<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, 1996
----------------------------
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, 1996.
Class A Common Stock.... 516,385 Shares
Class B Common Stock.... -0- Shares
<PAGE> 2
UNITED BANCORPORATION OF ALABAMA, INC.
FORM 10-Q
For the Quarter Ended September 30, 1996
INDEX
<TABLE>
<CAPTION>
PART I - FINANCIAL INFORMATION PAGE
- ------ --------------------- ----
<S> <C>
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
</TABLE>
2
<PAGE> 3
Item 1. UNITED BANCORPORATION OF ALABAMA, INC.
AND SUBSIDIARY
Condensed Consolidated Balance Sheets
(Unaudited)
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
1996 1995
<S> <C> <C>
Assets
Cash and due from banks $ 6,323,053 6,225,385
Federal funds sold 2,325,000 7,550,000
------------- -------------
Cash and cash equivalents 8,648,053 13,775,385
Interest bearing deposits with other
financial institutions 102,900 103,897
Securities Available for sale (market value of $35,417,084 35,417,084 38,413,968
and $38,413,968, respectively)
Investment securities (market values of $21,976,397 22,471,543 21,799,988
and $21,758,613 respectively)
Loans 75,252,193 65,061,452
Less: Unearned income 1,083,821 1,114,870
Allowance for loan losses 1,388,643 1,343,636
------------- -------------
Net loans 72,779,729 62,602,946
Premises and equipment, net 1,775,973 1,667,135
Interest receivable and other assets 2,766,426 2,102,902
------------- -------------
Total assets 143,961,708 140,466,221
============= =============
Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing $ 18,852,492 20,117,028
Interest bearing 101,803,874 97,625,844
------------- -------------
Total deposits 120,656,366 117,742,872
Securities sold under agreements to repurchase 5,566,919 8,690,856
Other borrowed funds 3,497,240 172,516
Accrued expenses and other liabilities 1,334,359 1,462,439
------------- -------------
Total liabilities 131,054,884 128,068,683
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 (221,073) 117,413
Retained earnings 10,111,487 9,263,715
------------- -------------
13,372,414 12,863,128
Less 31,775 and 31,775 treasury shares, at cost 465,590 465,590
------------- -------------
Total stockholders' equity 12,906,824 12,397,538
------------- -------------
Total liabilities and stockholders' equity 143,961,708 140,466,221
============= =============
</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
1996 1995 1996 1995
<S> <S> <S> <C> <C>
Interest income:
Interest and fees on loans 1,876,187 1,717,500 5,220,292 4,990,859
Interest on investment securities Available for Sale:
Taxable 519,300 374,249 1,635,844 1,243,277
Nontaxable 49,943 34,252 152,474 83,485
Interest on investment securities Held to Maturity:
Taxable 281,257 361,674 855,878 1,111,690
Nontaxable 70,834 57,919 211,480 183,547
--------- --------- --------- ---------
Total investment income 921,334 828,094 2,855,676 2,621,999
Other interest income 17,623 57,340 140,622 186,396
--------- --------- --------- ---------
Total interest income 2,815,144 2,602,934 8,216,590 7,799,254
Interest expense:
Interest on deposits 1,130,994 1,100,719 3,412,353 3,075,847
Interest on other borrowed funds 129,948 70,944 277,243 241,113
--------- --------- --------- ---------
Total interest expense 1,260,942 1,171,663 3,689,596 3,316,960
Net interest income 1,554,202 1,431,271 4,526,994 4,482,294
Provision for loan losses 42,750 51,000 128,250 153,000
--------- --------- --------- ---------
Net interest income after
provision for loan losses 1,511,452 1,380,271 4,398,744 4,329,294
Noninterest income:
Service charge on deposits 233,060 238,556 702,949 682,308
Commission on credit life 12,041 19,284 40,639 70,872
Investment securities gains and losses, net 34,964 0 34,964 31,346
Other 74,358 14,350 158,183 105,266
--------- --------- --------- ---------
Total noninterest income 354,423 272,190 936,735 889,792
Noninterest expense:
Salaries and benefits 681,747 619,812 1,993,254 1,856,789
Net occupancy expense 194,711 166,543 534,075 485,860
Other 402,527 738,870 1,241,126 1,710,510
--------- --------- --------- ---------
Total non-interest expense 1,278,985 1,525,225 3,768,455 4,053,159
Earnings before income tax expense 586,890 127,236 1,567,024 1,165,927
Income tax expense 191,153 25,235 461,058 389,106
--------- --------- --------- ---------
Net earnings 395,737 102,001 1,105,966 776,821
========= ========= ========= =========
Net earnings per share $ 0.77 $ 0.20 $ 2.14 $ 1.50
Weighted average shares outstanding 516,385 516,385 516,385 516,385
========= ========= ========= =========
</TABLE>
-4-
<PAGE> 5
UNITED BANCORPORATION OF ALABAMA, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKOLDER'S EQUITY
(UANAUDITED)
================================================================================
<TABLE>
<CAPTION>
===============================================
Shares Common Retained
stock Surplus earnings
<S> <C> <C> <C> <C>
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)
Unrealized loss on investments in -
funds - - -
Net Change in unrealized gain (losses)
on investments available for sale
Purchase treasury stock
Stock Dividend (1 to 15):
29,960 at $18 (539,280)
2,150 at $20 (43,000)
Cash dividends payable on partial shares (3,175)
------- ------ --------- ----------
Balance December 31, 1994 548,160 5,482 3,476,518 8,291,545
Net earnings 1995 1,230,362
- -
Cash dividends declared ($.50 per share) - - (258,192)
Net Change in unrealized gain (losses)
on investments available for sale _ - -
------- ------ --------- ----------
Balance December 31, 1995 548,160 $5,482 3,476,518 9,263,715
Net earnings nine months ended September 1996 1,105,966
Cash dividends declared ($.50 per share) (258,194)
Net Change in unrealized gain (losses)
on investments available for sale
------- ------ --------- ----------
Balance September 30, 1996 548,160 5482 3,476,518 10,111,487
======= ====== ========= ==========
<CAPTION>
Unrealized Unrealized
=======================================================
Total
investments investments Treasury stockholders'
mutual funds AFS stock equity
<S> <C> <C> <C> <C>
Balance December 31, 1993 - (508,590) 11,282,979
Net earnings 1994 - 824,549
Cash dividends declared ($.50 per share) - (257,118)
Unrealized loss on investments in
funds - - -
Net Change in unrealized gain (losses) 491,437 491,437
on investments available for sale (1,128,723) (1,128,723)
Purchase treasury stock (539,280) (539,280)
Stock Dividend (1 to 15): -
29,960 at $18 539,280 -
2,150 at $20 43,000 -
Cash dividends payable on partial shares (3,175)
------ ---------- ---------- ----------
Balance December 31, 1994 - (637,286) (465,590) 10,670,669
Net earnings 1995 1,230,362
- -
Cash dividends declared ($.50 per share) (258,192)
Net Change in unrealized gain (losses)
on investments available for sale - 754,699 - 754,699
------ ---------- ---------- ----------
Balance December 31, 1995 - 117,413 (465,590) 12,397,538
Net earnings nine months ended September 1996 1,105,966
Cash dividends declared ($.50 per share) (258,194)
Net Change in unrealized gain (losses)
on investments available for sale (338,486) (338,486)
------ ---------- ---------- ----------
Balance September 30, 1996 0 (221,073) (465,590) 12,906,824
====== ========== ========== ==========
</TABLE>
5
<PAGE> 6
UNITED BANCORPORATION OF ALABAMA, INC.
AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CASHFLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
1996 1995
<S> <C> <C>
Operating Activities
Net Income $ 1,105,966 $ 776,821
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities
Provision for Loan Losses 128,250 153,000
Depreciation on Premises and Equipment 180,408 168,385
Amortization of Investment Securities 60,576 80,493
Amortization of Investment Securities Held for Sale 51,231
(Gain) Loss on Sale of Investment Securities (2,395) 0
(Gain) Loss on Sale of Investment Securities Held for Sale (32,554) (31,346)
(Gain) Loss on Sale of Other Real Estate (57,193) 0
(Gain)Loss on Disposal of Premises and Equipment (3,300) (10)
Writedown of Other Real Estate 0 0
(Increase) Decrease in Interest Receivable
and Other Assets (416,333) (376,326)
Increase (Decrease) in Deferred Income Taxes 0 0
Increase (Decrease) in Accrued Expenses
and Other Liabilities (128,080) 413,352
----------- -----------
Net Cash Provided (Used) by Operating Activities 886,576 1,184,369
----------- -----------
Investing Activities
Proceeds From Interest-bearing Deposits in
Other Financial Institutions 997 1,150
Purchases of Interest-bearing Deposits in
Other Financial Institutions 0 0
Proceeds From Sales of Investment Securities 501,406 0
Proceeds From Sales of Investment Securities Available for Sale 1,347,374 2,208,762
Proceeds From Maturities of Investment Securities 5,409,480 2,672,188
Proceeds From Maturities of Investment Securities Available for Sale 5,651,328 2,595,509
Purchases of Investment Securities (6,640,622) (150,000)
Purchases of Investment Securities Available for Sale (4,583,663) (5,643,232)
Net (Increase) Decrease in Loans (10,305,033) (5,902,442)
Purchases of Premises and Equipment (289,246) (74,527)
Proceeds From Sales of Premises and Equipment 3,300 10
Purchases of Other Real Estate (66,079) (2,000)
Proceeds From Sales of Other Real Estate 100,763 654
----------- -----------
Net Cash Provided (Used) by Investing Activities (8,869,995) (4,293,928)
----------- -----------
Financing Activities
Net Increase (Decrease) in Deposits, 2,913,494 1,152,510
Net Increase (Decrease) in securities sold under
agreement to repurchase (3,123,937) (1,718,846)
Cash Dividends (258,194) 0
Purchase of Treasury Stock 0 0
Increase (Decrease) in Other Borrowed Funds 3,324,724 701,017
----------- -----------
Net Cash Provided (Used) by Financing Activities 2,856,087 134,681
----------- -----------
Increase (Decrease) in Cash and Cash Equivalents (5,127,332) (2,974,878)
Cash and Cash Equivalents at Beginning of Period 13,775,385 12,771,587
----------- -----------
Cash and Cash Equivalents at End of Period $ 8,648,053 $ 9,796,709
=========== ===========
</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, 1995.
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,
1996, and 1995, 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, 1996, was
$1,105,966, an increase of $329,145 or 42.37%, as compared to $776,821 for the
same period in 1995. The improvement in net income was a result of higher than
usual litigation expenses in 1995, along with improved earnings in 1996. Net
earnings per share increased to $2.14 for the nine months ended September 30,
1996, as compared to $1.50 in 1995.
Net interest income through the nine months increased .99% to $4,526,994. The
net interest margin decreased to 4.54% for the first nine months of 1996 as
compared to 4.85% for the same period in 1995.
Total interest income increased $417,336, or 5.35%, to $8,216,590 in 1996, from
$7,799,254 in 1995. Average interest earning assets were $132,927,240 for the
first nine months 1996, as compared to $123,319,206 for the same period in
1995, an increase of $9,608,034, or 7.79%. The average rate earned in 1996 on
earning assets was 8.25% as compared to 8.45% in 1995, reflecting rising
interest rates during 1995. The increase in total interest income in 1996 is
attributed to an increase in the volume of earning assets.
Total interest expense increased by $372,636, or 11.23%, in 1996 to $3,689,596
from $3,316,960 in 1995. Average interest bearing liabilities increased to
$106,384,099 in 1996 from $100,730,708 in 1995, an increase of $5,653,391, or
5.61%. The average rate paid rose to 4.63% in 1996, from 4.41% in 1995. This
large increase is attributed to slightly higher interest rates on certificates
of deposit and the increase in volume of certificates of deposit.
The provision for loan losses decreased to $128,250 for the first nine months
of 1996 as compared to $153,000 for the same period in 1995. Net charged-off
loans for the first nine months of 1996 were $83,243, as compared to $49,446
for the same period in 1995.
8
<PAGE> 9
The allowance for possible loan losses represents 1.85% of gross loans
(excluding bankers acceptances and commercial paper) at September 30, 1996, as
compared to 2.07% at year-end 1995. Loans on which the accrual of interest had
been discontinued or reduced amounted to $474,859 at September 30, 1996, as
compared to $333,002 at December 31, 1995. The allowance for loan losses
remains adequate given the growth in loans and based upon the risk in the
portfolio.
Total noninterest income increased to $936,735 for the first nine months of
1996, as compared to $889,792 for the same period in 1995, an increase of
$46,943, or 5.28%. Investment security gains were $34,964 for the first nine
months of 1996, as compared to $31,346 in 1995. Of the $34,964 in gains,
$2,395 was generated from the held to maturity portfolio; the bond was within
the three month maturity range. Service charges on deposits increased $20,641,
or 3.02%, to $702,949 in 1996 from $682,308 in 1995. Commissions on credit
life decreased to $40,639 in 1996 from $70,872 in 1995, a decrease of $30,233,
or 42.66%. Other income increased during the first nine months of 1996 to
$158,183 from $105,266 in 1995, an increase of $52,917, or 50.27%. This
increase is accounted for primarily by the sale of OREO property that had been
written off in a prior year.
Total noninterest expense decreased $284,704, or 7.02%, to $3,768,455 during
the first nine months of 1996, as compared to $4,053,159 for the same period in
1995. Salaries and benefits increased to $1,993,254 in 1996 from $1,856,789 in
1995, an increase of $136,465, or 7.35%. This increase is due to the opening
of a new branch and a financial service division. Occupancy expense increased
$48,215, or 9.92% to $534,075 in 1996 from $485,860 in 1995. Other expense
decreased to $1,241,126 during the first nine months of 1996 from $1,710,510
for the same period in 1995, a decrease of $469,384, or 27.44%. Legal fees
decreased by $91,694, or 50.90%, to $88,458 for the first nine months in 1996
from $180,152 in 1995. FDIC premiums paid on deposits decreased $141,101, or
98.60%, to $2,000 in 1996, as compared to $143,101 for the same period in 1995.
The FDIC Fund became fully capitalized and premiums on FDIC insurance
decreased. FDIC premiums are expected to increase next year to $16,000 for the
recapitalization of the SAIF Fund.
Earnings before taxes for the first nine months of 1996 increased $401,097, or
34.40%, to $1,567,024 from $1,165,927 for the same period in 1995. Due to
higher operating profits, income tax expense increased to $461,058 in 1996 from
$389,106 in 1995, an increase of $71,952, or 18.49%.
9
<PAGE> 10
Three Months Ended September 30, 1996, and 1995, Compared
Net earnings for the three months ended September 30, 1996 was $395,737, an
increase of $243,736, or 287.97% from $102,001,for the same period last year.
Earnings per share increased to $.77 for the third quarter of 1996, from $.20
for the same period in 1995.
Total interest income increased $212,210, or 8.15% to $2,815,144 for the third
quarter of 1996, as compared to $2,602,934 for the same period in 1995.
Interest and fees on loans increased $158,687, or 9.24%, to $1,876,187 in 1996,
from $1,717,500 in 1995. The average rate earned on interest earning assets
during the third quarter of 1996 was 8.31%, as compared to 8.37% for the same
period in 1995. This slight decrease is due to stable interest rates over the
past year and increase in competition for larger credits. The net interest
margin decreased to 4.54% for the third quarter of 1996, as compared to 4.85%
for the same period in 1995. Average interest earning assets increased to
$135,099,885 in 1996, from $123,219,769 in 1995, an increase of $11,880,116, or
9.64%.
Total interest expense increased by $89,279 or 7.62% from $1,171,663 in 1995 to
$1,260,942 due to rising interest rates experienced in the third quarter of
1996. Average interest bearing liabilities for the third quarter of 1996 were
$108,128,598, as compared to $101,480,215 for the same period in 1995, an
increase of $6,648,383, or 6.55%.
The combined effect of volume and interest rate changes increased net interest
income by $122,931 or 8.59%.
The provision for loan losses decreased to $42,750 for the third quarter of
1996 as compared to $51,000 for the same period in 1995. Net charged-off loans
for the third quarter of 1996 were $24,158, as compared to $14,256 for the same
period in 1995.
Total noninterest income increased to $354,423 for the third quarter of 1996 as
compared to $272,190 in 1995, an increase of $82,233, or 30.21%. Service
charges on deposits decreased $5,496, or 2.30%, to $233,060 in 1996, from
$238,556 in 1995. Commissions on credit life insurance decreased to $12,041 in
1996 from $19,284 in 1995. Other income increased during the third quarter of
1996 to $74,358 from $14,350 in 1995, an increase of $60,008, or 418.17%. This
increase came from the sale of OREO which had been charged off in a prior year.
Total noninterest expense decreased $246,240, or 16.14%, to $1,278,985 during
the third quarter of 1996, as compared to $1,525,225 for the same period in
1995. Salaries and benefits increased to $681,747 in 1996, from $619,812 in
10
<PAGE> 11
1995, an increase of $61,935, or 9.99%. Occupancy expense increased $28,168,
or 16.91%, to $194,711 in 1996 from $166,543 in 1995 due to out source of
computer operations in 1995. Other expense decreased to $402,527 during the
third quarter of 1996, as compared to $738,870 for the same period in 1995, a
decrease of $336,343, or 45.52%. Legal fees arising from litigation and other
matters amounted to $28,958 in 1996 as compared to $93,488 in 1995, a decrease
of $64,530. Expenses associated with the settlement of litigation during the
third quarter of 1995 account for a substantial portion of the greater
noninterest expenses in that year.
Earnings before taxes for the third quarter of 1996 increased by $459,654 to
$586,890 from $127,236 for the same period in 1995. Income taxes expense rose
to $191,153 for the three months ended September 30, 1996 from $25,235, for the
same period ended 1995. This increase was due to higher earnings.
Financial Condition and Liquidity
Total assets on September 30, 1996, were $143,961,708, as compared to
$140,466,221 on December 31, 1995, an increase of $3,495,487, or 2.49%.
Average total assets for the first nine months of 1996 were $141,043,474. The
loan portfolio growth was funded largely by investment maturities, net cash in
federal funds sold, new deposits and new loans from Federal Home Loan Bank.
Net loans increased to $75,252,193 at September 30, 1996, from $65,061,452 at
year end 1995, an increase of $10,190,741, or 15.66%. The loan to deposit
ratio (net loans) on September 30, 1996, excluding bankers acceptances and
commercial paper, was 60.32%, as compared to 53.17% on December 31, 1995.
Federal funds sold decreased to $2,325,000 on September 30, 1996, as compared
to $7,550,000 on December 31, 1995, a decrease of $5,225,000. Investment
securities held to maturity increased to $22,471,543 at September 30, 1996 as
compared to $21,799,988 at year end. The investment securities available for
sale decreased to $35,417,084 from $38,413,968 at December 31, 1995.
Non-performing Assets: The following table sets forth the Corporation's
non-performing assets at September 30, 1996 and December 31, 1995. 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 1996 1995
(Dollars in Thousands)
<S> <C> <C> <C>
(A) Loans accounted for on $475 $333
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). 22 30
(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. 36 13
(D) Other non-performing assets 2 107
</TABLE>
Total deposits increased $2,913,494, or 2.47%, to $120,656,366 on September 30,
1996, from $117,742,872 at year end. Noninterest bearing deposits decreased to
$18,852,492 at September 30, 1996, from $20,117,028 at year end 1995, a
reduction of $1,264,536, or 6.29%. Interest bearing deposits increased
$4,178,030, or 4.28%, to $101,803,874 on September 30, 1996, from $97,625,844
at December 31, 1995. Average total deposits for the first nine months of 1996
were $119,344,665.
The Corporation relies primarily on internally generated capital growth to
maintain capital adequacy. Total stockholders' equity on September 30, 1996,
was $12,906,824, an increase of $509,286, or 4.11%, from $12,397,538 at year
end 1995. Due to the adoption of FAS 115 in 1995, an unrealized loss on the
Available for Sale portion of the corporation's portfolio is reflected through
capital. As of September 30, 1996 this amount was $(221,073). Net income for
the nine months was $1,105,966.
12
<PAGE> 13
Primary capital to total assets at September 30, 1996, was 8.96%, as compared
to 8.82% at year end 1995. Total capital and allowances for loan losses to
total assets at September 30, 1996, were 9.93%, as compared to 9.78% at
December 31, 1995. The Corporation's bank subsidiary, United Bank, had risk
based capital of $14,144,000, or 16.92%, at September 30, 1996, as compared to
$13,297,000, or 15.66% at year end 1995. United Bank had excess risk based
capital of 8.92% at September 30, 1996, and 7.66% at December 31, 1995, 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
Item 6. Exhibits and Reports on Form 8-K.
(A) See Exhibit Index
(B) During the quarter ended September 30, 1996, 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 11, 1996 /s/ Mitch Staples
---------------------- -------------------------------------
Mitch Staples
Treasurer
(Principal Financial Officer)
14
<PAGE> 15
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
- ------- -----------
<S> <C>
27 - Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 6,323,053
<INT-BEARING-DEPOSITS> 102,900
<FED-FUNDS-SOLD> 2,325,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 35,741,084
<INVESTMENTS-CARRYING> 22,471,543
<INVESTMENTS-MARKET> 21,976,397
<LOANS> 75,252,193
<ALLOWANCE> 1,388,643
<TOTAL-ASSETS> 143,961,708
<DEPOSITS> 120,656,366
<SHORT-TERM> 2,500,000
<LIABILITIES-OTHER> 1,334,359
<LONG-TERM> 0
0
0
<COMMON> 5,482
<OTHER-SE> 12,901,342
<TOTAL-LIABILITIES-AND-EQUITY> 143,961,708
<INTEREST-LOAN> 5,220,292
<INTEREST-INVEST> 2,855,676
<INTEREST-OTHER> 140,622
<INTEREST-TOTAL> 8,216,590
<INTEREST-DEPOSIT> 3,412,353
<INTEREST-EXPENSE> 277,243
<INTEREST-INCOME-NET> 4,526,994
<LOAN-LOSSES> 128,250
<SECURITIES-GAINS> 34,964
<EXPENSE-OTHER> 3,768,455
<INCOME-PRETAX> 1,567,024
<INCOME-PRE-EXTRAORDINARY> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,105,966
<EPS-PRIMARY> 2.14
<EPS-DILUTED> 2.14
<YIELD-ACTUAL> 8.25
<LOANS-NON> 474,859
<LOANS-PAST> 22,000
<LOANS-TROUBLED> 36,000
<LOANS-PROBLEM> 0<F1>
<ALLOWANCE-OPEN> 1,343,636
<CHARGE-OFFS> 140,537
<RECOVERIES> 57,293
<ALLOWANCE-CLOSE> 1,388,643
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
<FN>
<F1>FINANCIAL INFORMATION NOT CONTAINED IN THE FINANCIAL STATEMENTS.
</FN>
</TABLE>
