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United Bancorporation of Alabama, Inc. Announces First Quarter Results

United Bancorporation of Alabama, Inc. has released its financial statements for the first quarter ending March 31, 2025. The report reveals consolidated net income of $4.7 million, translating to earnings per share of $1.42. This marks a decline from the previous year's net income of $6.3 million or earnings per share of $1.75 for the same quarter. Despite the decrease, several key highlights reflect the company’s ongoing resilience and commitment to community impact.

Financial Highlights

Key Metrics

• - Net Income: $4.7 million
• - Earnings Per Share: $1.42
• - Net Interest Margin: 4.54%
• - New Markets Tax Credit Fee Income: $1.0 million
• - Provision: $1.5 million

United Bancorporation has a solid track record of serving the financial needs of the communities within its reach, which includes Southwest Alabama and Northwest Florida. As of now, the organization operates 23 locations across six counties, providing essential banking services alongside its subsidiaries, such as UB Community Development.

Commitment to Economic Development

United Bancorporation is more than a financial institution; it plays a crucial role in stimulating economic growth, especially within underserved regions. The company is designated as a Community Development Financial Institution (CDFI), which allows it to focus on community development through various initiatives. This includes creating affordable housing solutions and facilitating community facilities programs via New Markets Tax Credits. As businesses and families continue to face economic challenges, United Bancorporation's efforts are fundamental in fostering financial inclusivity and support.

A Look Ahead

Despite the dip in profits compared to last year’s figures, the financial standing of United Bancorporation remains robust. The net interest margin of 4.54% is an encouraging indicator of the company’s ability to manage its interest income and expenses effectively. Additionally, the institution’s provision for credit losses remained at $1.5 million, showcasing a prudent approach towards risk management in these uncertain economic times.

Investors and stakeholders are encouraged to look for a complete quarterly report, which can be accessed through their website. The leadership team expresses confidence in the company’s strategies to navigate through market fluctuations and continue serving their clientele effectively.

Conclusion

The first quarter results serve as a reminder of United Bancorporation's commitment to its mission and community. Even in a challenging financial landscape, they remain dedicated to not only shaping positive change but also ensuring their operations benefit those who need it the most. For further insights, stakeholders should follow updates on their various programs and continue to watch for future earnings reports.

This is only a glimpse into what United Bancorporation of Alabama, Inc. is achieving and their future potential as they adapt to the evolving financial environment with resilience and purpose.