UNITED BANCORP INC /OH/

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT

For the transition period from ___________ to___________

Commission File Number: 0-16540

UNITED BANCORP, INC.

(Exact name of registrant as specified in its charter)

Ohio		34-1405357
(State or other jurisdiction of		(IRS Employer Identification No.)
incorporation or organization)

201 South Fourth Street, Martins Ferry, Ohio 43935-0010

(Address of principal executive offices)

(740) 633-0445

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, Par Value $1.00	UBCP	NASDAQ Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐		Accelerated filer ☐
Non-accelerated filer ☒
Smaller Reporting Company ☒		Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)

Yes ☐ No ☒

Indicate the number of shares outstanding of the issuer’s classes of common stock as of the latest practicable date: As of August 7, 2026, 5,735,518 shares of the Company’s common stock, $1.00 par value, were issued and outstanding.

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PART I - FINANCIAL INFORMATION

Item 1	Condensed Consolidated Balance Sheets	3

	Condensed Consolidated Statements of Income	4

	Condensed Consolidated Statements of Comprehensive Income (Loss)	5

	Condensed Consolidated Statements of Stockholders’ Equity	6

	Condensed Consolidated Statements of Cash Flows	7

	Notes to Condensed Consolidated Financial Statements	8

Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	34

Item 3	Quantitative and Qualitative Disclosures About Market Risk	41

Item 4	Controls and Procedures	41

PART II - OTHER INFORMATION

Item 1	Legal Proceedings	42

Item 1A	Risk Factors	42

Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	42

Item 3	Defaults Upon Senior Securities	42

Item 4	Mine Safety Disclosures	42

Item 5	Other Information	42

Item 6	Exhibits	43

SIGNATURES		44

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ITEM 1. Financial Statements

United Bancorp, Inc.

Condensed Consolidated Balance Sheets

(In thousands, except share data)


		June 30,			December 31,
		2026			2025
		(Unaudited)
Assets
Cash and due from banks		$	8,363		$	9,381
Interest-bearing demand deposits			37,621			37,147
Cash and cash equivalents			45,984			46,528
Available-for-sale securities, net of allowance for credit losses of $0 at June 30, 2026 and December 31, 2025			241,046			234,204
Loans held for sale			766			—
Loans, net of allowance for credit losses of $4,356 and $4,261 at June 30, 2026 and December 31, 2025, respectively			491,378			487,298
Premises and equipment			36,472			34,095
Federal Home Loan Bank stock			3,287			4,030
Foreclosed assets held for sale, net			2,261			2,540
Goodwill			682			682
Accrued interest receivable			4,233			3,982
Deferred federal income tax			3,406			3,383
Bank-owned life insurance			38,545			30,920
Other assets			9,912			9,783
Total assets		$	877,972		$	857,445
Liabilities and Stockholders’ Equity
Liabilities
Deposits
Demand		$	351,180		$	335,422
Savings			130,764			124,213
Time			205,001			181,731
Total deposits			686,945			641,366
Securities sold under repurchase agreements			29,388			29,403
Subordinated debentures			23,939			23,909
Advances Federal Home Loan Bank			55,000			75,000
Lease liability – finance lease			2,954			2,958
Interest payable and other liabilities			7,658			14,294
Total liabilities			805,884			786,930
Stockholders’ Equity
Preferred stock, no par value, authorized 2,000,000 shares; no shares issued			—			—
Common stock, $1 par value; authorized 10,000,000 shares; issued 6,253,141 shares at June 30, 2026, and 6,213,141 shares at December 31, 2025; outstanding - 5,735,518 and 5,756,852 shares at June 30, 2026 and December 31, 2025, respectively			6,253			6,213
Additional paid-in capital			27,436			27,073
Retained earnings			49,224			48,576
Stock held by deferred compensation plan; 209,126 and 194,971 shares at June 30, 2026 and December 31, 2025, respectively			(2,635)			(2,431)
Accumulated other comprehensive loss			(3,909)			(5,351)
Treasury stock, at cost 308,497 and 261,318 shares at June 30, 2026 and December 31, 2025, respectively			(4,281)			(3,565)
Total stockholders’ equity			72,088			70,515
Total liabilities and stockholders’ equity		$	877,972		$	857,445

See Notes to Condensed Consolidated Financial Statements

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United Bancorp, Inc.

Condensed Consolidated Statements of Income

Three Months and Six Months Ended June 30, 2026 and 2025

(In thousands, except per share data)

(Unaudited)


		Three months ended June 30,						Six months ended June 30,
		2026			2025			2026			2025
Interest and Dividend Income
Loans, including fees		$	7,875		$	7,680		$	15,400		$	15,007
Taxable			234			388			467			775
Non-taxable			2,062			1,858			4,110			3,754
Federal funds sold			286			395			410			533
Dividends on Federal Home Loan Bank stock and other stock			76			90			160			184
Total interest and dividend income			10,533			10,411			20,547			20,253
Interest expense
Deposits			2,260			2,188			4,360			4,203
Borrowings			1,269			1,628			2,672			3,208
Total interest expense			3,529			3,816			7,032			7,411
Net Interest Income			7,004			6,595			13,515			12,842
Credit Loss Expense
Provision for credit loss expense - loans			126			206			156			302
Reversal of credit loss expense - off balance sheet commitments			—			—			—			—
Provision for Credit Loss Expense			126			206			156			302
Net interest income after credit for credit losses			6,878			6,389			13,359			12,540
Noninterest Income
Service charges on deposit accounts			847			801			1,639			1,534
Realized gains on sale of available-for-sale securities			—			—			—			144
Realized gains on sales of loans			231			141			329			225
Earnings on bank-owned life insurance			412			187			837			380
Other income			127			261			237			388
Total noninterest income			1,617			1,390			3,042			2,671
Noninterest expense
Salaries and employee benefits			3,189			2,869			6,193			5,706
Occupancy and Equipment			752			620			1,563			1,250
Professional services			461			508			798			850
Data processing and related electronic services			527			409			1,040			775
FDIC Insurance			99			94			198			188
Insurance			182			159			365			321
Franchise and other taxes			143			127			284			272
Advertising			130			130			261			260
Stationery and office supplies			34			38			66			69
Amortization of intangibles			—			38			—			75
Other expenses			917			851			1,821			1,663
Total noninterest expense			6,434			5,843			12,589			11,429
Income Before Federal Income Taxes			2,061			1,936			3,812			3,782
Provision (Benefit) for Federal Income Taxes			(34)			22			(194)			(4)
Net Income		$	2,095		$	1,914		$	4,006		$	3,786
Basic Earnings Per Share		$	0.36		$	0.33		$	0.69		$	0.65
Diluted Earnings Per Share		$	0.36		$	0.33		$	0.69		$	0.65
Dividends Per Share		$	0.1950		$	0.1850		$	0.5625		$	0.5425

See Notes to Condensed Consolidated Financial Statements

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United Bancorp, Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss)

Three Months and Six Months Ended June 30, 2026 and 2025

(In thousands, except per share data)

(Unaudited)


	Three months ended						Six months ended
	June 30,						June 30,
	2026			2025			2026			2025
Net income	$	2,095		$	1,914		$	4,006		$	3,786
Other comprehensive income (loss), net of tax
Net realized (gain) loss included in net income, net of taxes of $0, $0, $0, $30		—			—			—			(114)
Unrealized holding gain (loss) on available-for-sale securities during the period, net of taxes (benefits) of $1,036, ($521), $383 and ($1,139) for each respective period		3,899			(1,961)			1,442			(4,282)
Other comprehensive income (loss)		3,899			(1,961)			1,442			(4,396)
Comprehensive income (loss)	$	5,994		$	(47)		$	5,448		$	(610)

See Notes to Condensed Consolidated Financial Statements

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United Bancorp, Inc.

Consolidated Statements of Stockholders’ Equity

Three Months Ended June 30, 2026 and 2025

(In thousands except per share data)

(Unaudited)


					Treasury				Accumulated
			Additional		Stock and				Other
	Common		Paid-in		Deferred		Retained		Comprehensive
	Stock		Capital		Compensation		Earnings		Loss		Total
Balance April 1, 2025	$	6,203	$	26,543	$	(5,456)	$	46,046	$	(12,535)	$	60,801
Net income		—		—		—		1,914		—		1,914
Restricted stock issued		—		—		—		—		—		—
Other comprehensive loss		—		—		—		—		(1,961)		(1,961)
Cash dividends - $0.1850 per share		—		—		—		(1,104)		—		(1,104)
Repurchase of common stock		—		—		(80)		—		—		(80)
Deferred compensation plan activity		—		81		(81)		—		—		—
Expense related to share-based compensation plans		—		88		—		—		—		88
Balance, June 30, 2025	$	6,203	$	26,712	$	(5,617)	$	46,856	$	(14,496)	$	59,658
Balance April 1, 2026	$	6,263	$	27,249	$	(6,496)	$	48,291	$	(7,808)	$	67,499
Net income		—		—		—		2,095		—		2,095
Restricted stock issued net		(10)		10		—		—		—		—
Other comprehensive income		—		—		—		—		3,899		3,899
Cash dividends - $0.1950 per share		—		—		—		(1,162)		—		(1,162)
Repurchase of common stock		—		—		(342)		—		—		(342)
Deferred compensation plan activity		—		78		(78)		—		—		—
Expense related to share-based compensation plans		—		99		—		—		—		99
Balance, June 30, 2026	$	6,253	$	27,436	$	(6,916)	$	49,224	$	(3,909)	$	72,088


					Treasury				Accumulated
			Additional		Stock and				Other
	Common		Paid-in		Deferred		Retained		Comprehensive
	Stock		Capital		Compensation		Earnings		Loss		Total
Balance January 1, 2025	$	6,203	$	26,373	$	(5,326)	$	46,307	$	(10,100)	$	63,457
Net income		—		—		—		3,786		—		3,786
Other comprehensive loss		—		—		—		—		(4,396)		(4,396)
Cash dividends - $0.5425 per share		—		—		—		(3,237)		—		(3,237)
Restricted stock issued		—		—		—		—		—		—
Deferred compensation plan activity		—		162		(162)		—		—		—
Repurchase of common stock		—		—		(129)		—		—		(129)
Expense related to share-based compensation plans		—		177		—		—		—		177
Balance, June 30, 2025	$	6,203	$	26,712	$	(5,617)	$	46,856	$	(14,496)	$	59,658
Balance January 1, 2026	$	6,213	$	27,073	$	(5,996)	$	48,576	$	(5,351)	$	70,515
Net income		—		—		—		4,006		—		4,006
Other comprehensive income		—		—		—		—		1,442		1,442
Cash dividends - $0.5625 per share		—		—		—		(3,358)		—		(3,358)
Restricted stock issued (net)		40		(40)		—		—		—		—
Deferred compensation plan activity		—		204		(204)		—		—		—
Repurchase of common stock		—		—		(716)		—		—		(716)
Expense related to share-based compensation plans		—		199		—		—		—		199
Balance, June 30, 2026	$	6,253	$	27,436	$	(6,916)	$	49,224	$	(3,909)	$	72,088

See Notes to Condensed Consolidated Financial Statements

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United Bancorp, Inc.

Condensed Consolidated Statements of Cash Flows

Six Months Ended June 30, 2026 and 2025

(In thousands except per share data)

(Unaudited)


	Six months ended
	June 30,
	2026		2025
Operating Activities
Net income	$	4,006	$	3,786
Items not requiring (providing) cash
Depreciation and amortization		822		576
Amortization of intangible asset		—		75
Premium amortization on securities		194		213
Provision for credit loss expense		156		302
Gain on sale of loans		(329)		(225)
(Gain) loss on sale of available-for-sale securities		—		(144)
Expense related to share based compensation programs		199		177
Increase in value of bank-owned life insurance		(708)		(202)
Originations of loans held for sale		(13,257)		(7,255)
Proceeds from sale of loans held for sale		12,820		7,480
Amortization of debt instrument costs		30		30
Net change in accrued interest receivable and other assets		(1,912)		(448)
Net change in accrued expenses and other liabilities		(719)		480

Net cash provided by operating activities		1,302		4,845

Investing Activities
Purchase of available-for-sale securities		(11,236)		—
Sales of available-for-sale securities		—		7,724
Maturities of available-for-sale securities		110		10
Net change in loans		(3,111)		(9,723)
Purchase of bank-owned life insurance		(6,917)		—
Purchase of Federal Home Loan Bank Stock		—		(4)
Redemption of Federal Home Loan Bank Stock		743		—
Proceeds from sales of foreclosed assets and fixed assets		299		50
Purchases of premises and equipment, net		(3,220)		(3,975)

Net cash used in investing activities		(23,332)		(5,918)

Financing Activities
Net change in deposits		45,579		29,451
Net change in securities sold under repurchase agreements		(15)		5,106
Net change in Federal Home Loan Bank advances		(20,000)		—
Finance lease principal payment		(4)		(40)
Repurchase of common stock		(716)		(129)
Cash dividends paid		(3,358)		(3,237)

Net cash provided by financing activities		21,486		31,151

Increase (Decrease) in Cash and Cash Equivalents		(544)		30,078

Cash and Cash Equivalents, Beginning of Period		46,528		19,608

Cash and Cash Equivalents, End of Period	$	45,984	$	49,686

Supplemental Cash Flows Information
Federal income taxes paid	$	—	$	—
Interest paid on deposits and borrowings	$	7,084	$	13,450

See Notes to Condensed Consolidated Financial Statements

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2026 and 2025

(In thousands)

(Unaudited)

Note 1: Summary of Significant Accounting Policies

These interim financial statements are prepared without audit and reflect all adjustments which, in the opinion of management, are necessary to present fairly the financial position of United Bancorp, Inc. (“Company”) at June 30, 2026, and its results of operations and cash flows for the interim periods presented. All such adjustments are normal and recurring in nature. The accompanying condensed consolidated financial statements have been prepared in accordance with the instructions for Form 10-Q and, therefore, do not purport to contain all the necessary financial disclosures required by accounting principles generally accepted in the United States of America that might otherwise be necessary in the circumstances and should be read in conjunction with the Company’s consolidated financial statements and related notes for the year ended December 31, 2025 included in its Annual Report on Form 10-K. Reference is made to the accounting policies of the Company described in the Notes to the Consolidated Financial Statements contained in its Annual Report on Form 10-K. The results of operations for the three and six months ended June 30, 2026, are not necessarily indicative of the results to be expected for the full year. The condensed consolidated balance sheet of the Company as of December 31, 2025 has been derived from the audited consolidated balance sheet of the Company as of that date.

Principles of Consolidation

The consolidated financial statements include the accounts of United Bancorp, Inc. (“United” or “the Company”) and its wholly-owned subsidiary, Unified Bank of Martins Ferry, Ohio (“the Bank”). All intercompany transactions and balances have been eliminated in consolidation.

Nature of Operations

The Company’s revenues, operating income and assets are almost exclusively derived from banking. Accordingly, all of the Company’s banking operations are considered by management to be aggregated in one reportable operating segment. Customers are mainly located in Athens, Belmont, Carroll, Fairfield, Harrison, Jefferson and Tuscarawas Counties in Ohio and Marshall and Ohio Counties in West Virginia and the surrounding localities in northeastern, east-central and southeastern Ohio and include a wide range of individuals, businesses and other organizations. Unified Bank conducts its business through its main office in Martins Ferry, Ohio and branches in Bridgeport, Colerain, Dellroy, Dover, Glouster, Jewett, Lancaster Downtown, Lancaster East, Nelsonville, New Philadelphia, Powhatan Point, St. Clairsville East, St. Clairsville West, Sherrodsville, Strasburg, Tiltonsville, Ohio, Wheeling and Moundsville West Virginia.

The Company’s primary deposit products are checking, savings and term certificate accounts and its primary lending products are residential real estate, commercial and industrial, commercial real estate and installment loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets and real estate. Commercial and industrial loans are expected to be repaid from cash flow from operations of businesses. Real estate loans are secured by both residential and commercial real estate. Net interest income is affected by the relative amount of interest-earning assets and interest-bearing liabilities and the interest received or paid on these balances. The level of interest rates paid or received by the Company can be significantly influenced by a number of environmental factors, such as governmental monetary and fiscal policies, that are outside of management’s control.

Revenue Recognition

Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied.

The majority of the Company’s revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as loans, investment securities, as well as revenue related to mortgage banking activities, as these activities are subject to other GAAP discussed elsewhere within the Company’s disclosures.

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2026 and 2025

(In thousands)

(Unaudited)

Descriptions of the Company’s revenue-generating activities that are within the scope of ASC 606, which are presented in the income statements as components of non-interest income are as follows:

Service charges on deposit accounts - these represent general service fees for monthly account maintenance and activity- or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when the performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied.

Use of Estimates

To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided and future results could differ. The allowance for credit losses and fair values of financial instruments are particularly subject to change.

Investment Securities

Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such designation as of each balance sheet date.

Investment securities classified as available for sale are those securities that the Company intends to hold for an indefinite period of time but not necessarily to maturity. Securities available for sale are carried at fair value. Any decision to sell a security classified as available for sale would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. Unrealized gains or losses are reported as increases or decreases in other comprehensive income (loss), net of the deferred tax effect. Realized gains or losses, determined on the basis of the cost of the specific securities sold, are included in earnings. Premiums and discounts are recognized in interest income using the interest method over the terms of the securities.

Allowance for Credit Losses – Available for Sale Securities

The Company measures expected credit losses on available-for-sale debt securities when the Company does not intend to sell, or when it is not more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available-for-sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this evaluation indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, equal to the amount that the fair value is less than the amortized cost basis. The Company utilizes independent firms to evaluate the Company’s State and Municipal Obligations and Subordinated Notes to measure any expected credit losses. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income.

The allowance for credit losses on available-for-sale debt securities is included within investment securities available-for-sale on the consolidated balance sheet. Changes in the allowance for credit losses are recorded within provision for credit losses on the consolidated statement of income. Losses are charged against the allowance when the Company believes the collectability of an available-for-sale security is in jeopardy or when either of the criteria regarding intent or requirement to sell is met.

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2026 and 2025

(In thousands)

(Unaudited)

Accrued interest receivable on available-for-sale debt securities totaled $2.9 million at June 30, 2026 and $2.6 million at December 31, 2025 and is included within the line item accrued interest receivable on the consolidated balance sheet. This amount is excluded from the estimate of expected credit losses. Available-for-sale debt securities are typically classified as nonaccrual when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about the further collectability of principal or interest. When available-for-sale debt securities are placed on nonaccrual status, unpaid interest credited to income is reversed.

Loans

Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for credit losses and any deferred fees or costs. Accrued interest receivable totaled $1.3 million at June 30, 2026 and $1.4 million at December 31, 2025 and was reported in the line item accrued interest receivable on the Consolidated Balance Sheets and is excluded from the estimate of credit losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) of the related loans. The Company is amortizing these amounts over the contractual life of the loan. Premiums and discounts on purchased loans are amortized as adjustments to interest income using the effective yield method.

The loans receivable portfolio is segmented into commercial and industrial, which are typically utilized for general business purposes and commercial real estate, which are collateralized by real estate. Homogenouse loans consisting of similar products that are smaller in amount and distributed over a large number of individual borrowers include residential real estate and consumer loans.

For all classes of loans receivable, the accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for credit losses. Interest generally is either applied against principal or reported as interest income on a cash basis, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months), and the ultimate collectability of the total contractual principal and interest is no longer in doubt. The past-due status of all classes of loans receivable is determined based on contractual due dates for loan payments.

Allowance for Credit Losses - Loans

The allowance for credit losses (“ACL”) is a valuation reserve established and maintained by charges against income and is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged off against the ACL when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

The ACL is an estimate of expected credit losses, measured over the contractual life of a loan, that considers our historical loss experience, current conditions and forecasts of future economic conditions. Determination of an appropriate ACL is inherently subjective and may have significant changes from period to period.

The methodology for determining the ACL has two main components: evaluation of expected credit losses for certain groups of homogeneous loans that share similar risk characteristics and evaluation of loans that do not share risk characteristics with other loans.

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2026 and 2025

(In thousands)

(Unaudited)

The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The Company uses the call report classification as its segment breakout and measures the allowance for credit losses using the Weighted Average Remaining Maturity method for all loan segments.

Historical credit loss experience is the basis for the estimation of expected credit losses. We apply historical loss rates to pools of loans with similar risk characteristics. After consideration of the historic loss calculation, management applies qualitative adjustments to reflect the current conditions and reasonable and supportable forecasts not already reflected in the historical loss information at the balance sheet date. Our reasonable and supportable forecast adjustment is based on a 2 year unemployment forecast provided by Bloomberg and management judgment. For periods beyond our reasonable and supportable forecast, we revert back to historical annual loss rates for the remainder of the life of each pool after the forecast period. The qualitative adjustments for current conditions are based upon current level of inflation, changes in lending policies and practices, experience and ability of lending staff, quality of the Company’s loan review system, value of underlying collateral, the existence of and changes in concentrations and other external factors. These modified historical loss rates are multiplied by the outstanding principal balance of each loan to calculate a required reserve.

The Company has elected to exclude accrued interest receivable from the measurement of its ACL. When a loan is placed on non-accrual status, any outstanding accrued interest is reversed against interest income.

The ACL for individual loans begins with the use of normal credit review procedures to identify whether a loan no longer shares similar risk characteristics with other pooled loans and therefore, should be individually assessed. We evaluate all commercial and industrial loans and residential and installment loans greater than $100,000 that meet the following criteria: 1) when it is determined that foreclosure is probable, 2) substandard, doubtful and nonperforming loans when repayment is expected to be provided substantially through the operation or sale of the collateral, 3) when it is determined by management that a loan does not share similar risk characteristics with other loans. Specific reserves are established based on the following three acceptable methods for measuring the ACL: 1) the present value of expected future cash flows discounted at the loan’s original effective interest rate; 2) the loan’s observable market price; or 3) the fair value of the collateral when the loan is collateral dependent. Our individual loan evaluations consist primarily of the fair value of collateral method because most of our loans are collateral dependent. Collateral values are discounted to consider disposition costs when appropriate. A specific reserve is established or a charge-off is taken if the fair value of the loan is less than the loan balance.

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted through credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.

Earnings Per Share

Earnings per share (EPS) were computed as follows:

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2026 and 2025

(In thousands)

(Unaudited)


	Three Months Ended June 30, 2026
				Weighted-		Per
	Net			Average		Share
	Income			Shares		Amount
	(In thousands)
Net income	$	2,095
Less allocated earnings on non-vested restricted stock		(46)
Less allocated dividends on non-vested restricted stock		(60)
Net income allocated to common stockholders		1,989
				5,473,340
Basic and diluted earnings per share						$	0.36


	Three Months Ended June 30, 2025
				Weighted-		Per
	Net			Average		Share
	Income			Shares		Amount
	(In thousands)
Net income	$	1,914
Less allocated earnings on non-vested restricted stock		(36)
Less allocated dividends on non-vested restricted stock		(52)
Net income allocated to common stockholders		1,826
				5,491,322
Basic and diluted earnings per share						$	0.33


	Six Months Ended June 30, 2026
				Weighted-	Per
	Net			Average	Share
	Income			Shares	Amount
	(In thousands)
Net income	$	4,006
Less allocated earnings on non-vested restricted stock		(25)
Less allocated dividends on non-vested restricted stock		(177)
Net income allocated to common stockholders		3,804
				5,489,495
Basic and diluted earnings per share					$	0.69


	Six Months Ended June 30, 2025
				Weighted-		Per
				Average		Share
	Net Income			Shares		Amount
	(In thousands)
Net income	$	3,786
Less allocated earnings on non-vested restricted stock		(19)
Less dividends on non-vested restricted stock		(155)
Net income allocated to common stockholders		3,612
				5,558,504
Basic and diluted earnings per share						$	0.65

Income Taxes

The Company is subject to income taxes in the U.S. federal jurisdiction, as well as various state jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply.

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2026 and 2025

(In thousands)

(Unaudited)

With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for the years before 2022.

Note 2: Securities

The amortized cost and fair values, together with gross unrealized gains and losses of securities are as follows:


				Gross			Gross
				Unrealized			Unrealized
	Amortized Cost			Gains			Losses			Fair Value
Available-for-sale Securities:
June 30, 2026:
U.S. government agencies	$	2,500		$	—		$	(79)		$	2,421
Subordinated notes		22,400			—			(1,043)			21,357
State and municipal obligations		220,910			1,314			(4,956)			217,268
Total debt securities	$	245,810		$	1,314		$	(6,078)		$	241,046


				Gross			Gross
				Unrealized			Unrealized
	Amortized Cost			Gains			Losses		Fair Value

	(In thousands)
Available-for-sale Securities:
December 31, 2025:
U.S. government agencies	$	2,500		$	—		$	(46)	$	2,454
Subordinated notes		22,400			—			(1,491)		20,909
State and municipal obligations		215,893			800			(5,852)		210,841
Total debt securities	$	240,793		$	800		$	(7,389)	$	234,204

There was no allowance for credit losses at June 30, 2026 or December 31, 2025.

The amortized cost and fair value of available-for-sale securities at June 30, 2026, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Amortized		Fair
	Cost		Value

	(In thousands)
Under one year	$	—	$	—
One to five years		3,334		3,281
Five to ten years		41,505		40,375
Over ten years		200,971		197,390
Totals	$	245,810	$	241,046

The carrying value of securities pledged as collateral, to secure public deposits and for other purposes, was $124.4 million and $119.4 million at June 30, 2026 and December 31, 2025, respectively.

Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. The total fair value of these investments at June 30, 2026 was $226.8 million, which represented 94% of the Company’s available-for-sale investment portfolio. The total fair value of these investments at December 31, 2025 was $143.3 million, which represented less than 61% of the Company’s available-for-sale.

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2026 and 2025

(In thousands)

(Unaudited)

Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary and are a result of an increase in longer term interest rates.

The following tables show the Company’s available for sale securities and the related gross unrealized losses and fair value for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2026 and December 31, 2025:


	June 30, 2026
	Less than 12 Months				12 Months or More				Total
Description of			Unrealized				Unrealized				Unrealized
Securities	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses

	(In thousands)
U.S. Government agencies	$	—	$	—	$	2,421	$	(79)	$	2,421	$	(79)
Subordinated notes		2,931		(69)		18,426		(974)		21,357		(1,043)
State and municipal obligations		59,866		(241)		49,517		(4,715)		109,383		(4,956)
Total temporarily impaired securities	$	62,797	$	(310)	$	70,364	$	(5,768)	$	133,161	$	(6,078)


	December 31, 2025
	Less than 12 Months				12 Months or More				Total
Description of			Unrealized				Unrealized				Unrealized
Securities	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses

	(In thousands)
US government agencies	$	—	$	—	$	2,454	$	(46)	$	2,454	$	(46)
Subordinated notes		1,916		(84)		18,993		(1,407)		20,909		(1,491)
State and municipal obligations		15,587		(135)		104,435		(5,717)		120,022		(5,852)
Total temporarily impaired securities	$	17,503	$	(219)	$	125,882	$	(7,170)	$	143,385	$	(7,389)

The unrealized losses on the Company’s 216 investments in available for sale securities were caused primarily by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to require an allowance for credit losses to be recognized as of June 30, 2026 or December 31, 2025.

The Company did not sell any available-for-sale securities for the three and six months ended June 30, 2026. The Company recorded a net gain on the sale of available - for - sale securities of approximately $144,000 for the six months ended June 30, 2025. The Company sold $140,000 in securities for a loss of $2,000 and sold $7.7 million in securities for a gain of $146,000. The Company wanted to rebalance a portion of its security portfolio during the first quarter of 2025. There were no sales of available for sale securities for the three months ended June 30, 2025.

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2026 and 2025

(In thousands)

(Unaudited)

Note 3: Loans and Allowance for Credit Losses

Categories of loans by purpose include:


	June 30,		December 31,
	2026		2025

	(In thousands)
Commercial and industrial loans	$	85,898	$	92,019
Commercial real estate
Commercial real estate - secured by residential mortgages		61,815		62,963
Commercial real estate - other		254,883		240,085
Residential real estate		87,016		89,580
Consumer loans		6,122		6,912
Total gross loans		495,734		491,559
Less allowance for credit losses		(4,356)		(4,261)
Total loans	$	491,378	$	487,298

The risk characteristics of each loan portfolio segment are as follows:

Commercial and Industrial, and Commercial Real Estate

Commercial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and may include a personal guarantee. Short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The characteristics of properties securing the Company’s commercial real estate portfolio are diverse, but with geographic location almost entirely in the Company’s market area. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. In general, the Company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner-occupied commercial real estate versus nonowner-occupied loans.

Residential Real Estate and Consumer

Residential real estate and consumer loans consist of two segments - residential mortgage loans and personal loans. For residential mortgage loans that are secured by 1-4 family residences and are generally owner-occupied, the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and consumer personal loans are secured by consumer personal assets, such as automobiles or recreational vehicles. Some consumer personal loans are unsecured, such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas, such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers.

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2026 and 2025

(In thousands)

(Unaudited)

The following tables present the information regarding the allowance for credit losses for the three and six months ended June 30, 2026 and 2025.


	June 30, 2026
	Commercial and		Commercial
	Industrial		Real Estate		Residential			Installment		Total

	(In thousands)
Allowance for credit losses:

Balance, April 1, 2026	$	555	$	2,696	$	877		$	122	$	4,250
Provision for credit loss exposure		(48)		172		(37)			39		126
Losses charged off		—		—		—			(39)		(39)
Recoveries		11		—		—			8		19
Balance, June 30, 2026	$	518	$	2,868	$	840		$	130	$	4,356
Balance, January 1, 2026	$	544	$	2,571	$	1,034		$	112	$	4,261
Provision for credit loss exposure		(20)		297		(194)			73		156
Losses charged off		(20)		—		—			(68)		(88)
Recoveries		14		—		—			13		27
Balance, June 30, 2026	$	518	$	2,868	$	840		$	130	$	4,356

Allocation:

Ending balance: individually evaluated for credit losses	$	—	$	533	$	—		$	—	$	533
Ending balance: collectively evaluated for credit losses	$	518	$	2,335	$	840		$	130	$	3,823
Loans:
Ending balance: individually evaluated for credit losses	$	273	$	5,790	$	344		$	—	$	6,407
Ending balance: collectively evaluated for credit losses	$	85,625	$	310,908	$	86,672		$	6,122	$	489,327


	June 30, 2025
	Commercial and		Commercial
	Industrial		Real Estate		Residential		Installment		Total

	(In thousands)
Allowance for credit losses:

Balance, April 1, 2025	$	597	$	2,101	$	1,253	$	144	$	4,095
Provision for (reversal of) credit loss exposure		42		124		38		2		206
Losses charged off		(110)		—		(4)		(44)		(158)
Recoveries		2		—		—		11		13
Balance, June 30, 2025	$	531	$	2,225	$	1,287	$	113	$	4,156
Balance, January 1, 2025	$	557	$	2,115	$	1,223	$	131	$	4,026
Provision for (reversal of) credit loss exposure		81		110		68		43		302
Losses charged off		(110)		—		(4)		(78)		(192)
Recoveries		3		—		—		17		20
Balance, June 30, 2025	$	531	$	2,225	$	1,287	$	113	$	4,156

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2026 and 2025

(In thousands)

(Unaudited)

Allowance for Loan Losses and Recorded Investment in Loans

As of December 31, 2025

The following table presents the allowance for credit losses and recorded investment in loans by impairsment type.


	December 31, 2025
	Commercial and		Commercial
	Industrial		Real Estate		Residential		Installment		Total

	(In thousands)
Allowance for credit losses:
Ending balance: individually evaluated for impairment	$	—	$	425	$	—	$	—	$	425
Ending balance: collectively evaluated for impairment	$	544	$	2,146	$	1,034	$	112	$	3,836

Loans:
Ending balance: individually evaluated for impairment	$	312	$	1,385	$	453	$	—	$	2,150
Ending balance: collectively evaluated for impairment	$	91,707	$	301,663	$	89,127	$	6,912	$	489,409

Table of Contents

United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2026 and 2025

(In thousands)

(Unaudited)

The following tables show the portfolio quality indicators.

Based on the most recent analysis performed, the following table presents the recorded investment in non-homogeneous loans by internal risk rating system as of June 30, 2026 (in thousands):


																				Revolving			Revolving
																				Loans			Loans
																				Amortized			Converted
June 30, 2026		2026			2025			2024			2023			2022			Prior			Cost Basis			to Term			Total
Commercial and Industrial
Risk Rating
Pass		$	10,837		$	13,119		$	15,076		$	7,475		$	5,285		$	11,556		$	21,271		$	—		$	84,619
Special Mention			—			—			—			—			—			—			1,006			—			1,006
Substandard			—			—			—			—			26			166			81			—			273
Doubtful			—			—			—			—			—			—			—			—			—
Total		$	10,837		$	13,119		$	15,076		$	7,475		$	5,311		$	11,722		$	22,358		$	—		$	85,898

Commercial and Industrial
Current period gross charge-offs		$	—		$	—		$	—		$	—		$	—		$	20		$	—		$	—		$	20

Commercial real estate
Risk Rating
Pass		$	26,673		$	25,406		$	22,647		$	19,507		$	28,625		$	110,780		$	75,298		$	—		$	308,936
Special Mention			—			—			—			—			—			—			—			—			—
Substandard			—			—			—			—			—			7,762			—			—			7,762
Doubtful			—			—			—			—			—			—			—			—			—
Total		$	26,673		$	25,406		$	22,647		$	19,507		$	28,625		$	118,542		$	75,298		$	—		$	316,698

Commercial real estate
Current period gross charge-offs		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Total
Pass		$	37,510		$	38,525		$	37,723		$	26,982		$	33,910		$	122,336		$	96,569		$	—		$	393,555
Special Mention			—			—			—			—			—			—			1,006			—			1,006
Substandard			—			—			—			—			26			7,928			81			—			8,035
Doubtful			—			—			—			—			—			—			—			—			—
Total		$	37,510		$	38,525		$	37,723		$	26,982		$	33,936		$	130,264		$	97,656		$	—		$	402,596
Current period gross charge-offs		$	—		$	—		$	—		$	—		$	—		$	20		$	—		$	—		$	20

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2026 and 2025

(In thousands)

(Unaudited)

The Company monitors the credit risk profile by payment activity for residential and consumer loan classes. Loans past due 90 days or more and loans on nonaccrual status are considered nonperforming. Nonperforming loans are reviewed quarterly. The following table presents the amortized cost in residential and consumer loans based on payment activity:


																				Revolving			Revolving
																				Loans			Loans
																				Amortized			Converted
June 30, 2026		2026			2025			2024			2023			2022			Prior			Cost Basis			to Term			Total
Residential Real Estate
Payment Performance
Performing		$	3,829		$	8,955		$	7,640		$	8,042		$	13,658		$	44,548		$	—		$	—		$	86,672
Nonperforming			—			246			20			—			—			78			—			—			344
Total		$	3,829		$	9,201		$	7,660		$	8,042		$	13,658		$	44,626		$	—		$	—		$	87,016

Residential real estate
Current period gross charge-offs		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Consumer
Payment Performance
Performing		$	949		$	1,332		$	2,323		$	579		$	281		$	619		$	35		$	—		$	6,118
Nonperforming			—			—			—			—			—			4			—			—			4
Total		$	949		$	1,332		$	2,323		$	579		$	281		$	623		$	35		$	—		$	6,122

Consumer
Current period gross charge-offs		$	66		$	2		$	—		$	—		$	—		$	—		$	—		$	—		$	68

Total
Payment Performance
Performing		$	4,778		$	10,287		$	9,963		$	8,621		$	13,939		$	45,167		$	35		$	—		$	92,790
Nonperforming			—			246			20			—			—			82			—			—			348
Total		$	4,778		$	10,533		$	9,983		$	8,621		$	13,939		$	45,249		$	35		$	—		$	93,138
Current period gross charge-offs		$	66		$	2		$	—		$	—		$	—		$	—		$	—		$	—		$	68

Table of Contents

United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2026 and 2025

(In thousands)

(Unaudited)

The following tables show the portfolio quality indicators.

Based on the most recent analysis performed, the following table presents the recorded investment in non-homogeneous loans by internal risk rating system as of December 31, 2025 (in thousands):


																			Revolving			Revolving
																			Loans			Loans
																			Amortized			Converted
December 31, 2025	2025			2024			2023			2022			2021			Prior			Cost Basis			to Term			Total
Commercial and industrial
Risk Rating
Pass	$	16,029		$	17,946		$	11,518		$	7,127		$	3,815		$	13,946		$	20,293		$	—		$	90,674
Special Mention		—			—			—			—			—			—			1,033			—			1,033
Substandard		—			—			—			26			—			170			116			—			312
Doubtful		—			—			—			—			—			—			—			—			—
Total	$	16,029		$	17,946		$	11,518		$	7,153		$	3,815		$	14,116		$	21,442		$	—		$	92,019

Commercial and industrial
Current period gross charge-offs	$	—		$	—		$	39		$	—		$	—		$	27		$	189		$	—		$	255

Commercial real estate
Risk Rating
Pass	$	22,707		$	19,186		$	28,952		$	29,460		$	39,927		$	85,508		$	65,095		$	—		$	290,835
Special Mention		—			—			—			308			4,198			4,283			—			—			8,789
Substandard		—			—			—			—			368			3,056			—			—			3,424
Doubtful		—			—			—			—			—			—			—			—			—
Total	$	22,707		$	19,186		$	28,952		$	29,768		$	44,493		$	92,847		$	65,095		$	—		$	303,048

Commercial real estate
Current period gross charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Total
Pass	$	38,736		$	37,132		$	40,470		$	36,587		$	43,742		$	99,454		$	85,388		$	—		$	381,509
Special Mention		—			—			—			308			4,198			4,283			1,033			—			9,822
Substandard		—			—			—			26			368			3,226			116			—			3,736
Doubtful		—			—			—			—			—			—			—			—			—
Total	$	38,736		$	37,132		$	40,470		$	36,921		$	48,308		$	106,963		$	86,537		$	—		$	395,067
Current period gross charge-offs	$	—		$	—		$	39		$	—		$	—		$	27		$	189		$	—		$	255

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2026 and 2025

(In thousands)

(Unaudited)


																			Revolving			Revolving
																			Loans			Loans
																			Amortized			Converted
December 31, 2025	2025			2024			2023			2022			2021			Prior			Cost Basis			to Term			Total
Residential Real Estate
Payment Performance
Performing	$	10,113		$	7,972		$	8,730		$	14,302		$	13,348		$	34,556		$	—		$	—		$	89,021
Nonperforming		254			22			—			—			—			283			—			—			559
Total	$	10,367		$	7,994		$	8,730		$	14,302		$	13,348		$	34,839		$	—		$	—		$	89,580

Residential real estate
Current period gross charge-offs	$	—		$	—		$	—		$	—		$	4		$	4		$	—		$	—		$	8

Consumer
Payment Performance
Performing	$	1,858		$	2,968		$	787		$	398		$	202		$	643		$	46		$	—		$	6,902
Nonperforming		—			—			—			—			—			10			—			—			10
Total	$	1,858		$	2,968		$	787		$	398		$	202		$	653		$	46		$	—		$	6,912

Consumer
Current period gross charge-offs	$	136		$	7		$	29		$	2		$	—		$	—		$	—		$	—		$	174

Total
Payment Performance
Performing	$	11,971		$	10,940		$	9,517		$	14,700		$	13,550		$	35,202		$	46		$	—		$	95,926
Nonperforming		254			22			—			—			—			294			—			—			570
Total	$	12,225		$	10,962		$	9,517		$	14,700		$	13,550		$	35,496		$	46		$	—		$	96,496
Current period gross charge-offs	$	136		$	7		$	29		$	2		$	4		$	4		$	—		$	—		$	182

To facilitate the monitoring of credit quality within the loan portfolio, and for purposes of analyzing historical loss rates used in the determination of the allowance for credit losses, the Company utilizes the following categories of credit grades: pass, special mention, substandard, and doubtful. The four categories, which are derived from standard regulatory rating definitions, are assigned upon initial approval of credit to borrowers and updated periodically thereafter. Pass ratings, which are assigned to those borrowers that do not have identified potential or well defined weaknesses and for which there is a high likelihood of orderly repayment, are updated periodically based on the size and credit characteristics of the borrower. All other categories are updated on at least a quarterly basis.

The Company assigns a special mention rating to loans that have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the loan or the Company’s credit position.

The Company assigns a substandard rating to loans that are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged. Substandard loans have well defined weaknesses or weaknesses that could jeopardize the orderly repayment of the debt. Loans and leases in this grade also are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies noted are not addressed and corrected.

The Company assigns a doubtful rating to loans that have all the attributes of a substandard rating with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors that may work to the advantage of and strengthen the credit quality of the loan or lease, its classification as an

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2026 and 2025

(In thousands)

(Unaudited)

estimated loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceeding, capital injection, perfecting liens on additional collateral or refinancing plans.

The Company evaluates the loan risk grading system definitions and allowance for credit losses methodology on an ongoing basis. No significant changes were made to either during the past year to date period.

Loan Portfolio Aging Analysis

As of June 30, 2026


	30-59 Days		60‑89 Days		Greater
	Past Due		Past Due		Than 90 Days				Total Past
	and		and		and				Due and				Total Loans
	Accruing		Accruing		Accruing		Non Accrual		Non Accrual		Current		Receivable

	(In thousands)
Commercial and Industrial	$	—	$	27	$	—	$	273	$	300	$	85,598	$	85,898
Commercial real estate		329		—		—		5,790		6,119		310,579		316,698
Residential		116		44		—		344		504		86,512		87,016
Installment		3		8		4		—		15		6,107		6,122
Total	$	448	$	79	$	4	$	6,407	$	6,938	$	488,796	$	495,734

Loan Portfolio Aging Analysis

As of December 31, 2025


	30‑59 Days		60‑89 Days		Greater
	Past Due		Past Due		Than 90 Days				Total Past
	and		and		and				Due and				Total Loans
	Accruing		Accruing		Accruing		Non Accrual		Non Accrual		Current		Receivable

	(In thousands)
Commercial and Industrial	$	19	$	—	$	—	$	312	$	331	$	91,688	$	92,019
Commercial real estate		124		4,198		—		1,385		5,707		297,341		303,048
Residential		551		45		—		559		1,155		88,425		89,580
Installment		36		—		—		10		46		6,866		6,912
Total	$	730	$	4,243	$	—	$	2,266	$	7,239	$	484,320	$	491,559

Nonperforming Loans

The following table present the amortized cost basis of loans on nonaccrual status and loans past due over 90 days still accruing interest as of June 30, 2026:


								Loans Past
								Due Over 90 Days		Total
		Nonaccrual with no ACL		Nonaccrual with ACL		Total Nonaccrual		Still Accruing		Nonperforming

		(In thousands)
Commercial and Industrial		$	273	$	—	$	273	$	—	$	273
Commercial real estate			4,637		1,153		5,790		—		5,790
Residential			344		—		344		—		344
Installment			—		—		—		4		4
Total		$	5,254	$	1,153	$	6,407	$	4	$	6,411

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2026 and 2025

(In thousands)

(Unaudited)

The Company recognized $20,000 interest income on nonaccrual loans during the period ended June 30, 2026. As of June 30, 2026, the Company did not grant any loan modifications to borrower experiencing financial difficulty. As of June 30, 2026, the Company has not initiated formal proceedings on any loans that have not been transferred into foreclosed assets.

The Company did not recognize interest income on nonaccrual loans during the period ended June 30, 2025.

The following table present the amortized cost basis of loans on nonaccrual status and loans past due over 90 days still accruing interest as of December 31, 2025:


								Loans Past
								Due Over 90 Days		Total
		Nonaccrual with no ACL		Nonaccrual with ACL		Total Nonaccrual		Still Accruing		Nonperforming

		(In thousands)
Commercial and Industrial		$	312	$	—	$	312	$	—	$	312
Commercial real estate			1		1,384		1,385		—		1,385
Residential			559		—		559		—		559
Consumer			10		—		10		—		10
Total		$	882	$	1,384	$	2,266	$	—	$	2,266

The Company recognized approximately $6,000 interest income on nonaccrual loans during the period ended December 31, 2025.

Note 4: Benefit Plans

Pension expense includes the following:


	Three months ended				Six months ended
	June 30,				June 30,
	2026		2025		2026		2025

	(In thousands)
Service cost	$	92	$	87	$	184	$	174
Interest cost		106		97		212		194
Expected return on assets		(205)		(178)		(410)		(356)
Accretion of prior service cost and net loss		(12)		(22)		(24)		(44)

Pension (contra expense) expense	$	(19)	$	(16)	$	(38)	$	(32)

All components of pension expense are reflected within the salaries and employee benefits line of the consolidated statement of income.

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2026 and 2025

(In thousands)

(Unaudited)

Note 5: Off-Balance-Sheet Activities

Some financial instruments, such as loan commitments, credit lines, letters of credit and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contracts are met, and usually have expiration dates. Commitments may expire without being used. Off-balance-sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment.

A summary of the notional or contractual amounts of financial instruments with off-balance-sheet risk at the indicated dates is as follows:


	June 30,		December 31,
	2026		2025

	(In thousands)
Commercial loans unused lines of credit	$	119,273	$	114,967
Commitment to originate loans		117,627		115,953
Consumer open end lines of credit		33,482		32,615
Standby lines of credit		466		477

During the three and six months ended June 30, 2026, there was no change in the provision for credit expense for off balance sheet exposure of $94,000.

Allowance for Credit Losses on Off-Balance Sheet Commitments

The following table present the activity in the allowance for credit losses related to off-balance sheet commitments, that is included in interest payable and other liabilities on the consolidated balance sheets of financial condition for the three and six months ended June 30, 2026 and 2025.


		June 30,
		2026
Balance – December 31, 2025		$	94
Provision for (reversal of) credit losses			—
Balance – March 31, 2026			94
Provision for (reversal of) credit losses			—
Balance – June 30, 2026		$	94


	June 30,
	2025
Balance – December 31, 2024	$	94
Provision for (reversal of) credit losses		—
Balance – March 31, 2025		94
Provision for (reversal of) credit losses		—
Balance – June 30, 2025	$	94

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2026 and 2025

(In thousands)

(Unaudited)

Note 6: Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss), included in stockholders’ equity, are as follows:


	June 30,		December 31,
	2026		2025

	(In thousands)
Net unrealized loss on securities available-for-sale	$	(4,764)	$	(6,589)
Net unrealized loss for unfunded status of defined benefit plan liability		(185)		(185)
		(4,949)		(6,774)
Less: Tax effect		1,040		1,423
Net-of-tax amount	$	(3,909)	$	(5,351)

The changes in accumulated other comprehensive income (loss) by component shown of net of tax and parenthesis indicating debits as of June 30, 2026 and 2025.


	Three months ended						Three months ended
	June 30, 2026						June 30, 2025
	Net unrealized						Net unrealized
	(Loss)		Defined				(Loss)		Defined
	Gain on Available		Benefit				Gain on Available		Benefit
	For Sale Securities		Plan		Total		For Sale Securities		Plan		Total
(In thousands)
Beginning balance	$	(7,662)	$	(146)	$	(7,808)	$	(12,018)	$	(517)	$	(12,535)
Other comprehensive income (loss) before reclassification		3,899		—		3,899		(1,961)		—		(1,961)
Amounts reclassified from accumulated other comprehensive gain (loss)		—		—		—		—		—		—
Net current -period other comprehensive income (loss)		3,899		—		3,899		(1,961)		—		(1,961)
Ending balance	$	(3,763)	$	(146)	$	(3,909)	$	(13,979)	$	(517)	$	(14,496)


	Six months ended						Six months ended
	June 30, 2026						June 30, 2025
	Net unrealized						Net unrealized
	(Loss)		Defined				(Loss)		Defined
	Gain on Available		Benefit				Gain on Available		Benefit
	For Sale Securities		Plan		Total		For Sale Securities		Plan		Total
(In thousands)
Beginning balance	$	(5,205)	$	(146)	$	(5,351)	$	(9,583)	$	(517)	$	(10,100)
Other comprehensive income (loss) before reclassification		1,442		—		1,442		(4,282)		—		(4,282)
Amounts reclassified from accumulated other comprehensive (gain) loss		—		—		—		(114)		—		(114)
Net current -period other comprehensive income (loss)		1,442		—		1,442		(4,396)		—		(4,396)
Ending balance	$	(3,763)	$	(146)	$	(3,909)	$	(13,979)	$	(517)	$	(14,496)

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2026 and 2025

(In thousands)

(Unaudited)

Note 7: Fair Value Measurements

The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company also utilizes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1

Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date

Level 2

Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities

Level 3

Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities

Following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy.

Available-for-sale Securities

Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. The Company’s equity securities are classified within Level 1 of the hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy.

The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2026 and December 31, 2025:


			Fair Value Measurements Using
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)

	(In thousands)
June 30, 2026
U.S. government agencies	$	2,421	$	—	$	2,421	$	—
Subordinated Notes		21,357		—		21,357		—
State and municipal obligations		217,268		—		217,268		—


December 31, 2025
U.S. government agencies	$	2,454	$	—	$	2,454	$	—
Subordinated Notes		20,909		—		20,909		—
State and municipal obligations		210,841		—		210,841		—

Table of Contents

United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2026 and 2025

(In thousands)

(Unaudited)

Following is a description of the valuation methodologies used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below.

Collateral Dependent

Collateral dependent loans consisted primarily of loans secured by nonresidential real estate. Management has determined fair value measurements on collateral dependent loans primarily through evaluations of appraisals performed. Due to the nature of the valuation inputs, impaired loans are classified within Level 3 of the hierarchy.

The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by the Company’s Chief Lender. Appraisals are reviewed for accuracy and consistency by the Company’s Chief Lender. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by the Company’s Chief Lender by comparison to historical results. If the loan balance exceeds the fair value of the collateral, a specific reserve is applied and these assets are generally classified as level 3 fair value, based upon the lowest level of inputs that is significant to the fair value measurements.

The following tables present, loans by purpose, the amortized costs basis of collateral-dependent nonaccrual loans and type of collateral as of June 30, 2026.


		Real Estate			Other			Total
(In Thousands)
Commercial and Industrial		$	—		$	273		$	273
Commercial real estate			5,790			—			5,790
Residential			344			—			344
Installment			—			—			—
Total		$	6,134		$	273		$	6,407

The following tables present, loans by purpose, the amortized costs basis of collateral-dependent nonaccrual loans and type of collateral as of December 31, 2025.


		Real Estate			Other			Total
(In Thousands)
Commercial and Industrial		$	—		$	312		$	312
Commercial real estate			1,385			—			1,385
Residential			453			—			453
Installment			—			—			—
Total		$	1,838		$	312		$	2,150

Foreclosed Assets Held for Sale

Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value (based on current appraised value) at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Management has determined fair value measurements on other real estate owned primarily through evaluations of appraisals performed, and current

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2026 and 2025

(In thousands)

(Unaudited)

and past offers for the other real estate under evaluation. Due to the nature of the valuation inputs, foreclosed assets held for sale are classified within Level 3 of the hierarchy.

Appraisals of OREO are obtained when the real estate is acquired and subsequently as deemed necessary by the Company’s Chief lender. Appraisals are reviewed for accuracy and consistency by the Company’s Chief Lender and are selected from the list of approved appraisers maintained by management.

The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2026 and December 31, 2025.


					Fair Value Measurements Using
					Quoted Prices
					in Active			Significant
					Markets for			Other			Significant
					Identical			Observable			Unobservable
		Fair			Assets			Inputs			Inputs
		Value			(Level 1)			(Level 2)			(Level 3)

		(In thousands)
June 30, 2026
Collateral dependent loans		$	620		$	—		$	—		$	620
Foreclosed assets held for sale			2,261			—			—			2,261

December 31, 2025
Collateral dependent loans		$	821		$	—		$	—		$	821
Foreclosed assets held for sale			2,540			—			—			2,540

Unobservable (Level 3) Inputs

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements.


		Fair Value at			Valuation		Unobservable
		6/30/26			Technique		Inputs		Range

		(In thousands)
Collateral-dependent loans		$	620		Market comparable properties		Comparability adjustments		5% –10%
Foreclosed assets held for sale			2,261		Market comparable properties		Marketability discount		10% – 35%


		Fair Value at			Valuation		Unobservable
		12/31/25			Technique		Inputs		Range

		(In thousands)
Collateral-dependent loans		$	821		Market comparable properties		Comparability adjustments		5% – 10%
Foreclosed assets held for sale			2,540		Market comparable properties		Marketability discount		10% – 35%

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2026 and 2025

(In thousands)

(Unaudited)


					Fair Value Measurements Using
					Quoted Prices
					in Active			Significant
					Markets for			Other			Significant
					Identical			Observable			Unobservable
		Carrying			Assets			Inputs			Inputs
		Amount			(Level 1)			(Level 2)			(Level 3)

		(In thousands)
June 30, 2026:

Financial assets
Cash and cash equivalents		$	45,984		$	45,984		$	—		$	—
Loans, net of allowance			491,378			—			—			478,587
Federal Home Loan Bank			3,287			—			3,287			—
Accrued interest receivable			4,233			—			4,233			—

Financial liabilities
Deposits			686,945			—			688,016			—
Securities sold under repurchase agreements			29,388			—			29,388			—
Subordinated debentures			23,939			—			23,590			—
Advance Federal Home Loan Bank			55,000			—			54,967			—
Accrued interest payable			560			—			560			—


					Fair Value Measurements Using
					Quoted Prices
					in Active			Significant
					Markets for			Other			Significant
					Identical			Observable			Unobservable
		Carrying			Assets			Inputs			Inputs
		Amount			(Level 1)			(Level 2)			(Level 3)

		(In thousands)
December 31, 2025:

Financial assets
Cash and cash equivalents		$	46,528		$	46,528		$	—		$	—
Loans, net of allowance			487,298			—			—			473,747
Federal Home Loan Bank stock			4,030			—			4,030			—
Accrued interest receivable			3,982			—			3,982			—

Financial liabilities
Deposits			641,366		$	—		$	642,416		$	—
Short term borrowings			29,403			—			29,403			—
Subordinated debentures			75,000			—			75,464			—
Advance Federal Home Loan Bank			23,909			—			23,393			—
Accrued interest payable			612			—			612			—

The following methods and assumptions were used to estimate the fair value of each class of financial instruments.

Cash and Cash Equivalents, Accrued Interest Receivable and Federal Home Loan Bank Stock

The carrying amounts approximate fair value.

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2026 and 2025

(In thousands)

(Unaudited)

Loans

Fair values of loans are estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors.

Deposits

Deposits include demand deposits, savings accounts, NOW accounts and certain money market deposits. The carrying amount approximates fair value. The fair value of fixed-maturity time deposits is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities.

Accrued Interest Payable

The carrying amount approximates fair value.

Short-term Borrowings, Federal Home Loan Bank Advances and Subordinated Debentures

Rates currently available to the Company for debt with similar terms and remaining maturities are used to estimate the fair value of existing debt.

Commitments to Originate Loans, Letters of Credit and Lines of Credit

The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair values of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. Fair values of commitments were not material at June 30, 2026 and December 31, 2025.

Note 8: Repurchase Agreements

Securities sold under agreements to repurchase (“repurchase agreements”) with customers represent funds deposited by customers, generally on an overnight basis that are collateralized by investment securities owned by the Company.

The following table presents the Company’s repurchase agreements accounted for as secured borrowings:

Remaining Contractual Maturity of the Agreement

(In thousands)


		Overnight and									Greater than
June 30, 2026		Continuous			Up to 30 Days			30‑90 Days			90 Days			Total
Repurchase Agreements
State and municipal obligations		$	29,388		$	—		$	—		$	—		$	29,388
Total		$	29,388		$	—		$	—		$	—		$	29,388


		Overnight and									Greater than
December 31, 2025		Continuous			Up to 30 Days			30‑90 Days			90 Days			Total
Repurchase Agreements
State and municipal obligations		$	29,403		$	—		$	—		$	—		$	29,403
Total		$	29,403		$	—		$	—		$	—		$	29,403

These borrowings were collateralized with state and municipal obligations with a carrying value of $53.6 million at June 30, 2026 and $51.3 million at December 31, 2025. Declines in the fair value would require the Company to pledge additional securities.

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2026 and 2025

(In thousands)

(Unaudited)

Note 9: Core Deposits and Intangible Assets

The following table shows the changes in the carrying amount of goodwill for June 30, 2026 and December 31, 2025 (in thousands):


		June 30,			December 31,
		2026			2025
Balance beginning of year		$	682		$	682
Additions from acquisition			—			—
Balance, end of period		$	682		$	682

Intangible assets in the consolidated balance sheets at June 30, 2026 and December 31, 2025 were as follows (in thousands):


	Three Months Ended June 30, 2026						Year Ended December 31, 2025
	Gross						Gross
	Intangible		Accumulated		Net Intangible		Intangible		Accumulated		Net Intangible
	Assets		Amortization		Assets		Assets		Amortization		Assets
Core deposit intangibles	$	1,041	$	1,041	$	—	$	1,041	$	1,041	$	—

At each reporting date between annual goodwill impairment tests, the Company considers potential indicators of impairment. At the conclusion of the assessment, the Company determined that as of June 30, 2026 it was more likely than not that the fair value exceeded its carrying values. The Company will continue to monitor the overall economic conditions and any other triggering events or circumstances that may indicate an impairment of goodwill in the future.

Note 10: Advances from the Federal Home Loan Bank

At June 30, 2026, advance from the Federal Home Loan Bank were $55 million. The Company had $75 million of advances from the Federal Home Loan Bank at December 31, 2025.

At June 30, 2026, required repayments on Federal Home Loan Bank advances were for year December 31, 2027 are $35 million (4.24% fixed rate) and December 31, 2028 are $20 million (4.11% fixed rate).

Note 11: Restricted Stock Plan

A summary of the status of the Company’s nonvested restricted shares as of June 30, 2026, and changes during the six months ended June 30, 2026, is presented below:


		Weighted-
		Average
		Grant-Date
		Shares	Fair Value
Nonvested, beginning of year		287,790	$	11.68
Granted		50,000		14.12
Vested		(20,000)		9.00
Forfeited		(10,000)		11.49
Nonvested, end of quarter		307,790	$	12.29

Total compensation cost recognized in the income statement for share-based payment arrangements during the three and six months ended June 30, 2026 was $99,000 and $199,000, respectively. Total compensation cost recognized in the income statement for share-based payment arrangements during the three and six months ended June 30, 2025 was $88,000 and $177,000. There were 20,000 shares vested during the first quarter of 2026.

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2026 and 2025

(In thousands)

(Unaudited)

Note 12: Premises and Equipment

Major classifications of premises and equipment, stated at cost, are as follows:


		June 30,			December 31,
		2026			2025

		(In thousands)
Land, buildings and improvements		$	44,050		$	41,530
Furniture and equipment			18,388			17,839
Computer software			2,918			2,872
			65,356			62,241
Less accumulated depreciation			(28,884)			(28,146)
Net premises and equipment		$	36,472		$	34,095

Depreciation and amortization charged to operations was $822,000 and $576,000 for the six months ended June 30, 2026 and 2025, respectively.

Note 13: Segment Reporting

The Company’s has one reportable segment (“Banking”) as determined by the after considering the level of information to review and the performance of various components of the business. The Company’s Management will use the consolidated information to benchmark against similar entities to evaluate financial performance and budget to actual results. Accounting policies followed by the Company are the same used for the single segment. The one segment identified is evaluated using net income, earnings per share, return of average assets and equity. Information used for performance assessment follows. Since reported consolidated financial results are used for the performance assessment, there are no reconciling items noted from our financial reporting results published and segment reporting financial information.


		Three Months Ended June 30,
		2026			2025

		(In thousands)
Banking Segment
Total interest income		$	10,533		$	10,411
Total interest expense			3,529			3,816
Net interest income			7,004			6,595
Provision for credit loss expense			126			206
Net interest income after provision for (reversal of) credit losses			6,878			6,389
Noninterest income			1,617			1,390
Noninterest expense (including taxes)			6,400			5,865
Net income			2,095			1,914
Net income (consolidated statements of income)		$	2,095		$	1,914
Total assets Banking segment		$	877,972		$	847,884
Total assets (consolidated balance sheets)		$	877,972		$	847,884

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United Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2026 and 2025

(In thousands)

(Unaudited)


		Six Months Ended June 30,
		2026			2025

		(In thousands)
Banking Segment
Total interest income		$	20,547		$	20,253
Total interest expense			7,032			7,411
Net interest income			13,515			12,842
Provision for credit loss expense			156			302
Net interest income after provision for (reversal of) credit losses			13,359			12,540
Noninterest income			3,042			2,671
Noninterest expense (including taxes)			12,395			11,425
Net income			4,006			3,786
Net income (consolidated statements of income)		$	4,006		$	3,786
Total assets Banking segment		$	877,972		$	847,884
Total assets (consolidated balance sheets)		$	877,972		$	847,884

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United Bancorp, Inc.

Management’s Discussion and Analysis of Financial
Condition and Results of Operations

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation

The following discusses the consolidated financial condition of the Company as of June 30, 2026, as compared to December 31, 2025, and the results of consolidated operations for the three and six months ended June 30, 2026, compared to the same period in 2025. This discussion should be read in conjunction with the interim condensed consolidated financial statements and related footnotes included herein.

Introduction

United Bancorp, Inc. (NASDAQ: UBCP) reported diluted earnings per share of $0.36 and net income of $2,095,000 for the three months ended June 30, 2026. For the first six months of the current year, UBCP reported diluted earnings per share of $0.69 and net income of $4,006,000.

We are happy to report on the increased earnings for the second quarter ended June 30, 2026 and, the overall solid performance achieved by United Bancorp, Inc. (UBCP) for the first six months of 2026. For the quarter, our Company produced net income and diluted earnings per share of $2,095,000 and $0.36, which are respective increases of $180,000, or 9.4%, and $0.03, or 9.1%, over the results achieved for the second quarter of the previous year. In addition, on a linked-quarter basis, our Company’s net income and diluted earnings per share results also respectively increased by $184,000, or 9.6%, and $0.03 or 9.1%. For the first six months of 2026, UBCP produced net income of $4,006,000, an increase of $219,000, or 5.8%, over the previous year and diluted earnings per share of $0.69, which is an increase of $0.04, or 6.2%, year-over-year. We are very pleased that our year-to-date results as of June 30, 2026 are higher than those achieved for the same period of time in 2025 considering that… as we have previously mentioned… our Company is focused on the future and has undertaken several transformative projects that have created additional expense for UBCP and are somewhat dilutive to earnings at present. In addition, even though there has been a tremendous level of uncertainty permeating our economy in recent years… that level of uncertainty has increased in the first half of the current year as geopolitical risks increased, which created disruption in our global economy. Regardless, we are satisfied with our increasing earnings and content with how our investment in our infrastructure and growth is developing in accordance with our visions and projections. We firmly believe that over the course of the next twelve to twenty-four months, we will see a very nice return on these investments in our Company’s infrastructure, which should lead to higher levels of earnings and help ensure the relevancy of UBCP for many years to come.

Many thought that the economic uncertainty with which our country has been dealing for the past several years was finally going to be behind us in 2026. Even though inflation had stagnated at a level a little bit higher than the Federal Open Market Committee (FOMC) of the Federal Reserve Bank liked, it was getting closer to their established target of two percent. In addition, they were mostly satisfied with current employment-related data within our economy. As we entered 2026, forecasts called for solid economic growth as the impact of the tariffs implemented last year was thought to also be behind us and the anticipated increase in tax refund payouts under our new tax policy were anticipated to fuel consumption and growth, driving our Gross Domestic Product (GDP) higher to levels rarely seen. In addition, forecasts for interest rates projected two to three cuts for the fed funds target rate, which would align our country’s monetary policy with a more neutral position. How quickly things can change! With the United States and Israel commencing military action on Iran in late February, the economic uncertainty that we thought was finally behind us heightened to levels even greater than before. Even with all of this concern and uncertainty, our Company was able to achieve growth in its balance sheet for the six-months ended June 30, 2026. Year-over-year, total assets increased by $30.1 million, or 3.6%, to a level of $878.0 million. This increase in total assets is primarily attributed to year-over-year increases in securities by $13.1 million (to a level of $244.3 million) and, bank owned life insurance by $18.5 million (to a level of $38.5 million). Overall, the increase in the level of interest earning assets on our balance sheet in the first six months of this year--- along with our loans outstanding continuing to reprice at higher rates--- helped our Company achieve an increase in the total interest income that it generated by $293,000, or 1.5%, over the level achieved during the same timeframe last year. Driving the increase in our Company’s total assets as of June 30, 2026 was the growth that we experienced in our total deposits. During the first half of 2026, total deposits grew by $44.0 million, or 6.8%, to a level of $686.9 million. Much of this increase in our total deposits came from growth in our lower-cost funding--- consisting of noninterest bearing demand, interest bearing demand and savings--- with balances increasing by $30.8 million, or 6.8%, to a level of $481.9 million (which is 70.2% of total deposits). In addition, higher-cost time deposits increased by $13.2 million, or 6.9%, to a level of $205.0 million (which is 29.8% of total deposits). Remarkably, even with this increase in the total deposits of our Company, total interest expense as of June 30, 2026 decreased by

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United Bancorp, Inc.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

($380,000), or (5.1%), and our interest expense to average assets decreased by seventeen basis points (17bps) on a year-over-year basis to a level of 1.62%. This decrease in total interest expense can be attributed to our Company’s aforementioned attraction of lower-cost deposits… along with the continued downward repricing of our core deposits and the maturity of a $20.0 million Federal Home Loan Bank (FHLB) Advance in the first quarter of this year on which we were paying a rate of 4.39%. With the year-over-year increase in total interest income and decrease in total interest expense, UBCP was able to continue the trend of having increasing net interest income and an expanding net interest margin. For the first six months of 2026, net interest income increased by $673,000, or 5.2%, and the net interest margin increased by seventeen basis points (17bps) to a level of 3.82%, both year-over-year. We anticipate the trend of our Company’s net interest income and net interest margin increasing to continue over the remainder of 2026.

Relating to the credit-quality metrics for our Company, our combined delinquency and nonaccrual loan levels have increased somewhat year-over-year from the uncharacteristically and historically low levels that we had maintained for several years… but, they did decline slightly from the levels that we reported at December 31, 2025. At quarter-end, June 30, 2026, our Company’s nonaccrual loans and loans past due thirty-plus days totaled $6.9 million (or, 1.4% of gross loans), which was an increase of $4.7 million year-over-year. On a linked-quarter basis, our level of nonaccrual loans and loans past due thirty-plus days was relatively stable, increasing by $115,000. Regarding these metrics increasing on a year-over-year basis--- we had one commercial loan relationship with an outstanding balance of approximately $4.2 million go from being current last year to being classified as nonaccrual during the first quarter of 2026. This single relationship accounts for an overwhelming majority of the year-over-year increase in our nonaccrual loans. On the flip-side, our loans past due thirty plus days remained relatively steady year-over-year at a level of $531,000 or 0.11% of gross loans. Accordingly, we believe that our overall credit quality is sound and this single relationship is not indicative of an increasing level of credit risk within our loan portfolio. Further highlighting the overall quality and soundness of our loan portfolio, our Company had net loans charged off (excluding overdrafts) of ($7,000) in the first six months of the current year--- which on an annualized basis is zero percent of average loans--- and is lower than the previous year and in-line with peer. In addition, our Company remains very well capitalized by regulatory standards with regulatory capital (stockholders’ equity plus accumulated other comprehensive loss) of $76.0 million, or 8.7% of average assets, which is an increase of $1.8 million, or 2.5%, year-over-year.

With our committed and long-term focus of growing our balance sheet in a profitable fashion by investing in the infrastructure of our Company, we are very pleased with the financial results that we achieved in the current year as of June 30, 2026. In addition, we are very satisfied with the progress that we are making on the execution of our plan relating to our investment in infrastructural improvements that will help ensure our relevancy for many years to come and help us achieve our vision of becoming a community financial institution with assets of $1.0 billion or greater in the very near term. As I have previously mentioned, we opened our newest banking center… a regional hub… in the appealing market of Wheeling, West Virginia, on December 9, 2025. As June 30, 2026, this office has been very well received by this vibrant market and has exceeded our performance expectations during the first six months of operation. A lot of the growth in our depository base can be attributed to this new office. We firmly believe that within five years, this new banking center will be a top performer for United Bancorp, Inc. (UBCP).

Relating to other infrastructural investments that we have undertaken within the past year or two, our Company’s Unified Mortgage Division continues to contribute meaningfully to fee income. As we focus on further scaling this function with the addition of mortgage loan originators--- and, considering the positive operating leverage that presently exists within this developing division--- we strongly believe that Unified Mortgage will continue to produce increasingly positive results and become more lucrative for our Company. Unified Mortgage is definitely becoming a known entity amongst the realtors within the markets that we serve. We also continue to invest in and develop our Treasury Management capabilities that help our small business customers with cash management, merchant services and payments. This function not only generates fee income for United Bancorp, Inc. (UBCP); but, also is a key driver of low or no cost deposits and strengthens relationship depth with our commercial customers. No doubt, both of these areas contributed to the increasing levels of noninterest income that we generated during the first half of this year--- with the latter also contributing to the growth in our low-cost deposits, which helped lead to the increase in deposit totals and decrease in our interest expense level as of June 30, 2026.

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United Bancorp, Inc.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Over the course of 2025 and into the current year, we have and continue to make a tremendous investment in technology. With our enhanced technological product offering, we now have more customers than ever utilizing our consumer and commercial online and mobile platforms and benefitting from these advanced solutions that we offer… which has and will continue to lead to more relationship building and revenue generating opportunities for UBCP. Importantly, we have begun developing and are soon to implement an AI solution designed to help us better serve customers by answering inquiries more efficiently and effectively… guiding customers to the best financial solutions and supporting a more modern, customer-centric approach to delivery. To further supplement this aforementioned AI solution, we are presently in the process of implementing a system specializing in omnichannel account opening, that will allow our Company to fully digitize the account opening process through online, mobile and in-branch platforms… enabling customers, both business and consumer, to open all deposit accounts and most services in person and virtually. These enhanced systems will be housed in our soon-to-open Unified Center (which is located in St. Clairsville, Ohio) and will help support our Unified Care Center that will also be housed at this facility. The Unified Care Center will centralize the customer service function of our Company with team members that are highly skilled and more capable of providing a complete and satisfying “Unified Experience” to customers from any technology platform… via a live video interface. In addition, the Unified Care Center will have a “sales oriented” function, which is anticipated to lead to additional business for our Company by routing inbound banking inquiries and requests from any banking channel to our Unified Care Center, for “in person” consultations with our skilled team members. By having a centralized customer support function staffed with skilled sales and service professionals who are truly “subject matter experts,” we believe that we will be able to more effectively and efficiently attract, develop and retain customer relationships with more productive on-boarding and cross-selling practices--- which is anticipated to lead to a higher level of customer satisfaction and overall profitability for UBCP. We anticipate that all of these new technology and support functions will be fully implemented by year-end and believe that the Unified Care Center has the potential to develop into a bona-fide “digital bank” for our Company, which will more readily support our growth and profitability objectives in the coming years!

As always, our primary focus is protecting the investment of our shareholders in our Company and rewarding them in a balanced fashion by growing the value of their investment and paying an attractive cash dividend. In these areas, our shareholders have been nicely rewarded. In the second quarter of this year, UBCP paid a regular cash dividend at a level of $0.195, an increase of $0.01, or 5.4%, over the regular cash dividend paid in the second quarter of the previous year. Year-to-date, our Company paid total cash dividends of $.5625, which includes a special cash dividend of $0.1750 paid in the first quarter. At the second quarter dividend payout level, the forward yield produced by our regular cash dividend is 4.9% and, inclusive of the special dividend, the forward yield is 6.0%, considering our quarter-ending fair market value as of June 30, 2026 of $15.88. On a year-over-year basis, the fair market value of our Company’s stock increased by $1.38 or 9.5%.

As you can see, we are currently heavily investing in the infrastructure of our Company to set the stage for future growth and ensure that UBCP remains relevant in the ever-more competitive financial services industry. We firmly believe that within the next twelve to twenty-four months, we will see a solid return on these investments that we have made and are currently implementing to improve our operations and delivery. Obviously, such expenditures do have a dilutive impact on the earnings that we produce in the short-term. But, even with this reality, we are very happy with the present performance of our Company. We are grateful that we have produced increasing earnings and have grown our balance sheet in the first six months of 2026. In the second half of 2026, we anticipate these positive trends will continue. We are truly excited about UBCP’s direction and the potential that it brings.

Forward-Looking Statements

When used in this document, the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “projected” or similar expressions are intended to identify “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties including changes in economic conditions in the Bank’s market areas, changes in policies by regulatory agencies, fluctuations in interest rates, demand for loans in the Bank’s market areas and competition, that could affect the Company’s financial performance and cause actual results to differ materially from historical earnings and those presently anticipated or projected with respect to future periods. These risks and uncertainties should be considered in evaluating forward looking statements, and undue reliance should not be placed on such statements. Additional information concerning the Company and its business, including other factors that could materially affect the Company’s financial results, is included in the Company’s filings with the Securities and Exchange Commission.

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United Bancorp, Inc.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

The Company is not aware of any trends, events or uncertainties that will have or are reasonably likely to have a material effect on its financial condition, results of operations, liquidity or capital resources except as discussed herein. The Company is not aware of any current recommendation by regulatory authorities that would have such effect if implemented except as discussed herein.

The Company does not undertake, and specifically disclaims any obligation, to publicly revise any forward-looking statements to reflect events or circumstances after the date such statements were made or to reflect the occurrence of anticipated or unanticipated events.

Critical Accounting Policies

The Company’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. Management makes certain judgments that affect the amounts reported in the financial statements and footnotes. These estimates, assumptions and judgments are based on information available as of the date of the financial statements, and as this information changes, the financial statements could reflect different estimates, assumptions, and judgments.

See Note 1, “Summary of Significant Accounting Policies” Management considers the measurement of the allowance for credit losses on loans to be a critical accounting policy.

This discussion of the Company’s critical accounting policies should be read in conjunction with the Company’s consolidated financial statements and the accompanying notes presented elsewhere herein, as well as other relevant portions of Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Analysis of Financial Condition

Earning Assets – Loans

The Company’s focus as a community bank is to meet the credit needs of the markets it serves. At June 30, 2026, gross loans were $495.7 million, compared to $491.6 million at December 31, 2025, an increase of $4.2 million after offsetting repayments for the period. The overall increase in the loan portfolio was comprised of a $7.5 million increase in commercial and commercial real estate loans and a $2.6 million decrease in residential real estate lending and a $790,000 decrease in consumer loans since December 31, 2025.

Commercial and commercial real estate loans comprised 81.2% of total loans at June 30, 2026, compared to 80.4% at December 31, 2025. Commercial and commercial real estate loans have increased $7.5 million, or approximately 1.9% since December 31, 2025. 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.

Consumer loans represented 1.2% of total loans at June 30, 2026 and 1.4% at December 31, 2025. Some of the consumer loans carry somewhat more risk than real estate lending; however, it also provides for higher yields. Consumer loans have decreased $790,000, or 11.4%, since December 31, 2025.

Residential real estate loans were 17.6% of total loans at June 30, 2026 and 18.2% at December 31, 2025, representing a decrease of $2.6 million or 2.9% since December 31, 2025.

The allowance for credit losses totaled $4.4 million at June 30, 2026, which represented 0.88% 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 charge-offs (exclusive of overdrafts net charge-offs of $55,000) for the six months ended June 30, 2026 were approximately $7,000. Net loans charged off (exclusive of overdrafts net charge-offs $50,000) was $122,000 for the six months ended June 30, 2025.

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United Bancorp, Inc.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Earning Assets – Securities

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, 2026 increased approximately $6.8 million from December 31, 2025 totals.

Sources of Funds – Deposits

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, 2026, total core deposits (interest and non interest bearing accounts and savings) increased approximately $22.3 million, or 4.9% from December 31, 2025 totals. The Company’s savings accounts increased $6.6 million or 5.3% from December 31, 2025 totals. The Company’s interest-bearing and non-interest bearing demand deposits increased $15.8 million while certificates of deposit under $250,000 increased by $16.5 million.

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

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, 2026, certificates of deposit greater than $250,000 increased $6.8 million or 16.3%, from December 31, 2025 totals.

Sources of Funds – Securities Sold under Agreements to Repurchase and Other Borrowings

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 decreased approximately $15,000 from December 31, 2025 totals. At June 30, 2026, the Company has $55 million of fixed rate advances that mature over the next 1 to 2 years. Refer to footnote 10 for further information.

Results of Operations for the Three Months Ended June 30, 2026 and 2025

Net Income

The reported diluted earnings per share was $0.36 for the quarter ended June 30, 2026 compared to $0.33 for the quarter ended June 30, 2025, an increase of 9.1%.

Net Interest Income

Net interest income increased $409,000 or 6.2% for the three months ended June 30, 2026 compared to the same period in 2025. This increase was mainly due to our variable rate loans repricing upward.

Provision for Credit Losses

The Company had a provision for credit losses of $126,000 for the three months ended June 30, 2026 as compared to a provision for credit losses of $206,000 for same period in 2025.

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United Bancorp, Inc.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Noninterest Income

Noninterest income of the Company increased $227,000 quarter-over-quarter. This increase was in part due to an increase in earnings on bank-owned life insurance of $225,000 for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025.

Noninterest Expense

The Company saw its noninterest expense increased by $591,000 or 10.1% year-over-year. Salaries and benefits increased $320,000 or 11.1% quarter over quarter. Occupancy expense increased $132,000 or 21.3% mainly due to the opening of the Wheeling West Virginia location in the fourth quarter of 2025. Data processing and related electronic services increased $118,000 or 28.9% mainly related to the investment in Technology, Digital Transformation project that started in 2025 and continues into 2026.

Federal Income Taxes

The provision for federal income taxes (benefits) was ($34,000) for the three months ended June 30, 2026 and $22,000 for the three months ended June 30, 2025.

Results of Operations for the Six Months Ended June 30, 2026 and 2025

Net Income

The reported diluted earnings per share was $0.69 for the six months ended June 30, 2026 compared to $0.65 for the six months ended June 30, 2025.

Net Interest Income

Net interest income increased $673,000 or 5.2% for the six months ended June 30, 2026 compared to the same period in 2025. This increase was mainly due to our variable rate loans repricing upward.

Provision for Credit Losses

The Company had a provision for credit losses of $156,000 for the six months ended June 30, 2026. The Company had a provision for credit losses of $302,000 for same period in 2025.

Noninterest Income

Noninterest income of the Company increased $371,000 year-over-year. This increase was in part due to an increase in earnings on bank-owned life insurance of $457,000 for the six month ended June 30, 2026. This increase was off-set by the $144,000 gain on sale of available-for-sale securities for the six month ended June 30, 2025.

Noninterest Expense

The Company saw its noninterest expense increased by $1.2 million or 10.1% year-over-year. The increase is due to additional staffing related to the December 2025 opening of our Wheeling Banking Center and normal merit increases and general inflation.

Federal Income Taxes

The provision for federal income taxes (benefits) was ($194,000) for the six months ended June 30, 2026. The Company had an income tax (Benefit) of $4,000 for the six months ended June 30, 2025.

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United Bancorp, Inc.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Capital Resources

Internal capital growth, through the retention of earnings, is the primary means of maintaining capital adequacy for the Company. Stockholders’ equity totaled $72.1 million at June 30, 2026, compared to $70.5 million at December 31, 2025, a $1.6 million increase. Total stockholders’ equity in relation to total assets was 8.21% at June 30, 2026 and 8.22% at December 31, 2025. 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.

The Company has offered for many years a Dividend Reinvestment Plan (“The Plan”) for shareholders under which the Company’s common stock will be purchased by the Plan for participants with automatically reinvested dividends. The Plan does not represent a change in the Company’s dividend policy or a guarantee of future dividends.

The Company is subject to the regulatory requirements of The Federal Reserve System as a bank holding company. The Bank is subject to regulations of the FDIC and the State of Ohio, Division of Financial Institutions. The most important of these various regulations address capital adequacy.

On January 1, 2015, the final rules of the Federal Reserve Board went into effect implementing in the United States the Basel III regulatory capital reforms from the Basel Committee on Banking Supervision and certain changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Under the final rule, minimum requirements increased for both the quality and quantity of capital held by banking organizations. The rule requires a new minimum ratio of common equity tier 1 capital to risk-weighted assets of 4.5 percent and a common equity tier 1 capital conservation buffer of 2.5 percent of risk-weighted assets that will apply to all supervised financial institutions. The rule also raises the minimum ratio of tier 1 capital to risk-weighted assets from 4 percent to 6 percent and includes a minimum leverage ratio of 4 percent for all banking organizations.

The Bank continues to be well-capitalized in accordance with Federal regulatory capital requirements as the capital ratios below show:


Common equity tier 1 capital ratio	12.53	%
Tier 1 capital ratio	12.53	%
Total capital ratio	13.22	%
Leverage ratio	8.99	%

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United Bancorp, Inc.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Liquidity

Management’s objective in managing liquidity is maintaining the ability to continue meeting the cash flow needs of its customers, such as borrowings or deposit withdrawals, as well as its own financial commitments. The principal sources of liquidity are net income, loan payments, maturing securities and sales of securities available for sale, federal funds sold and cash and deposits with banks. Along with its liquid assets, the Company has additional sources of liquidity available to ensure that adequate funds are available as needed. These include, but are not limited to, the purchase of federal funds, the ability to borrow funds under line of credit agreements with correspondent banks, a borrowing agreement with the Federal Home Loan Bank of Cincinnati and the adjustment of interest rates to obtain depositors. Management feels that it has the capital adequacy and profitability to meet the current and projected liquidity needs of its customers.

Inflation and Economic Environment

Inflation can directly impact the Company’s performance by potentially reducing the spending power of its borrowers. Higher costs continue to present a risk to the economy. The Company continues to closely monitor and analyze the higher risk segments within the loan portfolio, tracking past due accounts. Based on the Company’s capital levels, prudent underwriting policies, loan concentration diversification and our geographic footprint, senior management is cautiously optimistic that the Company is positioned to continue managing the impact of the varied set of risks and uncertainties currently impacting the economy and remain adequately capitalized. However, the Company may be required to make additional credit loss provisions as warranted by the extremely fluid economic condition.

ITEM 3 Quantitative and Qualitative Disclosures About Market Risk

Smaller Reporting Companies are not required to provide this disclosures.

ITEM 4. Controls and Procedures

The Company, under the supervision, and with the participation, of its management, including the Company’s Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to the requirements of Exchange Act Rule 13a-15. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of June 30, 2026, in timely alerting them to material information relating to the Company (including its consolidated subsidiary) required to be included in the Company’s periodic SEC filings. There were no changes in the Company’s internal controls over financial reporting that occurred during the Company’s most recent completed fiscal quarter that has materially or is reasonably likely to materially affect the Company’s internal controls over financial reporting.

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United Bancorp, Inc.

Part II – Other Information

ITEM 1. Legal Proceedings

None, other than ordinary routine litigation incidental to the Company’s business.

ITEM 1A. Risk Factors

Smaller reporting companies are not required to provide this information.

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds

ISSUER PURCHASES OF EQUITY SECURITIES


							(c)		(d)
							Total Number of		Maximum Number or
							Shares (or Units)		Approximate Dollar
		(a)					Purchased as Part		Value) of Shares (or
		Total Number of		(b)			Of Publicly		Units) that May Yet
		Shares (or Units)		Average Price Paid			Announced Plans		Be Purchased Under
Period		Purchased		Per Share (or Unit)			Or Programs		the Plans or Programs
Month #1 4/1/2026 to 4/30/2026		—			—		—		—
Month #2 5/1/2026 to 5/31/2026		14,154		$	14.93		—		—
Month #3 6/1/2026 to 6/30/2026		—			—		—		—

The Company adopted the United Bancorp, Inc. Affiliate Banks Directors and Officers Deferred Compensation Plan (the “Plan”), which is an unfunded deferred compensation plan. Amounts deferred pursuant to the Plan remain unrestricted assets of the Company, and the right to participate in the Plan is limited to members of the Board of Directors and Company officers. Under the Plan, directors or other eligible participants may defer fees and up to 50% of their annual incentive award payable to them by the Company, which are used to acquire common shares which are credited to a participant’s respective account. Except in the event of certain emergencies, no distributions are to be made from any account as long as the participant continues to be an employee or member of the Board of Directors. Upon termination of service, the aggregate number of shares credited to a participant’s account is distributed with any cash proceeds credited to the account which have not yet been invested in the Company’s stock. All purchases under this deferred compensation plan are funded with either earned director fees or officer incentive award payments. During May 2026, The Plan purchased 14,154 shares at $14.93 per share. No underwriting fees, discounts, or commissions are paid in connection with the Plan. The shares allocated to participant accounts have not been registered under the Securities Act of 1933 in reliance upon the exemption provided by Section 4(2) thereof.

ITEM 3. Defaults Upon Senior Securities

Not applicable.

ITEM 4. Mine Safety Disclosures

Not applicable.

ITEM 5. Other Information

Not applicable.

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United Bancorp, Inc.

Part II – Other Information

ITEM 6. Exhibits


EX-3.1		Amended Articles of Incorporation of United Bancorp, Inc. ⁽¹⁾

EX-3.2		Amended and Restated Code of Regulations of United Bancorp, Inc. ⁽²⁾

EX-4.1		Description of Registrant’s Common Stock ⁽³⁾

EX 4.2		Forms of 6.00% Fixed to Floating Rate Subordinated Note due May 15, 2029 ⁽⁴⁾

EX 31.1		Rule 13a-14(a) Certification – CEO

EX 31.2		Rule 13a-14(a) Certification – CFO

EX 32.1		Section 1350 Certification – CEO

EX 32.2		Section 1350 Certification – CFO

EX 101.INS		XBRL Instance Document

EX 101.SCH		XBRL Taxonomy Extension Schema Document

EX 101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document

EX 101.DEF		XBRL Taxonomy Extension Definition Linkbase Document

EX 101.LAB		XBRL Taxonomy Extension Label Linkbase Document

EX 101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

(1)	Incorporated by reference to Appendix B to the registrant’s Definitive Proxy Statement filed with the Securities and Exchange Commission on March 14, 2001.

(2)	Incorporated by reference to Exhibit 3.2 to the registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on November 18, 2016.

(3)	Incorporated by reference to Exhibit 4 to the registrant’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 20, 2020.

(4)	Incorporated by reference to Exhibit 4.1 to the registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on May 14, 2019.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	United Bancorp, Inc.

Date: August 12, 2026	By:	/s/ Scott A. Everson
		Scott A. Everson
		President and Chief Executive Officer

Date: August 12, 2026	By:	/s/ Randall M. Greenwood
		Randall M. Greenwood
		Sr Vice President and Chief Financial Officer