United Bancorporation of Alabama, Inc. · OTC:UBAB
United Bancorporation of Alabama — Shareholder Meeting (May 2021)
26 slides from United Bancorporation of Alabama's shareholder meeting presentation, May 5, 2021
Slide 1: United Bancorporation of Alabama, Inc Annual Shareholders Meeting
United Bancorporation of Alabama, Inc Annual Shareholders Meeting May 5, 2021
Slide 2: Our Corporate Structure
OUR CORPORATE STRUCTURE United United Bancorporation of Alabama, Inc (UBAB)- The Bancorporation of Holding Company Alabama, Inc UB UB Community Development, Community Bank Of The United Bank Community A Community Development Corporate Structure Partner of United Bank Development
Slide 3: Our Mission
OUR MISSION Building strong communities by empowering employee owners to deliver responsive and innovative products and services that promote healthy and resilient businesses and families with an emphasis on underserved and economically distressed communities within our diverse footprint.
Slide 4: Our Core Values
OUR CORE VALUES Unity of Effort Nurture Relationships Our core values remind us on a daily basis what United Innovate Bank stands for. It gives us a sense of security and acts as a guide for our employees, but our core values do The "T" Factor more than that. They also help our customers know what w
Slide 5: Our Awards
AWARDS l 2021 BIG BEAUTIFUL BALDWIN’S 2020 bestCompares BEST est 9 A Top 200 Community Banks to Banks Work For
Slide 6: 2020 Performance Metrics
2020 PERFORMANCE METRICS Record Net Income Year Over Year Growth $12.1 million for 24.74% year over twelve months ending year growth December 31, 2020 Stock Price Earnings Per Share Stock price as of $3.22 compared to $2.86 December 31, 2020 was $22.25 per share
Slide 7: 2020 Financials
7 2020 FINANCIALS l 13% 12M 1B 11% 10M 900M 9% 8M 800M 7% 6M 700M ||| en || en | Pe TIER ONE LEVERAGE RATIO NET INCOME TOTAL ASSETS Totals ending December 31 Totals ending December 31 Totals ending December 31
Slide 8: 2020 Financials
7 2020 FINANCIALS l $5 13% 600M $4 11% 500M $3 9% 400M $2 7% 300M $1 5% | 200m 3 & EARNINGS PER SHARE EQUITY TO TOTAL ASSETS LOANS, NET OF UNEARNED INCOME Totals ending December 31 Totals ending December 31 Totals ending December 31
Slide 9: 2020 Financials
7 2020 FINANCIALS l 5% 2.5% A% 2% 3% 1.5% 2% 1% 1% E 5% | NET INTEREST MARGIN RETURN ON AVERAGE ASSETS Totals ending December 31 Totals ending December 31
Slide 10: Annual & Impact Report
ANNUAL & IMPACT REPORT www.UnitedBankAnnualReport.com
Slide 11: New Market Tax Credits
NEW MARKET TAX CREDITS 2020 Stand Alone New Market Tax Credit 2 Loan Pool Projects Capital Investment Transactions 5 Projects $145 Million $8.8 Million $65 Million $44 Million New Market Tax Credit United Bank Loans Allocation
Slide 12: New Market Tax Credits
NEW MARKET TAX CREDITS Job Retention & Creation 695 Jobs Created 2,435 Temporary Jobs 422 Retained 1 Million Sq Ft In Infrastructure Healthcare, Manufacturing, Education, Nonpro t, Construction, Grocery, IT, Restaurants, Historic Preservation
Slide 13: Coastal Growers Highlights
COASTAL GROWERS HIGHLIGHTS More than $100 million project located in Atmore, AL. $60 million NMTC with a $40 million B&I guarantee from USDA 475,000 sq ft facility will source peanuts within a 200 mile radius from from farms in MS, AL, GA, & FL 95 construction jobs and 130 permanent jobs Support fro
Slide 14: Community Facilities Lending
COMMUNITY FACILITIES LENDING Closed Projects Include: Fire Total Allocation Award Trucks, Fire Department, for Community Facilities Municipal Water, Utility & Lending Funding Sanitation $40 Million 12 Total Projects $12 Million Total Transactions
Slide 15: Community Housing Capital
COMMUNITY HOUSING CAPITAL Projects Span from Capital Magnet Fund Alabama, Tennessee Awards Since 2017 and Georgia $18 Million 32 Total Projects $300 Million 1800 Units Total Amount of Private 1800 Apartment Homes Capital Investment Built or Preserved for Families and Senior Adults
Slide 16: Graceway Apartments Highlights
GRACEWAY APARTMENTS HIGHLIGHTS 48-unit affordable, multi-family housing project for seniors 18 units are reserved for households at or below 60% of the area median income 30 units serve households at or below 50% of the area median income 5 of the units are designated for veterans
Slide 17: 2020 Challenges
2020 CHALLENGES PPP Uncertainty and commitment to 2020 community and small business Hurricanes 2020 Sally & Zeta devastated our region Pandemic Change of operations and 2020 business demands Economic Contraction 2020 Stay at home order, stimulus, impacts of shut down
Slide 18: 2020 Strategic Accomplishments
2020 STRATEGIC ACCOMPLISHMENTS SEMMES EXPANSION March 2020 DAPHNE EXPANSION February 2020 CORPORATE AWARDS $65 MM NMTC, $799,000 FA Award, $202,898 BEA Award TECHNOLOGY ELEVATION Serve customers, wherever, whenever and however DIVERSITY OF INCOME STREAM Traditional bank, community development and CD
Slide 19: 2021 Strategies & Outlook
2021 STRATEGIES & OUTLOOK $8 Million Capital Magnet Fund Record Pro tability 2021 Quarter 1 03Outlook is Strong for Economic Recovery
Slide 20: 2021 Q1 Metrics
7 202) Q| METRICS United Bancorporation Vp of Alabama, Inc. Quarterly Comparison 6/30/20 3/31/2021 12/31/2020 9/30/2020 No CMF Award 6/30/2020 3/31/2020 Equity Tier One Leverage 11.71% 11.37% 11.49% 12.10% 12.95% Tier One Capital 18.28% 17.51% 17.66% 17.75% 17.99% Equity to Total Assets 10.27% 9.74%
Slide 21: Town-Country Acquisition
TOWN-COUNTRY ACQUISITION Acquisition of #3 Highest ROAA bank in 1 Alabama Low risk, single branch franchise located 2 near existing UBAB markets Compelling transaction metrics: modest TBV 3 payback period and signi cant earnings accretion Strategic acquisition to enhance CDFI 4 business lines
Slide 22: UBAB Locations
UBAB LOCATIONS COUNTIES 6 counties-24 o ces TOWN-COUNTRY 40 miles from closest UBAB o ce TOWN-COUNTRY 78 miles from UBAB headquarters
Slide 23: Transaction Rationale
TRANSACTION RATIONALE Supports CDFI Initiatives TCNB will rebrand as Town-Country United Bank “TCUB” and operate as a separate banking subsidiary under United’s holding company After qualifying TCNB as a CDFI, United will implement CDFI programs and initiatives at the new subsidiary furthering the p
Slide 24: Strategies: Building Strong Communities
STRATEGIES E ciency Talent Maximize operational Recruit, develop, reward effectiveness & e ciency and retain quality talent Data Economy Leverage data to supply Strong economic outlook growth- products, services & pro tability BUILDING STRONG COMMUNITIES
Slide 25: Stock Performance
STOCK PERFORMANCE $30.00 Stock price peak $29.00 Current stock price
Slide 26: Forward Looking Statement
FORWARD LOOKING STATEMENT This presentation contains forward‐looking statements relating to the financial condition, results of operations and business of United Bancorporation of Alabama, Inc. These forward looking statements involve risks and uncertainties and are based on the beliefs and assumptio
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