Quarterly Report for Quarter Ending March 31, 2026 (Form 10-Q)

United Bancorp, Inc.

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

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, March 31, 2026, our Company's nonaccrual loans and loans past due thirty-plus days totaled $6.8 million (or, 1.36% of gross loans), which was an increase of $4.0 million year-over-year. On a linked-quarter basis, our level of nonaccrual loans and loans past due thirty-plus days declined by $416,000, or 5.7%, from $7.2 million. 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, which is presently not impaired, 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 decreased by ($560,000) year-over-year to a level of $344,000 or 0.07% of gross loans. Accordingly, we believe that our overall credit quality is extremely sound and this single relationship is not indicative of a systemic increase of 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 ($16,000) in the first quarter of this year, which on an annualized basis is (0.01%) of average loans and in-line with both the previous year and peer. In addition, our Company remains very well capitalized by regulatory standards with regulatory capital (stockholders' equity plus accumulated other comprehensive loss) of $75.3 million or 8.8% of average assets, which is an increase of $2.0 million, or 2.7%, year-over-year.

With a 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 first quarter ending March 31, 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. I am very happy to report that we opened our newest banking center, a regional hub in the appealing market of Wheeling, West Virginia, on December 9, 2025. As of the end of the first quarter, this office has already exceeded our first-year forecast for loan growth and is roughly two-thirds of the way to achieving our first-year forecast for deposit growth… all within the first three months of operation! 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 continue to scale this function with the addition of mortgage loan originators and with the positive operating leverage that presently exits 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 quarter 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 March 31, 2026.

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--- both 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 Customer Care Center that will also be housed at this facility. The Customer 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 Customer 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 Customer Care Center, for in person consultations with our skilled team members. By having a

United Bancorp, Inc.

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

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 Customer 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 first quarter of this year, UBCP, once again, paid both a regular cash dividend and a special cash dividend to our valued owners. With these first quarter payouts, the regular cash dividend increased year-over-year by $0.01, or 5.5%, to a level of $0.1925. In addition, the special cash dividend paid in the first quarter was $0.175. On a combined basis, the total dividend payment to our shareholders in the first quarter of this year totaled $0.3675 and was paid on March 20^th. At these current dividend payout levels, the forward yield produced by our regular cash dividend is 5.1% and, inclusive of the special dividend, the forward yield is 6.2%, considering our quarter-ending fair market value as of March 31, 2026 of $15.21. On a year-over-year basis, the fair market value of our Company's stock increased by $1.79 or 13.3%.

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 the return on these investments that we are currently making 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 quarter of 2026. Over the course of 2026, we anticipate these positive trends will continue. We are truly excited about UBCP's direction and the potential that it brings. With an ongoing focus on continual process improvement, product development and delivery, we strongly believe that the future for our Company is exceedingly bright.

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.

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.

United Bancorp, Inc.

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

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 March 31, 2026, gross loans were $500.3 million, compared to $491.6 million at December 31, 2025, an increase of $8.8 million after offsetting repayments for the period. The overall increase in the loan portfolio was comprised of a $11.4 million increase in commercial and commercial real estate loans a $2.3 million decrease in real estate lending and a $316,000 decrease in installment loans since December 31, 2025.

Commercial and commercial real estate loans comprised 81.2% of total loans at March 31, 2026, compared to 80.4% at December 31, 2025. Commercial and commercial real estate loans have increased $11.4 million, or approximately 2.9% 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 1.3% of total loans at March 31, 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 $316,000, or 4.58%, since December 31, 2025. The targeted lending areas encompass four separate metropolitan areas, minimizing the risk to changes in economic conditions in the communities housing the Company's banking locations.

Residential real estate loans were 17.5% of total loans at March 31, 2026 and 18.2% at December 31, 2025, representing a decrease of $2.3 million, or 2.55% since December 31, 2025.

The allowance for credit losses totaled $4.3 million at March 31, 2026, which represented 0.85% of total loans. The allowance represents the amount which management and the Board of Directors estimates is adequate to provide for probable losses inherent in the loan portfolio. The allowance balance and the provision charged to expense are reviewed by management and the Board of Directors monthly using a risk evaluation model that considers borrowers' past due experience, economic conditions and various other circumstances that are subject to change over time. Management believes the current balance of the allowance for credit losses is adequate to absorb credit losses over the life of the loan portfolio. Net loan (recoveries) charge-offs (exclusive of overdrafts net charge-offs of $24,000) for the three months ended March 31, 2026 were approximately $17,000. Net loans charged off (exclusive of overdrafts net charge-offs $25,000) was $28,000 for the three months ended March 31, 2025.

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 March 31, 2026 increased approximately $2.1 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 March 31, 2026, total core deposits (interest and non interest bearing accounts and savings) increased approximately $25.3 million, or 3.9% from December 31, 2025 totals. The Company's savings accounts decreased $1.6 million or 1.3% from December 31, 2025 totals. The Company's interest-bearing and non-interest bearing demand deposits increased $13.4 million while certificates of deposit under $250,000 increased by $7.1 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 March 31, 2026, certificates of deposit greater than $250,000 increased $3.2 million or 7.8%, 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 increased approximately $6.2 million from December 31, 2025 totals. At March 31, 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 March 31, 2026 and 2025

Net Income

The reported diluted earnings per share was $0.33 for the quarter ended March 31, 2026 compared to $0.32 for the quarter ended March 31, 2025, an increase of 3.1%.

Net Interest Income

Net interest income increased $264,000 or 4.2% for the three months ended March 31, 2026 compared to the same period in 2025.

Provision for Credit Losses

The Company had a provision for credit losses of $30,000 and $96,000 for the three months ended March 31, 2026 and 2025, respectively.

United Bancorp, Inc.

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

Noninterest Income

Noninterest income of the Company increased $144,000 year-over-year. This increase was in part due to an increase in earnings on bank-owned life insurance of $232,000 for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025.

Noninterest Expense

The Company saw its noninterest expense increased by $569,000 or 10.2% year-over-year. Salaries and benefits increased $167,000 or 5.9% quarter over quarter. Occupancy expense increased $181,000 or 28.7% mainly due to the opening of the Wheeling West Virginia location in the fourth quarter of 2025. Data processing and related electronic services increased $147,000 or 40.2% mainly related to the investment in Technology, Digital Transformation project that started in 2025 and continues into 2026.

Federal Income Taxes

The benefit for federal income taxes was $160,000 for the three months ended March 31, 2026. The Company had a federal income tax benefit of $26,000 for the three months ended March 31, 2025.

Capital Resources

Internal capital growth, through the retention of earnings, is the primary means of maintaining capital adequacy for the Company. Stockholders' equity totaled $67.5 million at March 31, 2026, compared to $70.5 million at December 31, 2025, a $3.0 million decrease. Total stockholders' equity in relation to total assets was 7.86% at March 31, 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.

Current regulations require 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:

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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.

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