<PAGE> 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, 1995
----------------------------
Commission file number 2-78572
-----------------
UNITED BANCORPORATION OF ALABAMA, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 63-0833573
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification
incorporation or organization) Number)
200 East Nashville Avenue, Atmore, Alabama 36502
- --------------------------------------------------------------------------------
(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, 1995.
Class A Common Stock.... 484,275 Shares
Class B Common Stock.... -0- Shares
<PAGE> 2
UNITED BANCORPORATION OF ALABAMA, INC.
FORM 10-Q
For the Quarter Ended September 30, 1995
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 1. Legal Proceedings 14
Item 6. Exhibits and Reports on Form 8-K 14
2
<PAGE> 3
Item 1. UNITED BANCORPORATION OF ALABAMA, INC.
AND SUBSIDIARY
Condensed Consolidated Balance Sheets
(Unaudited)
<TABLE>
<CAPTION>
September 30, December 31
1995 1994
<S> <C> <C>
Assets
Cash and due from banks $6,646,709 6,796,587
Federal funds sold 3,150,000 5,975,000
----------- -----------
Cash and cash equivalents 9,796,709 12,771,587
Interest bearing deposits with other
financial institutions 104,282 105,432
Securities Available for sale (market value of $27,033,664 27,033,664 25,157,439
and $25,157,439, respectively)
Investment securities (market values of $27,719,173 27,879,516 30,444,228
and $28,462,295, respectively)
Loans 67,353,376 61,389,337
Less: Unearned income 1,154,804 1,043,761
Allowance for loan losses 1,355,103 1,251,549
----------- -----------
Net loans 64,843,469 59,094,027
Premises and equipment, net 1,605,088 1,698,946
Interest receivable and other assets 2,297,070 2,336,949
----------- -----------
Total assets 133,559,798 131,608,608
=========== ===========
Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing $17,914,832 19,263,719
Interest bearing 97,367,523 94,866,126
----------- -----------
Total deposits 115,282,355 114,129,845
Securities sold under agreements to repurchase 4,154,808 5,873,654
Other borrowed funds 1,007,626 306,609
Accrued expenses and other liabilities 1,041,183 627,831
Total liabilities 121,485,972 120,937,939
----------- -----------
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 (10,950) (637,286)
Retained earnings 9,068,366 8,291,545
----------- -----------
12,539,416 11,136,259
Less 31,775 and 33,925 treasury shares, at cost 465,590 465,590
----------- -----------
Total stockholders' equity 12,073,826 10,670,669
----------- -----------
Total liabilities and stockholders' equity 133,559,798 131,608,608
=========== ===========
</TABLE>
-3-
<PAGE> 4
UNITED BANCORPORATION OF ALABAMA, INC.
AND SUBSIDIARY
Condensed Consolidated Statements of Earnings
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Interest income:
Interest and fees on loans 1,717,500 1,461,040 4,990,859 4,007,872
Interest on investment securities Available for Sale:
Taxable 374,249 425,067 1,243,277 1,432,251
Nontaxable 34,252 17,992 83,485 53,976
Interest on investment securities Held to Maturity:
Taxable 361,674 392,564 1,111,690 1,078,927
Nontaxable 57,919 68,821 183,547 228,018
--------- --------- --------- ---------
Total investment income 828,094 904,444 2,621,999 2,793,172
Other interest income 57,340 33,620 186,396 109,991
--------- --------- --------- ---------
Total interest income 2,602,934 2,399,104 7,799,254 6,911,035
Interest expense:
Interest on deposits 1,100,719 846,254 3,075,847 2,425,272
Interest on other borrowed funds 70,944 37,104 241,113 105,611
--------- --------- --------- ---------
Total interest expense 1,171,663 883,358 3,316,960 2,530,883
Net interest income 1,431,271 1,515,746 4,482,294 4,380,152
Provision for loan losses 51,000 90,000 153,000 270,000
--------- --------- --------- ---------
Net interest income after
provision for loan losses 1,380,271 1,425,746 4,329,294 4,110,152
Noninterest income:
Service charge on deposits 238,556 223,485 682,308 658,333
Commission on credit life 19,284 18,059 70,872 71,398
Investment securities gains and losses, net 0 4,058 31,346 14,150
Other 14,350 26,782 105,266 150,734
--------- --------- --------- ---------
Total noninterest income 272,190 272,384 889,792 894,615
Noninterest expense:
Salaries and benefits 619,812 604,711 1,856,789 1,805,524
Net occupancy expense 166,543 132,680 485,860 443,717
Other 738,870 1,109,259 1,710,510 2,061,873
--------- --------- --------- ---------
Total non-interest expense 1,525,225 1,846,650 4,053,159 4,311,114
Earnings before income tax expense 127,236 (148,520) 1,165,927 693,653
Income tax expense 25,235 (87,650) 389,106 203,282
--------- --------- --------- ---------
Net earnings 102,001 (60,870) 776,821 490,371
========= ========= ========= =========
Net earnings per share $0.20 ($0.13) $1.50 $1.01
Weighted average shares outstanding 516,385 484,275 516,385 484,275
========= ========= ========= =========
</TABLE>
-4-
<PAGE> 5
UNITED BANCORPORATION OF ALABAMA, INC.
AND SUBSIDIARIES
Consolidated Statement of Stockholders' Equity
(Unaudited)
<TABLE>
<CAPTION>
Net Net
Unrealized Unrealized
loss on loss on Total
Common Retained investments investments Treasury stockholders'
Stock Surplus earnings mutual funds AFS stock equity
------ --------- --------- ------------ ----------- -------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance December 31, 1992 $5,482 3,476,518 7,196,939 (91,093) (508,590) 10,079,256
Net earnings 1993 - - 1,369,748 - - 1,369,748
Cash dividends declared ($.50 per share) - - (257,118) - - (257,118)
Unrealized loss on investments in mutual -
funds and other stock - - - 91,093 -
Purchase of treasury stock - 91,093
-
Balance December 31, 1993 5,482 3,476,518 8,309,569 - (508,590) 11,282,979
Net earnings 1994 - - 824,549 - - 824,549
Cash dividends declared ($.50 per share) - - (257,118) - - (257,118)
Unrealized loss on investment in mutual -
funds - - - - - -
Net Change in unrealized gain (losses) (637,286) (637,286)
on investments available for sale
Purchase treasury stock (539,280) (539,280)
Stock Dividend (1 to 15): -
29,960 at $18 (539,280) 539,280 -
2,150 at $20 (43,000) 43,000 -
Cash dividends payable on partial shares (3,175) (3,175)
Balance December 31, 1994 5,482 3,476,518 8,291,545 - (637,286) (465,590) 10,670,669
Net earnings nine months ended
September 30, 1995 - - 776,821 - - 776,821
Cash dividends declared - - - -
Net Change in unrealized gain (losses) -
on investments available for sale - - - - 626,336 - 626,336
------ --------- --------- ------- -------- -------- ----------
Balance September 30, 1995 5,482 3,476,518 9,068,366 - (10,950) (465,590) 12,073,826
</TABLE>
5
<PAGE> 6
UNITED BANCORPORATION
STATEMENT OF CASHFLOWS (UNAUDITED)
For the Period Ending
<TABLE>
<CAPTION>
September September
1995 1994
<S> <C> <C>
Cash Flows from operating activities:
Net earnings 776,821 490,372
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Provision for loan losses 153,000 270,000
Depreciation of premises and equipment 168,385 196,211
Amortization of premiums or accretion
of discounts on investment securities
and interest-earning deposits 80,493 (126,013)
Gains on investment securities held to
maturity, net -
Gains on investment securities available
for sale, net (31,346) (14,150)
Gains on disposal of premises
and equipment, net (10) (4,325)
Writedowns of other real estate -
(Gains) losses on sale of other real
estate, net -
Decrease (increase) in interest receivable
and other assets (376,326) (662,902)
Decrease (increase) in income tax receivable - 335,250
Decrease (increase) in deferred income taxes -
Increase (decrease) in accrued expenses
and other liabilities 413,352 (662,888)
---------- -----------
Net cash provided by operating
activities 1,184,369 (138,445)
Cash flows from investing activities:
Net decrease (increase) in interest-earning
deposits in other financial institutions 1,150 99,151
Proceeds from maturities and calls of
investment securities held to maturity 2,672,188 5,652,256
Proceeds from sales of investment securities
held to maturity -
Purchases of investment securities held to
maturity (150,000) (10,479,792)
Proceeds from maturities and calls of investment
securities available for sale 2,595,509 3,178,196
Proceeds from sales of investment securities
available for sale 2,208,762 8,760,661
Purchases of investment securities available
for sale (5,643,232) (995,000)
Net decrease (increase) in loans (5,902,442) (8,940,859)
Purchases of premises and equipment (74,527) (402,291)
Proceeds from sales of premises and equipment 10 4,325
Purchase of other real estate (2,000) -
Proceeds from sales of other real estate 654 -
---------- -----------
Net cash (used) provided
by investing activities (4,293,928) (3,123,353)
Cash Flows from financing activities:
Net increase (decrease) in deposits 1,152,510 3,220,484
Net increase in securities sold under
agreement to repurchase (1,718,846) (580,913)
Cash dividends (257,118)
Increase (decrease) in other borrowed funds 701,017 (750,319)
Purchase of treasury stock (539,280)
---------- -----------
Net cash provided (used) by
financing activities 134,681 1,092,854
---------- -----------
Net increase (decrease) in cash and
cash equivalents (2,974,878) (2,168,944)
Cash and cash equivalents at beginning of year 12,771,587 10,335,046
---------- -----------
Cash and cash equivalents at end of year 9,796,709 8,166,102
========== ===========
Supplemental disclosures
Cash paid during the period for:
Interest 3,101,919 2,910,387
Income Taxes 430,000 560,000
Noncash Transactions:
Acquisitions of other real estate
acquired through foreclosure 2,000 22,478
Change in net unrealized loss on investment
securities available for sale at year-end 626,336 (408,468)
Transfer of investment securities available
for sale from investments securities
held to maturity - 31,145,694
</TABLE>
6
<PAGE> 7
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, 1994.
7
<PAGE> 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,
1995, and 1994, 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, 1995, was
$776,821, an increase of $286,450 or 58.41%, as compared to $490,371 for the
same period in 1994. The increase in earnings was a result of a slightly
higher net interest income and by a lower loan loss provision. Net earnings
per share increased to $1.50 for the nine months ended September 30, 1995, as
compared to $1.01 in 1994.
Net interest income through the nine months increased 2.33% to $4,482,294. The
net interest margin decreased to 4.85% for the first nine months of 1995 as
compared to 4.88% for the same period in 1994.
Total interest income increased $888,219, or 12.85%, to $7,799,254 in 1995,
from $6,911,035 in 1994. Average interest earning assets were $123,319,206 for
the first nine months 1995, as compared to $119,893,588 for the same period in
1994, an increase of $3,425,698, or 2.86%. The average rate earned in 1995 on
earning assets was 8.45% as compared to 7.71% in 1994, reflecting rising
interest rates during 1994. The increase in total interest income in 1995 is
attributed to an increase in the volume of earning assets and the rising rates.
Total interest expense increased by $786,077, or 31.06%, in 1995 to $3,316,960
from $2,530,883 in 1994. Average interest bearing liabilities increased to
$100,730,708 in 1995 from $99,035,393 in 1994, an increase of $1,695,315, or
1.71%. The average rate paid rose to 4.41% in 1995, from 3.42% in 1994. This
large increase is attributed to higher interest rates on certificates of
deposit and the movement from noninterest bearing liabilities to interest
bearing liabilities.
The provision for loan losses decreased to $153,000 for the first nine months
of 1995 as compared to $270,000 for the same period in 1994. Net charged-off
loans for the first nine months of 1995 were $49,446, as compared to $317,415
for the same period in 1994. Decrease is due to last year's charge offs due to
the settlement of litigation.
8
<PAGE> 9
The allowance for possible loan losses represents 2.01% of gross loans
(excluding bankers acceptances and commercial paper) at September 30, 1995, as
compared to 2.04% at year-end 1994. Loans on which the accrual of interest had
been discontinued or reduced amounted to $364,817 at September 30, 1995, as
compared to $162,844 at December 31, 1994.
Total noninterest income decreased to $889,792 for the first nine months of
1995, as compared to $894,615 for the same period in 1994, a decrease of
$4,823, or .54%. Investment security gains were $31,346 for the first nine
months of 1995, as compared to $14,150 in 1994. Service charges on deposits
increased $23,975, or 3.64%, to $682,308 in 1995 from $658,333 in 1994.
Commissions on credit life decreased to $70,872 in 1995 from $71,398 in 1994, a
decrease of $526, or .74%. Other income decreased during the first nine months
of 1995 to $105,266 from $150,734 in 1994, a decrease of $45,468, or 30.16%.
This decrease is accounted for primarily by the decrease in dividends received.
Total noninterest expense decreased $257,955, or 5.98%, to $4,053,159 during
the first nine months of 1995, as compared to $4,311,114 for the same period in
1994. Salaries and benefits increased to $1,856,789 in 1995 from $1,805,524 in
1994, an increase of $51,265, or 2.84%. Occupancy expense increased $42,143,
or 9.50% to $485,860 in 1995 from $443,717 in 1994. Other expense decreased to
$1,710,510 during the first nine months of 1995 from $2,061,873 for the same
period in 1994, a decrease of $351,363, or 17.04%. Legal fees decreased by
$212,950, or 54.17%, to $180,152 for the first nine months in 1995 from
$393,102 in 1994. FDIC premiums paid on deposits decreased $64,020, or 44.74%,
to $207,121 in 1995, as compared to $143,101 for the same period in 1994. The
FDIC Fund became fully capitalized and premiums on FDIC insurance decreased.
Earnings before taxes for the first nine months of 1995 increased $472,274, or
68.09%, to $1,165,927 from $693,653 for the same period in 1994. Due to higher
operating profits, income tax expense increased to $389,106 in 1995 from
$203,282 in 1994, an increase of $185,824, or 91.41%.
9
<PAGE> 10
Three Months Ended September 30, 1995, and 1994, Compared
Net earnings for the three months ended September 30, 1995 was $102,001, up
from a loss of $60,870, for the same period last year, an increase of $162,871,
or 267.57%. Earnings per share increased to $.20 for the third quarter of
1995, from $(.13) for the same period in 1994.
Total interest income increased $203,830, or 8.50% to $2,602,934 for the third
quarter of 1995, as compared to $2,399,104 for the same period in 1994.
Interest and fees on loans increased $256,460, or 17.55%, to $1,717,500 in
1995, from $1,461,040 in 1994. The average rate earned on interest earning
assets during the third quarter of 1995 was 8.37%, as compared to 7.93% for the
same period in 1994. This slight increase is due to improved interest rates
over the past year. The net interest margin decreased to 4.85% for the third
quarter of 1995, as compared to 5.08% for the same period in 1994. Average
interest earning assets increased to $123,219,769 in 1995, from $121,027,193 in
1994, an increase of $2,192,576, or 1.81%.
Total interest expense increased by $288,305 or 32.64% from $883,358 in 1994 to
$1,171,663 due to rising interest rates experienced in the third quarter of
1995. Average interest bearing liabilities for the third quarter of 1995 were
$101,480,215, as compared to $99,591,318 for the same period in 1994, an
increase of $1,888,897, or 1.90%.
The combined effect of volume and interest rate changes decreased net interest
income by $84,475 or 5.57%.
The provision for loan losses decreased to $51,000 for the third quarter of
1995 as compared to $90,000 for the same period in 1994. Net charged-off loans
for the third quarter of 1995 were $14,256, as compared to $266,482 for the
same period in 1994.
Total noninterest income decreased to $272,190 for the third quarter of 1995 as
compared to $272,384 in 1994, a decrease of $194, or .07%. Service charges on
deposits increased $15,071, or 6.74%, to $238,556 in 1995, from $223,485 in
1994. Commissions on credit life insurance increased to $19,284 in 1995 from
$18,059 in 1994. Other income decreased during the third quarter of 1994 to
$14,350 from $26,782 in 1994, a decrease of $12,432, or 46.42%.
Total noninterest expense decreased $321,425, or 17.41%, to $1,525,225 during
the third quarter of 1995, as compared to $1,846,650 for the same period in
1994. Salaries and benefits increased to $619,812 in 1995, from $604,711 in
1994, an increase of $15,101, or 2.49%. Occupancy expense increased $33,863,
or 25.52%, to $166,543 in 1995 from $132,680 in 1994 due to out source of
10
<PAGE> 11
computer operations in 1995. Other expense decreased to $738,870 during the
third quarter of 1995, as compared to $1,109,259 for the same period in 1994, a
decrease of $370,389, or 33.39%. Legal fees arising from litigation amounted
to $93,488 in 1995 as compared to $172,132 in 1994, a decrease of $78,644.
Expenses associated with the settlement of litigation during the third quarter
of 1994 account for a substantial portion of the greater noninterest expenses
in that year. FDIC premiums paid on deposits decreased $69,454, or 98.89%, to
$782 in 1995, as compared to $70,236 for the same period in 1994. The decrease
is due to the FDIC rebating premiums from May to September. The rebate was due
to banks because the FDIC fund was fully capitalized.
Earnings or (losses) before taxes for the third quarter of 1995 increased by
$275,756 to $127,236 from $(148,520) for the same period in 1994. Income taxes
changed from a benefit of $87,650 in 1994 to an expense of $25,235 in 1995.
Financial Condition and Liquidity
Total assets on September 30, 1995, were $133,559,798, as compared to
$131,608,608 on December 31, 1994, an increase of $1,951,190, or 1.48%.
Average total assets for the first nine months of 1995 were $130,948,015. The
loan portfolio growth was funded largely by investment maturities, net cash in
federal funds sold and new deposits. Net loans increased to $64,843,469 at
September 30, 1995, from $59,094,027 at year end 1994, an increase of
$5,749,442, or 9.73%. The loan to deposit ratio (net loans) on September 30,
1995, excluding bankers acceptances and commercial paper, was 56.25%, as
compared to 51.78% on December 31, 1994. Most of this increase was in consumer
and business loans.
Federal funds sold decreased to $3,150,000 on September 30, 1995, as compared
to $5,975,000 on December 31, 1994, a decrease of $2,825,000. Investment
securities held to maturity decreased to $27,879,516 at September 30, 1995, as
compared to $30,444,228 at year end. The investment securities available for
sale increased to $27,033,664 from $25,157,439 at December 31, 1994.
Non-performing Assets: The following table sets forth the Corporation's
non-performing assets at September 30, 1995 and December 31, 1994. 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
<PAGE> 12
<TABLE>
<CAPTION>
September December
Description 1995 1994
(Dollars in Thousands)
<S> <C> <C> <C>
(A) Loans accounted for on $365 $163
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). 26 35
(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. 43 0
(D) Other non-performing assets 76 75
</TABLE>
Total deposits increased $1,152,510, or 1.01%, to $115,282,355 on September 30,
1995, from $114,129,845 at year end. Noninterest bearing deposits decreased to
$17,914,832 at September 30, 1995, from $19,263,719 at year end 1994, a
reduction of $1,348,887, or 7.00%. Interest bearing deposits increased
$2,501,397, or 2.64%, to $97,367,523 on September 30, 1995, from $94,866,126 at
December 31, 1994. Average total deposits for the first nine months of 1995
were $112,730,857.
The Corporation relies primarily on internally generated capital growth to
maintain capital adequacy. Total stockholders' equity on September 30, 1995,
was $12,073,826, an increase of $1,403,157, or 13.15%, from $10,670,669 at year
end 1994. Due to the adoption of FAS 115, an unrealized loss on the Available
for Sale portion of the corporation's portfolio is reflected through capital.
As of September 30, 1995 this amount was $(10,950). Net income for the nine
months was $776,821.
12
<PAGE> 13
Primary capital to total assets at September 30, 1995, was 9.04%, as compared
to 8.10% at year end 1994. Total capital and allowances for loan losses to
total assets at September 30, 1995, were 10.05%, as compared to 9.06% at
December 31, 1994. The Corporation's bank subsidiary, United Bank, had risk
based capital of $13,107,000, or 15.31%, at September 30, 1995, as compared to
$12,290,000, or 15.54% at year end 1994. United Bank had excess risk based
capital of 7.31% at September 30, 1995, and 7.54% at December 31, 1994, 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.
13
<PAGE> 14
PART II OTHER INFORMATION
Item 1. Legal Proceedings
On September 6, 1995, following two days of mediation, the Bank entered into a
comprehensive settlement with respect to two pending cases which had been
consolidated for trial. The first was a feedlot-related case, R. Bernard
Peacock v. United Bank and Fred Peevy (Circuit Court of Escambia County,
Alabama, Civil Action No. 92-325), which had been filed on September 8, 1992.
Pursuant to the settlement agreement, all of the parties in the case agreed
that (1) all claims against the Bank in the case would be dismissed with
prejudice, and (2) the Bank and one of its insurance carriers would pay to the
plaintiff, in settlement of the plaintiff's claims, an amount substantially
less than the $3 million in compensatory and punitive damages, interests and
court costs originally claimed. The Bank has filed a proof of loss with
another of its insurers which would include claims for recovery of a portion of
the described settlement payment, as well as for other expenses and losses
incurred by the Bank in this and other related cases. The parties also agreed
to settle a related collection case, United Bank of Atmore v. Golden Gin &
Warehouse, Inc. and R. Bernard Peacock, Jr., Case No. 92-130 pending in the
Circuit Court for Escambia County, Alabama. The settlement agreement provided
for partial reimbursement to United Bank for certain crop transactions and
dismissal with prejudice of all Bank claims against Peacock.
As previously disclosed, by reason of the settlement of each of the underlying
lawsuits, all or substantially all of the claims in that case styled State Farm
Fire & Casualty Co. v. Gordon Everette, et al. (U. S. District Court for the
Southern District of Alabama, Case No. 93-440-P-S), filed on May 21, 1993 by
State Farm, were mooted, and that coverage case was dismissed by the Court on
October 12, 1995.
In that case against United Bank styled Joe Louis Adams, et al. v. United Bank,
Robert H. Maxwell, Fred E. Peevy, Jr., and Georgia D. Brooks, Circuit Court for
Escambia County, Alabama, Civil Action No. 93-57 (Division 2), on or about
April 13, 1995, a settlement with each of the plaintiffs was negotiated and
agreed to and entered into, in an amount which was not material to the Bank
because it was paid entirely by insurance underwriters for various parties
involved in the case. There remains, however, a cross-claim against United
Bank by original defendant Georgia D. Brooks.
Item 6. Exhibits and Reports on Form 8-K.
(A) See Exhibit Index
(B) During the quarter ended September 30, 1995, 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 10, 1995 /s/ Mitch Staples
--------------------- ----------------------------------------
Mitch Staples
Treasurer
(Principal Financial Officer)
14
<PAGE> 15
EXHIBIT INDEX
EXHIBIT NUMBER DESCRIPTION
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted from the
Registrant's Interim Financial Statement for fiscal quarter ended 9-30-95
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 6,646,709
<INT-BEARING-DEPOSITS> 104,282
<FED-FUNDS-SOLD> 3,150,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 27,033,664
<INVESTMENTS-CARRYING> 27,879,516
<INVESTMENTS-MARKET> 27,719,173
<LOANS> 67,353,376
<ALLOWANCE> 1,355,103
<TOTAL-ASSETS> 133,559,798
<DEPOSITS> 115,282,355
<SHORT-TERM> 1,007,626
<LIABILITIES-OTHER> 1,041,183
<LONG-TERM> 0
<COMMON> 5,482
0
0
<OTHER-SE> 12,068,344
<TOTAL-LIABILITIES-AND-EQUITY> 133,559,798
<INTEREST-LOAN> 4,990,859
<INTEREST-INVEST> 2,621,999
<INTEREST-OTHER> 186,396
<INTEREST-TOTAL> 7,799,254
<INTEREST-DEPOSIT> 3,075,847
<INTEREST-EXPENSE> 241,113
<INTEREST-INCOME-NET> 4,482,294
<LOAN-LOSSES> 153,000
<SECURITIES-GAINS> 31,346
<EXPENSE-OTHER> 4,053,159
<INCOME-PRETAX> 1,165,927
<INCOME-PRE-EXTRAORDINARY> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 776,821
<EPS-PRIMARY> 1.50
<EPS-DILUTED> 1.50
<YIELD-ACTUAL> 8.45
<LOANS-NON> 364,817
<LOANS-PAST> 34,000
<LOANS-TROUBLED> 43,174
<LOANS-PROBLEM> 0<F1>
<ALLOWANCE-OPEN> 1,251,549
<CHARGE-OFFS> 82,270
<RECOVERIES> 32,824
<ALLOWANCE-CLOSE> 1,355,103
<ALLOWANCE-DOMESTIC> 1,355,103
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
<FN>
<F1>Information not contained in financial statements for 10Q for first 9 months.
</FN>
</TABLE>
