Union Bankshares presents 1Q 2019 earnings and dividend

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Union Bankshares presents 1Q 2019 earnings and dividend

Fri, 04/19/2019 - 7:59am -- Anonymous

Vermont Business Magazine Union Bankshares, Inc (NASDAQ - UNB), the parent company of Union Bank based in Morrisville, on Wednesday announced results for the three months ended March 31, 2019, and declared a regular quarterly cash dividend. Consolidated net income for the first quarter of 2019 was $2.6 million, or $0.59 per share, compared to $2.7 million, or $0.62 per share, for the same period in 2018. Consolidated net income for the first quarter of 2018 included onetime increases to income that did not occur in 2019.

Interest income was $8.7 million for three months ended March 31, 2019 compared to $7.6 million for the three months ended March 31, 2018, an increase of $1.1 million, or 14.3%. The increase during the comparison period is the result of increased volumes of interest earning assets, and the impact of prime rate increases.   Interest expense was $1.2 million for three months ended March 31, 2019 compared to $647 thousand for the three months ended March 31, 2018, an increase of $583 thousand, or 90.1%.  Competition for customer deposits remains strong and continues to put upward pressure on the cost of funds.  Cost of funds for the three months ended March 31, 2019 was 84 basis points compared to 49 basis points for the three months ended March 31, 2018, an increase of 35 basis points.

Total noninterest income amounted to $2.2 million for three months ended March 31, 2019 compared to $2.5 million for the three months ended March 31, 2018.  Results for the three months ended March 31, 2018 included a onetime increase in earnings of $443 thousand from the gain on the sale of a former branch building and proceeds from a bank owned insurance policy.

Total noninterest expenses were $6.5 million for three months ended March 31, 2019 compared to $6.1 million for the same period in 2018.  Increases of $149 thousand in salaries and wages, $38 thousand in employee benefits, $43 thousand in occupancy expenses, $30 thousand in equipment expenses, and $129 thousand in other expenses occurred during the comparison periods.

Total assets increased to $813.3 million as of March 31, 2019 from $722.7 million as of March 31, 2018.  Loan growth continues to drive asset growth with total loans of $656.4 million as of March 31, 2019 compared to $595.4 million of March 31, 2018.   The Company's investment portfolio increased from $68.9 million as of March 31, 2018 to $80.1 million as of March 31, 2019.  Balance sheet growth was funded using a combination of core deposits and wholesale funding options such as brokered deposits and Federal Home Loan Bank advances. Total deposits reached $700.4 million as of March 31, 2019 compared to $623.8 million a year ago, or growth of $76.5 million, or 12.3%.

The Company had total capital of $66.7 million with a book value per share of $14.94 as of March 31, 2019 compared to $59.2 million and $13.25 per share as of March 31, 2018.

On April 17, 2019, the Board of Directors declared a cash dividend of $0.31 payable May 9, 2019 to shareholders of record as of April 30, 2019.

Period Ended
 
2019 FQ1 YTD
3/31/2019
2018 FY
12/31/2018
2017 FY
12/31/2017
2016 FY
12/31/2016
2015 FY
12/31/2015
Balance Sheet ($000)
Total Assets 813,300 805,337 745,831 691,381 628,879
Total Net Loans NA 640,559 589,949 536,495 501,455
Total Deposits 700,400 706,770 647,574 597,660 560,408
Equity Attributable to Parent Company 66,700 64,491 58,661 56,279 53,568
Total Equity 66,700 64,491 58,661 56,279 53,568
Profitability (%)
Net Income($000) 2,600 7,072 8,449 8,511 7,878
Net Income Attributable to Parent($000) 2,600 7,072 8,449 8,511 7,878
ROAA 1.29 0.94 1.21 1.30 1.27
Core ROAA NA 1.34 1.29 1.31 1.28
ROAE 15.85 11.80 14.53 15.25 14.80
ROATCE 16.72 12.59 15.49 16.34 15.97
Core ROAE NA 16.83 15.47 15.28 14.94
Net Interest Margin NA 4.05 4.19 4.14 4.07
Reported: Net Interest Margin NA 4.08 4.22 4.17 4.10
Efficiency Ratio 66.78 65.99 64.06 66.04 64.15
Noninterest Inc/ Operating Rev 22.75 23.98 25.95 28.75 29.58
Balance Sheet Ratios (%)
Loans/ Deposits NA 91.03 90.71 89.34 89.40
Securities/ Assets NA 9.48 9.22 9.97 9.74
Total Equity/ Total Assets 8.20 8.01 7.87 8.14 8.52
Tangible Equity/ Tangible Assets 7.91 7.71 7.52 7.74 8.06
Tang Common Equity/ Tang Assets 7.91 7.71 7.52 7.74 8.06
Asset Quality (%)
NPAs/ Assets NA 0.45 0.47 0.83 0.66
NPA Excl Restructured/ Assets NA 0.09 0.15 0.43 0.35
NPAs & 90+ PD/ Assets NA 0.59 0.54 0.95 0.79
NPAs/ Loans & REO NA 0.56 0.59 1.06 0.82
Nonaccrual & 90+ & OREO/ Assets NA 0.23 0.21 0.55 0.49
NPAs & 90+ PD/ Loans & REO NA 0.74 0.67 1.21 0.98
NPA & Loans 90+/ Tangible Common Equity + LLR NA 7.08 6.55 11.21 8.97
NCOs/ Avg Loans NA 0.02 0.01 0.02 0.01
Loan Loss Reserves/ Gross Loans NA 0.89 0.91 0.97 1.03
Reserves/ NPAs NA 157.53 153.72 91.67 125.26
Loan Loss Provision/ NCO NA 378.15 512.82 144.23 NM
Capital Adequacy
Tier 1 Common Capital (CET1)($000) NA 62,877 61,064 56,881 53,277
Tier 1 Capital($000) NA 62,877 61,064 56,881 53,277
Tier 2 Capital($000) NA 5,739 5,408 5,247 5,201
Total Capital($000) NA 68,616 66,472 62,128 58,478
Total Risk-weighted Assets($000) NA 533,761 486,566 466,238 435,982
Tier 1 Common Capital (CET1) Ratio(%) NA 11.78 12.55 12.20 12.22
Tier 1 Ratio(%) NA 11.78 12.55 12.20 12.22
Total Capital Ratio(%) NA 12.86 13.66 13.32 13.42
Liquidity Coverage Ratio(%) NA NA NA NA NA
Leverage Ratio(%) NA 8.03 8.46 8.40 8.54
Basel III Leverage Ratio(%) NA NA NA NA NA
Per Share Information ($)
Common Shares Outstanding(actual) 4,464,525 4,466,679 4,465,576 4,462,135 4,457,177
Avg Diluted Shares(actual) 4,406,780 4,465,675 4,462,192 4,459,001 4,458,037
Basic Book Value per Share 14.94 14.44 13.14 12.61 12.02
Book Value per Share, As Reported 14.94 14.44 13.14 12.61 12.02
Basic Tangible Book Value per Share 14.36 13.85 12.51 11.95 11.31
Tangible Book Value per Share, As Reported NA NA NA NA NA
Common Dividends Declared per Share 0.31 1.20 1.16 1.11 1.08
EPS after Extra 0.59 1.58 1.89 1.91 1.77
EPS after Extra Growth(%) (4.80) (16.40) (1) 7.90 2.30
Core EPS NA 2.25 2.01 1.91 1.79
Core EPS Growth(%) NA 12 5.10 7.10 4.60
Diluted EPS before Amortization 0.60 1.62 1.93 1.95 1.81
Pre-Provision Earnings per Share 0.57 2.17 1.78 1.62 1.61
Data shown on this page is extracted directly from the company’s documents. S&P makes every effort to line up fields, captions and headers that represent the same data over time, despite variations in how the company may report these items in different documents. In certain instances the variation in the company’s presentation over time may be too significant, potentially resulting in repeating and/or disordered items. Despite possible issues with the presentation, S&P, as always, stands by its commitment to the quality of the data.

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, as well as, asset management services throughout northern Vermont and New Hampshire.  Union Bank operates 18 banking offices, two loan centers, and multiple ATMs throughout its geographical footprint.

Since 1891, Union Bank has helped people achieve their dreams of owning a home, saving for retirement, starting or expanding a business and assisting municipalities to improve their communities.  Union Bank has earned an exceptional reputation for residential lending programs and has been recognized by the US Department of Agriculture, Rural Development for the positive impact made in lives of low to moderate home buyers.  Union Bank is consistently one of the top Vermont Housing Finance Agency mortgage originators and has also been designated as an SBA Preferred lender for its participation in small business lending.  Union Bank's employees contribute to the communities where they work and reside, serving on non-profit boards, raising funds for worthwhile causes, and giving countless hours in serving our fellow residents.  Union Bank is proud to be one of the few independent community banks serving Vermont and New Hampshire and we maintain a strong commitment to our core traditional values of keeping deposits safe, giving customers convenient financial choices and making loans to help people in our local communities buy homes, grow businesses, and create jobs. These values--combined with financial expertise, quality products and the latest technology--make Union Bank the premier choice for your banking services, both personal and business. 

Source: MORRISVILLE, Vt., April 17, 2019 (GLOBE NEWSWIRE) -- Union Bankshares, Inc