1
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1997
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Commission file number 2-78572
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UNITED BANCORPORATION OF ALABAMA, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 63-0833573
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
200 East Nashville Avenue, Atmore, Alabama 36502
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(Address of principal executive offices) (Zip Code)
(334) 368-2525
----------------------------------------------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such report(s), and (2) has been subject to
such filing requirements for the past 90 days. Yes X No
--- ---
Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of September 30, 1997.
Class A Common Stock.... 516,385 Shares
Class B Common Stock.... -0- Shares
2
UNITED BANCORPORATION OF ALABAMA, INC.
FORM 10-Q
For the Quarter Ended September 30, 1997
INDEX
PART I - FINANCIAL INFORMATION PAGE
- ------ --------------------- ----
Item 1. Financial Statements
Condensed Consolidated Balance Sheets 3
Condensed Consolidated Statements of Earnings 4
Consolidated Statements of Stockholders' Equity 5
Consolidated Statements of Cash Flows 6
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
PART II - OTHER INFORMATION
- ------- -----------------
Item 6. Exhibits and Reports on Form 8-K 14
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3
UNITED BANCORPORATION OF ALABAMA, INC.
AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
Item 1.
September December 31,
1997 1996
Assets
Cash and due from banks $7,259,696 8,139,453
Federal funds sold 2,810,000 650,000
------------ ---------------
Cash and cash equivalents 10,069,696 8,789,453
Interest bearing deposits with other
financial institutions 101,322 102,548
Securities Available for sale 38,987,302 36,308,703
Investment securities (market values of $23,103,435 22,975,358 22,770,332
and $22,555,998, respectively)
Loans 85,582,002 75,183,615
Less: Unearned income 641,475 937,725
Allowance for loan losses 1,404,618 1,243,457
------------ ---------------
Net loans 83,535,909 73,002,433
Premises and equipment, net 2,103,463 2,012,227
Interest receivable and other assets 2,204,705 2,292,713
------------ ---------------
Total assets 159,977,755 145,278,409
============ ===============
Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing $19,658,759 19,973,202
Interest bearing 111,008,303 103,102,366
------------ ---------------
Total deposits 130,667,062 123,075,568
Securities sold under agreements to repurchase 9,300,331 6,754,899
Other borrowed funds 3,744,104 668,307
Accrued expenses and other liabilities 1,848,593 1,516,586
------------ ---------------
Total liabilities 145,560,090 132,015,360
Stockholders' equity:
Class A common stock. Authorized 975,000
shares of $.01 par value; 548,160
shares issued and outstanding. 5,482 5,482
Class B common stock of $.01 par value.
Authorized 250,000 shares;
-0- shares issued and outstanding. 0 0
Preferred stock of $.01 par value. Authorized
250,000 shares; -0- shares issued
and outstanding. 0 0
Surplus 3,476,518 3,476,518
Net unrealized loss on investments on
available for sale investments 185,486 26,283
Retained earnings 11,215,769 10,220,356
------------ ---------------
14,883,255 13,728,639
Less 31,775 and 31,775 treasury shares, at cost 465,590 465,590
------------ ---------------
Total stockholders' equity 14,417,665 13,263,049
------------ ---------------
Total liabilities and stockholders' equity 159,977,755 145,278,409
============ ===============
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4
UNITED BANCORPORATION OF ALABAMA, INC.
AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
(UNAUDITED)
Three Months Ended Nine Months Ended
September September
1997 1996 1997 1996
Interest income:
Interest and fees on loans 2,198,636 1,876,187 6,100,755 5,220,292
Interest on investment securities Available for Sale:
Taxable 542,589 519,300 1,580,904 1,635,844
Nontaxable 62,880 49,943 178,947 152,474
Interest on investment securities Held to Maturity:
Taxable 245,976 281,257 751,821 855,878
Nontaxable 97,817 70,834 275,478 211,480
--------- --------- --------- ---------
Total investment income 949,262 921,334 2,787,150 2,855,676
Other interest income 44,154 17,623 202,206 140,622
--------- --------- --------- ---------
Total interest income 3,192,052 2,815,144 9,090,111 8,216,590
Interest expense:
Interest on deposits 1,291,341 1,130,994 3,673,855 3,412,353
Interest on other borrowed funds 144,806 129,948 359,907 277,243
--------- --------- --------- ---------
Total interest expense 1,436,147 1,260,942 4,033,762 3,689,596
Net interest income 1,755,905 1,554,202 5,056,349 4,526,994
Provision for loan losses 160,000 42,750 280,000 128,250
--------- --------- --------- ---------
Net interest income after
provision for loan losses 1,595,905 1,511,452 4,776,349 4,398,744
Noninterest income:
Service charge on deposits 252,263 233,060 732,712 702,949
Commission on credit life 17,530 12,041 52,023 40,639
Investment securities gains and losses, net (6,562) 34,964 (16,883) 34,964
Other 93,565 74,358 410,983 158,183
--------- --------- --------- ---------
Total noninterest income 356,796 354,423 1,178,835 936,735
Noninterest expense:
Salaries and benefits 783,132 681,747 2,244,291 1,993,254
Net occupancy expense 225,384 194,711 647,489 534,075
Other 400,566 402,527 1,244,857 1,241,126
--------- --------- --------- ---------
Total non-interest expense 1,409,082 1,278,985 4,136,637 3,768,455
Earnings before income tax expense 543,619 586,890 1,818,547 1,567,024
Income tax expense 169,481 191,153 564,941 461,058
--------- --------- --------- ---------
Net earnings 374,138 395,737 1,253,606 1,105,966
========= ========= ========= =========
Net earnings per share $0.72 $0.77 $2.43 $2.14
Weighted average shares outstanding 516,385 516,385 516,385 516,385
========= ========= ========= =========
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5
UNITED BANCORPORATION OF ALABAMA, INC.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE PERIODS ENDED
(UNAUDITED)
Shares Common Retained
stock Surplus earnings
Balance December 31, 1993 548,160 5,482 3,476,518 8,309,569
Net earnings 1994 - 824,549
Cash dividends declared ($.50 per share) (257,118)
Effect of adoption of FASB Statement No. 115,
Accounting for Certain Investments in Debt and
and Equity Securities
Change in unrealized gain (loss) on investment
securities available for sale, net of change in
deferred tax
Purchase of treasury stock
Stock dividend (1 to 15)
29,960 at $18 (539,280)
2,150 at $20 (43,000)
Cash paid in lieu of fractional shares (3,175)
--------- --------- ---------- -----------
Balance December 31, 1994 548,160 5,482 3,476,518 8,291,545
Net earnings 1995 - - 1,230,362
Cash dividends declared ($.50 per share) - - -
Net Change in unrealized gain (losses)
on investments available for sale
Cash dividends payable on partial shares (258,192)
--------- --------- ---------- -----------
Balance December 31, 1995 548,160 5,482 3,476,518 9,263,715
Net earnings 1996 1,473,027
- -
Cash dividends declared ($1.00 per share) - - (516,386)
Net Change in unrealized gain (losses)
on investments available for sale _ - -
--------- --------- ---------- -----------
Balance December 31, 1996 548,160 5,482 3,476,518 10,220,356
Net earnings six months ended September 1997 1,253,606
Net Change in unrealized gain (losses)
on investments available for sale
Cash dividends declared ($.50 per share) (258,193)
--------- --------- ---------- -----------
Balance September 30, 1997 548,160 5,482 3,476,518 11,215,770
========= ========= ========== ===========
Unrealized
loss on Total
investments Treasury stockholders'
AFS stock equity
Balance December 31, 1993 - (508,590) 11,282,979
Net earnings 1994 824,549
Cash dividends declared ($.50 per share) (257,118)
Effect of adoption of FASB Statement No. 115,
Accounting for Certain Investments in Debt and
and Equity Securities 491,437 491,437
Change in unrealized gain (loss) on investment
securities available for sale, net of change in
deferred tax (1,128,723) (1,128,723)
Purchase of treasury stock (539,280) (539,280)
Stock dividend (1 to 15)
29,960 at $18 539,280 -
2,150 at $20 43,000 -
Cash paid in lieu of fractional shares (3,175)
------------ ---------- --------------
Balance December 31, 1994 (637,286) (465,590) 10,670,669
Net earnings 1995 - 1,230,362
Cash dividends declared ($.50 per share) - -
Net Change in unrealized gain (losses) - -
on investments available for sale 754,699 754,699
Cash dividends payable on partial shares (258,192)
------------ ---------- --------------
Balance December 31, 1995 117,413 (465,590) 12,397,538
Net earnings 1996 1,473,027
- -
Cash dividends declared ($1.00 per share) (516,386)
Net Change in unrealized gain (losses) -
on investments available for sale (91,130) - (91,130)
------------ ---------- --------------
Balance December 31, 1996 26,283 (465,590) 13,263,049
Net earnings six months ended September 1997 1,253,606
Net Change in unrealized gain (losses) -
on investments available for sale 159,202 159,202
Cash dividends declared ($.50 per share) (258,193)
------------ ---------- --------------
Balance September 30, 1997 185,485 (465,590) 14,417,665
============ ========== ==============
6
United Bank
Statement of Cash Flows (Unaudited)
Nine Months Ended September 30, 1997 and 1996
1997 1996
Operating Activities
Net Income $ 1,253,606 $ 1,105,966
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities
Provision for Loan Losses 280,000 128,250
Depreciation on Premises and Equipment 229,169 180,408
Amortization of Investment Securities 36,583 60,576
Amortization of Investment Securities Available for Sale 49,822 51,231
(Gain) Loss on Sale of Investment Securities - (2,395)
(Gain) Loss on Sale of Investment Securities Available for Sale 16,883 (32,554)
(Gain) Loss on Sale of Other Real Estate - (57,193)
(Gain)Loss on Disposal of Premises and Equipment (171) (3,300)
Writedown of Other Real Estate - -
(Increase) Decrease in Interest Receivable
and Other Assets 22,074 (416,333)
Increase (Decrease) in Deferred Income Taxes - -
Increase (Decrease) in Accrued Expenses
and Other Liabilities 332,006 (128,080)
--------------- ---------------
Net Cash Provided (Used) by Operating Activities 2,219,972 886,576
--------------- ---------------
Investing Activities
Proceeds From Interest-bearing Deposits in
Other Financial Institutions 1,226 997
Purchases of Interest-bearing Deposits in
Other Financial Institutions - -
Proceeds From Sales of Investment Securities - 501,406
Proceeds From Sales of Investment Securities Available for Sale 3,505,925 1,347,374
Proceeds From Maturities of Investment Securities 1,661,620 5,409,480
Proceeds From Maturities of Investment Securities Available for Sale 3,174,820 5,651,328
Purchases of Investment Securities (1,903,229) (6,640,622)
Purchases of Investment Securities Available for Sale (9,160,711) (4,583,663)
Net (Increase) Decrease in Loans (10,813,476) (10,305,033)
Purchases of Premises and Equipment (320,405) (289,246)
Proceeds From Sales of Premises and Equipment 171 3,300
Purchases of Other Real Estate (40,200) (66,079)
Proceeds From Sales of Other Real Estate - 100,763
--------------- ---------------
Net Cash Provided (Used) by Investing Activities (13,894,259) (8,869,995)
--------------- ---------------
Financing Activities
Net Increase (Decrease) in Deposits, 7,591,494 2,913,494
Net Increase in securities sold under
agreement to repurchase 2,545,432 (3,123,937)
Cash Dividends (258,194) (258,194)
Purchase of Treasury Stock - -
Increase (Decrease) in Other Borrowed Funds 3,075,798 3,324,724
--------------- ---------------
Net Cash Provided (Used) by Financing Activities 12,954,530 2,856,087
--------------- ---------------
Increase (Decrease) in Cash and Cash Equivalents 1,280,243 (5,127,332)
Cash and Cash Equivalents at Beginning of Period 8,789,453 13,775,385
--------------- ---------------
Cash and Cash Equivalents at End of Period $ 10,069,696 $ 8,648,053
=============== ===============
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UNITED BANCORPORATION OF ALABAMA, INC.,
AND SUBSIDIARY
Notes to Consolidated Financial Statements
NOTE 1 - General
The consolidated financial statements in this report have not been audited. In
the opinion of management, all adjustments necessary to present fairly the
financial position and the results of operations for the interim periods have
been made. All such adjustments are of a normal recurring nature. The results
of operations are not necessarily indicative of the results of operations for
the full year or any other interim periods. For further information, refer to
the consolidated financial statements and footnotes included in the Company's
annual report on Form 10-K for the year ended December 31, 1996.
In January 1997, the Securities and Exchange Commission approved rule
amendments (the Release) regarding disclosures about derivative financial
instruments, other financial instruments and derivative commodity instruments.
The Release requires inclusion in the footnotes to the financial statements of
extensive detail about the accounting policies followed by a registrant in
connection with its accounting for derivative financial instruments and
derivative commodity instruments . The accounting policy requirements become
effective for all registrants for filings that include financial statements for
periods ending after June 15, 1997. The Company does not presently have any
derivative financial instruments or derivative commodity instruments as defined
in the Release.
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8
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Results of Operations
The following financial review is presented to provide an analysis of the
results of operations of United Bancorporation of Alabama, Inc. (the
"Corporation"), and its subsidiary for the nine months ended September 30,
1997, and 1996, compared. This review should be used in conjunction with the
consolidated financial statements included in the Form 10-Q.
Net income after taxes for the nine months ended September 30, 1997, was
$1,253,606, an increase of $147,640 or 13.35%, as compared to $1,105,966 for
the same period in 1996. Net income's improvement was due to a higher net
interest margin. Net earnings per share increased to $2.43 for the nine months
ended September 30, 1997, as compared to $2.14 in 1996.
Net interest income through the nine months increased 11.69% to $5,056,349. The
net interest margin increased to 4.71% for the first nine months of 1997 as
compared to 4.54% for the same period in 1996.
Total interest income increased $873,521, or 10.63%, to $9,090,111 in 1997,
from $8,216,590 in 1996. Average interest earning assets were $143,039,566 for
the first nine months 1997, as compared to $132,927,240 for the same period in
1996, an increase of $10,112,326, or 7.61%. The average rate earned in 1997 on
earning assets was 8.48% as compared to 8.25% in 1996 reflecting rising
interest rates during 1997, as the Federal Reserve Board raised rates 25 basis
points, causing prime to move to 8.50%. The increase in total interest income
in 1997 is also attributed to an increase in the volume of earning assets.
Total interest expense increased by $344,166, or 9.33%, in 1997 to $4,033,762
from $3,689,596 in 1996. Average interest bearing liabilities increased to
$118,698,363 in 1997 from $106,384,099 in 1996, an increase of $12,314,264, or
11.58%. The average rate paid rose to 4.70% in 1997, from 4.63% in 1996. This
slight increase is attributed the increase in volume of certificates of
deposit.
The provision for loan losses increased to $280,0000 for the first nine months
of 1997 as compared to $128,250 for the same period in 1996 Net charged-off
loans for the first nine months of 1997 were $118,250, as compared to $83,243
for the same period in 1996.
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9
The allowance for possible loan losses represents 1.64% of gross loans
(excluding bankers acceptances and commercial paper) at September 30, 1997, as
compared to 1.65% at year-end 1996. Loans on which the accrual of interest had
been discontinued or reduced amounted to $297,605 at September 30, 1997, as
compared to $339,016 at December 31, 1996. the allowance for loan losses
remains adequate given the growth in loans and based upon the risks in the
portfolio.
Total noninterest income increased to $1,178,835 for the first nine months of
1997, as compared to $936,735 for the same period in 1996, an increase of
$242,100, or 25.85%. Investment security losses were $16,883 for the first nine
months of 1997, as compared to $34,964 in 1996. Service charges on deposits
increased $29,763, or 4.23%, to $732,712 in 1997 from $702,949 in 1996.
Commissions on credit life increased to $52,023 in 1997 from $40,639 in 1996,
an increase of $11,384, or 28.01%. Other income increased during the first nine
months of 1997 to $410,983 from $158,183 in 1996, an increase of $252,800, or
159.81%. This increase is accounted for primarily by an insurance settlement
received from Progressive Insurance company.
Total noninterest expense increased $368,182, or 9.77%, to $4,136,637 during
the first nine months of 1997, as compared to $3,768,455 for the same period in
1996. Salaries and benefits increased to $2,244,291 in 1997 from $1,993,254 in
1996, an increase of $251,037, or 12.59%. This increase is due to the opening
of a new branch, a new department and other broker for the financial services
division. Occupancy expense increased $113,414, or 21.24% to $647,489 in 1997
from $534,075 in 1996. Other expense increased to $1,244,857 during the first
nine months of 1997 from $1,241,126 for the same period in 1996, an increase of
$3,731, or .30%. Legal fees decreased by $45,011, or 50.88%, to $43,447 for the
first nine months in 1997 from $88,458 in 1996. FDIC premiums paid on deposits
increased $9,680, or 484.00%, to $11,680 in 1997, as compared to $2,000 for the
same period in 1996. The FDIC Fund became fully capitalized which resulted in
the 2,000 in 1996, but in an effort to recapitalize the SAIF fund the premiums
have increased.
Earnings before taxes for the first nine months of 1997 increased $251,523, or
16.05%, to $1,818,547 from $1,567,024 for the same period in 1996 Due to higher
operating profits, income tax expense increased to $564,941 in 1997 from
$461,058 in 1996, an increase of $103,883, or 22.53%.
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10
Three Months Ended September 30, 1997, and 1996, Compared
Net earnings for the three months ended September 30, 1997 was $374,138, a
decrease of $21,599, or 5.46% from $395,737,for the same period last year.
Earnings per share decreased to $.72 for the third quarter of 1997, from $.77
for the same period in 1996.
Total interest income increased $376,908, or 13.39% to $3,192,052 for the third
quarter of 1997, as compared to $2,815,144 for the same period in 1996.
Interest and fees on loans increased $322,449, or 17.19%, to $2,198,636 in
1997, from $1,876,179 in 1996. The average rate earned on interest earning
assets during the third quarter of 1997 was 8.56%, as compared to 8.31% for the
same period in 1996. This slight is due to increase in prime and the variable
rate loans in the portfolio. The net interest margin increased to 4.83% for the
third quarter of 1997, as compared to 4.54% for the same period in 1996.
Average interest earning assets increased to $147,213,409 in 1997, from
$135,099,885 in 1996, an increase of $12,113,525, or 8.97%.
Total interest expense increased by $175,205 or 13.89% from $1,260,942 in 1996
to $1,436,147 due to rising interest rates experienced in the third quarter of
1997. Average interest bearing liabilities for the third quarter of 1997 were
$117,991,539, as compared to $108,128,598 for the same period in 1996, an
increase of $9,862,941, or 9.12%.
The combined effect of volume and interest rate changes increased net interest
income by $201,703 or 12.98%.
The provision for loan losses increased to $160,000 for the third quarter of
1997 as compared to $42,570 for the same period in 1996. Net charged-off loans
for the third quarter of 1997 were $63,460, as compared to $24,158 for the same
period in 1996.
Total noninterest income increased to $356,796 for the third quarter of 1997 as
compared to $354,423 in 1996, an increase of $2,373, or .67%. Service charges
on deposits increased $19,203, or 8.24%, to $252,263 in 1997, from $233,060 in
1996. Commissions on credit life insurance increased to $17,530 in 1997 from
$12,530 in 1996. Other income increased during the third quarter of 1997 to
$93,565 from $74,358 in 1996, an increase of $19,207, or 21.53%. this slight
increase was the result of an insurance settlement in 1997.
Total noninterest expense decreased $130,097, or 10.17%, to $1,409,082 during
the third quarter of 1997, as compared to $1,278,985 for the same period in
1996. Salaries and benefits increased to $783,132 in 1997, from $681,747 in
1996, an increase of $101,385, or 14.87%. Occupancy expense increased $30,673,
or 15.75%, to $225,384 in 1997 from $194,711 in 1996, the increase is due to a
new branch in Baldwin County, Alabama. Other expense decreased to 400,566
during the third
10
11
quarter of 1997, as compared to $402,527 fort the same period in 1996, a
decrease of $1,961, or .49%. Marketing expenses increased to $69,453 as compared
to $35,290 for the same period last year, this expense has been incurred to help
improve the Banks portfolio in its new markets.
Earnings before taxes for the third quarter of 1997 increased by $43,271 to
$545,619 from $586,890 for the same period in 1996. Income taxes expense fell
to $169,481 for the three months ended September 30, 1997 from $191,153, for
the same period ended 1996. This decrease was due to lower earnings.
Financial Condition and Liquidity
Total assets on September 30, 1997, were $159,977,755, as compared to
$145,278,409 on December 31, 1996, an increase of $14,699,346, or 10.12%.
Average total assets for the first nine months of 1997 were $143,039,566. The
loan portfolio growth was funded largely by , new deposits, new loans from
Federal Home Loan Bank, and the increase in repurchase agreements. Net loans
increased to $83,535,909 at September 30, 1997, from $73,002,433 at year end
1996, an increase of $10,533,476, or 14.43%. The loan to deposit ratio (net
loans) on September 30, 1997, excluding bankers acceptances and commercial
paper, was 63.93%, as compared to 59.32% on December 31, 1996.
Federal funds sold increased to $2,810,000 on September 30, 1997, as compared
to $650,000 on December 31, 1996, an increase of $2,160,000. Investment
securities held to maturity increased to $22,975,358 at September 30, 1997 as
compared to $22,770,331 at year end. The investment securities available for
sale increased to $38,987,302 from $36,308,703 at December 31, 1996.
Non-performing Assets: The following table sets forth the Corporation's
non-performing assets at September 30, 1997 and December 31, 1996. Under the
Corporation's nonaccrual policy, a loan is placed on nonaccrual status when
collectibility of principal and interest is in doubt or when principal and
interest is 90 days or more past due.
11
12
September December
Description 1997 1996
(Dollars in Thousands)
(A) Loans accounted for on $298 $339
a nonaccrual basis
(B) Loans which are contractually
past due ninety days or more
as to interest or principal
payments (excluding balances
included in (A) above). 18 14
(C) Loans, the terms of which have
been renegotiated to provide
a reduction or deferral of
interest or principal because of
a deterioration in the financial
position of the borrower. 30 54
(D) Other non-performing assets 115 107
Total deposits increased $7,591,494, or 6.17%, to $130,667,062 on September 30,
1997, from $123,075,568 at year end. Noninterest bearing deposits decreased to
$19,658,759 at September 30, 1997, from $19,973,202 at year end 1996, a
reduction of $314,443, or 1.57%. Interest bearing deposits increased
$7,905,937, or 7.67%, to $111,008,303 on September 30, 1997, from $103,102,366
at December 31, 1996. Average total deposits for the first nine months of 1997
were $126,641,908.
The Corporation relies primarily on internally generated capital growth to
maintain capital adequacy. Total stockholders' equity on September 30, 1997,
was $14,417,665 an increase of $1,154,616, or 8.71%, from $13,263,049 at year
end 1996. Due to the adoption of FAS 115 in 1995, an unrealized gain on the
Available for Sale portion of the corporation's portfolio is reflected through
capital. As of September 30, 1997 this amount was $185,486. Net income for the
nine months was $1,253,606.
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13
Primary capital to total assets at September 30, 1997, was 9.01%, as compared
to 9.13% at year end 1996. Total capital and allowances for loan losses to
total assets at September 30, 1997 were 9.89%, as compared to 9.99% at December
31, 1996. The Corporation's bank subsidiary, United Bank, had risk based
capital of $15,148,000, or 15.83%, at September 30, 1997, as compared to
$13,980,000, or 16.63% at year end 1996. United Bank had excess risk based
capital of 7.83% at September 30, 1997, and 8.63% at December 31, 1996, based
upon the minimum requirement of 8.00%. Based on management's projection,
internally generated capital should be sufficient to satisfy capital
requirements in the foreseeable future.
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Item 6. Exhibits and Reports on Form 8-K.
(A) See Exhibit Index
(B) During the quarter ended September 30, 1997, the Corporation
did not file a Form 8-K Current Report with the Securities and
Exchange Commission.
S I G N A T U R E S
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
UNITED BANCORPORATION OF ALABAMA, INC.
Date: November 12, 1997 /s/ Mitch Staples
-----------------------------
Mitch Staples
Treasurer
(Principal Financial Officer)
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Index To Exhibits
Exhibit
Number Description
- ------- -----------
27 Financial Data Schedule