United Bancorp Q3 net income up 6.1% due to asset growth

    Overview

    * United Bancorp (UBCP) Q3 net income rises 6.1% yr/yr, diluted EPS up 9.7%
    * Company's net interest income grows 9.6% yr/yr, driven by asset expansion
    * Company maintains strong credit metrics despite increased provision for credit losses


    Outlook

    * United Bancorp (UBCP) anticipates continued growth in net interest income and margin this year
    * Company expects loan growth to boost interest income in Q4
    * Economic uncertainty from trade policies and government shutdown may impact results


    Result Drivers

    * ASSET GROWTH - Growth in total assets, particularly from gross loans and cash reserves, drove net interest income expansion
    * INVESTMENT STRATEGY - Investment of excess reserves into municipal securities with high yields contributed to interest income
    * CREDIT METRICS - Despite economic uncertainties, the company maintained strong credit metrics with low nonperforming assets


    Key Details



 Metric    Beat/Mis  Actual    Consensu
           s                   s
                               Estimate


 Q3 EPS              $0.34
 Q3 Basic            $0.34
 EPS

    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 (UBCP) is $20.00, about 37.2% above its November 5 closing price of $12.55
    * The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago

    Press Release:
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)