United Bancorporation of Alabama, Inc.

Q3 2025 net income was $4.2 million and EPS was $1.29, compared with $5.1 million and $1.45 in the same period last year. Year-to-date net income was $13.5 million and EPS was $4.07, compared with $20.0 million and $5.63 last year. Net interest margin was 4.59% year to date and 4.58% quarter to date, versus 4.57% in 2024 year to date. Year-over-year loan growth was $46.5 million, or 5.4%, and deposits grew about $42 million, or 3.9% year over year. Tangible book value increased to $45.06 from $43.07, and cash-to-asset ratio was 11.15%. Management did not provide formal quarterly or full-year numerical guidance, but said a 100 basis point decline in rates would reduce net interest income by about 5%, a 200 basis point decline by about 9.6% to 9.7%, and a gradual 100 basis point decrease over 12 months would lower income by about $400,000.

Mike Vincent framed the quarter as operationally solid, emphasizing that the core conversion was completed successfully and that there are still “day 2” efficiency opportunities to pursue. He said the bank remains focused on maintaining a strong franchise through organic growth, selective capital deployment, and continued share repurchases. His tone was constructive but measured, especially on CDFI/Capital Magnet funding, which he said remains uncertain because of Washington delays and the government shutdown.

Leigh Jones highlighted a securities portfolio with a book value of about $316 million, a yield of about 3.64%, a weighted average life of 6.7 years, duration just under 5 years, and about 20% floating-rate exposure. On funding, she said deposits were up about $42 million year over year, driven mainly by time deposits, and that the cash-to-asset ratio was 11.15% as the bank kept competitive pricing to attract deposits. She also noted elevated costs tied to the core conversion, including about $1 million for cloud upgrades, about $0.5 million in consulting fees, and $480,000 in other conversion-related expenses, while capital and liquidity remained sound.

Analysts asked about 2026 buybacks and broader capital allocation, and management said it expects to keep repurchasing shares and will continue looking for sellers, while also keeping M&A conversations active. Questions on deposit pricing led management to say rates should likely stay steady to slightly lower depending on Fed moves, with competition still strong in local markets. They also discussed salaries and benefits, with management expecting some stabilization and efficiency gains next year, and whether capital-related government programs like the Capital Magnet Fund will award anything in 2025; management said not to count on it given the backlog and shutdown-related delays.