Union Bankshares Announces Earnings for the three and nine months ended September 30, 2020 and Declares Quarterly Dividend
MORRISVILLE, Vt., Oct. 21, 2020 (GLOBE NEWSWIRE) -- Union Bankshares, Inc. (NASDAQ - UNB) today announced results for the three and nine months ended September 30, 2020 and declared a regular
quarterly cash dividend. Consolidated net income for the three months ended September 30, 2020 was $4.1 million, or $0.92 per share, compared to $2.7 million, or $0.62 per share, for the same
period in 2019 and $9.0 million, or $2.01 per share, for the nine months ended September 30, 2020, compared to $7.9 million, or $1.77 per share, for the same period in 2019.
President and CEO David Silverman commented on the third quarter results, "Over the past weeks and months we have had to adapt to new ways of operating and serving our customers and communities due to the pandemic. Our operations have run smoothly and we have served our customers and communities admirably. We are pleased with our financial performance thus far in 2020 and I could not be more proud of the way our teammates have stepped up and handled their respective tasks with grace."
Third Quarter Highlights
Consolidated net income increased $1.4 million, or 51.5%, to $4.1 million for the third quarter of 2020 compared to the third quarter of 2019 due to increases in net interest income of $538 thousand and noninterest income of $2.8 million, partially offset by increases in the provision for loan losses of $650 thousand and noninterest expenses of $990 thousand.
The provision for loan losses has been increased substantially compared to prior years as management continues to evaluate and plan for the impact of the economic disruptions caused by COVID-19 on its customers.
Sales of qualifying residential loans to the secondary market for the third quarter of 2020 were $89.8 million resulting in gain on sales of $3.3 million, compared to sales of $44.7 million and gain on sales of $824 thousand for the third quarter of 2019.
Consolidated net income was $9.0 million, or $2.01 per share, compared to $7.9 million, or $1.77 per share, for the nine months ended September 30, 2020 and 2019, respectively. The increase in earnings from the 2019 comparison period was due to increases of $950 thousand in net interest income, $3.6 million in noninterest income partially offset by increases of $1.3 million in the provision for loan losses, $1.9 million in noninterest expenses, and $220 thousand in income tax expense.