Union Bankshares Reports an Increase of 19.2% in Third Quarter 2019 Earnings Per Share and Declares Quarterly Dividend

About this update from Union Bankshares, Inc.

[{"type":"text","content":"MORRISVILLE, Vt., Oct. 16, 2019 (GLOBE NEWSWIRE) -- Union Bankshares, Inc. (NASDAQ - UNB) today announced results for the three and nine months ended September 30, 2019. Net income for the three months ended September 30, 2019 was $2.7 million, an increase of 18.5% over the third quarter of 2018, and earnings per share was $0.62, and increase of 19.2% over the same period in 2018. The Company's return on average assets was 1.34% and return on average equity was 15.79% for the third quarter of 2019.\n The Board of Directors also declared a cash dividend of $0.31 per share payable November 7, 2019 to shareholders of record as of October 28, 2019. Third Quarter Highlights Net income of $2.7 million was recorded for the three months ended September 30, 2019, and increase of $427 thousand, or 18.5%, compared to the three months ended September 30, 2018. Net interest income increased $625 thousand, or 8.9%, from third quarter 2018, with an increase of $1.0 million in interest income, partially offset by a $411 thousand increase in interest expense. The Company's interest income for the three months ended September 30, 2018 was reduced by a one-time adjustment of $310 thousand. The Company's net interest margin was 4.05% for the third quarter, a decrease of only 2 basis points from the second quarter of 2019 and an increase of 18 basis points from the third quarter of 2018. Noninterest income was $2.7 million for the three months ended September 30, 2019 compared to $2.5 million for the same period in 2018 due to an increase in the gain on sale of residential mortgages of $228 thousand due to higher premiums earned and an increase in volume of sales. Noninterest expenses of $7.0 million increased 7.3% for the third quarter of 2019 over the third quarter of 2018. Salaries and wages increased 11.9%, occupancy and equipment costs increased 21.6%, and other noninterest expenses increased 3.6%. These increases were partially offset by a reduction in employee benefit costs of 8.8%, due to the Company no longer incurring expenses related to the defined benefit pension plan that was terminated in the fourth quarter of 2018. The Company's effective tax rate for the third quarter of 2019 was 14.8% compared to 17.0% for the same period in 2018 due to an increase in tax credits from investments made in low income housing projects. The Company has ...

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