<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 June 30, 1997
-----------------
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 Number)
incorporation or organization)
200 East Nashville Avenue, Atmore, Alabama 36502
- -------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(205) 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 June 30, 1997.
Class A Common Stock.... 516,358 Shares
Class B Common Stock.... -0- Shares
Page 1 of 13
<PAGE> 2
UNITED BANCORPORATION OF ALABAMA, INC.
FORM 10-Q
For the Quarter Ended June 30, 1997
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 4. Submission of Matters to a Vote of Security Holders 13
Item 6. Exhibits and Reports on Form 8-K 13
</TABLE>
2
<PAGE> 3
UNITED BANCORPORATION OF ALABAMA, INC.
AND SUBSIDIARY
Item 1. CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<TABLE>
<CAPTION>
June 30 December 31,
1997 1996
<S> <C> <C>
Assets
Cash and due from banks $8,245,867 8,139,453
Federal funds sold 0 650,000
----------- --------------
Cash and cash equivalents 8,245,867 8,789,453
Interest bearing deposits with other
financial institutions 101,760 102,548
Securities Available for sale 39,253,593 36,308,703
Investment securities (market values of $22,498,402 22,488,632 22,770,332
and $22,555,998, respectively)
Loans 80,138,202 75,183,615
Less: Unearned income 701,341 937,725
Allowance for loan losses 1,308,078 1,243,457
----------- --------------
Net loans 78,128,783 73,002,433
Premises and equipment, net 1,983,666 2,012,227
Interest receivable and other assets 3,063,088 2,292,713
----------- --------------
Total assets 153,265,389 145,278,409
=========== ==============
Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing $21,345,403 19,973,202
Interest bearing 107,139,117 103,102,366
----------- --------------
Total deposits 128,484,520 123,075,568
Securities sold under agreements to repurchase 7,549,591 6,754,899
Other borrowed funds 1,332,229 668,307
Accrued expenses and other liabilities 1,959,844 1,516,586
----------- --------------
Total liabilities 139,326,184 132,015,360
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 81,163 26,283
Retained earnings 10,841,632 10,220,356
----------- --------------
14,404,795 13,728,639
Less 31,775 and 33,925 treasury shares, at cost 465,590 465,590
----------- --------------
Total stockholders' equity 13,939,205 13,263,049
----------- --------------
Total liabilities and stockholders' equity 153,265,389 145,278,409
=========== ==============
</TABLE>
3
<PAGE> 4
UNITED BANCORPORATION OF ALABAMA, INC.
AND SUBSIDIARY
CONDENSED CONSOLIDATED
STATEMENT OF EARNINGS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June June
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Interest income:
Interest and fees on loans 2,014,385 1,692,277 3,902,119 3,344,105
Interest on investment securities Available for Sale:
Taxable 545,347 547,946 1,038,315 1,116,544
Nontaxable 58,510 51,271 116,067 102,531
Interest on investment securities Held to Maturity:
Taxable 250,777 310,683 505,845 574,621
Nontaxable 93,492 77,148 177,661 140,646
---------- --------- ---------- ---------
Total investment income 948,126 987,048 1,837,888 1,934,342
Other interest income 54,716 33,703 158,052 122,999
---------- --------- ---------- ---------
Total interest income 3,017,227 2,713,028 5,898,059 5,401,446
Interest expense:
Interest on deposits 1,207,990 1,140,242 2,382,514 2,281,359
Interest on other borrowed funds 114,266 72,453 215,101 147,295
---------- --------- ---------- ---------
Total interest expense 1,322,256 1,212,695 2,597,615 2,428,654
Net interest income 1,694,971 1,500,333 3,300,444 2,972,792
Provision for loan losses 60,000 42,750 120,000 85,500
---------- --------- ---------- ---------
Net interest income after
provision for loan losses 1,634,971 1,457,583 3,180,444 2,887,292
Noninterest income:
Service charge on deposits 236,867 236,734 480,449 469,889
Commission on credit life 21,642 15,698 34,493 28,598
Investment securities gains and losses, net (3,735) -- (10,321) 0
Other 122,603 49,443 317,418 83,825
---------- --------- ---------- ---------
Total noninterest income 377,377 301,875 822,039 582,312
Noninterest expense:
Salaries and benefits 742,244 710,929 1,461,159 1,311,507
Net occupancy expense 209,495 174,363 422,105 339,364
Other 448,295 421,456 844,291 838,599
---------- --------- ---------- ---------
Total non-interest expense 1,400,034 1,306,748 2,727,555 2,489,470
Earnings before income tax expense 612,314 452,710 1,274,928 980,134
Income tax expense 194,820 125,316 395,460 269,905
---------- --------- ---------- ---------
Net earnings 417,494 327,394 879,468 710,229
========== ========= ========== =========
Net earnings per share $ 0.81 $ 0.63 $ 1.70 $ 1.38
Weighted average shares outstanding 516,385 516,385 516,385 516,385
========== ========= ========== =========
</TABLE>
4
<PAGE> 5
UNITED BANCORPORATION OF ALABAMA, INC.
AND SUBSIDIARY
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
FOR THE PERIODS ENDED
(UNAUDITED)
<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)
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 ($1.00 per share) - - (516,386)
Net Change in unrealized gain (losses)
on investments available for sale - - -
----------- ----------- ----------- ------------
Balance December 31, 1996 548,160 5,482 3,476,518 10,220,356
Net earnings six months ended June 1997 879,468
Net Change in unrealized gain (losses)
on investments available for sale
Cash dividends declared ($.50 per share) (258,193)
----------- ----------- ----------- ------------
Balance June 30, 1997 548,160 5,482 3,476,518 10,841,632
=========== =========== =========== ============
</TABLE>
<TABLE>
<CAPTION>
Unrealized
loss on Total
investments Treasury stockholders'
AFS stock equity
<S> <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)
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 ($1.00 per share) (516,386)
Net Change in unrealized gain (losses) -
on investments available for sale (91,130) - (91,130)
----------- ----------- ----------
Balance December 31, 1996 26,283 (465,590) 13,263,049
Net earnings six months ended June 1997 879,468
Net Change in unrealized gain (losses) -
on investments available for sale 54,880 54,880
Cash dividends declared ($.50 per share) (258,193)
----------- ----------- ----------
Balance June 30, 1997 81,163 (465,590) 13,939,205
=========== =========== ==========
</TABLE>
5
<PAGE> 6
<TABLE>
<CAPTION>
United Bank
Statement of Cash Flows (Unaudited) 1997 1996
Six Months Ended June 30, 1997 and 1996
<S> <C> <C>
Operating Activities
Net Income 879,468 $ 710,229
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities
Provision for Loan Losses 120,000 85,500
Depreciation on Premises and Equipment 154,911 119,952
Amortization of Investment Securities 26,522 38,751
Amortization of Investment Securities Available for Sale 32,883 34,106
(Gain) Loss on Sale of Investment Securities -- --
(Gain) Loss on Sale of Investment Securities Available for Sale 10,321 --
(Gain) Loss on Sale of Other Real Estate -- (1,355)
(Gain)Loss on Disposal of Premises and Equipment (171) (3,300)
Writedown of Other Real Estate -- --
(Increase) Decrease in Interest Receivable
and Other Assets (808,962) (425,599)
Increase (Decrease) in Deferred Income Taxes -- 130,504
Increase (Decrease) in Accrued Expenses
and Other Liabilities 443,258 (142,559)
---------- ------------
Net Cash Provided (Used) by Operating Activities 858,230 546,229
---------- ------------
Investing Activities
Proceeds From Interest-bearing Deposits in
Other Financial Institutions 788 601
Purchases of Interest-bearing Deposits in
Other Financial Institutions -- --
Proceeds From Sales of Investment Securities -- --
Proceeds From Sales of Investment Securities Available for Sale 2,505,925 --
Proceeds From Maturities of Investment Securities 1,072,655 4,575,112
Proceeds From Maturities of Investment Securities Available for Sale 1,814,116 4,112,031
Purchases of Investment Securities (817,477) (6,640,622)
Purchases of Investment Securities Available for Sale (7,216,667) (4,583,663)
Net (Increase) Decrease in Loans (5,246,350) (3,970,636)
Purchases of Premises and Equipment (126,350) (183,253)
Proceeds From Sales of Premises and Equipment 171 3,300
Purchases of Other Real Estate -- (20,305)
Proceeds From Sales of Other Real Estate 2,000 74,525
---------- ------------
Net Cash Provided (Used) by Investing Activities (8,011,190) (6,632,910)
---------- ------------
Financing Activities
Net Increase (Decrease) in Deposits, 5,408,952 2,625,888
Net Increase in securities sold under
agreement to repurchase 794,692 (2,255,961)
Cash Dividends (258,193) (260,000)
Purchase of Treasury Stock -- --
Increase (Decrease) in Other Borrowed Funds 663,923 748,782
---------- ------------
Net Cash Provided (Used) by Financing Activities 6,609,374 858,709
---------- ------------
Increase (Decrease) in Cash and Cash Equivalents (543,586) (5,227,972)
Cash and Cash Equivalents at Beginning of Period 8,789,453 13,775,385
---------- ------------
Cash and Cash Equivalents at End of Period 8,245,867 $ 8,547,413
========== ============
</TABLE>
6
<PAGE> 7
UNITED BANCORPORATION OF ALABAMA, INC.
AND SUBSIDIARY
Noted to Interim Consolidated Financial Statements
Note 1 - General
The interim 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.
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 six months ended June 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 for the six months ended June 30, 1997, was $879,468 an increase of
$169,239, or 23.83%, as compared to $710,229 for the same period in 1996. Net
earnings per share increased to $1.70 for the six months ended June 30, 1997,
as compared to $1.38 in 1996.
Total interest income increased $496,613, or 9.19%, to $5,898,059 in 1997 from
$5,401,446 in 1996. Average interest earning assets were $140,940,674 for the
first six months 1997, as compared to $131,833,809 for the same period in 1996,
an increase of $9,106,865, or 6.91%. The average rate earned in 1997 was 8.44%
as compared to 8.24% in 1996, reflecting slightly higher interest rates during
1997. Thus, the increase in total interest income in 1997 is attributed to both
the increase in earning assets, and the rise in interest rates. Net interest
margin increased to 4.72% for the first six months of 1997 as compared to 4.53%
for the same period in 1996. This increase shows the increase in prime rate in
March was not followed by higher rates on the deposits side of the balance
sheet.
Total interest expense increased by $168,961, or 6.96%, in 1997 to $2,597,615
from $2,428,654 in 1996. Average interest bearing liabilities increased to
$114,327,886 in 1997 from $106,345,359 in 1996, an increase of $7,982,527, or
7.51%. The average rate paid fell to 4.58% in 1997, as compared to 4.59% in
1996.
The provision for loan losses increased to $120,000 for the first six months of
1997 as compared to $ 85,500 for the same period in 1996. Net charged-off loans
for the first six months of 1997 were $55,380, as compared to $59,085 for the
same period in 1996.
The allowance for possible loan losses represents 1.63% of gross loans at June
30, 1997, as compared to 1.65% at year-end 1996. Loans on which the accrual of
interest had been discontinued was reduced to $253,556 at June 30, 1997, as
compared to $339,016 at December 31, 1996.
8
<PAGE> 9
Total noninterest income increased to $822,039 for the first six months of
1997, as compared to $582,312 for the same period in 1996, a decrease of
$239,727, or 41.17%. Service charges on deposits increased $10,560, or 2.25%,
to $480,449 in 1997 from $469,889 in 1996. Commissions on credit life increased
to $34,493 in 1997 from $28,598 in 1996, an increase of $5,895, or 20.61%.
Other income increased during the first six months of 1997 to $317,418 from
$83,825 in 1996, an increase of $233,593 or 278.67%. This increase is due to an
insurance settlement, a rebate on Director and Officer insurance, and dividend
from Risk Associates.
Total noninterest expense increased $238,085, or 9.56%, to $2,727,555 during
the first six months of 1997, as compared to $2,489,470 for the same period in
1996. Salaries and benefits increased to $1,461,159 in 1997 from $1,311,507 in
1996, an increase of $149,652, or 11.41%. Occupancy expense increased $82,741,
or 24.38% to $422,105 in 1997 from $339,364 in 1996. This increase in cost is
due to the opening of one branch and two new divisions within the Bank. Other
expenses increased to $844,291 during the first six months of 1997 from
$838,599 for the same period in 1996, an increase of $5,692, or .67%.
Earnings before taxes for the first six months of 1997 increased $294,794, or
30.01%, to $1,274,928 from $980,134 for the same period in 1996. Income tax
expense increased to $395,460 in 1997 from $269,905 in 1996, a decrease of
$125,555, or 46.52%.
Three Months Ended June 30, 1997, and 1996, Compared
Net earnings for the three months ended June 30, 1997, increased to $417,494
from $327,394, an increase of $90,100, or 27.52%. Earnings per share increased
to $.81 from $.63 in 1996.
Total interest income increased $304,199, or 11.21% to $3,017,227 for the
second quarter of 1997, as compared to $2,713,028 for the same period in 1996.
Interest and fees on loans increased $322,108, or 19.03%, to $2,014,385 in
1997, from $1,692,277 in 1996. The average rate earned on interest earning
assets during the second quarter of 1997 was 8.52%, as compared to 8.19% for
the same period in 1996. Therefore the increase in interest earning is due to
both the increase in interest rates and the increase in earning assets. The net
interest margin increased to 4.84% for the second quarter of 1997, as compared
to 4.52% for the same period in 1996. Average interest earning assets increased
to $142,145,367 in 1997, from $133,210,836 in 1996, an increase of $8,934,531,
or 6.71%.
9
<PAGE> 10
Total interest expense increased due to the large increase in interest bearing
liabilities. Total interest expense increased $109,561, or 9.03%. Total
interest expense for the second quarter of 1997 was $1,322,256, as compared to
$1,212,695 for the same period in 1996. Average interest bearing liabilities
for the second quarter of 1997 were $115,043,453, as compared to $107,828,507
for the same period in 1996, an increase of $7,214,946, or 6.70%.
The provision for loan losses increased to $60,000 for the second quarter of
1997 as compared to $42,750 for the same period in 1996. Net recoveries for the
second quarter of 1997 were $46,352, as compared to $70 net charge offs for the
same period in 1996.
Total noninterest income increased to $377,377 for the second quarter of 1997 as
compared to $301,875 in 1996 an increase of $75,502, or 25.01%. Service charges
on deposits increased $133 to $236,867 in 1997, from $236,734 in 1996.
Commissions on credit life insurance increased to $21,642 in 1997 from $15,698
in 1996. Other income increased during the second quarter of 1997 to $122,603
from $49,443 in 1996, an increase of $73,160, or 147.97%. During the second
quarter the Bank received an insurance rebate on Bond Policies of $18,469 and a
rebate on computer services of $21,325.
Total noninterest expense increased $93,286, or 7.14%, to $1,400,034 during the
second quarter of 1997, as compared to $1,306,748 for the same period in 1996.
Salaries and benefits increased to $742,244 in 1997, from $710,929 in 1996, an
increase of $31,315, or 4.40%. This increase has been caused by the opening of
a new branch and the introduction of several new services in the bank.
Occupancy expense increased $35,132, or 20.15%, to $209,495 in 1997 from
$174,363 in 1996. The occupancy expense increase is because the Foley Branch
was in operation for the full quarter in 1997, last year the branch was only
opened in May of the second quarter. Other expense increased to $448,295 during
the second quarter of 1997, as compared to $421,456 for the same period in
1996, an increase of $26,839, or 6.37%.
Earnings before taxes for the second quarter of 1997 increased by $159,604 or
35.26% to $612,314 from $452,710 for the same period in 1996. Income taxes
increased to $194,820 in 1997 from $125,316 in 1996, an increase of $69,504, or
55.46%.
10
<PAGE> 11
Financial Condition and Liquidity
Total assets on June 30, 1997, were $153,265,389, as compared to $145,278,409
on December 31, 1996, an increase of $7,986,980, or 5.50%. Average total assets
for the first six months of 1997 were $151,765,220. The loan to deposit ratio
(net loans) on June 30, 1997, excluding bankers acceptances and commercial
paper, was 60.81%, as compared to 59.31% on December 31, 1996.
Fed Funds Sold decreased to $0 on June 30, 1997, as compared to $650,000 on
December 31, 1996, a decrease of $650,000. The investment securities available
for sale increased to $39,253,593 from $36,308,703 at December 31, 1996. The
investment securities held to maturity decreased from $22,488,632 at December
31, 1996 to $22,770,322 in June of 1997.
Non-performing Assets: The following table sets forth the Corporation's
non-performing assets at June 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.
<TABLE>
<CAPTION>
June December
Description 1997 1996
(Dollars in Thousands)
<S> <C> <C>
(A) Loans accounted for on $254 $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). 23 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. 16 54
(D) Other non-performing assets 145 147
</TABLE>
11
<PAGE> 12
Total deposits increased $5,408,952, or 4.39%, to $128,484,520 on June 30,
1997, from $123,075,568 at year end. Noninterest bearing deposits increased to
$21,345,403 at June 30, 1997, from $19,973,202 at year end 1996, an increase of
$1,372,201, or 6.87%. Interest bearing deposits increased $4,036,751, or 3.92%,
to $107,139,117 on June 30, 1997, from $103,102,366 at December 31, 1996.
Average total deposits for the first six months of 1997 were $126,280,534.
The Corporation relies primarily on internally generated capital growth to
maintain capital adequacy. Total stockholders' equity on June 30, 1997, was
$13,939,205, an increase of $676,156 or 5.10%, from $13,263,049 at year end
1996. This increase is due to earnings, the increase of the market value of the
available for sale portfolio, and the dividend declared of $258,193 at June 30,
1997.
Primary capital to total assets at June 30, 1997, was 9.10%, as compared to
9.13% at year end 1996. Total capital and allowances for loan losses to total
assets at June 30, 1997, were 9.95%, as compared to 9.99% at December 31, 1996.
The Corporation's bank subsidiary, United Bank, had risk based capital of
$14,969,000, or 16.30%, at June 30, 1997, as compared to $13,980,000, or 16.63%
at year end 1996. United Bank had excess risk based capital of 8.30% at June
30, 1997, and 8.63% at December 31, 1996, based upon the minimum requirement of
8.00%.
12
<PAGE> 13
PART II -- OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders.
(a) The annual meeting of security holders of United Bancorporation
of Alabama, Inc. was held May 7, 1997.
(b) The following directors were elected at the annual meeting of
the security holders of United Corporation of Alabama, Inc.:
<TABLE>
<CAPTION>
Nominees For Against Abstentions
-------- --- ------- -----------
<S> <C> <C> <C>
L. Walter Crim 380,597 767 0
H. Leon Esneul 381,258 106 0
William J. Justice 381,036 328 0
</TABLE>
Those directors of the Corporation who were not standing for
re-election and whose terms of office continued after the 1996
Annual Meeting are Robert R. Jones III, Bobby W. Sawyer, Claude
S. Swift and David D. Swift.
Item 6. Exhibits and Reports on Form 8-K.
(a) See Exhibit Index.
(b) During the quarter ended June 30, 1997 the Corporation did not
file a Form 8-K Current Report.
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.
/s/ MITCH STAPLES
Date: August 13, 1997 ----------------------------------------
------------------- Mitch Staples
Treasurer (principal financial officer)
13
<PAGE> 14
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: August 13, 1997 /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
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM (A) THE
REGISTRANT'S INTERIM FINANCIAL STATEMENTS FOR FISCAL PERIOD ENDED 6-30-97 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH (B) FINANCIAL STATEMENTS
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 8,245,867
<INT-BEARING-DEPOSITS> 101,760
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 39,253,593
<INVESTMENTS-CARRYING> 22,488,632
<INVESTMENTS-MARKET> 22,555,998
<LOANS> 80,138,202
<ALLOWANCE> 1,308,078
<TOTAL-ASSETS> 153,265,389
<DEPOSITS> 128,484,520
<SHORT-TERM> 1,332,229
<LIABILITIES-OTHER> 1,959,844
<LONG-TERM> 0
0
0
<COMMON> 5,482
<OTHER-SE> 13,933,723
<TOTAL-LIABILITIES-AND-EQUITY> 153,265,389
<INTEREST-LOAN> 3,902,119
<INTEREST-INVEST> 1,837,888
<INTEREST-OTHER> 158,052
<INTEREST-TOTAL> 5,898,059
<INTEREST-DEPOSIT> 2,382,514
<INTEREST-EXPENSE> 215,101
<INTEREST-INCOME-NET> 3,300,444
<LOAN-LOSSES> 120,000
<SECURITIES-GAINS> (10,321)
<EXPENSE-OTHER> 2,727,555
<INCOME-PRETAX> 1,274,928
<INCOME-PRE-EXTRAORDINARY> 1,274,928
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 879,468
<EPS-PRIMARY> 1.70
<EPS-DILUTED> 1.70
<YIELD-ACTUAL> 8.44
<LOANS-NON> 253,556
<LOANS-PAST> 23
<LOANS-TROUBLED> 16
<LOANS-PROBLEM> 0<F1>
<ALLOWANCE-OPEN> 1,243,457
<CHARGE-OFFS> 72,534
<RECOVERIES> 17,154
<ALLOWANCE-CLOSE> 1,308,077
<ALLOWANCE-DOMESTIC> 1,308,077
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
<FN>
<F1>FINANCIAL INFORMATION NOT CONTAINED IN FINANCIAL STATEMENTS PLEASE SEE 10K OF
OF REGISTRANT
</FN>
</TABLE>
