FNWD - United Bancorporation Of Alabama: Too Early For A Downgrade

2024-07-01 14:49:42 ET

Summary

• United Bancorporation of Alabama stock has risen 16.1% since March, outperforming the S&P 500.
• Despite a slight decrease in net income, the bank's assets and loans have increased, showing strong fundamentals.
• The bank's valuation is low on a price-to-earnings basis, but high on a price-to-book and price-to-tangible book basis, with strong asset quality.

One bank that has just been on a tear the last few months is United Bancorporation of Alabama ( UBAB ). The institution, which has around $1.09 billion in deposits on its books, is far from a large bank. In fact, with a market capitalization of $172.8 million, it's one of the smallest that I have analyzed. As you can imagine, the firm is based out of Alabama. But it also has some locations in Florida. Back in March of this year, I found the institution to be intriguing, so much so that, in a rare move, I rated the company a ‘strong buy’....

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