Union Bankshares Inc (UNB, Financial) filed Quarterly Report for the period ended 2010-03-31.
Union Bankshares Inc has a market cap of $83 million; its shares were traded at around $18.5999 with a P/E ratio of 16.1 and P/S ratio of 2.8. The dividend yield of Union Bankshares Inc stocks is 5.3%.
The Company continued to face a challenging low interest rate environment as the prime rate has remained unchanged at 3.25% for the last 15 months. Total interest income decreased by $206 thousand, or 3.5%, to $5.6 million in the first quarter of 2010 versus total interest income of $5.8 million in the first quarter of 2009, but that decrease was more than offset by the decrease in interest expense from $1.5 million in 2009 to $1.1 million in 2010, a decrease of $432 thousand, or 29.0%, between periods. The result of the changes in interest income and interest expense was that net interest income for the first quarter of 2010 was $4.6 million, up $226 thousand, or 5.2%, from the first quarter of 2009 of $4.4 million. The increase in net interest income was attributable to the decrease in interest paid on interest bearing liabilities, which mitigated the decrease in interest income. During the first quarter of 2010, the Companys net interest margin increased 11 basis points to 4.65%, from 4.54% for the first quarter of 2009. The Companys net interest spread increased 21 basis points to 4.41% for the first quarter of 2010, compared to 4.20% for the same period last year. Further drops in the prime rate and/or increases in competitors deposit rates could be problematic as individual instruments continue to reprice.
Salaries and wages were higher by $68 thousand, or 4.5%, for the first quarter of 2010 compared to the same period last year. Pension and employee benefits were up $60 thousand, or 8.6%. Occupancy expense, net of rental income, was down $38 thousand, or 13.0%. Equipment expense was down $51 thousand, or 17.1%. Other expenses were up $110 thousand, or 10.3%.
The Companys total assets decreased from $447.5 million at December 31, 2009, to $440.3 million at March 31, 2010, a decrease of $7.2 million, or 1.6%, which is a normal seasonal decline largely associated with the municipal finance cycle. Deposits decreased from $368.8 million at December 31, 2009 to $365.1 million at March 31, 2010, a decrease of $3.7 million, or 1.0%. Borrowed funds decreased from $31.0 million at December 31, 2009 to $27.3 million at March 31, 2010, a decrease of $3.7 million, or 11.9%. Total loans, including loans held for sale, decreased slightly by $499 thousand from $358.1 million at December 31, 2009 to $357.6 million at March 31, 2010. Total loans at March 31, 2010 are net of $8.2 million in residential real estate loans sold during the first three months of 2010.
The ratio of noninterest expense ($4.1 million in 2010 and $4.0 million in 2009) to tax equivalent net interest income ($4.7 million in 2010 and $4.5 million in 2009) and noninterest income ($1.2 million in 2010 and $1.3 million in 2009) excluding securities gains ($0 in 2010 and $21 thousand in 2009).
Net Interest Income. The largest component of the Companys operating income is net interest income, which is the difference between interest and dividend income received from interest earning assets and the interest expense paid on interest bearing liabilities. The Companys net interest income increased $226 thousand, or 5.2%, to $4.59 million for the three months ended March 31, 2010, from $4.36 million for the three months ended March 31, 2009. The net interest spread increased 21 basis points to 4.41% for the three months ended March 31, 2010, from 4.20% for the three months ended March 31, 2009. The increase in the net interest spread was primarily the result of the drop in average interest rates paid on interest bearing liabilities from 1.84% for the quarter ended March 31, 2009 to 1.28% for the quarter ended March 31, 2010. The net interest margin for the first quarter of 2010 increased 11 basis points to 4.65% from the 2009 comparison period at 4.54%, reflecting the net effect of an increase in net interest income of $226 thousand and an increase of $9.2 million, or 2.3%, in average earning assets.
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Union Bankshares Inc has a market cap of $83 million; its shares were traded at around $18.5999 with a P/E ratio of 16.1 and P/S ratio of 2.8. The dividend yield of Union Bankshares Inc stocks is 5.3%.
Highlight of Business Operations:
The Companys net income was $1.219 million for the quarter ended March 31, 2010 compared to $1.267 million for the quarter ended March 31, 2009, a decrease of $48 thousand, or 3.8%. These results reflected an increase in net interest income of $226 thousand, or 5.2%, which was more than offset by the combined effect of a decrease of $132 thousand, or 9.8%, in noninterest income and an increase of $149 thousand, or 3.7%, in noninterest expenses.The Company continued to face a challenging low interest rate environment as the prime rate has remained unchanged at 3.25% for the last 15 months. Total interest income decreased by $206 thousand, or 3.5%, to $5.6 million in the first quarter of 2010 versus total interest income of $5.8 million in the first quarter of 2009, but that decrease was more than offset by the decrease in interest expense from $1.5 million in 2009 to $1.1 million in 2010, a decrease of $432 thousand, or 29.0%, between periods. The result of the changes in interest income and interest expense was that net interest income for the first quarter of 2010 was $4.6 million, up $226 thousand, or 5.2%, from the first quarter of 2009 of $4.4 million. The increase in net interest income was attributable to the decrease in interest paid on interest bearing liabilities, which mitigated the decrease in interest income. During the first quarter of 2010, the Companys net interest margin increased 11 basis points to 4.65%, from 4.54% for the first quarter of 2009. The Companys net interest spread increased 21 basis points to 4.41% for the first quarter of 2010, compared to 4.20% for the same period last year. Further drops in the prime rate and/or increases in competitors deposit rates could be problematic as individual instruments continue to reprice.
Salaries and wages were higher by $68 thousand, or 4.5%, for the first quarter of 2010 compared to the same period last year. Pension and employee benefits were up $60 thousand, or 8.6%. Occupancy expense, net of rental income, was down $38 thousand, or 13.0%. Equipment expense was down $51 thousand, or 17.1%. Other expenses were up $110 thousand, or 10.3%.
The Companys total assets decreased from $447.5 million at December 31, 2009, to $440.3 million at March 31, 2010, a decrease of $7.2 million, or 1.6%, which is a normal seasonal decline largely associated with the municipal finance cycle. Deposits decreased from $368.8 million at December 31, 2009 to $365.1 million at March 31, 2010, a decrease of $3.7 million, or 1.0%. Borrowed funds decreased from $31.0 million at December 31, 2009 to $27.3 million at March 31, 2010, a decrease of $3.7 million, or 11.9%. Total loans, including loans held for sale, decreased slightly by $499 thousand from $358.1 million at December 31, 2009 to $357.6 million at March 31, 2010. Total loans at March 31, 2010 are net of $8.2 million in residential real estate loans sold during the first three months of 2010.
The ratio of noninterest expense ($4.1 million in 2010 and $4.0 million in 2009) to tax equivalent net interest income ($4.7 million in 2010 and $4.5 million in 2009) and noninterest income ($1.2 million in 2010 and $1.3 million in 2009) excluding securities gains ($0 in 2010 and $21 thousand in 2009).
Net Interest Income. The largest component of the Companys operating income is net interest income, which is the difference between interest and dividend income received from interest earning assets and the interest expense paid on interest bearing liabilities. The Companys net interest income increased $226 thousand, or 5.2%, to $4.59 million for the three months ended March 31, 2010, from $4.36 million for the three months ended March 31, 2009. The net interest spread increased 21 basis points to 4.41% for the three months ended March 31, 2010, from 4.20% for the three months ended March 31, 2009. The increase in the net interest spread was primarily the result of the drop in average interest rates paid on interest bearing liabilities from 1.84% for the quarter ended March 31, 2009 to 1.28% for the quarter ended March 31, 2010. The net interest margin for the first quarter of 2010 increased 11 basis points to 4.65% from the 2009 comparison period at 4.54%, reflecting the net effect of an increase in net interest income of $226 thousand and an increase of $9.2 million, or 2.3%, in average earning assets.
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