United Bancorporation of Alabama (UBAB) 8-K Results of Operations and Financial Condition

Exhibit 99.1

United Bank continues to experience positive trends in asset growth and earnings. For the first six months of 2006, Net Income was $2,018,724 and improvement of 33.00% when compared to the same period last year. Contributing to this improved profitability was asset growth of 16.40% to $372,713,042. Net Interest Income improved 18.22%.Loans totaled $247,998,729, up 14.27% or $30,972,000. Deposits now total $285,839,845 a 14.05% growth over last year.

The bank’s continued expansion and growth also brings with it higher operating costs. Non-interest expense is up 14.90%. This increase is partially attributed to the branch expansion and operating costs associated with managing increased regulatory overhead. This pattern continues as we build the infrastructure to manage the bank’s expanded operations.

As has been previously reported, the bank has completed all repairs and renovations associated with the past hurricane seasons. Lessons learned from these past events have been incorporated into our operating procedures. Construction is nearly complete on the new Magnolia Springs office. This expanded facility will greatly improve service delivery in the community and our market position east of Foley. The Jay, FL office now manages $21 million in deposits and $14 million in loans. A new office, adjacent to the hospital, will begin construction before the end of summer to better service this valuable market. Purchases of land for Spanish Fort, AL and Milton, FL should be finalized by the end of July. These exciting projects present great opportunities for the bank.

Sale of United Bancorporation of Alabama, Inc. common stock has been reported in the range of $17.50 to $18.00 per share. Some shares remain available. If interested please contact Tina Brooks for more information. As always we appreciate your support of the bank. We encourage our owners to also be customers. If we can be of service, please do not hesitate to contact us.

Robert R. Jones, III
President & CEO

STATEMENT OF CONDITION
At the close of
business June 30
(Unaudited)
(000’s)

	2006		2005
ASSETS
Cash & due from banks		15,712		11,593
Federal funds sold		18,391		7,898
Investment securities		75,753		73,493
Loans, net		244,618		214,395
Banks premises & equipment, net		8,418		4,278
Accrued interest receivable & other assets		9,838		8,545
TOTAL ASSETS		372,730		320,202
LIABILITIES & STOCKHOLDERS’ EQUITY
Deposits		285,840		250,536
Repurchase agreements		44,961		30,028
Other borrowed funds		12,265		9,964
Accrued interest payable & other liabilities		349		1,926
Total Liabilities		343,415		292,454
Stockholders’ Equity
Class A common stock, authorized 2,500 shares of $10.00 par value; 2,500 shares issued and outstanding.		25		25
Class B common stock, authorized 5,000 shares of $1.00 par value; 3,000 shares issued and outstanding.		3		3
Surplus		4,154		4,154
Retained Earnings		25,133		23,566
Total stockholders’ equity		29,315		27,748
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY		372,730		320,202