Vermont Business Magazine Union Bankshares, Inc (NASDAQ – UNB) announced its results for the quarter and fiscal year ended December 31, 2020. Net income was $ 3.8 million and $ 12.8 million for the quarter and l ‘year ended December 31, 2020, resulting in earnings per share of $ 0.85 and $ 2.86 for the same periods, respectively.
The board of directors also declared a cash dividend of $ 0.33 per share for the quarter, an increase of 3.1% over the cash dividend of $ 0.32 paid in previous quarters, payable on February 5, 2021 to shareholders of record on February 1, 2021.
President and CEO David Silverman commented on the year-end results: “Looking back to 2020, we thank our employees who have persevered through tough times, managed unprecedented volumes of work and worked hard. are adapted to new ways of interacting and collaborating with each other and our customers. We are satisfied with our financial performance for 2020. The efficient operation of the key businesses that are critical to our success has provided another solid year of earnings and growth for our shareholders.
Fourth Quarter Highlights
Consolidated net income increased $ 1.0 million, or 37.5%, to $ 3.8 million for the fourth quarter of 2020 from the fourth quarter of 2019 due to the increase net interest income of $ 383,000 and non-interest income of $ 2.0 million, partially offset by increases in the allowance for loan losses of $ 175,000, non-interest expense of $ $ 764,000 and income taxes of $ 369,000.
Sales of qualifying residential loans in the secondary market for the fourth quarter of 2020 were $ 75.5 million, resulting in a gain on sales of $ 2.8 million, compared to sales of $ 56.6 million and a sales gain of $ 987 thousand for the fourth quarter of 2019.
Highlights since the start of the year
Consolidated net income was $ 12.8 million, or $ 2.86 per share, compared to $ 10.6 million, or $ 2.38 per share, for the years ended December 31, 2020 and 2019, respectively. Increase in earnings from 2019 is explained by increases of $ 1.3 million in net interest income and $ 5.5 million in non-interest income, partially offset by increases $ 1.4 million in provision for loan losses, $ 2.7 million in non-interest charges and $ 589,000 in income taxes. costs.
An allowance for loan losses of $ 2.2 million was recorded for the year ended December 31, 2020, compared to $ 775,000 for the year ended December 31, 2019. The increase in the allowance is supported by the size and composition of the loan portfolio; and evaluations of the qualitative factors used to estimate the allowance for loan losses.
Total non-interest income was $ 16.0 million and $ 10.5 million for the years ended December 31, 2020 and December 31, 2019, respectively, an increase of 5.5 million dollars, or 53.1%. The increase is mainly due to an increase in the gain on the sale of residential loans. Sales of qualifying residential loans were $ 263.1 million for the year ended December 31, 2020, compared to $ 158.0 million for the same period in 2019.
Total non-interest expense was $ 30.2 million for the fiscal year as at December 31, 2020, compared to $ 27.5 million for the same period in 2019. Increases of $ 1.4 million salaries and wages, $ 370,000 in benefits, $ 579,000 in capital expenditures and $ 363,000 in other expenses occurred during the comparison periods. Salaries and wages increased over the comparison periods due to the discretionary hiring of high-value staff to enable continued franchise growth, higher residential loan volume resulting in higher commissions and an increase in discretionary one-time payments to employees.
Total assets increased to $ 1.1 billion as of December 31, 2020, from $ 872.9 million as of December 31, 2019, a growth of $ 221.1 million, or 25.3%. Balance sheet growth was driven by the origination of PPP loans and high levels of liquidity and investments caused by an increase in customer deposits. On-balance sheet cash amounted to $ 117.4 million as at December 31, 2020, compared to $ 45.7 million as at December 31, 2019. The investment portfolio, including interest-bearing deposits with banks, increased by 24 , $ 9 million, or 26.3%, to reach $ 119.5 million in December. As of December 31, 2020, compared to $ 94.6 million as of December 31, 2019. Outstanding loan balances amounted to $ 803.2 million as of December 31, 2020, compared to $ 678.7 million as of December 31, 2019, an increase of $ 124.5 million, or 18.3%. The growth of all types of loans occurred in 2020 and was accelerated by the launch of $ 69.8 million in the Paycheck Protection Program, of which $ 66.2 million is still ongoing as of December 31, 2020. Total deposits increased to $ 994.3 million as of December 31, 2020, from $ 744.0 million. as at December 31, 2019, an increase of $ 250.3 million, or 33.6%. The growth in deposits has been driven by federal stimulus measures for businesses and consumers and a shift in consumer spending habits in response to the COVID-19 pandemic.
The Company had total share capital of $ 80.9 million with a book value per share of $ 18.05 as at December 31, 2020, compared to $ 71.8 million and $ 16.06 per share as at December 31, 2019.
Union Bankshares, Inc., headquartered in Morrisville, Vermont, is the parent company of Union Bank, which provides commercial, retail and municipal banking services, as well as asset management services in the northern Vermont and New Hampshire. Union Bank operates 20 bank offices, two lending centers and several ATMs across its geographic footprint.
Since 1891, Union Bank has helped people realize their dreams of owning a home, saving for retirement, starting or expanding a business, and helping municipalities improve their communities. Union Bank has earned an exceptional reputation for its residential loan programs and has been recognized by the United States Department of Agriculture and Rural Development for the positive impact on the lives of weak to moderate home buyers.
Union Bank is still a major originator of Vermont Housing Finance Agency mortgages and has also been named the SBA’s preferred lender for its involvement in small business loans. Union Bank employees contribute to the communities where they work and reside, serving on nonprofit boards of directors, raising funds for worthy causes and giving countless hours of service to our fellow citizens. All of these efforts resulted in Union receiving an “Outstanding” rating for Community Reinvestment Act (“CRA”) compliance in its most recent review.
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 protecting deposits, providing customers with convenient financial choices and making loans to help people in our local communities buy. houses, develop businesses and create jobs. These values, combined with financial expertise, quality products and the latest technology, make Union Bank the first choice for your banking services, both personal and professional. FDIC member. Equal housing lender.
Source: MORRISVILLE, Vermont, January 20, 2021 (GLOBE NEWSWIRE) – Union Bankshares, Inc http://www.unionbankvt.com