Executive Vice President / Chief Financial Officer
UNION BANKSHARES REPORTS THIRD QUARTER RESULTS
Richmond, Va., October 17, 2018 - Union Bankshares Corporation (the “Company” or “Union”) (Nasdaq: UBSH) today reported net income of $38.2 million and earnings per share of $0.58 for its third quarter ended September 30, 2018. Net operating earnings(1) were $39.3 million and operating earnings per share(1) was $0.60 for its third quarter ended September 30, 2018; these operating results exclude $1.1 million in after-tax merger-related costs but include losses from discontinued operations of $565,000.
Net income was $102.2 million and earnings per share was $1.55 for the nine months ended September 30, 2018. Net operating earnings(1) were $132.1 million and operating earnings per share(1) was $2.01 for the nine months ended September 30, 2018; these operating results exclude $29.9 million in after-tax merger-related costs but include losses from discontinued operations of $3.0 million.
“Union made further progress on our stated priorities during the third quarter and we remain on track to deliver our top tier financial performance metrics in the fourth quarter of 2018,” said John C. Asbury, President and CEO of Union Bankshares Corporation. “Loan growth increased in each month of the quarter as we are beginning to see the impact of our commercial and industrial banking efforts on the commercial loan portfolio. Our commercial and industrial banking buildout is largely complete and our team is starting to gain traction in the market. This bodes well for the fourth quarter and more importantly, for 2019 and beyond.
“After the quarter closed, we announced our agreement to acquire Access National Corporation, which is nearly a perfect fit with our previously stated M&A strategic and financial objectives. We’re pleased with the enthusiasm about Access becoming a part of Union which substantially completes our Virginia franchise and irrefutably positions Union as Virginia’s bank. While it has been less than two weeks from the announcement, we have already stood up our integration team and work has begun to ensure a smooth transition. Having just completed the Xenith integration, this is a process we know well. We will share more about the implications of this powerful addition to our targeted financial metrics and business strategy at our investor day scheduled in New York on November 14.”
On October 5, 2018, the Company announced it has entered into a definitive merger agreement to acquire Access National Corporation (“Access”) in an all-stock transaction (the “Pending Merger”) that is expected to close in the first quarter of 2019.
Select highlights for the third quarter of 2018
Performance metrics - Changes in all metrics below were primarily related to the net gain on the sale of the Shore Premier Finance division in the second quarter of 2018.
Return on Average Assets (“ROA”) was 1.17% compared to 1.44% in the second quarter of 2018. Operating ROA(1) was 1.21% compared to 1.63% in the second quarter of 2018.
Return on Average Equity (“ROE”) was 8.06% compared to 10.28% in the second quarter of 2018. Operating ROE(1) was 8.30% compared to 11.69% in the second quarter of 2018.
Return on Average Tangible Common Equity (“ROTCE”)(1) was 13.73% compared to 17.74% in the second quarter of 2018. Operating ROTCE(1) was 14.14% compared to 20.19% in the second quarter of 2018.
Efficiency ratio increased to 60.7% compared to 57.2% in the second quarter of 2018 and the efficiency ratio (fully taxable equivalent (“FTE”))(1) increased to 59.7% compared to 56.5% in the second quarter of
The following information was filed by Union Bankshares Corp (UBSH) on Wednesday, October 17, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
View differences made from one quarter to another to evaluate Union Bankshares Corp's financial trajectory
Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were removed, and by Union Bankshares Corp.
Ticker: UBSH CIK: 883948 Form Type:10-Q Quarterly Report Accession Number: 0000883948-18-000240 Submitted to the SEC: Tue Nov 06 2018 9:45:31 AM EST Accepted by the SEC: Tue Nov 06 2018 Period: Sunday, September 30, 2018 Industry: State Commercial Banks