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United Bancorporation of Alabama
(OTC:UBAB)
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Rating:75Outperform
Price Target:
$68.00
â–²(11.88% Upside)
Action:Upgraded
Date:08/06/26
UBAB’s score is driven primarily by solid financial fundamentals (strong capitalization and decent earnings quality) and supportive technicals (price above key moving averages with positive MACD). A reasonable P/E and a mid-2% dividend add support, while the main risk factor is the recent step-down in revenue/margin momentum versus 2023–2024.
Positive Factors
Conservative Balance Sheet
A conservative leverage profile and meaningful equity growth since 2020 provide durable capital resilience. That structural strength supports lending capacity, loss absorption and strategic flexibility over the next several quarters, reducing risk of forced capital actions.
Negative Factors
Softening Revenue Momentum
A decline in revenue and negative recent growth indicate weakening top-line momentum. Over the next 2–6 months this can limit loan growth, compress fee income and force tighter expense control, making it harder to restore prior growth trajectories without new initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
A conservative leverage profile and meaningful equity growth since 2020 provide durable capital resilience. That structural strength supports lending capacity, loss absorption and strategic flexibility over the next several quarters, reducing risk of forced capital actions.
Read all positive factors
United Bancorporation of Alabama (UBAB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$217.54M
Dividend Yield2.31%
Average Volume (3M)1.60K
Price to Earnings (P/E)9.9
Beta (1Y)0.30
Revenue Growth-5.17%
EPS Growth-3.04%
CountryUS
Employees177
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)6.15
Shares Outstanding3,551,725
10 Day Avg. Volume1,049
30 Day Avg. Volume1,603
Financial Highlights & Ratios
PEG Ratio-0.32
Price to Book (P/B)0.65
Price to Sales (P/S)1.95
P/FCF Ratio5.94
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)5.35
Revenue Forecast (FY)N/A
United Bancorporation of Alabama Business Overview & Revenue Model
Company Description
United Bancorporation of Alabama, Inc. operates as the parent entity for United Bank, delivering a full spectrum of commercial banking solutions. The company provides a diverse range of deposit products, including checking, savings, certificates o...
How the Company Makes Money
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United Bancorporation of Alabama Earnings Call Summary
Earnings Call Date:Oct 31, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Oct 23, 2026
Earnings Call Sentiment Neutral
The earnings call reflects stable core banking operations with strong net interest margins and loan growth. However, a decline in net income, increased expenses, and challenges related to government programs and CDFI funding present significant headwinds.Positive Updates
Strong Net Interest Margin
The bank reported a net interest margin of 4.59% year-to-date, consistent with the previous year's 4.57%, indicating stability in interest income.
Negative Updates
Decrease in Net Income and EPS
Net income in Q3 2025 was $4.2 million (EPS of $1.29), down from $5.1 million (EPS of $1.45) in the same period last year. Year-to-date, net income was $13.5 million compared to $20 million the previous year.
Read all updates
Q3-2025 Updates
Positive
Negative
Strong Net Interest Margin
The bank reported a net interest margin of 4.59% year-to-date, consistent with the previous year's 4.57%, indicating stability in interest income.
Read all positive updates
Company Guidance
During United Bancorporation's Third Quarter 2025 earnings call, several key metrics were highlighted. The company reported a net income of $4.2 million and earnings per share (EPS) of $1.29 for Q3 2025, down from $5.1 million and $1.45 EPS for the same period last year. Year-to-date net income stood at $13.5 million with an EPS of $4.07, compared to $20 million and $5.63 for the previous year. The net interest margin remained robust at 4.59% year-to-date. Loan growth was reported at $46.5 million or 5.4% year-over-year, with Q3 growth at 1.4% or $12.3 million. The loan book saw a decrease in non-accruals by $1.2 million to $7.5 million, and charge-offs were recorded at $1 million. On the securities side, the book value was maintained at about $316 million with a yield of 3.64%. Deposits grew by 3.9% year-over-year, totaling about $42 million. The cash-to-asset ratio was 11.15%. Capital metrics included a tangible book value increase to $45.06, a return on assets (ROA) of 1.45%, and a return on tangible equity of 12.3%. Additionally, the company repurchased 56,000 shares during the quarter, totaling 163,000 year-to-date. The call also noted an expected impact on net interest income with potential interest rate decreases, with a 100-basis-point drop potentially reducing income by 5%.United Bancorporation of Alabama Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 92.09M | 89.83M | 92.60M | 84.45M | 59.02M | 55.18M |
| Gross Profit | 73.67M | 69.69M | 73.92M | 75.91M | 53.28M | 50.49M |
| EBITDA | 26.82M | 26.23M | 37.50M | 42.40M | 25.59M | 25.42M |
| Net Income | 21.68M | 19.67M | 28.00M | 31.54M | 18.68M | 18.53M |
Balance Sheet | ||||||
| Total Assets | 1.49B | 1.45B | 1.40B | 1.39B | 1.41B | 1.12B |
| Cash, Cash Equivalents and Short-Term Investments | 409.70M | 450.45M | 420.95M | 486.91M | 597.71M | 392.86M |
| Total Debt | 30.53M | 30.28M | 33.97M | 40.79M | 18.94M | 23.51M |
| Total Liabilities | 1.21B | 1.18B | 1.13B | 1.14B | 1.19B | 1.01B |
| Stockholders Equity | 276.95M | 269.73M | 265.71M | 248.64M | 212.61M | 109.71M |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 29.44M | 34.72M | 38.69M | 22.49M | 25.65M |
| Operating Cash Flow | 0.00 | 30.53M | 39.83M | 39.08M | 24.32M | 26.17M |
| Investing Cash Flow | 0.00 | -44.90M | -72.17M | -19.56M | -162.75M | -165.58M |
| Financing Cash Flow | 0.00 | 19.29M | -21.10M | -63.80M | 298.93M | -3.29M |
United Bancorporation of Alabama Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $217.54M | 9.92 | 7.47% | 2.32% | -5.17% | -3.04% | |
71 Outperform | $281.23M | 12.87 | 11.51% | 2.49% | 7.47% | 141.95% | |
71 Outperform | $279.42M | 11.29 | 14.00% | 2.14% | 10.02% | 67.97% | |
71 Outperform | $228.10M | 12.08 | 9.83% | 3.06% | 20.33% | 59.91% | |
70 Outperform | $227.57M | 7.71 | 12.59% | 3.19% | 7.19% | 31.23% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
59 Neutral | $248.95M | -7.64 | -8.75% | 0.91% | -9.20% | -302.27% |
* Financial Sector Average
UBAB
United Bancorporation of Alabama
61.00
6.87
12.69%
INBK
First Internet Bancorp
27.41
2.39
9.55%
OPBK
OP Bancorp
15.03
1.41
10.33%
FXNC
First National
30.89
8.12
35.65%
FRAF
Franklin Financial Services
62.08
16.60
36.50%
EFSI
Eagle Financial Services
41.80
6.41
18.12%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.