United Bancorp, Inc. — 2021 Form 10-K
Reporting period: Fiscal year ended December 31, 2021. United Bancorp is an Ohio bank holding company operating through Unified Bank, with 19 branches serving eastern and central/southeastern Ohio and the Northern Panhandle of West Virginia.
Financial condition and performance
The supplied filing text does not provide clear 2021 consolidated revenue, net income, cash flow, net interest margin, total deposits, total assets, or detailed liquidity figures. The audited statements and management discussion are incorporated by reference from the 2021 Annual Report; consult that report for those measures. Available figures below are in millions unless noted.
| Metric | 2021 | Prior comparison |
|---|---|---|
| Gross loans outstanding | $454.4 | $443.5 in 2020; up about 2.5% |
| Allowance for loan losses | $3.7 | $5.1 in 2020 |
| Provision for loan losses | Credit of $1.255 | Expense of $3.337 in 2020 |
| Net charge-offs | $0.185; 0.04% of average loans | $0.455; 0.10% in 2020 |
| Nonaccrual loans | $4.209; 0.64% of loans | $0.626; 0.19% in 2020 |
| Uninsured deposits | Approximately $89.9 | $77.9 in 2020; $62.8 in 2019 |
| Available-for-sale securities | $146.3 estimated fair value | Prior-year value not stated in the supplied text |
The allowance equaled 87.27% of nonperforming loans, versus 816.43% in 2020, reflecting the increase in nonaccrual loans and lower allowance. The Bank was reported well-capitalized under prompt-corrective-action standards and above minimum regulatory capital requirements; specific ratios are not stated in the supplied text.
Material changes and portfolio details
- Credit indicators were mixed: net charge-offs declined, and the company recorded a provision credit, while nonaccrual loans increased substantially year over year. Management reported no additional potential problem loans beyond those already disclosed.
- Commercial and commercial real estate loans totaled $357.7 million in the maturity schedule, including $266.8 million of commercial real estate loans. For these loan categories due after one year, $272.4 million had variable rates and $73.8 million fixed rates.
- Uninsured deposits increased by approximately $12.0 million from 2020. Time deposits over $250,000 totaled $4.4 million, mostly maturing within three months.
Outlook, risks and other matters
- The filing provides no specific earnings guidance or quantified outlook in the supplied text. Management’s discussion is incorporated by reference rather than reproduced here.
- Key disclosed risks include credit quality and allowance-estimation uncertainty, competition for loans and deposits, interest-rate and monetary-policy sensitivity, regulatory requirements, and cybersecurity and consumer-compliance obligations.
- The company reported no material legal proceedings beyond routine litigation. Unified Bank was subject to ordinary regulatory oversight; management was unaware of conditions that could lead to termination of deposit insurance.
- During the fourth quarter, 2,923 shares were purchased at an average $15.99 per share for participant accounts under the deferred compensation plan—not under a publicly announced repurchase program.
- Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2021. The filing did not include an auditor attestation on internal controls.
Important facts for investors to verify
- Review the incorporated 2021 Annual Report for net income, revenue, net interest margin, cash flows, year-end deposits and borrowings, and full liquidity and capital ratios.
- Examine the nature, collateral, and subsequent performance of the $4.2 million in nonaccrual loans, and the basis for reducing the allowance to $3.7 million.
- Assess uninsured deposit concentration, retention, and funding alternatives, along with exposure to large time deposits and deposit competition.
- Confirm that loan maturity, variable-rate, and commercial real estate concentrations are consistent with the company’s risk tolerance and interest-rate exposure.