Union Bankshares announces increase in net income for Q1

Union Bankshares, Inc (NASDAQ - UNB) today announced Net Income for the first quarter 2013 of $1.7 million, or $0.39 per share, compared to $1.2 million, or $0.28 per share, for 2012. The $510,000, or 41.6% increase in net income year over year is attributable to an increase in noninterest income of $253,000, or 13.3%, a decrease in provision for loan loss of $120,000, or 66.7%, and a decrease in noninterest expenses of $362,000, or 6.5%.
The increase in noninterest income is primarily due to an increase in gain on real estate loans sold to the secondary market of $195 thousand, a $38,000 increase in other service fee income, and a $16,000 increase in trust income. Noninterest expenses saw reductions in all categories year over year with the exception of Equipment Expense which increased $81,000, or 23.5%, mainly due to software licensing fees, and Other Expenses which increased $22,000, or 1.4%.
Pension and employee benefit plan expenses decreased $375,000, or 35.4%, year over year primarily due to the freezing of the pension plan as of October 5, 2012 partially offset by an increase in 401(k) contribution expense due to the implementation of a safe harbor provision in the 401(k) plan effective January 1, 2013.
Total loans grew to $450.0 million as of March 31, 2013 from $437.7 million as of March 31, 2012. The increase is attributable to strong residential loan demand throughout 2012 and the first three months of 2013 coupled with management's decision to increase the residential loan portfolio by keeping a portion of loans originated for sale to the secondary market in portfolio. Interest rate risk management continued to include sales of qualifying residential mortgages to the secondary market totaling $33.7 million during the first quarter of 2013 compared to sales of $22.4 million in the first quarter of 2012. Loans serviced for others grew to $272.5 million, or 27.5% as of March 31, 2013 from $213.8 million as of March 31, 2012. Total deposits reached $496.2 million compared to the prior year of $478.0 million, or growth of $18.2 million or 3.8%. The Company had total capital of $45.7 million with a book value per share of $10.24 as of March 31, 2013 compared to $40.5 million and $9.09 per share at March 31, 2012.
A quarterly cash dividend of $.25 per share was declared on April 17, 2013, payable on May 9, 2013 to shareholders of record April 27, 2013.
Union Bankshares, Inc., headquartered in Morrisville, Vermont, is the bank holding company parent of Union Bank, which offers deposit, loan, trust, investment management and commercial banking services throughout northern Vermont and northwestern New Hampshire. The Company operates 12 banking offices, a loan center and 29 ATM facilities in Vermont; 4 branches and 5 ATM facilities in New Hampshire.
Morrisville, VT April 17, 2013 - Union Bankshares, Inc