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| August 7, 2025 | ||||||||||||||||||||||||||
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We are pleased to share our financial results for the second quarter ended June 30, 2025. Despite an uncertain economic landscape, the Company delivered another quarter of solid growth and continued a trend of slow but steady improvement in asset yields and net interest margins. Total assets reached $1.48 billion as of June 30, 2025, marking an increase of $81.9 million, or 5.9%, compared to $1.40 billion one year ago. This growth was primarily driven by loan portfolio expansion, with total loans increasing by $99.8 million, or 9.8%, to $1.11 billion. Loans held for sale also increased to $9.0 million, up from $6.2 million at the end of the second quarter of the prior year. Asset quality remains sound, underpinned by minimal past due loans and net recoveries of $6 thousand year to date. Qualifying residential loan sales to the secondary market also saw significant activity, with $31.0 million sold during the quarter and $56.8 million year-to-date, compared to $19.3 million and $41.0 million, respectively, in 2024. On the funding side, deposits grew to $1.10 billion, an increase from $1.05 billion as of June 30, 2024. In addition to customer deposits, wholesale funding is also used to fund balance sheet growth. These funding sources consisted of brokered deposits, Federal Home Loan Bank advances, and in 2024 advances from the Federal Reserve’s Bank Term Funding Program. Total outstanding in wholesale funds from these sources was $336.0 million as of June 30, 2025 and $312.1 million as of June 30, 2024. Our equity capital improved to $71.3 million, with the book value per share rising to $15.66 from $14.16 a year earlier. Accumulated other comprehensive loss, primarily tied to fair value adjustments in the investment securities portfolio, improved to $31.2 million, down from $35.2 million in the prior year. Consolidated net income for the second quarter of 2025 was $2.4 million, compared to $2.0 million in the same period in 2024, an increase of 18.6%. Interest income climbed by $2.2 million (13.1%), | reaching $18.7 million, while interest expense increased by $1.2 million (17.1%) to $8.3 million. Consequently, net interest income rose by $962 thousand (10.1%). Credit loss expense declined to $221 thousand, reflecting prudent credit management in a growing loan portfolio. Noninterest income was steady at $2.8 million. Noninterest expenses rose by 7.2% to $10.5 million, mainly due to higher salaries, benefits, and modest increases in occupancy and equipment expenses. Income tax expense for the quarter was $102 thousand. The region we serve historically has had strong trade, tourism, cultural and familial ties with our neighbors to the north, Quebec. Over the years we have observed diminishing southbound tourism from Canadians, driven by weakness in the Canadian currency. We expect this trend to worsen significantly in the current political environment. Canadian tourism as a percentage of overall tourism revenue has declined substantially over the past couple of decades in our region, so we do not expect the decline in Canadian tourism to impact local tourism revenues substantially. We are, however, monitoring this business segment closely. In recognition of our sustained performance and commitment to our shareholders, the Board of Directors has declared a dividend of .36 cents per share for owners of record July 26,2025, and payable August 7, 2025. Please find your dividend check or advice of remittance enclosed. Please contact Kristy Adams Alfieri at 802-888-0982 to receive your dividend using a direct deposit. Thank you for your continued trust and support. 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 Kristy Adams Alfieri, Assistant Secretary at 802.888.0982 or contact our Transfer Agent at the address and phone number listed below: |  | ||||||||||||||||||||||||
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| Broadridge Corporate Issuer Solutions, Inc. P.O. Box 1342 Brentwood, NY 11717 866.321.8022 or 720.378.5956 E-mail: shareholder@broadridge.com | ||||||||||||||||||||||||||
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| 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. | ||||||||||||||||||||||||||
