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| EX-99.1 - EXHIBIT 99.1 COURTESY PDF COPY - UNION BANKSHARES INC | unb4thquartershreport2015.pdf |
| 8-K - BODY OF FORM 8-K - UNION BANKSHARES INC | form8-k4thqtr2015shrpt.htm |
Exhibit 99.1
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February 9, 2016 | |||||||||
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We are pleased to provide you with a brief summary of your company’s financial results for the year ended December 31, 2015. Net income for the year was $7.9 million, or $1.77 per share, compared to $7.7 million, or $1.73 per share for 2014. Results for 2015 were positively impacted by increases in net interest income of $217 thousand and in noninterest income of $883 thousand. These positive variances were partially offset by an increase in the provision for loan losses of $205 thousand, noninterest expenses of $710 thousand and the provision for income taxes of $206 thousand. During 2015 total assets grew a modest 0.8% to $628.9 million. Total loans outpaced total asset growth as we used excess liquidity to fund loan demand. Total loans increased 3.2% to $506.7 million as of December 31, despite sales of qualifying residential mortgages to the secondary market totaling $131.1 million for 2015 compared to sales of $94.7 million for 2014. Loans serviced for others grew $56.9 million to $422.3 million as of December 31, 2015 from $365.4 million as the prior year end. The Company had total capital of $53.6 million with a book value per share of $12.02 as of December 31, 2015 compared to $51.4 million and $11.54 per share at December 31, 2014. We would like to offer a few observations about our 2015 financial performance. In general we were pleased with our net income growth, despite it being a modest 2.3% over last year. We would have liked our assets to increase at a more rapid pace than they did in 2015, though a modest reduction in borrowings did mask asset growth a bit. As a result our 2016 business plan calls for increasing our core deposits and overall assets at a more robust pace than in 2015. Finally, we are very pleased with our loan portfolio quality measurements. Traditionally we have maintained a high quality portfolio, but at year end our delinquent loan measurements were better than usual. Our net charge o s for all of 2015 were $42 thousand, good results for a loan portfolio exceeding $500 million. This is probably an apt place to remind our shareholders that past performance does not guarantee future results. | While our local economy is relatively diverse we still rely on visitors to our region spending money on lodging, restaurants, attractions and retailers. Our ski areas have invested literally millions of dollars on enhancing their snow making operations to protect their revenues when snow does not fall. Christmas Eve and Christmas Day brought temperatures in the mid-sixties, essentially melting all of the snow we had and shutting down snow guns throughout the region. We have had poor December’s in the past and will again. Our local businesses are used to adapting to the vagaries of weather and visitor behavior. That said, a poor December will put some strain on the tourism industry and its employees as attempts are made to cut costs and manage diminished cash flow. Inevitably there will be businesses that suffer more than others. We too have managed through difficult tourism seasons and will continue to work with our customers to assist those who are viable to manage through the short term and prosper over the long term. Outside of the poor weather and its effect on the tourism industry, the local economy seems to be holding its own, with some level of improvement year over year. There seems to be a major disconnect between the real economy and stock markets. If we were to believe the message that Wall Street seems to be sending, we would anticipate a slowing, difficult economy over the next months and years. Yet regionally we don’t sense movement in this direction, in fact we sense the opposite. With the mixed signals we are receiving we will continue to operate your company conservatively though opportunistically, seeking growth when it is profitable to do so. Enclosed please find your dividend check or advice of deposit representing a dividend of $.27 per share. | ||||||||
 | 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: |  | |||||||
TRANSFER AGENT: | |||||||||
Broadridge Corporate Issuer Solutions, Inc. P.O. Box 1342 Brentwood, NY 11717 (866)-321-8022 or (720)-378-5956 E-mail: shareholder@broadridge.com | |||||||||
NASDAQ STOCK MARKET | |||||||||
Ticker Symbol: UNB Corporate Name: Union Bankshares, Inc. Corporate Address: 20 Lower Main Street PO Box 667 Morrisville, VT 05661-0667 Investor Relations: UBLOCAL.COM | |||||||||
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Kenneth D. Gibbons Chairman | 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 17 banking offices and two loan centers and several ATMs throughout its geographical footprint. Union Bank has earned an outstanding reputation for residential lending programs and has recently been named, for the third consecutive year, the USDA RD Vermont lender of the year. Union Bank is also an SBA Preferred lender and has an outstanding Community Reinvestment Act rating. | |||||||||
Consolidated Balance Sheets (unaudited, in thousands) | Consolidated Statements of Income (unaudited, in thousands) | Union Bankshares, Inc. | |||||||||||||||||||||||||||||
DIRECTORS | OFFICERS | ||||||||||||||||||||||||||||||
Kenneth D. Gibbons-Chairman | Kenneth D. Gibbons - Chairman | ||||||||||||||||||||||||||||||
Steven J. Bourgeois | David S. Silverman - President & CEO | ||||||||||||||||||||||||||||||
ASSETS | DEC. 31, 2015 | DEC. 31, 2014 | DEC. 31, 2015 | DEC. 31, 2014 | DEC. 31, 2015 | DEC. 31, 2014 | John M. Goodrich | Karyn J. Hale - Chief Financial Officer | |||||||||||||||||||||||
Timothy W. Sargent | John H. Steel - Secretary | ||||||||||||||||||||||||||||||
(3 months ended) | (12 months ended) | ||||||||||||||||||||||||||||||
David S. Silverman | Kristy Adams Alfieri - Assistant Secretary | ||||||||||||||||||||||||||||||
Cash and Due from Banks | $ | 4,217 | $ | 4,822 | Interest Income | $ | 6,378 | $ | 6,298 | $ | 25,144 | $ | 24,852 | ||||||||||||||||||
John H. Steel | Jeffrey G. Coslett - Vice President | ||||||||||||||||||||||||||||||
Federal Funds Sold & Overnight Deposits | 13,744 | 36,922 | Interest Expense | 478 | 521 | 2,025 | 2,155 | Schuyler W. Sweet | |||||||||||||||||||||||
Net Interest Income | 5,900 | 5,777 | 23,119 | 22,697 | Neil J. Van Dyke | ||||||||||||||||||||||||||
Interest Bearing Deposits in Banks | 12,753 | 12,252 | Provision for Loan Losses | 150 | 45 | 550 | 345 | REGIONAL ADVISORY BOARD MEMBERS | |||||||||||||||||||||||
Union Bank | |||||||||||||||||||||||||||||||
Investment Securities | 59,327 | 52,964 | Net Interest Income After Provision for Loan Losses | 5,750 | 5,732 | 22,569 | 22,352 | ||||||||||||||||||||||||
Loans Held for Sale | 5,635 | 10,743 | DIRECTORS | ||||||||||||||||||||||||||||
Trust Income | 181 | 177 | 719 | 726 | Kenneth D. Gibbons-Chairman | Michael R. Barrett - St. Johnsbury | |||||||||||||||||||||||||
Loans, net | 501,021 | 480,333 | Noninterest Income | 2,217 | 1,944 | 9,073 | 8,183 | Steven J. Bourgeois | Joel S. Bourassa - Northern NH | ||||||||||||||||||||||
Dawn D. Bugbee | Steven J. Bourgeois - St. Albans | ||||||||||||||||||||||||||||||
Reserve for Loan Losses | (5,201 | ) | (4,694 | ) | Noninterest Expenses: | John M. Goodrich | Stanley T. Fillion - Northern NH | ||||||||||||||||||||||||
Salaries & Wages | 2,437 | 2,222 | 9,517 | 8,916 | Timothy W. Sargent | Rosemary H. Gingue - St. Johnsbury | |||||||||||||||||||||||||
Premises and Equipment, net | 13,055 | 11,853 | David S. Silverman | John M. Goodrich - St. Johnsbury | |||||||||||||||||||||||||||
Pension & Employee Benefits | 735 | 663 | 2,977 | 2,725 | John H. Steel | Richard L. Isabelle - St. Johnsbury | |||||||||||||||||||||||||
Other Real Estate Owned, net | — | 297 | Schuyler W. Sweet | Christopher M. Knapp - Northern NH | |||||||||||||||||||||||||||
Occupancy Expense, net | 293 | 293 | 1,279 | 1,199 | Neil J. Van Dyke | Coleen K. Kohaut - St. Albans | |||||||||||||||||||||||||
Accrued Interest & Other Assets | 24,328 | 18,571 | Justin P. Lavely - St. Johnsbury | ||||||||||||||||||||||||||||
Equipment Expense | 529 | 441 | 1,875 | 1,674 | Daniel J. Luneau - St. Albans | ||||||||||||||||||||||||||
Total Assets | $ | 628,879 | $ | 624,063 | Mary K. Parent - St. Johnsbury | ||||||||||||||||||||||||||
Other Expenses | 1,690 | 1,958 | 6,656 | 7,080 | Samuel H. Ruggiano - St. Albans | ||||||||||||||||||||||||||
David S. Silverman - All | |||||||||||||||||||||||||||||||
Total | 5,684 | 5,577 | 22,304 | 21,594 | Schuyler W. Sweet - Northern NH | ||||||||||||||||||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY | DEC. 31, 2015 | DEC. 31, 2014 | |||||||||||||||||||||||||||||
Income Before Taxes | 2,464 | 2,276 | 10,057 | 9,667 | |||||||||||||||||||||||||||
Income Tax Expense | 537 | 391 | 2,179 | 1,973 | Union Bank Offices (ATMs at all Branch Locations) | ||||||||||||||||||||||||||
Noninterest Bearing Deposits | $ | 99,826 | $ | 90,385 | |||||||||||||||||||||||||||
Net income | $ | 1,927 | $ | 1,885 | $ | 7,878 | $ | 7,694 | |||||||||||||||||||||||
Interest Bearing Deposits | 310,203 | 302,722 | VERMONT | ||||||||||||||||||||||||||||
Earnings per share | $ | 0.44 | $ | 0.43 | $ | 1.77 | $ | 1.73 | Danville | 421 Route 2 East | 802-684-2211 | ||||||||||||||||||||
Time Deposits | 150,379 | 158,957 | Fairfax | Jct. Routes 104 & 128 | 802-849-2600 | ||||||||||||||||||||||||||
Book Value Per Share | $ | 12.02 | $ | 11.54 | Hardwick | 103 VT Route 15 West | 802-472-8100 | ||||||||||||||||||||||||
Borrowed Funds | 9,564 | 15,118 | Jeffersonville | 44 Main Street | 802-644-6600 | ||||||||||||||||||||||||||
Johnson | 198 Lower Main Street | 802-635-6600 | |||||||||||||||||||||||||||||
Accrued Interest & Other Liabilities | 5,339 | 5,447 | Lyndonville | 183 Depot Street | 802-626-3100 | ||||||||||||||||||||||||||
Morrisville | 20 Lower Main Street | 802-888-6600 | |||||||||||||||||||||||||||||
Common Stock | 9,864 | 9,859 | 65 Northgate Plaza | 802-888-6860 | |||||||||||||||||||||||||||
Newport | Loan Center | ||||||||||||||||||||||||||||||
Additional Paid in Capital | 501 | 418 | 325 East Main Street | 802-334-0750 | |||||||||||||||||||||||||||
St. Albans | 15 Mapleville Depot | 802-524-9000 | |||||||||||||||||||||||||||||
Retained Earnings | 49,524 | 46,462 | St. Johnsbury | 364 Railroad Street | 802-748-3131 | ||||||||||||||||||||||||||
Accumulated Other Comprehensive (Loss) Income | (2,302 | ) | (1,380 | ) | 325 Portland Street | 802-748-3121 | |||||||||||||||||||||||||
S. Burlington | Loan Center | ||||||||||||||||||||||||||||||
 | 30 Kimball Avenue | 802-865-1000 | |||||||||||||||||||||||||||||
Treasury Stock at Cost | (4,019 | ) | (3,925 | ) | Stowe | 47 Park Street | 802-253-6600 | ||||||||||||||||||||||||
NEW HAMPSHIRE | |||||||||||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 628,879 | $ | 624,063 | Groveton | 3 State Street | 603-636-1611 | ||||||||||||||||||||||||
Standby letters of credit were $1,614,000 and $1,725,000 at December 31, 2015 and 2014, respectively. | Littleton | 263 Dells Road | 603-444-7136 | ||||||||||||||||||||||||||||
76 Main Street | 603-444-5321 | ||||||||||||||||||||||||||||||
 | Lincoln | 135 Main Street | 603-745-4000 | ||||||||||||||||||||||||||||
N. Woodstock | 155 Main Street | 603-745-2488 | |||||||||||||||||||||||||||||