Overview

• U.S. regional bank's Q1 net income and EPS rose modestly yr/yr

• Net interest income and margin increased, aided by higher interest-earning assets and lower interest expense

• Company raised regular cash dividend and paid a special dividend in Q1

Outlook

• Company expects positive trends in net interest income and margin to continue in 2026

• United Bancorp expects investments in infrastructure to yield higher earnings over 12-24 months

• Company anticipates new technology and support functions will be fully implemented by year-end

Result Drivers

• DEPOSIT GROWTH - Co said growth in total deposits, especially lower-cost funding, drove increase in interest-earning assets and supported higher net interest income

• INTEREST EXPENSE DECLINE - Co attributed decrease in total interest expense to downward repricing of core deposits and maturity of a high-rate FHLB advance

• NONINTEREST INCOME - Unified Mortgage Division and treasury management services contributed to higher noninterest income in Q1

Company press release: ID:nACSSwB7Xa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 EPS		$0.33
Q1 Basic EPS		$0.33
Q1 Net Interest Margin		3.72%

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• Wall Street's median 12-month price target for United Bancorp Inc is $20.00, about 25% above its May 6 closing price of $16.00

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

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