Union Bank 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,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||
(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 |
||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20200123005491/en/
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
