MERION ROAD CAPITAL AND BLUE HILL ADVISORS REQUEST BOARD REPRESENTATION AT UNITED BANCORPORATION OF ALABAMA
Activist shareholders Merion Road and Blue Hill ask UBAB to add two of their principals as independent directors, citing bank-focused investing expertise.
Rhea-AI Summary
Merion Road Capital Management and Blue Hill Advisors, shareholders of United Bancorporation of Alabama (UBAB), have sent a letter dated September 8, 2026 requesting that the UBAB board appoint MRCM Manager Aaron Sallen and BHA Managing Member Jason Blumberg as independent directors.
The investors state that this follows years of engagement on capital allocation, expense discipline and board composition. They highlight that since a prior public letter on July 7, UBAB shares have risen +15% versus +1% for the Nasdaq Bank Index and +2% for the S&P 500, and say many shareholders support their involvement. The letter outlines the nominees’ investing and advisory experience in banking and capital markets, and asks the board to evaluate their qualifications, meet with independent directors and provide a timetable for a decision.
Positive
- UBAB share price +15% since July 7 vs +1% Nasdaq Bank Index and +2% S&P 500
Negative
- None.
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Would Bring Much Needed Capital Allocation Expertise to the Board at Critical Juncture
Cite Lack of Concrete Progress on Proposals Raised During Extended Engagement
The request follows an extended private and public engagement regarding the Company's capital allocation, expense discipline and Board composition. The Investors have been disappointed with the lack of tangible progress in addressing or acting on their proposals, and believe shareholders would benefit greatly from new directors with the expertise to critically evaluate these issues, reach defensible conclusions and help execute on them where appropriate.
Since the Investors released their July 7 letter to the Board publicly, UBAB shares have risen +
The full text of today's letter follows.
The Board of Directors
United Bancorporation of Alabama, Inc.
200 East Nashville Avenue
Attention: Michael Vincent, President and CEO, and the Board of Directors
Dear Members of the Board:
Merion Road Capital Management, LLC ("MRCM") and Blue Hill Advisors LLC ("BHA") are writing to formally request that the Board of Directors (the "Board") of United Bancorporation of Alabama, Inc. ("UBAB" or the "Company") appoint MRCM Manager, Aaron Sallen, and BHA Managing Member, Jason Blumberg, as independent directors of the Company.
We're making this request after years of engagement with UBAB's management team and other shareholders regarding what we believe are significant opportunities to enhance shareholder value. Our conclusions following this engagement are as follows:
- UBAB is at a critical juncture where capital allocation and strategic planning are key to producing strong long-term shareholder returns.
- MRCM and BHA issued a letter on July 7 outlining several paths for the Company to improve value including better capital allocation, expense discipline and board enhancement. Since then, we have heard from many shareholders who support our involvement, and UBAB's stock price has meaningfully outperformed the market: +
15% vs +1% for the Nasdaq Bank Index and +2% for the S&P 500. - Despite our long engagement and investor support, we have not seen any tangible progress from the Board in addressing or acting on our proposals. Shareholders would benefit greatly from directors with the expertise to critically evaluate these issues, reach defensible conclusions and help execute on them where appropriate.
- We possess deep bank investing and advisory expertise that would significantly bolster the Board's capabilities and complement the existing directors' skillsets. Furthermore, we are meaningful shareholders who have actively purchased the stock over the past several years.
Inaction is not an option. High-level discussions are not a substitute for concrete analysis and decisive action. The Board must develop and articulate a clear strategic plan that addresses fundamental questions regarding, among other things, target capital levels, the potential for accelerated capital return, and concrete plans to grow into the Company's elevated expense base. To date, the Board has not substantively addressed the questions we raised in our July 7 letter:
Merion Road / Blue Hill Request | Status |
Capital ratio targets | Not provided |
Analysis of our proposed | Not provided |
Expense and/or efficiency targets | Not provided |
Board capital allocation expertise | Not provided |
Our addition to the Board would bring the decades of investing and advisory experience necessary to thoughtfully tackle these issues.
Aaron Sallen
Aaron has 20 years of professional investing experience in both the public and private markets. He began his career at Macquarie Capital investing on behalf of the firm's managed infrastructure funds and proprietary balance sheet. These include the take private of Waste Industries, the internal acquisition of an M&A business, and the formation of a de novo municipal bond insurer. He subsequently worked at Napier Park Global Capital, a multi-billion dollar hedge fund, where he was responsible for identifying, analyzing, and monitoring public equity investments using a value-oriented, special situations mandate. For the past 10 years, Aaron has built and run his own investment firm, MRCM. MRCM's small cap fund has annualized returns of +
He received his B.A. from Dartmouth College (cum laude) and his M.B.A. from The University of
Jason Blumberg
Jason brings over 15 years of experience in financial services with a focus on
He received his B.A. from Amherst College (magna cum laude) and a master's degree from
We recognize that the Board must conduct an appropriate evaluation of our qualifications, and we welcome the opportunity to meet directly with the independent directors as part of that process. We respectfully request that the Board move promptly to consider our appointment and provide us with a clear timetable for its decision.
Sincerely,
| |
Aaron Sallen | Jason Blumberg |
Manager | Managing Member |
Merion Road Capital Management | Blue Hill Advisors |
View original content:https://www.prnewswire.com/news-releases/merion-road-capital-and-blue-hill-advisors-request-board-representation-at-united-bancorporation-of-alabama-302871721.html
SOURCE Merion Road Capital Management
FAQ
Who are the investor nominees proposed for the United Bancorporation of Alabama board?
The investors propose appointing Aaron Sallen, Manager of Merion Road Capital Management, and Jason Blumberg, Managing Member of Blue Hill Advisors, as independent directors. The letter describes Sallen’s 20 years of investing experience in public and private markets and a decade running MRCM, and Blumberg’s more than 15 years in financial services focused on U.S. regional and community banks, including M&A and capital raising advisory work and concentrated bank investing roles.
What investment performance figures do Merion Road Capital highlight in support of their nominee?
The letter states that over the past 10 years, Merion Road Capital Management’s small cap fund has annualized returns of +17.2%, compared with +11.4% for the Russell 2000 and +7.0% for the Barclay Hedge Fund Index.
What process do the investors ask United Bancorporation of Alabama’s board to follow on their request?
The investors acknowledge that the board must conduct an appropriate evaluation of their qualifications and say they welcome the opportunity to meet directly with the independent directors as part of that review. They request that the board move promptly to consider their appointment and provide a clear timetable for its decision.