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United Bancorporation (UBAB) Announces New Share Buyback Plan

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United Bancorporation of Alabama, Inc. (UBAB - Free Report) recently announced a new stock repurchase program of up to 188,298 shares, representing 5% of the current outstanding shares of its common stock. This plan replaces the old program, which expired in November 2021.

United Bancorporation,  the parent company of United Bank, Town-Country United Bank and UB Community Development, will initiate its buyback in the open market and through negotiated transactions at prevailing market prices at the discretion of management.

Previously, UBAB had announced a one-year share repurchase program in November 2020. Under this plan, the company was authorized to repurchase up to 186,637 shares.

Share buyback aside, the company also pays a regular semi-annual dividend. In January 2022, the company had declared a cash dividend of 16 cents per share. This dividend represented a 33.3% increase from the prior payout.

Based on last day’s closing price of $29, the company’s dividend yield currently stands at 1.10%. This yield is not only attractive for income investors, but also represents a steady income stream.

The recent interest rate hike of 25 basis points by the Federal Reserve and more signaled hikes will help bolster the company’s revenues. Further, supported by its strong organic growth (driven by higher loans and deposits), United Bancorporation is expected to continue efficient capital deployment activities. Through this, it will keep enhancing shareholder value.

Over the past three months, shares of UBAB have lost 2.5% compared with 7.7% decline of the industry it belongs to.

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Currently, United Bancorporation carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Share Buybacks Announced by Other Banks

S&T Bancorp, Inc.’s (STBA - Free Report) board of directors announced an extension to its share repurchase plan on Mar 21, 2022. The plan, earlier set to expire on Mar 31, 2022, will now expire on Mar 31, 2023.

Per the extended plan, S&T Bancorp is permitted to repurchase shares from time to time up to the previously authorized $50 million. Of the total authorization, $37.4 million worth of shares are left to be repurchased.

UBS Group AG (UBS - Free Report) announced on Mar 30, 2022 a new share repurchase program for 2022, commencing on Mar 31, of up to $6 billion of common stock, valid for two years.

This share buyback plan aside, in the first quarter of 2021, UBS had launched a new three-year share repurchase program of up to CHF 4 billion. Under this plan, the company has repurchased 240 million shares for CHF 3.8 billion via a separate trading line on the SIX Swiss Exchange. This represents 6.49% of the current registered share capital of the bank. Of the total repurchase volume, shares worth CHF 1.5 billion were bought back in the ongoing year.


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