Union Bankshares Corporation Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2018; Reports Net Charge-Offs for the Second Quarter of 2018; Revises Effective Tax Rate Guidance for the Full Year of 2018
For the six months, the company reported total interest and dividend income of $256,789,000 as compared to $157,365,000 for the same period last year. Net interest income was $211,640,000 as compared to $135,071,000 for the same period last year. Income before income taxes was $79,949,000 as compared to $50,190,000 for the same period last year. Net income was $63,966,000 as compared to $37,080,000 for the same period last year. Basic and diluted earnings per common share was $0.97 as compared to $0.85 for the same period last year. Return on average assets was 0.98% against 0.87% a year ago. Return on average equity was 7.03% against 7.34% a year ago. Book value per common share was $28.47 against $23.79 a year ago. Tangible book value per common share was $16.62 as compared to $16.50 for the same period last year. Net interest income (non-GAAP) was $215,485,000 as compared to $140,755,000 for the same period last year. Net operating earnings (non-GAAP) was $92,739,000 as compared to $39,438,000 for the same period last year. Income from continuing operations was $66,374,000 against $36,683,000 a year ago.
For the second quarter of 2018, net charge-offs were $1.8 million, or 0.07% of total average loans on an annualized basis, compared to $1.1 million, or 0.05%, for the prior quarter and $2.5 million, or 0.15%, for the same quarter last year. Of the net charge-offs in the second quarter of 2018, the majority were related to consumer loans.
For the full year of 2018, they are now projecting an effective tax rate of approximately 18%, that's up from 17.5% guidance they gave last quarter, driven by the changes in the components of pretax income.