Vermont Business Magazine Union Bankshares, Inc(NASDAQ:UNB) today announced results for the three and six months ended June 30, 2018 and declared a regular quarterly cash dividend.Consolidated net income for the three months ended June 30, 2018 was $2.5 million, or $0.54 per share, compared to $2.2 million, or $0.50 per share, for the same period in 2017 and $5.2 million, or $1.16 per share, for the six months ended June 30, 2018, compared to $4.2 million, or $0.93 per share for the same period in 2017.
Second Quarter Highlights
Highlights of the three months ended June 30, 2018 compared to the three months ended June 30, 2017 include:
- Net income increased $223 thousand, or 10.0%, to $2.5 million.
- Net interest income increased $627 thousand, or 9.5%, to $7.2 million.
- Income tax expense decreased $374 thousand, or 45.6%, from $820 thousand to $446 thousand.
For the three months ended June 30, 2018 noninterest income was $2.2 million compared to $2.3 million for the same period in 2017. The decrease is attributable to a reduction in the gain on sale of residential loans from lower sales volume and volatility in interest rates. A provision for loan losses of $150 thousand was recorded for the three months ended June 30, 2018 compared to no provision for the same time period in 2017. Noninterest expenses increased $447 thousand during the comparison periods.
Year-to-Date Highlights
Highlights of the six months ended June 30, 2018 compared to the six months ended June 30, 2017 include:
- Net income increased $1.0 million, or 25.0%, to $5.2 million.
- Net interest income increased $1.2 million, or 9.7%, to $14.1 million.
- Book value per common share increased 2.7% to $13.46.
- Net loan charge-offs were $5 thousand.
- Nonperforming loans were 0.29% of total loans.
For the six months ended June 30, 2018 total noninterest income amounted to $4.62 million for the six months ended June 30, 2018 compared to $4.57 million for the six months ended June 30, 2017. The increase during the comparison period is the result of a gain on the sale of a former branch building and proceeds from a bank owned insurance policy. These increases were partially offset by a decrease in the gain on sale of residential loans.
Total noninterest expenses were $12.5 million for the six months ended June 30, 2018 compared to $11.8 million for the same period in 2017. Increases of $191 thousand in salaries and wages, $325 thousand in employee benefits, and $158 thousand in other expenses occurred during the comparison periods. These increases were partially offset by decreases of $22 thousand in occupancy expense and $11 thousand in equipment expense.
Income tax expense was $959 thousand for the six months ended June 30, 2018 resulting in an effective tax rate of 15.6% compared to $1.5 million, or an effective tax rate of 26.3%, for the six months ended June 30, 2017.
Total assets increased $52.7 million, or 7.9% to reach $717.6 million as of June30, 2018 from $664.9 million as of June30, 2017. Total loans increased $39.0 million, or 7.2% to $581.3 million as of June30, 2018 compared to $542.3 million as of June30, 2017. Sales of qualifying residential mortgages to the secondary market totaled $49.4 million for the first six months of 2018 compared to $58.4 million for the same period in 2017. The Company has retained the servicing on loans totaling $509.7 million as of June30, 2018 compared to $477.5 million as of June30, 2017. Total deposits reached $578.9 million as of June30, 2018 compared to $564.6 million a year ago, or growth of $14.3 million, or 2.5%. Borrowed funds were $69.0 million as of June30, 2018, an increase of $32.6 million compared to June30, 2017. The Company had total capital of $60.1 million with a book value per share of $13.46 as of June30, 2018 compared to $58.5 million and $13.10 per share as of June30, 2017.
On July18, 2018, the Board of Directors declared a regular quarterly cash dividend of $0.30 per share payable August9, 2018 to shareholders of record as of July30, 2018.
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 17 banking offices, three loan centers, and multiple ATMs throughout its geographical footprint.
Source:MORRISVILLE, Vt., July 18, 2018 (GLOBE NEWSWIRE) -- Union Bankshares, Inc