Union Bank Announces Formation of Bank Holding Company and Semi-Annual Cash Dividend

The Directors of UB Bancorp UBNC (the "Company") are pleased to announce the formation of UB Bancorp, a bank holding company, and the declaration of a cash dividend of $0.10 per share.

UB Bancorp, the bank holding company of Union Bank, was established on May 1, 2020. Shares of UB Bancorp common stock trade under the ticker symbol UBNC on the OTCQX exchange, as Union Bank did previously. Each share of Union Bank common stock will be exchanged into one share of UB Bancorp common stock. Union Bank shareholders presently holding paper stock certificates will soon receive instructions from our stock transfer agent, Broadridge, on how to exchange their shares. Mr. Rob Jones, President and CEO commented, "We are excited to announce the formation of UB Bancorp as the holding company for Union Bank. This action will provide more efficient access to capital markets and create flexibility in the overall capital structure of our Company. We believe this action will put our Company in the best possible position to take advantage of additional opportunities as they arise."

UB Bancorp also announces today that its Board of Directors, effective May 1, 2020, approved a semi-annual cash dividend of $0.10 per share on the Company's common stock. The cash dividend is payable on June 30, 2020 to shareholders of record at the close of business on June 15, 2020.

UB Bancorp and Union Bank are headquartered in Greenville, North Carolina and operate 14 full service branches, and one limited service branch, located in 12 counties throughout Eastern and Central North Carolina. UB Bancorp stock is traded on the OTCQX under the symbol UBNC.

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