Union Bankshares reports FY 2017 financial results

Vermont Business Magazine Union Bankshares, Inc (NASDAQ:UNB), based in Morrisville, today announced results for the three and twelve months ended December 31, 2017. Consolidated net income for the three months ended December 31, 2017 was $1.9 million, or $0.43 per share, compared to $2.3 million, or $0.53 per share, for the same period in 2016, and $8.4 million, or $1.89 per share, for the year ended December 31, 2017, compared to $8.5 million, or $1.91 per share, for the same period in 2016.

The decrease in earnings for three and twelve month comparison periods is due to a one-time charge to earnings of $447 thousand for the revaluation of the Company's deferred tax assets as a result of the Tax Cuts and Jobs Act being signed into law on December 22, 2017.

Fourth Quarter Highlights

Highlights of the three months ended December 31, 2017 compared to the three months ended December 31, 2016 include:

  • Net income before taxes increased $399 thousand, or 14.3% to $3.2 million.
  • Net interest income increased $709 thousand, or 11.2% to $7.1 million.
  • Total assets increased $54.4 million, or 7.9%, to $745.7 million.
  • Loans increased $53.6 million, or 9.9%, to $595.4 million. 
  • The loan servicing portfolio increased $47.4 million, or 10.7% to $489.1 million.
  • Deposits increased $49.9 million, or 8.4%, to $647.6 million.

The improvement in net income before tax quarter over quarter is attributable to the increase in net interest income as noted above partially offset by a decrease in noninterest income of $230 thousand and increases in the provision for loan losses of $50 thousand and in noninterest expenses of $30 thousand.  The increase in income tax expense of $822 thousand quarter over quarter is two-fold.  As mentioned above a $447 thousand adjustment to income tax expense was recorded for revaluing deferred tax assets for the new tax law.  Also, income tax expense for the three months ended December 31, 2016 was reduced by $288 thousand for a rehabilitation tax credit related to a low income housing investment project.

Year-to-Date Highlights

Highlights of the year ended December 31, 2017 compared to year ended December 31, 2016 include:

  • Net income before taxes increased $943 thousand, or 8.5%, to $12.1 million.
  • Net interest income increased $2.0 million, or 8.0% to $26.8 million.
  • Return on average common equity of 14.53% and return on average assets of 1.21%.
  • Book value per common share increased 4.4% to $13.17 as of December 31, 2017.
  • Total shareholders’ equity increased 4.5% to $58.8 million compared to December 31, 2016.
  • Net loan charge-offs were $39 thousand for the year ended December 31, 2017.
  • Nonperforming loans were 0.28% of total loans.

For the year ended December 31, 2017, noninterest income was $9.4 million, a decrease of $744 thousand from the same period a year ago. The decrease is attributable to decreases of $651 thousand in gains on the sale of real estate loans, $81 thousand in income from life insurance, $61 thousand in service charge income on deposit accounts, $49 in mortgage servicing right income, and $47 thousand in gains on the sale of securities.  These decreases were partially offset by increases in overdraft fee income of $56 thousand and loan servicing income of $92 thousand.

Total noninterest expenses increased $249 thousand, or 1.1%, to $23.9 million for the year ended December 31, 2017 compared to $23.7 million for the same period in 2016.  Increases of $55 thousand in salaries and wages, $183 thousand in pension and employee benefits, $152 thousand in occupancy expenses, and $94 thousand in equipment expenses were partially offset by a decrease of $234 thousand in other expenses.

On January 17, 2018, the Board of Directors declared a regular quarterly cash dividend of $0.30 per share payable February 8, 2018 to shareholders of record as of January 27, 2018.

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, asset management services throughout northern Vermont and New Hampshire.  Union Bank operates 17 banking offices, three loan centers, and multiple ATMs throughout its geographical footprint.

Source: MORRISVILLE, Vt., Jan. 17, 2018 (GLOBE NEWSWIRE) -- Union Bankshares, Inc