Union Bankshares (NASDAQ: UNB) grows Q2 profit and lifts book value, declares dividend
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Union Bankshares, Inc. reported second‑quarter 2026 net income of $2.9 million, or $0.61 per share, up from $2.4 million, or $0.53 per share, a year earlier. For the six months ended June 30, 2026, net income was $5.9 million, or $1.26 per share, compared with $4.9 million, or $1.08 per share, in 2025. Results benefited from higher net interest income, increased noninterest income including a $380 thousand gain on a branch property sale, and lower credit loss expense, partly offset by higher salaries and other operating costs and higher income tax expense.
Total assets reached $1.56 billion as of June 30, 2026, up 5.3% from $1.48 billion a year earlier, driven by growth in investment securities and loans. Loans totaled $1.12 billion, while deposits were $1.09 billion and borrowed funds $337.1 million. The allowance for credit losses on loans was $8.4 million, and management described asset quality as strong. Stockholders’ equity increased to $90.4 million, with book value per share rising 16.7% to $18.28, aided by common stock sales and a smaller accumulated other comprehensive loss on securities. The board declared a $0.36 per share quarterly cash dividend, payable August 6, 2026 to shareholders of record on July 27, 2026.
Positive
- Q2 2026 net income rose to $2.9 million from $2.4 million, with earnings per share increasing to $0.61 from $0.53, reflecting stronger profitability.
- Book value per share increased 16.7% to $18.28 as of June 30, 2026, supported by higher equity and reduced accumulated other comprehensive loss.
- Total assets grew to $1.56 billion, up 5.3% year over year, driven by expansion in investment securities and the loan portfolio.
Negative
- None.
Insights
Analyzing...
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
Q2 2026 net income: $2.9 million
Q2 2026 earnings per share: $0.61
Six‑month 2026 net income: $5.9 million
+5 more
8 metrics
Q2 2026 net income
$2.9 million
Three months ended June 30, 2026
Q2 2026 earnings per share
$0.61
Three months ended June 30, 2026, basic EPS
Six‑month 2026 net income
$5.9 million
Six months ended June 30, 2026
Total assets
$1.56 billion
As of June 30, 2026
Loans outstanding
$1.12 billion
Loans as of June 30, 2026
Book value per share
$18.28
As of June 30, 2026, up 16.7% year over year
Quarterly dividend
$0.36 per share
Payable August 6, 2026 to shareholders of record July 27, 2026
Allowance for credit losses
$8.4 million
Allowance for credit losses on loans as of June 30, 2026
Key Terms
allowance for credit losses, brokered deposits, accumulated other comprehensive loss, Community Reinvestment Act, +1 more
5 terms
allowance for credit losses financial
"The allowance for credit losses on loans was $8.4 million as of June 30, 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.
brokered deposits financial
"included purchased brokered deposits of $43.8 million as of June 30, 2026"
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.
accumulated other comprehensive loss financial
"Accumulated other comprehensive loss as it relates to the fair market value adjustment"
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.
Community Reinvestment Act regulatory
"resulted in Union receiving an "Outstanding" rating for its compliance with the Community Reinvestment Act"
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.
standby letters of credit financial
"Standby letters of credit were $1,772,000 and $1,632,000 at June 30, 2026 and 2025"
A standby letter of credit is a bank’s written promise to pay a beneficiary if the customer fails to meet a contractual obligation, acting like a backup insurance policy that kicks in only if the borrower doesn’t pay or perform. Investors care because it reduces payment risk for counterparties and can create a potential obligation for the borrower’s finances, signaling how much external credit support or hidden risk a company has.
Earnings Snapshot
Q2 2026 net income: $2.9 million
three and six months ended June 30, 2026
Q2 2026 net income
$2.9 million
from $2.4 million in Q2 2025
Q2 2026 earnings per share
$0.61
from $0.53 in Q2 2025
Six‑month 2026 net income
$5.9 million
from $4.9 million for the six months ended June 30, 2025
Total assets
$1.56 billion
from $1.48 billion as of June 30, 2025
FAQ
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): July 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 July 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 second quarter and six months ended June 30, 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 July 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 August 6, 2026 to shareholders of record as of July 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 July 15, 2026, announcing a regular quarterly dividend and second quarter and six months ended June 30, 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. | |||||
| July 15, 2026 | /s/ Jeffrey F. Weidley | ||||
| Jeffrey F. Weidley | |||||
| Chief Executive Officer | |||||
| July 15, 2026 | /s/ Karyn J. Hale | ||||
| Karyn J. Hale | |||||
| Chief Financial Officer | |||||
EXHIBIT INDEX
99.1 | Union Bankshares, Inc. Press Release dated July 15, 2026, announcing a regular quarterly dividend and second quarter and six months ended June 30, 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: Investor Relations (802) 888-0982 | ||||
Union Bankshares Announces Earnings for the three and six months ended June 30, 2026
and Declares Quarterly Dividend
Morrisville, VT July 15, 2026 - Union Bankshares, Inc. (NASDAQ - UNB) today announced results for the three and six months ended June 30, 2026 and declared a regular quarterly cash dividend. Consolidated net income for the three months ended June 30, 2026 was $2.9 million, or $0.61 per share, compared to $2.4 million, or $0.53 per share, for the same period in 2025, and $5.9 million, or $1.26 per share, for the six months ended June 30, 2026, compared to $4.9 million, or $1.08 per share, for the same period in 2025.
President and Chief Executive Officer Jeffrey F. Weidley commented on the results:
"Union Bankshares delivered strong second quarter and year-to-date results, reflecting the strength of our balance sheet, disciplined execution, and the dedication of our employees. Growth in net interest income, improved earnings, and continued increases in book value demonstrate the resilience of our community banking model. As we embark on an important leadership transition, I am confident that Union Bank is exceptionally well-positioned for the future, supported by a talented management team, strong asset quality, and a steadfast commitment to serving the individuals, businesses, and communities that have placed their trust in us."
Balance Sheet
Total assets reached $1.56 billion as of June 30, 2026 from $1.48 billion as of June 30, 2025 representing growth of $78.4 million, or 5.3%. The increase was driven by an increases in the securities and loan portfolios. Investment securities increased to $308.0 million as of June 30, 2026 compared to $242.4 million as of June 30, 2025, an increase of $65.6 million, or 27.0%, 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 $14.0 million with outstanding balances of $1.12 billion as of June 30, 2026. Sales of qualifying mortgage loans were $56.9 million for the six months ended June 30, 2026 compared to $56.8 million for the six months ended June 30, 2025.
The allowance for credit losses on loans was $8.4 million as of June 30, 2026 compared to $8.3 million as of June 30, 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 $1.09 billion as of June 30, 2026 compared to $1.10 billion as of June 30, 2025, and included purchased brokered deposits of $43.8 million as of June 30, 2026 and $65.3 million as of June 30, 2025. Borrowed funds were $337.1 million as of June 30, 2026 and consisted of Federal Home Loan Bank advances of $316.1 million and Federal Reserve borrowings of $21.0 million compared to Federal Home Loan Bank advances of $270.7 million as of June 30, 2025.
Stockholders' equity increased to $90.4 million as of June 30, 2026 compared to $71.3 million as of June 30, 2025, resulting in an increase in book value per share of 16.7% to $18.28 as of June 30, 2026 compared to $15.66 as of June 30, 2025. These increases are due in part to sales of common stock in accordance with the equity distribution agreement previously announced on May 20, 2025. Through June 30, 2026, 384,066 shares of the Company's stock have been sold resulting in net proceeds, after expenses, of $8.6 million. Accumulated other comprehensive loss as it relates to the fair market value adjustment for investment securities as of June 30, 2026 was $27.0 million compared to $31.2 million as of June 30, 2025 which also contributed to the improvement in book value per share.
Income Statement
Consolidated net income was $2.9million for the three months ended June 30, 2026, compared to $2.4 million for the same period in 2025. Results increased $529 thousand for the comparison periods due to increases of $1.2 million net interest income and $484 thousand in noninterest income, and a decrease of $46 thousand in credit loss expense, partially offset by increases of $976 thousand in noninterest expenses and $199 thousand in income tax expense.
Interest income was $20.1 million for the three months ended June 30, 2026 compared to $18.7 million for the three months ended June 30, 2025, an increase of $1.3 million, or 7.1%. The increase is attributable to a larger earning asset base and higher interest rates on those assets. Interest expense increased $162 thousand, or 2.0%, to $8.4 million for the three months ended June 30, 2026 compared to $8.3 million for the three months ended June 30, 2025 These changes resulted in improvement in net interest income of $1.2 million, or 11.2%, for the comparison periods.
Credit loss expense of $175 thousand was recorded for the three months ended June 30, 2026 compared to credit loss expense of $221 thousand for the three months ended June 30, 2025. The reduction in credit loss expense during the comparison periods was primarily related to the size and mix of the loan portfolio and unfunded commitments at June 30, 2026.
Noninterest income was $3.2 million for the second quarter of 2026 compared to $2.8 million for the same period in 2025. There was a one-time gain of $380 thousand recognized on the sale of a branch property during the second quarter of 2026. Sales of qualifying residential mortgages resulted in net gains of $490 thousand for the three months ended June 30, 2026 compared to net gains of $480 thousand for the three months ended June 30, 2025.
Noninterest expenses increased $976 thousand, or 9.3%, to $11.5 million for the three months ended June 30, 2026 compared to $10.5 million for the three months ended June 30, 2025. The increase during the comparison periods was due to increases of $831 thousand in salaries and wages, $35 thousand in equipment expenses, and $184 thousand in other expenses, partially offset by a decrease of $74 thousand in employee benefits. Income tax expense was $301 thousand for the three months ended June 30, 2026, an increase of $199 thousand compared to $102 thousand for the three months ended June 30, 2025.
Dividend Declared
The Board of Directors declared a cash dividend of $0.36 per share for the quarter payable August 6, 2026 to shareholders of record as of July 27, 2026.
David S. Silverman, former President and Chief Executive Officer and Chair of the Board, added:
"After more than four decades with Union Bank, it is especially gratifying to see the Company continue to perform at a high level while remaining true to its core values and mission. Throughout my career, I have been privileged to work alongside dedicated employees, outstanding directors, and loyal customers who have all contributed to Union Bank's success. As I transition from my role as Chief Executive Officer to Chair of the Board, I do so with great confidence in Jeff Weidley's leadership, our experienced management team, and the Company's future. Union Bank remains financially strong, deeply committed to the communities it serves, and well-positioned to continue its tradition of independent community banking for generations to come."
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.
| Consolidated Balance Sheets (unaudited, in thousands) | |||||||||||
| ASSETS | June 30, 2026 | June 30, 2025 | |||||||||
| Cash and due from banks | $ | 6,522 | $ | 4,731 | |||||||
| Federal funds sold & overnight deposits | 24,461 | 24,536 | |||||||||
| Interest bearing deposits in banks | 7,958 | 6,963 | |||||||||
| Investment securities | 307,982 | 242,423 | |||||||||
| Loans held for sale | 5,073 | 8,992 | |||||||||
| Loans, net | 1,118,962 | 1,104,922 | |||||||||
| Allowance for credit losses | (8,390) | (8,307) | |||||||||
| Premises and equipment, net | 20,055 | 20,251 | |||||||||
| Accrued interest & other assets | 76,174 | 75,853 | |||||||||
| Total Assets | $ | 1,558,797 | $ | 1,480,364 | |||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
| Noninterest bearing deposits | $ | 216,852 | $ | 217,317 | |||||||
| Interest bearing deposits | 585,321 | 578,411 | |||||||||
| Time deposits | 291,890 | 307,618 | |||||||||
| Borrowed funds | 337,075 | 270,674 | |||||||||
| Subordinated notes | 16,324 | 16,290 | |||||||||
| Accrued interest & other liabilities | 20,927 | 18,796 | |||||||||
| Common stock | 10,831 | 10,049 | |||||||||
| Additional paid-in capital | 11,980 | 3,380 | |||||||||
| Retained earnings | 98,853 | 93,350 | |||||||||
| Accumulated other comprehensive loss | (26,995) | (31,231) | |||||||||
| Treasury stock at cost | (4,261) | (4,290) | |||||||||
| Total Liabilities and Shareholders' Equity | $ | 1,558,797 | $ | 1,480,364 | |||||||
| Standby letters of credit were $1,772,000 and $1,632,000 at June 30, 2026 and 2025, respectively. | |||||||||||
| Consolidated Statements of Income (unaudited, in thousands) | |||||||||||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||||||||||||
| (3 months ended) | (6 months ended) | ||||||||||||||||
| Interest income | $ | 20,057 | $ | 18,721 | $ | 39,587 | $ | 37,016 | |||||||||
| Interest expense | 8,437 | 8,275 | 16,672 | 16,300 | |||||||||||||
| Net interest income | 11,620 | 10,446 | 22,915 | 20,716 | |||||||||||||
| Credit loss (benefit) expense | 175 | 221 | (150) | 456 | |||||||||||||
| Net interest income after credit loss (benefit) expense | 11,445 | 10,225 | 23,065 | 20,260 | |||||||||||||
| Wealth management income | 329 | 295 | 633 | 571 | |||||||||||||
| Noninterest income | 2,914 | 2,464 | 5,104 | 4,628 | |||||||||||||
| Noninterest expenses: | |||||||||||||||||
| Salaries & wages | 4,916 | 4,085 | 9,313 | 7,996 | |||||||||||||
| Employee benefits | 1,897 | 1,971 | 3,662 | 3,552 | |||||||||||||
| Occupancy expense, net | 547 | 547 | 1,194 | 1,199 | |||||||||||||
| Equipment expense | 1,135 | 1,100 | 2,245 | 2,149 | |||||||||||||
| Other expenses | 2,968 | 2,784 | 5,831 | 5,415 | |||||||||||||
| Total | 11,463 | 10,487 | 22,245 | 20,311 | |||||||||||||
| Income before taxes | 3,225 | 2,497 | 6,557 | 5,148 | |||||||||||||
| Income tax expense | 301 | 102 | 629 | 252 | |||||||||||||
| Net Income | $ | 2,924 | $ | 2,395 | $ | 5,928 | $ | 4,896 | |||||||||
| Earnings per share | $ | 0.61 | $ | 0.53 | $ | 1.26 | $ | 1.08 | |||||||||
| Book value per share | $ | 18.28 | $ | 15.66 | |||||||||||||