Union Bankshares Corp. (UNB) stock reached a 52-week high this week, touching $37.34 amid a period of robust performance. The company has delivered impressive returns, with shares surging 62.94% over the past six months and maintaining a healthy 4% dividend yield. According to InvestingPro analysis, the stock appears overvalued at current levels, with technical indicators suggesting overbought conditions. This milestone reflects investor confidence and a strong financial showing from the bank, which has been capitalizing on strategic growth initiatives and a favorable banking environment. The 52-week high serves as a testament to Union Bankshares’ resilience and its ability to navigate the complex financial landscape. The company has demonstrated commitment to shareholder returns, having raised its dividend for 11 consecutive years. InvestingPro subscribers can access 8 additional investment insights about UNB’s financial health and growth prospects.
In other recent news, Union Bankshares, Inc. reported a decrease in third-quarter earnings with net income falling to $1.3 million, or $0.29 per share, from $2.5 million, or $0.56 per share, during the same period last year. The nine-month earnings also saw a decline, falling to $5.8 million, or $1.27 per share, from $8.2 million, or $1.82 per share in the previous year. This downturn is primarily attributed to a strategic balance sheet repositioning, which included the sale of $38.8 million in lower-yielding debt securities, leading to a pre-tax loss of $1.3 million.
Despite these challenges, the company’s total assets increased by 8.9% to $1.52 billion, driven by loan growth. Total (EPA:) deposits decreased slightly to $1.17 billion, and Federal Home Loan Bank advances increased substantially to $230.7 million. The company’s equity capital grew to $72.3 million, and the accumulated other comprehensive loss improved to $26.8 million.
Net interest income for the quarter rose by 3.1% to $9.4 million, and noninterest income, excluding the loss on bond sale, increased to $2.9 million. The Board of Directors declared a quarterly cash dividend of $0.36 per share. These are among the recent developments for Union Bankshares, Inc.
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