Union Bankshares reports increase in net income for Q1

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Union Bankshares reports increase in net income for Q1

Wed, 04/19/2017 - 3:48pm -- tim

Vermont Business Magazine Union Bankshares, Inc (NASDAQ:UNB), the parent company of Union Bank based in Morrisville, today announced results for the three months ended March 31, 2017. Consolidated net income for the first quarter of 2017 was $1.9 million, or $0.43 per share, compared to $1.8 million, or $0.39 per share, for the same period in 2016. Net interest income was $6.3 million for the quarter ended March 31, 2017, compared to $5.9 million for the same period in 2016, an increase of $367 thousand, or 6.2%. A regular quarterly cash dividend $0.29 per share was also declared.

The positive trend in net interest income was supplemented by a reduction in the provision for loan losses of $75 thousand and an increase of $47 thousand in noninterest income for the quarter ended March 31, 2017 compared to the quarter ended March 31, 2016.  These positive variances were partially offset by an increase in noninterest expenses of $238 thousand, or 4.2%, for the comparison periods.

Total noninterest income amounted to $2.23 million for the three months ended March 31, 2017 compared to $2.19 million for the three months ended March 31, 2016.  The increase in noninterest income over the comparison period is primarily attributable to an increases of $40 thousand in loan servicing income, $24 thousand in mortgage servicing right income, and $20 thousand in overdraft fee income.  These increases were partially offset by reductions in service charges on deposit accounts of $26 thousand and $13 thousand in income on life insurance.

Total noninterest expenses were $5.9 million for the first quarter of 2017 compared to $5.7 million for the same period in 2016.  Increases of $110 thousand in salaries and wages, $73 thousand in occupancy expense, $25 thousand in equipment expenses, and $94 thousand in other expenses occurred during the comparison periods.  These increases were partially offset by a reduction in pension and employee benefit expenses of $64 thousand.

Total assets increased $35.6 million, or 5.6% to reach $676.5 million as of March 31, 2017 from $640.8 million as of March 31, 2016.  Total loans increased $21.2 million, or 4.1% to $541.0 million as of March 31, 2017 compared to $519.8 million as of March 31, 2016.  Sales of qualifying residential mortgages to the secondary market totaled $28.5 million for the first three months of 2017 compared to $22.9 million for the same period in 2016. Total loans serviced, which includes loans on the balance sheet as well loans that have been sold with servicing retained, has grown to $1.0 billion as of March 31, 2017 compared to $936.0 million as of March 31, 2016.  Total deposits reached $582.1 million compared to prior year of $559.0 million, or growth of $23.1 million, or 4.1%.  The Company had total capital of $57.2 million with a book value per share of $12.81 as of March 31, 2017 compared to $54.7 million and $12.26 per share as of March 31, 2016.

On April 19, 2017, the Board of Directors declared a regular quarterly cash dividend $0.29 per share payable May 10, 2017 to shareholders of record as of April 29, 2017.

About Union Bankshares, Inc.

Union Bankshares, Inc., headquartered in Morrisville, Vermont, is the bank holding company parent of Union Bank, which provides commercial, retail and municipal banking services and asset management services throughout northern Vermont and New Hampshire.  Union Bank operates 17 banking offices, three loan centers, and multiple ATMs throughout its geographical footprint.

Source: MORRISVILLE, Vt., April 19, 2017 (GLOBE NEWSWIRE) -- Union Bankshares, Inc