Union Bankshares(US:UNB)2024-11-14 21:31Financial Performance - Consolidated net income decreased by $1.2 million, or 47.7%, to $1.3 million for Q3 2024 compared to $2.5 million for Q3 2023[87] - The efficiency ratio for Q3 2024 was 83.42%, compared to 75.37% for Q3 2023[89] - The return on average assets for Q3 2024 was 0.36%, down from 0.73% in Q3 2023[89] - Noninterest expenses increased by $483 thousand in Q3 2024 compared to Q3 2023[87] - Total noninterest income decreased by $862 thousand, or 34.9%, to $1,605 thousand for the three months ended September 30, 2024, compared to $2,467 thousand in 2023[100] - Total noninterest expenses increased by $483 thousand, or 5.4%, to $9,409 thousand for the three months ended September 30, 2024, compared to $8,926 thousand in 2023[102] Asset and Liability Management - Total consolidated assets as of September 30, 2024, were $1.52 billion, with gross loans totaling $1.13 billion and deposits of $1.17 billion[88] - Total assets increased to $1,444,618 thousand as of September 30, 2024, compared to $1,365,926 thousand in the previous year, reflecting a growth of approximately 5.8%[94] - Total deposits decreased by $132.3 million, or 10.1%, to $1.17 billion at September 30, 2024, from $1.31 billion at December 31, 2023[105] - Average total deposits decreased by $42.0 million, or 3.5%, for the nine months ended September 30, 2024, compared to the same period in 2023[119] Capital and Equity - The company’s total capital increased to $72.3 million at September 30, 2024, from $65.8 million at December 31, 2023[88] - Stockholders' equity increased from $65.8 million at December 31, 2023, to $72.3 million at September 30, 2024, reflecting net income of $5.8 million for the first nine months of 2024[105] - As of September 30, 2024, the Company and Union met all capital adequacy requirements, with Union's total capital to risk-weighted assets ratio at 12.73%[127] - Union's Tier I capital to risk-weighted assets ratio was 11.85% as of September 30, 2024, exceeding the minimum requirement of 6.00%[128] Interest Income and Expense - Net interest income for the nine months ended September 30, 2024 was $27.9 million, a decrease of $819 thousand or 2.8% compared to the same period in 2023[91] - Interest income on loans increased by $2.3 million due to an increase in average loan volume of $90.0 million and an increase of 46 bps in average yield[91] - Interest expense increased by $8.5 million to $21.4 million for the nine months ended September 30, 2024, driven by an increase in average balance of interest-bearing liabilities[91] - The average cost of funds increased by 84 bps to 2.50% for the nine months ended September 30, 2024 compared to 1.66% for the same period in 2023[91] Loan Performance - Average loans increased by $72.9 million or 7.4% to $1.1 billion for the nine months ended September 30, 2024[91] - Nonaccrual loans totaled $1.7 million as of September 30, 2024, compared to $1.9 million as of September 30, 2023[108] - Allowance for Credit Losses (ACL) on loans was $7.4 million as of September 30, 2024, up from $6.6 million at December 31, 2023[112] - Nonperforming loans to total loans decreased to 0.17% as of September 30, 2024, from 0.20% at December 31, 2023[109] Investment Securities - The Company sold lower-yielding AFS debt securities with a book value of $38.5 million, resulting in a pre-tax realized loss of $1.3 million[115] - Investment securities classified as AFS decreased to $244.9 million, comprising 16.1% of total assets as of September 30, 2024, down from $264.4 million or 18.0% of total assets at December 31, 2023[116] - Net unrealized losses in the AFS investment securities portfolio were $34.4 million as of September 30, 2024, compared to $41.0 million as of December 31, 2023[117] Dividends and Shareholder Returns - The dividend payout ratio for the nine months ended September 30, 2024, was 85.04%, up from 59.34% for the same period in 2023[89] - The Company paid quarterly cash dividends of $0.36 per share during the third quarter of 2024, with dividends declared for the fourth quarter payable on November 7, 2024[128] Other Income and Expenses - Wealth management income increased to $265 thousand for the three months ended September 30, 2024, up 8.6% from $244 thousand in 2023[100] - Service fees rose by $70 thousand for the three months ended September 30, 2024, reflecting a 3.9% increase from $1,785 thousand in 2023[100] - The Company recorded net gains of $83 thousand for the three months ended September 30, 2024, compared to net losses of $41 thousand in 2023 on other investments[101]