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United Bancorporation of Alabama
(OTC:UBAB)
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Rating:75Outperform
Price Target:
$74.00
â–²(20.82% 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 capitalization
Low and improving leverage, together with substantial equity growth, gives the bank a stronger capital cushion than a more aggressively funded peer. This supports resilience through credit or economic stress and preserves flexibility to continue lending and investing in the franchise.
Negative Factors
Recent revenue contraction
The recent revenue decline interrupts the company’s longer-term expansion and signals weaker near-term operating momentum. If this persists, a smaller income base could constrain organic capital generation and reduce the resources available for lending growth, technology, and shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative capitalization
Low and improving leverage, together with substantial equity growth, gives the bank a stronger capital cushion than a more aggressively funded peer. This supports resilience through credit or economic stress and preserves flexibility to continue lending and investing in the franchise.
Read all positive factors
United Bancorporation of Alabama (UBAB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$194.58M
Dividend Yield2.22%
Average Volume (3M)613.00
Price to Earnings (P/E)10.3
Beta (1Y)0.28
Revenue Growth-5.17%
EPS Growth-3.04%
CountryUS
Employees177
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)6.15
Shares Outstanding3,059,460
10 Day Avg. Volume549
30 Day Avg. Volume613
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
UBAB primarily makes money through its banking operations. The main earnings driver is net interest income: the bank collects interest and fees on loans and other interest-earning assets and pays interest on deposits and other funding sources, wit...
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 Technical Analysis
Positive
61.25
Price Trends
61.49
Positive
57.62
Positive
54.32
Positive
Market Momentum
1.08
Positive
54.01
Neutral
30.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UBAB, the sentiment is Positive. The current price of 61.25 is below the 20-day moving average (MA) of 63.33, below the 50-day MA of 61.49, and above the 200-day MA of 54.32, indicating a bullish trend. The MACD of 1.08 indicates Positive momentum. The RSI at 54.01 is Neutral, neither overbought nor oversold. The STOCH value of 30.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UBAB.
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 | $194.58M | 10.34 | 7.90% | 2.22% | -5.17% | -3.04% | |
74 Outperform | $230.11M | 7.90 | 12.59% | 3.37% | 7.19% | 31.23% | |
72 Outperform | $287.03M | 11.60 | 14.00% | 2.10% | 10.02% | 67.97% | |
71 Outperform | $279.51M | 12.88 | 11.57% | 2.20% | 7.47% | 141.95% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $248.56M | 13.27 | 9.83% | 2.70% | 20.33% | 59.91% | |
56 Neutral | $242.53M | -7.74 | -8.75% | 0.86% | -9.20% | -302.27% |
* Financial Sector Average
UBAB
United Bancorporation of Alabama
63.60
9.69
17.96%
INBK
First Internet Bancorp
27.77
4.07
17.15%
OPBK
OP Bancorp
15.41
1.52
10.92%
FXNC
First National
30.91
7.77
33.58%
FRAF
Franklin Financial Services
63.79
16.20
34.03%
EFSI
Eagle Financial Services
45.93
7.89
20.74%
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.