Union Bankshares Announces First Quarter Results

Apr 30, 2001, 01:00 ET from Union Bankshares, Ltd.

    DENVER, April 30 /PRNewswire/ -- Union Bankshares, Ltd. (Nasdaq: UBSC)
 announced first quarter net income of $628,000 or 23 cents per share
 (diluted), for the quarter ended March 31, 2001.  Net income was $670,000, or
 26 cents per share (diluted), for the quarter ended March 31, 2000.
     After tax gains on sales of securities of $8,000 and $0 are included in
 the net income figures for the quarters ended March 31, 2001 and 2000
 respectively.
     Net interest income totaled $4,555,000 in the first quarter of 2001, a
 $242,000 (or six percent) increase over the first quarter of 2000.  The
 Company's net interest margin of 5.43 percent in the first quarter of 2001 was
 eight basis points higher than in the first quarter of 2000.  This change
 resulted from an increase in total interest earning assets, offset by the
 general decline in interest rates.
     Non-interest expense for the first quarter of 2001 was $273,000 (or eight
 percent) higher than in the first quarter of 2000, primarily as a result of
 increased salaries and benefits.
     Total assets increased $18.4 million to $398.9 million, from year-end 2000
 to March 31, 2001.  Return on average assets and average equity were
 .66 percent and 10.18 percent, respectively for the first quarter of 2001.
     Net loans increased $2.4 million, from $213.5 million at December 31, 2000
 to $215.9 million at March 31, 2001.  Total deposits increased during the
 period from $315.3 million at December 31, 2000 to $326.5 million at March 31,
 2001.
     "Company management is pleased with the loan and deposit growth of its
 subsidiary, Union Bank & Trust, and also its earnings in this declining
 interest rate environment," said Charles R. Harrison, Chairman and CEO.
 
     Union Bankshares is a bank holding company whose principal asset is all of
 the common stock of Union Bank & Trust, a state chartered commercial bank
 located in Denver with seven locations in the Denver Metropolitan area.
     Union Bank & Trust has total assets of more than $394 million and
 emphasizes relationship banking for small to medium sized business customers.
 
     "Safe Harbor" statement under the Private Securities Litigation Reform Act
 of 1995.
     Statements which are not historical facts contained in this document are
 forward looking statements that involve risks and uncertainties that could
 cause results to differ from projected results.  Factors that could cause
 actual results to differ materially include, among others:  continued success
 of the Bank's branching strategy, general economic conditions, economic
 conditions in the Denver Metropolitan area, the monetary policy of the Federal
 Reserve Board, changes in interest rates, inflation, competition in the
 banking business, changes in the state and federal regulatory regime
 applicable to the Company's and the Bank's operations, the results of
 financing efforts and other risk factors detailed in the Company 's Forms
 10-KSB, 10-QSB and 8-K filed with the Securities and Exchange Commission.
 
     Information included in this document includes "forward-looking
 statements" which can be identified by the use of forward-looking terminology
 such as "may," "will," "anticipate," "believe," "estimate," or "continue," or
 the negative thereof or other variations thereon or comparable terminology.
 The statements in the risk factors" and other statements and disclaimers in
 the Company's Annual Report on Form 10-KSB constitute cautionary statements
 identifying important factors, including certain risks and uncertainties, with
 respect to such forward-looking statements that could cause actual results to
 differ materially from those reflected in such forward-looking statements.
 
 
      UNION BANKSHARES, LTD. (CONSOLIDATED)
      KEY FINANCIAL INFORMATION
 
                    Q - 1      Q - 2      Q - 3     Q - 4     TOTAL    Q - 1
                    2000       2000        2000      2000      2000     2001
     RETURN ON
      ASSETS - YTD
      ANNUALIZED     0.73%     0.77%      0.75%      0.76%     0.76%    0.66%
     RETURN ON
      EQUITY - YTD
      ANNUALIZED    13.94%    14.53%     13.57%     11.71%    13.79%   10.18%
 
     EQUITY TO
      ASSETS - AVG   5.22%     5.32%      5.49%      6.47%     5.50%    6.44%
 
     NET INTEREST
      MARGIN         5.35%     5.42%      5.31%      5.60%     5.44%    5.43%
 
     EFFICIENCY
      RATIOS
      (ANNUALIZED):
      SALARIES &
       BENEFITS /
       NET OPER INC. 42.3%     39.0%      41.0%      40.3%     40.6%    44.5%
      OCCUPANCY &
       EQUIPMENT /
       NET OPER INC. 10.7%     10.7%      10.4%      13.3%     11.3%    10.4%
      ALL OTHER
       OPER EXP /
       NET OPER INC. 22.3%     21.4%      22.3%      16.8%     20.7%    22.1%
      TOTAL OPER
       EXP / NET
       OPER INC     75.33%    71.05%     73.71%     70.47%    75.35%   77.00%
 
 
     STATEMENT OF INCOME
     (000's omitted)
     INTEREST
      INCOME         7,003     7,473      7,686      7,720    29,882    7,403
     INTEREST
      EXPENSE        2,690     2,989      3,210      3,042    11,931    2,848
      NET INTEREST
       INCOME        4,313     4,484      4,476      4,678    17,951    4,555
 
     PROVISION FOR
      LOAN LOSS         86        50        130        115       381       89
 
     NON INTEREST
      INCOME:
      SERVICE
       CHARGES         188       201        220        217       826      216
      GAIN ON SALE
       OF SECURITIES     0      (359)       (14)        28      (345)      13
      OTHER            177       203        172        167       719      160
       TOTAL NON
       INTEREST
       INCOME          365        45        378        412     1,200      389
 
     NON INTEREST
      EXPENSE:
      SALARIES AND
       BENEFITS      1,977     1,904      1,997      2,041     7,919    2,196
      AMORTIZATION
       OF GOODWILL     135       134        135        135       539      135
      OCCUPANCY AND
       EQUIPMENT       502       522        507        674     2,205      512
      OTHER          1,045     1,047      1,084        852     4,028    1,089
       TOTAL NON
       INTEREST
       EXPENSE       3,659     3,607      3,723      3,702    14,691    3,932
     PRE TAX
      EARNINGS         933       872      1,001      1,273     4,079      923
      INCOME TAX
       EXPENSE         263       106        329        552     1,250      295
     NET INCOME
      - QTR            670       766        672        721     2,829      628
     NET INCOME
      - YTD            670     1,436      2,108      2,829     2,829      628
 
     EARNINGS PER
      SHARE (BASIC)  $0.28     $0.33      $0.27      $0.30              $0.26
     EARNINGS PER
      SHARE Y-T-D
      (BASIC)        $0.28     $0.61      $0.88      $1.18              $0.26
     EARNINGS PER
      SHARE
      (DILUTED)      $0.26     $0.29      $0.26      $0.28              $0.23
     EARNINGS PER
      SHARE Y-T-D
      (DILUTED)      $0.26     $0.55      $0.81      $1.09              $0.23
 
     BOOK VALUE
      PER SHARE
      (DILUTED)      $7.71     $7.75      $8.39      $9.30              $9.53
     TANGIBLE B/V
      PER SHARE
      (DILUTED)      $5.22     $5.30      $5.99      $6.96              $7.31
 
     AVG WEIGHTED
      SHARES O/S -
      YTD
      (DILUTED)  2,607,678 2,595,341  2,595,246  2,597,559          2,683,579
 
 
     AVERAGE BALANCE SHEET YTD
     (000's omitted)
 
     AVERAGE
      LOANS        189,154   195,514    210,879    215,091   204,297  219,653
     AVERAGE
      EARNING
      ASSETS       337,577   340,776    344,975    343,128   342,425  353,224
     AVERAGE
      ASSETS       368,413   371,534    376,850    373,468   373,376  383,192
     AVERAGE
      DEPOSITS     292,857   294,183    305,591    313,041   301,786  322,046
     AVERAGE
      EQUITY        19,226    19,769     20,706     24,160    20,522   24,679
 
 
     PERIOD END BALANCES
     (000's omitted)
                   03/31/00   06/30/00   09/30/00   12/31/00          03/31/01
 
     GOODWILL        6,496     6,361      6,227      6,092              5,958
     NON PERFORMING
      LOANS              3       175         54        335                 89
     OTHER REAL
      ESTATE OWNED       0         0          0          0                  0
      LOANS
      CHARGED OFF      110        13         45         46       214       45
      LOANS RECOVERED   10       212          4          1       227        6
 
 
      UNION BANK & TRUST (BANK ONLY)
      KEY FINANCIAL INFORMATION
 
                    Q - 1      Q - 2      Q - 3     Q - 4     TOTAL    Q - 1
                    2000        2000       2000      2000      2000     2001
     RETURN ON
      ASSETS - YTD
      ANNUALIZED     1.02%     1.15%      1.16%      1.18%     1.18%    1.13%
     RETURN ON
      EQUITY - YTD
      ANNUALIZED    16.54%    18.47%     18.45%     17.32%    18.47%   15.53%
 
     EQUITY TO
      ASSETS - AVG   6.15%     6.23%      6.28%      6.80%     6.38%    7.26%
 
     NET INTEREST
      MARGIN         5.66%     5.42%      5.57%      5.85%     5.68%    5.69%
 
 
     EFFICIENCY RATIOS
      (ANNUALIZED):
      SALARIES &
       BENEFITS /
       NET OPER INC. 36.2%     34.2%      34.9%      35.3%     33.9%    38.7%
      OCCUPANCY &
       EQUIPMENT /
       NET OPER INC.  9.6%      9.7%       9.5%       9.7%      9.3%     9.3%
      ALL OTHER
       OPER EXP /
       NET OPER INC. 18.4%     17.8%      17.8%      15.4%     16.7%    17.8%
      TOTAL OPER
       EXP / NET
       OPER INC     64.28%    61.66%     62.18%     60.33%    59.93%   65.86%
 
 
     STATEMENT OF INCOME
     (000's omitted)
     INTEREST
      INCOME         6,993     7,431      7,613      7,678    29,715    7,363
     INTEREST
      EXPENSE        2,506     2,775      2,972      2,844    11,097    2,643
     NET INTEREST
      INCOME         4,487     4,656      4,641      4,834    18,618    4,720
 
     PROVISION FOR
      LOAN LOSS         86        50        130        115       381       89
 
     NON INTEREST
      INCOME:
      SERVICE CHARGES  188       201        220        217       826      216
      GAIN ON SALE
       OF SECURITIES     0      (359)       (14)        28      (345)      13
      OTHER            177       203        168        170       718      160
      TOTAL NON
       INTEREST
       INCOME          365        45        374        415     1,199      389
 
     NON INTEREST
      EXPENSE:
      SALARIES AND
       BENEFITS      1,757     1,730      1,756      1,841     7,084    1,972
      AMORTIZATION
       OF GOODWILL      78        78         78         78       312       78
      OCCUPANCY AND
       EQUIPMENT       467       490        477        507     1,941      475
      OTHER            895       900        894        802     3,491      909
       TOTAL NON
        INTEREST
        EXPENSE      3,197     3,198      3,205      3,228    12,828    3,434
     PRE TAX
      EARNINGS       1,569     1,453      1,680      1,906     6,608    1,586
      INCOME TAX
       EXPENSE         648       273        547        802     2,270      520
     NET INCOME
      - QTR            921     1,180      1,133      1,104     4,338    1,066
     NET INCOME
      - YTD            921     2,101      3,234      4,338              1,066
 
 
     AVERAGE BALANCE SHEET YTD
     (000's omitted)
 
     AVERAGE
      LOANS        189,154   195,514    210,879    215,091   204,297  219,653
     AVERAGE
      EARNING
      ASSETS       333,866   337,635    342,735    340,883   339,737  350,976
     AVERAGE
      ASSETS       361,807   365,447    371,846    368,512   367,828  378,263
     AVERAGE
      DEPOSITS     292,857   294,183    305,591    313,041   301,791  322,046
     AVERAGE
      EQUITY        22,269    22,752     23,365     25,043    23,484   27,456
 
 
     PERIOD END BALANCES
     (000's omitted)
                   03/31/00   06/30/00  09/30/00   12/31/00           03/31/01
 
     GOODWILL        4,284     4,206      4,128      4,050              3,972
     NON PERFORMING
      LOANS              3       175         54        335                 89
     OTHER REAL
      ESTATE OWNED       0         0          0          0                  0
      LOANS
      CHARGED OFF      110        13         45         46                 45
      LOANS RECOVERED   10       212          4          1                  6
 
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SOURCE Union Bankshares, Ltd.
    DENVER, April 30 /PRNewswire/ -- Union Bankshares, Ltd. (Nasdaq: UBSC)
 announced first quarter net income of $628,000 or 23 cents per share
 (diluted), for the quarter ended March 31, 2001.  Net income was $670,000, or
 26 cents per share (diluted), for the quarter ended March 31, 2000.
     After tax gains on sales of securities of $8,000 and $0 are included in
 the net income figures for the quarters ended March 31, 2001 and 2000
 respectively.
     Net interest income totaled $4,555,000 in the first quarter of 2001, a
 $242,000 (or six percent) increase over the first quarter of 2000.  The
 Company's net interest margin of 5.43 percent in the first quarter of 2001 was
 eight basis points higher than in the first quarter of 2000.  This change
 resulted from an increase in total interest earning assets, offset by the
 general decline in interest rates.
     Non-interest expense for the first quarter of 2001 was $273,000 (or eight
 percent) higher than in the first quarter of 2000, primarily as a result of
 increased salaries and benefits.
     Total assets increased $18.4 million to $398.9 million, from year-end 2000
 to March 31, 2001.  Return on average assets and average equity were
 .66 percent and 10.18 percent, respectively for the first quarter of 2001.
     Net loans increased $2.4 million, from $213.5 million at December 31, 2000
 to $215.9 million at March 31, 2001.  Total deposits increased during the
 period from $315.3 million at December 31, 2000 to $326.5 million at March 31,
 2001.
     "Company management is pleased with the loan and deposit growth of its
 subsidiary, Union Bank & Trust, and also its earnings in this declining
 interest rate environment," said Charles R. Harrison, Chairman and CEO.
 
     Union Bankshares is a bank holding company whose principal asset is all of
 the common stock of Union Bank & Trust, a state chartered commercial bank
 located in Denver with seven locations in the Denver Metropolitan area.
     Union Bank & Trust has total assets of more than $394 million and
 emphasizes relationship banking for small to medium sized business customers.
 
     "Safe Harbor" statement under the Private Securities Litigation Reform Act
 of 1995.
     Statements which are not historical facts contained in this document are
 forward looking statements that involve risks and uncertainties that could
 cause results to differ from projected results.  Factors that could cause
 actual results to differ materially include, among others:  continued success
 of the Bank's branching strategy, general economic conditions, economic
 conditions in the Denver Metropolitan area, the monetary policy of the Federal
 Reserve Board, changes in interest rates, inflation, competition in the
 banking business, changes in the state and federal regulatory regime
 applicable to the Company's and the Bank's operations, the results of
 financing efforts and other risk factors detailed in the Company 's Forms
 10-KSB, 10-QSB and 8-K filed with the Securities and Exchange Commission.
 
     Information included in this document includes "forward-looking
 statements" which can be identified by the use of forward-looking terminology
 such as "may," "will," "anticipate," "believe," "estimate," or "continue," or
 the negative thereof or other variations thereon or comparable terminology.
 The statements in the risk factors" and other statements and disclaimers in
 the Company's Annual Report on Form 10-KSB constitute cautionary statements
 identifying important factors, including certain risks and uncertainties, with
 respect to such forward-looking statements that could cause actual results to
 differ materially from those reflected in such forward-looking statements.
 
 
      UNION BANKSHARES, LTD. (CONSOLIDATED)
      KEY FINANCIAL INFORMATION
 
                    Q - 1      Q - 2      Q - 3     Q - 4     TOTAL    Q - 1
                    2000       2000        2000      2000      2000     2001
     RETURN ON
      ASSETS - YTD
      ANNUALIZED     0.73%     0.77%      0.75%      0.76%     0.76%    0.66%
     RETURN ON
      EQUITY - YTD
      ANNUALIZED    13.94%    14.53%     13.57%     11.71%    13.79%   10.18%
 
     EQUITY TO
      ASSETS - AVG   5.22%     5.32%      5.49%      6.47%     5.50%    6.44%
 
     NET INTEREST
      MARGIN         5.35%     5.42%      5.31%      5.60%     5.44%    5.43%
 
     EFFICIENCY
      RATIOS
      (ANNUALIZED):
      SALARIES &
       BENEFITS /
       NET OPER INC. 42.3%     39.0%      41.0%      40.3%     40.6%    44.5%
      OCCUPANCY &
       EQUIPMENT /
       NET OPER INC. 10.7%     10.7%      10.4%      13.3%     11.3%    10.4%
      ALL OTHER
       OPER EXP /
       NET OPER INC. 22.3%     21.4%      22.3%      16.8%     20.7%    22.1%
      TOTAL OPER
       EXP / NET
       OPER INC     75.33%    71.05%     73.71%     70.47%    75.35%   77.00%
 
 
     STATEMENT OF INCOME
     (000's omitted)
     INTEREST
      INCOME         7,003     7,473      7,686      7,720    29,882    7,403
     INTEREST
      EXPENSE        2,690     2,989      3,210      3,042    11,931    2,848
      NET INTEREST
       INCOME        4,313     4,484      4,476      4,678    17,951    4,555
 
     PROVISION FOR
      LOAN LOSS         86        50        130        115       381       89
 
     NON INTEREST
      INCOME:
      SERVICE
       CHARGES         188       201        220        217       826      216
      GAIN ON SALE
       OF SECURITIES     0      (359)       (14)        28      (345)      13
      OTHER            177       203        172        167       719      160
       TOTAL NON
       INTEREST
       INCOME          365        45        378        412     1,200      389
 
     NON INTEREST
      EXPENSE:
      SALARIES AND
       BENEFITS      1,977     1,904      1,997      2,041     7,919    2,196
      AMORTIZATION
       OF GOODWILL     135       134        135        135       539      135
      OCCUPANCY AND
       EQUIPMENT       502       522        507        674     2,205      512
      OTHER          1,045     1,047      1,084        852     4,028    1,089
       TOTAL NON
       INTEREST
       EXPENSE       3,659     3,607      3,723      3,702    14,691    3,932
     PRE TAX
      EARNINGS         933       872      1,001      1,273     4,079      923
      INCOME TAX
       EXPENSE         263       106        329        552     1,250      295
     NET INCOME
      - QTR            670       766        672        721     2,829      628
     NET INCOME
      - YTD            670     1,436      2,108      2,829     2,829      628
 
     EARNINGS PER
      SHARE (BASIC)  $0.28     $0.33      $0.27      $0.30              $0.26
     EARNINGS PER
      SHARE Y-T-D
      (BASIC)        $0.28     $0.61      $0.88      $1.18              $0.26
     EARNINGS PER
      SHARE
      (DILUTED)      $0.26     $0.29      $0.26      $0.28              $0.23
     EARNINGS PER
      SHARE Y-T-D
      (DILUTED)      $0.26     $0.55      $0.81      $1.09              $0.23
 
     BOOK VALUE
      PER SHARE
      (DILUTED)      $7.71     $7.75      $8.39      $9.30              $9.53
     TANGIBLE B/V
      PER SHARE
      (DILUTED)      $5.22     $5.30      $5.99      $6.96              $7.31
 
     AVG WEIGHTED
      SHARES O/S -
      YTD
      (DILUTED)  2,607,678 2,595,341  2,595,246  2,597,559          2,683,579
 
 
     AVERAGE BALANCE SHEET YTD
     (000's omitted)
 
     AVERAGE
      LOANS        189,154   195,514    210,879    215,091   204,297  219,653
     AVERAGE
      EARNING
      ASSETS       337,577   340,776    344,975    343,128   342,425  353,224
     AVERAGE
      ASSETS       368,413   371,534    376,850    373,468   373,376  383,192
     AVERAGE
      DEPOSITS     292,857   294,183    305,591    313,041   301,786  322,046
     AVERAGE
      EQUITY        19,226    19,769     20,706     24,160    20,522   24,679
 
 
     PERIOD END BALANCES
     (000's omitted)
                   03/31/00   06/30/00   09/30/00   12/31/00          03/31/01
 
     GOODWILL        6,496     6,361      6,227      6,092              5,958
     NON PERFORMING
      LOANS              3       175         54        335                 89
     OTHER REAL
      ESTATE OWNED       0         0          0          0                  0
      LOANS
      CHARGED OFF      110        13         45         46       214       45
      LOANS RECOVERED   10       212          4          1       227        6
 
 
      UNION BANK & TRUST (BANK ONLY)
      KEY FINANCIAL INFORMATION
 
                    Q - 1      Q - 2      Q - 3     Q - 4     TOTAL    Q - 1
                    2000        2000       2000      2000      2000     2001
     RETURN ON
      ASSETS - YTD
      ANNUALIZED     1.02%     1.15%      1.16%      1.18%     1.18%    1.13%
     RETURN ON
      EQUITY - YTD
      ANNUALIZED    16.54%    18.47%     18.45%     17.32%    18.47%   15.53%
 
     EQUITY TO
      ASSETS - AVG   6.15%     6.23%      6.28%      6.80%     6.38%    7.26%
 
     NET INTEREST
      MARGIN         5.66%     5.42%      5.57%      5.85%     5.68%    5.69%
 
 
     EFFICIENCY RATIOS
      (ANNUALIZED):
      SALARIES &
       BENEFITS /
       NET OPER INC. 36.2%     34.2%      34.9%      35.3%     33.9%    38.7%
      OCCUPANCY &
       EQUIPMENT /
       NET OPER INC.  9.6%      9.7%       9.5%       9.7%      9.3%     9.3%
      ALL OTHER
       OPER EXP /
       NET OPER INC. 18.4%     17.8%      17.8%      15.4%     16.7%    17.8%
      TOTAL OPER
       EXP / NET
       OPER INC     64.28%    61.66%     62.18%     60.33%    59.93%   65.86%
 
 
     STATEMENT OF INCOME
     (000's omitted)
     INTEREST
      INCOME         6,993     7,431      7,613      7,678    29,715    7,363
     INTEREST
      EXPENSE        2,506     2,775      2,972      2,844    11,097    2,643
     NET INTEREST
      INCOME         4,487     4,656      4,641      4,834    18,618    4,720
 
     PROVISION FOR
      LOAN LOSS         86        50        130        115       381       89
 
     NON INTEREST
      INCOME:
      SERVICE CHARGES  188       201        220        217       826      216
      GAIN ON SALE
       OF SECURITIES     0      (359)       (14)        28      (345)      13
      OTHER            177       203        168        170       718      160
      TOTAL NON
       INTEREST
       INCOME          365        45        374        415     1,199      389
 
     NON INTEREST
      EXPENSE:
      SALARIES AND
       BENEFITS      1,757     1,730      1,756      1,841     7,084    1,972
      AMORTIZATION
       OF GOODWILL      78        78         78         78       312       78
      OCCUPANCY AND
       EQUIPMENT       467       490        477        507     1,941      475
      OTHER            895       900        894        802     3,491      909
       TOTAL NON
        INTEREST
        EXPENSE      3,197     3,198      3,205      3,228    12,828    3,434
     PRE TAX
      EARNINGS       1,569     1,453      1,680      1,906     6,608    1,586
      INCOME TAX
       EXPENSE         648       273        547        802     2,270      520
     NET INCOME
      - QTR            921     1,180      1,133      1,104     4,338    1,066
     NET INCOME
      - YTD            921     2,101      3,234      4,338              1,066
 
 
     AVERAGE BALANCE SHEET YTD
     (000's omitted)
 
     AVERAGE
      LOANS        189,154   195,514    210,879    215,091   204,297  219,653
     AVERAGE
      EARNING
      ASSETS       333,866   337,635    342,735    340,883   339,737  350,976
     AVERAGE
      ASSETS       361,807   365,447    371,846    368,512   367,828  378,263
     AVERAGE
      DEPOSITS     292,857   294,183    305,591    313,041   301,791  322,046
     AVERAGE
      EQUITY        22,269    22,752     23,365     25,043    23,484   27,456
 
 
     PERIOD END BALANCES
     (000's omitted)
                   03/31/00   06/30/00  09/30/00   12/31/00           03/31/01
 
     GOODWILL        4,284     4,206      4,128      4,050              3,972
     NON PERFORMING
      LOANS              3       175         54        335                 89
     OTHER REAL
      ESTATE OWNED       0         0          0          0                  0
      LOANS
      CHARGED OFF      110        13         45         46                 45
      LOANS RECOVERED   10       212          4          1                  6
 
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 SOURCE  Union Bankshares, Ltd.