Annual report pursuant to Section 13 and 15(d)

SEGMENT REPORTING DISCLOSURES

v2.4.1.9
SEGMENT REPORTING DISCLOSURES
 12 Months Ended
Dec. 31, 2014
SEGMENT REPORTING DISCLOSURES [Abstract]  
SEGMENT REPORTING DISCLOSURES

 

17.SEGMENT REPORTING DISCLOSURES

 

The Company has two reportable segments: a traditional full service community bank segment and a mortgage loan origination business segment. The community bank segment includes one subsidiary bank, which provides loan, deposit, investment, and trust services to retail and commercial customers throughout its 131 retail locations in Virginia.  The mortgage segment includes UMG, which provides a variety of mortgage loan products principally in Virginia, North Carolina, South Carolina, Maryland, and the Washington D.C. metro area.  These loans are originated and sold primarily in the secondary market through purchase commitments from investors, which serves to mitigate the Company’s exposure to interest rate risk.

Profit and loss is measured by net income after taxes including realized gains and losses on the Company’s investment portfolio.  The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies.  Inter-segment transactions are recorded at cost and eliminated as part of the consolidation process.

Both of the Company’s reportable segments are service-based.  The mortgage business is a fee-based business while the bank is driven principally by net interest income.  The bank segment provides a distribution and referral network through its customers for the mortgage loan origination business.  The mortgage segment offers a more limited referral network for the bank segment.

The community bank segment provides the mortgage segment with the short-term funds needed to originate mortgage loans through a warehouse line of credit and charges the mortgage banking segment interest at the one month LIBOR rate plus 1.5% with no floor.  These transactions are eliminated in the consolidation process.  A management fee for operations and administrative support services is charged to all subsidiaries and eliminated in the consolidated totals.

Information about reportable segments and reconciliation of such information to the consolidated financial statements for years ended December 31, 2014, 2013, and 2012 is as follows (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNION BANKSHARES CORPORATION AND SUBSIDIARIES

 

 

 

 

 

 

 

 

 

SEGMENT FINANCIAL INFORMATION

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Community Bank

 

Mortgage

 

Eliminations

 

Consolidated

Year Ended December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$
253,956 

 

$
1,062 

 

$

 -

 

$
255,018 

Provision for loan losses

 
7,800 

 

 

 -

 

 

 -

 

 
7,800 

Net interest income after provision for loan losses

 
246,156 

 

 
1,062 

 

 

 -

 

 
247,218 

Noninterest income

 
51,878 

 

 
10,091 

 

 
(682)

 

 
61,287 

Noninterest expenses

 
222,647 

 

 
16,587 

 

 
(682)

 

 
238,552 

Income (loss) before income taxes

 
75,387 

 

 
(5,434)

 

 

 -

 

 
69,953 

Income tax expense (benefit)

 
19,298 

 

 
(1,936)

 

 

 -

 

 
17,362 

Net income (loss)

$
56,089 

 

$
(3,498)

 

$

 -

 

$
52,591 

Total assets

$
7,354,586 

 

$
51,485 

 

$
(46,900)

 

$
7,359,171 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2013

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$
149,975 

 

$
1,651 

 

$

 -

 

$
151,626 

Provision for loan losses

 
6,056 

 

 

 -

 

 

 -

 

 
6,056 

Net interest income after provision for loan losses

 
143,919 

 

 
1,651 

 

 

 -

 

 
145,570 

Noninterest income

 
27,492 

 

 
11,906 

 

 
(670)

 

 
38,728 

Noninterest expenses

 
120,256 

 

 
17,703 

 

 
(670)

 

 
137,289 

Income (loss) before income taxes

 
51,155 

 

 
(4,146)

 

 

 -

 

 
47,009 

Income tax expense (benefit)

 
14,000 

 

 
(1,487)

 

 

 -

 

 
12,513 

Net income (loss)

$
37,155 

 

$
(2,659)

 

$

 -

 

$
34,496 

Total assets

$
4,170,682 

 

$
63,715 

 

$
(57,826)

 

$
4,176,571 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2012

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$
153,024 

 

$
1,331 

 

$

 -

 

$
154,355 

Provision for loan losses

 
12,200 

 

 

 -

 

 

 -

 

 
12,200 

Net interest income after provision for loan losses

 
140,824 

 

 
1,331 

 

 

 -

 

 
142,155 

Noninterest income

 
24,876 

 

 
16,660 

 

 
(468)

 

 
41,068 

Noninterest expenses

 
119,976 

 

 
13,971 

 

 
(468)

 

 
133,479 

Income (loss) before income taxes

 
45,724 

 

 
4,020 

 

 

 -

 

 
49,744 

Income tax expense (benefit)

 
12,858 

 

 
1,475 

 

 

 -

 

 
14,333 

Net income (loss)

$
32,866 

 

$
2,545 

 

$

 -

 

$
35,411 

Total assets

$
4,081,544 

 

$
187,836 

 

$
(173,515)

 

$
4,095,865