United Bancorporation of Alabama, Inc. Reaches Asset Milestone of $1 Billion

Rhea-AI Summary

United Bancorporation of Alabama, Inc. (OTCQX: UBAB) reported strong financial results for Q2 2021, with a net income of $11.9 million and earnings per share of $3.18. This reflects a significant increase from $8.3 million and $2.24 in the same period last year. Total assets surpassed $1 billion, growing by 14.3%, while total loans rose by 11.6% to $571.6 million. Deposits increased by 14.4% to $882.1 million. Despite a decline in net interest margin to 3.49%, the company's capital positions remain robust with tier one ratios exceeding regulatory requirements.

Positive

• Net income increased to $11.9 million for the six months ended June 30, 2021, up from $8.3 million a year earlier.
• Earnings per share reached $3.18, a notable rise from $2.24 in the same period last year.
• Total assets surpassed $1 billion, marking a 14.3% increase year-over-year.
• Total loans grew by $59.3 million, or 11.6%, reaching $571.6 million.
• Deposits increased by $111.1 million, or 14.4%, totaling $882.1 million.
• Strong capital positions with a tier one capital ratio of 19.16%.

Negative

• Net interest margin declined to 3.49%.
• Cost of funds decreased to 0.31%.

ATMORE, Ala., July 23, 2021 /PRNewswire/ -- United Bancorporation of Alabama, Inc. (OTCQX: UBAB), parent company of United Bank and UB Community Development, a community development partner of United Bank, announces its financial results for the second quarter ended June 30, 2021. United Bancorporation of Alabama, Inc. ("United") reported unaudited consolidated net income of $11.9 million and earnings per share of $3.18 for the six months ended June 30, 2021 compared to net income of $8.3 million and earnings per share of $2.24 for the six months ended June 30, 2020. 

United Bancorporation of Alabama, Inc. Reaches Asset Milestone of $1 Billion

 

 

SECOND QUARTER FINANCIAL HIGHLIGHTS

• United exceeded $1 billion in total assets, an increase of $127.5 million or 14.3% from June 30, 2020.
• Total loans grew $59.3 million or 11.6% to $571.6 million at quarter end. Since 2020 United originated $94.0 million in PPP loans. Most of the $46.7 million in PPP loans that are still on the balance sheet are Round 2 loans, which originated in 2021.
• PPP fees account for $1.2 million in year-to-date fee income.
• Deposits totaled $882.1 million on June 30, 2021, an increase of $111.1 million or 14.4% from June 30, 2020.
• The net interest margin and cost of funds declined to 3.49% and 0.31%, respectively.
• Capital positions remain strong on June 30, 2021 with 19.16% tier one capital ratio, 11.84% tier one leverage ratio and 17.50% common equity tier one capital ratio.
• United declared a $0.12 per common share dividend that was paid on July 12, 2021 to shareholders of record as of June 30, 2021.

For a complete quarterly report and financial performance metrics please visit our investor relations tab at UnitedBank.com.

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 were the financial results for United Bancorporation of Alabama (UBAB) in Q2 2021?

United Bancorporation reported a net income of $11.9 million and earnings per share of $3.18 for the six months ended June 30, 2021.

How did total assets change for UBAB by June 30, 2021?

Total assets for United Bancorporation surpassed $1 billion, reflecting a 14.3% increase from the previous year.

What was the growth in total loans for UBAB in Q2 2021?

Total loans grew by $59.3 million, or 11.6%, reaching $571.6 million at the end of Q2 2021.

What was the dividend declared by UBAB in July 2021?

United Bancorporation declared a dividend of $0.12 per common share, paid on July 12, 2021.

What are the capital ratios for United Bancorporation as of June 30, 2021?

As of June 30, 2021, UBAB reported a tier one capital ratio of 19.16%, a tier one leverage ratio of 11.84%, and a common equity tier one capital ratio of 17.50%.