Union Bankshares posts higher Q1 2026 earnings
Union Bankshares, Inc. reported stronger results for the first quarter of 2026.
Rhea-AI Filing Summary
Union Bankshares, Inc. reported stronger results for the first quarter of 2026. Net income was $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 and solid credit quality.
Total assets reached $1.63 billion, up 6.6% from March 31, 2025, with investment securities at $315.6 million and loans at $1.18 billion. Net interest income rose to $11.3 million, while noninterest income was $2.5 million, including $350 thousand of gains on mortgage sales.
Noninterest expenses increased to $10.8 million as the company invested in people, technology, and operations. Deposits totaled $1.20 billion, and stockholders’ equity increased, with book value per share rising 13.1% to $17.46. The Board declared a quarterly dividend of $0.36 per share, payable May 7, 2026 to shareholders of record on April 27, 2026.
Positive
- Stronger profitability: Q1 2026 net income rose to $3.0 million and EPS to $0.65, up from $2.5 million and $0.55 a year earlier, reflecting improved core earnings.
- Capital and book value growth: Stockholders’ equity increased to $80.6 million and book value per share climbed 13.1% year over year to $17.46, indicating retained earnings and reduced securities-related losses.
- Ongoing shareholder returns: The Board declared a $0.36 per share quarterly cash dividend, continuing regular cash distributions alongside balance sheet and earnings growth.
Negative
- None.
Insights
Q1 2026 shows solid earnings growth, strong capital, and sustained dividend support.
Union Bankshares delivered higher profitability with net income of $3.0 million and EPS of $0.65, up from $0.55. Net interest income grew to $11.3 million, supported by a larger earning-asset base and stable credit costs, as the allowance for credit losses on loans held at $8.1 million.
Balance sheet growth was healthy: total assets rose to $1.63 billion, and the investment securities portfolio expanded to $315.6 million. Deposits of $1.20 billion and stockholders’ equity of $80.6 million supported a higher book value per share of $17.46, up 13.1% year over year.
The quarterly dividend of $0.36 per share, payable on May 7, 2026, underscores an ongoing capital return alongside growth. Future company filings may provide additional detail on loan mix, deposit costs, and credit trends after the quarter ended March 31, 2026.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Net income: $3.0 million
Earnings per share: $0.65
Net interest income: $11.3 million
+5 more
8 metrics
Net income
$3.0 million
Three months ended March 31, 2026
Earnings per share
$0.65
Three months ended March 31, 2026
Net interest income
$11.3 million
Q1 2026 consolidated net interest income
Total assets
$1.63 billion
As of March 31, 2026
Total deposits
$1.20 billion
As of March 31, 2026
Book value per share
$17.46
As of March 31, 2026, up 13.1% year over year
Allowance for credit losses on loans
$8.1 million
As of March 31, 2026
Quarterly dividend
$0.36 per share
Payable May 7, 2026 to shareholders of record April 27, 2026
Key Terms
net interest income, allowance for credit losses, noninterest income, noninterest expenses, +2 more
6 terms
net interest income financial
"From an earnings standpoint, net interest income increased $1.0 million, or 10.0%, supported by a larger earning asset base"
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 was $8.1 million at March 31, 2026, stable year over year"
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.
noninterest income financial
"Noninterest income was $2.5 million, including $350 thousand in net gains on mortgage sales"
Noninterest income is the money a bank or financial firm earns from activities other than charging interest on loans, such as account fees, transaction charges, advisory and underwriting fees, trading gains, and service income — like a store making extra money from repairs, warranties or delivery charges rather than product sales. It matters to investors because it shows how diversified a company’s revenue is and whether it can withstand changes in interest rates; a strong noninterest income stream can stabilize profits but may also be more variable than steady loan interest.
noninterest expenses financial
"We also invested in our people, technology, and operations, which contributed to a $958 thousand increase in noninterest expense"
Noninterest expenses are the routine costs a company pays to run its business that are not related to borrowing money, such as salaries, rent, utilities, marketing, technology and legal fees. For investors, these expenses show how efficiently a company operates because lower noninterest costs relative to revenue mean more profit stays with shareholders; think of it as household bills (groceries, electricity, subscriptions) separate from your mortgage interest.
Community Reinvestment Act regulatory
"Union Bank has received an "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
Earnings per share
$0.65
Net interest income
$11.3 million
Total assets
$1.63 billion
FAQ
AI-generated analysis. How Rhea-AI works. Not financial advice.
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): May 7, 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 Exhibits 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 May 7, 2026, Union Bankshares, Inc. (the "Company") distributed its First Quarter 2026 unaudited Report to Shareholders (the "Quarterly Report") presenting information concerning the Company's results of operations and financial condition for the three months ended March 31, 2026 and declaration of a regular quarterly dividend. A copy of the Quarterly Report is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
Item 9.01: Financial Statements and Exhibits
d) Exhibits:
| 99.1 | Union Bankshares, Inc. First Quarter 2026 Report to Shareholders distributed May 7, 2026 referred to in Item 2.02 of the Report as furnished, not filed; herewith. | |||||||
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. | |||||
| May 7, 2026 | /s/ David S. Silverman | ||||
| David S. Silverman | |||||
| President/Chief Executive Officer | |||||
| May 7, 2026 | /s/ Karyn J. Hale | ||||
| Karyn J. Hale | |||||
| Chief Financial Officer | |||||
EXHIBIT INDEX
Exhibit 99.1 | Union Bankshares, Inc. First Quarter 2026 Report to Shareholders distributed May 7, 2026. | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
Exhibit 99.1
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| May 7, 2026 | ||||||||||||||||||||||||||
 |  | |||||||||||||||||||||||||
We are pleased to share that Union Bankshares delivered solid first-quarter performance. For the three months ended March 31, 2026, consolidated net income was $3.0 million, or $0.65 per share, compared to $2.5 million, or $0.55 per share, for the first quarter of 2025. This improvement was driven primarily by higher net interest income, disciplined credit performance, and continued focus on serving customers across our Vermont and New Hampshire footprint. Our balance sheet continued to expand. Total assets were $1.63 billion at quarter end, up 6.6% from March 31, 2025. Liquidity strengthened, with federal funds sold and overnight deposits rising to $25.3 million from $8.9 million a year ago. We also grew the investment securities portfolio to $315.6 million, up 26.4%, reflecting our strategic decision to pre-invest future portfolio cash flows during the fourth quarter of 2025. Loan growth was modest, with total loans of $1.18 billion—an increase of $15.8 million, or 1.3%, from the prior year period. We remained an active residential lender, selling $24.1 million of mortgage loans during the quarter, and we continue to support local businesses and municipalities with relationship driven banking. Importantly, asset quality remains strong. The allowance for credit losses on loans was $8.1 million at March 31, 2026, stable year over year, and we will continue to monitor economic conditions and borrower performance closely. From an earnings standpoint, net interest income increased $1.0 million, or 10.0%, supported by a larger earning asset base and higher yields. Noninterest income was $2.5 million, including $350 thousand in net gains on mortgage sales. We also invested in our people, technology, and operations, which contributed to a $958 thousand increase in noninterest expense. We remain focused on aligning these investments with the service quality and capabilities our customers expect. Funding and capital levels remained sound. Total deposits were $1.20 billion at March 31, 2026, and we continued to utilize a mix of core deposits, brokered deposits, and Federal Home Loan Bank advances to support customer demand. Stockholders’ equity increased to $80.6 million, and book value per share | rose 13.1% year over year to $17.46, benefiting from retained earnings and improvement in accumulated other comprehensive loss on our securities portfolio compared to the first quarter of 2025. Economic conditions in Northern Vermont and Northern New Hampshire during the first quarter of 2026 were generally steady and modestly positive. Employment levels were stable, with continued tightness in the labor market, especially in healthcare, education, skilled trades, and hospitality. Inflation pressures that affected households in prior years appeared to moderate, though energy prices are beginning to impact consumers and businesses. The travel and tourism sectors were a clear bright spot during the quarter, supported by an exceptionally strong snow year. Consistent snowfall drove above average visitation to ski areas and snowmobile destinations, benefiting lodging, restaurants, and retailers across the region. Alpine and Nordic ski areas reported strong skier visits, while snowmobile trail networks saw heavy use, extending economic activity into smaller, rural communities that rely heavily on winter recreation. We are pleased to announce that the Board declared a quarterly cash dividend of $0.36 per share, payable May 7, 2026, to shareholders of record as of April 27, 2026. We hope to see many of you at our 135th Annual Shareholders meeting on May 20th at 3:00pm in Stearns Performance Space on the Vermont State University, Johnson Campus, 337 College Hill Road, Johnson, VT. A reception will be held immediately following the annual meeting. Sincerely, | |||||||||||||||||||||||||
 | If you need assistance with a change in registration of certificates, combining your certificates into one, reporting lost certificates, non-receipt or loss of dividend checks, assistance regarding direct deposit of dividends, information about the Company, or to receive copies of financial reports, please contact Karyn J. Hale, CFO, at 802.888.6600 or contact our Transfer Agent at the address and phone number listed below: |  | ||||||||||||||||||||||||
| TRANSFER AGENT: | ||||||||||||||||||||||||||
| Broadridge Corporate Issuer Solutions, Inc. P.O. Box 1342 Brentwood, NY 11717 866.321.8022 or 720.378.5956 E-mail: shareholder@broadridge.com | ||||||||||||||||||||||||||
| NASDAQ STOCK MARKET | ||||||||||||||||||||||||||
| Ticker Symbol: UNB Corporate Name: Union Bankshares, Inc. Corporate Address: 20 Lower Main Street P.O. Box 667 Morrisville, VT 05661-0667 Investor Relations: UBLocal.com | ||||||||||||||||||||||||||
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Neil J. Van Dyke Chair | David S. Silverman President & Chief Executive Officer | |||||||||||||||||||||||||
 | About Union Bankshares | |||||||||||||||||||||||||
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 18 banking offices, 3 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. | ||||||||||||||||||||||||||
Consolidated Balance Sheets (unaudited, in thousands) | Consolidated Statements of Income (unaudited, in thousands) | Union Bankshares, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||
DIRECTORS | OFFICERS | |||||||||||||||||||||||||||||||||||||||||||||||||
Neil J. Van Dyke - Chair | Neil J. Van Dyke - Chair | |||||||||||||||||||||||||||||||||||||||||||||||||
| ASSETS | March 31, 2026 | March 31, 2025 | March 31, 2026 | March 31, 2025 | March 31, 2026 | Timothy W. Sargent - Vice Chair | David S. Silverman - President & CEO | |||||||||||||||||||||||||||||||||||||||||||
| Dawn D. Bugbee | Karyn J. Hale - Chief Financial Officer | |||||||||||||||||||||||||||||||||||||||||||||||||
| (3 months ended) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Mary K. Parent | Timothy W. Sargent - Secretary | |||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and Due from Banks | $ | 4,502 | $ | 4,772 | Interest Income | $ | 19,530 | $ | 18,295 | |||||||||||||||||||||||||||||||||||||||||
| Nancy C. Putnam | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Expense | 8,235 | 8,025 | Gregory D. Sargent | |||||||||||||||||||||||||||||||||||||||||||||||
| Federal Funds Sold & Overnight Deposits | 25,322 | 8,940 | David S. Silverman | |||||||||||||||||||||||||||||||||||||||||||||||
| Net Interest Income | 11,295 | 10,270 | Janet P. Spitler | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest Bearing Deposits in Banks | 7,958 | 7,959 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Credit Loss (Benefit) Expense | (325) | 235 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Investment Securities | 315,591 | 249,631 | Net Interest Income After Credit Loss Expense | 11,620 | 10,035 | Union Bank | REGIONAL ADVISORY BOARD MEMBERS | |||||||||||||||||||||||||||||||||||||||||||
| Loans Held for Sale | 4,193 | 4,055 | ||||||||||||||||||||||||||||||||||||||||||||||||
DIRECTORS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans, net | 1,178,969 | 1,163,321 | Wealth Management Income | 304 | 276 | Neil J. Van Dyke - Chair | Michael R. Barrett - St. Johnsbury | |||||||||||||||||||||||||||||||||||||||||||
Timothy W. Sargent - Vice Chair | Steven J. Bourgeois - St. Albans | |||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for Credit Losses | (8,071) | (8,110) | Noninterest Income | 2,190 | 2,164 | Dawn D. Bugbee | Andrew A. Dean - Northern NH | |||||||||||||||||||||||||||||||||||||||||||
| Steven P. Cote | Stanley T. Fillion - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||||||
| Premises and Equipment, net | 19,603 | 19,988 | Noninterest Expenses: | Walter B. Frame III | Rosemary H. Gingue - St. Johnsbury | |||||||||||||||||||||||||||||||||||||||||||||
| Mary K. Parent | John M. Goodrich - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||||||
| Accrued Interest & Other Assets | 77,078 | 74,276 | Salaries & Wages | 4,397 | 3,911 | Nancy C. Putnam | Christopher M. Knapp - Northern NH | |||||||||||||||||||||||||||||||||||||||||||
| Gregory D. Sargent | Coleen K. Kohaut - St. Albans | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total Assets | $ | 1,625,145 | $ | 1,524,832 | Employee Benefits | 1,765 | 1,581 | David S. Silverman | Justin P. Lavely - St. Johnsbury | |||||||||||||||||||||||||||||||||||||||||
| Janet P. Spitler | Daniel J. Luneau - St. Albans | |||||||||||||||||||||||||||||||||||||||||||||||||
| Occupancy Expense, net | 647 | 652 | Samuel H. Ruggiano - St. Albans | |||||||||||||||||||||||||||||||||||||||||||||||
Christine A. Sheley - Northern NH | ||||||||||||||||||||||||||||||||||||||||||||||||||
| LIABILITIES & SHAREHOLDERS' EQUITY | March 31, 2026 | March 31, 2025 | Equipment Expense | 1,110 | 1,049 | David S. Silverman - All | ||||||||||||||||||||||||||||||||||||||||||||
Union Bank Offices (ATMs at all Branch Locations) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Expenses | 2,863 | 2,631 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest Bearing Deposits | $ | 220,708 | $ | 232,550 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total | 10,782 | 9,824 | VERMONT | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest Bearing Deposits | 703,813 | 682,886 | Income Before Taxes | 3,332 | 2,651 | |||||||||||||||||||||||||||||||||||||||||||||
| Berlin | 1028 US Route 302 | 802.476.0061 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Time Deposits | 275,297 | 265,940 | Income Tax Expense | 328 | 150 | Fairfax | Jct. Routes 104 & 128 | 802.849.2600 | ||||||||||||||||||||||||||||||||||||||||||
| Hardwick | 103 VT Route 15 West | 802.472.8100 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Borrowed Funds | 310,981 | 240,696 | Net income | $ | 3,004 | $ | 2,501 | Jeffersonville | 5062 VT Route 15 | 802.644.6600 | ||||||||||||||||||||||||||||||||||||||||
| Jericho | 368 VT Route 15 | 802.899.7500 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Subordinated Notes | 16,316 | 16,281 | Earnings Per Share | $ | 0.65 | $ | 0.55 | Lyndonville | 183 Depot Street | 802.626.3100 | ||||||||||||||||||||||||||||||||||||||||
| Morrisville | 20 Lower Main Street | 802.888.6600 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Accrued Interest & Other Liabilities | 17,465 | 16,405 | Book Value Per Share | $ | 17.46 | $ | 15.44 | 65 Northgate Plaza | 802.888.6860 | |||||||||||||||||||||||||||||||||||||||||
| Shelburne | 5068 Shelburne Road | 802.985.0227 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | 10,169 | 10,024 | St. Albans | 15 Mapleville Depot | 802.524.9000 | |||||||||||||||||||||||||||||||||||||||||||||
| St. Johnsbury | Operations and Loan Center | |||||||||||||||||||||||||||||||||||||||||||||||||
| Additional Paid-in Capital | 4,821 | 3,190 | 364 Railroad Street | 802.748.3131 | ||||||||||||||||||||||||||||||||||||||||||||||
| Retained Earnings | Branch | |||||||||||||||||||||||||||||||||||||||||||||||||
| 97,590 | 92,589 | 325 Portland Street | 802.748.3121 | |||||||||||||||||||||||||||||||||||||||||||||||
| Accumulated Other Comprehensive Loss | (27,747) | (31,434) | Stowe | 47 Park Street | 802.253.6600 | |||||||||||||||||||||||||||||||||||||||||||||
| Williston | Branch | |||||||||||||||||||||||||||||||||||||||||||||||||
| 31 Market St | 802.878.7900 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Treasury Stock at Cost | (4,268) | (4,295) |  | Loan Center | ||||||||||||||||||||||||||||||||||||||||||||||
| 31 Market St | 802.865.1000 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total Liabilities & Shareholders' Equity | $ | 1,625,145 | $ | 1,524,832 | ||||||||||||||||||||||||||||||||||||||||||||||
| Standby letters of credit were $1,573,000 and $1,544,000 at March 31, 2026 and 2025, respectively. | NEW HAMPSHIRE | |||||||||||||||||||||||||||||||||||||||||||||||||
| Groveton | 3 State Street | 603.636.1611 | ||||||||||||||||||||||||||||||||||||||||||||||||
 | Littleton | 263 Dells Road | 603.444.7136 | |||||||||||||||||||||||||||||||||||||||||||||||
| 76 Main Street | 603.444.5321 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Lincoln | 135 Main Street | 603.745.4000 | ||||||||||||||||||||||||||||||||||||||||||||||||
| North Conway | 120 North-South Road | 603.356.4010 | ||||||||||||||||||||||||||||||||||||||||||||||||