Union Bankshares Announces Earnings for the three and nine months ended September 30, 2024 and Declares Quarterly Dividend

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 $1.3 million, or $0.29 per share, down from $2.5 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 $5.8 million, or $1.27 per share, compared to $8.2 million, or $1.82 per share for the same period in 2023 [1] Balance Sheet - Total assets increased to $1.52 billion as of September 30, 2024, up $123.9 million, or 8.9%, from $1.40 billion a year earlier [2] - Total loans reached $1.13 billion, including $8.4 million in loans held for sale, compared to $1.03 billion with $6.5 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 $54.2 million in the same period of 2023 [3] Deposits and Borrowings - Total deposits were $1.17 billion as of September 30, 2024, down from $1.22 billion a year earlier, with a notable decrease in purchased brokered deposits [4] - Federal Home Loan Bank advances increased to $230.7 million from $90.7 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 $72.3 million with a book value per share of $15.98 as of September 30, 2024, compared to $49.2 million and $10.92 per share a year earlier [5] Income Statement Details - Net interest income for Q3 2024 was $9.4 million, an increase of 3.1% from $9.1 million in Q3 2023, driven by higher interest income [7] - Interest income rose to $17.2 million, up 15.8% from $14.8 million in the same period of 2023, while interest expense increased to $7.8 million from $5.7 million [7] Credit Losses - Credit loss expense for Q3 2024 was $425 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 $2.9 million for Q3 2024, up from $2.5 million in Q3 2023 [9] - Noninterest expenses increased by 5.4% to $9.4 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 $296 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]