Union Bank (OTCQX: UBNC) (the “Bank”) is pleased to report its results for the quarter ended March 31, 2020.
Net income for the first quarter of 2020 was $1.7 million or $0.29 per basic common share and compared favorably to the $1.6 million or $0.27 per basic common share earned for the same period in 2019. The Bank’s return on average assets and average tangible equity for the first quarter of 2020 was 0.84% and 9.53%, respectively. Revenues continue to be positively impacted by solid growth in both our loan portfolio as well as our noninterest bearing checking balances.
Total assets as of March 31, 2020 were $866.5 million, an increase of $45.2 million or 5.5%, compared to $821.3 million at December 31, 2019. Over this same three-month time period gross loans grew $21.1 million or 3.6%. Total deposits at March 31, 2020 were $675.2 million compared to $678.2 million at December 31, 2019. During this same time period noninterest bearing deposits increased $5.1 million or 2.4% to $219.4 million.
The Bank’s loan growth has remained strong as we continued to focus our lending efforts on high quality borrowers. As a result, asset quality remains excellent with total non-performing assets representing only 0.06% of total assets as of March 31, 2020. We anticipate that as a result of the impacts Covid-19 pandemic, some of our customers will face economic challenges. As we work with our borrowers, we anticipate that our asset quality metrics could be negatively impacted in future periods. However, our capital levels remain strong, total risk-based capital was 13.00%, common equity tier 1 to risk-weighted assets was 11.23%, and the Bank’s tier 1 leverage ratio was 8.81% at quarter-end. As of March 31, 2020, the number of shares of common stock issued and outstanding totaled 5,933,960.
Rob Jones, President and Chief Executive Officer stated, “We are very pleased to report our first quarter results and continue to focus on our customers and running our Bank each and every day as we have done for over 20 years. Our success has been anchored in our ability to service our customers. This has allowed us to build a solid foundation from which to grow our organization. This solid foundation allows us to continue to serve our customers in times of economic challenges. Union Bank remains a strong and secure financial institution. In response to the Covid-19 virus, our dedicated associates (“Financial First Responders”) continue to work every day to provide the banking services our customers need. We are a proud participant in the Payroll Protection Loan Program (PPP). Union Bank has provided nearly $40.0 million of PPP funding to our local communities. We are proud of our role and are thankful we can continue to service our customers.”
Mr. Jones continued by noting, “it may take several weeks and possibly months to properly forecast the impact of Covid-19 on the banking industry and our Bank. We are confident of our position to weather this crisis and look forward to a more positive operating environment.”
Union Bank is headquartered in Greenville, North Carolina and operates 15 branches located in 12 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 | |||||||||||
March 31, | December 31, | March 31, | |||||||||
2020 | 2019 | 2019 | |||||||||
| ASSETS | (un-audited) | * | (un-audited) | ||||||||
| Cash and due from banks | $ | 10,997 | $ | 9,359 | $ | 9,236 | |||||
| Interest-bearing deposits with banks | 18,996 | 16,867 | 40,706 | ||||||||
| Investment securities available-for-sale | 181,094 | 164,040 | 147,209 | ||||||||
| Loans - gross | 601,143 | 580,024 | 523,257 | ||||||||
| Net fair value marks | (2,397) | (3,285) | (4,619) | ||||||||
| Allowance for loan losses | (5,321) | (4,988) | (4,251) | ||||||||
| Net Loans | 593,425 | 571,751 | 514,387 | ||||||||
| Bank premises and equipment, net | 18,636 | 18,819 | 19,422 | ||||||||
| Bank-owned life insurance | 17,009 | 16,897 | 16,559 | ||||||||
| Other real estate owned | - | - | 108 | ||||||||
| Goodwill | 12,897 | 12,897 | 12,897 | ||||||||
| Core deposit intangible | 1,091 | 1,243 | 1,759 | ||||||||
| Other assets | 12,384 | 9,448 | 8,309 | ||||||||
| Total Assets | $ | 866,529 | $ | 821,321 | $ | 770,592 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Liabilities | |||||||||||
| Deposits | $ | 675,216 | $ | 678,190 | $ | 638,703 | |||||
| Advances from the Federal Home Loan Bank | 85,225 | 47,000 | 41,000 | ||||||||
| Subordinated debentures | 6,000 | 6,000 | 6,000 | ||||||||
| Other borrowings | 10,000 | - | - | ||||||||
| Accrued expenses and other liabilities | 4,615 | 4,686 | 4,179 | ||||||||
| Total Liabilities | 781,056 | 735,876 | 689,882 | ||||||||
| Stockholders' Equity | |||||||||||
| Common stock, no par value | 70,713 | 70,928 | 71,668 | ||||||||
| Retained earnings | 15,356 | 13,623 | 9,268 | ||||||||
| Accumulated other comprehensive income / (loss) | (596) | 894 | (226) | ||||||||
| Total Stockholders' Equity | 85,473 | 85,445 | 80,710 | ||||||||
| Total Liabilities and Stockholders' Equity | $ | 866,529 | $ | 821,321 | $ | 770,592 | |||||
| * | Derived from audited financial statements | ||||||||||
| Union Bank | ||||||
| Statements of Operations | ||||||
| ($000's omitted except per share data) | ||||||
For the Three Months Ended | ||||||
March 31, 2020 | March 31, 2019 | |||||
(un-audited) | (un-audited) | |||||
| Interest Income | $ | 8,730 | $ | 8,259 | ||
| Interest Expense | 1,719 | 1,655 | ||||
| Net Interest Income | 7,011 | 6,604 | ||||
| Provision for Loan Losses | 355 | 212 | ||||
| Net Interest Income after Provision for Loan Losses | 6,656 | 6,392 | ||||
| Noninterest Income | 806 | 704 | ||||
| Noninterest Expense | 5,319 | 5,049 | ||||
| Income Before Income Taxes | 2,143 | 2,047 | ||||
| Income Taxes | 410 | 408 | ||||
| Net Income | $ | 1,733 | $ | 1,639 | ||
| Net Income Available Per Basic Common Share | $ | 0.29 | $ | 0.27 | ||
View source version on businesswire.com: https://www.businesswire.com/news/home/20200428005554/en/
Contacts:
Chief Financial Officer
(252) 917-5735
