Union Bank Releases Second Quarter Earnings Today

GREENVILLE, N.C.--()--Union Bank (OTCQX: UBNC) reports earnings results for the quarter and six months ended June 30, 2019.

Union Bank (the “Bank”) is pleased to report earnings results for the quarter and six months ended June 30, 2019. Unaudited net income for the six months ended June 30, 2019 was $3,410,000 or $0.57 per basic common share, compared to $3,261,000, or $0.54 per basic common share for the same period in the prior year. This represents a 4.6% increase in earnings for the comparable six-month periods. Return on average assets and return on average equity was 0.90% and 8.55%, respectively, for the six months ended June 30, 2019. Return on average tangible common equity was 10.38% for the six months ended June 30, 2019.

Unaudited net income for the second quarter of 2019 was $1,771,000, or $0.30 per basic common share, compared to $1,760,000, or $0.29 per basic common share for the quarter ended June 30, 2018. Return on average assets and return on average equity was 0.92% and 8.72%, respectively, for the quarter. Return on average tangible common equity was 10.62% for the quarter ended June 30, 2019.

Total assets as of June 30, 2019 were $777.2 million, compared to total assets of $745.2 million as of December 31, 2018, and $716.7 million as of June 30, 2018. Total loans, net of reserves, were $531.7 million and deposits were $643.5 million, as of June 30, 2019 compared to net loan balances of $503.2 million and deposits of $599.7 million as of June 30, 2018, and net loan balances of $504.6 million and deposits of $627.2 million as of December 31, 2018. This represents annualized loan and deposit growth of 10.8% and 5.2%, respectively, for the six month period ended June 30, 2019. Asset quality remains excellent, as total non-performing assets were 0.09% of total assets as of June 30, 2019. Capital levels remain strong, total risk-based capital was 13.99%, common equity tier 1 to risk-weighted assets was 12.07%, and the Bank’s tier 1 leverage ratio was 8.85% at quarter-end. As of June 30, 2019, shares of common stock issued an outstanding totaled 5,986,664.

Rob Jones, President and Chief Executive Officer stated, “We are pleased to report a record quarter of earnings as well as solid results for the first six months of 2019.” Jones noted, “Earnings, adjusted for Day 2 acquisition accounting, increased approximately 13.4% for the six month period ended June 30th, compared to the same period last year.” Jones continued, “Solid loan growth offset margin compression associated with increased interest expense and falling yields across the yield curve. We expect that the industry will continue to struggle with margin compression until interest rates return to a more traditional curve.”

Union Bank is headquartered in Greenville, North Carolina and operates 15 branches located in 11 counties throughout Eastern and Central North Carolina. Union Bank stock is traded on the OTCQX under the symbol UBNC.

This press release includes certain forward-looking statements in reliance on the “safe-harbor” provisions of The Private Securities Litigation Reform Act of 1995. Any such forward-looking statements are subject to a number of risks and uncertainties. Actual results may differ materially from those anticipated in any such forward-looking statements. The Bank undertakes no obligation to update or revise any such forward-looking statements. This press release contains financial information determined by methods other than in accordance with GAAP. The Bank’s management uses these non-GAAP financial measures in their analysis of the Bank's performance. These measures typically adjust GAAP performance measures to exclude the effects of transactions that are infrequent in nature. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Bank’s core businesses.

Union Bank
Statements of Operations
($000's omitted except per share data)
 
 
 
For the Three Months Ended For the Six Months Ended
June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018
(un-audited) (un-audited) (un-audited) (un-audited)
 
Interest Income

$

8,491

$

7,785

$

16,750

$

15,141

 
Interest Expense

1,760

1,114

3,415

2,031

 
Net Interest Income

6,731

6,671

13,335

13,110

 
Provision for Loan Losses

260

305

472

530

 
Net Interest Income after Provision for Loan Losses

6,471

6,366

12,863

12,580

 
Noninterest Income

966

911

1,768

1,700

 
Noninterest Expense

5,221

5,042

10,368

10,146

 
Income Before Income Taxes

2,216

2,235

4,263

4,134

 
Income Taxes

445

475

853

873

 
Net Income

$

1,771

$

1,760

$

3,410

$

3,261

 
Net Income Available Per Basic Common Share

$

0.30

$

0.29

$

0.57

$

0.54

Union Bank
Balance Sheets
($000's omitted)
 
As of the Period Ended

June 30,

 

 

December 31,

 

 

June 30,

2019

 

 

2018

 

 

2018

ASSETS (un-audited) * (un-audited)
 
Cash and due from banks

$

9,523

$

9,355

$

12,110

Interest-bearing deposits with banks

23,254

25,753

31,898

Investment securities available-for-sale

154,418

148,575

111,907

 
Loans - gross

540,823

513,675

513,901

Net fair value marks

(4,395)

(5,047)

(6,778)

Allowance for loan losses

(4,685)

(4,046)

(3,939)

Net Loans

531,743

504,582

503,184

 
Bank premises and equipment, net

19,254

16,793

17,145

Other real estate owned

108

327

478

Goodwill

12,897

12,897

13,466

Core deposit intangible

1,577

1,951

2,364

Bank-owned life insurance

16,670

16,450

16,224

Other assets

7,712

8,503

7,942

 
Total Assets

$

777,156

$

745,186

$

716,718

 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Liabilities
Deposits

$

643,527

$

627,171

$

599,658

Advances from the Federal Home Loan Bank

40,000

32,000

35,000

Subordinated debentures

6,000

6,000

6,000

Accrued expenses and other liabilities

4,539

1,821

1,632

 
Total Liabilities

694,066

666,992

642,290

 
Stockholders' Equity
Common stock, no par value

71,291

71,879

69,142

Retained earnings

10,461

7,629

7,506

Accumulated other comprehensive income / (loss)

1,338

(1,314)

(2,220)

 
Total Stockholders' Equity

83,090

78,194

74,428

 
Total Liabilities and Stockholders' Equity

$

777,156

$

745,186

$

716,718

 
 
* Derived from audited financial statements

 

Contacts

Doyle M. Thigpen
Chief Financial Officer
(252) 317-2804

Contacts

Doyle M. Thigpen
Chief Financial Officer
(252) 317-2804