Union Bankshares, Inc. (NASDAQ - UNB) ) today announced results for
the three months ended March 31, 2022 and declared a regular
quarterly cash dividend. Consolidated net income for the first
quarter was $2.5 million, or $0.55 per share compared to $2.9
million, or $0.64 cents per share, for the same period in 2021, a
decrease of $394 thousand, or 13.7%.
Interest income was $9.7 million for the three
months ended March 31, 2022 compared to $9.5 million for the
comparable period in 2021, an increase of $226 thousand, or 2.4%,
due to higher volumes of interest earning assets partially offset
by lower average yields. Conversely, despite higher customer
deposit balances, interest expense decreased $338 thousand, or
30.7%, to $763 thousand for the three months ended March 31, 2022
compared to $1.1 million for the comparable period in 2021
attributable to lower interest rates.
No provision for loan losses was recorded for
the three months ended March 31, 2022 compared to $150 thousand for
the comparable quarter in 2021. There was no net charge-off
activity as of March 31, 2022 compared to net recoveries of $8
thousand for the comparable period in 2021.
Noninterest income was $2.1 million for the
three months ended March 31, 2022 compared to $2.6 million for the
three months ended March 31, 2021, a decrease of $566 thousand, or
21.6% caused primarily due to the reduction in net gains on sales
of residential loans. Sales of qualifying residential loans to the
secondary market for the first quarter of 2022 were $16.4 million
resulting in net gains of $14 thousand, compared to sales of $29.7
million and net gains on sales of $894 thousand for the first
quarter of 2021. The rapid increase in the 10-year
treasury yield negatively impacted the premium obtained on sales of
qualifying loans in the first quarter of 2022 compared to the same
period in 2021. This resulted in lower sales volume and more
residential loans retained on the balance sheet. Noninterest
expenses increased $661 thousand, or 8.9%, during the comparison
periods due to increases of $327 thousand in salaries and wages,
$136 thousand in employee benefits, $50 thousand in occupancy
expenses, $118 thousand in equipment expenses, and $30 thousand in
other expenses. Income tax expense decreased $119 thousand.
Total assets were $1.2 billion as of
March 31, 2022 compared to $1.1 billion as of March 31,
2021, an increase of $129.2 million, or 11.7%. Asset growth
continued to be fueled by increases in customer deposits that were
reinvested into investment securities and into our communities
through loans to individuals, businesses, and municipalities.
Investment securities, including interest
bearing deposits in other banks reached $287.6 million at
March 31, 2022 compared to $157.8 million at March 31,
2021. The $129.9 million increase for the comparison period was due
to investing low yielding excess liquidity funds into higher
yielding investments, primarily mortgage backed securities
classified as available-for-sale. Since the settlement of these
purchases, interest rates, specifically the 10-year treasury rate,
increased rapidly resulting in unrealized losses of $22.1 million
as of March 31, 2022. The offset to recording the unrealized
losses was an increase in deferred taxes included in other assets
and accumulated comprehensive losses included in total equity as
discussed below.
Total loans outstanding as of March 31,
2022 were $831.0 million, which included $2.3 million in loans held
for sale, compared to $841.7 million as of March 31, 2021,
with $40.2 million in loans held for sale. The decrease in total
loans during the comparison period was due to a reduction in PPP
loans of $70.4 million as these loans have been forgiven in
accordance with the PPP program and a reduction of $10.8 million in
municipal loans. These decreases were partially offset by increases
of $40.3 million in commercial real estate loans and $29.9 million
in residential loans.
As mentioned above, funding of asset growth
continues to be primarily from customer deposits which increased to
$1.1 billion as of March 31, 2022 compared to $1.0 billion as
of March 31, 2021, an increase of $126.4 million, or 12.5%.
The increase in customer deposits has allowed for a reduction in
borrowed funds of $7.2 million since March 31, 2021.
The Company had total equity capital of $69.4
million and a book value per share of $15.45 as of March 31,
2022 compared to $79.8 million and $17.81 per share as of
March 31, 2021. The decrease in total capital was primarily
attributable to the reduction in accumulated comprehensive loss of
$17.5 million as it relates to unrealized losses in the investment
portfolio discussed above. The unrealized losses in other
comprehensive income during the quarter do not impact regulatory
capital ratios.
The Board of Directors declared a cash dividend
of $0.35 per share for the quarter payable May 5, 2022 to
shareholders of record as of April 30, 2022.
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, wealth management services throughout
northern Vermont and New Hampshire. Union Bank operates 18 banking
offices, three 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
Union Bankshares (NASDAQ:UNB)
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