Two investment firms are escalating a push for change at United Bancorp. of Alabama in Atmore by formally requesting board seats after months of what they describe as unproductive engagement.
Merion Road Capital Management and Blue Hill Advisors sent a letter to the board on Sept. 8 requesting the appointment of Aaron Sallen and Jason Blumberg as independent directors. The request follows a July 7 letter in which the firms pressed the company on capital allocation, expense discipline and board composition.
The Sept. 8 letter includes a pointed rundown of what the investors say remains unaddressed since July: capital ratio targets, an analysis of their proposed $40 million tender offer, expense and efficiency targets, and board-level capital allocation expertise.
“Inaction is not an option,” the investors wrote, arguing that “high-level discussions are not a substitute for concrete analysis and decisive action” and calling on the board to articulate a clear strategic plan that addresses target capital levels, the potential for accelerated capital return, and a path to grow into the company’s expense base.