Union Bankshares Reports Q2 2025 Earnings and Dividend News
Union Bankshares, Inc. Earnings Report Overview
Union Bankshares, Inc. (NASDAQ: UNB) recently shared its earnings results for the second quarter of 2025, signaling positive growth for the bank. The financial institution reported a net income of $2.4 million, equivalent to $0.53 per share, showcasing an increase from $2.0 million or $0.45 per share in the same quarter of 2024. Over the first half of 2025, profits reached $4.9 million or $1.08 per share, outpacing the previous year's $4.4 million or $0.98 per share.
Assets and Loan Growth
Union Bank's total assets were valued at $1.48 billion as of June 30, 2025, up from $1.40 billion a year earlier, representing a 5.9% increase. This surge was primarily driven by a notable rise in total loans, which jumped by $99.8 million or 9.8%, reaching $1.11 billion. The bank also maintained strong asset quality, reporting minimal past due loans and net recoveries of $5,000 and $6,000 for the second quarter and the first half, respectively.
Deposits and Borrowings
As of the end of June 2025, total deposits amounted to $1.10 billion, up from $1.05 billion a year ago. This included brokered deposits of $65.3 million compared to $65.0 million during the same period last year. In terms of borrowed funds, the bank's reliance on Federal Home Loan Bank advances increased, totaling $270.7 million as of June 30, 2025, compared to $212.1 million in 2024.
Equity Capital Insights
Union Bank reported total equity capital of $71.3 million, which translates to a book value per share of $15.66 as of mid-2025. This was a significant increase from the $64.0 million capital and a book value per share of $14.16 in 2024. However, accumulated other comprehensive loss related to investment securities adjustments totaled $31.2 million, down from $35.2 million from the previous year.
Income Statement Highlights
The income statement reflected that net interest income rose by $962,000 or 10.1%, driven by a 13.1% increase in interest income that reached $18.7 million for the quarter. Interest expense also grew, increasing by 17.1% to $8.3 million as higher rates impacted customer deposits. Union Bank managed to record a credit loss expense of $221,000, a reduction from the prior year's $388,000, primarily reflecting the blossoming loan portfolio.
Dividend Declaration
In addition to the promising earnings report, the company’s Board of Directors declared a quarterly cash dividend of $0.36 per share, payable to shareholders on August 7, 2025, with a record date of July 26, 2025. This commitment to shareholder returns underscores Union Bank’s solid financial position.
About Union Bankshares, Inc.
Founded in 1891, Union Bankshares, Inc. operates as the parent company of Union Bank, providing various banking services throughout northern regions. With a focus on community-oriented financial solutions, the bank offers retail, commercial, and municipal banking services alongside wealth management options. Union Bank is proud of its strong reputation, particularly in residential lending programs, and has earned numerous accolades for its commitment to supporting local communities.
Community Involvement and Compliance
Union Bank's dedication extends beyond banking. The bank actively engages with its communities, contributing to various nonprofit initiatives and earning a commendable rating for its compliance with the Community Reinvestment Act during its most recent examinations. This reflects its foundational value of producing positive impacts within the communities it serves.
Frequently Asked Questions
1. What financial highlights did Union Bankshares report for Q2 2025?
Union Bankshares reported a net income increase to $2.4 million, while total assets grew to $1.48 billion, primarily driven by a significant loan growth.
2. What was the declared dividend per share for Q2 2025?
The Board of Directors declared a dividend of $0.36 per share, payable on August 7, 2025.
3. How has Union Bank performed compared to the previous year?
Union Bank's financial performance improved significantly with increased net income and total assets compared to Q2 2024.
4. What services does Union Bank primarily offer?
Union Bank offers a range of services including commercial, retail, municipal banking, and wealth management throughout northern Vermont and parts of New Hampshire.
5. How does Union Bank show its commitment to community involvement?
Union Bank engages in community services and has received commendations for compliance with community reinvestment initiatives.
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