Merion Road Capital, Blue Hill seek board seats at United Bancorporation of Alabama

Merion Road Capital Management and Blue Hill Advisors requested two board seats at United Bancorporation of Alabama, seeking independent director appointments.

Aaron Sallen and Jason Blumberg were proposed as nominees, citing a need for stronger capital allocation oversight at the board level.

Investors flagged limited progress on capital-return, expense and strategic planning proposals raised in a July 7 letter.

They cited a proposed $40 million tender offer, capital ratio targets and efficiency targets as areas where the board has not responded.

Shares rose 15% since the July 7 letter, outperforming the Nasdaq Bank Index’s 1% gain and the S&P 500’s 2% rise.