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Union Bankshares, Inc. (NASDAQ: UNB) reported a consolidated net income of $2.4 million for the first quarter of 2024, with a decrease of 18.8% compared to the same period in 2023. Total assets increased by 4.1% to $1.42 billion, driven by loan growth. The company's investment securities faced unrealized losses of $44.7 million due to the interest rate environment. Total deposits decreased to $1.17 billion, and Federal Home Loan Bank advances increased to $115.7 million. The company's equity capital rose to $63.8 million, with a book value per share of $14.12. The Board of Directors declared a cash dividend of $0.36 per share for the quarter.
Union Bankshares, Inc. (NASDAQ: UNB) ha riportato un reddito netto consolidato di 2,4 milioni di dollari per il primo trimestre del 2024, con una diminuzione del 18,8% rispetto allo stesso periodo del 2023. Gli asset totali sono aumentati del 4,1% arrivando a 1,42 miliardi di dollari, grazie alla crescita dei prestiti. I titoli d'investimento della società hanno subito perdite non realizzate di 44,7 milioni di dollari a causa del contesto dei tassi di interesse. I depositi totali sono diminuiti a 1,17 miliardi di dollari, mentre gli anticipi della Federal Home Loan Bank sono aumentati a 115,7 milioni di dollari. Il capitale azionario della società è cresciuto fino a 63,8 milioni di dollari, con un valore contabile per azione di 14,12 dollari. Il Consiglio di Amministrazione ha dichiarato un dividendo in contanti di 0,36 dollari per azione per il trimestre.
Union Bankshares, Inc. (NASDAQ: UNB) reportó un ingreso neto consolidado de 2.4 millones de dólares para el primer trimestre de 2024, con una disminución del 18.8% en comparación con el mismo período de 2023. Los activos totales aumentaron un 4.1% a 1.42 mil millones de dólares, impulsados por el crecimiento de los préstamos. Los valores de inversión de la compañía enfrentaron pérdidas no realizadas de 44.7 millones de dólares debido al entorno de tasas de interés. Los depósitos totales disminuyeron a 1.17 mil millones de dólares, y los adelantos del Banco Federal de Préstamos para la Vivienda aumentaron a 115.7 millones de dólares. El capital accionario de la compañía aumentó a 63.8 millones de dólares, con un valor en libros por acción de 14.12 dólares. La Junta Directiva declaró un dividendo en efectivo de 0.36 dólares por acción para el trimestre.
Union Bankshares, Inc. (NASDAQ: UNB)는 2024년 첫 분기에 240만 달러의 순수익을 보고했으며, 이는 2023년 같은 기간에 비해 18.8% 감소한 수치입니다. 총 자산은 대출 증가에 힘입어 4.1% 증가하여 14억 2천만 달러에 달했습니다. 회사의 투자 증권은 이자율 환경으로 인해 4470만 달러의 미실현 손실을 겪었습니다. 총 예금은 11억 7천만 달러로 감소했으며, 연방주택대출은행의 대출은 1억 1570만 달러로 증가했습니다. 회사의 자본금은 6380만 달러로 증가했으며, 주당 장부가치는 14.12달러입니다. 이사회는 분기별 주당 0.36달러의 현금 배당을 선언했습니다.
Union Bankshares, Inc. (NASDAQ: UNB) a rapporté un revenu net consolidé de 2,4 millions de dollars pour le premier trimestre de 2024, marquant une baisse de 18,8% par rapport à la même période en 2023. Les actifs totaux ont augmenté de 4,1% pour atteindre 1,42 milliard de dollars, stimulés par la croissance des prêts. Les titres d'investissement de la société ont subi des pertes non réalisées de 44,7 millions de dollars en raison de l'environnement des taux d'intérêt. Les dépôts totaux ont diminué à 1,17 milliard de dollars, et les avances de la Federal Home Loan Bank ont augmenté à 115,7 millions de dollars. Le capital propre de la société a augmenté pour atteindre 63,8 millions de dollars, avec une valeur comptable par action de 14,12 dollars. Le conseil d'administration a déclaré un dividende en espèces de 0,36 dollar par action pour le trimestre.
Union Bankshares, Inc. (NASDAQ: UNB) meldete für das erste Quartal 2024 ein konsolidiertes Nettoeinkommen von 2,4 Millionen US-Dollar, was einem Rückgang von 18,8% gegenüber dem gleichen Zeitraum im Jahr 2023 entspricht. Die Gesamtaktiva stiegen um 4,1% auf 1,42 Milliarden US-Dollar, angetrieben durch Kreditwachstum. Die Wertpapiere des Unternehmens verzeichneten unrealisierte Verluste von 44,7 Millionen US-Dollar aufgrund des Zinsumfelds. Die Gesamteinlagen sanken auf 1,17 Milliarden US-Dollar und die Vorschüsse der Federal Home Loan Bank stiegen auf 115,7 Millionen US-Dollar. Das Eigenkapital des Unternehmens stieg auf 63,8 Millionen US-Dollar, mit einem Buchwert pro Aktie von 14,12 US-Dollar. Der Vorstand erklärte eine Bardividende von 0,36 US-Dollar pro Aktie für das Quartal.
Positive
Consolidated net income decreased by 18.8% to $2.4 million for the first quarter of 2024.
Total assets increased by 4.1% to $1.42 billion, driven by loan growth.
Investment securities faced unrealized losses of $44.7 million due to the interest rate environment.
Total deposits decreased to $1.17 billion, and Federal Home Loan Bank advances increased to $115.7 million.
Equity capital rose to $63.8 million, with a book value per share of $14.12.
The Board of Directors declared a cash dividend of $0.36 per share for the quarter.
Negative
None.
Insights
Union Bankshares' report indicates a contraction in net income by 18.8% this quarter in comparison to last year's same period, which should alert investors about the bank's current profitability challenges. This decline primarily stems from a decrease in net interest income and an increase in noninterest expenses. On the bright side, interest income has climbed due to a larger asset base and higher interest rates on new loans, demonstrating adaptability in a changing rate environment. However, reliance on high-cost wholesale funding, evident from the surge in interest expense, may raise concerns about sustainability of profit margins. The increase in noninterest income, with gains from residential loan sales, offers some respite but doesn't fully mitigate the impact of rising expenses. From a liquidity standpoint, the increase in total assets and loans held for sale is a positive indicator. Yet, the growth in Federal Home Loan Bank advances signals heavier reliance on external funding, which could affect financial stability if not managed prudently.
The sizeable unrealized losses in the investment portfolio, due to the interest rate environment, are concerning yet somewhat buffered by tax deferrals. Accumulated other comprehensive loss has risen slightly, diminishing the equity capital on paper. It's important for investors to realize that while these are non-cash adjustments, they reflect market conditions that can affect the company's net worth and investor perceptions. The tax expense reduction, likely tied to lower pre-tax income, does provide some tax efficiency, but it's also a reflection of reduced profitability. The overall picture suggests a need to keep a close eye on not just the income statement but also the balance sheet for potential impacts of continued interest rate volatility.
The announcement of the regular quarterly dividend at $0.36 per share, despite the earnings dip, may signal Union Bankshares' confidence in its financial health and commitment to shareholder returns. This move could help stabilize investor sentiment but raises questions regarding the long-term sustainability of such payouts against the backdrop of declining net income. With an increase in book value per share, investors might regard this as a sign of intrinsic value growth, though this must be weighted against the overarching challenges the bank faces. Prudent investors should monitor the bank's future performance closely, especially in terms of cost control and asset quality maintenance, which could dictate the stock's trajectory.
MORRISVILLE, Vt., April 17, 2024 (GLOBE NEWSWIRE) -- Union Bankshares, Inc. (NASDAQ - UNB) today announced results for the three months ended March 31, 2024 and declared a regular quarterly cash dividend. Consolidated net income for the three months ended March 31, 2024 was $2.4 million, or $0.53 per share, compared to $3.0 million, or $0.66 cents per share, for the same period in 2023, a decrease of $560 thousand, or 18.8%.
Balance Sheet
Total assets were $1.42 billion as of March 31, 2024 compared to $1.36 billion as of March 31, 2023, an increase of $55.5 million, or 4.1%. Loan growth was the primary driver of asset growth during the first quarter with total loans of $1.04 billion as of March 31, 2024 including $3.4 million in loans held for sale, compared to $976.6 million as of March 31, 2023, with $2.8 million in loans held for sale. Asset quality remains strong with minimal past due loans and no charge-offs for the three months ended March 31, 2024.
Investment securities were $259.3 million at March 31, 2024 compared to $276.8 million at March 31, 2023. The Company classifies its investment portfolio as available-for-sale and is required to report balances at their fair market value. As a result of the fair market value adjustment, unrealized losses in the investment portfolio were $44.7 million as of March 31, 2024. The unrealized losses in the portfolio are due to the interest rate environment as current rates remain above the coupon rates on these securities resulting in fair market values less than current book values. The offset to recording the unrealized losses is an increase in deferred taxes included in other assets and accumulated other comprehensive losses included in total equity as discussed below.
Total deposits were $1.17 billion as of March 31, 2024 and include $100.0 million of purchased brokered deposits compared to deposits of $1.23 billion as of March 31, 2023 with $108.0 million of purchased deposits. Federal Home Loan Bank advances of $115.7 million were outstanding as of March 31, 2024 compared to $45.1 million outstanding as of March 31, 2023. In addition to borrowings from the Federal Home Loan Bank, $35.0 million in advances from the Federal Reserve's Bank Term Funding Program were outstanding as of March 31, 2024.
The Company had total equity capital of $63.8 million and a book value per share of $14.12 as of March 31, 2024 compared to $60.6 million and a book value of $13.44 per share as of March 31, 2023. Total equity capital is reduced by accumulated other comprehensive loss as it relates to the fair market value adjustment for investment securities. Accumulated other comprehensive loss as of March 31, 2024 was $34.9 million compared to $33.5 million as of March 31, 2023.
Income Statement
Consolidated net income was $2.41 million for the first quarter of 2024 compared to $2.98 million for the first quarter of 2023, a decrease of $560 thousand, or 18.8%. The decrease in net income was comprised of a decrease in net interest income of $967 thousand and an increase in noninterest expenses of $492 thousand, partially offset by an increase in noninterest income of $301 thousand, and decreases of $304 thousand in credit loss expense and $294 thousand in income tax expense.
Net interest income was $9.0 million for the three months ended March 31, 2024 compared to $10.0 million for the three months ended March 31, 2023, a decrease of $967 thousand, or 9.7%. Interest income was $15.6 million for the three months ended March 31, 2024 compared to $13.0 million for the same period in 2023, an increase of $2.6 million, or 19.8%, due to the larger earning asset base and higher interest rates on new loan volume. Interest expense increased $3.5 million to $6.6 million for the three months ended March 31, 2024 compared to $3.1 million for the same period in 2023, due to utilization of higher cost wholesale funding, such as brokered deposits, and customers seeking higher returns on their savings.
Noninterest income was $2.6 million for the three months ended March 31, 2024 compared to $2.3 million for the three months ended March 31, 2023, an increase of $301 thousand, or 13.2%. Sales of qualifying residential loans to the secondary market for 2024 were $9.7 million resulting in net gains of $287 thousand, compared to sales of $11.8 million and net gains on sales of $194 thousand for the same period in 2023. Noninterest expenses increased $492 thousand, or 5.6%, during the comparison periods due to increases of $51 thousand in salaries and wages, $112 thousand in employee benefits, $65 thousand in equipment expenses, and $273 thousand in other expenses. Income tax expense decreased $294 thousand during the comparison periods.
Dividend Declared
The Board of Directors declared a cash dividend of $0.36 per share for the quarter payable May 2, 2024 to shareholders of record as of April 27, 2024.
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 19 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 an "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
FAQ
What was Union Bankshares' consolidated net income for the first quarter of 2024?
Union Bankshares reported a consolidated net income of $2.4 million for the first quarter of 2024.
What was the percentage change in net income compared to the same period in 2023?
The net income decreased by 18.8% compared to the same period in 2023.
What was the total assets value as of March 31, 2024?
Total assets were $1.42 billion as of March 31, 2024.
How did the company's total assets change compared to March 31, 2023?
Total assets increased by 4.1% compared to March 31, 2023.
What caused the increase in total assets?
The primary driver of asset growth was loan growth.
What were the unrealized losses in the investment securities portfolio as of March 31, 2024?
The unrealized losses in the investment portfolio were $44.7 million as of March 31, 2024.
How much was the cash dividend declared per share for the quarter?
The Board of Directors declared a cash dividend of $0.36 per share for the quarter.
