#USA #Atmore #United Bancorporation #Blue Hill Advisors #Activist Shareholders

United Bancorporation of Alabama Addresses Recent Activist Demands

On September 9, 2026, United Bancorporation of Alabama, Inc. (OTCQX: UBAB) made a public response concerning demands from two activist groups, Merion Road Capital Management and Blue Hill Advisors LLC. Together, these entities claim to own roughly 2% of United's outstanding shares. In their statement, United’s leadership emphasized their unwavering dedication toward fulfilling the interests of all shareholders, including the vast majority who have not aligned themselves with the newly formed activist group.

United Bancorporation has pointed out that over the past five years, their commitment to long-term value creation has yielded significant success, with total stockholder returns exceeding 129%. This figure highlights the company’s robust financial health, which includes returning $41 million to shareholders via dividends and stock repurchases in the previous two years. The company maintains a strategy focused on increasing loan and deposit growth while achieving superior profitability in the market.

A crucial point from the company's statement is their ongoing commitment to listening and engaging with their investors. Earlier communications with the activist group included a video call on August 31, during which no request was made for the group to join the Board of Directors. However, mere hours after their conversation, the activist representatives sent an email urgently requesting to be considered for board positions, demanding a response within seven days. United Bancorporation criticized this demand as unreasonable, arguing that it disregarded standard director candidate vetting protocols, which they believe would undermine the company’s governance structure and the interests of the 98% of shareholders not involved with the activist group.

The Board of Directors has pledged to evaluate its composition consistently, ensuring that the skills and experiences present align with the wider goals of all stockholders. They intend to approach the requests made by the activist group according to their existing corporate governance frameworks. Despite acknowledging that dialogue can continue, they have deemed it unnecessary and counterproductive to repeatedly respond to every shift in the activist group's statements and demands.

United Bancorporation conveyed a sense of reassurance to its shareholders, indicating no immediate action is required on their part in light of the ongoing discourse. The firm aims to maintain a balanced, disciplined approach in its capital allocation while being prepared to seize any inorganic growth opportunities as they arise.

About United Bancorporation of Alabama

United Bancorporation of Alabama, Inc. operates as a financial holding company with assets totaling $1.4 billion. It is the parent organization of United Bank and UB Community Development, primarily serving areas across Southwest Alabama and Northwest Florida. Designated as a Community Development Financial Institution (CDFI), United is dedicated to fostering economic growth in underserved sectors. Currently, the bank runs 23 locations across six counties in Alabama and Florida and aims to promote development via various community initiatives, including the New Markets Tax Credits initiative.

Investors interested in additional insights into their quarterly performance can visit the investor relations section on their website at www.UnitedBank.com, where they can access comprehensive reports. United Bancorporation is a member of the FDIC, ensuring secure transactions and deposit safety for its clients. Their strong history of prioritizing shareholder interests combined with proactive communication represents a solid foundation moving forward.