UB Bancorp, the parent company of Union Bank, reported third-quarter earnings on Thursday that showed a 58 percent drop in net income from third-quarter 2019.

For the third quarter, the bank reported a net income of $793,000, or $0.13 per basic common share, versus $1.9 million, or $0.32 per basic common share, earned for the same period in 2019. The bank noted that its earnings performance in the quarter “was hampered by an increase in provisions for loan losses and lower yields” on its earning asset base.

During the quarter, UB Bancorp set aside $2.1 million in loan loss provisions.

“Given the business uncertainty created by the Covid-19 pandemic, including historically low interest rates, the operating environment for financial institutions remains challenging. However, I could not be more pleased with the results of our Company for the quarter and year-to-date,” CEO Rob Jones said in the release.

As of Sept. 30, UB Bancorp had $970.9 million in total assets, up $149.4 million, or 18.2 percent, compared to the $821.3 million held on Dec. 31.

Elsewhere, the Board of Directors declared a semi-annual cash dividend to shareholders of 10 cents per share on UB Bancorp’s common stock. This cash dividend is payable to on Dec. 31 to shareholders of record at the close of business on Dec. 15.

UB Bancorp and Union Bank are headquartered in Greenville, North Carolina and operate 15 branches located in 12 counties throughout Eastern and Central North Carolina.

Shares of UB Bancorp (UBNC) closed at $10.07 Thursday.