ATMORE, Ala., Sept. 9, 2026 /PRNewswire/ -- (OTCQX: UBAB) – United Bancorporation of Alabama, Inc. (the "Company" or "United") today issued the following statement in response to the recent public communication from Merion Road Capital Management and Blue Hill Advisors LLC (collectively, the "Activist Group"), which together purport to own approximately 2% of the Company's outstanding shares:
United's Board of Directors (the "Board") and management team are fully committed to acting in the best interests of all stockholders, including the approximately 98% of the Company's investor base unassociated with the recently formed Activist Group. Leadership's focus on long-term value creation has supported total stockholder returns of more than 129% over the past five years.1 This includes $41 million in capital returns to stockholders via dividends and share repurchases in the last 24 months. We plan to continue driving value by building on our trajectory of loan and deposit growth and reaching top-tier profitability. We also intend to maintain a disciplined and balanced approach to capital allocation, while retaining the ability to act swiftly on opportunities for inorganic growth.
We have a long history of engaging with and listening to our investors. In keeping with this approach, we have engaged constructively on numerous occasions with the Activist Group, including during a video call on August 31st. At no point during our meeting, or in any prior meetings, did Jason Blumberg or Aaron Sallen indicate they both would like to join the Board. Yet, just hours after our August 31st meeting ended, we received an email making this demand and requesting a response within seven days (by Labor Day on September 7th). United maintains that accommodating the Activist Group's unreasonable request, which did not even account for standard processes and timelines associated with director candidate vetting, would have been a rash decision and undermined the interests of investors holding the other 98% of United's outstanding shares.
The Board regularly assesses its composition to ensure that it has the right skills and experience to advance the best interests of all stockholders. The Board intends to evaluate the Activist Group's request in alignment with its normal corporate governance framework.
While we remain open to ongoing engagement with the Activist Group, we do not believe it will be beneficial or constructive to continually issue public statements in response to the Activist Group's expanding and shifting demands.
Stockholders do not need to take any action at this time.
About United Bancorporation of Alabama, Inc.
United Bancorporation of Alabama, Inc. is a $1.4 billion financial holding company and parent company of United Bank and UB Community Development, primarily serving Southwest Alabama and Northwest Florida. United is designated as a CDFI, committed to stimulating economic development in underserved communities. United and its subsidiaries operate 23 locations across six counties. UB Community Development focuses on economic and community development through New Markets Tax Credits, affordable housing and community facilities programs. For a complete quarterly report visit our investor relations tab at www.UnitedBank.com. Member FDIC.
1 Total stockholder returns, including dividends, through market close on Friday, September 4, 2026.
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SOURCE United Bancorporation of Alabama, Inc.