Would Bring Much Needed Capital Allocation Expertise to the Board at Critical Juncture

Cite Lack of Concrete Progress on Proposals Raised During Extended Engagement

MIAMI, Sept. 8, 2026 /PRNewswire/ -- Merion Road Capital Management, LLC ("MRCM") and Blue Hill Advisors LLC ("BHA") (collectively, the "Investors"), shareholders of United Bancorporation of Alabama, Inc. ("UBAB" or the "Company") (OTCQX: UBAB), today sent a letter to the Company's Board of Directors formally requesting the appointment of MRCM Manager, Aaron Sallen, and BHA Managing Member, Jason Blumberg, as independent directors. 

The request follows an extended private and public engagement regarding the Company's capital allocation, expense discipline and Board composition. The Investors have been disappointed with the lack of tangible progress in addressing or acting on their proposals, and believe shareholders would benefit greatly from new directors with the expertise to critically evaluate these issues, reach defensible conclusions and help execute on them where appropriate.

Since the Investors released their July 7 letter to the Board publicly, UBAB shares have risen +15% vs +1% for the Nasdaq Bank Index and +2% for the S&P 500. In addition, the Investors have heard from many UBAB shareholders who share their concerns and support their involvement.

The full text of today's letter follows.

The Board of Directors
United Bancorporation of Alabama, Inc.
200 East Nashville Avenue
Atmore AL, 36502

Attention: Michael Vincent, President and CEO, and the Board of Directors

Dear Members of the Board:

Merion Road Capital Management, LLC ("MRCM") and Blue Hill Advisors LLC ("BHA") are writing to formally request that the Board of Directors (the "Board") of United Bancorporation of Alabama, Inc. ("UBAB" or the "Company") appoint MRCM Manager, Aaron Sallen, and BHA Managing Member, Jason Blumberg, as independent directors of the Company.

We're making this request after years of engagement with UBAB's management team and other shareholders regarding what we believe are significant opportunities to enhance shareholder value. Our conclusions following this engagement are as follows:

1. UBAB is at a critical juncture where capital allocation and strategic planning are key to producing strong long-term shareholder returns.
   
   
2. MRCM and BHA issued a letter on July 7 outlining several paths for the Company to improve value including better capital allocation, expense discipline and board enhancement. Since then, we have heard from many shareholders who support our involvement, and UBAB's stock price has meaningfully outperformed the market: +15% vs +1% for the Nasdaq Bank Index and +2% for the S&P 500.
   
   
3. Despite our long engagement and investor support, we have not seen any tangible progress from the Board in addressing or acting on our proposals. Shareholders would benefit greatly from directors with the expertise to critically evaluate these issues, reach defensible conclusions and help execute on them where appropriate.
   
   
4. We possess deep bank investing and advisory expertise that would significantly bolster the Board's capabilities and complement the existing directors' skillsets. Furthermore, we are meaningful shareholders who have actively purchased the stock over the past several years.

Inaction is not an option. High-level discussions are not a substitute for concrete analysis and decisive action. The Board must develop and articulate a clear strategic plan that addresses fundamental questions regarding, among other things, target capital levels, the potential for accelerated capital return, and concrete plans to grow into the Company's elevated expense base. To date, the Board has not substantively addressed the questions we raised in our July 7 letter:

Our addition to the Board would bring the decades of investing and advisory experience necessary to thoughtfully tackle these issues.

Aaron Sallen
Aaron has 20 years of professional investing experience in both the public and private markets.  He began his career at Macquarie Capital investing on behalf of the firm's managed infrastructure funds and proprietary balance sheet.  These include the take private of Waste Industries, the internal acquisition of an M&A business, and the formation of a de novo municipal bond insurer.  He subsequently worked at Napier Park Global Capital, a multi-billion dollar hedge fund, where he was responsible for identifying, analyzing, and monitoring public equity investments using a value-oriented, special situations mandate.  For the past 10 years, Aaron has built and run his own investment firm, MRCM.  MRCM's small cap fund has annualized returns of +17.2% in comparison to +11.4% for the Russell 2000 and +7.0% for the Barclay Hedge Fund Index.

He received his B.A. from Dartmouth College (cum laude) and his M.B.A. from The University of Chicago.

Jason Blumberg
Jason brings over 15 years of experience in financial services with a focus on U.S. regional and community banks. He began his career in the financial institutions groups of Lazard, Jefferies, and Hovde, advising on M&A and capital raising transactions exceeding $10 billion in value. He later leveraged his sector knowledge and relationships to make concentrated investments in high-conviction banking opportunities at Driver Management and HoldCo Asset Management. His combined experience in advisory and investing provides a differentiated perspective for both banks and investors.

He received his B.A. from Amherst College (magna cum laude) and a master's degree from Columbia University, where he was a fellowship recipient.

We recognize that the Board must conduct an appropriate evaluation of our qualifications, and we welcome the opportunity to meet directly with the independent directors as part of that process. We respectfully request that the Board move promptly to consider our appointment and provide us with a clear timetable for its decision.

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SOURCE Merion Road Capital Management