Evaluate Research Releases Initiation Report on United Bancorp, Inc.
MARTINS FERRY, Ohio, Dec. 10, 2019 /PRNewswire/ -- On November 5, 2019, Evaluate Research released an Initiation Report on United Bancorp, Inc. (NASDAQ: UBCP). With Strong Growth & Fundamentals @ 4.8% Div Yield, 9x P/E, United Bancorp is in a "sweet spot" in its life cycle in terms of strong organic and acquisition-related growth, resulting in exceptionally strong EPS and dividend growth, and a benign supportive external environment which is providing some favorable tailwinds. UBCP is both undiscovered and undervalued, with Evaluate Research the only firm now covering the stock. UBCP is firing on all cylinders with surging EPS growth last year as well as the current year.
For 2019, UBCP has reported a 37% increase in net income and 24% growth in EPS for the nine months YTD. This strong EPS growth has been fueled by a 29% YoY increase in higher-yielding earning assets [including 7.1% loan growth], which has resulted in a 30% increase in YTD interest income. In addition to excess liquidity and being underleveraged, UBCP remains well capitalized with 16.1% total capital to risk-weighted assets, including 10.5% in Tier 1 capital. A low level of NPL/Assets of 0.23% and chargeoffs at only 0.06%, has produced an 11.2% ROE and a 1.05% ROA so far in 2019. And, all this is with a very conservative BS and leverage, as the loans-to-deposits are only at 76%, versus a more optimal target level of around 90%, which suggests ample room to further increase earnings going forward.
UBCP represents a compelling mix of rapid EPS growth, strong capital and liquidity metrics, low levels of NPL's, an exceptionally high dividend, and an experienced management team focused on growth, shareholder return and the stock price. Amazingly, UBCP [including its operating subsidiaries] has had only five CEO's during its entire 117 year operating history, and our multiple discussions with the CEO, CFO and senior management suggests confident optimism. Indeed, according to Scott Everson, CEO for the past 17 years, "We continue to be extremely optimistic about our future prospects as it relates to growing the market value of our stock, our company's overall market capitalization and your individual shareholder value. By continuing to drive and improve our earnings in the coming year, as we optimistically anticipate, we are extremely hopeful that our company's stock will trade at a higher valuation than we are currently seeing in today's market!"
Read the full report: Link to United Bancorp, Inc./Evaluate Research Report
United Bancorp, Inc. is headquartered in Martins Ferry, Ohio and has total assets of $675.8 million and total shareholder's equity of $60.1 million as of September 30, 2019. Through its single bank charter, Unified Bank, the Company has nineteen banking centers that serve the Ohio Counties of Athens, Belmont, Carroll, Fairfield, Harrison, Jefferson and Tuscarawas. The Company also operates a Loan Production Office in Wheeling (Ohio County), WV and has begun construction on a new full-service banking center in Moundsville (Marshall County), WV, which is scheduled to open sometime in the early second quarter of 2020. United Bancorp, Inc. trades on the NASDAQ Capital Market tier of the NASDAQ Stock Market under the symbol UBCP, Cusip #909911109.
SOURCE United Bancorp, Inc.
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