About United Bancorporation of Alabama
United Bancorporation of Alabama, Inc. operates as the bank holding company for United Bank that provides a full range of banking services in its primary market areas of Baldwin, Escambia, Monroe and Mobile counties, Alabama; and Santa Rosa County, Florida. The company’s wholly-owned subsidiaries are UB Community Development, LLC (UBCD); UBA CFSA Investment Fund, LLC (CFSA IF); and UBA AMCREF Investment Fund, LLC (AMCREF IF). The bank is a commercial bank with headquarters in Atmore, Alabama. The bank wholly-owns United Insurance Services (UIS), a subsidiary entity, allowing bank-employed licensed agents to offer non-deposit insurance products to bank customers and non-customers. UBCD is an entity established to manage allocations of New Market Tax Credits (NMTC) from funds administered by the U.S. Department of Treasury, as well as oversee other community development initiatives. UBCD has offices in Atmore and Birmingham, Alabama. Investment Securities As of December 31, 2020, the company’s investment securities included U.S. government sponsored agencies; state and political subdivisions; corporate bonds; and mortgage-backed securities. Loan Portfolio As of December 31, 2020, the company’s loan portfolio included real estate loans, such as construction and land loans, farmland loans, 1-4 family residential mortgages, multifamily loans, and commercial loans; agricultural loans; commercial loans; consumer loans; states and political subdivisions; and other loans. Real Estate: The company offers various types of real estate loan products. Construction and land loans are repaid through cash flow related to the operation, sale or refinance of the underlying property. This portfolio class includes the extensions of credit to real estate developers or investors where repayment is dependent on the sale of the real estate or income generated from the real estate collateral. 1-4 family residential mortgages and farmland loans are repaid by various means, such as a borrower’s income, sale of the property, or rental income derived from the property. Commercial loans include owner-occupied commercial real estate loans and loans secured by income producing properties. Owner-occupied commercial real estate loans to operating businesses are long-term financing of land and buildings. Real estate loans for income-producing multifamily properties, such as apartment buildings, office and industrial buildings, and retail shopping centers are repaid from rent income derived from the properties. Agricultural and Commercial: These loans include those loans to agricultural and commercial customers for use in normal business operations to finance working capital needs, crop production, equipment purchases, or expansion projects. Consumer: The consumer loan portfolio segment includes direct consumer installment loans, overdrafts, and other revolving credit loans. State and Political Subdivisions: The state and political subdivision loan portfolio segment includes loans to local municipalities to support municipal operations and projects. Other Loans: The other loans portfolio segment includes loans to non-related bank holding companies to invest in subordinated-debt. The bank participated in the Paycheck Protection Program (PPP), a loan program originated from the Coronavirus Aid, Relief, and Economic Security (CARES) Act and subsequently expanded by the Paycheck Protection Program and Health Care Enhancement Act (PPPHCEA). Deposits As of December 31, 2020, the company’s deposits were noninterest-bearing accounts, NOW accounts, money market investment accounts, savings accounts, and time deposits. History United Bancorporation of Alabama, Inc. was founded in 1904. The company was incorporated in 1982.