Exhibit 99.1
May 9, 2013 | |||||||||
ABOUT UNION BANKSHARES | SHAREHOLDER ASSISTANCE AND INVESTOR INFORMATION | DEAR SHAREHOLDER, We are pleased to share the financial results of the first quarter of 2013 with you. Earnings for the quarter were $1.7 million or 39 cents per share compared to last year’s first quarter earnings of $1.2 million or 28 cents per share. Total assets grew to $562.7 million at quarter end compared to $555.4 million at the same time last year. In addition, total capital grew to $45.7 million compared to $40.5 million year over year. The quarter’s operating results were positively affected by the continued strong volume of residential loans originated and sold to the secondary market, lower pension expense due to the 2012 freeze of the defined benefit pension plan, and lower loan loss provision required due to sound loan quality and negligible loan charge offs. Going forward, stress on net interest income caused by declining yields from our asset portfolio coupled with modest growth in our commercial loans outstanding is of concern. We are hopeful loan volume will pick up, as it usually does for us, in the next three quarters, but are less hopeful for improved asset yields in the near term. We continue to make adjustments to keep earnings on a positive trend. After a detailed review prompted by the timing of a lease renewal, we determined that the Green Mountain Mall branch office located in St. Johnsbury, Vermont was made redundant by our two other St. Johnsbury locations. We announced the closing of this branch in January and closed the doors on April 5. Fortunately, we were able to manage our staffing by deferring replacing staff lost to turnover in a manner that allowed us to retain and relocate our Mall staff to other locations. In addition, during this quarter we had three long-time employees retire whose combined years of service to Union Bank totaled 103. It is with a touch of bitter sweetness that we wish Arlene Mace, Rhoda Bedell, and Francis Welch all of the best in their well earned retirements. We are pleased to report that our winter tourism season was blessed with good snowfall and skiing throughout the winter. This has helped our travel and tourism customers who were able to link good summer and fall seasons with a good winter season, improving cash flow and the outlook for the industry. Likewise, the Maple Sugar season is winding down with reports of solid production boding well for maple producers and marketers alike. We hope you will join us at our annual meeting at 3 p.m. on May 15th at the Stone Grill Restaurant in Morrisville. Enclosed please find your dividend check or advice of deposit representing a dividend of 25 cents per share. As a reminder, we encourage you to sign up with us for direct deposit of your dividend. Sincerely, | |||||||
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 operates 16 banking offices, a loan center and 34 ATMs. 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 $562 million provides the financial strength to successfully serve its constituents. Union Bank has consistently been recognized for our Community Reinvestment efforts and for our performance in residential lending to borrowers of all income levels. The US Small Business Administration has designated Union Bank as a Preferred Lender. | |||||||||
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: | |||||||||
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 OFFICES (ATMS AT ALL BRANCH LOCATIONS) | NASDAQ Stock Market | ||||||||
Ticker Symbol: | UNB | ||||||||
VERMONT | MORRISVILLE | STOWE | Corporate Name: | Union Bankshares, Inc. | |||||
DANVILLE | 20 Lower Main St. 802-888-6600 | 47 Park St. 802-253-6600 | Corporate Address: | 20 Lower Main Street PO Box 667 Morrisville, VT 05661-0667 | |||||
421 Route 2 East 802-684-2211 | |||||||||
65 Northgate Plaza Route 100 802-888-6860 | NEW HAMPSHIRE | Investor Relations: | www.UnionBankVT.com | ||||||
FAIRFAX | GROVETON | ||||||||
Jct. Rtes. 104&128 802-849-2600 | 3 State Street 603-636-1611 | ||||||||
ST. ALBANS | |||||||||
HARDWICK | 15 Mapleville Depot 802-524-9000 | LITTLETON | |||||||
103 VT Rte. 15 802-472-8100 | 263 Dells Road 603-444-7136 | ||||||||
ST. JOHNSBURY | |||||||||
JEFFERSONVILLE | 364 Railroad St. 802-748-3131 | 76 Main Street 603-444-5321 | |||||||
44 Main Street 802-644-6600 | |||||||||
325 Portland St. 802-748-3121 | N. WOODSTOCK | ||||||||
JOHNSON | 155 Main Street 603-745-2488 | ||||||||
198 Lower Main St. 802-635-6600 | |||||||||
S. BURLINGTON | |||||||||
LYNDONVILLE | Loan Center 30 Kimball Ave. 802-865-1000 | ||||||||
183 Depot St. 802-626-3100 | |||||||||
Kenneth D. Gibbons Chairman | David S. Silverman President & Chief Executive Officer |
Fourth Quarter Financial Report | CONSOLIDATED BALANCE SHEETS (unaudited, in thousands) | ||||||||||||
ASSETS | March 31, 2013 | March 31, 2012 | |||||||||||
DIRECTORS - UNION BANKSHARES, INC. | OFFICERS - UNION BANK | Cash and due from banks | $ | 4,127 | $ | 5,050 | |||||||
Federal funds sold & overnight deposits | 25,159 | 14,443 | |||||||||||
Kenneth D. Gibbons-Chairman | David S. Silverman | Tracy Pierce Ash-Assistant Treasurer | Littleton | Interest bearing deposits in banks | 22,275 | 23,482 | |||||||
Cynthia D. Borck | John H. Steel | Rhonda L. Bennett-Vice President | Morrisville | Investment securities | 35,015 | 46,198 | |||||||
Steven J. Bourgeois | Schuyler W. Sweet | Stacey L.B. Chase-Assistant Treasurer | Morrisville | Loans held for sale | 10,828 | 12,084 | |||||||
Timothy W. Sargent | Neil J. Van Dyke | Barbara J. Churchill-Assistant Treasurer | Morrisville | Loans, net | 439,139 | 425,640 | |||||||
Everett C. Comstock-Assistant Treasurer | Morrisville | Reserve for loan losses | (4,714 | ) | (4,406 | ) | |||||||
Jeffrey G. Coslett-Senior Vice President | Morrisville | Premises and equipment, net | 10,304 | 10,368 | |||||||||
DIRECTORS - UNION BANK | John Currier-Assistant Vice President | Groveton | Other real estate owned, net | 668 | 1,426 | ||||||||
Michael C. Curtis-Vice President | St. Albans | Accrued interest & other assets | 19,937 | 21,117 | |||||||||
Kenneth D. Gibbons-Chairman | David S. Silverman | Jennifer Degree-Assistant Treasurer | Morrisville | Total Assets | $ | 562,738 | $ | 555,402 | |||||
Cynthia D. Borck | John H. Steel | Jessica Eastman-Assistant Treasurer | So. Burlington | LIABILITIES & SHAREHOLDERS' EQUITY | |||||||||
Steven J. Bourgeois | Schuyler W. Sweet | Don D. Goodhue-Vice President | Morrisville | Noninterest bearing deposits | $ | 80,300 | $ | 75,511 | |||||
John M. Goodrich | Neil J. Van Dyke | Melissa A. Greene-Assistant Vice President | Hardwick | Interest bearing deposits | 266,649 | 249,312 | |||||||
Timothy W. Sargent | Paul E. Grogan-Facilities Officer | Morrisville | Time deposits | 149,291 | 153,187 | ||||||||
Karyn J. Hale-Vice President | Morrisville | Borrowed funds | 14,532 | 27,281 | |||||||||
OFFICERS - UNION BANKSHARES, INC. | Claire A. Hindes-Vice President | Morrisville | Accrued interest & other liabilities | 6,313 | 9,617 | ||||||||
Robert D. Hofmann-Senior Vice President | Morrisville | Common stock | 9,850 | 9,847 | |||||||||
Kenneth D. Gibbons-Chairman | Patricia N. Hogan-Vice President | Morrisville | Additional paid-in capital | 316 | 280 | ||||||||
David S. Silverman-President & CEO | Tracey D. Holbrook-Regional Vice President | St. Johnsbury | Retained earnings | 41,395 | 38,498 | ||||||||
Marsha A. Mongeon-Vice President/Treasurer/CFO | Lura L. Jacques-Asst. VP, Trust Officer | St. Albans | Accumulated other comprehensive loss | (2,036 | ) | (4,295 | ) | ||||||
John H. Steel-Secretary | Lynne P. Jewett-Assistant Vice President | Morrisville | Treasury stock at cost | (3,872 | ) | (3,836 | ) | ||||||
JoAnn A. Tallman-Assistant Secretary | Stephen H. Kendall-Senior Vice President | Morrisville | Total Liabilities & Shareholders' Equity | $ | 562,738 | $ | 555,402 | ||||||
Susan F. Lassiter-Vice President | Jeffersonville | Standby letters of credit were $1,653,000 and $1,949,000 at March 31, 2013 and 2012, respectively. | |||||||||||
Christine S. Latulip-Regional Vice President | Littleton | ||||||||||||
REGIONAL ADVISORY BOARDS | Edward L. Levite-Senior Loan Originator | So. Burlington | CONSOLIDATED STATEMENTS OF INCOME (unaudited, in thousands) | ||||||||||
Virginia M. Locke-Assistant Vice President | Littleton | March 31, 2013 | March 31, 2012 | ||||||||||
NORTHERN NEW HAMPSHIRE | Carrie R. Locklin-Assistant Vice President | Morrisville | |||||||||||
Joel S. Bourassa | Schuyler W. Sweet | John L. Malm-Vice President | Littleton | Interest income | $ | 5,937 | $ | 6,196 | |||||
Stanley T. Fillion | Norrine A. Williams | Robyn A. Masi-Vice President | Stowe | Interest expense | 648 | 910 | |||||||
Sherrie A. Menard-Assistant Vice President | Morrisville | Net interest income | 5,289 | 5,286 | |||||||||
Marsha A. Mongeon-Sr. Vice President, CFO | Morrisville | Provision for loan losses | 60 | 180 | |||||||||
ST. ALBANS | Karen Carlson Noyes-Vice President | Morrisville | Net interest income after | 5,229 | 5,106 | ||||||||
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 | 163 | 147 | |||||||
Bradley S. Prior-Assistant Treasurer | Morrisville | Noninterest income | 1,993 | 1,756 | |||||||||
Craig S. Provost-Vice President | Stowe | Noninterest expenses: | |||||||||||
ST. JOHNSBURY | Robert J. Richardson-Vice President | Morrisville | Salaries & wages | 2,157 | 2,234 | ||||||||
Michael R. Barrett | Justin P. Lavely | Lesley S. Russ-Assistant Treasurer | Morrisville | Pension & employee benefits | 683 | 1,058 | |||||||
Dwight A. Davis | Mary K. Parent | David S. Silverman-President & CEO | Morrisville | Occupancy expense, net | 331 | 344 | |||||||
Rosemary H. Gingue | Judy R. Smith-Vice President | St. Albans | Equipment expense | 426 | 345 | ||||||||
John H. Steel-Secretary | Morrisville | Other expenses | 1,582 | 1,560 | |||||||||
Curtis C. Swan-Assistant Vice President | St. Albans | Total | 5,179 | 5,541 | |||||||||
ALL: David S. Silverman | JoAnn A. Tallman-Assistant Secretary | Morrisville | Income before taxes | 2,206 | 1,468 | ||||||||
Martha J. Wilkins-Assistant Treasurer | St. Johnsbury | Income tax expense | 469 | 241 | |||||||||
Lorraine G. Willett-Assistant Vice President | Morrisville | Net income | $ | 1,737 | $ | 1,227 | |||||||
Earnings per share | $ | 0.39 | $ | 0.28 | |||||||||
Book value per share | $ | 10.24 | $ | 9.09 |