Union Bank Releases Earnings for the Quarter and Year Ended December 31, 2019

GREENVILLE, N.C.--()--Union Bank (OTCQX: UBNC) (the “Bank”) is pleased to report its results for the three and twelve months ended December 31, 2019.

Net income for the fourth quarter of 2019 was $1.8 million or $0.31 per basic common share and compared favorably to the $1.7 million or $0.29 per basic common share earned for the same period in 2018. The Bank’s return on average assets and average tangible equity for the fourth quarter of 2019 was 0.91% and 10.50%, respectively.

Earnings for the full year of 2019 were $7.2 million, or $1.20 per basic common share versus $6.7 million, or $1.12 per basic common share earned for the year ended December 31, 2018. The Bank’s return on average assets and average tangible equity for the full year 2019 was 0.92% and 10.58%, respectively.

The Bank’s earnings benefited from strong loan demand coupled with solid increases in deposits, including noninterest bearing deposits. The Bank ended 2019 with total assets of $821.3 million, an increase of $76.1 million or 10.2% over total footings as of December 31, 2018. Over this same twelve month time period gross loans grew $66.3 million or 12.9%. During the fourth quarter of 2019 loans increased $20.7 million. While current economic conditions are favorable in our footprint for expansion of our balance sheet to support the activities of our customers, we do not anticipate near term loan growth to maintain at the same levels the Bank experienced in 2019. Total deposits increased $51.0 million or 8.1% during 2019, ending the year at $678.2 million. During this same time period noninterest bearing deposit increase $23.1 million or 12.1% to end 2019 at $214.3 million in total.

While loan growth has been strong, the Bank continues to focus its lending efforts to high quality borrowers. As a result, asset quality remains excellent with total non-performing assets representing only 0.08% of total assets as of December 31, 2019. Capital levels remain strong, total risk-based capital was 13.48%, common equity tier 1 to risk-weighted assets was 11.66%, and the Bank’s tier 1 leverage ratio was 8.91% at quarter-end. As of December 31, 2019, the number of shares of common stock issued and outstanding totaled 5,950,533.

Rob Jones, President and Chief Executive Officer stated, “We are very excited to be able to report these results for 2019. Despite the challenging interest rate environment, during 2019 the Bank was able to increase its earning per share by 7.14% as well as growing book value per common share 10.16% to $14.36 as of December 31, 2019 from $13.04 per share at year end 2018. Our staff has done a tremendous job of not only generating quality loan growth but building full customer relationships and growing our core deposit base. We anticipate that margin compression associated with the current interest rate environment will continue to be a challenge facing the banking industry. We will continue to manage our franchise to maintain credit quality and build value for our customers and shareholders.”

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
Balance Sheets
($000's omitted)
       
 

As of the Period Ended

 

December 31,

 

 

September 30,

 

 

December 31,

 

2019

 

 

2019

 

 

2018

ASSETS  

(un-audited)

 

 

(un-audited)

 

 

*

       
Cash and due from banks  

$

9,359

 

$

13,159

 

$

9,355

Interest-bearing deposits with banks  

16,867

 

17,693

 

25,753

Investment securities available-for-sale  

164,040

 

148,395

 

148,575

       
Loans - gross  

580,024

 

559,302

 

513,675

Net fair value marks  

(3,285)

 

(3,883)

 

(5,047)

Allowance for loan losses  

(4,988)

 

(4,951)

 

(4,046)

Net Loans  

571,751

 

550,468

 

504,582

       
Bank premises and equipment, net  

18,819

 

19,109

 

16,793

Bank-owned life insurance  

16,897

 

16,783

 

16,450

Other real estate owned  

-

 

108

 

327

Goodwill  

12,897

 

12,897

 

12,897

Core deposit intangible  

1,243

 

1,405

 

1,951

Other assets  

9,448

 

7,606

 

8,503

       
Total Assets  

$

821,321

 

$

787,623

 

$

745,186

       
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
       
Liabilities      
Deposits  

$

678,190

 

$

656,923

 

$

627,171

Advances from the Federal Home Loan Bank  

47,000

 

35,000

 

32,000

Subordinated debentures  

6,000

 

6,000

 

6,000

Accrued expenses and other liabilities  

4,686

 

5,356

 

1,821

       
Total Liabilities  

735,876

 

703,279

 

666,992

       
Stockholders' Equity      
Common stock, no par value  

70,928

 

71,175

 

71,879

Retained earnings  

13,623

 

11,767

 

7,629

Accumulated other comprehensive income / (loss)  

894

 

1,402

 

(1,314)

       
Total Stockholders' Equity  

85,445

 

84,344

 

78,194

       
Total Liabilities and Stockholders' Equity  

$

821,321

 

$

787,623

 

$

745,186

 
Union Bank
Statements of Operations
($000's omitted except per share data)
     
 

For the Three Months Ended

 

 

For the Twelve Months Ended

 

December 31,
2019

 

 

December 31,
2018

 

 

December 31,
2019

 

 

December 31,
2018

 

(un-audited)

 

 

(un-audited)

 

 

(un-audited)

 

 

*

         
Interest Income  

$

8,724

 

$

8,163

 

$

34,119

 

$

31,041

         
Interest Expense  

1,767

 

1,488

 

6,962

 

4,842

         
Net Interest Income  

6,957

 

6,675

 

27,157

 

26,199

         
Provision for Loan Losses  

188

 

242

 

941

 

779

         
Net Interest Income after Provision for Loan Losses    

6,769

 

6,433

 

26,216

 

25,420

         
Noninterest Income  

922

 

728

 

3,316

 

2,900

         
Noninterest Expense  

5,399

 

5,016

 

20,596

 

19,862

         
Income Before Income Taxes  

2,292

 

2,145

 

8,936

 

8,458

         
Income Taxes  

446

 

408

 

1,777

 

1,721

         
Net Income  

$

1,846

 

$

1,737

 

$

7,159

 

$

6,737

         
Net Income Available Per Basic Common Share  

$

0.31

 

$

0.29

 

$

1.20

 

$

1.12

         

*   Derived from audited financial statements

       

 

Contacts

Scott C. McLean
Chief Financial Officer
(252) 917-5735

Contacts

Scott C. McLean
Chief Financial Officer
(252) 917-5735