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| EX-99.1 - EXHIBIT 99.1 COURTESY PDF COPY - UNION BANKSHARES INC | unb1stquartershreport2017.pdf |
| 8-K - BODY OF FORM 8-K - UNION BANKSHARES INC | form8-k1stqtr2017shrpt.htm |
Exhibit 99.1
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May 10, 2017 | |||||||||
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We are pleased to present our First Quarter 2017 financial results. Consolidated net income for the first quarter of 2017 was $1.9 million, or $0.43 per share, compared to $1.8 million, or $0.39 per share, for the same period in 2016. Net interest income was $6.3 million for the quarter ended March 31, 2017, compared to $5.9 million for the same period in 2016, a 6.2% increase. The positive trend in net interest income was supplemented by a reduction in the provision for loan losses of $75 thousand and an increase of $47 thousand in noninterest income for the quarter ended March 31, 2017 compared to the quarter ended March 31, 2016. These positive variances were partially offset by an increase in noninterest expenses of $238 thousand, or 4.2%, for the comparison periods. Total assets increased $35.6 million, or 5.6% to reach $676.5 million as of March 31, 2017 from $640.8 million as of March 31, 2016. Total loans increased $21.2 million, or 4.1% to $541.0 million as of March 31, 2017 compared to $519.8 million as of March 31, 2016. Total deposits reached $582.1 million compared to prior year of $559.0 million, or growth of $23.1 million, or 4.1%. The Company had total capital of $57.2 million with a book value per share of $12.81 as of March 31, 2017 compared to $54.7 million and $12.26 per share as of March 31, 2016. Of particular note, the amount of total loans serviced by the bank exceeded $1.0 billion for the first time at the end of the first quarter. Our strategy of selling primarily residential loans allows us to generate gains on loan sales and recurring servicing revenue while reducing our exposure to long term fixed rates. In contrast to last year, this winter brought cold weather and snow, improving the regional travel and tourism industry’s results significantly. Likewise, the weather cooperated for our local maple sugar producers in Vermont and New Hampshire. Other significant developments bode well for our region. | The announcement that Vail Resorts will buy Stowe Mountain Resort and honor its Epic Pass (season pass) has generated additional interest in the area among entrepreneurs and investors who anticipate a generally busier resort community. The Northeast Kingdom EB-5/Jay Peak disaster seems to be sorting itself out with the opening of the new Hotel at Burke Resort and promises from the Receiver that all contractors who worked on Jay Peak and Burke would be made whole. While the weak Canadian Dollar has reduced some cross border trade and some companies are experiencing difficulty in recruiting staff, for the most part the economic environment is positive. Since 2008 we have seen gradual improvement of this market segment, generally strengthening west to east over time. The market continues to improve across our region, with inventory equilibrium having swung from too much inventory to too little inventory. Though this year started slowly because of the weather, we have seen an uptick in construction loans as folks are opting to build because they cannot find housing to buy. This bodes well for the construction trades. We would like to extend an invitation to you to join us at our 126th Annual Meeting to be held on May 17, 2017 at 3:00pm at the Charlmont Restaurant meeting room located at 116 VT Route 15W, Morrisville, Vermont. On April 19, 2017, the Board of Directors declared a regular quarterly cash dividend $0.29 per share payable May 10, 2017 to shareholders of record as of April 29, 2017. 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 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, three loan centers and several ATMs throughout its geographical footprint. Union Bank has been helping people buy homes and local businesses create jobs in area communities since opening its doors over 125 years ago. Union Bank has earned an exceptional reputation for residential lending programs and has recently been named, for the fourth consecutive year, the USDA RD Vermont Home Lender of the year. Union Bank has also been designated as an SBA Preferred lender for its participation in small business lending. | |||||||||
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 | |||||||||||||||||||||||
Neil J. Van Dyke-Vice Chairman | David S. Silverman - President & CEO | |||||||||||||||||||||||
ASSETS | MARCH 31, 2017 | MARCH 31, 2016 | MARCH 31, 2017 | MARCH 31, 2016 | Steven J. Bourgeois | Karyn J. Hale - Chief Financial Officer | ||||||||||||||||||
Dawn D. Bugbee | John H. Steel - Secretary | |||||||||||||||||||||||
(3 months ended) | ||||||||||||||||||||||||
John M. Goodrich | Kristy Adams Alfieri - Assistant Secretary | |||||||||||||||||||||||
Cash and Due from Banks | $ | 3,710 | $ | 4,130 | Interest Income | $ | 6,839 | $ | 6,448 | |||||||||||||||
Timothy W. Sargent | Jeffrey G. Coslett - Vice President | |||||||||||||||||||||||
Federal Funds Sold & Overnight Deposits | 21,257 | 9,887 | Interest Expense | 537 | 513 | David S. Silverman | ||||||||||||||||||
Net Interest Income | 6,302 | 5,935 | John H. Steel | REGIONAL ADVISORY BOARD MEMBERS | ||||||||||||||||||||
Interest Bearing Deposits in Banks | 8,508 | 12,354 | Schuyler W. Sweet | |||||||||||||||||||||
Provision for Loan Losses | — | 75 | ||||||||||||||||||||||
Investment Securities | 68,638 | 62,733 | Net Interest Income After Provision for Loan Losses | 6,302 | 5,860 | Union Bank | Michael R. Barrett - St. Johnsbury | |||||||||||||||||
Loans Held for Sale | 2,847 | 6,725 | Joel S. Bourassa - Northern NH | |||||||||||||||||||||
Trust Income | 178 | 172 | DIRECTORS | Steven J. Bourgeois - St. Albans | ||||||||||||||||||||
Loans, net | 538,171 | 513,123 | Noninterest Income | 2,055 | 2,014 | Kenneth D. Gibbons-Chairman | Stanley T. Fillion - Northern NH | |||||||||||||||||
Neil J. Van Dyke-Vice Chairman | Rosemary H. Gingue - St. Johnsbury | |||||||||||||||||||||||
Reserve for Loan Losses | (5,192 | ) | (5,125 | ) | Noninterest Expenses: | Steven J. Bourgeois | John M. Goodrich - St. Johnsbury | |||||||||||||||||
Salaries & Wages | 2,568 | 2,458 | Dawn D. Bugbee | Richard L. Isabelle - St. Johnsbury | ||||||||||||||||||||
Premises and Equipment, net | 13,272 | 13,037 | John M. Goodrich | Christopher M. Knapp - Northern NH | ||||||||||||||||||||
Pension & Employee Benefits | 879 | 943 | Nancy C. Putnam | Coleen K. Kohaut - St. Albans | ||||||||||||||||||||
Accrued Interest & Other Assets | 25,240 | 23,955 | Timothy W. Sargent | Justin P. Lavely - St. Johnsbury | ||||||||||||||||||||
Occupancy Expense, net | 390 | 317 | David S. Silverman | Daniel J. Luneau - St. Albans | ||||||||||||||||||||
Total Assets | $ | 676,451 | $ | 640,819 | John H. Steel | Mary K. Parent - St. Johnsbury | ||||||||||||||||||
Equipment Expense | 534 | 509 | Schuyler W. Sweet | Samuel H. Ruggiano - St. Albans | ||||||||||||||||||||
David S. Silverman - All | ||||||||||||||||||||||||
Other Expenses | 1,570 | 1,476 | Schuyler W. Sweet - Northern NH | |||||||||||||||||||||
Total | 5,941 | 5,703 | Union Bank Offices (ATMs at all Branch Locations) | |||||||||||||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY | MARCH 31, 2017 | MARCH 31, 2016 | ||||||||||||||||||||||
Income Before Taxes | 2,594 | 2,343 | ||||||||||||||||||||||
Income Tax Expense | 664 | 584 | VERMONT | |||||||||||||||||||||
Noninterest Bearing Deposits | $ | 110,087 | $ | 101,943 | ||||||||||||||||||||
Net income | $ | 1,930 | $ | 1,759 | Barre | Loan Center | ||||||||||||||||||
Interest Bearing Deposits | 369,451 | 311,656 | 14 North Main Street | 802.476.0062 | ||||||||||||||||||||
Earnings per share | $ | 0.43 | $ | 0.39 | Danville | 421 Route 2 East | 802.684.2211 | |||||||||||||||||
Time Deposits | 102,527 | 145,405 | Fairfax | Jct. Routes 104 & 128 | 802.849.2600 | |||||||||||||||||||
Book Value Per Share | $ | 12.81 | $ | 12.26 | Hardwick | 103 VT Route 15 West | 802.472.8100 | |||||||||||||||||
Borrowed Funds | 31,727 | 21,883 | Jeffersonville | 5062 VT Route 15 | 802.644.6600 | |||||||||||||||||||
Johnson | 198 Lower Main Street | 802.635.6600 | ||||||||||||||||||||||
Accrued Interest & Other Liabilities | 5,489 | 5,257 | Lyndonville | 183 Depot Street | 802.626.3100 | |||||||||||||||||||
Morrisville | 20 Lower Main Street | 802.888.6600 | ||||||||||||||||||||||
Common Stock | 9,874 | 9,866 | 65 Northgate Plaza | 802.888.6860 | ||||||||||||||||||||
Newport | Loan Center | |||||||||||||||||||||||
Additional Paid-in Capital | 658 | 542 | 325 East Main Street | 802.334.0750 | ||||||||||||||||||||
St. Albans | 15 Mapleville Depot | 802.524.9000 | ||||||||||||||||||||||
Retained Earnings | 53,722 | 50,080 | St. Johnsbury | 364 Railroad Street | 802.748.3131 | |||||||||||||||||||
Accumulated Other Comprehensive Loss | (3,054 | ) | (1,790 | ) | 325 Portland Street | 802.748.3121 | ||||||||||||||||||
 | S. Burlington | Loan Center | ||||||||||||||||||||||
30 Kimball Avenue | 802.865.1000 | |||||||||||||||||||||||
Treasury Stock at Cost | (4,030 | ) | (4,023 | ) | Stowe | 47 Park Street | 802.253.6600 | |||||||||||||||||
NEW HAMPSHIRE | ||||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 676,451 | $ | 640,819 | Groveton | 3 State Street | 603.636.1611 | |||||||||||||||||
Standby letters of credit were $1,574,000 and $1,624,000 at March 31, 2017 and 2016, 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 | ||||||||||||||||||||||