Attached files
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| EX-99.1 - EXHIBIT 99.1 COURTESY PDF COPY - UNION BANKSHARES INC | unb1stquartershreport2018.pdf |
| 8-K - BODY OF FORM 8-K - UNION BANKSHARES INC | form8-k1stqtr2018shrpt.htm |
Exhibit 99.1
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May 10, 2018 | |||||||||
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We are pleased to report your company’s financial results for the first quarter of 2018. Total assets increased $46.3 million, or 6.8% to reach $722.7 million as of March 31, 2018 from $676.5 million as of March 31, 2017. Consolidated net income for the first quarter of 2018 was 2.7 million, or $0.62 per share, compared to $1.9 million, or $0.43 per share, for the same period in 2017, and improvement of 42.3%. Total loans increased $54.4 million, or 10.1% to $595.4 million as of March 31, 2018 compared to $541.0 million as of March 31, 2017. The Company has retained the servicing on loans totaling $504.8 million as of March 31, 2018 compared to $466.5 million as of March 31, 2017. Total deposits reached $623.8 million as of March 31, 2018 compared to $582.1 million a year ago, or growth of $41.8 million, or 7.2%. The Company had total capital of $59.2 million with a book value per share of $13.25 as of March 31, 2018 compared to $57.2 million and $12.81 per share as of March 31, 2017. There were a few factors that drove our improved net income quarter over quarter. Net Interest Income improved 9.9%, primarily because of the growth of our loan portfolio quarter over quarter. Noninterest income improved quarter over quarter due to a couple of one-time items that more than offset a decrease in the gain on sale of real estate loans. Net operating income before tax improved 25.7% when comparing the first three months of 2018 to the same time period in 2017. Lastly, income tax expense was less during the first quarter of 2018 compared to 2017 as a result of the reduction in the federal income tax rate. Management sees the improvement in net income before tax as a more accurate picture of core performance. As a reminder, the defined benefit pension plan will be terminated in the fourth quarter, at which time we will recognize a one- time charge to earnings. | We have experienced one of the coldest early spring seasons in memory, extending our winter tourism season and thus improving the related business’ financial performance. Maple sugar season is now winding down, with an average crop expected in Vermont and New Hampshire, with much variability based on sugar bush elevation and orientation. The local dairy industry is facing some of its steepest challenge years, with even the best farmers struggling to cover their cost of production. Fortunately we do not have significant loan exposure to this industry. It is with sadness we inform you of the passing of long time officer and director Cynthia D. Borck. Cynthia joined the bank in 1986 and served until 2014 when she stepped down from the Board of Directors. She was a great teammate, role model, and mentor to her colleagues at the bank. She will be missed. On April 18, 2018, the Board of Directors declared a regular quarterly cash dividend of $0.30 per share payable May 10, 2018 to shareholders of record as of April 30, 2018. Please find your dividend check or advice of remittance enclosed. You are invited to the 127th Annual Meeting of Union Bankshares, Inc. to be held on May 16, 2018 at 3:00 pm at the Charlmont Restaurant meeting room, located at 116 Vermont Route 15 West, Morrisville, Vermont. Along with the normal business of the day will be a general discussion of current initiatives followed by a reception. We hope you will attend. 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 P.O. 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 126 years ago. Union Bank has earned an exceptional reputation for residential lending programs and has been recognized by the US Department of Agriculture, Rural Development for the positive impact made in lives of first time home buyers. Union Bank is consistently one of the top Vermont Housing Finance Agency mortgage originators. Additionally, 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, 2018 | MARCH 31, 2017 | MARCH 31, 2018 | MARCH 31, 2017 | 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 | $ | 3,328 | $ | 3,710 | Interest Income | $ | 7,571 | $ | 6,839 | |||||||||||||||
Timothy W. Sargent | Jeffrey G. Coslett - Vice President | |||||||||||||||||||||||
Federal Funds Sold & Overnight Deposits | 9,918 | 21,257 | Interest Expense | 647 | 537 | David S. Silverman | ||||||||||||||||||
Net Interest Income | 6,924 | 6,302 | John H. Steel | REGIONAL ADVISORY BOARD MEMBERS | ||||||||||||||||||||
Interest Bearing Deposits in Banks | 9,601 | 8,508 | Schuyler W. Sweet | |||||||||||||||||||||
Provision for Loan Losses | — | — | ||||||||||||||||||||||
Investment Securities | 68,942 | 68,638 | Net Interest Income After Provision for Loan Losses | 6,924 | 6,302 | Union Bank | Michael R. Barrett - St. Johnsbury | |||||||||||||||||
Loans Held for Sale | 2,938 | 2,847 | Joel S. Bourassa - Northern NH | |||||||||||||||||||||
Trust Income | 193 | 178 | DIRECTORS | Steven J. Bourgeois - St. Albans | ||||||||||||||||||||
Loans, net | 592,457 | 538,171 | Noninterest Income | 2,278 | 2,055 | Kenneth D. Gibbons-Chairman | Stanley T. Fillion - Northern NH | |||||||||||||||||
Neil J. Van Dyke-Vice Chairman | Rosemary H. Gingue - St. Johnsbury | |||||||||||||||||||||||
Reserve for Loan Losses | (5,405 | ) | (5,192 | ) | Noninterest Expenses: | Steven J. Bourgeois | John M. Goodrich - St. Johnsbury | |||||||||||||||||
Salaries & Wages | 2,649 | 2,568 | Dawn D. Bugbee | Richard L. Isabelle - St. Johnsbury | ||||||||||||||||||||
Premises and Equipment, net | 14,298 | 13,272 | John M. Goodrich | Christopher M. Knapp - Northern NH | ||||||||||||||||||||
Pension & Employee Benefits | 958 | 879 | Nancy C. Putnam | Coleen K. Kohaut - St. Albans | ||||||||||||||||||||
Accrued Interest & Other Assets | 26,654 | 25,240 | Timothy W. Sargent | Justin P. Lavely - St. Johnsbury | ||||||||||||||||||||
Occupancy Expense, net | 395 | 390 | David S. Silverman | Daniel J. Luneau - St. Albans | ||||||||||||||||||||
Total Assets | $ | 722,731 | $ | 676,451 | John H. Steel | Mary K. Parent - St. Johnsbury | ||||||||||||||||||
Equipment Expense | 535 | 534 | Schuyler W. Sweet | Samuel H. Ruggiano - St. Albans | ||||||||||||||||||||
David S. Silverman - All | ||||||||||||||||||||||||
Other Expenses | 1,598 | 1,570 | Schuyler W. Sweet - Northern NH | |||||||||||||||||||||
Total | 6,135 | 5,941 | Union Bank Offices (ATMs at all Branch Locations) | |||||||||||||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY | MARCH 31, 2018 | MARCH 31, 2017 | ||||||||||||||||||||||
Income Before Taxes | 3,260 | 2,594 | ||||||||||||||||||||||
Income Tax Expense | 513 | 664 | VERMONT | |||||||||||||||||||||
Noninterest Bearing Deposits | $ | 128,951 | $ | 110,087 | ||||||||||||||||||||
Net income | $ | 2,747 | $ | 1,930 | Barre | Loan Center | ||||||||||||||||||
Interest Bearing Deposits | 392,027 | 369,451 | 14 North Main Street | 802.476.0062 | ||||||||||||||||||||
Earnings per share | $ | 0.62 | $ | 0.43 | Danville | 421 Route 2 East | 802.684.2211 | |||||||||||||||||
Time Deposits | 102,865 | 102,527 | Fairfax | 9 Ramsey Road | 802.849.2600 | |||||||||||||||||||
Book Value Per Share | $ | 13.25 | $ | 12.81 | Hardwick | 103 VT Route 15 West | 802.472.8100 | |||||||||||||||||
Borrowed Funds | 31,265 | 31,727 | Jeffersonville | 5062 VT Route 15 | 802.644.6600 | |||||||||||||||||||
Johnson | 198 Lower Main Street | 802.635.6600 | ||||||||||||||||||||||
Accrued Interest & Other Liabilities | 8,459 | 5,489 | Lyndonville | 183 Depot Street | 802.626.3100 | |||||||||||||||||||
Morrisville | 20 Lower Main Street | 802.888.6600 | ||||||||||||||||||||||
Common Stock | 9,882 | 9,874 | 65 Northgate Plaza | 802.888.6860 | ||||||||||||||||||||
Newport | Loan Center | |||||||||||||||||||||||
Additional Paid-in Capital | 803 | 658 | 325 East Main Street | 802.334.0750 | ||||||||||||||||||||
St. Albans | 15 Mapleville Depot | 802.524.9000 | ||||||||||||||||||||||
Retained Earnings | 58,604 | 53,722 | St. Johnsbury | 364 Railroad Street | 802.748.3131 | |||||||||||||||||||
Accumulated Other Comprehensive Loss | (6,046 | ) | (3,054 | ) | 325 Portland Street | 802.748.3121 | ||||||||||||||||||
 | S. Burlington | Loan Center | ||||||||||||||||||||||
30 Kimball Avenue | 802.865.1000 | |||||||||||||||||||||||
Treasury Stock at Cost | (4,079 | ) | (4,030 | ) | Stowe | 47 Park Street | 802.253.6600 | |||||||||||||||||
NEW HAMPSHIRE | ||||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 722,731 | $ | 676,451 | Groveton | 3 State Street | 603.636.1611 | |||||||||||||||||
Standby letters of credit were $2,035,000 and $1,574,000 at March 31, 2018 and 2017, 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 | ||||||||||||||||||||||