#United States #stock repurchase #Atmore #United Bancorporation #Financial Holding

United Bancorporation of Alabama, Inc. Announces Renewal of Stock Repurchase Program

On May 14, 2025, United Bancorporation of Alabama, Inc. (OTCQX: UBAB) unveiled an important update from its Board of Directors regarding its ongoing financial strategies. The corporation has rolled out a renewed stock repurchase program designed to buy back a substantial number of its shares, emphasizing its commitment to enhancing shareholder value amidst favorable market conditions.

The approved stock repurchase program allows United Bancorporation to reacquire up to 337,380 shares, which corresponds to around 10% of its existing common stock. This initiative is set to remain in place until May 13, 2026, and is fundamentally aimed at supporting the company's market presence and investor confidence. The management will make decisions on repurchases at their discretion, ensuring that these actions are beneficial for both the corporation and its shareholders while being in compliance with the regulations laid out by the Securities and Exchange Commission (SEC).

Underlying Factors Guiding Repurchases

Management's approach to the repurchase will take into account various factors, including:
1. Market pricing: Shares will be bought back when pricing is deemed attractive.
2. Alternative capital uses: In assessing repurchase opportunities, the management will consider other potential avenues for deploying capital effectively.
3. Company's financial performance: Sound financial results will support the decision-making process for share buybacks.
4. General market conditions and stock availability: The company will monitor wider market factors that could affect stock purchases.

The repurchase program stipulates that shares might be acquired through both open market purchases and negotiated transactions, abiding by the applicable legal and regulatory frameworks. Additionally, the program accommodates the possibility of engaging in trading plans as per Rule 10b5-1 if deemed appropriate. It's important to note that the program is not rigid; it can be suspended, modified, or terminated at any moment based on evolving corporate objectives or market scenarios.

About United Bancorporation of Alabama, Inc.

Founded as a financial holding company with assets totaling $1.4 billion, United Bancorporation serves as the parent firm for United Bank and UB Community Development. Primarily focused on regions in Southwest Alabama and Northwest Florida, the company holds a special designation as a Community Development Financial Institution (CDFI). This designation underscores its commitment to fostering economic development within underserved communities.

The corporation operates 23 branches across six counties, addressing various community needs through programs that encourage economic growth and affordable housing initiatives. The subsidiary, UB Community Development, plays a pivotal role by leveraging New Markets Tax Credits to improve community facilities, thereby enhancing the regional living standards.

For those interested in a detailed account of United Bancorporation's financial standings, a comprehensive quarterly report is available on their official website, www.UnitedBank.com. Furthermore, as a member of the FDIC, the corporation ensures that it operates with the utmost integrity and security in safeguarding its customers' deposits.

The announcement of this renewed stock repurchase program reflects the company’s proactive stance in managing its capital structure while continuing to deliver long-term shareholder value. Additionally, these measures are likely to generate positive responses from potential investors looking at the ongoing performance and commitment of the corporation towards its shareholders.