Overview

• US community bank's Q2 net income and diluted EPS rose about 9% yr/yr

• Net interest income and margin increased, aided by deposit growth and lower interest expense

Outlook

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

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

• Company anticipates full implementation of new technology and support functions by year-end

Result Drivers

• DEPOSIT GROWTH & LOWER INTEREST EXPENSE - Co said higher deposit balances, especially in lower-cost funding, and a decrease in total interest expense supported increases in net interest income and margin

• NONINTEREST INCOME - Unified Mortgage Division and Treasury Management services contributed to higher noninterest income

• INFRASTRUCTURE & TECHNOLOGY INVESTMENT - Co said ongoing investments in infrastructure and technology increased expenses and are currently dilutive to earnings, but expected to support future growth

Company press release: ID:nACSV1M90a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 EPS		$0.36
Q2 Basic EPS		$0.36
Q2 Net Interest Margin		3.82%

Analyst Coverage

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

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for United Bancorp Inc is $20.00, about 26.3% above its July 22 closing price of $15.83

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

Reuters Recommended Reads

• July 22 - Norwood Financial posts record Q2 net income, net interest income

• July 22 - Univest Financial Q2 net income rises on higher net interest income

• July 23 - Dime Community Bancshares Q2 revenue hits record on loan growth

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