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EX-99.1 - EXHIBIT 99.1 CORTESY PDF COPY - UNION BANKSHARES INC | exhibit991shrptcourtesy1q.pdf |
8-K - BODY OF FORM 8-K - UNION BANKSHARES INC | form8-k1stqtr2012shrpt.htm |
Exhibit 99.1
ABOUT UNION BANKSHARES | SHAREHOLDER ASSISTANCE AND INVESTOR INFORMATION | May 9, 2012 | ||||||
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 northwestern 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 has recently grown through acquisition and operates 17 banking offices, a loan center and 34 ATMs. | DEAR SHAREHOLDER, The first quarter showed significant improvement over last year as assets increased 20.8% and net income 19.4% due to both organic growth and the impact of the branches acquired in May last year. On the lending side, we continue to experience brisk resi-dential mortgage activity in refinance, purchase and con-struction loans. Interest rates have continued to remain very low, which has contributed to the loan volume. We sold into the secondary market $22.4 million in residential mortgages in the past quarter vs. $16.7 million in the first quarter last year. We remain concerned about long-term interest rate risks when interest rates trend upward, and they will eventually, fixed rate loans will negatively impact net interest income. Residential construction loans outstanding have more than doubled this spring to $15.1 million and are expected to increase more as we move into the height of the Vermont/Northern New Hampshire construction season. On March 30th we finalized the purchase of the Littleton Main Street building in which our branch office is located. We acquired the branch office in May 2011 and with the lease up for renewal this year, it made more sense to own the entire building than to lease only a portion. With the purchase we also acquired the leases of four long-term tenants which complement nicely our branch operation in this 18,000 S.F. building. There has been much said about the unusually mild winter, both locally and nationally. Preliminary statistics estimate "skier days" are off 15% nationally. In addition, snow mobile and cross country ski revenues were below normal. Fortunately, last summer and fall tourism revenue in our markets were strong, which helps, to some degree, offset the effects of the below average snowfall. The day of the annual meeting is also the culmination of our management succession plan announced in November 2010. Ken Gibbons will step down as Chief Executive Officer of your Company and its subsidiary at the close of business on May 16th, and David Silverman will assume CEO responsibilities. We hope you will join us immediately following the 4 PM annual meeting at Spruce Camp Base Lodge, Stowe Mountain Resort for a celebration. Enclosed is your dividend check or advice of deposit, rep-resenting a dividend of $0.25 per share to shareholders of record April 28, 2012, and payable May 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 $555 million provides the financial strength to successfully serve its constituents. | ||||||||
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 examinations 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 |
First Quarter Financial Report | CONSOLIDATED BALANCE SHEETS (unaudited, in thousands) | ||||||||||||
ASSETS | March 31, 2012 | March 31, 2011 | |||||||||||
DIRECTORS - UNION BANKSHARES, INC. | OFFICERS - UNION BANK | Cash and due from banks | $ | 5,050 | $ | 5,154 | |||||||
William J. Andreas-Vice President | Littleton | Federal funds sold & overnight deposits | 14,443 | 24,842 | |||||||||
Kenneth D. Gibbons-Chairman | David S. Silverman | Tracy Pierce Ash-Assistant Treasurer | Littleton | Interest bearing deposits in banks | 23,482 | 13,065 | |||||||
Cynthia D. Borck | John H. Steel | Rhonda L. Bennett-Vice President | Morrisville | Investment securities | 46,198 | 25,987 | |||||||
Steven J. Bourgeois | Schuyler W. Sweet | Jessica L. Bunnell-Residential Loan Officer | St. Johnsbury | Loans held for sale | 12,084 | 2,614 | |||||||
Timothy W. Sargent | Neil J. Van Dyke | Therese H. Butler-Assistant Vice President | Morrisville | Loans, net | 425,640 | 369,290 | |||||||
Stacey L.B. Chase-Assistant Treasurer | Morrisville | Reserve for loan losses | (4,406 | ) | (3,908 | ) | |||||||
Jeffrey S. Ciochetto-Senior Vice President | Morrisville | Premises and equipment, net | 10,368 | 7,896 | |||||||||
DIRECTORS - UNION BANK | Jeffrey G. Coslett-Senior Vice President | Morrisville | Other real estate owned, net | 1,426 | 1,410 | ||||||||
John Currier-Assistant Vice President | Groveton | Accrued interest & other assets | 21,117 | 13,302 | |||||||||
Kenneth D. Gibbons-Chairman | David S. Silverman | Michael C. Curtis-Vice President | St. Albans | Total Assets | $ | 555,402 | $ | 459,652 | |||||
Cynthia D. Borck | John H. Steel | Peter J. Eley-SVP, Managing Trust Officer | Morrisville | LIABILITIES & SHAREHOLDERS' EQUITY | |||||||||
Steven J. Bourgeois | Schuyler W. Sweet | Kenneth D. Gibbons-Chairman & CEO | Morrisville | Noninterest bearing deposits | $ | 75,511 | $ | 61,362 | |||||
Timothy W. Sargent | Neil J. Van Dyke | Don D. Goodhue-Vice President | Morrisville | Interest bearing deposits | 249,312 | 195,136 | |||||||
Melissa A. Greene-Asst. Vice President | Hardwick | Time deposits | 153,187 | 127,521 | |||||||||
Karyn J. Hale-Vice President | Morrisville | Borrowed funds | 27,281 | 26,892 | |||||||||
OFFICERS - UNION BANKSHARES, INC. | Claire A. Hindes-Asst. Vice President | Morrisville | Accrued interest & other liabilities | 9,617 | 6,960 | ||||||||
Robert D. Hofmann-Senior Vice President | Morrisville | Common stock | 9,847 | 9,847 | |||||||||
Kenneth D. Gibbons-Chairman & CEO | Patricia N. Hogan-Vice President | Morrisville | Additional paid-in capital | 280 | 267 | ||||||||
David S. Silverman-President | Tracey D. Holbrook-Regional Vice Pres. | St. Johnsbury | Retained earnings | 38,498 | 37,537 | ||||||||
Marsha A. Mongeon-Vice President/Treasurer/CFO | Lura L. Jacques-Asst. VP, Trust Officer | St. Albans | Accumulated other comprehensive loss | (4,295 | ) | (2,047 | ) | ||||||
John H. Steel-Secretary | Lynne P. Jewett-Assistant Vice President | Morrisville | Treasury stock at cost | (3,836 | ) | (3,823 | ) | ||||||
JoAnn A. Tallman-Assistant Secretary | Stephen H. Kendall-Vice President | Morrisville | Total Liabilities & Shareholders' Equity | $ | 555,402 | $ | 459,652 | ||||||
Dennis J. Lamothe-Vice President | St. Johnsbury | Standby letters of credit were $1,949,000 and $1,433,000 at March 31, 2012 and 2011, respectively. | |||||||||||
Susan F. Lassiter-Vice President | Jeffersonville | ||||||||||||
REGIONAL ADVISORY BOARDS | Christine S. Latulip-Regional Vice President | Littleton | CONSOLIDATED STATEMENTS OF INCOME (unaudited, in thousands) | ||||||||||
Edward L. Levite-Senior Loan Originator | So. Burlington | March 31, 2012 | March 31, 2011 | ||||||||||
NORTHERN NEW HAMPSHIRE | Virginia M. Locke-Assistant Vice President | Littleton | |||||||||||
Judy F. Aydelott | Schuyler W. Sweet | Carrie R. Locklin-Assistant Vice President | Morrisville | Interest income | $ | 6,196 | $ | 5,498 | |||||
Joel S. Bourassa | Norrine A. Williams | Robyn A. Masi-Vice President | Stowe | Interest expense | 910 | 961 | |||||||
Stanley T. Fillion | Sherrie A. Menard-Assistant Vice President | Morrisville | Net interest income | 5,286 | 4,537 | ||||||||
Marsha A. Mongeon-Sr. Vice President, CFO | Morrisville | Provision for loan losses | 180 | 150 | |||||||||
ST. ALBANS | Karen Carlson Noyes-Vice President | Morrisville | Net interest income after | 5,106 | 4,387 | ||||||||
Steven J. Bourgeois | Daniel J. Luneau | Barbara A. Olden-Vice President | St. Johnsbury | provision for loan losses | |||||||||
Coleen K. Kohaut | Samuel H. Ruggiano | Deborah J. Partlow-Asst. VP, Sr. Trust Officer | Morrisville | Trust income | 147 | 132 | |||||||
Bradley S. Prior-Assistant Treasurer | Morrisville | Noninterest income | 1,756 | 1,269 | |||||||||
ST. JOHNSBURY | Craig S. Provost-Vice President | Stowe | Noninterest expenses: | ||||||||||
J.R. Alexis Clouatre | Rosemary H. Gingue | Robert J. Richardson-Vice President | Morrisville | Salaries & wages | 2,234 | 1,730 | |||||||
Dwight A. Davis | Justin P. Lavely | David S. Silverman-President | Morrisville | Pension & employee benefits | 1,058 | 817 | |||||||
Kirk Dwyer | Nancy J. Poulos | Judy R. Smith-Assistant Vice President | St. Albans | Occupancy expense, net | 344 | 290 | |||||||
John H. Steel-Secretary | Morrisville | Equipment expense | 345 | 296 | |||||||||
ALL: Kenneth D. Gibbons | Curtis C. Swan-Assistant Vice President | Fairfax | Other expenses | 1,560 | 1,447 | ||||||||
JoAnn A. Tallman-Assistant Secretary | Morrisville | Total | 5,541 | 4,580 | |||||||||
Francis E. Welch-Assistant Vice President | Morrisville | Income before taxes | 1,468 | 1,208 | |||||||||
Martha J. Wilkins-Assistant Treasurer | Lyndonville | Income tax expense | 241 | 180 | |||||||||
Lorraine G. Willett-Assistant Vice President | Morrisville | Net income | $ | 1,227 | $ | 1,028 | |||||||
Earnings per share | $ | 0.28 | $ | 0.23 | |||||||||
Book value per share | $ | 9.09 | $ | 9.37 |