Exhibit 99.1
August 6, 2015 | |||||||||
We are pleased to announce the financial results for your company for the quarter ended June 30, 2015. Net Income was $2.0 million, or $0.46 per share, compared to $1.9 million, or $0.43 per share, for 2014, an increase of 5.1% quarter over quarter. Results for the second quarter of 2015 reflect quarter over quarter increases in net interest income of $100 thousand, and noninterest income of $416 thousand. These increases were partially offset by an increase in the provision for loan losses from $75 thousand for the second quarter of 2014 to $150 thousand for the same period in 2015, and increases in noninterest expenses of $286 thousand. Year to date earnings for 2015 were $3.9 million, or $.88 per share, compared to $3.7 million, or $.83 per share, for 2014, an increase of 5.9%. Increases in net interest income of $117 thousand, and noninterest income of $788 thousand contributed to the increase in year to date earnings. These positive changes were partially offset by increases in the provision for loan losses of $100 thousand, noninterest expenses of $487 thousand, and the provision for income taxes of $100 thousand. On the balance sheet, loans grew 3.6% to $478.7 million as of June 30, 2015 from $462.2 million as of June 30, 2014. Total deposits reached $513.0 million at June 30, 2015 compared to the prior year of $490.9 million. We continue to manage interest rate risk by selling most of the residential loans we originated in the first six months of 2015. During this time we sold $67.9 million in residential loan to the secondary market compared to $42.5 million in the first six months of 2014. Loans serviced for others grew $55.2 million to $400.1 million as of June 30, 2015 from $344.9 million as of June 30, 2014. Between the loan portfolio held on our books and our sold loan portfolio we are servicing a nearly $900 million portfolio, quite an achievement for a $600 million company. | In addition to producing sound financial results, we continue to work on enhancing our customer’s experience when they interface with the bank. We are in the process of “beta” testing our new website design with anticipated roll out in the third quarter of 2015. In addition, during the second quarter of 2015 our new Customer Care Team went live. Prompted by the retirement of long time Main Office receptionist Patricia Rorick, we decided to change the way we handle phone calls throughout the system. We surveyed our incoming calls for two months and developed a list of the most commonly asked customer questions. We then assembled a team from internal departments and trained them on how to handle the most commonly asked questions without having to transfer the customer to another department. We purchased and installed a Call Center software package that allows us to appropriately route, manage, and track incoming and outgoing phone traffic. Our goal is to have our phones answered by Union Bank staff and to reduce the number of times customers must be transferred to internal departments to have their questions answered. Based on the first few months of operation it appears as though we have met our goals. We continue to pursue initiatives where we can either enhance the customer experience or increase operational efficiency. We are pleased to report that the Board of Directors declared a cash dividend of $.27 per share on July 15, 2015, payable on August 6, 2015 to shareholders of record as of July 27, 2015. Enclosed please find your check or advice of deposit. 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 and two loan centers and several ATMS throughout its geographical footprint. Union Bank is committed to the communities it serves, and encourages employee participation in community events and charitable services. 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. | |||||||||
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 | June 30, 2015 | June 30, 2014 | June 30, 2015 | June 30, 2014 | June 30, 2015 | June 30, 2014 | John M. Goodrich | Karyn J. Hale - Chief Financial Officer | |||||||||||||||||||||||
Timothy W. Sargent | John H. Steel - Secretary | ||||||||||||||||||||||||||||||
(3 months ended) | (6 months ended) | ||||||||||||||||||||||||||||||
David S. Silverman | Kristy Adams Alfieri - Assistant Secretary | ||||||||||||||||||||||||||||||
Cash and Due from Banks | $ | 4,096 | $ | 4,154 | Interest Income | $ | 6,276 | $ | 6,184 | $ | 12,393 | $ | 12,296 | ||||||||||||||||||
John H. Steel | Jeffrey G. Coslett - Vice President | ||||||||||||||||||||||||||||||
Federal Funds Sold & Overnight Deposits | 10,558 | 15,490 | Interest Expense | 521 | 529 | 1,086 | 1,106 | Schuyler W. Sweet | |||||||||||||||||||||||
Net Interest Income | 5,755 | 5,655 | 11,307 | 11,190 | Neil J. Van Dyke | ||||||||||||||||||||||||||
Interest Bearing Deposits in Banks | 12,701 | 13,713 | Provision for Loan Losses | 150 | 75 | 250 | 150 | REGIONAL ADVISORY BOARD MEMBERS | |||||||||||||||||||||||
Union Bank | |||||||||||||||||||||||||||||||
Investment Securities | 62,606 | 50,001 | Net Interest Income After Provision for Loan Losses | 5,605 | 5,580 | 11,057 | 11,040 | ||||||||||||||||||||||||
Loans Held for Sale | 5,504 | 6,662 | DIRECTORS | ||||||||||||||||||||||||||||
Trust Income | 190 | 191 | 367 | 366 | Kenneth D. Gibbons-Chairman | Michael R. Barrett - St. Johnsbury | |||||||||||||||||||||||||
Loans, net | 473,186 | 455,583 | Noninterest Income | 2,336 | 1,919 | 4,494 | 3,707 | Steven J. Bourgeois | Joel S. Bourassa - Northern NH | ||||||||||||||||||||||
John M. Goodrich | Steven J. Bourgeois - St. Albans | ||||||||||||||||||||||||||||||
Reserve for Loan Losses | (4,919 | ) | (4,610 | ) | Noninterest Expenses: | Timothy W. Sargent | Stanley T. Fillion - Northern NH | ||||||||||||||||||||||||
Salaries & Wages | 2,330 | 2,194 | 4,654 | 4,441 | David S. Silverman | Rosemary H. Gingue - St. Johnsbury | |||||||||||||||||||||||||
Premises and Equipment, net | 12,935 | 10,979 | John H. Steel | John M. Goodrich - St. Johnsbury | |||||||||||||||||||||||||||
Pension & Employee Benefits | 769 | 703 | 1,503 | 1,370 | Schuyler W. Sweet | Christopher M. Knapp - Northern NH | |||||||||||||||||||||||||
Other Real Estate Owned, net | 171 | 200 | Neil J. Van Dyke | Coleen K. Kohaut - St. Albans | |||||||||||||||||||||||||||
Occupancy Expense, net | 312 | 295 | 693 | 634 | Justin P. Lavely - St. Johnsbury | ||||||||||||||||||||||||||
Accrued Interest & Other Assets | 24,143 | 19,316 | Daniel J. Luneau - St. Albans | ||||||||||||||||||||||||||||
Equipment Expense | 461 | 410 | 867 | 797 | Mary K. Parent - St. Johnsbury | ||||||||||||||||||||||||||
Total Assets | $ | 600,981 | $ | 571,488 | Samuel H. Ruggiano - St. Albans | ||||||||||||||||||||||||||
Other Expenses | 1,684 | 1,668 | 3,229 | 3,217 | David S. Silverman - All | ||||||||||||||||||||||||||
Schuyler W. Sweet - Northern NH | |||||||||||||||||||||||||||||||
Total | 5,556 | 5,270 | 10,946 | 10,459 | |||||||||||||||||||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY | June 30, 2015 | June 30, 2014 | |||||||||||||||||||||||||||||
Income Before Taxes | 2,575 | 2,420 | 4,972 | 4,654 | |||||||||||||||||||||||||||
Income Tax Expense | 558 | 501 | 1,071 | 971 | Union Bank Offices (ATMs at all Branch Locations) | ||||||||||||||||||||||||||
Noninterest Bearing Deposits | $ | 94,430 | $ | 81,140 | |||||||||||||||||||||||||||
Net income | $ | 2,017 | $ | 1,919 | $ | 3,901 | $ | 3,683 | |||||||||||||||||||||||
Interest Bearing Deposits | 303,034 | 290,980 | VERMONT | ||||||||||||||||||||||||||||
Earnings per share | $ | 0.46 | $ | 0.43 | $ | 0.88 | $ | 0.83 | Danville | 421 Route 2 East | 802-684-2211 | ||||||||||||||||||||
Time Deposits | 115,515 | 118,736 | Fairfax | Jct. Routes 104 & 128 | 802-849-2600 | ||||||||||||||||||||||||||
Book Value Per Share | $ | 11.83 | $ | 11.64 | Hardwick | 103 VT Route 15 West | 802-472-8100 | ||||||||||||||||||||||||
Borrowed Funds | 23,914 | 24,759 | Jeffersonville | 44 Main Street | 802-644-6600 | ||||||||||||||||||||||||||
Johnson | 198 Lower Main Street | 802-635-6600 | |||||||||||||||||||||||||||||
Accrued Interest & Other Liabilities | 11,332 | 3,986 | Lyndonville | 183 Depot Street | 802-626-3100 | ||||||||||||||||||||||||||
Morrisville | 20 Lower Main Street | 802-888-6600 | |||||||||||||||||||||||||||||
Common Stock | 9,864 | 9,858 | 65 Northgate Plaza | 802-888-6860 | |||||||||||||||||||||||||||
Newport | Loan Center | ||||||||||||||||||||||||||||||
Additional Paid in Capital | 486 | 404 | 325 East Main Street | 802-334-0750 | |||||||||||||||||||||||||||
St. Albans | 15 Mapleville Depot | 802-524-9000 | |||||||||||||||||||||||||||||
Retained Earnings | 47,955 | 44,769 | St. Johnsbury | 364 Railroad Street | 802-748-3131 | ||||||||||||||||||||||||||
Accumulated Other Comprehensive (Loss) Income | (1,598 | ) | 778 | 325 Portland Street | 802-748-3121 | ||||||||||||||||||||||||||
S. Burlington | Loan Center | ||||||||||||||||||||||||||||||
30 Kimball Avenue | 802-865-1000 | ||||||||||||||||||||||||||||||
Treasury Stock at Cost | (3,951 | ) | (3,922 | ) | Stowe | 47 Park Street | 802-253-6600 | ||||||||||||||||||||||||
NEW HAMPSHIRE | |||||||||||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 600,981 | $ | 571,488 | Groveton | 3 State Street | 603-636-1611 | ||||||||||||||||||||||||
Standby letters of credit were $1,610,000 and $1,924,000 at June 30, 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 |