United Bancorporation of Alabama, Inc.

Good morning and welcome to United Bank Corporation's third quarter 2025 earnings call. I'm Brian Bruley. I'm joined today by Mike Benson, our president and CEO, Leanne Jones, our chief financial officer, and David Stewart, our chief credit officer. We'll be taking questions through the Q&A function of the Zoom call, and you'll find that Q&A function on the button either at the top or bottom of the screen. So we'll be monitoring that function throughout the call. So with that, Mike, I'll turn it over to you. Pretty good.

Thank you, Brian. And good morning, everyone. We appreciate you joining us once again for a quick call just to highlight some of the activities for the third quarter. So let me just jump right in. For Q3 2025, we are reporting a net income of $4.2 million and earnings per share of $1.29. That is compared to $5.1 million and earnings per share of $1.45 for the same period last year. Year to date, we are showing net income of $13.5 million and EPS of $4.07. That is compared to $20 million and $5.63 for the same period last year as well. Thus far, we talk about this almost on every one of these calls. Our net interest margin has remained strong as it has in prior quarters. This quarter was no exception. Year to date, we're reporting 4.59%. on the margin. One thing I'll highlight that we may touch on this a little bit later in the call, we do continue to repurchase shares. We have acquired 56,000 shares during the quarter. And I will tell you for the year to date, that's 163,000 shares that we have been able to repurchase thus far. So just with those few highlights, I'll turn it over to David Stewart, our chief credit officer, let him talk a little bit about the loan book.

Sure. Good morning, everyone. Glad to have you this morning. Year-over-year loan growth has been right at 46.5 million or 5.4%. Lung growth in Q3 was right at 1.4% or $12.3 million. Kind of the same story we've been along, same storyline we've been on for the entire year and most of last year. That's driven by multifamily construction. Continue to see good production within that book as we exploit our specialty within the affordable housing space. And we've also seen good growth in commercial real estate. So pleased with what's going there. You will notice that non-approvals decreased in Q3 by 1.2 million to 7.5 million. Doing a little cleanup work. I think we've talked about this on prior calls. The Camden portfolio, Wilcox County, continue to see some adjustments there we're having to make associated with some cleanup work, frankly. That's a forest county in the state of Alabama, a heavy book of consumer loans. So we're just sort of working through resolution in that book. Also, you'll see that the charge-offs for the quarter were right at $1 million. That's related to that book and taking some marks on a couple of other credits as well. On the positive side, you will notice that ORE did decrease by just over almost 701,741. We had a piece of property that had been in the bank's inventory for quite some time. We had possibly held for branch expansion. We decided to go ahead and market that and take that off the books. So that kind of tells you a story on the decrease in ORE. um did want to just highlight non-performings are still a little higher than we would like to they've come down quarter over quarter uh they were at 70 basis points and then past views ticked down a little bit as well um you know hovering around two percent that's primarily driven as we've talked about some sticky larger credits they're just taking time to resolve uh we do have one that's got a you know a resolution in our target. I don't have an estimated time frame. The associated government shutdown has slowed down some of that. And then we've got some other kind of larger credits just working through resolutions. Spent a lot of time there. But... I think we are optimistic right now. As you guys know, we have a pretty sizable ag portfolio. We've had pretty good weather through Q3, so everybody's crops look good, yields look good. So we're hopeful on that front as long as prices on commodities hold up. So that's all I've got on the loan book. So I'll pass it over to Ian for securities discussion.