United Bancorporation of Alabama (UBAB) 10-Q 2008 Q3 Quarterly report

Exhibit 99.1

United Bank remains committed to its core business, which is, has been and will be that of providing the basic activities of banking to our customers. We support this business with a strong capital base and maintain liquidity so that we can meet the financial needs of our customers during these turbulent times. This solid strategy has been rewarded by market share growth. During the past reporting year, our market share in all counties served by the bank has grown from 5.84% to 7.01% placing it 4^thout of the 33 institutions. In addition, United Bank was recognized by the FDIC with its “Alliance for Economic Inclusion Award” for financial education and product initiatives.

United Bank ended the third quarter of 2008 with $464 million in total assets, a 14% increase from the end of the third quarter of 2007. Loans increased by $32 million during this period confirming the bank’s ability to continue to make loans available to its customers even in these unsettled economic times. Total deposits increased $25 million reflecting growth in all the bank’s markets.

Earnings for the period were $1.1 million reflecting the challenging environment. This represents a decrease from the $1.9 million earned in the same period in 2007. Net interest margin compression continued to negatively impact earnings through the third quarter. The year- to- date provision for loan losses totaled $1,490,000 an increase of $860,000 over the same period last year. Allowance for Loan Losses is $3,150,997. These actions reflect the bank’s commitment to proactively address credit issues while building acceptable strength in the balance sheet.

We are pleased to report the completion of our two newest offices in Loxley, Alabama and Milton, Florida. These facilities strengthen the bank’s commitment in these very attractive markets. We appreciate your support of the bank. If we can be of service, please do not hesitate to contact us so we can help meet your financial needs.

Robert R. Jones, III
President & CEO

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

	2008		2007
ASSETS
Cash & due from banks	$	12,245	$	11,933
Federal funds sold		15,012		13,603
Investment securities		112,226		96,851
Loans, net		291,026		259,407
Banks premises & equipment, net		18,586		15,518
Accrued interest receivable & other assets		14,700		10,710
TOTAL ASSETS		463,795		408,022
LIABILITIES & STOCKHOLDERS’ EQUITY
Deposits		356,306		331,469
Repurchase agreements		61,766		30,632
Other borrowed funds		1,882		2,311
Accrued interest payable & other liabilities		2,629		2,650
Total Liabilities		422,583		367,062
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		13,148		13,083
Retained Earnings		28,036		27,849
Total stockholders’ equity		41,212		40,960
TOTAL LIABLILITIES & STOCKHOLDERS’ EQUITY	$	463,795	$	408,022