Union Bankshares Announces Earnings for the three months ended March 31, 2021 and Declares Quarterly Dividend

MORRISVILLE, Vt., April 21, 2021 (GLOBE NEWSWIRE) -- Union Bankshares, Inc. (NASDAQ - UNB) today announced results for the three months ended March 31, 2021 and declared a regular quarterly cash dividend. Consolidated net income for the first quarter was $2.9 million, or $0.64 per share compared to $2.2 million, or $0.49 cents per share, for the same period in 2020, an increase of $680 thousand, or 30.9%.

The increase in net income for the comparison period was led by an increase of $893 thousand in net interest income. Interest income was $9.5 million for the three months ended March 31, 2021 compared to $9.0 million for the comparable period in 2020, an increase of $537 thousand, or 6.0%, due to higher volumes of interest earning assets partially offset by lower average yields. Conversely, despite higher customer deposit balances, interest expense decreased $356 thousand, or 24.5%, to $1.1 million for the three months ended March 31, 2021 compared to $1.5 million for the comparable period in 2020 attributable to lower interest rates.

The provision for loan losses was $150 thousand for the three months ended March 31, 2021 compared to $300 thousand for the comparable quarter in 2020. Net recoveries were $8 thousand as of March 31, 2021 compared to net charge-offs of $31 thousand for the comparable period in 2020.

Noninterest income was $2.6 million for the three months ended March 31, 2021 compared to $2.5 million for the three months ended March 31, 2020, an increase of $103 thousand, or 4.1%. Sales of qualifying residential loans to the secondary market for the first quarter of 2021 were $29.7 million resulting in net gains on sales of $894 thousand, compared to sales of $42.4 million and net gains on sales of $812 thousand for the first quarter of 2020. Noninterest expenses increased $281 thousand, or 3.9%, during the comparison periods due to increases of $187 thousand in employee benefits, $58 thousand in equipment expenses, and $111 thousand in other expenses, partially offset by decreases of $38 thousand in salaries and wages, and $37 thousand in occupancy expenses.

Total assets were $1.1 billion as of March 31, 2021 compared to $883.1 million as of March 31, 2020, an increase of $221.2 million, or 25.1%. Asset growth in 2020 was fueled by participation in the Paycheck Protection Program ("PPP") and elevated cash levels due to a surge in customer deposits. Participation in PPP continued in 2021 with $26.7 million in new PPP loan originations through March 31, 2021.