UBNC - Union Bank Releases First Quarter Earnings and Announces Cash Dividend of $0.0975 Per Share

Union Bank (OTCQX: UBNC) reports earnings results for the quarter ended March 31, 2019 and announces cash dividend of $0.0975 per share.

Union Bank (the “Bank”) is pleased to report earnings results for the quarter ended March 31, 2019. Unaudited net income for the three months ended March 31, 2019 was $1,639,000 or $0.27 per basic common share, compared to $1,501,000, or $0.25 per basic common share for the same period in the prior year. This represents a 9.2% increase in earnings for the comparable three-month periods. Return on average assets and return on average equity was 0.87% and 8.38%, respectively, for the three months ended March 31, 2019. Return on average tangible common equity was 10.20% for the first quarter.

Total assets as of March 31, 2019 were $770.6 million, compared to total assets of $745.2 million as of December 31, 2018, and $706.3 million as of March 31, 2018. Total loans, net of reserves, were $514.4 million and deposits were $638.7 million, as of March 31, 2019 compared to net loan balances of $501.7 million and deposits of $600.1 million as of March 31, 2018. Asset quality remains excellent, total non-performing assets were 0.13% of total assets as of March 31, 2019. Capital levels remain strong, total risk-based capital was 14.04%, common equity tier 1 to risk-weighted assets was 12.16%, and the Bank’s tier 1 leverage ratio was 8.89% at quarter-end. As of March 31, 2019, shares of common stock issued an outstanding totaled 5,980,610.

Rob Jones, President and Chief Executive Officer stated, “We are pleased to report strong earnings for the first quarter of 2019. We are also pleased that loan and deposit levels continue to increase at a steady pace. Gross loans and deposits have grown at an annualized rate of 7.5% and 7.4%, respectively, since December 31, 2018. Our loan quality metrics remain outstanding. As previously stated, the Bank intends to maintain lending discipline as we work towards a natural contraction of the economic cycle.”

Union Bank also announced today that its Board of Directors, on April 18, 2019, approved a semi-annual cash dividend of $0.0975 per share on the Bank’s common stock. The cash dividend is payable on June 28, 2019 to shareholders of record at the close of business on June 14, 2019.

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 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.

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