Union Bankshares(UNB) - 2024 Q1 - Quarterly Report

Financial Performance - Consolidated net income decreased by $560 thousand, or 18.8%, to $2.4 million for Q1 2024 compared to $3.0 million for Q1 2023[105] - Net interest income for the three months ended March 31, 2024, was $9,008 thousand, a decrease of $967 thousand compared to $9,975 thousand in 2023[122] - Noninterest income rose to $2,567 thousand in Q1 2024, a 12.3% increase from $2,285 thousand in Q1 2023, driven by higher wealth management income and net gains on sales of loans[126] Interest and Yield Metrics - Net interest margin decreased to 2.68% for Q1 2024 from 3.14% for Q1 2023, while net interest spread decreased to 2.23% from 2.84%[104] - Average yield on average earning assets increased by 51 basis points to 4.60% for Q1 2024 compared to 4.09% for Q1 2023[111] - The average yield on total interest earning assets improved to 4.60% in Q1 2024 from 4.09% in Q1 2023[120] Asset and Liability Overview - Total consolidated assets were $1.42 billion as of March 31, 2024, with total loans of $1.04 billion and deposits of $1.17 billion[106] - Total assets of the company reached $1,425,712 thousand as of March 31, 2024, compared to $1,342,159 thousand in the same period last year, marking a growth of 6.2%[120] - Total deposits decreased by $134.0 million, or 10.3%, to $1.17 billion at March 31, 2024, with noninterest bearing deposits down by 11.5% and interest bearing deposits down by 15.1%[134] Loan and Credit Quality - The loan to deposit ratio increased to 88.56% for Q1 2024 from 79.55% for Q1 2023[113] - Nonperforming assets totaled $1.873 million as of March 31, 2024, down from $2.349 million a year earlier, reflecting improved asset quality[142] - Credit loss benefit for off-balance sheet credit exposures was $308 thousand in Q1 2024, compared to a benefit of $16 thousand in Q1 2023, indicating improved credit quality[124] Expenses and Efficiency - Total noninterest expenses increased to $9,223 thousand in Q1 2024, up 5.4% from $8,750 thousand in Q1 2023, primarily due to higher salaries and employee benefits[126] - The efficiency ratio increased to 79.68% for Q1 2024 from 70.46% for Q1 2023[113] Capital and Equity - Stockholders' equity decreased from $65.8 million at December 31, 2023, to $63.8 million at March 31, 2024, primarily due to a $2.9 million increase in accumulated other comprehensive loss[175] - As of March 31, 2024, the Company reported total capital to risk-weighted assets of 13.36%, exceeding the minimum requirement of 8.0%[182] Dividends and Shareholder Returns - Quarterly cash dividends of $0.36 per share were declared for the first quarter of 2024, payable on May 2, 2024[184] Strategic Initiatives - The Company continues to evaluate growth opportunities through internal growth or potential acquisitions, reflecting a strategic focus on expansion[173] - The Company is involved in off-balance-sheet financial instruments, including commitments to extend credit and standby letters of credit, which carry credit and interest rate risks[161]