Union Bank Releases First Quarter Earnings and Announces Cash Dividend of $0.0975 Per Share

GREENVILLE, N.C.–(BUSINESS WIRE)–Union Bank (OTCQX: UBNC) reports earnings results for the quarter ended
March 31, 2019 and announces cash dividend of $0.0975 per share.

Union Bank (the “Bank”) is pleased to report earnings results for the
quarter ended March 31, 2019. Unaudited net income for the three months
ended March 31, 2019 was $1,639,000 or $0.27 per basic common share,
compared to $1,501,000, or $0.25 per basic common share for the same
period in the prior year. This represents a 9.2% increase in earnings
for the comparable three-month periods. Return on average assets and
return on average equity was 0.87% and 8.38%, respectively, for the
three months ended March 31, 2019. Return on average tangible common
equity was 10.20% for the first quarter.

Total assets as of March 31, 2019 were $770.6 million, compared to total
assets of $745.2 million as of December 31, 2018, and $706.3 million as
of March 31, 2018. Total loans, net of reserves, were $514.4 million and
deposits were $638.7 million, as of March 31, 2019 compared to net loan
balances of $501.7 million and deposits of $600.1 million as of March
31, 2018. Asset quality remains excellent, total non-performing assets
were 0.13% of total assets as of March 31, 2019. Capital levels remain
strong, total risk-based capital was 14.04%, common equity tier 1 to
risk-weighted assets was 12.16%, and the Bank’s tier 1 leverage ratio
was 8.89% at quarter-end. As of March 31, 2019, shares of common stock
issued an outstanding totaled 5,980,610.

Rob Jones, President and Chief Executive Officer stated, “We are pleased
to report strong earnings for the first quarter of 2019. We are also
pleased that loan and deposit levels continue to increase at a steady
pace. Gross loans and deposits have grown at an annualized rate of 7.5%
and 7.4%, respectively, since December 31, 2018. Our loan quality
metrics remain outstanding. As previously stated, the Bank intends to
maintain lending discipline as we work towards a natural contraction of
the economic cycle.”

Union Bank also announced today that its Board of Directors, on April
18, 2019, approved a semi-annual cash dividend of $0.0975 per share on
the Bank’s common stock. The cash dividend is payable on June 28, 2019
to shareholders of record at the close of business on June 14, 2019.

Union Bank is headquartered in Greenville, North Carolina and operates
15 branches located in 11 counties throughout Eastern and Central North
Carolina. Union Bank stock is traded on the OTCQX under the symbol UBNC.

This press release includes certain forward-looking statements in
reliance on the “safe-harbor” provisions of The Private Securities
Litigation Reform Act of 1995. Any such forward-looking statements are
subject to a number of risks and uncertainties. Actual results may
differ materially from those anticipated in any such forward-looking
statements. The Bank undertakes no obligation to update or revise any
such forward-looking statements. This press release contains financial
information determined by methods other than in accordance with GAAP.
The Bank’s management uses these non-GAAP financial measures in their
analysis of the Bank’s performance. These measures typically adjust GAAP
performance measures to exclude the effects of transactions that are
infrequent in nature. Management believes presentations of these
non-GAAP financial measures provide useful supplemental information that
is essential to a proper understanding of the operating results of the
Bank’s core businesses.

Contacts

Doyle M. Thigpen
Chief Financial Officer
(252) 317-2804