United Bancorporation of Alabama, Inc. Addresses Latest Letter from Merion Road Capital Management and Blue Hill Advisors

United Bancorporation of Alabama highlights five-year stockholder returns and recent $41 million in capital returned via dividends and buybacks.

Rhea-AI Summary

United Bancorporation of Alabama (UBAB) on September 9, 2026 reiterated its focus on long-term value creation, capital returns and disciplined capital allocation for stockholders.

The company reports total stockholder returns of more than 129% over the past five years.1 Over the last 24 months, it has returned approximately $41 million to stockholders through dividends and share repurchases. United states that it plans to continue building on loan and deposit growth to reach top-tier profitability, while keeping flexibility to pursue inorganic growth opportunities. The board also indicates that it regularly reviews its composition and will continue to follow its established corporate governance framework.

Positive

• Total stockholder returns >129% over the past five years1
• Returned $41 million to stockholders via dividends and buybacks in the last 24 months

Negative

• None.

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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 31^st. 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 31^st meeting ended, we received an email making this demand and requesting a response within seven days (by Labor Day on September 7^th). 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.

FAQ

What capital allocation approach does United Bancorporation of Alabama describe in this statement?

United describes a disciplined and balanced capital allocation approach that includes continuing to return capital through dividends and share repurchases, while retaining the ability to act quickly on opportunities for inorganic growth.

How does the board describe its approach to board composition and governance?

The board states that it regularly assesses its composition to ensure it has the right skills and experience to advance the interests of all stockholders and that it will evaluate any director-related requests in line with its normal corporate governance framework.

Do stockholders need to take any immediate action in relation to this announcement?

No. The company indicates that stockholders do not need to take any action at this time.