United Bancorporation of Alabama, Inc. Repurchases all Common Stock Held by its 401(K) Employee Stock Ownership Plan

Rhea-AI Summary

United Bancorporation of Alabama (OTCQX: UBAB) has completed the repurchase of all 197,717 shares of its common stock held by its 401(k) Employee Stock Ownership Plan (KSOP). The shares were repurchased at $54.25 per share, totaling approximately $10.7 million. The transaction, which closed on November 15, 2024, was negotiated between company representatives and the KSOP Trustee, with oversight from independent appraisers, financial advisors, and separate legal counsel for both parties.

Positive

• Strategic deployment of $10.7 million in capital for share repurchase
• Demonstrates financial strength and ability to execute significant stock buybacks

Negative

• Significant cash outlay of $10.7 million reduces company's liquid assets
• Reduction in employee ownership stake in the company

News Market Reaction – UBAB

+1.50%

+1.50% Session move

In the trading session that priced this news, UBAB gained 1.50%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

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ATMORE, Ala., Nov. 18, 2024 /PRNewswire/ -- (OTCQX: UBAB)- United Bancorporation of Alabama, Inc. announced today that it has completed the repurchase of all of its shares of common stock held by the United Bancorporation of Alabama, Inc. 401(k) Employee Stock Ownership Plan ("KSOP"). All 197,717 shares of United common stock held by the KSOP were repurchased at $54.25 per share, for an aggregate purchase price of approximately $10.7 million.

The transaction was negotiated by representatives of United and the KSOP Trustee, with fiduciary and financial guidance provided by a qualified independent appraiser, an independent opinion as to the adequacy of the consideration paid to the KSOP, and separate counsel for United and the KSOP Trustee. A Special Independent KSOP Trustee was appointed solely for purposes of reviewing and negotiating the terms of the transaction on behalf of the KSOP. The transaction closed on Friday, November 15, 2024.

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 did United Bancorporation of Alabama (UBAB) repurchase from its KSOP in November 2024?

United Bancorporation of Alabama repurchased 197,717 shares from its 401(k) Employee Stock Ownership Plan.

What was the per-share price for UBAB's KSOP stock repurchase in November 2024?

The repurchase price was $54.25 per share.

What was the total value of UBAB's KSOP stock repurchase transaction in November 2024?

The total value of the repurchase was approximately $10.7 million.

When did UBAB complete its KSOP stock repurchase transaction?

The transaction closed on Friday, November 15, 2024.