United Bancorporation of Alabama, Inc. Announces First Quarter Results

Rhea-AI Summary

United Bancorporation of Alabama reported a net income of $2.8 million for Q1 2022, down from $3.5 million in Q1 2021. Earnings per share decreased to $0.76 from $0.96. Total assets grew to $1.2 billion, reflecting a 26.2% increase year-over-year. Loans and securities saw significant growth, up 20.5% and 75.6% respectively. However, shareholder equity experienced a 9.6% decline due to unrealized losses in the securities portfolio. Regulatory capital ratios remain strong with tier one capital ratio at 14.2% as of March 31, 2022.

Positive

• Total assets increased by $248.7 million or 26.2% from the previous year.
• Loans and securities grew by $113.1 million or 20.5%, and $126.4 million or 75.6%, respectively.

Negative

• Net income decreased by $700,000 compared to the same quarter last year.
• Earnings per share declined from $0.96 to $0.76.
• Shareholder equity fell by $10.6 million or 9.6% from the prior quarter due to unrealized losses.

ATMORE, Ala., April 26, 2022 /PRNewswire/ -- (OTCQX: UBAB)- United Bancorporation of Alabama, Inc., parent company of United Bank, Town-Country United Bank, and UB Community Development announces its financial results for the first quarter ended March 31, 2022.  United reported unaudited consolidated net income of $2.8 million for the three months ended March 31, 2022 as compared to net income of $3.5 million for the same period last year.  Earnings per share for the three-month period was $0.76 compared to $0.96 for the same period in 2021.

United Bancorporation of Alabama, Inc. Announces First Quarter Results

FIRST QUARTER FINANCIAL HIGHLIGHTS

• Net Income of $2.8 million and EPS of $0.76.
• United reported total assets of $1.2 billion at March 31, 2022 as compared to $949.0 million at March 31, 2021, an increase of $248.7 million or 26.2%.
• Loans and securities grew $113.1 million or 20.5% and $126.4 million or 75.6%, respectively.
• Shareholder equity grew 1.9% to $99.0 million as of March 31, 2022 compared to $97.2 million last year. Higher interest rates have created unrealized losses in the available for sale securities portfolio that are recorded in accumulated other comprehensive income, which caused shareholder equity to decline $10.6 million or 9.6% from the prior quarter.
• Unrealized losses do not affect regulatory capital. As of March 31, 2022 tier one capital ratio and tier one leverage ratio were 14.2% and 9.9%, respectively.

For a complete first quarter report and financial metrics visit our investor relations tab at www.UnitedBank.com.

About United Bank
United Bank is a $1.2 billion financial institution that has enjoyed 117 years of continuous service to Atmore, Alabama and surrounding communities. United Bank has offices in Atmore, East Brewton, Brewton, Daphne, Flomaton, Monroeville, Frisco City, Bay Minette, Foley, Lillian, Loxley, Magnolia Springs, Semmes, Silverhill, Spanish Fort, and Summerdale in Alabama. United Bank serves Santa Rosa County, Florida in Jay, Milton, and Pace. For more information about United Bank, please visit our website at www.unitedbank.com. Member FDIC.

About UB Community Development
UB Community Development's strong history and experience in New Markets Tax Credit transactions, coupled with our passion for improving the communities around us, make UBCD Alabama's premier financial partner for economic and community development. Through our NMTC projects, Community Facilities Lending Program and Community Housing Capital Fund, UBCD is working with community development partners in the fields of healthcare, education, manufacturing, public works, and more. For more information about UB Community Development, visit our website at www.UBCommunityDevelopment.com. 

About Town-Country National Bank
Town-Country National Bank is a $130 million financial institution serving Camden, Alabama and surrounding communities since 1978. It has a single office in Camden, Alabama. For more information about TCNB, please visit our website at www.tcnbank.com. Member FDIC.

Contact:  Leigh Anne Russell Jones
EVP, Chief Financial Officer
(251) 446-6165
Leighanne.jones@unitedbank.com

 

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SOURCE United Bancorporation

FAQ

What are the Q1 2022 financial results for UBAB?

United Bancorporation of Alabama reported a net income of $2.8 million for Q1 2022, down from $3.5 million in Q1 2021.

How much did UBS assets grow in Q1 2022?

Total assets grew by $248.7 million, reaching $1.2 billion as of March 31, 2022.

What was the earnings per share for UBAB in Q1 2022?

Earnings per share for Q1 2022 was $0.76, a decrease from $0.96 in Q1 2021.

What impact did unrealized losses have on UBAB's shareholder equity?

Unrealized losses led to a decline in shareholder equity of $10.6 million or 9.6% from the prior quarter.

What are the tier one capital ratios for UBAB as of Q1 2022?

As of March 31, 2022, the tier one capital ratio was 14.2% and the tier one leverage ratio was 9.9%.