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Highlands Union Bank

Abingdon, VA · Cert 26191

FDIC · 14 branches

Q3 2019

Board Package

Performance Trends and Peer Comparison

Part 1Performance Trends, own institution only2
Part 2Peer Comparison, not published for this institution and quartern/a

Basis

Quarter: Q3 2019, the quarter ended September 30, 2019, on both parts.

Income statement: year to date as filed, annualized, on both parts.

Balance sheet: as filed at quarter end.

Peer group

No peer standings are published for this institution and quarter.

Peer groups below the disclosure floor are suppressed.

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas.

CallReports · callreports.ai · Board PackageGenerated 2026-10-11

Highlands Union Bank

Abingdon, VA · Cert 26191

FDIC · 14 branches

Q3 2019

$575.3MAssets
$453.5MLoans
$511.2MDeposits
$61.0MEquity
Loan mix
84%RE $347.9M13%C&I $53.4M3%Consumer $11.6MQ3 2018Q3 2019
Deposit mix
70%Interest-bearing $356.0M30%Noninterest $155.2MQ3 2018Q3 2019

NIM

3.79%Q3 ’174.03%Q3 ’184.32%Q3 ’19+11%+2%

Non-interest income vs. expense

3.17%Q3 ’173.19%Q3 ’183.09%Q3 ’19+17%-2%

Market Position · Kingsport-Bristol, TN-VA · 2019 SOD (annual) · 8.9% share · #5 of 27 inst. · $0.4B of $4.3B

23.7% Washington
17.0% Bristol (City)
10.7% Smyth
2.5% Watauga

Executive Summary

  • Earnings: ROA of 0.56%, down 7 bps year over year; NIM at 3.56%.
  • Asset quality: problem loans at 1.18% of loans (+15 bps YoY), with net charge-offs at 0.50%.
  • Capital: tier 1 leverage ratio of 9.81%, up 67 bps from a year ago.
  • Funding: loans stand at 88.71% of deposits as of Q3 2019.

Financial Results

Return on Assets (YTD, annualized)

0.56%-7 bps YoY

Net Interest Margin (YTD, annualized)

3.56%+6 bps YoY

Efficiency Ratio (YTD, annualized)

74.80%-275 bps YoY

Tier 1 Leverage Ratio

9.81%+67 bps YoY

Year to date, annualized, through each quarter.

MetricQ3 2018Q4 2018Q1 2019Q2 2019Q3 2019YoY ΔTrend
Earnings
Return on Assets0.63%0.64%0.71%0.54%0.56%-7 bps
Return on Equity6.93%6.99%7.50%5.66%5.69%-124 bps
Net Interest Margin3.51%3.45%3.41%3.35%3.56%+6 bps
Efficiency Ratio77.55%77.56%75.53%75.24%74.80%-275 bps
Non-Interest Burden2.56%2.52%2.42%2.37%2.50%-6 bps
Growth
Asset Growth (YoY)-1.16%-0.41%2.76%4.78%-3.11%-195 bps
Loan Growth (YoY)3.98%2.92%2.52%2.16%-0.15%-412 bps
Deposit Growth (YoY)-1.26%0.77%2.02%3.99%3.12%+438 bps
Asset Quality
Nonperforming Loans / Loans1.03%1.34%1.26%1.20%1.18%+15 bps
Net Charge-Offs / Loans0.08%0.07%0.34%0.47%0.50%+42 bps
Allowance / Loans0.93%0.97%0.92%0.94%0.92%-1 bps
Allowance Coverage of NPLs0.9x0.7x0.7x0.8x0.8x-0.1x
Capital
Tier 1 Leverage Ratio9.14%9.14%9.22%9.19%9.81%+67 bps
Total Risk-Based Capital13.28%13.30%13.90%13.87%14.08%+80 bps
Equity / Assets9.18%9.51%9.51%9.76%10.60%+142 bps
Liquidity & Funding
Loans / Deposits91.61%89.12%85.09%87.11%88.71%-290 bps
Liquid Assets / Assets2.65%3.41%7.60%6.45%2.54%-11 bps
CRE / Total Capitaln/an/an/an/an/an/an/a