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8-K - FORM 8-K - UNITED BANCORPORATION OF ALABAMA INC | h72099e8vk.htm |
Exhibit 99.1
Dear Fellow Shareholder:
Total assets at year end were $456,450,000 which is a decrease of $92,675,000 from year end 2008.
This anticipated decline in assets and deposits was due to temporary liquidity plans of customers.
Capital at year end 2009 represents 10.26% of total assets. The holding company of United Bank,
United Bancorporation of Alabama, Inc. reported a net loss for the full year of 2009 of $4,551,588
as compared to 2008, net income was $545,938. Included in the results for 2009 were dividends on
preferred stock of $460,639; provision for possible losses on loans of $8,267,561; $1,032,000 for
possible losses on foreclosed real estate; and, absorbing $1,293,212 in expenses for FDIC
insurance. In 2009, expenses (not including FDIC expense or reserve provisions) were $583,000 lower
than in 2008. Loans charged off were $4,526,727 in 2009 versus $2,754,185 in 2008. After applying
the provisions and charge offs, at year end 2009, the allowance for losses on loans was
strengthened to $7,435,509 or 2.62% of loans from $3,591,558 or 1.28% at year end 2008.
The last eighteen months have been challenging. In late 2008, the Company determined that economic
activity was declining and the bank began to build liquidity and capital, and, in early 2009, the
economy slowed to the lowest level recorded in the last 75 years. United took steps to respond to
these challenges. These actions provided the assurance of access to funding and the flexibility in
meeting the needs of deposit and loan customers. Secondly, the Company aggressively managed non
interest expenses. Finally, the Company set out to identify loans and other problem assets and
develop plans to bring these to a resolution.
The liquidity strategy has allowed United to control its funding costs and places United in a
position to provide loans to its customers as the recession begins to recede. United remains
committed to providing loans to credit worthy customers in the markets it serves. During these
challenging times, relationships are important. For over 105 years, the bank has worked to build
the confidence of our customers and shareholders. We value those relationships and are committed to
earning that confidence.
Robert R. Jones, III
President and CEO
President and CEO
STATEMENT OF CONDITION
At the close of business December 31,
(Unaudited)
(000s)
At the close of business December 31,
(Unaudited)
(000s)
2009 | 2008 | |||||||
ASSETS |
||||||||
Cash & due from banks |
$ | 54,749 | $ | 126,906 | ||||
Federal funds sold |
| 16,600 | ||||||
Investment securities |
83,872 | 95,355 | ||||||
Loans, net |
275,870 | 276,356 | ||||||
Banks premises & equipment, net |
17,589 | 18,856 | ||||||
Accrued interest receivable &
other assets |
24,370 | 15,053 | ||||||
TOTAL ASSETS |
456,450 | 549,126 | ||||||
LIABILITIES & STOCKHOLDERS EQUITY |
||||||||
Deposits |
405,366 | 492,313 | ||||||
Repurchase agreements |
| 1,861 | ||||||
Other borrowed funds |
2,069 | 2,106 | ||||||
Accrued interest payable & other
liabilities |
2,195 | 2,143 | ||||||
Total Liabilities |
409,630 | 498,423 | ||||||
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 |
22,486 | 22,461 | ||||||
Retained earnings |
24,306 | 28,214 | ||||||
Total Stockholders Equity |
46,820 | 50,703 | ||||||
TOTAL LIABLILITIES & STOCKHOLDERS
EQUITY |
$ | 456,450 | $ | 549,126 | ||||