United Bancorporation Declines Board Seat Requests from Activist Investors
United Bancorporation, a community bank headquartered in Atmore, Alabama, has rebuffed recent demands from two activist shareholders, Jason Blumberg and Aaron Sallen, who collectively own about 2% of the bank's stock, to join its board of directors. The pair have repeatedly criticized the bank’s strategic direction and operational performance, advocating for changes.
The bank, managing assets totaling $1.4 billion, held a virtual meeting on August 31 with Blumberg and Sallen to discuss potential board nominations. However, no agreement was reached. Shortly after, the activists forcefully pressed for board inclusion via email, stipulating a response within a week. United Bancorporation criticized the demand as disregarding the established nomination process and timeline, cautioning that an expedited decision would overlook the interests of the remaining 98% of shareholders.
Activist Shareholders Outline Concerns; Bank Affirms Governance Procedures
Jason Blumberg, portfolio manager at Blue Hill Advisors, and Aaron Sallen, who manages Merion Road Capital Management, previously highlighted in a July open letter perceived underutilization of the bank’s capital, rising expenses, and stagnant loan and deposit growth. They also proposed share buybacks, tighter cost controls, and a strategic push towards mergers and acquisitions. This letter marked their first public declaration as board candidates aiming to influence change from within.
United Bancorporation responded with a statement reaffirming its commitment to corporate governance norms, assuring that board composition would be evaluated through proper channels with shareholders’ best interests in mind. While the bank did not close the door on future consideration of Blumberg and Sallen as board members, it rejected their accelerated timetable and shifting demands to protect the interests of approximately 94% of shareholders who are not aligned with the activists.
Context Amid Broader Industry Activism
The banking sector has witnessed several activist interventions. In July 2025, an activist investor successfully pushed Comerica to divest certain assets. Later that year in December, the same investor sought to replace KeyCorp's CEO but failed to gain support. United Bancorporation initially maintained a low profile in this dispute, issuing a brief statement in July expressing openness to investor feedback. The firm’s current firm stance underscores its focus on conservative governance and stable shareholder returns amid growing activist pressures.