Union Bankshares, Inc. (NASDAQ - UNB) today announced results for
the three and six months ended June 30, 2021 and declared a regular
quarterly cash dividend. Consolidated net income for the three
months ended June 30, 2021 were $3.0 million, or $0.67 per share,
compared to $2.7 million, or $0.60 per share, for the same period
in 2020 and $5.9 million, or $1.31 per share, for the six months
ended June 30, 2021, compared to $4.9 million, or $1.09 per share,
for the same period in 2020.
Union continued its participation in the
Paycheck Protection Program ("PPP") initiated by the Small Business
Administration ("SBA") and originated $31.8 million in PPP loans in
2021. This was in addition to the $70.3 million in PPP loans
originated in 2020, for a total of $102.1 million in origination
under the PPP. As of June 30, 2021, $44.8 million in PPP loans
have been forgiven by the SBA.
Second Quarter Highlights
Consolidated net income increased $323 thousand,
or 12.1%, to $3.0 million for the second quarter of 2021 compared
to the second quarter of 2020 due to increases in net interest
income of $1.1 million, noninterest income of $151 thousand, and a
reduction of $425 thousand in the provision for loan losses,
partially offset by increases in noninterest expenses of $1.3
million and income tax expense of $116 thousand.
Net interest income improved to $8.9 million for
the three months ended June 30, 2021 compared to $7.8 million for
the three months ended June 30, 2020, an increase of $1.1 million,
or 14.7%. The low interest rate environment continues to put
downward pressure on earning asset yields, however, this is
currently offset by the larger earning asset base and recognition
of fee income on PPP loans. The low interest rate environment has
also resulted in a decrease in interest expense despite the high
levels of customer deposit balances.
The provision for loan losses was $75 thousand
for the three months ended June 30, 2021 compared to $500 thousand
for the same period in 2020. The provision for the second quarter
of 2020 was impacted by management's adjustment to the economic
qualitative factors utilized to estimate the allowance for loan
losses due to the economic disruption caused by the pandemic. The
allowance for loan losses as of June 30, 2021 is determined to
be sufficient based on the current size and mix of the loan
portfolio and assessment of qualitative factors.
Year-to-Date Highlights
Consolidated net income was $5.9 million, or
$1.31 per share, compared to $4.9 million, or $1.09 per share, for
the six months ended June 30, 2021 and 2020, respectively. The
increase in earnings was due to increases of $2.0 million in net
interest income, $254 thousand in noninterest income, and a
decrease of $575 thousand in the provision for loan losses,
partially offset by increases in noninterest expenses of $1.6
million and income tax expense of $301 thousand.
Interest income increased $1.3 million, or 7.2%,
to $19.4 million for the six months ended June 30, 2021 compared to
$18.1 million for the six months ended June 30, 2020. Interest
expense was $2.1 million for the six months ended June 30, 2021
compared to $2.8 million for the six months ended June 30,
2020.
Total noninterest income amounted to $5.8
million for the six months ended June 30, 2021 compared to $5.5
million for the six months ended June 30, 2020, an increase of $254
thousand, or 4.6%. The increase is primarily due to an increase in
ATM network income as a result of increased debit card usage. Gain
on sales of qualifying residential loans amounted to $2.0 million
for both periods resulting from sales of $85.2 million for the six
months ended June 30, 2021 compared to $97.8 million for the same
period in 2020.
Total noninterest expenses were $15.8 million
for the six months ended June 30, 2021 compared to $14.3 million
for the same period in 2020, an increase of $1.6 million, or 10.9%.
Salaries and wages increased $686 thousand during the comparison
period due to annual salary increases, hiring of personnel in
preparation for upcoming retirements, and timing of the recognition
of deferred loan origination costs. Other expenses increased $527
thousand during the comparison period primarily due to increases in
the FDIC insurance assessment and Vermont Franchise taxes due to
the increases in total assets and the customer deposit base.
Increases in loans, investment securities, and
liquidity contributed to total assets reaching $1.07 billion as of
June 30, 2021 from $917.1 million as of June 30, 2020.
Total loans were $783.0 million as of June 30, 2021 compared
to $735.4 million as of June 30, 2020, an increase of $47.7
million increase primarily due to growth in the residential and
commercial real estate portfolios partially off set by the net
decrease in PPP loans. Total deposits increased $148.2 million, or
18.1%, since June 30, 2020 due to the general increase of
money supply provided to our customers through various stimulus
packages. The high level of customer deposit balances has allowed
for less reliance on wholesale funding which was $7.2 million as of
June 30, 2021 compared to $9.5 million as of June 30,
2020.
The Company had total equity capital of $82.4
million with a book value per share of $18.37 as of June 30,
2021 compared to $75.8 million and $16.93 per share as of
June 30, 2020.
The Board of Directors declared a cash dividend
of $0.33 per share for the quarter payable August 5, 2021 to
shareholders of record as of July 31, 2021.
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. All of
these efforts have resulted in Union receiving and "Outstanding"
rating for its compliance with the Community Reinvestment Act
("CRA") in its most recent examination. 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. Member FDIC.
Equal Housing Lender.
Forward-Looking Statements
Statements made in this press release that are
not historical facts are forward-looking statements. Investors are
cautioned that all forward-looking statements necessarily involve
risks and uncertainties, and many factors could cause actual
results and events to differ materially from those contemplated in
the forward-looking statements. When we use any of the words
“believes,” “expects,” “anticipates” or similar expressions, we are
making forward-looking statements. The following factors, among
others, could cause actual results and events to differ from those
contemplated in the forward-looking statements: uncertainties
associated with general economic conditions; changes in the
interest rate environment; inflation; political, legislative or
regulatory developments; acts of war or terrorism; the markets'
acceptance of and demand for the Company's products and services;
technological changes, including the impact of the internet on the
Company's business and on the financial services market place
generally; the impact of competitive products and pricing; and
dependence on third party suppliers. For further information,
please refer to the Company's reports filed with the Securities and
Exchange Commission at www.sec.gov or on our investor page at
www.ublocal.com.
Contact: David S. Silverman(802) 888-6600 |
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