Vermont Business Magazine Union Bankshares, Inc(NASDAQ:UNB), the parent company of Union Bank based in Morrisville, has announced an increase in net income for the quarter and the year ended December 31, 2016. Consolidated net income for the fourth quarter of 2016 was $2.3 million, or $0.53 per share, compared to $1.9 million, or $0.44 per share, for the same period in 2015, and $8.5 million, or $1.91 per share for the year ended December 31, 2016, compared to $7.9 million, or $1.77 per share, for the same period in 2015.
Fourth Quarter Highlights
Highlights of the three months ended December31, 2016 compared to the three months ended December31, 2015 include:
- Net income increased $418 thousand, or 21.7% to $2.3 million.
- Net interest income increased $456 thousand, or 7.7% to $6.4 million.
- Return on average common equity of 16.51% and return on average assets of 1.38%.
- Total assets increased $62.6 million, or 10.0%, to $691.5 million.
- Loans increased $35.1 million, or 6.92% to $541.7 million.
- Deposits increased $37.3 million, or 6.65%, to $597.7 million.
Total noninterest income for the fourth quarter of 2016 was $2.6 million, an increase of $155 thousand compared to the fourth quarter of 2015. The increase is primarily attributable to an increase of $33 thousand in trust revenue, a $51 thousand increase in loan servicing income, a $45 thousand increase in gain on sale of real estate loans, and a $33 thousand increase in mortgage servicing right income.
Total noninterest expense increased 10.7%, or $611 thousand, to $6.3 million for the fourth quarter of 2016 compared to $5.7 million for the same period in 2015. Increases of $244 thousand in salaries and wages, $131 thousand in pension and employee benefits, $47 thousand in occupancy expense, and $206 thousand in other expenses account for the increase in total noninterest expenses during the comparison periods.
Income tax expense for the fourth quarter of 2016 was $269 thousand compared to $537 thousand for the fourth quarter of 2015. A rehabilitation tax credit related to a low income housing investment project accounted for the reduction in expense.
Year-to-Date Highlights
Highlights of the year ended December 31, 2016 include:
- Net income increased $633 thousand, or 8.0% compared to 2015.
- Net interest income increased $1.7 million, or 7.2% to $24.8 million.
- Return on average common equity of 15.25% and return on average assets of 1.30%.
- Book value per common share increased 4.5% to $12.57 as of December31, 2016.
- Total shareholders’ equity increased 4.7% to $56.1 million compared to December31, 2015.
- The loan servicing portfolio increased $29.6 million to $452.0 million.
- Net loan charge-offs were $104 thousand, or 0.02% of average loans, for the year ended December 31, 2016.
- Nonperforming loans were 0.81% of total loans.
For the year ended December 31, 2016, noninterest income was $10.1 million, an increase of $348 thousand from a year ago. The increase is attributable to increases in service charges on accounts of $107 thousand, loan servicing income of $158 thousand, other service fee income of $49 thousand, gain on sales of securities of $18 thousand, and income from life insurance of $57 thousand, partially offset by a reduction in mortgage servicing right income of $67 thousand.
Total noninterest expense increased 8.6%, or $1.9 million, to $24.2 million for the year ended December 31, 2016 compared to $22.3 million in 2015. Increases of $686 thousand in salaries and wages, $548 thousand in pension and employee benefits, $240 thousand in equipment expense, and $459 thousand in other expenses were partially offset by a decrease in occupancy expense of $16 thousand.
On January18, 2017, the Board of Directors declared a $.01, or 3.6%, increase in the regular quarterly cash dividend from $0.28 to $0.29 per share payable February8, 2017 to shareholders of record as of January28, 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.
MORRISVILLE, Vt., Jan. 18, 2017 (GLOBE NEWSWIRE) -- Union Bankshares, Inc