Attached files
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| EX-99.1 - EXHIBIT 99.1 COURTESY PDF COPY - UNION BANKSHARES INC | exhibit991shrpt3qcourtesy.pdf |
| 8-K - BODY OF FORM 8-K - UNION BANKSHARES INC | form8-k3rdqtrshreport.htm |
Exhibit 99.1
ABOUT UNION BANKSHARES | SHAREHOLDER ASSISTANCE AND INVESTOR INFORMATION | DEAR SHAREHOLDER, | November 10, 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. |  | Third quarter results show favorable growth trends over the prior year in a number of areas of the balance sheet, such as assets 21%, deposits 25%, loans 17% and investments, overnight and interest bearing deposit balances (liquidity) 40%. As we continue to reinvest the assets acquired in the second quarter New Hampshire branch acquisitions from shorter term investments to mid-term or variable rate loans, we should experience an improvement in net interest income as we invest in higher yielding assets. The income for the quarter was about equal to last year for the period with net interest income increasing $405,000 or 9%, and non-interest income increasing $455,000 or 29%. These gains were offset by increases in salaries and wages, due to the three additional New Hampshire branches and the South Burlington loan center and other expenses including $62 thousand in acquisition expenses. It is anticipated fourth quarter earnings should show continued improvement as third quarter earnings were 39% better than the second quarter and the branch acquisition expenses are behind us. With the unusually long duration of the current low interest rate cycle, we continue to receive high volumes of requests to refinance residential mortgages. But also this year, and particularly in the third quarter, we are receiving more requests for construction, VA, FHA and conventional resi-dential purchase loans. For the quarter ended we sold $19.8 million of residential loans into the secondary market for a net gain of $483,000. Year to date we have sold $50 million versus $38 million last year for net gains of $990,000 versus $601,000 in 2010. We expect the refinancing and loan activ-ity to continue to be strong at least through year end. Fall foliage brought many tourists to our service areas with reports of "better than last year" coming in from restaurant and inn owners. The portions of Vermont and New Hampshire served by our branch network did not, with a few exceptions, experience the devastation from Hurricane Irene as did other parts of the two states. We were fortunate. On the national level, unemployment still exceeds 9%, while our markets are hovering at 5% to 6%. We have been spared much of the pain the extended recession has brought other parts of the United States, and continue to monitor our local economy and work closely with our customers. These have been unusual and occasionally challenging times for many. Enclosed is your dividend check or advice of deposit, rep-resenting a dividend of $0.25 per share to shareholders of record October 29, 2011, and payable November 10, 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 $545 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 | Cover: End of Day from Bryce Hill, Cambridge, VT Photographer: M. Teena Flood | ||||||
802-626-3100 | 603-745-2488 | |||||||
Third Quarter Financial Report | CONSOLIDATED BALANCE SHEETS (unaudited, in thousands) | ||||||||||||||||||
ASSETS | September 30, 2011 | September 30, 2010 | |||||||||||||||||
DIRECTORS - UNION BANKSHARES, INC. | OFFICERS - UNION BANK | Cash and due from banks | $ | 5,133 | $ | 4,799 | |||||||||||||
Kenneth D. Gibbons-Chairman | David S. Silverman | Ijaz Akhtar-Assistant Treasurer | No. Woodstock | Federal funds sold & overnight deposits | 25,428 | 23,755 | |||||||||||||
Cynthia D. Borck | John H. Steel | Tracy Pierce Ash-Assistant Treasurer | Littleton | Interest bearing deposits in banks | 20,191 | 15,172 | |||||||||||||
Steven J. Bourgeois | Schuyler W. Sweet | Rhonda L. Bennett-Vice President | Morrisville | Investment securities | 41,266 | 22,914 | |||||||||||||
Timothy W. Sargent | Neil J. Van Dyke | Therese H. Butler-Assistant Vice President | Morrisville | Loans held for sale | 4,242 | 3,653 | |||||||||||||
Stacey L.B. Chase-Assistant Treasurer | Morrisville | Loans, net | 424,822 | 362,518 | |||||||||||||||
DIRECTORS - UNION BANK | Jeffrey S. Ciochetto-Senior Vice President | Morrisville | Reserve for loan losses | (4,187 | ) | (3,697 | ) | ||||||||||||
Kenneth D. Gibbons-Chairman | David S. Silverman | Jeffrey G. Coslett-Senior Vice President | Morrisville | Premises and equipment, net | 8,955 | 7,825 | |||||||||||||
Cynthia D. Borck | John H. Steel | John Currier-Assistant Vice President | Groveton | Other real estate owned, net | 658 | 1,091 | |||||||||||||
Steven J. Bourgeois | Schuyler W. Sweet | Michael C. Curtis-Vice President | St. Albans | Accrued interest & other assets | 19,282 | 12,257 | |||||||||||||
Timothy W. Sargent | Neil J. Van Dyke | Peter J. Eley-SVP, Managing Trust Officer | Morrisville | Total Assets | $ | 545,790 | $ | 450,287 | |||||||||||
Kenneth D. Gibbons-Chairman & CEO | Morrisville | LIABILITIES & SHAREHOLDERS' EQUITY | |||||||||||||||||
OFFICERS - UNION BANKSHARES, INC. | Don D. Goodhue-Vice President | Morrisville | Noninterest bearing deposits | $ | 75,528 | $ | 57,105 | ||||||||||||
Kenneth D. Gibbons-Chairman & CEO | Melissa A. Greene-Asst. Vice President | Hardwick | Interest bearing deposits | 239,296 | 190,924 | ||||||||||||||
David S. Silverman-President | Karyn J. Hale-Vice President | Morrisville | Time deposits | 156,701 | 128,971 | ||||||||||||||
Marsha A. Mongeon-Vice President/Treasurer/CFO | Claire A. Hindes-Asst. Vice President | Morrisville | Borrowed funds | 26,017 | 24,894 | ||||||||||||||
John H. Steel-Secretary | Patricia N. Hogan-Vice President | Morrisville | Accrued interest & other liabilities | 5,653 | 5,899 | ||||||||||||||
JoAnn A. Tallman-Assistant Secretary | Tracey D. Holbrook-Regional Vice Pres. | St. Johnsbury | Common stock | 9,847 | 9,844 | ||||||||||||||
Lura L. Jacques-Asst. VP, Trust Officer | St. Albans | Additional paid-in capital | 272 | 238 | |||||||||||||||
REGIONAL ADVISORY BOARDS | Lynne P. Jewett-Assistant Vice President | Morrisville | Retained earnings | 37,766 | 37,355 | ||||||||||||||
Northern New Hampshire- | Stephen H. Kendall-Vice President | Morrisville | Accumulated other comprehensive loss | (1,467 | ) | (1,122 | ) | ||||||||||||
Judy F. Aydelott | Schuyler W. Sweet | Susan O. Laferriere-Vice President | St. Johnsbury | Treasury stock at cost | (3,823 | ) | (3,821 | ) | |||||||||||
Stanley T. Fillion | Norrine A. Williams | Dennis J. Lamothe-Vice President | St. Johnsbury | Total Liabilities & Shareholders' Equity | $ | 545,790 | $ | 450,287 | |||||||||||
ST. ALBANS- | Susan F. Lassiter-Vice President | Jeffersonville | Standby letters of credit were $1,719,000 and $1,592,000 at September 30, 2011 and 2010, respectively. | ||||||||||||||||
Steven J. Bourgeois | Daniel J. Luneau | Christine S. Latulip-Regional Vice President | Littleton | ||||||||||||||||
Coleen K. Kohaut | Samuel H. Ruggiano | Edward L. Levite-Senior Loan Originator | So. Burlington | CONSOLIDATED STATEMENTS OF INCOME (unaudited, in thousands) | |||||||||||||||
ST. JOHNSBURY- | Virginia M. Locke-Assistant Vice President | Littleton | 9/30/11 | 9/30/10 | 9/30/11 | 9/30/10 | |||||||||||||
J.R. Alexis Clouatre | Rosemary H. Gingue | Carrie R. Locklin-Assistant Vice President | Morrisville | (3 months ended) | (9 months ended) | ||||||||||||||
Dwight A. Davis | Justin P. Lavely | Robyn A. Masi-Vice President | Stowe | Interest income | $ | 6,118 | $ | 5,728 | $ | 17,350 | $ | 17,093 | |||||||
Kirk Dwyer | Nancy J. Poulos | Sherrie A. Menard-Assistant Vice President | Morrisville | Interest expense | 1,016 | 1,030 | 2,979 | 3,122 | |||||||||||
ALL- | Marsha A. Mongeon-Sr. Vice President, CFO | Morrisville | Net interest income | 5,102 | 4,698 | 14,371 | 13,971 | ||||||||||||
Kenneth D. Gibbons | Karen Carlson Noyes-Vice President | Morrisville | Provision for loan losses | 150 | 200 | 450 | 380 | ||||||||||||
Barbara A. Olden-Vice President | St. Johnsbury | Net interest income after | 4,952 | 4,498 | 13,921 | 13,591 | |||||||||||||
Deborah J. Partlow-Asst. VP, Sr. Trust Officer | Morrisville | provision for loan losses | |||||||||||||||||
Bradley S. Prior-Assistant Treasurer | Morrisville | Trust income | 132 | 126 | 403 | 343 | |||||||||||||
Craig S. Provost-Vice President | Stowe | Noninterest income | 1,880 | 1,430 | 4,657 | 3,853 | |||||||||||||
Robert J. Richardson-Vice President | Morrisville | Noninterest expenses: | |||||||||||||||||
David S. Silverman-President | Morrisville | Salaries & wages | 2,149 | 1,682 | 5,778 | 4,839 | |||||||||||||
Judy R. Smith-Assistant Vice President | St. Albans | Pension & employee benefits | 749 | 698 | 2,345 | 2,133 | |||||||||||||
John H. Steel-Secretary | Morrisville | Occupancy expense, net | 277 | 224 | 832 | 700 | |||||||||||||
Curtis C. Swan-Assistant Vice President | Fairfax | Equipment expense | 317 | 280 | 887 | 771 | |||||||||||||
JoAnn A. Tallman-Assistant Secretary | Morrisville | Other expenses | 1,648 | 1,253 | 4,887 | 3,848 | |||||||||||||
Francis E. Welch-Assistant Vice President | Morrisville | Total | 5,140 | 4,137 | 14,729 | 12,291 | |||||||||||||
Martha J. Wilkins-Assistant Treasurer | Lyndonville | Income before taxes | 1,824 | 1,917 | 4,252 | 5,496 | |||||||||||||
Lorraine G. Willett-Assistant Vice President | Morrisville | Income tax expense | 392 | 457 | 761 | 1,291 | |||||||||||||
Net income | $ | 1,432 | $ | 1,460 | $ | 3,491 | $ | 4,205 | |||||||||||
Earnings per share | $ | 0.32 | $ | 0.32 | $ | 0.78 | $ | 0.94 | |||||||||||
Book value per share | $ | 9.56 | $ | 9.54 | |||||||||||||||