Union Bankshares Financial Performance Highlights
Union Bankshares, Inc. (NASDAQ - UNB) has recently reported a notable increase in earnings for the period ending September 30, 2025, showcasing its resilience in a fluctuating economic landscape. The company achieved consolidated net income of $3.4 million for the third quarter, reflecting a substantial rise from the previous year’s earnings of $1.3 million. For the nine-month period, net income reached $8.3 million, up from $5.8 million the year prior, illustrating a successful year for the bank.
Growth in Assets and Loans
As of the end of September 2025, Union Bank’s total assets grew to $1.57 billion, an increase from $1.52 billion in 2024. This growth is attributed primarily to a strong performance in loans, which rose by 5.1% to $1.18 billion, compared to $1.12 billion in the same period the previous year. Investment securities also saw a positive trend, with a 6.4% increase, reaching $262.4 million, driven by strategic purchasing activities. However, there was a notable reduction of 28.6% in federal funds sold and overnight deposits, reflecting a keen focus on liquidity management.
Asset Quality and Risk Management
The quality of assets remains robust despite ongoing economic uncertainties. The allowance for credit losses on loans increased by 14.0% due to proactive risk management strategies and the growth of the loan portfolio. The management team remains committed to monitoring credit risk exposure rigorously, ensuring that reserves are adjusted as necessary based on the evolving economic indicators.
Deposits and Stockholder’s Equity
Union Bank's total deposits also witnessed growth, reaching $1.19 billion, a slight increase from $1.17 billion in the previous year. This number includes brokered deposits which fluctuated between $65.3 million and $80.0 million across the respective periods. Furthermore, borrowed funds, particularly those from the Federal Home Loan Bank, increased from $230.7 million to $270.8 million year over year.
Strengthening Financials
The bank’s stockholder equity has also seen improvement, with book value per share climbing 6.1% to $16.95 as of September 30, 2025. Retained earnings increased by 5.3% to $95.1 million, supported in part by common stock sales under a previously announced equity distribution agreement. The proactive measures of the bank have led to a healthy balance sheet, with accumulated other comprehensive loss reflecting prudent management of asset valuations.
Income Statement Overview
For the third quarter of 2025, net interest income rose to $11.2 million, marking an 18.3% increase from $9.4 million in the equivalent quarter of 2024. This uplift is attributed to a combination of increased yields on earning assets and higher loan volumes. Interest expenses also slightly increased to $8.1 million, a rise attributable to rising rates on customer deposits. Credit loss expense was recorded at $313 thousand, down from $425 thousand the year before, further signaling effective management of the loan portfolio.
Increasing Noninterest Income and Expenses
Noninterest income saw an increase as well, reaching $3.4 million compared to $2.9 million in the same period last year. However, noninterest expenses also grew, with an increase of $934 thousand reaching a total of $10.3 million. This rise stemmed from higher salaries and wages, along with increased costs in other operational areas. Lastly, the income tax expense noted a significant increase, reflecting improved profitability.
Declaration of Cash Dividend
The Board of Directors of Union Bankshares declared a cash dividend of $0.36 per share for the current quarter. This dividend is payable on a specified date to shareholders registered by the fall of October. This declaration emphasizes the company’s commitment to shareholder returns amid its financial growth.
CEO's Insights
David S. Silverman, President & CEO of Union Bankshares, expressed satisfaction with the institution's performance, attributing the results to a disciplined approach to asset growth, expense management, and commitment to customer trust. His positive outlook reflects the bank's operational resilience and strategic focus.
About Union Bankshares
Union Bankshares, Inc. is recognized as a pivotal financial institution, serving clients across commercial, retail, and municipal banking sectors. Operating from its headquarters in Morrisville, Vermont, it maintains a substantial presence in northern Vermont and New Hampshire with multiple banking offices and ATMs. The bank prides itself on community involvement and supporting local residents through various services aimed at fulfilling their financial aspirations.
Community Commitment
With a history dating back to 1891, Union Bank is known for its commitment to exceptional service, particularly in residential lending, and has earned accolades for its positive contributions to the community. Its dedication to ethical banking practices, coupled with robust financial products and the infusion of modern technology, positions Union Bank as a leader in the region's banking landscape.
Frequently Asked Questions
What financial results did Union Bankshares announce?
Union Bankshares reported a net income of $3.4 million and $8.3 million for the third quarter and nine months ending September 30, 2025, respectively.
How has Union Bank’s loan portfolio changed?
The bank's loans grew by 5.1%, reaching $1.18 billion as of September 30, 2025, highlighting the institution’s growth strategy.
What is the newly declared dividend?
Union Bankshares declared a cash dividend of $0.36 per share, payable to shareholders registered by October 25, 2025.
Who is the President & CEO of Union Bank?
David S. Silverman serves as the President & CEO and has emphasized the bank's strong financial performance and community trust.
What services does Union Bank offer to its customers?
Union Bank provides a range of banking services including commercial, retail, municipal banking, and wealth management services.
