Ellsworth,Maine- Union Bankshares, Inc., (the "Company") (UNBH.OB) the parent company of Union Trust Company (the "Bank"), today announced net income for the three months ended December 31, 2006 of $1.1 million, representing an increase of $24,000, or 2%, when compared to $1.1 million for the three months ended December 31, 2005. Earnings per share for the three months ended December 31, 2006 were $1.03, an increase of 5%, compared to $.98 per share for the same three month period last year. For the twelve months ended December 31, 2006, net income was $3.8 million compared to $4.7 million for the prior year. Earnings per share were $3.50 for 2006 compared to $4.28 in 2005. |
Net interest income for the three months ended December 31, 2006 was $3.8 million, up $195,000, or 5%, from the third quarter of 2006 and essentially unchanged compared to the same period a year ago. The Company's net interest margin for the fourth quarter was 3.02%, an increase of 14 basis points from the third quarter of 2006 and a decrease of 20 basis points from the fourth quarter of 2005. Net interest income for the twelve months ended December 31, 2006 decreased $1.1 million, or 7%, from the same period in 2005. The net interest margin for the twelve months ended December 31, 2006 was 3.00% compared to 3.41% for the twelve months ended December 31, 2005. The Company's continued ability to generate solid loan growth has served to partially offset the effects of a declining net interest margin as average outstanding loans increased approximately $32.0 million, or 9%, during 2006. |
Non-interest income, excluding securities losses totaling $112,000, amounted to $1.6 million for the fourth quarter of 2006, an increase of $117,000, or 8%, compared to the fourth quarter of 2005. For the twelve months ended December 31, 2006, non-interest income, excluding securities transactions, totaled $6.1 million compared to $5.7 million for 2005, an increase of $400,000, or 7%. During the fourth quarter of 2006, the Company sold $7.4 million of investment securities, which resulted in a loss of $112,000. The proceeds from the sale were reinvested into higher yielding securities which will produce greater earnings beginning in 2007. Financial service fees and commissions increased $67,000, or 11%, and $132,000, or 6%, for the three and twelve months ended December 31, 2006, respectively, compared to the same periods in 2005, due to continued increases in new business volume and growth in managed assets. Bankcard fees increased $14,000, or 17%, and $47,000, or 15%, for th e three and twelve months ended December 31, 2006, respectively, compared to the same periods in 2005, due to increased debit card interchange revenue. Other income also increased $39,000 and $189,000 for the three and twelve months ended December 31, 2006, respectively, compared to the same periods in 2005, due primarily to higher levels of mortgage banking income. |
Non-interest expense decreased $173,000, or 4%, fourth quarter to fourth quarter and increased $429,000, or 3%, for the twelve months ended December 31, 2006. The decrease from the comparative quarter in 2005 was due to lower salaries and employee benefits of $236,000, or 10%, due to decreased health insurance benefits costs resulting from favorable claims experience, staff reductions and lower levels of incentive compensation. The year over year increase was primarily related to an increase in advertising and promotional costs in connection with the Bank's new branding efforts and an increase in salaries and employee benefits of approximately 1%. |
The Company's total assets amounted to $551.0 million at December 31, 2006, an increase of $21.1million, or 4%, over December 31, 2005. The increase in total assets is primarily attributable to continued growth of the Bank's loan portfolio, with total loans increasing $14.3 million, or 4%, from one year ago. Specifically, the Company's commercial real estate portfolio continued to expand, increasing by $10.7 million, or 16%, from 2005. Residential real estate loans also achieved healthy growth with outstanding balances rising by $7.3 million, or 3%. |
Total deposits increased $12.8 million, or 4%, to $347.8 million at December 31, 2006, compared to December 31, 2005. Borrowings from the Federal Home Loan Bank, combined with customer repurchase agreements and junior subordinated debt securities, increased $7.1 million, or 5%. |
