Earnings increase at Union Bankshares

ELLSWORTH – Union Bankshares Co. has reported year-end earnings $4,315,140, an increase of more than $1 million over the comparable period last year. On an earnings per share basis, this was an increase from $5.59 to $7.49. The increase was attributed in part to a growth in the balance sheet and in part to a strong asset-liability management process.

The loan portfolio grew by more that $14.4 million, or 6.9 percent, while investments increased $6.6 million, or 6.4 percent. In an environment of declining interest rates, the growth in assets contributed to offsetting narrowing net interest margins.

The consumer mortgage market that remained strong throughout 2002 led to an increase of almost 64 percent in loan department fees directly related to home mortgage origination. Financial services income gained significantly, contributing $1.5 million to revenues. Also, the Cornerstone Investment Division was a large contributor to the increase year on year. As of Dec. 31, 2002, Union Trust had assets in excess of $380 million. Union Bankshares Co. is the holding company for Union Trust Co., serving customers from Waldoboro to Machias through 16 branch offices. Union Bankshares Co. trades over the counter under the symbol UNBH.