Union Bankshares (UNB) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $1.3M, down 47.7% year-over-year, mainly due to a $1.3M loss on sale of AFS securities and higher noninterest expenses.

• Net income for the nine months ended September 30, 2024 was $5.8M, a 29.8% decrease from $8.2M in the prior year period.

• Total assets reached $1.52B, with loans of $1.13B, deposits of $1.17B, and stockholders' equity of $72.3M at quarter-end.

• Book value per share increased to $15.98 from $14.56 at year-end 2023 and $10.92 a year ago.

• The company completed a balance sheet repositioning, selling $38.5M of lower-yielding AFS securities and reinvesting in higher-yield assets.

Financial highlights

• Net interest income for Q3 2024 was $9.4M, up 3.1% year-over-year; for the nine months, it was $27.9M, down $819K.

• Net interest margin was 2.71% for Q3 2024 (down 5 bps year-over-year) and 2.73% for the nine months (down 22 bps year-over-year).

• Noninterest income for Q3 2024 was $1.6M, down 34.9% year-over-year, mainly due to the $1.3M loss on securities sales.

• Noninterest expenses rose 5.4% in Q3 2024 to $9.4M, driven by higher salaries, benefits, and occupancy costs.

• Efficiency ratio increased to 83.42% in Q3 2024 from 75.37% a year ago.

Outlook and guidance

• Management expects the loss on the sale of AFS securities to be recouped within one year.

• The company remains focused on deposit gathering, net interest margin optimization, and maintaining strong asset quality amid ongoing yield curve inversion and funding cost pressures.