Union Bankshares has reported a net income of $2.3 million, or $0.17 per diluted share, for the fourth quarter ended December 31, 2008, down 37% from $3.6 million, or $0.27 diluted earnings per share, for the comparable quarter in 2007.
Return on average equity for the fourth quarter ended December 31, 2008 was 4.08%, while return on average assets for the same period was 0.37%, compared to 6.80% and 0.64%, respectively, for the prior year’s same quarter.
For the fourth quarter of 2008, net interest income, on a tax-equivalent basis, decreased $216,000, or 1.1%, to $19.6 million, compared to the same quarter in 2007. Net interest margin for the quarter decreased 37 basis points from 3.89% to 3.52% for the corresponding quarter of 2007.
The company reported a net income for the year ended December 31, 2008 of $14.5 million, down $5.2 million, or 26.5% from $19.8 million, for the same period of 2007. This decline represents a decrease in earnings per share, on a diluted basis, of $0.40, or 27.2%, from $1.47 to $1.07.
Return on average equity for the 12 months ended December 31, 2008 was 6.70%, while return on average assets was 0.61%, compared to 9.61% and 0.91%, respectively, for the same period in 2007.
For the year ended December 31, 2008, net interest income, on a tax-equivalent basis, increased by $2.5 million, or 3.2%, to $81.3 million for the year 2007. The increase in net interest income was achieved despite a decline in the net interest margin of 27 basis points, from 4.06% to 3.79%, said Union Bankshares.
