Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 COURTESY PDF COPY - UNION BANKSHARES INC | unb2ndquartershreport2017.pdf |
| 8-K - BODY OF FORM 8-K - UNION BANKSHARES INC | form8-k2ndqtr2017shrpt.htm |
Exhibit 99.1
 |  | ||||||||
August 9, 2017 | |||||||||
 |  | ||||||||
We are pleased to report your company’s financial results for the period ended June 30, 2017. Consolidated net income for the three months ended June 30, 2017 was $2.2 million, or $0.50 per share, compared to $2.1 million, or $0.48 per share, for the same period in 2016, and $4.2 million, or $0.93 per share, for the six months ended June 30, 2017, compared to $3.9 million, or $0.87 per share, for the same period in 2016. Net income for the second quarter of 2017 was up 4.1% for the same period in 2016 and is up 6.6% year to date compared to the same period in 2016. Our SEC quarterly filings have detailed information about your company. We work hard on these filings and recommend at least an occasional review of these documents. We can report a few highlights here in this letter. Year to date net interest income is up 6.5% compared to last year, while non-interest expense only rose by 2.6% year to date. Credit quality remains strong, with nonperforming loans amounting to only 0.57% of total loans, while net charge offs for the first half of year were $79 thousand. Year to date return on average assets was 1.23% and return on average equity was 14.60%. We have just completed another "muni season", our name for the municipal loan cycle. Most of the towns, villages and school districts we serve have a July 1 through June 30 fiscal year. In cases where we issue short term Tax Anticipation Notes, these notes must be paid to zero at least once per year. The typical cycle is that all of these TANs are paid to zero on June 30 and then nearly immediately re-advanced in early July. During part of May and most of June we field opportunities to bid on municipal lending opportunities and it can be very hectic for those involved. We take great pride in being the bank of account for many of our local municipalities, and we strive to retain and expand this business as part of our core deposit acquisition strategy. This year we had a good sized team involved in this process from pricing, to personal interfacing with municipal officials, to keeping track of bids and preparing new documentation. This year we did very well, and it was a terrific team effort. | Economically our region seems to be doing quite well. It appears that all of our region is now participating in the economic recovery, at least based on real estate activity. Travel and tourism is coming off of a very good winter and all reports indicate a robust beginning of the summer/fall season. The maple sugar crop was late but bountiful, reportedly the second largest crop in history. Not unlike other commodities, this has caused producer prices to drop a bit, but hopefully most make up for this financially in volume. There are a couple of clouds on the horizon. Traditional dairy farming remains a challenge, with prices paid to farmers being below the cost of production for many farmers. This is currently coupled by an extremely wet growing season thus far, preventing much hay production and stunting the growth of other feed stock. This forebodes high feed prices in the future. However our exposure to dairy is relatively limited. The other challenge is the weak Canadian dollar. This impacts travel and tourism to a degree, especially in our northern communities and around Lake Champlain. This by itself is not impacting us significantly. As a reminder, our Asset Management Group can assist you and your families with Trust Administration matters as well as Wealth Management. If you would like to discuss this further please contact Lura Jacques, our Managing Director at 802- 527-3220. On July 19, 2017, the Board of Directors declared a regular quarterly cash dividend $0.29 per share payable August 9, 2017 to shareholders of record as of July 28, 2017. Please find your dividend check or advice of remittance enclosed. 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 | |||||||||
 |  | ||||||||
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 | JUNE 30, 2017 | JUNE 30, 2016 | JUNE 30, 2017 | JUNE 30, 2016 | JUNE 30, 2017 | JUNE 30, 2016 | Steven J. Bourgeois | Karyn J. Hale - Chief Financial Officer | |||||||||||||||||||||||
Dawn D. Bugbee | John H. Steel - Secretary | ||||||||||||||||||||||||||||||
(3 months ended) | (6 months ended) | ||||||||||||||||||||||||||||||
John M. Goodrich | Kristy Adams Alfieri - Assistant Secretary | ||||||||||||||||||||||||||||||
Cash and Due from Banks | $ | 3,466 | $ | 4,220 | Interest Income | $ | 7,101 | $ | 6,688 | $ | 13,940 | $ | 13,136 | ||||||||||||||||||
Timothy W. Sargent | Jeffrey G. Coslett - Vice President | ||||||||||||||||||||||||||||||
Federal Funds Sold & Overnight Deposits | 10,969 | 19,979 | Interest Expense | 516 | 519 | 1,053 | 1,032 | David S. Silverman | |||||||||||||||||||||||
Net Interest Income | 6,585 | 6,169 | 12,887 | 12,104 | John H. Steel | REGIONAL ADVISORY BOARD MEMBERS | |||||||||||||||||||||||||
Interest Bearing Deposits in Banks | 8,356 | 10,213 | Schuyler W. Sweet | ||||||||||||||||||||||||||||
Provision for Loan Losses | — | 75 | — | 150 | |||||||||||||||||||||||||||
Investment Securities | 66,976 | 60,139 | Net Interest Income After Provision for Loan Losses | 6,585 | 6,094 | 12,887 | 11,954 | Union Bank | Michael R. Barrett - St. Johnsbury | ||||||||||||||||||||||
Loans Held for Sale | 5,406 | 6,749 | Joel S. Bourassa - Northern NH | ||||||||||||||||||||||||||||
Trust Income | 191 | 180 | 369 | 352 | DIRECTORS | Steven J. Bourgeois - St. Albans | |||||||||||||||||||||||||
Loans, net | 536,908 | 503,060 | Noninterest Income | 2,142 | 2,417 | 4,197 | 4,431 | Kenneth D. Gibbons-Chairman | Stanley T. Fillion - Northern NH | ||||||||||||||||||||||
Neil J. Van Dyke-Vice Chairman | Rosemary H. Gingue - St. Johnsbury | ||||||||||||||||||||||||||||||
Reserve for Loan Losses | (5,168 | ) | (5,226 | ) | Noninterest Expenses: | Steven J. Bourgeois | John M. Goodrich - St. Johnsbury | ||||||||||||||||||||||||
Salaries & Wages | 2,504 | 2,442 | 5,072 | 4,900 | Dawn D. Bugbee | Richard L. Isabelle - St. Johnsbury | |||||||||||||||||||||||||
Premises and Equipment, net | 13,233 | 13,090 | John M. Goodrich | Christopher M. Knapp - Northern NH | |||||||||||||||||||||||||||
Pension & Employee Benefits | 951 | 851 | 1,830 | 1,794 | Nancy C. Putnam | Coleen K. Kohaut - St. Albans | |||||||||||||||||||||||||
Accrued Interest & Other Assets | 24,777 | 24,245 | Timothy W. Sargent | Justin P. Lavely - St. Johnsbury | |||||||||||||||||||||||||||
Occupancy Expense, net | 363 | 309 | 753 | 626 | David S. Silverman | Daniel J. Luneau - St. Albans | |||||||||||||||||||||||||
Total Assets | $ | 664,923 | $ | 636,469 | John H. Steel | Mary K. Parent - St. Johnsbury | |||||||||||||||||||||||||
Equipment Expense | 523 | 541 | 1,057 | 1,050 | Schuyler W. Sweet | Samuel H. Ruggiano - St. Albans | |||||||||||||||||||||||||
David S. Silverman - All | |||||||||||||||||||||||||||||||
Other Expenses | 1,530 | 1,665 | 3,100 | 3,141 | Schuyler W. Sweet - Northern NH | ||||||||||||||||||||||||||
Total | 5,871 | 5,808 | 11,812 | 11,511 | Union Bank Offices (ATMs at all Branch Locations) | ||||||||||||||||||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY | JUNE 30, 2017 | JUNE 30, 2016 | |||||||||||||||||||||||||||||
Income Before Taxes | 3,047 | 2,883 | 5,641 | 5,226 | |||||||||||||||||||||||||||
Income Tax Expense | 820 | 744 | 1,484 | 1,328 | VERMONT | ||||||||||||||||||||||||||
Noninterest Bearing Deposits | $ | 108,169 | $ | 103,918 | |||||||||||||||||||||||||||
Net income | $ | 2,227 | $ | 2,139 | $ | 4,157 | $ | 3,898 | Barre | Loan Center | |||||||||||||||||||||
Interest Bearing Deposits | 356,541 | 333,402 | 14 North Main Street | 802.476.0062 | |||||||||||||||||||||||||||
Earnings per share | $ | 0.50 | $ | 0.48 | $ | 0.93 | $ | 0.87 | Danville | 421 Route 2 East | 802.684.2211 | ||||||||||||||||||||
Time Deposits | 99,913 | 110,644 | Fairfax | Jct. Routes 104 & 128 | 802.849.2600 | ||||||||||||||||||||||||||
Book Value Per Share | $ | 13.10 | $ | 12.55 | Hardwick | 103 VT Route 15 West | 802.472.8100 | ||||||||||||||||||||||||
Borrowed Funds | 36,395 | 27,808 | Jeffersonville | 5062 VT Route 15 | 802.644.6600 | ||||||||||||||||||||||||||
Johnson | 198 Lower Main Street | 802.635.6600 | |||||||||||||||||||||||||||||
Accrued Interest & Other Liabilities | 5,448 | 4,714 | Lyndonville | 183 Depot Street | 802.626.3100 | ||||||||||||||||||||||||||
Morrisville | 20 Lower Main Street | 802.888.6600 | |||||||||||||||||||||||||||||
Common Stock | 9,874 | 9,869 | 65 Northgate Plaza | 802.888.6860 | |||||||||||||||||||||||||||
Newport | Loan Center | ||||||||||||||||||||||||||||||
Additional Paid-in Capital | 697 | 586 | 325 East Main Street | 802.334.0750 | |||||||||||||||||||||||||||
St. Albans | 15 Mapleville Depot | 802.524.9000 | |||||||||||||||||||||||||||||
Retained Earnings | 54,655 | 50,970 | St. Johnsbury | 364 Railroad Street | 802.748.3131 | ||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | (2,722 | ) | (1,418 | ) | 325 Portland Street | 802.748.3121 | |||||||||||||||||||||||||
 | S. Burlington | Loan Center | |||||||||||||||||||||||||||||
30 Kimball Avenue | 802.865.1000 | ||||||||||||||||||||||||||||||
Treasury Stock at Cost | (4,047 | ) | (4,024 | ) | Stowe | 47 Park Street | 802.253.6600 | ||||||||||||||||||||||||
NEW HAMPSHIRE | |||||||||||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 664,923 | $ | 636,469 | Groveton | 3 State Street | 603.636.1611 | ||||||||||||||||||||||||
Standby letters of credit were $1,604,000 and $1,624,000 at June 30, 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 | |||||||||||||||||||||||||||||