On a per share basis, the company’s basic earnings were $0.57 for 2007, as compared to $0.45 for 2006, an increase of 27%. United Bancorp’s fourth quarter 2007 earnings, which included an additional loan loss provision of $150,000 and $70,000 charter merger expenses were unchanged at $0.15 compared to the fourth quarter of 2006.
During 2007, the company has recorded costs of $230,000 relating to the consolidation of its banking subsidiaries in addition to the above mentioned loan loss provision. On an after tax basis, these expenses amounted to approximately $0.05 per share for 2007. Without these costs, the company’s earnings per share for 2007 would have been further enhanced to reflect $0.62 compared to $0.45 for 2006, an increase of 38%.
Randall Greenwood, senior vice president, CFO and treasurer, said: We believe the 2007 results of operations will compare very favorably with our peers in the banking industry. Moreover, with the recent reduction in short term interest rates by the Federal Reserve, we are projecting further improvement in the company’s net interest margin in the first quarter of 2008.
