ATMORE, Ala., July 30, 2020 /PRNewswire/ -- United Bancorporation of Alabama, Inc. ("United") reported net income of $8.3 million for the six months ending June 30, 2020 compared to net income of $4.1 million for the same period last year. The $8.3 million includes a $6.0 million Capital Magnet Fund (CMF) grant awarded by the CDFI Fund to finance affordable housing projects. Earnings per share for the six-month period were $2.24 and $0.99 without the CMF award, compared to $1.34 for the same period in 2019.
United's net interest margin for the six months ended June 30, 2020 was 3.66% as compared to 4.03% for the same period in 2019. Year-to-date 2020 net interest income before the provision was $12.5 million, compared to $11.9 million for the same period in the prior year, an increase of $589,024 or 4.9%.
Non-interest income for the six months ended June 30, 2020 was $11.3 million, compared to $4.5 million for the same period last year. The $6.0 million CMF award was recognized in the second quarter of 2020.
Total loans, net of unearned income at June 30, 2020, were $512.3 million, compared to $428.6 million at June 30, 2019, representing an increase of $83.7 million or 19.5%. $50 million of the $83.7 million increase were PPP loans. To date United has earned approximately $2.1 million in fees related to PPP loans. United has not recognized any of this revenue, but intends to do so in the third quarter.
The provision for credit losses for the six months ended June 30, 2020 was $1,000,000, compared to $430,455 for the same period last year. In March 2020 a $500,000 provision was expensed due to the global economic uncertainty surrounding the coronavirus pandemic. For the quarter ending June 30, 2020, the provision for credit losses was $300,000 as compared to $155,455. This brings the allowance for loan losses to $6.2 million and the coverage ratio to 1.23%
For the complete second quarter report, please visit www.UnitedBank.com.
Tonya Lambert, SVP
Chief Marketing and Public Relations Officer
SOURCE United Bancorporation