Union Bankshares Announces Earnings for the three months ended March 31, 2024 and Declares Quarterly Dividend - Seite 2

The Company had total equity capital of $63.8 million and a book value per share of $14.12 as of March 31, 2024 compared to $60.6 million and a book value of $13.44 per share as of March 31, 2023. Total equity capital is reduced by accumulated other comprehensive loss as it relates to the fair market value adjustment for investment securities. Accumulated other comprehensive loss as of March 31, 2024 was $34.9 million compared to $33.5 million as of March 31, 2023.

Income Statement

Consolidated net income was $2.41 million for the first quarter of 2024 compared to $2.98 million for the first quarter of 2023, a decrease of $560 thousand, or 18.8%. The decrease in net income was comprised of a decrease in net interest income of $967 thousand and an increase in noninterest expenses of $492 thousand, partially offset by an increase in noninterest income of $301 thousand, and decreases of $304 thousand in credit loss expense and $294 thousand in income tax expense.

Net interest income was $9.0 million for the three months ended March 31, 2024 compared to $10.0 million for the three months ended March 31, 2023, a decrease of $967 thousand, or 9.7%. Interest income was $15.6 million for the three months ended March 31, 2024 compared to $13.0 million for the same period in 2023, an increase of $2.6 million, or 19.8%, due to the larger earning asset base and higher interest rates on new loan volume. Interest expense increased $3.5 million to $6.6 million for the three months ended March 31, 2024 compared to $3.1 million for the same period in 2023, due to utilization of higher cost wholesale funding, such as brokered deposits, and customers seeking higher returns on their savings.

Noninterest income was $2.6 million for the three months ended March 31, 2024 compared to $2.3 million for the three months ended March 31, 2023, an increase of $301 thousand, or 13.2%. Sales of qualifying residential loans to the secondary market for 2024 were $9.7 million resulting in net gains of $287 thousand, compared to sales of $11.8 million and net gains on sales of $194 thousand for the same period in 2023. Noninterest expenses increased $492 thousand, or 5.6%, during the comparison periods due to increases of $51 thousand in salaries and wages, $112 thousand in employee benefits, $65 thousand in equipment expenses, and $273 thousand in other expenses. Income tax expense decreased $294 thousand during the comparison periods.