Union First Market Bankshares Reports Second Quarter Results

RICHMOND, Va., July 21, 2011 /PRNewswire/ -- Union First Market Bankshares Corporation (the “Company”) (NASDAQ: UBSH) today reported net income of $6.8 million and earnings per share of $0.24 for its second quarter ended June 30, 2011.  The quarterly results represent an increase of $626,000 in net income or $0.02 in earnings per share from the most recent quarter and a decrease of $1.9 million in net income or $0.08 in earnings per share from the quarter ended June 30, 2010.  Net income available to common shareholders, which deducts dividends and discount accretion on preferred stock from net income, was $6.3 million compared to $8.2 million for the prior year’s second quarter.  

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“Without the benefit of an improvement to the economy, our second quarter results continued the positive trends from the first quarter including net income growth, improved past due loan performance and lower loan charge-offs,” said G. William Beale, chief executive officer of Union First Market Bankshares. “Our efforts to improve our asset quality are taking hold and were able to reduce non-performing assets without materially impacting our profitability.  Looking to the second half of the year, we intend to rollout new technology starting in the third quarter, which will enhance our customers’ ability to bank when, where and how they want.  I am hopeful that our mortgage business will get back on track following the disruption caused by the upcoming implementation of Risk Retention rules and new underwriting standards as a result of Dodd Frank - as well as changes to RESPA and TILA forms proposed by the new Consumer Financial Protection Bureau - all of which could impact mortgage pricing and production. Finally, our branch footprint is a competitive advantage and we intend to use our size and financial strength to separate ourselves from our competitors.”

Select highlights:

• Total nonperforming assets decreased $10.0 million during the second quarter of 2011.  Both nonaccrual loans and other real estate owned (“OREO”) experienced net decreases principally due to lower additions and net pay downs of nonperformers amid a continued effort to reduce OREO.
• The Company showed improvement in return on average assets (ROA) and return on average equity (ROE) from 0.66% and 5.81%, respectively, in the prior quarter to 0.71% and 6.21%, respectively, in the current quarter.
• In May, the Company purchased a NewBridge Bank branch (the “Harrisonburg branch”) located at 440 South Main Street in Harrisonburg, Virginia.  The Company purchased loans of $72.5 million and assumed deposit liabilities of $48.7 million. Nonrecurring costs related to the Harrisonburg branch acquisition were $204,000 for the current quarter and $498,000 year-to-date.
• In June, the Company opened seven additional in-store bank branches in MARTIN'S® Food Markets in Virginia.
• The Company agreed to sell its previously closed Harbour Pointe branch building and accrued a loss of $626,000 on the sale which closed in early July.  
• The Company maintained its core net interest margin (1) at 4.47% in both the second and first quarters of 2011, a function of a continued funding mix shift from higher cost certificates of deposit to lower cost interest bearing deposits.
• Provision for loan losses declined $1.8 million compared to the most recent quarter.  
• Allowance for loan loss as a percentage of total loans decreased from 1.44% at March 31, 2011 to 1.39% at June 30, 2011 with coverage ratios to nonperforming loans and assets increasing to 72.96% and 43.43%, respectively.

Second quarter net income increased $626,000, or 10.1%, from the first quarter of this year and was largely attributable to a reduction in the provision for loan losses and increased net interest income.  These improvements were partially offset by increased costs associated with loan foreclosures, workouts, OREO, and lower income from the mortgage segment.  

Second quarter net income decreased $1.9 million, or 21.8%, compared to the same quarter in the prior year.  The decrease in quarterly net income is largely a result of flat net interest income, declines in mortgage segment income, and increased costs associated with loan foreclosures, workouts, and OREO.  These changes were partially offset by the absence of prior year nonrecurring First Market Bank (“FMB’) acquisition costs and lower marketing and occupancy costs.  

Year-to-date net income for the six months ended June 30, 2011 increased $2.6 million, or 24.8%, from the same period a year ago.  The increase was principally a result of favorable net interest income and the absence of nonrecurring prior year acquisition costs.  These improvements were partially offset by increases in provision for loan losses and lower mortgage segment income.  Comparative results to the prior year exclude FMB results for the month of January 2010.  

(1) The core net interest margin, fully taxable equivalent (“FTE”) excludes the impact of acquisition accounting accretion and amortization adjustments in net interest income.

BANK BRANCH ACQUISITION

On May 20, 2011 the Company completed the purchase of a NewBridge Bank branch in Harrisonburg, Virginia.  As part of the agreement, the Company purchased loans of $72.5 million and assumed deposit liabilities of $48.7 million, and purchased the related fixed assets of the branch and a potential branch site in Waynesboro, Virginia.  The Company operates the acquired bank branch under the name Union First Market Bank. The Company’s condensed consolidated statements of income include the results of operations of the branch from the closing date of the acquisition.  

In connection with the acquisition, the Company recorded $1.8 million of goodwill and $9,500 of core deposit intangible.  The core deposit intangible of $9,500 is being expensed in the current period.  The recorded goodwill was allocated to the community banking segment of the Company and is deductible for tax purposes.

The Company acquired the $72.5 million loan portfolio at a fair value discount of $1.7 million. The discount represents expected credit losses, adjustment to market interest rates and liquidity adjustments.   The performing loan portfolio fair value estimate was $70.5 million and the impaired loan portfolio fair value estimate was $276,000.  

Loans obtained in the acquisition of the branch for which there is specific evidence of credit deterioration and for which it was probable that the Company would be unable to collect all contractually required principal and interest payments represent less than 0.01% of the Company’s consolidated assets and, accordingly, are not considered material.  

NET INTEREST INCOME

On a linked quarter basis, tax-equivalent net interest income was $40.7 million, an increase of $816,000, or 2.0%, from the first quarter of 2011.  This improvement was principally due to interest-earning asset growth outpacing the growth of interest-bearing liabilities, enhanced by favorable demand deposit growth.  Second quarter tax-equivalent net interest margin was unchanged at 4.68% compared to the most recent quarter.  The flat net interest margin was principally attributable to lower investment security and loan yields offset by lower costs of interest-bearing deposits.  Additionally, the funding mix continued to shift from higher cost certificates of deposit to lower cost money market accounts and checking accounts.  

The following table shows average interest-earning assets, interest-bearing liabilities, the related income/expense and change for the periods shown:

For the three months ended June 30, 2011, tax-equivalent net interest income increased $119,000, or 0.29%, when compared to the same period last year.  The tax-equivalent net interest margin increased 3 basis points to 4.68% from 4.65% in the prior year.  The improvement in the net interest margin was a result of a continued shift in funding mix to lower cost funds as certificates of deposit decreased while savings, money markets and demand deposits increased.  Lower interest-earning asset income was principally due to lower loan yields on relatively flat average loan volume.  The following table shows average interest-earning assets, interest-bearing liabilities, the related income/expense and change for the periods shown:

For the six months ended June 30, 2011, tax-equivalent net interest income increased $4.9 million, or 6.5%, when compared to the same period last year.  Comparative results to the prior year exclude FMB results for the month of January 2010.  The tax-equivalent net interest margin increased 8 basis points to 4.68% from 4.60% in the prior year.  The improvement in the net interest margin was a result of improvement in the cost of funds partially offset by lower loan yields and aided by the increase in interest-earning assets due to the acquisition of FMB in the first quarter of 2010.  

The following table shows average interest-earning assets, interest-bearing liabilities, the related income/expense and change for the periods shown:

Acquisition Activity – net interest margin

The favorable impact of acquisition accounting fair value adjustments on net interest income was $1.8 million ($1.7 million – FMB; $140,000 – Harrisonburg branch) for the three months ended June 30, 2011.  If not for this favorable impact, the net interest margin for the second quarter would have been 4.47%, unchanged from the first quarter of 2011.  

The Harrisonburg branch

The acquired loan portfolio of the Harrisonburg branch was marked-to-market with a fair value discount to market rates.  Performing loan discount accretion is recognized as interest income over the estimated remaining life of the loans.  The Company also assumed certificates of deposit at a premium to market.  These were marked-to-market with estimates of fair value on acquisition date.  The resulting premium to market is amortized as a decrease to interest expense over the estimated lives of the certificates of deposit.

FMB

The acquired loan and investment security portfolios of FMB were marked-to-market with a fair value discount to market rates.  Performing loan and investment security discount accretion is recognized as interest income over the estimated remaining life of the loans and investment securities.  The Company also assumed borrowings (Federal Home Loan Bank (“FHLB”) and subordinated debt) and certificates of deposit.  These liabilities were marked-to-market with estimates of fair value on acquisition date.  The resulting discount/premium to market is accreted/amortized as an increase (or decrease) to net interest income over the estimated lives of the liabilities.  Additional credit quality deterioration above the original credit mark is recorded as additional provisions for loan losses.  

The second quarter and remaining estimated discount/premium is reflected in the following table (dollars in thousands):

Acquisition Activity – other operating expenses

Acquisition-related expenses associated with the acquisition of the Harrisonburg branch were $204,000 and $498,000 for the three and six month periods ended June 30, 2011, respectively, and are recorded in “Other operating expenses” in the Company’s condensed consolidated statements of income.  Such costs included principally system conversion and integrating operations charges which have been expensed as incurred.  There were no acquisition-related expenses related to the Harrisonburg branch in 2010.  The company expects no further expenses from the Harrisonburg branch acquisition.

ASSET QUALITY/LOAN LOSS PROVISION

Overview

During the second quarter, the Company experienced modest improvement in asset quality.  The reduced levels of nonperforming assets and associated activity as well as delinquency trends were favorable even though current economic conditions did not improve materially.  While future economic conditions  remain unknown, the Company’s lower levels of provisions for loan losses and increased coverage ratios demonstrate that its dedicated efforts to improve asset quality are taking hold.  The magnitude of any continued softening in the real estate market and its impact on the Company is largely dependent upon any lagging impact on commercial real estate, the recovery of residential housing, and the pace at which the local economies in the Company’s operating markets recover.  

Nonperforming Assets (NPAs)

At June 30, 2011, nonperforming assets totaled $91.3 million, a decrease of $10.0 million from the first quarter, and an increase of $13.9 million compared to a year ago.  The current quarter decrease in NPAs from the first quarter related to net decreases in both nonaccrual loans of $8.3 million and OREO of $1.7 million.  The decrease in nonperforming loans was a result of customer net pay downs of approximately $8.9 million and, charge-offs of $3.6 million, partially offset by additions of $4.2 million.  The nonperforming loans added during the quarter were principally related to residential real estate as borrowers continued to experience financial difficulties with the protracted economic recovery depleting their cash reserves and other repayment sources.    

Nonperforming Loans

Nonperforming assets at June 30, 2011 included $54.3 million in nonaccrual loans.  This total includes residential real estate loans of $27.8 million, land loans of $14.4 million, commercial real estate loans of $7.1 million, commercial and industrial loans of $2.4 million, land development loans of $1.5 million, and other loans of $1.0 million.  At June 30, 2011, the coverage ratio of the allowance for loan losses to nonperforming loans was 72.9%, an increase from 69.4% a year earlier and from 64.5% at March 31, 2011.  Impairment analyses provided appropriate reserves on these nonperforming loans while appropriate reserves on homogenous pools continue to be maintained.  The increase in the coverage ratio is primarily related to a decline in nonperforming loans.

Other Real Estate Owned (OREO)

Nonperforming assets at June 30, 2011 also included $36.9 million in other real estate owned, a decrease of $1.7 million from the prior quarter.  This total includes residential real estate of $14.1 million, land development of $12.1 million, land of $8.5 million, commercial real estate of $1.2 million and land held for development of bank branch sites of $1.0 million.  Included in land development is $8.7 million related to a residential community in the Northern Neck region of Virginia, which includes developed residential lots, a golf course and undeveloped land.  Foreclosed properties were adjusted to their fair values at the time of each foreclosure and any losses were taken as loan charge-offs against the allowance for loan losses at that time.  OREO asset valuations are also evaluated at least quarterly and any necessary write down to fair value is recorded as impairment.  

During the second quarter ended June 30, 2011, the Company’s OREO showed a net decrease of approximately $1.7 million compared to the first quarter of 2011, with sales of $3.7 million at a net loss of $163,000, additions of $2.3 million, and a fair value impairment write-down of $165,000.  The additions were principally related to homeowners and residential builders; sales from OREO were principally related to residential real estate and multi-unit residential property.  The Company expects this type of activity to continue until the market for these properties and the economy as a whole show marked improvement.  

Charge-offs

For the quarter ended June 30, 2011, net charge-offs which included loans with specific established reserves were $5.3 million, or 0.74%, of loans on an annualized basis, compared to $4.3 million, or 0.62%, for the first quarter of 2011 and $4.0 million, or 0.57%, for the same quarter last year.  Net charge-offs in the current quarter included commercial and residential builder loans of $2.3 million, commercial construction loans of $1.3 million, other consumer loans of $1.0 million, and home equity lines of credits of $710,000.  At June 30, 2011, total accruing past due loans were $38.1 million, or 1.33%, of total loans, a decrease from 1.52% at March 31, 2011, and 1.85% for the same quarter a year ago.  

Provision

The provision for loan losses for the current quarter was $4.5 million, a decrease of $1.8 million from the first quarter of this year and $545,000 increase from the same quarter a year ago.  The lower provision for loan losses compared to the most recent quarter primarily reflects improvements in asset quality and reduced specific reserves as covered impaired loans were charged off.  The current level of the allowance for loan losses reflects specific reserves related to nonperforming loans, changes in risk ratings on loans, net charge-off activity, loan growth, delinquency trends and other credit risk factors that the Company considers in assessing the adequacy of the allowance for loan losses.  

The allowance for loan losses as a percentage of the total loan portfolio, including net loans acquired in the FMB and the Harrisonburg branch (if applicable) acquisitions was 1.39% at June 30, 2011, 1.35% at December 31, 2010, and 1.20% at June 30, 2010.  The allowance for loan losses as a percentage of the total loan portfolio, adjusted for acquired loans, was 1.88% at June 30, 2011, a decrease from 1.96% at March 31, 2011, and an increase from 1.76% in the same quarter a year ago.  The lower ratio of the allowance for loan losses as a percentage of loans compared to the loan portfolio, adjusted for acquired loans, is related to the elimination of FMB’s allowance for loan losses at acquisition.  In acquisition accounting there is no carryover of previously established allowance for loan losses.

NONINTEREST INCOME

On a linked quarter basis, noninterest income decreased $584,000, or 5.5%, to $10.0 million from $10.5 million in the first quarter.  Gains on the sale of loans in the mortgage segment decreased $665,000, or 13.4%, and were driven by lower volume in loan originations.  Declines in refinanced mortgage loan volume accounted for most of the volume decrease as Union’s refinanced loans as a percentage of originations declined from 38.1% to 18.4%.  Service charges on deposit accounts and other account fees increased $585,000, related to an increase in debit card fee income, brokerage commissions, and overdraft and returned check fee volume.  During the current quarter, the Company reached agreement to sell a branch building previously closed in connection with the FMB merger.  The sale closed in early July and a loss of $626,000 was accrued in the second quarter.  Excluding mortgage segment operations and the loss on the sale of the branch building, noninterest income increased $718,000, or 12.6% from the first quarter and related to an increase in brokerage commissions, debit card fee income, and overdraft and returned check fee volume.

For the quarter ended June 30, 2011, noninterest income decreased $2.1 million, or 17.7%, to $10.0 million from $12.1 million in the prior year’s same quarter.  Gains on sales of loans in the mortgage segment decreased $945,000, or 18.0%, primarily related to lower origination volume.  Other operating income decreased $442,000, largely due to the reversal of a property improvement liability the Company recorded in the second quarter of 2010.  Other service charges and fees increased $215,000, primarily as a result of increased debit card income and brokerage commissions, but were partially offset by lower service charges on deposit accounts of $165,000.  During the current quarter, the Company recorded a loss of $626,000 on a branch building as mentioned above, and losses on sales of other real estate owned of $163,000.  Excluding the mortgage segment operations, and the loss on the sale of the free standing branch, noninterest income decreased $551,000, or 7.9%, from the same period a year ago.

For the six months ending June 30, 2011, noninterest income decreased $1.3 million, to $20.5 million, from $21.8 million a year ago.  Comparative results to the prior year exclude FMB results for the month of January 2010.  Gains on sales of loans in the mortgage segment decreased $468,000 on lower origination volume and higher estimates of early payment defaults.  Service charges on deposit accounts decreased $284,000 primarily related to lower overdraft and returned check charges.  Other operating income decreased $258,000 largely  related to a reversal of a property improvement liability that occurred in 2010 and higher trust income in the current year.  Partially offsetting those decreases was an increase in account service charges and fees of $854,000 that related to higher debit card income, ATM income, and brokerage commissions.  During the second quarter of 2011, the Company sold a branch building as mentioned above and accrued a loss on the sale of $626,000.  Other incurred losses on sales of other real estate owned were $461,000 for the period.  

NONINTEREST EXPENSE

On a linked quarter basis, noninterest expense increased $1.1 million, or 3.2%, to $35.9 million from $34.8 million when compared to the first quarter.  Other operating expenses increased $1.2 million, or 9.8%.  Of the other operating expenses increase, $612,000 were costs to maintain the Company’s portfolio of other real estate owned, including a valuation adjustment of $165,000, higher legal and professional fees due to continuing problem loan work outs and foreclosure activity of $368,000, and the remaining $220,000 represented communication and marketing expense increases.  Current quarter marketing expenses were brand awareness campaigns for the new seven in-store MARTIN’S® locations and a home equity line of credit promotion.  Also during the quarter, the Company recorded acquisition costs of $204,000, compared to $294,000 in the first quarter in connection with the aforementioned branch acquisition.  Excluding the mortgage segment operations and acquisition costs, noninterest expense increased $1.8 million, or 6.1%, compared to the first quarter of this year.

For the quarter ended June 30, 2011, noninterest expense increased $724,000, or 2.1%, to $35.9 million from $35.1 million for the second quarter of 2010.  Other operating expenses increased $852,000, or 6.5%.  Other operating expenses included higher costs to maintain the Company’s portfolio of other real estate owned of $811,000 which included a valuation adjustment of $165,000, legal and other professional fees of $387,000 principally relating to problem loan work outs and loan foreclosures.  Other increases were higher franchise taxes of $299,000, which were levied to include all of former FMB branches, higher other communication expenses of $245,000, partially offset by lower marketing and advertising expenses of $268,000.  Included in other operating expenses were costs associated with the acquisition of FMB of $843,000 during the second quarter of 2010 and current quarter branch acquisition costs of $204,000.  Excluding mortgage segment operations and acquisition costs, noninterest expense increased $1.6 million, or 5.5% from the second quarter of 2010.

For the six months ended June 30, 2011, noninterest expense decreased $1.3 million, to $70.6 million, from $71.9 million a year ago.  Comparative results to the prior year exclude FMB results for the month of January 2010.  Other operating expenses decreased $3.8 million, or 12.5%.  Included in the reduction of other operating expenses were prior year costs associated with the acquisition of FMB of $7.7 million during the first six months of 2010.  Increases in current year expenses included higher costs to maintain the Company’s portfolio of other real estate owned of $1.1 million, communication expenses related to increased online customer activity and additional branch locations of $885,000, and higher professional fees related to continuing collection activity and problem loan work outs of $579,000.  Other costs included higher franchise tax and FDIC insurance assessments of $598,000 and $472,000, respectively, due to adjustments starting in 2011, which included the acquired FMB branches. Salary and benefits expense increased $2.4 million, primarily related to additional personnel.  Excluding mortgage segment operations and acquisition costs, noninterest expense increased $5.2 million, or 9.2% from the same period a year ago.

BALANCE SHEET

At June 30, 2011, total cash and cash equivalents were $63.2 million, an increase of $2.1 million from December 31, 2011, and a decrease of $72.5 million from June 30, 2010.  The cash reduction from the prior year principally funded investment security purchases and reduced wholesale borrowings.  At June 30, 2011, net loans were $2.8 billion, an increase of $53.4 million, or 1.9% from the prior quarter.  Net loans increased $34.2 million, or 1.2%, from June 30, 2010.  Loans held for sale of $50.4 million in the Company’s mortgage segment decreased slightly from $50.6 million in the prior quarter and $24.3 million from the same quarter a year ago, each related to a decline in refinance originations.  At June 30, 2011, total assets were $3.852 billion, an increase of $38.8 million compared to the first quarter, and a decrease of $22.7 million from $3.874 billion at June 30, 2010.  

Total deposits during the second quarter increased $16.4 million compared to the first quarter driven by higher volumes in money market and demand deposit accounts, partially offset by lower volumes of NOW accounts and CDs.  Total deposits decreased $12.4 million from June 30, 2010 with net volume inflows into money market accounts and out of certificates of deposit.  Total borrowings, including repurchase agreements, increased $14.1 million on a linked quarter basis and decreased $32.6 million from June 30, 2010.  The Company’s equity to assets ratio was 11.50% and 10.90% at June 30, 2011 and 2010, respectively.  The Company’s tangible common equity to tangible assets ratio was 8.62% and 7.89% at June 30, 2011 and 2010, respectively. Tangible book value per share increased to $12.50 from $12.22 a quarter earlier, while book value per share increased to $15.72 from $15.43 for the same period.

MORTGAGE SEGMENT INFORMATION

On a linked quarter basis, the mortgage segment net income for the first quarter decreased $161,000, or 49.1%, to $167,000 from $328,000 in the first quarter.  Originations declined by $1.4 million from $149.1 million to $147.7 million, or 1.0%, from the first quarter as a result of a decline in refinance originations.  Refinanced loans represented 18.4% of originations during the second quarter compared to 38.1% during the first quarter.  Net interest income decreased $205,000, or 42.1%, due to increased borrowing rates.  Gains on the sale of loans decreased $665,000, or 13.4%, while commission expense declined $566,000, or 23.2%.  Salary and benefit expenses decreased $687,000 largely on loan volume driven commission expense, and other operating expenses increased $78,000, or 11.7%.  Estimated loan related losses attributable to early payment defaults, make whole demands and indemnifications were $184,000, decreasing $141,000, or 43.4% from the first quarter.

For the three months ended June 30, 2011, the mortgage segment net income decreased $629,000 to $167,000, from $796,000 for the same quarter in 2010.  Originations decreased $55.7 million from $203.5 million to $147.7 million, or 27.4%, during the same period last year as the average loan size declined 8.0% along with decreases in overall homeownership rates and residential mortgage activity. Refinanced loans represented 18.4% of originations during the second quarter of 2011 compared to 23.1% during the same period a year ago.   As a result, gains on the sale of loans decreased $952,000, or 18.1 %.  Noninterest expenses decreased $281,000.  Of this amount, salaries and benefits decreased $372,000 primarily as a result of loan volume driven commission expense.

For the six months ended June 30, 2011, the mortgage segment net income decreased $880,000, or 64.0%, to $495,000 from $1.4 million during the same period last year.  Originations declined by $54.8 million from $351.7 million to $296.8 million, or 15.6%, during the same period last year due to declines in residential mortgage activity, particularly refinance volume.  Net interest income decreased $215,000, or 21.9%, due to decreased originations and higher borrowing rates.  Gains on the sale of loans decreased $474,000, or 4.9%, driven largely by a $206,000, or 67.9%, increase in estimated loan related losses attributable to early payment defaults, make whole demands and indemnifications.  Refinanced loans represented 25.8% of originations during the first six months on the year compared to 30.0% during the same period a year ago.  Salary and benefit expenses increased $410,000 due to additional salary expense required to meet evolving regulatory, compliance and production demands.  Other operating expenses increased $221,000, or 18.6%, primarily related to increased costs associated with the processing, underwriting and compliance components of origination.  

ABOUT UNION FIRST MARKET BANKSHARES CORPORATION

Headquartered in Richmond, Virginia, Union First Market Bankshares Corporation is the holding company for Union First Market Bank, which has 99 branches and more than 160 ATMs throughout Virginia.  Non-bank affiliates of the holding company include: Union Investment Services, Inc., which provides full brokerage services; Union Mortgage Group, Inc., which provides a full line of mortgage products; and Union Insurance Group, LLC, which offers various lines of insurance products.  Union First Market Bank also owns a non-controlling interest in Johnson Mortgage Company, LLC.  

Additional information is available on the Company’s website at http://investors.bankatunion.com.  Shares of the Company’s common stock are traded on the NASDAQ Global Select Market under the symbol UBSH.

FORWARD-LOOKING STATEMENTS

Certain statements in this report may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements are statements that include projections, predictions, expectations, or beliefs about future events or results or otherwise are not statements of historical fact.  Such statements are often characterized by the use of qualified words (and their derivatives) such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” “intend,” “will,” or words of similar meaning or other statements concerning opinions or judgment of the Company and its management about future events.  Although the Company believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance, or achievements of the Company will not differ materially from any future results, performance, or achievements expressed or implied by such forward-looking statements.  Actual future results and trends may differ materially from historical results or those anticipated depending on a variety of factors, including, but not limited to, the effects of and changes in: general economic conditions, the interest rate environment, legislative and regulatory requirements, competitive pressures, new products and delivery systems, inflation, changes in the stock and bond markets, technology, and consumer spending and savings habits.  More information is available on the Company’s website, http://investors.bankatunion.com and on the Securities and Exchange Commission’s website, www.sec.gov.  The information on the Company’s website is not a part of this press release.  The Company does not intend or assume any obligation to update or revise any forward-looking statements that may be made from time to time by or on behalf of the Company.  

SOURCE Union First Market Bankshares Corporation