United Bancorp, Inc. operates as the bank holding company for Unified Bank that engages in the business of commercial and retail banking in Belmont, Harrison, Jefferson, Tuscarawas, Carroll, Athens, Hocking, and Fairfield counties and the surrounding localities.
The company serves customers in northeastern, eastern, southeastern and south central Ohio and the Northern panhandle of West Virginia. The company also operates in Marshall County West Virginia. The company provides a broad range of ba...
United Bancorp, Inc. operates as the bank holding company for Unified Bank that engages in the business of commercial and retail banking in Belmont, Harrison, Jefferson, Tuscarawas, Carroll, Athens, Hocking, and Fairfield counties and the surrounding localities.
The company serves customers in northeastern, eastern, southeastern and south central Ohio and the Northern panhandle of West Virginia. The company also operates in Marshall County West Virginia. The company provides a broad range of banking and financial services, which includes accepting demand, savings and time deposits and granting commercial, real estate and consumer loans. The company conducts its business through its main office and stand alone operations center in Martins Ferry, Ohio and branches located in the counties.
Loan Portfolio
As of December 31, 2023, the company’s loan categories included commercial and industrial; commercial real estate; residential real estate; and consumer.
Commercial and Industrial
Commercial and industrial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. Most commercial and industrial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and may include a personal guarantee. Short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers.
Commercial Real Estate
Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The characteristics of properties securing the company’s commercial real estate portfolio are diverse, but with geographic location almost entirely in the company’s market area. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. In general, the company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner-occupied commercial real estate versus nonowner-occupied loans.
Residential and Consumer
Residential and consumer loans consist of two segments - residential mortgage loans and personal loans. For residential mortgage loans that are secured by 1-4 family residences and are generally owner-occupied, the company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and consumer personal loans are secured by consumer personal assets, such as automobiles or recreational vehicles. Some consumer personal loans are unsecured, such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas, such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers.
Deposits
The company’s deposits include demand deposits, savings accounts, NOW accounts and certain money market deposits.
Investment Portfolio
As of December 31, 2023, the company’s investment portfolio included U.S. government agencies; subordinated notes; and state and municipal obligations.
Regulatory Agencies
The company is a registered bank holding company and is subject to inspection, examination and supervision by the Board of Governors of the Federal Reserve System (the Federal Reserve) pursuant to the Bank Holding Company Act of 1956, as amended.
The bank is an Ohio chartered commercial bank. The bank is subject to regulation and examination by both the Ohio Division of Financial Institutions (the ODFI) and the Federal Deposit Insurance Corporation (the FDIC).
As a holding company incorporated and doing business within the state of Ohio, the company is subject to regulation and supervision under the Bank Holding Act of 1956, as amended (the Act). The company is required to file with the Federal Reserve on quarterly basis information pursuant to the Act.
The company is required to obtain prior approval from the Federal Reserve for the acquisition of more than five percent of the voting shares or substantially all of the assets of any bank or bank holding company. In addition, the company is generally prohibited by the Act from acquiring direct or indirect ownership or control of more than five percent of the voting shares of any company which is not a bank or bank holding company and from engaging directly or indirectly in activities other than those of banking, managing or controlling banks or furnishing services to its subsidiaries.
The bank is regulated by the ODFI, as well as the FDIC. The regulatory agencies have the authority to regularly examine Unified, which is subject to all applicable rules and regulations promulgated by its supervisory agencies. In addition, the deposits of the bank are insured by the FDIC to the fullest extent permitted by law.
As an FDIC-insured institution, the bank is required to pay deposit insurance premium assessments to the FDIC. The bank is also subject to federal regulation as to such matters as the maintenance of required reserves against deposits, limitations in connection with affiliate transactions, limitations as to the nature and amount of its loans and investments, regulatory approval of any merger or consolidation, issuance or retirement by Unified of its own securities and other aspects of banking operations. In addition, the activities and operations of Unified are subject to a number of additional detailed, complex and sometimes overlapping laws and regulations. These include state usury and consumer credit laws, state laws relating to fiduciaries, the Federal Truth-in-Lending Act and Regulation Z, the Federal Equal Credit Opportunity Act and Regulation B, the Fair Credit Reporting Act, the Truth in Savings Act, the Community Reinvestment Act, anti-redlining legislation, and antitrust laws.
History
United Bancorp, Inc. was founded in 1902. The company was incorporated in 1983.
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