ATMORE, Ala., April 21, 2020 /PRNewswire/ -- United Bancorporation of Alabama, Inc. (OTCQX: UBAB) ("United"), parent company of United Bank and UB Community Development, released first quarter financial results. The Company reported net income of $2.3 million for the three months ended March 31, 2020 compared to net income of $1.6 million for the same period last year. Earnings per share for the three months ended March 31, 2020 was $0.64 compared to an earnings per share for the same period last year of $0.67.
United's net interest margin for the three months ended March 31, 2020 was 3.95% as compared to 3.99% for the three months ended March 31, 2019. Year-to-date 2020 net interest income before the provision was $6.3 million compared to $5.7 million, an increase of $622,675 or 10.8%.
Non-interest income for the three months ended March 31, 2020 was $3.3 million compared to $1.8 million, a difference of approximately $1.5 million or 81.8%. In January, United received a $799,000 Financial Assistance (FA) award from the CDFI Fund in support of small business lending initiatives. UB Community Development earned $420,000 in New Markets Tax Credit (NMTC) fee income.
Total loans, net of unearned income at March 31, 2020 were $459.6 million compared to $412.4 million at March 31, 2019, representing an increase of $47.2 million or 11.5%.
The provision for credit losses for the first three months ended March 31, 2020 was $700,000 compared to $275,000 for the same period last year. The increased provision is due to the global economic uncertainty surrounding the coronavirus pandemic.
In an effort to assist its customers and communities impacted by the coronavirus pandemic, United processed 486 of the Small Business Administration's Paycheck Protection Program (PPP) loans totaling $40.0 million. The program closed on April 16, 2020. Additionally, approximately 101 deferrals have been processed through April 16, 2020.
For the complete first quarter financial results narrative, please visit www.UnitedBank.com.
CONTACT: Tonya Lambert, [email protected], 251-446-6004
SOURCE United Bancorporation