| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 30.97 | 123 |
| Intrinsic value (DCF) | 14.20 | 2 |
| Graham-Dodd Method | 4.17 | -70 |
| Graham Formula | 20.58 | 48 |
United Bancorp, Inc. (NASDAQ: UBCP) is a regional bank holding company operating through its subsidiary, Unified Bank, providing commercial and retail banking services primarily in Ohio and West Virginia. Founded in 1902 and headquartered in Martins Ferry, Ohio, the company offers a range of financial products, including demand, savings, and time deposits, as well as commercial, residential real estate, and consumer loans. With a network of banking offices across multiple counties in Ohio and West Virginia, United Bancorp serves local communities with a focus on personalized banking solutions. The company’s strong regional presence and conservative financial management underscore its stability in the competitive regional banking sector. As a small-cap financial institution, United Bancorp emphasizes relationship-driven banking, catering to both businesses and individuals in its service areas. Its commitment to local markets and steady dividend payouts make it a notable player in the regional banking landscape.
United Bancorp (UBCP) presents a conservative investment opportunity with a low beta (0.359), indicating lower volatility compared to the broader market. The company’s steady revenue ($29.26M) and net income ($7.4M) reflect stable operations, supported by a solid EPS ($1.25) and consistent dividend payouts ($0.74 per share). However, its small market cap (~$78.86M) and regional focus limit growth potential compared to larger banks. The company’s strong liquidity position ($19.6M cash) and manageable debt levels ($132.2M) suggest financial resilience, but investors should weigh its niche market exposure against broader economic risks affecting regional banks, such as interest rate fluctuations and local economic downturns.
United Bancorp’s competitive advantage lies in its deep-rooted community banking model, fostering strong customer relationships in its Ohio and West Virginia markets. Unlike larger national banks, UBCP benefits from localized decision-making and personalized service, which enhances customer retention. However, its small scale limits its ability to compete with larger regional and national banks in terms of technological advancements, product diversification, and pricing power. The company’s conservative lending practices and low-risk profile provide stability but may constrain revenue growth in a rising-rate environment. While Unified Bank’s regional focus insulates it from some competitive pressures, it also makes the business susceptible to localized economic downturns. UBCP’s competitive positioning is further challenged by fintech disruptors and larger banks expanding into rural markets, though its established presence and trust within its communities remain key differentiators.