UNITED BANCORPORATION OF ALABAMA, INC. UNITED BANCORPORATION
OF ALABAMA, INC. AND SUBSIDIARIES
CONSOLIDATED FINANCIAL REPORT
DECEMBER 31, 2021
UNITED BANCORPORATION OF ALABAMA, INC.
AND SUBSIDIARIES
CONSOLIDATED FINANCIAL REPORT
DECEMBER 31, 2021
TABLE OF CONTENTS
Page
INDEPENDENT AUDITOR'S REPORT ............................................................................................................................ 1-2
FINANCIAL STATEMENTS
Consolidated balance sheets .............................................................................................................................................. 3
Consolidated statements of income ................................................................................................................................... 4
Consolidated statements of comprehensive income ........................................................................................................ 5
Consolidated statements of stockholders' equity ............................................................................................................. 6
Consolidated statements of cash flows .............................................................................................................................. 7
Notes to consolidated financial statements .................................................................................................................. 8-49
INDEPENDENT AUDITOR'S REPORT ON SUPPLEMENTAL INFORMATION ...................................................... 50
SUPPLEMENTAL INFORMATION
Consolidating balance sheet ............................................................................................................................................ 51
Consolidating statement of earnings ............................................................................................................................... 52
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors
United Bancorporation of Alabama, Inc. Atmore, Alabama
Opinion
We have audited the accompanying consolidated financial statements of United Bancorporation of Alabama, Inc. and Subsidiaries, which comprise the consolidated balance sheets as of December 31, 2021 and 2020, and the related consolidated statements of income, comprehensive income, stockholders' equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of United Bancorporation of Alabama, Inc. and Subsidiaries as of December 31, 2021 and 2020, and the results of their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of United Bancorporation of Alabama, Inc. and Subsidiaries and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about United Bancorporation of Alabama, Inc. and Subsidiaries' ability to continue as a going concern within one year after the date that the consolidated financial statements are available to be issued.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements, including omissions, are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements.
2000 SOUTHBRIDGE PARKWAY, SUITE 501 • BIRMINGHAM, AL 35209 • 205-445-2880 • 888-277-0020 • FAX 205-445-2940 •www.mjcpa.com
Members of The American Institute of Certified Public Accountants
In performing an audit in accordance with generally accepted auditing standards, we:
Exercise professional judgement and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of United Bancorporation of Alabama, Inc. and Subsidiaries' internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about United Bancorporation of Alabama, Inc. and Subsidiaries' ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Birmingham, Alabama
March 21, 2022
2
UNITED BANCORPORATION OF ALABAMA, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2021 AND 2020
Assets
Cash and due from banks
Interest-bearing deposits in banks Federal funds sold
Cash and short-term investments
Securities available for sale, at fair value (amortized cost of $281,101,133 and $141,515,294 at December 31, 2021 and 2020, respectively) Securities held to maturity, at amortized cost (fair value of $12,105,153 and $15,267,741 at December 31, 2021 and 2020, respectively) Restricted equity securities, at cost
2021
2020
$
42,049,769
71,854,343 154,376,518
6,278,135
$ 108,506,410
-120,182,247 262,882,928
278,953,682 144,854,569
11,787,052 14,701,703
2,218,267 2,047,303
Loans held for sale
62,864 2,817,561
Loans held for investment Less: Allowance for loan losses
Loans, net
NMTC Sub-CDE QLICI loans Premises and equipment, net Interest receivable
Bank owned life insurance Other real estate owned, net Core deposit intangible Goodwill
Other assets
Total assets
Deposits
Noninterest-bearing Interest-bearing
Total deposits
Interest payable Other borrowings Note payable to trust
Liabilities and Stockholders' Equity
Accrued expenses and other liabilities
Total liabilities
Commitments (Note 20)
Stockholders' equity
Preferred stock, par value $.01. Authorized 250,000 shares; no shares issued
Class A common stock, par value $0.01. Authorized 5,000,000 shares; 3,804,277 and 3,790,647 issued; 3,765,965 and 3,742,128 shares outstanding in 2021 and 2020, respectively
Class B common stock, par value $0.01. Authorized 250,000 shares; no shares issued
Additional paid-in capital Retained earnings
Accumulated other comprehensive income (loss), net of tax
Less 239 treasury shares, at cost
Less unvested restricted stock and unallocated KSOP shares (100,505 and 48,280, respectively)
Total stockholders' equity
Total liabilities and stockholders' equity
657,155,493 526,285,086
10,203,372 7,822,526
646,952,121 518,462,560
3,500,000 3,500,000
16,616,105 15,760,075
5,248,188 4,175,263
17,341,720 12,033,331
10,813,474
6,474,056
$ 1,120,942,816
$
424,238,173
558,492,536 382,474,307
982,730,709
13,197,809 9,910,458
10,310,000 10,310,000
4,837,436 2,538,539
1,011,232,920
34,137,926 33,576,095
79,327,583 61,859,668
(1,610,587) 2,504,457
111,892,965 1,951
2,181,118 109,709,896
$ 1,120,942,816
See accompanying notes to consolidated financial statements 3
150,000
643,040
157,000 - - 7,315,420
$ 988,707,713
$ 486,405,309
868,879,616
156,966
219,460
891,858,073
- 38,043
- 37,907
-
-97,978,127 1,951
1,126,536 96,849,640
$ 988,707,713
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United Bancorporation of Alabama Inc. published this content on 31 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 April 2022 16:47:02 UTC.
