UBNC - Union Bank Releases Third Quarter Earnings Announces Cash Dividend of $0.10 Per Share

Union Bank (OTCQX: UBNC) reports earnings results for the quarter and nine months ended September 30, 2019 and announces cash dividend of $0.10 per share.

Union Bank (the “Bank”) is pleased to report earnings results for the quarter and nine months ended September 30, 2019. Unaudited net income for the nine months ended September 30, 2019 was $5,313,000 or $0.89 per basic common share, compared to $5,000,000, or $0.83 per basic common share for the same period in the prior year. This represents a 6.3% increase in earnings for the comparable nine-month periods. Return on average assets and return on average equity was 0.92% and 8.69%, respectively, for the nine months ended September 30, 2019. Return on average tangible common equity was 10.61% for the nine months ended September 30, 2019.

Unaudited net income for the third quarter of 2019 increased 9.4%, to $1,904,000, or $0.32 per basic common share, compared to $1,739,000, or $0.29 per basic common share for the quarter ended September 30, 2018. Return on average assets and return on average equity was 0.97% and 8.95%, respectively, for the quarter. Return on average tangible common equity was 11.04% for the quarter ended September 30, 2019.

Total assets as of September 30, 2019 were $787.6 million, compared to total assets of $745.2 million as of December 31, 2018, and $730.5 million as of September 30, 2018. Total loans, net of reserves, were $550.5 million and deposits were $656.9 million, as of September 30, 2019 compared to net loan balances of $491.7 million and deposits of $611.6 million as of September 30, 2018, and net loan balances of $504.6 million and deposits of $627.2 million as of December 31, 2018. This represents annualized loan and deposit growth of 12.2% and 6.3%, respectively, for the nine-month period ended September 30, 2019. Asset quality remains excellent, as total non-performing assets were 0.08% of total assets as of September 30, 2019. Capital levels remain strong, total risk-based capital was 13.73%, common equity tier 1 to risk-weighted assets was 11.84%, and the Bank’s tier 1 leverage ratio was 8.99% at quarter-end. As of September 30, 2019, shares of common stock issued an outstanding totaled 5,973,124.

Rob Jones, President and Chief Executive Officer stated, “We are pleased to report a record quarter of earnings as well as solid results for the first nine months of 2019.” Jones noted, “Earnings, adjusted for Day 2 acquisition accounting, increased approximately 11.91% for the nine-month period ended September 30^th, compared to the same period last year.” Jones continued, “As I stated last quarter, solid loan growth helped offset margin compression associated with increased interest expense and falling yields across the yield curve. We expect that the industry will continue to struggle with margin compression until interest rates return to a more traditional curve.”

Union Bank also announced today that its Board of Directors, on September 19, 2019, approved a semi-annual cash dividend of $0.10 per share on the Bank’s common stock. The cash dividend is payable on December 31, 2019 to shareholders of record at the close of business on December 13, 2019. In addition, Union Bank maintains an active stock repurchase program. The Bank will continue to buy shares of its common stock at prices that are determined to be favorable to shareholders.

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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