Business
Union Bankshares Announces Earnings for the three and six months ended June 30, 2021 and Declares Quarterly Dividend
MORRISVILLE, Vt., July 21, 2021 (GLOBE NEWSWIRE) -- Union Bankshares, Inc. (NASDAQ - UNB) today announced results for the three and six months ended June 30,
About this update from Union Bankshares, Inc.
[{"type":"text","content":"MORRISVILLE, Vt., July 21, 2021 (GLOBE NEWSWIRE) -- Union Bankshares, Inc. (NASDAQ - UNB) today announced results for the three and six months ended June 30, 2021 and declared a regular quarterly cash dividend. Consolidated net income for the three months ended June 30, 2021 were $3.0 million, or $0.67 per share, compared to $2.7 million, or $0.60 per share, for the same period in 2020 and $5.9 million, or $1.31 per share, for the six months ended June 30, 2021, compared to $4.9 million, or $1.09 per share, for the same period in 2020. Union continued its participation in the Paycheck Protection Program (\"PPP\") initiated by the Small Business Administration (\"SBA\") and originated $31.8 million in PPP loans in 2021. This was in addition to the $70.3 million in PPP loans originated in 2020, for a total of $102.1 million in origination under the PPP. As of June 30, 2021, $44.8 million in PPP loans have been forgiven by the SBA. Second Quarter Highlights Consolidated net income increased $323 thousand, or 12.1%, to $3.0 million for the second quarter of 2021 compared to the second quarter of 2020 due to increases in net interest income of $1.1 million, noninterest income of $151 thousand, and a reduction of $425 thousand in the provision for loan losses, partially offset by increases in noninterest expenses of $1.3 million and income tax expense of $116 thousand. Net interest income improved to $8.9 million for the three months ended June 30, 2021 compared to $7.8 million for the three months ended June 30, 2020, an increase of $1.1 million, or 14.7%. The low interest rate environment continues to put downward pressure on earning asset yields, however, this is currently offset by the larger earning asset base and recognition of fee income on PPP loans. The low interest rate environment has also resulted in a decrease in interest expense despite the high levels of customer deposit balances. The provision for loan losses was $75 thousand for the three months ended June 30, 2021 compared to $500 thousand for the same period in 2020. The provision for the second quarter of 2020 was impacted by management's adjustment to the economic qualitative factors utilized to estimate the allowance for loan losses due to the economic disruption caused by the pandemic. The allowance for loan losses as of June 30, 2021 is determined to be suffici...