United Bancorp, Inc. · NASDAQ:UBCP
United Bancorp — Merger or Acquisition (June 2018)
13 slides from United Bancorp's merger presentation, Jun 14, 2018
Slide 1: United Bancorp, Inc. Acquisition of Powhatan Point Community Bancshares, Inc.
. United Bancorp, Inc. AcoUNDER CONSTRUCTION Powhatan Point Community Bancshares, Inc. a May ____, 2018 Exhibit 99.2
Slide 2: United Bancorp, Inc. Acquisition of Powhatan Point Community Bancshares, Inc.
United Bancorp, Inc. Acquisition of Powhatan Point Community Bancshares, Inc. June 14, 2018
Slide 3: Additional Information about the transaction
Additional Information about the transaction United Bancorp, Inc. (“UBCP”) intends to file a registration statement on Form S-4 with the Securities and Exchange Commission (SEC), which will include a prospectus relating to the UBCP shares to be issued in the transaction, a proxy statement for a shar
Slide 4: Cautionary Note Regarding Forward-looking statements
Cautionary Note Regarding Forward-looking statements This presentation may contain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements about our expectations, beliefs, plans, strategies, predictions, forecasts, objectives or as
Slide 5: United Bancorp, Inc. to acquire First National Bank of Powhatan Point
United Bancorp, Inc. to acquire First National Bank of Powhatan Point Transaction overview United Bancorp, Inc. (“UBCP”) will acquire Powhatan Point Community Bancshares, Inc. (“Powhatan Point”), the bank holding company for First National Bank of Powhatan Point (“First NB”), a community bank based
Slide 6: UBCP to Pro Forma Branch Map
UBCP to acquire Powhatan Point Pro Forma Branch Map
Slide 7: Investment Highlights
Investment Highlights First National bank PROFILE Financial Stability & Asset Quality ● Consistent core profitability - at approximately 0.50% ROAA from 2013 – 2017 (ROAA measured 0.61% for the last 12-months ending March 31, 2018) ● Appropriately leveraged - Tier 1 = 8.92% at 03/31/2018 ● NPAs to a
Slide 8: Regional Economic Developments
Regional Economic Developments OHIO VALLEY REGION Overall the past decade, the Marcellus and Utica shales area (located in the Appalachian Basin) has increased gross natural gas output in Eastern Ohio, Western Pennsylvania and the Northern Panhandle of West Virginia. The petrochemical industry is gr
Slide 9: Unified Bank / First National Bank of Powhatan Point Loan Mix
Unified Bank / First National Bank of Powhatan Point Loan Mix Balance % of Balance % of Balance % of ($000) Total ($000) Total Combined Banks ($000) Total Construction $5,337 1.4% Construction $0 0.0% Construction $5,337 1.4% Farm Loans $387 0.1% Farm Loans $0 0.0% Farm Loans $387 0.1% 1-4 Family $1
Slide 10: Unified Bank / First National Bank of Powhatan Point Deposit Mix
Unified Bank / First National Bank of Powhatan Point Deposit Mix Balance % of Balance % of Balance % of ($000) Total ($000) Total Combined Banks ($000) Total Noninterest Bearing $66,419 16.4% Noninterest Bearing $18,668 34.8% Noninterest Bearing $85,087 18.5% NOW, MMDA, Savings $269,066 66.4% NOW, M
Slide 11: Transaction Value and Terms
Transaction Value ● $6.8 million ● Based on UBCP closing price of $13.05 on June 13, 2018 ● Powhatan Point outstanding common shares: 52,955 Consideration Mix ● Approximately 70% in UBCP stock and 30% in cash ● Shareholders will receive 6.9233 shares of UBCP stock and $38.75 per share in cash for ea
Slide 12: UBCP to Transaction Multiples / Pro Forma Impact
June 13, 2018 ($6.8 million deal value) Price/TBV (03/31/2018) (1) 132% Price/LTM Earnings (03/31/2018) (2) 20.5 Expected Year 1 EPS Accretion 6.2% Expected Year 2 EPS Accretion 7.7% TBV Payback Period 2.2 years Implied IRR (assumes 10x terminal P/E) 24.6% Based on tangible consolidated equity of $5
Slide 13: Summary observations
UBCP to acquire Powhatan Point Summary observations Geographic Fit: Natural extension of UBCP’s footprint in Belmont County improving pro forma deposit market share to 15.9% Low Execution Risk: Management continuity Both UBCP and Powhatan Point use same core data processing vendor Single office, tra