portfolio. Net loan (recoveries) charge-offs (exclusive of overdrafts net charge-offs of $50,000) for the six months ended June 30, 2025 were approximately $122,000. Net loans charged off (exclusive of overdrafts net charge-offs $46,000) was $117,000 for the six months ended June 30, 2024.

Previous wording

The securities portfolio is comprised of U.S. Government agency-backed securities, tax-exempt obligations of state and political subdivisions and certain other investments. Securities available for sale at March 31, 2025 decreased approximately $10.8 million from December 31, 2024 totals.

Current wording

The securities portfolio is comprised of U.S. Government agency-backed securities, tax-exempt obligations of state and political subdivisions and certain other investments. Securities available for sale at June 30, 2025 decreased approximately $13.9 million from December 31, 2024 totals.

Previous wording

The Company’s primary source of funds is core deposits from retail and business customers. These core deposits include all categories of interest-bearing and noninterest-bearing deposits, excluding certificates of deposit greater than $250,000. For the period ended March 31, 2025, total core deposits (interest and non interest bearing accounts and savings) increased approximately $5.3 million, or 2.9% from December 31, 2024 totals. The Company’s savings accounts decreased $876,000 million or less than 1.0% from December 31, 2024 totals. The Company’s interest-bearing and non-interest bearing demand deposits increased $2.3 million while certificates of deposit under $250,000 increased by $3.8 million.

Current wording

The Company’s primary source of funds is core deposits from retail and business customers. These core deposits include all categories of interest-bearing and noninterest-bearing deposits, excluding certificates of deposit greater than $250,000. For the period ended June 30, 2025, total core deposits (interest and non interest bearing accounts and savings) increased approximately $22.1 million, or 3.8% from December 31, 2024 totals. The Company’s savings accounts decreased $1.4 million or 1.1% from December 31, 2024 totals. The Company’s interest-bearing and non-interest bearing demand deposits increased $6.8 million while certificates of deposit under $250,000 increased by $16.7 million.

Previous wording

Certificates of deposit greater than $250,000 are not considered part of core deposits, and as such, are used to balance rate sensitivity as a tool of funds management. At March 31, 2025, certificates of deposit greater than $250,000 increased $5.3 million or 14.8%, from December 31, 2024 totals.

Current wording

Certificates of deposit greater than $250,000 are not considered part of core deposits, and as such, are used to balance rate sensitivity as a tool of funds management. At June 30, 2025, certificates of deposit greater than $250,000 increased $7.4 million or 20.6%, from December 31, 2024 totals.

Previous wording

Other interest-bearing liabilities include securities sold under agreements to repurchase and Federal Home Loan Bank (“FHLB”) advances. The majority of the Company’s repurchase agreements are with local school districts and city and county governments. The Company’s repurchase agreements increased approximately $7.1 million from December 31, 2024 totals. At March 31, 2025, the Company has $75 million of fixed rate advances that mature over the next 1 to 3 years. Refer to footnote 10 for further information.

Current wording

Other interest-bearing liabilities include securities sold under agreements to repurchase and Federal Home Loan Bank (“FHLB”) advances. The majority of the Company’s repurchase agreements are with local school districts and city and county governments. The Company’s repurchase agreements increased approximately $5.1 million from December 31, 2024 totals. At June 30, 2025, the Company has $75 million of fixed rate advances that mature over the next 1 to 3 years. Refer to footnote 10 for further information.

Previous wording

The reported diluted earnings per share was $0.32 for the quarter ended March 31, 2025 compared to $0.35 for the quarter ended March 31, 2024, a decrease of 8.6%.

Current wording

The reported diluted earnings per share was $0.33 for the quarter ended June 30, 2025 compared to $0.30 for the quarter ended June 30, 2024, an increase of 10.0%.

Previous wording

The provision for federal income taxes (benefits) was ($26,000) for the three months ended March 31, 2025. The Company had an income tax expense of $150,000 for the three months ended March 31, 2024.

Current wording

The provision for federal income taxes (benefits) was $22,000 for the three months ended June 30, 2025. The Company had an income tax benefit of $127,000 for the three months ended June 30, 2024.

Previous wording

The Company saw its noninterest expense increase by $748,000 or 15.5% year-over-year. Our Company was able to successfully apply and be approved for an Employee Retention Credit (ERC) in the first quarter of 2024 in the amount of $1,080,000 net of filing fees.

Current wording

The Company saw its noninterest expense increased by $922,000 or 8.8% year-over-year. The increase is due to additional staffing related to the Fall 2025 opening of our Wheeling Banking Center and normal merit increases and general inflation. Our Company was able to successfully apply and be approved for an Employee Retention Credit (ERC) in the first quarter which helped to offset the general increase due to inflation during the six months ended June 30, 2024.

Previous wording

Internal capital growth, through the retention of earnings, is the primary means of maintaining capital adequacy for the Company. Stockholders’ equity totaled $60.8 million at March 31, 2025, compared to $63.5 million at December 31, 2024, a $2.7 million decrease. Total stockholders’ equity in relation to total assets was 7.32% at March 31, 2025 and 7.77% at December 31, 2024. The Company’s Articles of Incorporation allows for a class of preferred shares with 2,000,000 authorized shares. This enables the Company, at the option of the Board of Directors, to issue series of preferred shares in a manner calculated to take advantage of financing techniques which may provide a lower effective cost of capital to the Company. The amendment also provides greater flexibility to the Board of Directors in structuring the terms of equity securities that may be issued by the Company. Although this preferred stock is a financial tool, it has not been utilized to date.

Current wording

Internal capital growth, through the retention of earnings, is the primary means of maintaining capital adequacy for the Company. Stockholders’ equity totaled $59.7 million at June 30, 2025, compared to $63.5 million at December 31, 2024, a $3.8 million decrease. Total stockholders’ equity in relation to total assets was 7.04% at June 30, 2025 and 7.37% at December 31, 2024. The Company’s Articles of Incorporation allows for a class of preferred shares with 2,000,000 authorized shares. This enables the Company, at the option of the Board of Directors, to issue series of preferred shares in a manner calculated to take advantage of financing techniques which may provide a lower effective cost of capital to the Company. The amendment also provides greater flexibility to the Board of Directors in structuring the terms of equity securities that may be issued by the Company. Although this preferred stock is a financial tool, it has not been utilized to date.