Union Bank Releases First Quarter Earnings and Announces Cash Dividend of $0.09 Per Share
Greenville, NC – (Business Wire) – April 27, 2018 – Union Bank (OTCQX: UBNC) reports earnings results for the quarter ended March 31, 2018 and announces cash dividend of $0.09 per share.
Union Bank (the “Bank”) is pleased to report earnings results for the quarter ended March 31, 2018. Unaudited net income for the three months ended March 31, 2018 was $1,501,000 or $.26 per basic share, compared to $674,000 or $.20 per basic share for the prior year. Core earnings, a non-GAAP measure, which excludes merger and conversion related expenses were approximately $1,505,000 for the quarter ended March 31, 2018, compared to core earnings of $782,000 for the same period in the prior year. This represents a 92.5% increase in core earnings.
The acquisition of Union Bank & Trust, and its holding company, Union Banc Corp., during the third quarter of 2017, resulted in significant increases in the Bank’s total assets, loans and deposits. Total assets as of March 31, 2018 were $706.3 million, compared to total assets of $702.5 million as of December 31, 2017. Total loans, net of reserves, were $501.7 million and deposits were $600.1 million as of March 31, 2018, compared to net loan balances of $505.0 million, and deposits of $593.7 million, as of December 31, 2017. Shares of common stock issued and outstanding totaled 5,816,138 as of March 31, 2018. First quarter financial activity included measurement period adjustments to recognize additional credit marks related to purchased credit impaired (PCI) loans acquired in the transaction with Union Bank & Trust. Recognition of these additional credit marks and related accounting adjustments resulted in the addition of $2.5 million in goodwill. PCI loans totaled $9.4 million and had total credit marks of $4.1 million (43.5%). Management does not anticipate any additional changes to the Day 1 acquisition accounting going forward.
Union Bank also announced today that its Board of Directors, on April 19, 2018, approved a semi-annual cash dividend of $0.09 per share on the Bank’s common stock. The dividend is payable on June 29, 2018 to shareholders of record at the close of business on June 15, 2018.
Rob Jones, President and Chief Executive Officer stated, “We are pleased to announce a cash dividend and present this positive earnings report for the first quarter of 2018.” Jones further stated “As we have emerged from the completion of our merger that took place in the second half of 2017, I am pleased to report that total deposits, demand deposit accounts and non-interest income are all growing after a period of flatness just after the merger and conversion. For example, demand deposit accounts grew by over 100 accounts in March alone. Total non-brokered deposits have increased $10.2 million since January and total non-maturity deposits have grown $14.2 million since January. Loan levels have been flat as we have struggled to find loan demand outside of the commercial real estate space. Management will be turning its attention to overall loan growth and expense control in the coming quarters while maintaining an appropriate discipline around loan quality.”
Union Bank is headquartered in Greenville, North Carolina and operates 15 branches located in 11 counties throughout Eastern and Central North Carolina. Union Bank stock is traded on the OTCQX trading 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 Company 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 Company’s management uses these non-GAAP financial measures in their analysis of the Company’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 Company’s core businesses.
Union Bank Summary of Operations (un-audited)
(000’s omitted except per share data)
March 31, 2018
March 31, 2017
|Net Interest Income||6,439||2,964|
|Provision for loan losses||225||0|
|Net interest income after Provision for losses||6,214||2,964|
|Income before taxes||1,899||976|
|Net Income available per basic common share||$0.26||$0.20|
Union Bank Balance Sheets (000’s omitted)
|March 31, 2018
|December 31, 2017*||March 31, 2017
|Cash and due from banks||$18,300||$21,427||$7,408|
|Investment securities AFS||112,172||113,242||87,607|
|Loans – gross||512,671||514,078||253,169|
|Net Fair Value Marks||(7,266)||(5,536)||0|
|Less Allowance for loan losses||(3,729)||(3,501)||(3,449)|
|Premises and Equipment, net||17,058||17,034||4,460|
|Other Real Estate Owned||627||627||50|
|Core Deposit Intangibles||2,586||2,817||0|
|Bank-Owned Life Insurance||16,113||16,004||9,090|
|Liabilities & Stockholders’ Equity|
|Common stock, no par value||69,080||69,027||31,538|
|Accumulated other comprehensive income loss||(1,906)||(501)||(385)|
|Total stockholders’ equity||$73,441||$73,169||$37,371|
|Total liabilities and stockholders’ equity||$706,263||$702,528||$371,693|
*Derived from audited financial statements