Union Bank UBNC reports earnings results for the quarter and six months ended June 30, 2018.
Union Bank (the "Bank") is pleased to report earnings results for the quarter and six months ended June 30, 2018. Unaudited net income for the six months ended June 30, 2018 was $3,261,000 or $.56 per basic share, compared to $1,520,000, or $.44 per basic share in the prior year. This represents a 115% increase in earnings for the comparable six-month periods. Return on average assets ("ROAA") and return on average equity ("ROAE") was .92% and 8.87% for the six months ended June 30, 2018.
Unaudited net income for the second quarter of 2018 was $1,760,000, or $.30 per basic share, compared to $846,000, or $.24 per basic share for the quarter ended June 30, 2017. Return on average assets and return on average equity was .99% and 9.53%, respectively, for the quarter.
The acquisition of Union Bank & Trust, and its holding company, Union Banc Corp., during the third quarter of 2017, resulted in significant increases in the Bank's total assets, loans and deposits. Total assets as of June 30, 2018 were $716.0 million, compared to total assets of $702.5 million as of December 31, 2017. Total loans, net of reserves, were $503.2 million and deposits were $599.7 million, as of June 30, 2018 compared to net loan balances of $505.0 million, and deposits of $593.7 million as of December 31, 2017. As of June 30, 2018, shares of stock issued and outstanding totaled 5,833,838. The Bank completed the private placement of $6.0 million in fixed-to-floating rate subordinated debt during the second quarter. These notes have a 6% fixed rate coupon for the period beginning May 15, 2018 through May 15, 2023, after which the interest rate will reset quarterly to the Three-Month LIBOR Rate plus 3.50% until the notes mature in 2028. The subordinated debt is considered regulatory capital and will be used to support certain loan growth and general corporate purposes.
Rob Jones, President and Chief Executive Officer stated, "I am pleased to report that since the acquisition of Union Banc Corp. one year ago, earnings have stabilized over the first two quarters of 2018 and are in line with our pre-merger forecast. Except for loans outstanding, all measure of deposits, checking accounts, non-interest income, loan and mortgage fees have grown during the first and second quarters, including six straight months of DDA account growth." Jones continued, "While we know that economic conditions have been very favorable over the past two quarters, loan growth outside of commercial real estate related loan categories has been difficult to achieve for many banks including our own. We continue to focus on asset quality and will maintain lending discipline over growth as we work through rising interest rates, a flattening yield curve and the realities of a lengthening economic cycle."
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 | ||||||||||||
| Summary of Operations (un-audited) | ||||||||||||
| (000's omitted except per share data) | ||||||||||||
|
Three Months |
Three Months |
Six Months |
Six Months |
|||||||||
| Interest Income | $ | 7,785 | $ | 3,481 | $ | 15,141 | $ | 6,758 | ||||
| Interest Expense | 1,114 | 355 | 2,031 | 667 | ||||||||
| Net interest income | 6,671 | 3,126 | 13,110 | 6,091 | ||||||||
| Provision for loan losses | 305 | 0 | 530 | 0 | ||||||||
|
Net interest income after Provision for losses |
6,366 | 3,126 | 12,580 | 6,091 | ||||||||
| Non-interest income | 911 | 553 | 1,700 | 987 | ||||||||
| Non-interest expense | 5,042 | 2,371 | 10,146 | 4,794 | ||||||||
| Income before taxes | 2,235 | 1,308 | 4,134 | 2,284 | ||||||||
| Income taxes | 475 | 462 | 873 | 764 | ||||||||
| Net Income | $ | 1,760 | $ | 846 | $ | 3,261 | $ | 1,520 | ||||
|
Net Income available per basic common share |
$ | 0.30 | $ | 0.24 | $ | 0.56 | $ | 0.44 | ||||
| Union Bank | |||||||||
| Balance Sheets | |||||||||
| (000's omitted) | |||||||||
| June 30, 2018 | December 31, 2017* | June 30, 2017 | |||||||
| (un-audited) | (un-audited) | ||||||||
| Assets | |||||||||
| Cash and due from banks | $ | 23,861 | $ | 21,427 | $ | 9,128 | |||
| Overnight investments | 16,228 | 7,177 | 10,356 | ||||||
| Investments securities AFS | 115,827 | 113,242 | 84,347 | ||||||
| Loans - gross | 513,900 | 514,078 | 262,201 | ||||||
| Net Fair Value Marks | (6,778) | (5,536) | 0 | ||||||
| Less Allowance for loan losses | (3,939) | (3,501) | (3,058) | ||||||
| Net Loans | 503,183 | 505,041 | 259,143 | ||||||
| Premises and Equipment, net | 17,145 | 17,034 | 4,607 | ||||||
| Other Real Estate Owned | 478 | 627 | 0 | ||||||
| Core Deposit Intangibles | 2,364 | 2,817 | 0 | ||||||
| Goodwill | 13,466 | 10,988 | 0 | ||||||
| Bank-Owned Life Insurance | 16,224 | 16,004 | 9,165 | ||||||
| Other Assets | 7,241 | 8,171 | 4,523 | ||||||
| Total Assets | $ | 716,017 | $ | 702,528 | $ | 381,269 | |||
| Liabilities & Stockholders' Equity | |||||||||
| Liabilities | |||||||||
| Deposits | $ | 599,658 | $ | 593,726 | $ | 313,899 | |||
| FHLB Advances | 35,000 | 34,000 | 28,000 | ||||||
| Subordinated Debt | 6,000 | 0 | 0 | ||||||
| Other liabilities | 931 | 1,633 | 992 | ||||||
| Total liabilities | 641,589 | 629,359 | 342,891 | ||||||
| Stockholders' Equity | |||||||||
| Common stock, no par value | 69,142 | 69,027 | 31,578 | ||||||
| Retained earnings | 7,506 | 4,643 | 6,782 | ||||||
|
Accumulated other comprehensive Income/(Loss) |
(2,220) | (501) | 18 | ||||||
| Total stockholders' equity | $ | 74,428 | $ | 73,169 | $ | 38,378 | |||
|
Total liabilities and stockholders' equity |
$ | 716,017 | $ | 702,528 | $ | 381,269 | |||
| *Derived from audited financial statements | |||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20180725005843/en/
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