We are pleased to report a summary of the financial results for Union Bankshares, Inc., for the three months ended September 30, 2024. Consolidated net income was $1.3 million, compared to $2.5 million, for the same period in 2023, and $5.8 million, for the nine months ended September 30, 2024, compared to $8.2 million, for the same period in 2023. The decrease in earnings for the comparison periods was primarily due to the impact of a strategic balance sheet repositioning executed during the third quarter. The Company’s wholly owned subsidiary, Union Bank, executed the sale of $38.8 million in book value of its lower-yielding available-for-sale debt securities for a pre-tax realized loss of $1.3 million, which was recorded in the third quarter of 2024. The proceeds of the securities sale were invested in higher yielding securities and loans. The loss is projected to be earned back in approximately 12 months from the newly acquired higher yielding assets. Total assets were $1.52 billion as of September 30, 2024, compared to $1.40 billion as of September 30, 2023. Loan growth was the primary driver of the increase in total assets with total loans reaching $1.13 billion as of September 30, 2024, compared to $1.03 billion as of September 30, 2023. Asset quality remains strong with minimal past due loans and net recoveries of $15 thousand thus far this year. Loan demand has remained strong during the third quarter of 2024 with growth in the residential, commercial, and municipal portfolios, despite higher interest rates a low residential inventory. Qualifying residential loans of $76.1 million were sold during the first nine months of 2024 compared to sales of $54.2 million for the first nine months of 2023. Total deposits were $1.17 billion as of September 30, 2024 and include $80.0 million of purchased brokered deposits compared to deposits of $1.22 billion as of September 30, 2023, with $153.0 million of purchased deposits. Federal Home | Loan Bank advances of $230.7 million were outstanding as of September 30, 2024, compared to $90.7 million outstanding as of September 30, 2023. In addition to borrowings from the Federal Home Loan Bank, $10.0 million in advances from the Federal Reserve’s Bank Term Funding Program were outstanding as of September 30, 2024.. The Company had total equity capital of $72.3 million and a book value per share of $15.98 as of September 30, 2024, compared to $49.2 million and a book value of $10.92 per share as of September 30, 2023. Total equity capital is reduced by accumulated other comprehensive loss as it relates to the fair market value adjustment for investment securities. Accumulated other comprehensive loss as of September 30, 2024, was $26.8 million compared to $47.1 million as of September 30, 2023. The reduction in other comprehensive loss is mainly attributable to the decrease in market interest rates between 2023 and 2024, causing the market value of our remaining securities portfolio to increase. We are nearing the end of a successful Fall Foliage tourism season. We have anecdotal evidence that the season was a tourism standout throughout our market area, though foliage may have been a bit muted compared to other years. The economy in the markets we serve continues to be strong with the unemployment rate remaining low and the housing market remaining tight. Our region remains a great place to live and do business. The Board of Directors is pleased to declare a cash dividend of $0.36 per share for the quarter payable November 7, 2024, to shareholders of record as of October 26, 2024. |
Union Bankshares, Inc. operates as the holding company for Union Bank, which provides commercial, retail and municipal banking services and asset management services throughout northern Vermont and New Hampshire. Union Bank was founded in 1891 in Morrisville, Vermont, where the Bank’s and its holding company’s headquarters are located. Union Bank operates 19 banking offices, 2 loan centers and several ATMs throughout its geographical footprint.
Union Bank has been helping people buy homes and local businesses create jobs in area communities since opening its doors over 130 years ago. Union Bank has earned an exceptional reputation for residential lending programs and has been recognized by the US Department of Agriculture, Rural Development for the positive impact made in the lives of first time home buyers. Union Bank is consistently one of the top Vermont Housing Finance Agency mortgage originators. Additionally, Union Bank has also been designated as an SBA Preferred lender for its participation in small business lending. Union Bank has received an "Outstanding" rating for its compliance with the Community Reinvestment Act (CRA). An institution in this group has an excellent record of helping to meet the credit needs of its assessment area, particularly in low-and moderate income neighborhoods, in a manner consistent with its resources and capabilities. |
