Attached files
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| EX-99.1 - EXHIBIT 99.1 COURTESY PDF COPY - UNION BANKSHARES INC | exhibit991shrptcourtesy.pdf |
| 8-K - BODY OF FORM 8-K - UNION BANKSHARES INC | form8-k2ndqtrshreport.htm |
Exhibit 99.1
ABOUT UNION BANKSHARES | SHAREHOLDER ASSISTANCE AND INVESTOR INFORMATION | DEAR SHAREHOLDER, | August 11, 2011 | |||||
Union Bankshares, Inc. operates as the holding company for Union Bank, which provides com-mercial, retail and municipal banking services and asset management services throughout northern Vermont and northwestern New Hampshire. Union Bank was founded in 1891 in Morrisville, Vermont, where the Bank's and its holding company's head-quarters are located. Union Bank has recently grown through acquisition and operates 17 bank-ing offices, a loan center and 33 ATMs. |  | We have much news to share in this quarter's letter and will begin with the results of the shareholder actions at the May 18th annual meeting. Long-time Directors Dick Sargent and Bob Rollins retired from the Board and Tim Sargent and David Silverman were elected Directors along with the rest of the incumbent board mem-bers. Consistent with our management succession plan, Ken Gibbons was elected Chairman and CEO and David Silverman was re-elected President by the Board of Directors. When reviewing the financial statements enclosed, two items will be quite evident. The first is the decrease in earnings for the quarter and year to date compared to last year. Year to date one time direct costs associated with the acquisition of the three Northway branches on May 27th were $236,000 after tax or $.05 per share. In addition, increases in advertising and OREO costs and the additional loan loss provision added another $234,000 after tax to expenses. The other item you will notice are the increases in vari-ous balance sheet accounts. The acquisition of the three Northway branches added $67 million to deposits, $33 mil-lion to loans and another $5 million to various other asset categories. In addition, we have 18 new employees among branches in Littleton, Groveton and North Woodstock, New Hampshire. We want to acknowledge the hard work and dili-gence of our staff, and their counterparts at Northway Bank, for making this acquisition a success. Acceptance of this transition by the former customers and staff of Northway has been positive, and we have experienced solid deposit and loan growth thus far. Now that the first six months of 2011 are behind us, we are focusing on allocating the additional assets from the acquisi-tion to generate more interest income, growing market share in New Hampshire as well as our Vermont markets and concentrating on some operational efficiencies. These efforts will bring improvement over the first six months' earnings of this year. We are pleased that for the fourth consecutive year U.S. Banker magazine's June issue identified Union Bankshares, Inc. in the top 200 community banks or thrifts in the U.S. (with less than $2 billion in assets) based on their three-year return on average equity. At 13.0%, we placed 28th nation-wide and 3rd in New England. Our local economy fared reasonably well this past winter and although we experienced a wet spring, tourism and construction seem to be “bustling” right now. Throughout this latest recession, Vermont and New Hampshire have not experienced the high unemployment rates and residential foreclosure actions seen in major sections of the U.S. We anticipate this trend to continue. Enclosed is your dividend check or advice of deposit, rep-resenting a dividend of $0.25 per share to shareholders of record July 30, 2011, and payable August 11, 2011. 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 JoAnn Tallman, Assistant Secretary at 802-888-6600 or contact our Transfer Agent at the address and phone number listed below: | ||||||||
Union Bank is committed to the communities it serves, and encourages employee participation in community events and charitable services. The growing asset base of over $513 million provides the financial strength to successfully serve its con-stituents. | ||||||||
Transfer Agent: | Registrar & Transfer Company Attn: Stock Transfer Department 10 Commerce Drive Cranford, NJ 07016 Phone: 800-368-5948 Fax: 908-497-2318 E-mail: info@rtco.com | |||||||
Union Bank has scored an “Outstanding” rating on all Community Reinvestment Act examina-tions since 1995 and has been an SBA “Preferred Lender” since 1987. | ||||||||
UNION BANK OFFICES (ATMS AT ALL BRANCH LOCATIONS) | ||||||||
NASDAQ Stock Market | ||||||||
VERMONT | MORRISVILLE | S. BURLINGTON | Ticker Symbol: | UNB | ||||
DANVILLE | 20 Lower Main St. | Loan Center | Corporate Name: | Union Bankshares, Inc. | ||||
421 Route 2 East | 802-888-6600 | 30 Kimball Ave. | Corporate Address: | 20 Lower Main Street | ||||
802-684-2211 | 65 Northgate Plaza | 802-865-1000 | PO Box 667 | |||||
FAIRFAX | Route 100 | STOWE | Morrisville, VT 05661-0667 | |||||
Jct. Rtes. 104&128 | 802-888-6860 | 47 Park St. | Investor Relations: | www.UnionBankVT.com | ||||
802-849-2600 | ST. ALBANS | 802-253-6600 | ||||||
HARDWICK | 15 Mapleville Depot | NEW HAMPSHIRE | ||||||
103 VT Rte. 15 | 802-524-9000 | GROVETON | ||||||
802-472-8100 | ST. JOHNSBURY | 3 State Street | ||||||
JEFFERSONVILLE | 364 Railroad St. | 603-636-1611 | ||||||
44 Main St. | 802-748-3131 | LITTLETON | ||||||
802-644-6600 | 325 Portland St. | 263 Dells Road | ||||||
JOHNSON | 802-748-3121 | 603-444-7136 | ||||||
198 Lower Main St. | Green Mtn. Mall | 76 Main Street | ||||||
802-635-6600 | 1998 Memorial Dr. | 603-444-5321 | ||||||
LYNDONVILLE | 802-748-2454 | N. WOODSTOCK |  |  | ||||
183 Depot St. | 155 Main Street | |||||||
802-626-3100 | 603-745-2488 | Cover: Indian Stream, Pittsburg, NH | ||||||
DIRECTORS - UNION BANKSHARES, INC. | OFFICERS - UNION BANK | CONSOLIDATED BALANCE SHEETS (unaudited, in thousands) | |||||||||||||||||
Kenneth D. Gibbons-Chairman | David S. Silverman | Ijaz Akhtar-Assistant Treasurer | No. Woodstock | ASSETS | June 30, 2011 | June 30, 2010 | |||||||||||||
Cynthia D. Borck | John H. Steel | Tracy Pierce Ash-Assistant Treasurer | Littleton | Cash and due from banks | $ | 6,007 | $ | 5,107 | |||||||||||
Steven J. Bourgeois | Schuyler W. Sweet | Rhonda L. Bennett-Vice President | Morrisville | Federal funds sold & overnight deposits | 23,953 | 10,873 | |||||||||||||
Timothy W. Sargent | Neil J. Van Dyke | Therese H. Butler-Assistant Vice President | Morrisville | Interest bearing deposits in banks | 15,903 | 16,959 | |||||||||||||
Stacey L.B. Chase-Assistant Treasurer | Morrisville | Investment securities | 39,517 | 25,629 | |||||||||||||||
DIRECTORS - UNION BANK | Jeffrey S. Ciochetto-Senior Vice President | Morrisville | Loans held for sale | 3,121 | 2,551 | ||||||||||||||
Kenneth D. Gibbons-Chairman | David S. Silverman | Jeffrey G. Coslett-Senior Vice President | Morrisville | Loans, net | 401,058 | 348,553 | |||||||||||||
Cynthia D. Borck | John H. Steel | John Currier-Assistant Vice President | Groveton | Reserve for loan losses | (4,060 | ) | (3,511 | ) | |||||||||||
Steven J. Bourgeois | Schuyler W. Sweet | Michael C. Curtis-Vice President | St. Albans | Premises and equipment, net | 8,722 | 7,960 | |||||||||||||
Timothy W. Sargent | Neil J. Van Dyke | Peter J. Eley-SVP, Managing Trust Officer | Morrisville | Other real estate owned, net | 860 | 826 | |||||||||||||
Kenneth D. Gibbons-Chairman & CEO | Morrisville | Accrued interest & other assets | 18,474 | 12,909 | |||||||||||||||
OFFICERS - UNION BANKSHARES, INC. | Don D. Goodhue-Vice President | Morrisville | Total Assets | $ | 513,555 | $ | 427,856 | ||||||||||||
Kenneth D. Gibbons-Chairman & CEO | Melissa A. Greene-Asst. Vice President | Hardwick | LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||||||||||
David S. Silverman-President | Karyn J. Hale-Vice President | Morrisville | Noninterest bearing deposits | $ | 64,876 | $ | 53,007 | ||||||||||||
Marsha A. Mongeon-Vice President/Treasurer/CFO | Claire A. Hindes-Asst. Vice President | Morrisville | Interest bearing deposits | 227,919 | 181,507 | ||||||||||||||
John H. Steel-Secretary | Patricia N. Hogan-Vice President | Morrisville | Time deposits | 140,169 | 119,819 | ||||||||||||||
JoAnn A. Tallman-Assistant Secretary | Tracey D. Holbrook-Regional Vice Pres. | St. Johnsbury | Borrowed funds | 32,570 | 25,554 | ||||||||||||||
Lura L. Jacques-Asst. VP, Trust Officer | St. Albans | Accrued interest & other liabilities | 6,170 | 6,045 | |||||||||||||||
REGIONAL ADVISORY BOARDS | Lynne P. Jewett-Assistant Vice President | Morrisville | Common stock | 9,847 | 9,844 | ||||||||||||||
Northern New Hampshire- | Stephen H. Kendall-Vice President | Morrisville | Additional paid-in capital | 268 | 232 | ||||||||||||||
Judy F. Aydelott | Schuyler W. Sweet | Susan O. Laferriere-Vice President | St. Johnsbury | Retained earnings | 37,454 | 37,008 | |||||||||||||
Stanley T. Fillion | Norrine A. Williams | Dennis J. Lamothe-Vice President | St. Johnsbury | Accumulated other comprehensive loss | (1,895 | ) | (1,382 | ) | |||||||||||
ST. ALBANS- | Susan F. Lassiter-Vice President | Jeffersonville | Treasury stock at cost | (3,823 | ) | (3,778 | ) | ||||||||||||
Steven J. Bourgeois | Daniel J. Luneau | Christine S. Latulip-Regional Vice President | Littleton | Total Liabilities & Shareholders' Equity | $ | 513,555 | $ | 427,856 | |||||||||||
Coleen K. Kohaut | Samuel H. Ruggiano | Edward L. Levite-Senior Loan Originator | So. Burlington | Standby letters of credit were $1,856,000 and $1,622,000 at June 30, 2011 and 2010, respectively. | |||||||||||||||
ST. JOHNSBURY- | Virginia M. Locke-Assistant Vice President | Littleton | |||||||||||||||||
J.R. Alexis Clouatre | Rosemary H. Gingue | Carrie R. Locklin-Assistant Vice President | Morrisville | CONSOLIDATED STATEMENTS OF INCOME (unaudited, in thousands) | |||||||||||||||
Dwight A. Davis | Justin P. Lavely | Robyn A. Masi-Vice President | Stowe | 6/30/11 | 6/30/10 | 6/30/11 | 6/30/10 | ||||||||||||
Kirk Dwyer | Nancy J. Poulos | Sherrie A. Menard-Assistant Vice President | Morrisville | (3 months ended) | (6 months ended) | ||||||||||||||
ALL- | Thomas J. Meshako-Senior Vice President | Morrisville | Interest income | $ | 5,734 | $ | 5,721 | $ | 11,232 | $ | 11,365 | ||||||||
Kenneth D. Gibbons | Marsha A. Mongeon-Sr. Vice President, CFO | Morrisville | Interest expense | 1,002 | 1,036 | 1,963 | 2,092 | ||||||||||||
Karen Carlson Noyes-Vice President | Morrisville | Net interest income | 4,732 | 4,685 | 9,269 | 9,273 | |||||||||||||
Barbara A. Olden-Vice President | St. Johnsbury | Provision for loan losses | 150 | 90 | 300 | 180 | |||||||||||||
Deborah J. Partlow-Asst. VP, Sr. Trust Officer | Morrisville | Net interest income after | 4,582 | 4,595 | 8,969 | 9,093 | |||||||||||||
Bradley S. Prior-Assistant Treasurer | Morrisville | provision for loan losses | |||||||||||||||||
Craig S. Provost-Vice President | Stowe | Trust income | 139 | 108 | 271 | 217 | |||||||||||||
Colleen D. Putvain-Assistant Treasurer | Morrisville | Noninterest income | 1,508 | 1,367 | 2,777 | 2,423 | |||||||||||||
Robert J. Richardson-Vice President | Morrisville | Noninterest expenses: | |||||||||||||||||
David S. Silverman-President | Morrisville | Salaries & wages | 1,899 | 1,592 | 3,629 | 3,157 | |||||||||||||
Judy R. Smith-Assistant Vice President | St. Albans | Pension & employee benefits | 779 | 674 | 1,596 | 1,434 | |||||||||||||
John H. Steel-Secretary | Morrisville | Occupancy expense, net | 265 | 221 | 555 | 476 | |||||||||||||
Curtis C. Swan-Assistant Vice President | Fairfax | Equipment expense | 273 | 244 | 569 | 492 | |||||||||||||
JoAnn A. Tallman-Assistant Secretary | Morrisville | Other expenses | 1,793 | 1,338 | 3,240 | 2,595 | |||||||||||||
Francis E. Welch-Assistant Vice President | Morrisville | Total | 5,009 | 4,069 | 9,589 | 8,154 | |||||||||||||
Martha J. Wilkins-Assistant Treasurer | Lyndonville | Income before taxes | 1,220 | 2,001 | 2,428 | 3,579 | |||||||||||||
Lorraine G. Willett-Assistant Vice President | Morrisville | Income tax expense | 189 | 475 | 369 | 834 | |||||||||||||
Net income | $ | 1,031 | $ | 1,526 | $ | 2,059 | $ | 2,745 | |||||||||||
Earnings per share | $ | 0.23 | $ | 0.34 | $ | 0.46 | $ | 0.62 | |||||||||||
Book value per share | $ | 9.39 | $ | 9.40 | |||||||||||||||