Union Bankshares Announces Earnings for the year ended December 31, 2021 and Declares 6.1% Increase in Quarterly Dividend

About this update from Union Bankshares, Inc.

[{"type":"text","content":"MORRISVILLE, Vt., Jan. 19, 2022 (GLOBE NEWSWIRE) -- Union Bankshares, Inc. (NASDAQ - UNB) today announced results for the three months and year ended December 31, 2021. Net income was $3.4 million and $13.2 million for the three months and year ended December 31, 2021, resulting in earnings per share of $0.76 and $2.94 for the same periods, respectively. The Board of Directors also declared a cash dividend of $0.35 per share for the quarter, an increase of 6.1% from the cash dividend of $0.33 paid in recent prior quarters, payable February 3, 2022 to shareholders of record as of January 29, 2022. Fourth Quarter Highlights Consolidated net income decreased $416 thousand, or 11.0%, to $3.4 million for the fourth quarter of 2021 compared to the fourth quarter of 2020 due to increases in net interest income of $1.1 million, a reduction in the provision for loan losses of $825 thousand, and a reduction of $197 thousand in income tax expense. These items were offset by a reduction in noninterest income of $2.0 million and an increase in noninterest expenses of $561 thousand. The downward pressure put on asset yields in 2021 was offset by increases in the investment and loan portfolios for the comparison quarters. The increases in volumes along with a $354 thousand increase in PPP fee income contributed to interest income of $10.0 million for the fourth quarter of 2021 compared to $9.3 million for the same quarter in 2020, an increase of $718 thousand, or 7.7%. The current interest rate environment allowed rates on customer deposit accounts to remain low which contributed to a $392 thousand, or 33.4%, reduction in interest expense despite an increase in average balances in customer accounts. These changes resulted in net interest income of $9.2 million, an increase of $1.1 million, or 13.6%, quarter over quarter. A credit of $225 thousand was recorded for the provision for loan losses for the fourth quarter of 2021, which represents the reversal of the provision recorded during the first half of 2021. The continued improvement in the economy and positive trends in loans that were previously in forbearance allowed for the reversal of the provision during the fourth quarter. Noninterest income was $3.0 million for the three months ended December 31, 2021 compared to $5.0 million for the same period in 2020. The decrease of $2.0 million i...

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