Union Bankshares Announces Earnings for the three and six months ended June 30, 2025 and Declares Quarterly Dividend

Rhea-AI Summary

Union Bankshares (NASDAQ:UNB) reported strong Q2 2025 financial results and declared a quarterly dividend. The company's net income rose 18.6% to $2.4 million ($0.53 per share) compared to $2.0 million ($0.45 per share) in Q2 2024.

Total assets increased 5.9% to $1.48 billion, primarily driven by loan growth of 9.8% reaching $1.11 billion. The bank maintained strong asset quality with minimal past due loans. Total deposits grew to $1.10 billion, and the company declared a quarterly cash dividend of $0.36 per share, payable August 7, 2025.

The bank's book value per share improved to $15.66 from $14.16 year-over-year, while net interest income increased 10.1% despite higher interest expenses.

Positive

• Net income increased 18.6% year-over-year to $2.4 million in Q2 2025
• Total assets grew 5.9% to $1.48 billion with strong loan growth of 9.8%
• Strong asset quality maintained with minimal past due loans and net recoveries
• Book value per share improved to $15.66 from $14.16 year-over-year
• Net interest income increased 10.1% despite higher funding costs

Negative

• Interest expenses increased 17.1% to $8.3 million due to higher deposit rates
• Noninterest expenses rose 7.2% to $10.5 million driven by higher personnel costs
• Accumulated other comprehensive loss of $31.2 million impacts total equity capital

Insights

Banking Financial Analyst

Union Bankshares reported solid Q2 earnings growth with improved loan portfolio and strong asset quality despite challenging rate environment.

Union Bankshares delivered $2.4 million in quarterly net income (18.6% year-over-year increase) with earnings per share of $0.53 compared to $0.45 in Q2 2024. This performance reflects the bank's ability to grow its loan portfolio and maintain quality amid economic uncertainty.

The bank's total assets grew to $1.48 billion, up 5.9% year-over-year, primarily driven by impressive loan growth of 9.8% to reach $1.11 billion. Notably, the bank maintained strong asset quality with minimal past due loans and even recorded net recoveries of $5,000 for the quarter.

Union's net interest income increased by 10.1% year-over-year, demonstrating effective balance sheet management in a challenging interest rate environment. Interest income rose 13.1% to $18.7 million, outpacing the 17.1% increase in interest expenses of $8.3 million.

Secondary market activity remained robust with $31 million in qualifying residential loans sold during Q2, up from $19.3 million in the same period last year, showing the bank's ability to generate fee income through loan origination and sales.

Credit loss provisions decreased to $221,000 from $388,000 year-over-year, suggesting improved confidence in the loan portfolio despite economic uncertainty. The board declared a quarterly dividend of $0.36 per share, maintaining its commitment to shareholder returns.

The bank's book value per share increased to $15.66 from $14.16 a year ago, representing solid value creation for shareholders. However, the accumulated other comprehensive loss of $31.2 million (though improved from $35.2 million a year ago) reflects ongoing challenges in the investment securities portfolio, likely due to interest rate impacts.

Expenses increased 7.2% year-over-year, primarily in personnel costs, signaling investments in human capital that may support future growth initiatives but could pressure efficiency ratios if not managed carefully.

MORRISVILLE, VT., July 16, 2025 (GLOBE NEWSWIRE) -- Union Bankshares, Inc. (NASDAQ - UNB) today announced results for the three and six months ended June 30, 2025 and declared a regular quarterly cash dividend. Consolidated net income for the three months ended June 30, 2025 was $2.4 million, or $0.53 per share, compared to $2.0 million, or $0.45 per share, for the same period in 2024, and $4.9 million, or $1.08 per share, for the six months ended June 30, 2025, compared to $4.4 million, or $0.98 per share, for the same period in 2024.

Balance Sheet

Total assets were $1.48 billion as of June 30, 2025 compared to $1.40 billion as of June 30, 2024, an increase of $81.9 million, or 5.9%. Loan growth was the primary driver of the increase in total assets with total loans increasing $99.8 million, or 9.8%, to reach $1.11 billion as of June 30, 2025 including $9.0 million in loans held for sale, compared to $1.01 billion as of June 30, 2024, with $6.2 million in loans held for sale. Despite the economic uncertainty in the future, asset quality remains strong with minimal past due loans and net recoveries of $5 thousand and $6 thousand for the three and six months ended June 30, 2025, respectively.

In addition to the balance sheet growth in loans, qualifying residential loans of $31.0 million and $56.8 million were sold to the secondary market for the three and six months ended June 30, 2025, respectively, compared to sales of $19.3 million and $41.0 million for the three and six months ended June 30, 2024, respectively.

Total deposits were $1.10 billion as of June 30, 2025 compared to deposits of $1.05 billion as of June 30, 2024, and included purchased brokered deposits of $65.3 million and $65.0 million for the respective periods. Borrowed funds consisted of Federal Home Loan Bank advances of $270.7 million as of June 30, 2025 compared to $212.1 million as of June 30, 2024. There were also $35.0 million in advances from the Federal Reserve's Bank Term Funding Program outstanding as of June 30, 2024.

The Company had total equity capital of $71.3 million and a book value per share of $15.66 as of June 30, 2025 compared to $64.0 million and a book value of $14.16 per share as of June 30, 2024. 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 June 30, 2025 was $31.2 million compared to $35.2 million as of June 30, 2024.

Income Statement

Consolidated net income was $2.4 million for the second quarter of 2025 compared to $2.0 million for the second quarter of 2024, an increase of $376 thousand, or 18.6%. Interest income increased $2.2 million, or 13.1%, to $18.7 million for the three months ended June 30, 2025 compared to $16.5 million for the three months ended June 30, 2024, due to an increase in yield on earning assets and an increase in volume for the comparison periods. Similarly, interest expense increased $1.2 million, or 17.1%, to $8.3 million for the three months ended June 30, 2025 compared to $7.1 million for the three months ended June 30, 2024 due to an increase in rates paid on customer deposits and to a lesser extent an increase in volumes. As a result of these changes during the comparison periods, net interest income increased $962 thousand, or 10.1%.

Credit loss expense of $221 thousand was recorded for the second quarter of 2025 compared to $388 thousand recorded for the second quarter of 2024. The credit loss expense was primarily related to the growth and mix of the loan portfolio at both June 30, 2025 and June 30, 2024. Management continues to assess the adequacy of the Allowance for Credit Losses quarterly.

Noninterest income was $2.8 million for the three months ended June 30, 2025 and 2024. Noninterest expenses increased $706 thousand, or 7.2%, to $10.5 million for the three months ended June 30, 2025 compared to $9.8 million for the same period in 2024. The increase during the comparison period was due to increases of $311 thousand in salaries and wages, $340 thousand in employee benefits, $2 thousand in occupancy expenses, and $83 thousand in equipment expenses, partially offset by a decrease of $31 thousand in other expenses. Income tax expense was $102 thousand for the three months ended June 30, 2025, an increase of $41 thousand compared to income tax expense of $61 thousand for the three months ended June 30, 2024.

Dividend Declared

The Board of Directors declared a cash dividend of $0.36 per share for the quarter payable August 7, 2025 to shareholders of record as of July 26, 2025.

About Union Bankshares, Inc.

Union Bankshares, Inc., headquartered in Morrisville, Vermont, is the bank holding company parent of Union Bank, which provides commercial, retail, and municipal banking services, as well as, wealth management services throughout northern Vermont and New Hampshire. Union Bank operates 18 banking offices, three loan centers, and multiple ATMs throughout its geographical footprint.

Since 1891, Union Bank has helped people achieve their dreams of owning a home, saving for retirement, starting or expanding a business and assisting municipalities to improve their communities. 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 lives of low to moderate home buyers. Union Bank is consistently one of the top Vermont Housing Finance Agency mortgage originators and has also been designated as an SBA Preferred lender for its participation in small business lending. Union Bank's employees contribute to the communities where they work and reside, serving on non-profit boards, raising funds for worthwhile causes, and giving countless hours in serving our fellow residents. All of these efforts have resulted in Union receiving and "Outstanding" rating for its compliance with the Community Reinvestment Act ("CRA") in its most recent examination. Union Bank is proud to be one of the few independent community banks serving Vermont and New Hampshire and we maintain a strong commitment to our core traditional values of keeping deposits safe, giving customers convenient financial choices and making loans to help people in our local communities buy homes, grow businesses, and create jobs. These values--combined with financial expertise, quality products and the latest technology--make Union Bank the premier choice for your banking services, both personal and business. Member FDIC. Equal Housing Lender.

Forward-Looking Statements

Statements made in this press release that are not historical facts are forward-looking statements. Investors are cautioned that all forward-looking statements necessarily involve risks and uncertainties, and many factors could cause actual results and events to differ materially from those contemplated in the forward-looking statements. When we use any of the words “believes,” “expects,” “anticipates” or similar expressions, we are making forward-looking statements. The following factors, among others, could cause actual results and events to differ from those contemplated in the forward-looking statements: uncertainties associated with general economic conditions; changes in the interest rate environment; inflation; political, legislative or regulatory developments; acts of war or terrorism; the markets' acceptance of and demand for the Company's products and services; technological changes, including the impact of the internet on the Company's business and on the financial services market place generally; the impact of competitive products and pricing; and dependence on third party suppliers. For further information, please refer to the Company's reports filed with the Securities and Exchange Commission at www.sec.gov or on our investor page at www.ublocal.com.

Contact: David S. Silverman
(802) 888-6600

FAQ

What was Union Bankshares (UNB) earnings per share for Q2 2025?

Union Bankshares reported earnings of $0.53 per share for Q2 2025, compared to $0.45 per share in Q2 2024, representing an increase of 17.8%.

How much is Union Bankshares' (UNB) quarterly dividend for Q3 2025?

Union Bankshares declared a quarterly cash dividend of $0.36 per share, payable on August 7, 2025, to shareholders of record as of July 26, 2025.

What was Union Bankshares' (UNB) loan growth in Q2 2025?

Union Bankshares' total loans increased by $99.8 million or 9.8% to reach $1.11 billion as of June 30, 2025, compared to $1.01 billion in the previous year.

What is Union Bankshares' (UNB) book value per share as of Q2 2025?

Union Bankshares' book value per share was $15.66 as of June 30, 2025, an increase from $14.16 per share as of June 30, 2024.

How much were Union Bankshares' (UNB) total deposits in Q2 2025?

Union Bankshares reported total deposits of $1.10 billion as of June 30, 2025, compared to $1.05 billion as of June 30, 2024, including $65.3 million in brokered deposits.