Union Bankshares (NASDAQ: UNB) Q1 earnings climb with $0.36 dividend
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Union Bankshares, Inc. reported stronger results for the three months ended March 31, 2026 and declared a regular cash dividend. Net income rose to $3.0 million, or $0.65 per share, up from $2.5 million, or $0.55 per share, a year earlier, helped by higher net interest income, slightly higher noninterest income and a credit loss benefit.
Total assets reached $1.63 billion as of March 31, 2026, compared with $1.52 billion a year earlier, driven by higher Federal funds sold and a larger securities portfolio. Loans grew modestly to $1.18 billion, while the allowance for credit losses on loans was $8.07 million, with management emphasizing continued strong asset quality.
Stockholders’ equity increased to $80.6 million, lifting book value per share by 13.1% to $17.46, supported in part by a smaller accumulated other comprehensive loss on investment securities. The Board declared a quarterly cash dividend of $0.36 per share, payable May 7, 2026 to shareholders of record on April 27, 2026.
Positive
- Profit and book value growth: Q1 2026 net income increased to $3.0 million from $2.5 million, with EPS rising to $0.65 and book value per share up 13.1% to $17.46, indicating stronger earnings and capital levels.
- Dividend maintained: The Board declared a $0.36 per share quarterly cash dividend payable May 7, 2026, signaling continued willingness to return capital to shareholders while growing the balance sheet.
Negative
- None.
Insights
Union Bankshares delivered solid Q1 profit growth and maintained its dividend.
Union Bankshares increased quarterly net income to $3.0 million, up from $2.5 million, as net interest income improved by $1.0 million and credit loss expense shifted to a $325 thousand benefit. Earnings per share rose to $0.65, indicating healthier profitability.
Total assets grew to $1.63 billion as of March 31, 2026, with management reallocating into investment securities, which climbed to $315.6 million. Equity rose to $80.6 million and book value per share increased 13.1% to $17.46, helped by a smaller accumulated other comprehensive loss on securities.
The Board declared a quarterly dividend of $0.36 per share, continuing capital returns alongside balance sheet growth. Noninterest expenses rose 9.8% to $10.8 million, which investors may compare against future quarters as the company manages growth, costs and credit quality.
8-K Event Classification
3 items: 2.02, 8.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net income Q1 2026: $3.0 million
Net income Q1 2025: $2.5 million
Earnings per share Q1 2026: $0.65 per share
+5 more
8 metrics
Net income Q1 2026
$3.0 million
Three months ended March 31, 2026
Net income Q1 2025
$2.5 million
Three months ended March 31, 2025 comparison
Earnings per share Q1 2026
$0.65 per share
Three months ended March 31, 2026
Total assets
$1.63 billion
As of March 31, 2026
Total loans
$1.18 billion
As of March 31, 2026; 1.3% growth
Total deposits
$1.20 billion
As of March 31, 2026 vs $1.81 billion in 2025
Quarterly dividend
$0.36 per share
Payable May 7, 2026 to holders of record April 27, 2026
Book value per share
$17.46
As of March 31, 2026; up 13.1% from $15.44
Key Terms
net interest income, allowance for credit losses, accumulated other comprehensive loss, brokered deposits, +2 more
6 terms
net interest income financial
"Results increased $503 thousand for the comparison periods due to increases of $1.0 million net interest income"
Net interest income is the difference between the interest a financial institution earns on loans and investments and the interest it pays on deposits and borrowings. It matters to investors because it is a primary source of profit for banks and similar firms — like the gross margin on a store’s trade — and changes with loan growth, deposit costs and interest rates, so it signals core earning power and sensitivity to rate moves.
allowance for credit losses financial
"The allowance for credit losses on loans decreased 0.5%, to $8.07 million as of March 31, 2026"
Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.
accumulated other comprehensive loss financial
"Accumulated other comprehensive loss as it relates to the fair market value adjustment for investment securities as of March 31, 2026 was $27.7 million"
Accumulated other comprehensive loss is the running negative total of certain gains and losses that companies record outside their regular profit-and-loss statement, such as changes in the value of some investments, pension adjustments, or currency translation effects. It matters to investors because it reduces shareholders’ equity and reveals economic swings that haven’t affected reported net income yet — like a side ledger showing pending ups and downs that could influence future cash flow or balance-sheet strength.
brokered deposits financial
"Total deposits were $1.20 billion ... and included purchased brokered deposits of $31.8 million"
Brokered deposits are large sums of customer cash placed at a bank through a third-party intermediary that shops around for the best interest rate, like a broker assembling a big bucket of savings and directing it to a bank. They matter to investors because they can quickly change a bank’s funding level and cost — providing fast liquidity but also adding volatility and regulatory scrutiny that can affect a bank’s stability and profitability.
Federal Home Loan Bank advances financial
"Borrowed funds consisted of Federal Home Loan Bank advances of $311.0 million as of March 31, 2026"
Federal Home Loan Bank advances are loans that member banks and similar lenders borrow from a regional Federal Home Loan Bank, typically backed by the borrower’s assets and used for short- or long-term funding. For investors, these advances reveal how much a lender relies on wholesale borrowing to fund loans and operations—similar to watching a company tap a line of credit—and changes in advance levels or rates can signal shifts in liquidity, funding cost and balance-sheet risk.
Community Reinvestment Act regulatory
"Union receiving and "Outstanding" rating for its compliance with the Community Reinvestment Act ("CRA")"
A federal law that requires banks to help meet the credit needs of the neighborhoods where they operate, especially low- and moderate-income areas. It matters to investors because regulators grade banks on this performance like a report card, and those grades can influence approvals for mergers, regulatory scrutiny, reputational risk and future lending patterns—factors that affect a bank’s growth prospects and stock value.
Earnings Snapshot
Net income: $3.0 million
Q1 2026
Net income
$3.0 million
+$0.5 million vs Q1 2025
Earnings per share
$0.65
+$0.10 vs Q1 2025
Interest income
$19.5 million
+$1.2 million vs Q1 2025
Noninterest income
$2.5 million
+$0.1 million vs Q1 2025
Noninterest expenses
$10.8 million
+$0.958 million vs Q1 2025
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 15, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction | (Commission | (IRS Employer | |||||||||
| of incorporation) | File Number) | Identification Number) | |||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
| , | |||||||||||
Registrant's telephone number, including area code: (802 ) 888-6600
(Former name or former address, if changed since last report)
Not applicable
Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to section 12(b) of the Act:
| Common Stock, $2.00 par value | UNB | Nasdaq Stock Market | ||||||||||||
| (Title of class) | (Trading Symbol) | (Exchanges registered on) | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition
As provided in General Instruction B.2 to Form 8-K, the information furnished in this Item 2.02 and in Exhibit 99.1 hereto shall not be deemed filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing with the Securities and Exchange Commission, except as shall be expressly provided by specific reference in such filing.
On April 15, 2026, Union Bankshares, Inc. issued a press release, a copy of which is furnished with this Form 8-K as Exhibit 99.1, announcing net income and net income per share for the first quarter ended March 31, 2026, as well as the declaration of a regular quarterly cash dividend.
Item 8.01. Other Events
(a)Declaration of Regular Quarterly Cash Dividend
On April 15, 2026 the Board of Directors of Union Bankshares, Inc. declared a quarterly cash dividend of $0.36 per share. The dividend is payable on May 7, 2026 to shareholders of record as of April 27, 2026.
Item 9.01. Financial Statements and Exhibits
(d)Exhibits
The following Exhibit, referred to in Item 2.02 of the Report is furnished, not filed; herewith:
Exhibit 99.1 Union Bankshares, Inc. Press Release dated April 15, 2026, announcing a regular quarterly dividend and first quarter ended March 31, 2026 net income and net income per share.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Union Bankshares, Inc. | |||||
| April 15, 2026 | /s/ David S. Silverman | ||||
| David S. Silverman | |||||
| Chief Executive Officer | |||||
| April 15, 2026 | /s/ Karyn J. Hale | ||||
| Karyn J. Hale | |||||
| Chief Financial Officer | |||||
EXHIBIT INDEX
99.1 | Union Bankshares, Inc. Press Release dated April 15, 2026, announcing a regular quarterly dividend and first quarter ended March 31, 2026 net income and net income per share. | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
Exhibit 99.1
 | For Immediate Release Contact: David S. Silverman (802) 888-6600 | ||||
Union Bankshares Announces Earnings for the three months ended March 31, 2026
and Declares Quarterly Dividend
Morrisville, VT April 15, 2026 - Union Bankshares, Inc. (NASDAQ - UNB) today announced results for the three months ended March 31, 2026 and declared a regular quarterly cash dividend. Consolidated net income for the three months ended March 31, 2026 was $3.0 million, or $0.65 per share, compared to $2.5 million, or $0.55 per share, for the same period in 2025.
Balance Sheet
Total assets reached $1.63 billion as of March 31, 2026 from $1.52 billion as of March 31, 2025 representing growth of $100.3 million, or 6.6%. The increase was driven by increases in Federal funds sold and the securities portfolio. Federal funds sold and overnight deposits were $25.3 million as of March 31, 2026 compared to $8.9 million as of March 31, 2025. Investment securities increased to $315.6 million as of March 31, 2026 compared to $249.6 million as of March 31, 2025, an increase of $66.0 million, or 26.4% due to a strategic decision to pre-invest future cash flows from the portfolio during the fourth quarter of 2025. Total loan growth was modest during the comparison periods at $15.8 million or 1.3%, with outstanding balances of $1.18 billion as of March 31, 2026. Sales of qualifying mortgage loans were $24.1 million for the three months ended March 31, 2026 compared to $25.8 million for the three months ended March 31, 2025.
The allowance for credit losses on loans decreased 0.5%, to $8.07 million as of March 31, 2026 compared to $8.11 million as of March 31, 2025. Asset quality remains strong and management continues to assess credit risk exposure and adjusts reserves as needed. Management believes the current credit loss expense is appropriate given the composition and performance of the loan portfolio, and continues to monitor macroeconomic indicators that may impact borrower behavior and repayment capacity.
Total deposits were $1.20 billion as of March 31, 2026 compared to $1.81 billion as of March 31, 2025, and included purchased brokered deposits of $31.8 million as of March 31, 2026 and $30.5million as of March 31, 2025. Borrowed funds consisted of Federal Home Loan Bank advances of $311.0 million as of March 31, 2026 compared to $240.7 million as of March 31, 2025.
Stockholders' equity increased to $80.6 million as of March 31, 2026 compared to $70.1 million as of March 31, 2025, resulting in an increase in book value per share of 13.1% to $17.46 as of March 31, 2026 compared to $15.44 as of March 31, 2025. Accumulated other comprehensive loss as it relates to the fair market value adjustment for investment securities as of March 31, 2026 was $27.7 million compared to $31.4 million as of March 31, 2025 which also contributed to the improvement in book value per share.
Income Statement
Consolidated net income was $3.0 million for the three months ended March 31, 2026, compared to $2.5 million for the same period in 2025. Results increased $503 thousand for the comparison periods due to increases of $1.0 million net interest income and $54 thousand in noninterest income, and a decrease of $560 thousand in credit loss expense, partially offset by increases of $958 thousand in noninterest expenses and $178 thousand in income tax expense.
Interest income was $19.5 million for the three months ended March 31, 2026 compared to $18.3 million for the three months ended March 31, 2025, an increase of $1.2 million, or 6.8%. The increase is attributable to a larger earning asset base and higher interest rates on those assets. Interest expense increased $210 thousand, or 2.6%, to $8.2 million for the three months ended March 31, 2026 compared to $8.0 million for the three months ended March 31, 2025 The increase is primarily due to increases in volume for customer deposits and borrowed funds and to a lesser extent an increase in average rates paid on these funding sources. These changes resulted in improvement in net interest income of $1.0 million, or 10.0% for the comparison periods.
Credit loss benefit of $325 thousand was recorded for the three months ended March 31, 2026 compared to credit loss expense of $235 thousand for the three months ended March 31, 2025. The reduction in credit loss expense during the comparison periods was primarily related to the size and mix of the loan portfolio at March 31, 2026.
Noninterest income was $2.5 million for the three months ended March 31, 2026 compared to $2.4 million for the three months ended March 31, 2025. The sales of qualifying residential mortgages resulted in net gains of $350 thousand for the three months ended March 31, 2026 compared to net gains of $389 thousand for the three months ended March 31, 2025.
Noninterest expenses increased $958 thousand, or 9.8%, to $10.8 million for the three months ended March 31, 2026 compared to $9.8 million for the three months ended March 31, 2025. The increase during the comparison periods was due to increases of $486 thousand in salaries and wages, $184 thousand in employee benefits, $61 thousand in equipment expenses, and $232 thousand in other expenses. Income tax expense was $328 thousand for the three months ended March 31, 2026, an increase of $178 thousand compared to $150 thousand for the three months ended March 31, 2025.
Dividend Declared
The Board of Directors declared a cash dividend of $0.36 per share for the quarter payable May 7, 2026 to shareholders of record as of April 27, 2026.
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.