Union Bankshares Financial Overview
MORRISVILLE, Vt. — Union Bankshares, Inc. (NASDAQ - UNB) has recently disclosed its financial results for the first quarter. The bank achieved a consolidated net income of $2.5 million for the three-month period, translating to $0.55 per share, a slight increase from $2.4 million, or $0.53 per share, during the same period last year. This growth reflects the bank's strong performance despite ongoing economic challenges.
Balance Sheet Insights
The bank's total assets have reached $1.52 billion as of the end of the quarter, which marks a significant increase of $107.2 million, or 7.6%, from the previous year. Noteworthy is the strong loan demand that surged in 2024 and continued into early 2025, resulting in a remarkable $128.0 million increase in loans, reaching $1.16 billion, including loans held for sale.
Loan Performance
During this period, Union Bank sold qualifying residential loans totaling $25.8 million to the secondary market, up from $21.7 million a year earlier. This reflects the bank's proactive approach in adapting to the growing demand for residential loans.
Deposit and Funding Trends
As of the quarter's end, total deposits stood at $1.18 billion, a modest increase from $1.17 billion in the previous year. This growth included brokered deposits, which accounted for $31.0 million at the end of this quarter. Additionally, there was a notable increase in borrowed funds, with Federal Home Loan Bank advances at $240.7 million compared to $115.7 million the prior year.
Solid Equity Capital
Union Bank's total equity capital has risen to $70.1 million, showing a healthy book value per share of $15.44 as of March 31, 2025, compared to $63.8 million and $14.12 per share the previous year. This growth signifies the bank's commitment to maintaining a strong financial foundation.
Income Statement Highlights
Reflecting the bank's robust performance, consolidated net income increased year-over-year. Interest income surged by $2.7 million, or 17.1%, driven by an increase in yield on earning assets as well as a boost in loan volumes. However, interest expenses also saw a rise due to elevated rates on deposits and wholesale funding.
Noninterest Income and Expenses
In terms of noninterest income, there was a decrease of 4.9% to $2.4 million. This decline was primarily due to the absence of prepayment penalties observed in the first quarter of the previous year. Conversely, noninterest expenses rose by 6.5%, primarily due to salary increases and other operational costs.
Credit Loss Considerations
Union Bank recorded a credit loss expense of $235 thousand for the quarter, a shift from a benefit of $230 thousand reported in the same quarter the previous year. This adjustment supports the bank's growing loan portfolio while ensuring credit quality remains in check.
Dividend Declaration
The Board of Directors has declared a cash dividend of $0.36 per share for shareholders, which will be payable on May 1, 2025. This continued commitment to returning value to shareholders underscores the bank's financial health.
About Union Bankshares, Inc.
Union Bankshares has been a pillar in banking services, providing comprehensive commercial, retail, and municipal banking services across northern Vermont and New Hampshire. The institution operates 18 banking offices and has garnered a strong reputation for its residential lending programs. As a community-focused bank, Union Bank is dedicated to impacting local lives positively, supporting home purchases, assisting small businesses, and maintaining enduring community ties.
Commitment to Community
Since its establishment in 1891, Union Bank has remained steadfast in its commitment to its core values, ensuring that their services align with community needs. Their recognition as an SBA Preferred lender signifies their dedication to supporting small businesses and fostering economic growth in the regions they serve.
Frequently Asked Questions
What were Union Bankshares' earnings for the first quarter?
Union Bankshares reported a consolidated net income of $2.5 million for the first quarter, up from $2.4 million the previous year.
How much was the declared dividend per share?
The Board of Directors declared a cash dividend of $0.36 per share for the quarter.
What is the current state of loan demand for Union Bank?
Loan demand has remained strong, with Union Bank experiencing a significant increase in loans in 2024 and early 2025.
How does Union Bank's equity capital look?
As of March 31, 2025, Union Bank's total equity capital stood at $70.1 million, reflecting a healthy financial position.
What is Union Bank's commitment to the community?
Union Bank is committed to enhancing community welfare through its services, aiming to support home ownership and small businesses while contributing to local initiatives.
