Union Bankshares has reported a net income for the first quarter ended March 31, 2009 of $1.75m, or diluted earnings per share of $0.07, compared to $3.65m, or diluted earnings per share of $0.27, for the same period of 2008.
The company said that the decrease was driven by a decline in the net interest margin and an increase in the provision for loan losses. These declines were partially offset by increased profitability in the mortgage segment.
For the first quarter of 2009, net income available to common shareholders, which deducts from net income the dividends and discount accretion on preferred stock, was $892,000, compared to $3.65m in the corresponding quarter of 2008.
Net interest income for the first quarter of 2009 was $17.71m, compared to $19.12m for the same quarter of 2008. Total non-interest income for the first quarter of 2009 was $7.33m, compared to $7.35m in the corresponding period of 2008.
Return on average common equity for the first quarter of 2009 was 2.57%, while return on average assets was 0.28%, compared to 6.85% and 0.64%, respectively, for the same period in 2008.
William Beale, president and CEO of Union Bankshares, said: While our first quarter operating results are not at the levels we have come to expect, they are indicative of the current economic environment across our country. We were very pleased with the results of the mortgage segment which generated near record loan production and profitability levels for the quarter. During this quarter, we undertook some aggressive steps to help our home builder customers sell houses to qualified buyers by offering attractive low fixed rate financing packages.
