Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 COURTESY PDF COPY - UNION BANKSHARES INC | exhibit991shrpt4qcourtesy.pdf |
| EX-10.1 - EXHIBIT 10.1 - UNION BANKSHARES INC | exhibit101stipp.htm |
| 8-K - BODY OF FORM 8-K - UNION BANKSHARES INC | form8-k4thqtr2011andstipp.htm |
Exhibit 99.1
ABOUT UNION BANKSHARES | SHAREHOLDER ASSISTANCE AND INVESTOR INFORMATION | DEAR SHAREHOLDER, | February 9, 2012 | |||||
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 are pleased to report 2011 was a year of significant growth for your Company, with increases in deposits of 25.7%, assets of 21.7% and loans of 12.4%. These increases were due in large part to the acquisition of the three New Hampshire branches in late May, but also through organic growth in a number of the markets we serve. This growth is in addition to the $80 million in residential loans originated and sold into the secondary market to generate fee income and reduce long term interest rate risk. Income generated from these activities was $1.75 million, net of delivery fees. Our total serviced loan portfolio at year end was $637 million, of which $209 million was serviced for others. Needless to say, with interest rates remaining at historic lows through the year, residential refinancing activity was strong yet again. How long interest rates will remain at these levels is the subject of much speculation; however we do not believe there will be any substantial change in the near future. Borrowers are happy, depositors less so as their deposits are not yielding the returns desired. The acquisition of the New Hampshire branches also brought one-time expenses of $420 thousand. These, coupled with an increase in the provision for loan losses mainly due to loan growth, salaries and benefits, and occupancy expense initially impacted earnings. However, as you can see from the fourth quarter results, the effects of the return on the growth over the one-time expenses during the year generated a significant earnings improvement for the quarter. Typically our fourth quarter is strongest for earnings. Looking back on 2011 it is appropriate to comment on the regulatory environment. As we all know, sweeping bank reform legislation has been enacted with new rules and requirements promulgated almost weekly. Banks will have no choice but to comply, add additional compliance staff and ensure the regulations, as they are written, are implemented. We believe there is opportunity in this environment for banks who take the lead in integrating these changes into their operations. Looking forward to 2012 we will focus on improving our interest income as we convert some of our short term, low yield investments into short to mid-term loans. Our plan also calls for further business development efforts in all our markets, as well as to review our efficiency and product offerings to ensure we remain competitive, profitable and a sound investment. Enclosed is your dividend check or advice of deposit, representing a dividend of $0.25 per share to shareholders of record January 28, 2012, and payable February 9, 2012. 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 $552 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 | |||||||
Fourth Quarter Financial Report | CONSOLIDATED BALANCE SHEETS (unaudited, in thousands) | ||||||||||||||||||
ASSETS | December 31, 2011 | December 31, 2010 | |||||||||||||||||
DIRECTORS - UNION BANKSHARES, INC. | OFFICERS - UNION BANK | Cash and due from banks | $ | 5,871 | $ | 5,447 | |||||||||||||
Kenneth D. Gibbons-Chairman | David S. Silverman | Tracy Pierce Ash-Assistant Treasurer | Littleton | Federal funds sold & overnight deposits | 18,510 | 8,845 | |||||||||||||
Cynthia D. Borck | John H. Steel | Rhonda L. Bennett-Vice President | Morrisville | Interest bearing deposits in banks | 24,020 | 14,041 | |||||||||||||
Steven J. Bourgeois | Schuyler W. Sweet | Therese H. Butler-Assistant Vice President | Morrisville | Investment securities | 46,954 | 24,280 | |||||||||||||
Timothy W. Sargent | Neil J. Van Dyke | Stacey L.B. Chase-Assistant Treasurer | Morrisville | Loans held for sale | 4,888 | 5,610 | |||||||||||||
Jeffrey S. Ciochetto-Senior Vice President | Morrisville | Loans, net | 424,496 | 376,460 | |||||||||||||||
DIRECTORS - UNION BANK | Jeffrey G. Coslett-Senior Vice President | Morrisville | Reserve for loan losses | (4,226 | ) | (3,754 | ) | ||||||||||||
Kenneth D. Gibbons-Chairman | David S. Silverman | John Currier-Assistant Vice President | Groveton | Premises and equipment, net | 9,163 | 7,842 | |||||||||||||
Cynthia D. Borck | John H. Steel | Michael C. Curtis-Vice President | St. Albans | Other real estate owned, net | 1,476 | 1,609 | |||||||||||||
Steven J. Bourgeois | Schuyler W. Sweet | Peter J. Eley-SVP, Managing Trust Officer | Morrisville | Accrued interest & other assets | 21,599 | 13,705 | |||||||||||||
Timothy W. Sargent | Neil J. Van Dyke | Kenneth D. Gibbons-Chairman & CEO | Morrisville | Total Assets | $ | 552,751 | $ | 454,085 | |||||||||||
Don D. Goodhue-Vice President | Morrisville | LIABILITIES & SHAREHOLDERS' EQUITY | |||||||||||||||||
OFFICERS - UNION BANKSHARES, INC. | Melissa A. Greene-Asst. Vice President | Hardwick | Noninterest bearing deposits | $ | 76,656 | $ | 64,526 | ||||||||||||
Kenneth D. Gibbons-Chairman & CEO | Karyn J. Hale-Vice President | Morrisville | Interest bearing deposits | 239,058 | 180,386 | ||||||||||||||
David S. Silverman-President | Claire A. Hindes-Asst. Vice President | Morrisville | Time deposits | 157,725 | 131,748 | ||||||||||||||
Marsha A. Mongeon-Vice President/Treasurer/CFO | Robert D. Hofmann-Senior Vice President | Morrisville | Borrowed funds | 29,014 | 28,986 | ||||||||||||||
John H. Steel-Secretary | Patricia N. Hogan-Vice President | Morrisville | Accrued interest & other liabilities | 9,959 | 6,715 | ||||||||||||||
JoAnn A. Tallman-Assistant Secretary | Tracey D. Holbrook-Regional Vice Pres. | St. Johnsbury | Common stock | 9,847 | 9,843 | ||||||||||||||
Lura L. Jacques-Asst. VP, Trust Officer | St. Albans | Additional paid-in capital | 276 | 244 | |||||||||||||||
REGIONAL ADVISORY BOARDS | Lynne P. Jewett-Assistant Vice President | Morrisville | Retained earnings | 38,385 | 37,623 | ||||||||||||||
NORTHERN NEW HAMPSHIRE | Stephen H. Kendall-Vice President | Morrisville | Accumulated other comprehensive loss | (4,346 | ) | (2,163 | ) | ||||||||||||
Judy F. Aydelott | Schuyler W. Sweet | Susan O. Laferriere-Vice President | St. Johnsbury | Treasury stock at cost | (3,823 | ) | (3,823 | ) | |||||||||||
Joel S. Bourassa | Norrine A. Williams | Dennis J. Lamothe-Vice President | St. Johnsbury | Total Liabilities & Shareholders' Equity | $ | 552,751 | $ | 454,085 | |||||||||||
Stanley T. Fillion | Susan F. Lassiter-Vice President | Jeffersonville | Standby letters of credit were $1,811,000 and $1,494,000 at December 31, 2011 and 2010, respectively. | ||||||||||||||||
Christine S. Latulip-Regional Vice President | Littleton | ||||||||||||||||||
ST. ALBANS | Edward L. Levite-Senior Loan Originator | So. Burlington | CONSOLIDATED STATEMENTS OF INCOME (unaudited, in thousands) | ||||||||||||||||
Steven J. Bourgeois | Daniel J. Luneau | Virginia M. Locke-Assistant Vice President | Littleton | 12/31/11 | 12/31/10 | 12/31/11 | 12/31/10 | ||||||||||||
Coleen K. Kohaut | Samuel H. Ruggiano | Carrie R. Locklin-Assistant Vice President | Morrisville | (3 months ended) | (12 months ended) | ||||||||||||||
Robyn A. Masi-Vice President | Stowe | Interest income | $ | 6,318 | $ | 5,815 | $ | 23,668 | $ | 22,907 | |||||||||
ST. JOHNSBURY | Sherrie A. Menard-Assistant Vice President | Morrisville | Interest expense | 930 | 996 | 3,908 | 4,117 | ||||||||||||
J.R. Alexis Clouatre | Rosemary H. Gingue | Marsha A. Mongeon-Sr. Vice President, CFO | Morrisville | Net interest income | 5,388 | 4,819 | 19,760 | 18,790 | |||||||||||
Dwight A. Davis | Justin P. Lavely | Karen Carlson Noyes-Vice President | Morrisville | Provision for loan losses | 325 | 140 | 775 | 520 | |||||||||||
Kirk Dwyer | Nancy J. Poulos | Barbara A. Olden-Vice President | St. Johnsbury | Net interest income after | 5,063 | 4,679 | 18,985 | 18,270 | |||||||||||
ALL- | Deborah J. Partlow-Asst. VP, Sr. Trust Officer | Morrisville | provision for loan losses | ||||||||||||||||
ALL: Kenneth D. Gibbons | Bradley S. Prior-Assistant Treasurer | Morrisville | Trust income | 145 | 138 | 548 | 482 | ||||||||||||
Craig S. Provost-Vice President | Stowe | Noninterest income | 1,926 | 1,372 | 6,583 | 5,159 | |||||||||||||
Robert J. Richardson-Vice President | Morrisville | Noninterest expenses: | |||||||||||||||||
David S. Silverman-President | Morrisville | Salaries & wages | 2,021 | 1,720 | 7,762 | 6,559 | |||||||||||||
Judy R. Smith-Assistant Vice President | St. Albans | Pension & employee benefits | 767 | 695 | 3,154 | 2,828 | |||||||||||||
John H. Steel-Secretary | Morrisville | Occupancy expense, net | 295 | 237 | 1,127 | 937 | |||||||||||||
Curtis C. Swan-Assistant Vice President | Fairfax | Equipment expense | 338 | 285 | 1,227 | 1,057 | |||||||||||||
JoAnn A. Tallman-Assistant Secretary | Morrisville | Other expenses | 1,623 | 1,479 | 6,508 | 5,240 | |||||||||||||
Francis E. Welch-Assistant Vice President | Morrisville | Total | 5,044 | 4,416 | 19,778 | 16,621 | |||||||||||||
Martha J. Wilkins-Assistant Treasurer | Lyndonville | Income before taxes | 2,090 | 1,773 | 6,338 | 7,290 | |||||||||||||
Lorraine G. Willett-Assistant Vice President | Morrisville | Income tax expense | 357 | 391 | 1,119 | 1,703 | |||||||||||||
Net income | $ | 1,733 | $ | 1,382 | $ | 5,219 | $ | 5,587 | |||||||||||
Earnings per share | $ | 0.39 | $ | 0.31 | $ | 1.17 | $ | 1.25 | |||||||||||
Book value per share | $ | 9.05 | $ | 9.36 | |||||||||||||||