UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 1997
Commission File No. 0-20293
UNION BANKSHARES CORPORATION
(Exact name of registrant as specified in its charter)
Virginia 54-1598552
(State of Incorporation) (I.R.S. Employer Identification No.)
211 North Main Street
P.O. Box 446
Bowling Green, Virginia 22427
(Address of principal executive offices)
(804) 633-5031
(Registrant's telephone number)
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: NONE
SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: COMMON
STOCK, $4 PAR VALUE
Union Bankshares Corporation (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days.
As of March 31, 1997, Union Bankshares Corporation had 3,565,415 shares of
Common Stock outstanding.
UNION BANKSHARES CORPORATION
FORM 10-Q
March 31, 1997
INDEX
PART 1 - FINANCIAL INFORMATION Page
----
Item 1. Financial Statements
Consolidated Balance Sheets as of March 31, 1997
and December 31, 1996 .......................................... 1
Consolidated Statements of Income for the
three months ended March 31, 1997 and 1996 ..................... 2
Consolidated Statements of Cash Flows for the
three months ended March 31, 1997 and 1996 ..................... 3
Notes to Consolidated Financial Statements .......................... 4
Item 2 - Management's Discussion and Analysis of
Financial Condition and Results of Operations ............. 5-10
PART II - OTHER INFORMATION
Item 6 - Exhibits and Reports on Form 8-K ................................. 11
Signatures ................................................................ 11
Index to Exhibits ......................................................... 12
PART 1 - FINANCIAL INFORMATION
Item 1. Financial Statements
UNION BANKSHARES CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)
March 31, December 31,
ASSETS 1997 1996
- -------- -------- ----------
Cash and cash equivalents:
Cash and due from banks $ 21,166 $ 19,333
Interest-bearing deposits in other banks 1,149 1,016
Federal funds sold 6,385 2,104
-------- --------
Total cash and cash equivalents 28,700 22,453
-------- --------
Securities available for sale, at fair value 135,957 129,268
Investments securities,
fair value of $10,570 and $11,689, respectively 10,534 11,423
-------- --------
Total securities 146,491 140,691
-------- --------
Loans, net of unearned income 359,398 352,277
Less allowance for loan losses (note 2) 4,373 4,388
-------- --------
Net loans 355,025 347,889
-------- --------
Bank premises and equpiment, net 14,592 14,221
Other real estate owned 3,729 4,056
Other assets 9,236 11,583
-------- --------
Total assets $557,773 $540,893
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest-bearing demand deposits $ 55,862 $ 55,005
Interest-bearing deposits:
Savings accounts 53,971 54,364
NOW accounts 55,314 49,834
Money market accounts 52,448 54,431
Time deposits of $100,000 and over 50,946 51,812
Other time deposits 178,157 174,161
-------- --------
Total interest-bearing deposits 390,836 384,602
-------- --------
Total deposits 446,698 439,607
-------- --------
Short-term borrowings 35,181 27,403
Long-term borrowings 11,050 11,125
Other liabilities 4,591 4,192
-------- --------
Total liabilities 497,520 482,327
-------- --------
Stockholders' equity:
Common stock, $4 par value. Authorized 12,000,000
shares issued and outstanding, 3,565,415 and
3,566,915 shares, respectively 14,262 14,267
Surplus 126 160
Retained earnings 45,799 43,863
Unrealized gains on securities available for sale,
net of taxes 66 276
-------- --------
Total stockholders' equity 60,253 58,566
-------- --------
Commitments and contingencies
Total liabilities and stockholders' equity $557,773 $540,893
======== ========
See accompanying notes to consolidated financial statements
UNION BANKSHARES CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
Quarters ended March 31, 1997 and 1996
(Dollars in thousands)
1997 1996
----- -----
Interest income:
Interest and fees on loans ........................................................ $ 8,219 $ 7,837
Interest on securities:
U.S. Treasury securities ......................................... 108 104
U.S. Government agencies and corporations ........................ 862 895
States and political subdivisions ................................ 963 882
Other securities ................................................. 185 176
Interest on Federal funds sold .................................................... 58 76
Interest on interest-bearing deposits in other banks ............................. 15 2
------ -----
Total interest income ............................................ 10,410 9,972
------ -----
Interest expense:
Interest on deposits ................................................................ 4,408 4,345
Interest on other borrowings ........................................................ 526 383
----- -----
Total interest expense ............................................. 4,934 4,728
----- -----
Net interest income ................................................ 5,476 5,244
Provision for loan losses (note 2) .................................................... 200 131
----- -----
Net interest income after provision
for loan losses ................................................ 5,276 5,113
----- -----
Other income:
Service fees ........................................................................ 742 568
Gains (losses) on sale of securities available for sale ............................. 31 (106)
Gains (losses) on sales of other real estate owned
and bank premises, net ............................................. 109 -
Other operating income .............................................................. 123 141
----- ----
Total other income ................................................. 1,005 603
------ ----
Other expenses:
Salaries and benefits ............................................................... 2,033 1,826
Occupancy expenses .................................................................. 246 198
Furniture and equipment expenses .................................................... 304 237
FDIC assessments .................................................................... 12 2
Other operating expenses ............................................................ 1,179 1,076
----- -----
Total other expenses ............................................... 3,774 3,339
----- -----
Income before income taxes ............................................................ 2,507 2,377
Income tax expense .................................................................... 570 530
----- -----
Net income ......................................................... $1,937 $ 1,847
====== =======
Net income per share of common stock .................................................. $ 0.54 $ 0.52
====== =======
Cash dividends per share of common stock .............................................. $ -- $ --
====== =======
See accompanying notes to consolidated financial statements.
UNION BANKSHARES CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
Three Months Ended March 31, 1997 and 1996
(Dollars in thousands)
1997 1996
---- ----
Operating activities:
Net income $ 1,937 $ 1,847
Adjustments to reconcile net income to net cash and
cash equivalents provided by operating activities:
Depreciation of bank premises and equipment 355 226
Amortization of intangibles 11 10
Provision for loan losses 200 131
(Gains) losses on sales of securities available for sale 24 105
Gain on sale of other real estate owned (124) --
(Increase) decrease in other assets (636) (1,224)
Increase in other liabilities 499 672
-------- --------
Net cash and cash equivalents provided
by operating activities 2,266 1,767
-------- --------
Investing activities:
Net increase in securities (6,132) 1,372
Net increase in loans (7,336) (10,521)
Acquisition of bank premises and equipment (726) (809)
Proceeds from sales of other real estate owned 3,421 --
-------- --------
Net cash and cash equivalents used in
investing activities (10,773) (9,958)
-------- --------
Financing activities:
Net increase (decrease) in non-interest-bearing deposits 857 2,113
Net increase in interest-bearing deposits 6,234 10,043
Net increase in short-term borrowings 7,778 128
Purchase of common stock (40) --
Repayment of long-term borrowings (75) (75)
-------- --------
Net cash and cash equivalents provided by
financing activities 14,754 12,209
-------- --------
Increase (decrease) in cash and cash equivalents 6,247 4,018
Cash and cash equivalents at beginning of period 22,453 18,028
-------- --------
Cash and cash equivalents at end of period $ 28,700 $ 22,046
======== ========
See accompanying notes to consolidated financial statements.
UNION BANKSHARES CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
March 31, 1997
1. ACCOUNTING POLICIES
The consolidated financial statements include the accounts of Union
Bankshares Corporation and its subsidiaries (the "Company"). Significant
intercompany accounts and transactions have been eliminated in
consolidation.
The information contained in the financial statements is unaudited and
does not include all of the information and footnotes required by
generally accepted accounting principles for complete financial
statements. However, in the opinion of management, all adjustments
(consisting only of normal recurring accruals) necessary for a fair
presentation of the results of the interim periods presented have been
made. Operating results for the three-month period ended March 31, 1997
are not necessarily indicative of the results that may be expected for the
year ending December 31, 1997.
These financial statements should be read in conjunction with the
consolidated financial statements and notes thereto included in the
Company's 1996 Annual Report to Stockholders. Certain previously reported
amounts have been reclassified to conform to current period presentation.
2. ALLOWANCE FOR LOAN LOSSES
The following summarizes activity in the allowance for loan losses for the
three months ended March 31, (in thousands):
1997 1996
---- ----
Balance, January 1 $ 4,388 $ 4,060
Provisions charged to operations 200 131
Recoveries credited to allowance 36 263
Loans charged off (251) (179)
------- ------
Balance, March 31 $ 4,373 $ 4,275
======= =======
3. EARNINGS PER SHARE
Earnings per share outstanding has been computed by dividing net income by
the weighted average number of shares outstanding for the period. Weighted
average shares used for the computation were 3,566,101 and 3,561,970 for
the three months ended March 31, 1997 and 1996.
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Union Bankshares Corporation (the "Company") is a multi-bank holding
company organized under Virginia law which provides financial services through
its wholly-owned subsidiaries, Union Bank & Trust Company, Northern Neck State
Bank, King George State Bank, Union Investment Services, Inc., and Union
Mortgage Company, LLC. The three subsidiary banks, Unon Bank & Trust Company,
Northern Neck State Bank and King George State Bank, are full service retail
commercial banks offering a wide range of banking and related financial
services, including demand and time deposits, as well as commercial, industrial,
residential construction, residential mortgage and consumer loans. Union
Investment Services, Inc., is a full service discount brokerage company which
offers a full range of investment services, and sells mutual funds, bonds and
stocks. Union Mortgage Company, LLC provides a wide array of mortgage products
to the Company's primary trade area.
The Company's primary trade area stretches from Fredericksburg, south to
Hanover County and east to the Northern Neck area of Virginia. The Corporate
Headquarters are located in Bowling Green, Virginia. Through its banking
subsidiaries, the Company operates 19 branches in its primary trade area.
Management's discussion and analysis is presented to aid the reader in
understanding and evaluating the financial condition and results of operations
of Union Bankshares Corporation and subsidiaries (the "Company"). The analysis
focuses on the Consolidated Financial Statements, the footnotes thereto, and the
other financial data herein. Highlighted in the discussion are material changes
from prior reporting periods and any identifiable trends affecting the Company.
Amounts are rounded for presentation purposes, while the percentages presented
are computed based on unrounded amounts.
Results of Operations
Net income for the first quarter of 1997 was $1.9 million, up from $1.8
million for the same period in 1996. Earnings per share amounted to $.54 in the
first quarter of 1997 as compared to to $.52 in the first quarter of 1996. The
Company's annualized return on assets for the first quarter of 1997 was 1.43% as
compared to 1.46% a year ago. The Company's annualized return on equity totaled
13.22% and 13.82% for the three months ended March 31, 1997 and 1996,
respectively. Despite strong asset and capital growth, these performance ratios
remain strong performance ratios by industry and peer standards.
Net Interest Income
Net interest income on a tax-equivalent basis for the first quarter of
1997 increased by 3.0% to $5.8 million from $5.6 million for the same period a
year ago. By managing its interest rate spread and increasing the volume of
earning assets over interest-bearing liabilities, the Company has been able to
maintain a strong net interest margin. Average earning assets during the first
quarter of 1997 increased by $28.0 million to $503.5 million from the first
quarter of 1996, while average interest-bearing liabilities grew by $23.3
million to $428.5 million over this same period. The Company's yield on average
earning assets was 8.56%, down from 8.78% a year ago, while its cost of average
interest-bearing liabilities also decreased slightly from 4.70 % to 4.62%.
Union Bankshares Corporation
Average Balances, Income and Expenses, Yields and Rates (Taxable Equivalent Basis)
---------------------------------------------------------------------------------------------
Quarter Ended March 31,
-----------------------------------------------------
1997 1996 1995
---------------------------------------------------------------------------------------------
Interest Interest Interest
Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate Balance Expense Rate
---------------------------------------------------------------------------------------------
(Dollars in thousands)
Assets:
Securities:
Taxable . . . . . . . . . . . $ 74,595 $ 1,144 6.15% $ 75,474 $ 1,151 6.13% $71,283 $ 1,164 6.55%
Tax-exempt(1) . . . . . . . . 66,437 1,315 7.94% 62,364 1,312 8.46% 59,574 1,193 8.03%
--------- --------- -------- ------- ------ --------
Total securities . . . 141,032 2,459 6.99% 137,838 2,463 7.19% 130,857 2,357 7.22%
Loans, net. . . . . . . . . . . . . 356,855 8,219 9.24% 332,101 7,837 9.49% 299,245 6,966 9.34%
Federal funds sold . . . . . . . . . 4,645 58 5.01% 4,842 69 5.73% 3,815 51 5.36%
Interest-bearing deposits .......... - -
in other banks . . . . . . . . 1,002 15 6.00% 725 9 4.99% 417 6 5.77%
--------- --------- -------- ------ ------- -------
Total earning assets . . 503,534 10,751 8.56% 475,506 10,378 8.78% 434,334 9,380 8.66%
Allowance for loan losses . . . . . . (4,451) (4,113) (4,169)
Total non-earning assets ............ 44,376 38,900 31,527
-------- -------- -----------
Total assets . . . . . . . . . . . . $543,459 $ 510,293 $ 461,692
========== ========= ==========
Liabilities & Stockholders' Equity:
Interest-bearing deposits:
Checking . . . . . . . . . . . $ 51,797 329 2.55% $ 45,348 286 2.54% 43,644 304 2.79%
Regular savings . . . . . . . 45,067 351 3.12% 56,120 504 3.61% 60,264 563 3.75%
Money market savings . . . . . 54,504 455 3.35% 55,068 452 3.30% 60,813 518 3.42%
Certificates of deposit:
$100,000 and over . . . . . . 49,890 645 5.19% 47,159 636 5.42% 38,643 494 5.13%
Under $100,000 . . . . . . . . 187,110 2,633 5.64% 166,164 2,467 5.97% 139,814 1,778 5.10%
--------- --------- --------- ----- ------- -----
Total interest-bearing
deposits . . . . . 388,368 4,413 4.56% 369,859 4,345 4.72% 343,178 3,657 4.27%
Other borrowings . . . . . . . . . . . 40,181 525 5.24% 35,375 390 4.43% 23,833 349 5.87%
--------- --------- --------- ----- ------- -----
Total interest-bearing
liabilities . . . 428,549 4,938 4.62% 405,234 4,735 4.70% 367,011 4,006 4.38%
-------- ------ ------
Non-interest bearing liabilities:
Demand deposits . . . . . . . . 52,870 49,002 44,853
Other liabilities . . . . . . . 4,660 3,844 4,128
--------- --------- ---------
Total liabilities . . . . 486,079 458,080 415,992
Stockholders' equity . . . . . . . . . .57,380 52,213 45,700
--------- --------- --------
Total liabilities and
stockholders' equity . . . . . .$543,459 $ 510,293 $ 461,692
========= ========= =========
Net interest income ........................... $ 5,813 $ 5,643 $ 5,374
========= ========= =========
Interest rate spread .......................... 3.94% 4.08% 4.28%
Interest expense as a percent
of average earning assets ............... 3.93% 4.01% 3.70%
Net interest margin ........................... 4.63% 4.77% 4.96%
(1) Income and yields are reported on a taxable equivalent basis
Union Bankshares Corporation
The following table presents the Company's interest sensitivity position at
March 31, 1997. This one-day position, which is continually changing, is not
necessarily indicative of the Company's position at any other time.
Interest Sensitivity Analysis
March 31, 1997
---------------------------------------------------------------------------------
Within 90-365 1-5 Over
90 Days Days Years 5 Years Total
-------------- --------------- --------------- -------------- ---------------
(In thousands)
Earning Assets:
Loans, net of unearned income (3) ..... $ 77,277 $ 63,058 $ 145,382 $ 73,519 $ 359,236
Investment securities ................. 200 1,090 8,301 943 10,534
Securities available for sale ......... 2,041 4,023 34,653 95,240 135,957
Federal funds sold .................... 6,385 -- -- -- 6,385
Other short-term investments .......... 1,149 -- -- -- 1,149
--------- --------- --------- --------- ---------
Total earning assets .................. 87,052 68,171 188,336 169,702 513,261
--------- --------- --------- --------- ---------
Interest-Bearing Liabilities:
Interest checking (2) ................. -- 501 54,812 -- 55,313
Regular savings (2) ................... 4,705 1,669 47,597 -- 53,971
Money market savings .................. 44,086 1,515 6,847 -- 52,448
Certificates of deposit:
$100,000 and over ................. 14,291 21,980 14,675 -- 50,946
Under $100,000 .................... 30,368 89,875 57,913 -- 178,156
Short-term borrowings ................. 19,172 16,009 -- -- 35,181
Long-term borrowings .................. -- 150 10,600 300 11,050
--------- --------- --------- --------- ---------
Total interest-bearing
liabilities . . . . . . . . . . . . 112,622 131,699 192,444 300 437,065
--------- --------- ---------- -------- ---------
Period gap ............................ (25,570) (63,528) (4,108) 169,402
Cumulative gap . . . . . . . . . . . . $ (25,570) $ (89,098) $ (93,206) $ 76,196 $ 76,196
========== ========== ========= ========= =========
Ratio of cumulative gap to
total earning assets .............. -5.63% -18.21% -19.23% 13.78%
===== ======= ========== =======
(1) The repricing dates may differ from maturity dates for certain assets due to
prepayment assumptions.
(2) The Company has found that interest-bearing checking deposits and regular
savings deposits are not sensitive to changes in related market rates and
therefore, it has placed them predominantly in the "1-5 Years" column.
(3) Excludes non-accrual loans
Provision for Possible Loan Losses
The provision for possible loan losses totaled $200,000 for the first
quarter of 1997, up from $131,000 for the first quarter of 1996. These
provisions reflect the performance of the loan portfolio and management's
assessment of the credit risk in the portfolio. (See Asset Quality)
Non-Interest Income
Non-interest income for the first quarter of 1997 totaled $1.0 million, up
from $603,000 a year ago. This increase is due principally to the increases in
income from service fees on deposit accounts, increased brokerage commissions
and net gains of approximately $109,000 on sales of real estate owned.
Management continues to seek additional sources of non-interest income,
including increased emphasis on its credit card operations, mortgage banking
activities and discount brokerage services.
Non-Interest Expense
Non-interest expense increased by 13.0% for the first quarter of 1997,
totaling $3.8 million as compared to $3.3 million for the quarter ended March
31, 1996. Personnel costs comprised much of this change, increasing
approximately 11.3% over the first quarter of 1996. Much of this cost is
attributable to infrastructure associated with the consolidation of certain
functions and the development and introduction of new products and delivery
systems, which are expected to enhance future earnings through increased revenue
and/or improved efficiencies. The Company continues to stress budgetary expense
controls and operates at considerably more efficient levels than its peers, as
measured by the efficiency ratio (ratio of non-interest expenses to net interest
income plus non-interest income). For the first quarter of 1997 the Company's
efficiency ratio was 56.3%.
Financial Condition
Total assets as of March 31, 1997 were $557.8 million, an increase of 3.1%
from $540.9 million at December 31, 1996 and 7.42% from $519.2 million at March
31, 1996. Asset growth continued to be fueled by steady loan demand, as loans
totaled $359.4 million at March 31, 1997, an increase of 2.0% from $352.3
million at December 31, 1996, and 6.5% from $337.4 million at March 31, 1996.
Stockholders' equity totaled $60.3 million at March 31, 1997 which represents a
book value of $ 16.90 per share.
Deposit growth, though outpaced by loan growth, remained steady. Total
deposits at March 31, 1997 were $446.7 million, up 1.6% from $439.6 million at
December 31, 1996 and 4.4% from $427.9 million a year earlier. Other borrowings
totaled $46.2 million a 20.0% increase over $38.5 million at the end of 1996 and
a 42.5% increase from $32.4 million at March 31, 1996. The Company continues to
utilize other borrowings to supplement deposit growth and, periodically, in
wholesale leverage transactions. These wholesale leverage transactions are
typically executed at spreads of approximately 150 to 200 basis points and,
although they negatively impact the Company's net interest margin, they have a
positive effect on earnings and return on equity.
Continued competition for deposits, particularly as it impacts certificate
of deposit rates, is reflected in the deposit mix. Management continues to focus
on increasing lower cost deposit products, including non-interest bearing demand
deposits and savings accounts. Increased competition for funds, particularly by
non-banks, continues to contribute to a narrowing of the net interest margin
which has been largely offset by increases in the volume of earning assets.
Asset Quality
The allowance for credit losses is an estimate of an amount adequate to
provide for potential losses in the loan portfolio. The level of credit losses
is affected by general economic trends as well as conditions affecting
individual borrowers. The allowance is also subject to regulatory examinations
and determination as to adequacy, which may take in to account such factors as
the methodology used to calculate the allowance and comparison to peer groups.
The allowance for loan losses totaled $4.4 million at March 31, 1997 or
1.22% of total loans, as compared to 1.25% at December 31, 1996 and 1.27% at
March 31, 1996. At March 31, 1997, non-performing assets of $4.0 million
included foreclosed properties of $1.1 million and a $2.4 million investment in
income-producing property. The decrease from December 31, 1996 is principally
due to the sale of a single property comprising over 1800 acres in King George
County and which had been carried at $1.9 million.
March 31, December 31, March 31,
1997 1996 1996
----- ---- ----
Non-accrual loans $ 477 $ 420 $ 821
Foreclosed properties 1,111 4,056 3,932
Real estate investment 2,389 2,970 --
------ ------ ------
Non-performing assets $3,977 $7,446 $4,753
====== ====== ======
Allowance for loan losses $4,373 $4,388 $4,275
Allowance as % of total loans 1.22% 1.25% 1.27%
Non-performing assets to loans
and foreclosed properties 1.20% 2.07% 1.25%
Capital Resources
Capital resources represent funds, earned or obtained, over which
financial institutions can exercise greater or longer control in comparison with
deposits and borrowed funds. The adequacy of the Company's capital is reviewed
by management on an ongoing basis with reference to the size, composition, and
quality of the Company's resources and consistency with regulatory requirements
and industry standards. Management seeks to maintain a capital structure that
will assure an adequate level of capital to support anticipated asset growth and
absorb potential losses.
The Federal Reserve, along with the Comptroller of the Currency and the
Federal Deposit Insurance Corporation, has adopted capital guidelines to
supplement the existing definitions of capital for regulatory purposes and to
establish minimum capital standards. Specifically, the guidelines categorize
assets and off-balance sheet items into four risk-weighted categories. The
minimum ratio of qualifying total assets is 8.0%, of which 4.0% must be Tier 1
capital, consisting of common equity and retained earnings, less certain
goodwill items.
At March 31, 1997, the Company's ratio of total capital to risk-weighted assets
was 15.92% and its ratio of Tier 1 capital to risk-weighted assets was 14.84%.
Both ratios exceed the fully phased-in capital requirements. The following
summarizes the Company's regulatory capital and related ratios at March 31,
1997:
Tier 1 capital $ 59,931
Tier 2 capital $ 4,373
Total risk-based capital $ 64,304
Total risk-weighted assets $ 403,817
Capital Ratios:
Tier 1 risk-based capital ratio 14.84%
Total risk-based capital ratio 15.92%
Leverage ratio (Tier I capital to
average adjusted total assets) 11.03%
Equity to assets ratio 10.80%
The Company's book value per share at March 31, 1997 was $16.90. Dividends
to stockholders are typically declared and paid semi-annually in June and
December.
Liquidity
Liquidity represents an institution's ability to meet present and future
financial obligations through either the sale or maturity of existing assets or
the acquisition of additional funds through liability management. Liquid assets
include cash, interest bearing deposits with banks, federal funds sold,
investments and loans maturing within one year. The Company's ability to obtain
deposits and purchase funds at favorable rates determines its liability
liquidity. Additional sources of liquidity available to the Company include its
capacity to borrow additional funds when necessary through Federal funds lines
with several regional banks and a line of credit with the Federal Home Loan
Bank. Management considers the Company's overall liquidity to be sufficient to
satisfy its depositors' requirements and to meet its customers' credit needs.
At March 31, 1997, cash, interest-bearing deposits in other banks, federal
funds sold, securities available for sale and loans maturing or repricing in one
year were 58.9% of total earning assets. At March 31, 1997 approximately $140.3
million or 39.1% of total loans would mature or reprice within the next year.
The Company utilizes federal funds purchased, FHLB advances, securities sold
under agreements to repurchase and customer repurchase agreements, in addition
to deposits, to fund the growth in its loan portfolio, and to fund securities
purchases, periodically in wholesale leverage transactions.
PART II - OTHER INFORMATION
Item 6 - Exhibits and Reports on Form 8-K
(a) No Form 8-K was required to be filed during the most recently
completed quarter.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Union Bankshares Corporation
-----------------------------
(Registrant)
May 14, 1996 s/ G. William Beale
- ---------------------------- -----------------------------
(Date) G. William Beale,
President, Chief Executive
Officer and Director
May 14, 1996 s/ D. Anthony Peay
- ---------------------------- -----------------------------
(Date) D. Anthony Peay,
Vice President and
Chief Financial Officer
UNION BANKSHARES CORPORATION AND SUBSIDIARIES
Index to Exhibits
Form 10-Q/March 31, 1997
Exhibit
No. Description
2 Plan of acquisition, reorganization, arrangement,
liquidation or succession - Not Applicable
4 Instruments defining the rights of security holders,
including indentures Not Applicable
10 Material contracts Not Applicable
11 Statement re: computation of per share earnings Not Applicable
15 Letter re: unaudited interim financial
information Not Applicable
18 Letter re: change in accounting principles Not Applicable
19 Previously unfiled documents Not Applicable
20 Report furnished to security holders Not Applicable
22 Published report re: matters submitted to
vote of security holders None
23 Consents of experts and counsel Not Applicable
24 Power of Attorney Not Applicable
99 Additional Exhibits None