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D. Anthony Peay - (804) 632-2112
Executive Vice President/ Chief Financial Officer
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Virginia State/Local News lines, NY Times, AP, Reuters, S&P, Moodys, Dow
Jones, Investor Relations Service
January 27, 2010
|Traded: NASDAQ||Symbol: UBSH|
UNION BANKSHARES CORPORATION REPORTS EARNINGS
FOR IMMEDIATE RELEASE (Bowling Green, Virginia) Union Bankshares Corporation (the Company) (NASDAQ: UBSH - News) reports net income of $2.8 million for the quarter ended December 31, 2009, representing an increase of $575 thousand from $2.3 million for the quarter ended December 31, 2008. This increase was principally related to lower costs of funds and increased revenue from the mortgage segment, partially offset by increased credit costs and costs associated with the pending acquisition of First Market Bank. Net income available to common shareholders, which deducts from net income the dividends and discount accretion on preferred stock, was $406 thousand for the current quarter compared to $2.3 million from the same quarter last year. This represents a decrease in earnings per share, on a diluted basis, of $0.15, to $0.02 from $0.17. This reduction was largely attributable to acceleration of the discount accretion associated with the redemption of the Treasurys investment in the Company.
The Company reported net income of $8.4 million for the year ended December 31, 2009, representing a decline of $6.1 million from the prior year. Drivers of the decline included increased credit costs, lower yields on earning assets, increased Federal Deposit Insurance Corporation (FDIC) assessments and costs associated with the pending acquisition of First Market Bank. These were partially offset by favorable cost of funds experience and increased revenue from the mortgage segment.
Net interest income improved $3.9 million over the same quarter a year ago and $1.8 million over the most recent quarter with the net interest margin increasing to 3.97% from 3.52% a year ago and 3.69% in the most recent quarter, due largely to reductions in the cost of funds and lower wholesale borrowings.
Credit costs continued to impact earnings, resulting in provisions of $5.7 million for the quarter and $18.2 million year-to-date. The allowance for loan losses at year end represented 1.63% of total loans.
Fourth quarter mortgage segment net income of $492 thousand increased compared to the most recent quarter and totaled $2.4 million for the year, reflecting increased origination volume during a historically low interest rate environment.
The Company redeemed preferred stock issued to the U. S. Treasury under the Capital Purchase Program and recorded a charge of $2.4 million related to the accelerated discount accretion on the preferred stock, or $0.14, per share.
Costs related to the pending acquisition of First Market Bank amounted to $554 thousand for the quarter and $1.5 million for the year.
The following information was filed by Union Bankshares Corp (UBSH) on Friday, January 29, 2010 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-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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