United Bancorporation of Alabama receives capital investment from Department of the Treasury

Rhea-AI Summary

United Bancorporation of Alabama has secured a $123 million investment from the U.S. Department of the Treasury as part of the Emergency Capital Investment Program (ECIP). This funding aims to enhance lending to underserved, low-income, and minority communities. The ECIP is designed to support community financial institutions, providing up to $9 billion for small businesses and consumers impacted by the COVID-19 pandemic. United Bancorporation operates as a Community Development Financial Institution (CDFI) with a focus on economic growth in Southwest Alabama and Northwest Florida.

Positive

• Secured a $123 million investment to increase lending efforts.
• Investment aims to support underserved and low-income communities.
• Part of $9 billion ECIP designed for CDFIs to stimulate economic development.

Negative

• None.

ATMORE, Ala., July 13, 2022 /PRNewswire/ -- United Bancorporation of Alabama, Inc., parent company of United Bank, Town-Country United Bank and UB Community Development, has received a $123 million investment from the U.S. Department of the Treasury under its Emergency Capital Investment Program, or ECIP. 

United Bancorporation of Alabama receives capital investment from Department of the Treasury

The new capital is intended to be used by United to further increase lending efforts for borrowers in underserved, low-income and minority communities.

The Emergency Capital Investment Program was created to encourage low- and moderate-income community financial institutions to augment their efforts to support small businesses and consumers in their communities. "ECIP has revolutionized our lending efforts as a CDFI and to the communities and people we serve," United Bank CEO and President Mike Vincent said. "It has provided an unprecedented opportunity for us to expand our services to underserved rural, urban and minority communities."

ECIP will provide up to $9 billion in capital directly to depository institutions that are certified Community Development Financial Institutions (CDFIs) or minority depository institutions (MDIs) for small businesses, minority-owned businesses and consumers, especially in low-income and underserved communities, that may be disproportionately impacted by the economic effects of the COVID-19 pandemic.

United Bancorporation of Alabama, Inc. (OTCQX: UBAB) is a $1.2 billion financial holding company that primarily serves Southwest Alabama as well as Northwest Florida. United is a Community Development Financial Institution (CDFI), which recognizes its commitment to stimulating economic development in underserved communities. United operates three subsidiaries: United Bank, Town-Country United Bank and UB Community Development. United Bank is also designated as a CDFI and operates 22 branches across five counties. The recently acquired Town-Country United Bank serves Wilcox County and its surrounding counties. UB Community Development focuses on economic and community development through its New Markets Tax Credits, affordable housing and community facilities programs. United Bank has offices in Atmore, Brewton, East Brewton, Flomaton, Monroeville, Frisco City, Bay Minette, Daphne, 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.

Contact:
Tina Brooks
Senior Vice President, Corporate Secretary
tina.brooks@unitedbank.com
251-446-6001

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SOURCE United Bancorporation

FAQ

What is the recent investment amount for United Bancorporation of Alabama?

United Bancorporation of Alabama received a $123 million investment from the U.S. Department of the Treasury.

What is the purpose of the Emergency Capital Investment Program (ECIP)?

The ECIP aims to support community financial institutions in lending to small businesses and consumers in low-income and underserved communities.

When was the investment in United Bancorporation announced?

The investment was announced on July 13, 2022.

What does United Bancorporation of Alabama primarily do?

United Bancorporation primarily serves as a financial holding company and operates as a Community Development Financial Institution (CDFI).

Where does United Bancorporation of Alabama operate?

United Bancorporation operates in Southwest Alabama and Northwest Florida.

What figure does the ECIP provide for capital investment?

The ECIP provides up to $9 billion in capital for eligible institutions.