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Union Bankshares Announces Earnings for the three and nine months ended September 30, 2024 and Declares Quarterly Dividend
UNBUnion Bankshares(UNB) GlobeNewswire News Room·2024-10-16 20:15

Core Viewpoint - Union Bankshares, Inc. reported a decline in net income for the third quarter of 2024, primarily due to strategic balance sheet repositioning and a loss on the sale of securities, while total assets and loans increased year-over-year. Financial Performance - Consolidated net income for Q3 2024 was 1.3million,or1.3 million, or 0.29 per share, down from 2.5million,or2.5 million, or 0.56 per share in Q3 2023, marking a decrease of 47.7% [1][6] - For the nine months ended September 30, 2024, net income was 5.8million,or5.8 million, or 1.27 per share, compared to 8.2million,or8.2 million, or 1.82 per share for the same period in 2023 [1] Balance Sheet - Total assets increased to 1.52billionasofSeptember30,2024,up1.52 billion as of September 30, 2024, up 123.9 million, or 8.9%, from 1.40billionayearearlier[2]−Totalloansreached1.40 billion a year earlier [2] - Total loans reached 1.13 billion, including 8.4millioninloansheldforsale,comparedto8.4 million in loans held for sale, compared to 1.03 billion with 6.5millioninloansheldforsaleinthepreviousyear[2]LoanDemand−StrongloandemandpersistedinQ32024acrossresidential,commercial,andmunicipalportfolios,withqualifyingresidentialloanssoldtotaling6.5 million in loans held for sale in the previous year [2] Loan Demand - Strong loan demand persisted in Q3 2024 across residential, commercial, and municipal portfolios, with qualifying residential loans sold totaling 76.1 million, up from 54.2millioninthesameperiodof2023[3]DepositsandBorrowings−Totaldepositswere54.2 million in the same period of 2023 [3] Deposits and Borrowings - Total deposits were 1.17 billion as of September 30, 2024, down from 1.22billionayearearlier,withanotabledecreaseinpurchasedbrokereddeposits[4]−FederalHomeLoanBankadvancesincreasedto1.22 billion a year earlier, with a notable decrease in purchased brokered deposits [4] - Federal Home Loan Bank advances increased to 230.7 million from 90.7millionyear−over−year,alongside90.7 million year-over-year, alongside 10.0 million in advances from the Federal Reserve's Bank Term Funding Program [4] Equity Capital - Total equity capital rose to 72.3millionwithabookvaluepershareof72.3 million with a book value per share of 15.98 as of September 30, 2024, compared to 49.2millionand49.2 million and 10.92 per share a year earlier [5] Income Statement Details - Net interest income for Q3 2024 was 9.4million,anincreaseof3.19.4 million, an increase of 3.1% from 9.1 million in Q3 2023, driven by higher interest income [7] - Interest income rose to 17.2million,up15.817.2 million, up 15.8% from 14.8 million in the same period of 2023, while interest expense increased to 7.8millionfrom7.8 million from 5.7 million [7] Credit Losses - Credit loss expense for Q3 2024 was 425thousand,comparedtoabenefitof425 thousand, compared to a benefit of 139 thousand in Q3 2023, reflecting support for loan growth rather than credit quality deterioration [8] Noninterest Income and Expenses - Noninterest income, excluding the loss on the bond sale, was 2.9millionforQ32024,upfrom2.9 million for Q3 2024, up from 2.5 million in Q3 2023 [9] - Noninterest expenses increased by 5.4% to 9.4million,attributedtohighersalaries,employeebenefits,andoccupancyexpenses[9]TaxBenefit−IncometaxbenefitforQ32024was9.4 million, attributed to higher salaries, employee benefits, and occupancy expenses [9] Tax Benefit - Income tax benefit for Q3 2024 was 123 thousand, a decrease from an expense of 296thousandinQ32023,mainlyduetothelossonthebondsale[10]DividendDeclaration−TheBoardofDirectorsdeclaredacashdividendof296 thousand in Q3 2023, mainly due to the loss on the bond sale [10] Dividend Declaration - The Board of Directors declared a cash dividend of 0.36 per share for the quarter, payable on November 7, 2024, to shareholders of record as of October 26, 2024 [11]