Merion Road Capital and Blue Hill Advisors Seek Board Representation at United Bancorporation of Alabama
Merion Road Capital Management, LLC (MRCM) and Blue Hill Advisors LLC (BHA), shareholders in United Bancorporation of Alabama, Inc. (UBAB), have formally requested the appointment of two individuals—Aaron Sallen from MRCM and Jason Blumberg from BHA—as independent directors on UBAB's board. The request follows an extended engagement with management regarding capital allocation, expense discipline, and Board composition. The Investors expressed disappointment over a lack of tangible progress in addressing their proposals. Since releasing a public letter to the Board on July 7, UBAB shares have risen by 15%, significantly outperforming both the Nasdaq Bank Index (+1%) and S&P 500 (+2%). The Investors argue that new directors with expertise in bank investing would enhance board capabilities. They also noted support from other shareholders who share their concerns about strategic direction and capital allocation.
Tickers: $UBAB
Topics: Board of Directors capital allocation shareholder activism