Union Bankshares Reports Record Earnings for the year ended December 31, 2019 and Declares Increase in Quarterly Dividend

MORRISVILLE, Vt., Jan. 15, 2020 (GLOBE NEWSWIRE) -- Union Bankshares, Inc. (NASDAQ - UNB) today announced results for the three and twelve months ended December 31, 2019.  Net income was $2.8 million and $10.6 million for the three and twelve months ended December 31, 2019, resulting in earnings per share of $0.61 and $2.38 for the same periods, respectively.

The Board of Directors also declared a cash dividend of $0.32 per share for the quarter, and increase of 3.2% from the cash dividend of $0.31 paid in recent prior quarters, payable February 6, 2020 to shareholders of record as of January 27, 2020.

The Company reported a consolidated net loss for the three months ended December 31, 2018 of $(436) thousand, or $(0.10) per share, and consolidated net income for the twelve months then ended of $7.1 million, or $1.58 per share.   Results for the three and twelve months ended December 31, 2018 included a reduction in net earnings due to one-time charges related to the termination of the Company's defined benefit pension plan.  The one-time reduction in earnings was $3.7 million for the year ended December 31, 2018, of which, $3.2 million was recorded in the fourth quarter of 2018.

Fourth Quarter Highlights

Net income of $2.8 million was recorded for the three months ended December 31, 2019, compared to a loss of $436 thousand for the three months ended December 31, 2018.  Net interest income increased $352 thousand, or 4.7%, from fourth quarter 2018, with an increase of $723 thousand in interest income, partially offset by a $371 thousand increase in interest expense.

A provision for loan losses of $425 thousand was recorded for the three months ended December 31, 2019 compared to $150 thousand for the three months ended December 31, 2018.  The increase in the provision for loan losses was primarily due to growth in the loan portfolio during the fourth quarter of 2019.

Noninterest income was $3.0 million for the three months ended December 31, 2019 compared to $2.4 million for the same period in 2018 resulting from an increase in the gain on sale of commercial and residential loans of $490 thousand due to higher premiums earned and an increased volume of sales. Noninterest expenses of $7.1 million decreased 30.6% for the fourth quarter of 2019 from the fourth quarter of 2018 due to the non-recurrence of expenses related to the termination of the Company's defined benefit pension plan.  Salaries and wages increased 11.2%, occupancy and equipment costs increased 31.1%, and other noninterest expenses increased 9.0%.  These increases occurred primarily due to the addition of two full service branch locations in Chittenden County, VT during the third quarter of 2019.