United Bancorporation of Alabama, Inc. Announces Renewal of Stock Repurchase Program

Rhea-AI Summary

United Bancorporation of Alabama (OTCQX: UBAB) has announced the renewal of its stock repurchase program, authorized by its Board of Directors. The program allows the company to repurchase up to 337,380 shares, representing approximately 10% of its currently outstanding common stock, through May 13, 2026.

The repurchases will be executed at management's discretion, following Rule 10b-18 SEC guidelines, and will be conducted through open market purchases and negotiated transactions at prevailing market prices. The company may also make repurchases under Rule 10b5-1 trading plans. The program can be suspended, terminated, or modified at any time.

Positive

• Authorization to repurchase up to 10% of outstanding shares shows confidence in company's value
• Flexible implementation timeline until May 2026 allows for strategic buying opportunities
• Program can enhance shareholder value through reduced share count

Negative

• No guarantee on the exact number of shares to be repurchased
• Program can be suspended or terminated at any time
• Repurchases will use cash that could be allocated to other business opportunities

News Market Reaction – UBAB

+2.63%

1 alert

+2.63% News Effect

On the day this news was published, UBAB gained 2.63%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

ATMORE, Ala., May 14, 2025 /PRNewswire/ -- (OTCQX: UBAB)- United Bancorporation of Alabama, Inc., announced today that the Board of Directors has approved a renewed stock repurchase program (the "Repurchase Program"). Under the repurchase program, United may repurchase up to 337,380 shares or approximately 10% of the currently outstanding shares of its common stock through May 13, 2026.

Repurchases will be made at the discretion of management in accordance with the limitations set forth in Rule 10b-18 of the Securities and Exchange Commission when pricing is considered attractive and in the best interests of both the Company and its shareholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company's financial performance. Open market purchases and negotiated transactions at prevailing market prices will be conducted in accordance with applicable legal and regulatory requirements. Repurchases may also be made pursuant to trading plans under Rule 10b5-1. The repurchase program may be suspended, terminated, or modified at any time for any reason. There is no guarantee as to the exact number of shares that will be repurchased by the Company.

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.

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SOURCE United Bancorporation

FAQ

How many shares can UBAB repurchase under its new stock buyback program?

UBAB can repurchase up to 337,380 shares, which represents approximately 10% of its currently outstanding common stock.

When does United Bancorporation of Alabama's stock repurchase program expire?

The stock repurchase program expires on May 13, 2026.

How will UBAB execute its share repurchase program?

UBAB will execute repurchases through open market purchases and negotiated transactions at prevailing market prices, following SEC Rule 10b-18 guidelines and potentially under Rule 10b5-1 trading plans.

Is UBAB guaranteed to repurchase all authorized shares under the program?

No, there is no guarantee on the exact number of shares that will be repurchased, and the program can be suspended, terminated, or modified at any time.