Corporate Profile

United Bancorp, Inc., (UBCP) is headquartered on the eastern border of Ohio along the Ohio river in the small industrial town of Martins Ferry, directly across from Wheeling, West Virginia. As one of the earliest settlements on the frontier in the late 1700's, the community developed a sense of pride, determination and courage in the face of many challenges. The Industrial Revolution dramatically altered the local economic base from agrarian to manufacturing and mining. The nearby Ohio river provided inexpensive transportation to the rest of the expanding country and where rivers were not available, railroads were built to ensure swift delivery of products.

The essence of the local economy has long been tied directly to this base of industrial manufacturing and mining and has suffered as the Information Age replaces the Industrial Age. With the closure of many local mills, manufacturing plants, coal mines and other related businesses, the local economy has struggled to adapt to changes necessary, not only to survive locally, but also to compete in a world market. Light manufacturing and high-tech industries are beginning to fill the void and are seen as essential building blocks in the foundation of a strong recovery and the growth of the economic base of the Ohio Valley.

UBCP was created as a single bank holding company in July of 1983 through the acquisition of 100% of the voting stock of The Citizens Savings Bank of Martins Ferry, Ohio. UBCP became a multi-bank holding company in December of 1986 through the purchase of 100% of the voting stock of the Citizens-State Bank of Strasburg, Ohio. Common stock of UBCP was available through over-the-counter trading until February 1994 when it began trading on The Nasdaq SmallCaps Market tier of The Nasdaq Stock Market under the trading symbol UBCP.

The Citizens Savings Bank, (Citizens-Martins Ferry), originally established as The German Savings Bank in 1902, remains the lead bank in the multi-bank holding company and continues as an integral part of the development of the commercial and residential base in Martins Ferry and other local communities. The Bank expanded its market through the construction of a full service branch banking facility six miles west in nearby Colerain, Ohio in 1974. Expansion opportunities continued in 1978 with the construction of another full service branch bank in Bridgeport, Ohio, located two miles south of Martins Ferry. A limited service auto-teller facility was opened in Martins Ferry in 1980, one block south of the former main office location. An Automated Teller Machine (ATM) began operation in nearby Aetnaville, Ohio in 1983, providing additional 24 hour limited banking services to area residents. The main banking facility outgrew the confines of its previous location and subsequently relocated in 1984 to a newly constructed 21,500 square foot addition to the auto-teller facility mentioned above.

The Citizens-State Bank of Strasburg, (Citizens-Strasburg) was also established in 1902 and enjoys a rich legacy of personalized service to customers in an area of north central Ohio whose economy is supported by agriculture and light industry. Additionally, it benefits as a 'bedroom community' for the Akron-Canton metropolitan area. Citizens-Strasburg joined the bank holding company in 1986 through acquisition of 100% of its voting stock by UBCP. To provide the locations necessary to better serve a growing market area, Citizens-Strasburg constructed a new full service banking facility in Dover, Ohio in 1990. This expansion was soon followed with the acquisition of two branch banking facilities in New Philadelphia and Sherrodsville in 1992. Additionally, a branch banking facility located in Dellroy, Ohio was acquired in 1994 This most recent acquisition brought the number of offices to five for Citizens-Strasburg and eight overall for both Banks.

In October of 1993, a separate Operations Center was opened across the street from Citizens- Martins Ferry's main office housing Data Processing, Accounting and Bookkeeping. UBCP's management embraced the concept of in-house data processing as part of a continuing effort to better manage costs and also to provide more flexibility for future development and introduction of cutting edge technologies critical to maintaining market share in a highly competitive industry. The information processing became reality in mid 1990 for the lead bank, Citizens-Martins Ferry and later in 1991 they also began data processing for Citizens-Strasburg. Again, as in the past, management realized the need for change and expanded the data processing activity into a separate Operations Center located directly across the street from the main banking center in Martins Ferry.

With the technology in place and a talented staff ready for the next challenge, management consolidated all back room support operations for both banks into the Operations Center in Martins Ferry in mid 1996. Also in mid 1996, management moved forward once again into uncharted waters with the introduction of check and statement image processing, where the customer would no longer receive their checks and deposits tickets in their statements, but would receive an image of each transaction. This new venture in banking was undertaken with the knowledge that not only would the daily routine of transaction processing change dramatically, but the customer base at all banking locations would have to be educated about the benefits of this new service. A direct marketing approach was taken with audio, video and print advertisements and direct mailings to customers promoting the new concept. The successes enjoyed by both banks during the conversion were proof that positive change can be accomplished without sacrificing the personalized service and consideration our customers deserve.

Loans by both Banks to individuals and businesses throughout the years have helped develop strong ties to the local communities and helped create many of the jobs today. Depository relationships developed over time have helped people save for the future and through the introduction of The Ohio Company Brokerage Services onsite in Martins Ferry, investment opportunities are available as well.

The Banks have maintained their importance to the communities they serve as 'family members', counselors, friends and trusted advisors. Today, as in the past, the Banks incorporate the philosophy of serving the communities they call home with products and services specific to the needs of each market. Additionally, new products and banking concepts are introduced to help keep pace with the ever changing methods of banking in today's global market.

Management is deeply committed to providing the best possible banking service to individuals, businesses and municipalities while at the same time increasing the value of shareholder investment. The development and implementation of new technologies creates opportunities to better serve customer needs in cost efficient ways that still enable us to maintain more personalized customer relationships not evident in so many of today's financial institutions. Our goal is to continue the development of better banking services in concert with promoting our customers best interests. This marriage of new technology and old fashioned concern for our communities has been successful in the past and will hopefully maintain the steady growth in value of our stock providing the expected appreciation in value to our shareholders.

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