Exhibit 99.1
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November 8, 2016 | |||||||||
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We are pleased to report net income for the three and nine months ended September 30, 2016. Consolidated net income for the three months ended September 30, 2016 was $2.3 million, or $0.51 per share, compared to $2.1 million, or $0.45 per share, for the same period in 2015, and $6.2 million, or $1.38 per share for the nine months ended September 30, 2016, compared to $6 million, or $1.33 per share, for the same period in 2015. We are also pleased to report that during the past twelve months ended September 30, 2016 total assets increased $52.3 million, or 8.4%, to $672.6 million; loans increased $27.6 million, or 5.45% to $533.2 million; deposits increased $28.3 million, or 5.20%, to $572.2 million; and total shareholders’ equity increased 5.6% to $56.8 million compared to September 30, 2015. Key performance ratios for the nine months ended September 30, 2016 include a Return on Average Assets of 1.28% and a Return on Average Equity of 14.83%. Both ratios place us in the upper percentiles in comparison to peer banks. We are pleased with our financial performance to date, especially with our pace of balance sheet growth, which was an area of emphasis for this year. We recently learned of big news in the Northern New England Banking scene. It was announced that the largest bank domiciled in Vermont will be acquired by an $8 billion bank domiciled in upstate New York. This will reduce the number of Vermont based banks to eleven from approximately thirty five in the 1980’s. In the near term, we view these sort of out of area consolidations to be generally positive for us as we have opportunities to acquire customers reluctant to depend on a large, out of area bank. Long term, we fear further consolidation may | reduce access to banking services in the rural markets we serve. We are committed to providing personalized deposit and loan services within our market area, while at the same time enhancing our Digital Banking capabilities. Our first snowfall happened in mid-October when we awoke to fresh snow on some of our mountain peaks, with accumulations of as much as 9 inches in some areas. While seemingly early, this bodes well for the nearing winter tourism season. Fortunately, the preceding summer and fall tourism seasons were equally as good as the winter was bad. We are hoping to string two solid tourism seasons together to further improve our area’s economy, which is generally pretty good. In some areas, businesses are unable to attract sufficient workers to be open all of the hours they would like to be, whether travel and tourism or manufacturing. This has to eventually translate into wage price pressure and modest inflation, certainly enough to cause the Federal Reserve to increase interest rates, which would be beneficial to Union Bank. Enclosed please find your check or advice of deposit of the quarterly dividend of $.28 per share declared on October 19, 2016, payable to shareholders of record as of October 29, 2016. As a reminder, we would be pleased to help you set up automatic deposit of your dividend either to a Union Bank account or a financial institution of your choice. Please contact Assistant Secretary Kristy Adams Alfieri for assistance at 802.888.0982. | ||||||||
![]() | 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 and three loan centers and several ATMs throughout its geographical footprint. Union Bank has earned an outstanding reputation for residential lending programs and has recently been named, for the third consecutive year, the USDA RD Vermont lender of the year. Union Bank is also an SBA Preferred lender and has an Outstanding Community Reinvestment Act rating. | |||||||||
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 | SEPT. 30, 2016 | SEPT 30, 2015 | SEPT. 30, 2016 | SEPT 30, 2015 | SEPT. 30, 2016 | SEPT 30, 2015 | Steven J. Bourgeois | Karyn J. Hale - Chief Financial Officer | |||||||||||||||||||||||
Dawn D. Bugbee | John H. Steel - Secretary | ||||||||||||||||||||||||||||||
(3 months ended) | (9 months ended) | ||||||||||||||||||||||||||||||
John M. Goodrich | Kristy Adams Alfieri - Assistant Secretary | ||||||||||||||||||||||||||||||
Cash and Due from Banks | $ | 3,952 | $ | 4,498 | Interest Income | $ | 6,786 | $ | 6,373 | $ | 19,922 | $ | 18,766 | ||||||||||||||||||
Timothy W. Sargent | Jeffrey G. Coslett - Vice President | ||||||||||||||||||||||||||||||
Federal Funds Sold & Overnight Deposits | 31,622 | 9,186 | Interest Expense | 471 | 461 | 1,503 | 1,547 | David S. Silverman | |||||||||||||||||||||||
Net Interest Income | 6,315 | 5,912 | 18,419 | 17,219 | John H. Steel | REGIONAL ADVISORY BOARD MEMBERS | |||||||||||||||||||||||||
Interest Bearing Deposits in Banks | 9,753 | 12,753 | Provision for Loan Losses | — | 150 | 150 | 400 | Schuyler W. Sweet | |||||||||||||||||||||||
Investment Securities | 60,670 | 56,181 | Net Interest Income After Provision for Loan Losses | 6,315 | 5,762 | 18,269 | 16,819 | Union Bank | Michael R. Barrett - St. Johnsbury | ||||||||||||||||||||||
Loans Held for Sale | 10,214 | 7,256 | Joel S. Bourassa - Northern NH | ||||||||||||||||||||||||||||
Trust Income | 171 | 171 | 523 | 538 | DIRECTORS | Steven J. Bourgeois - St. Albans | |||||||||||||||||||||||||
Loans, net | 523,010 | 498,390 | Noninterest Income | 2,633 | 2,362 | 7,064 | 6,856 | Kenneth D. Gibbons-Chairman | Stanley T. Fillion - Northern NH | ||||||||||||||||||||||
Neil J. Van Dyke-Vice Chairman | Rosemary H. Gingue - St. Johnsbury | ||||||||||||||||||||||||||||||
Reserve for Loan Losses | (5,226 | ) | (5,044 | ) | Noninterest Expenses: | Steven J. Bourgeois | John M. Goodrich - St. Johnsbury | ||||||||||||||||||||||||
Salaries & Wages | 2,622 | 2,426 | 7,522 | 7,080 | Dawn D. Bugbee | Richard L. Isabelle - St. Johnsbury | |||||||||||||||||||||||||
Premises and Equipment, net | 13,377 | 12,860 | John M. Goodrich | Christopher M. Knapp - Northern NH | |||||||||||||||||||||||||||
Pension & Employee Benefits | 865 | 739 | 2,659 | 2,242 | Timothy W. Sargent | Coleen K. Kohaut - St. Albans | |||||||||||||||||||||||||
Other Real Estate Owned, net | — | 59 | David S. Silverman | Justin P. Lavely - St. Johnsbury | |||||||||||||||||||||||||||
Occupancy Expense, net | 297 | 293 | 923 | 986 | John H. Steel | Daniel J. Luneau - St. Albans | |||||||||||||||||||||||||
Accrued Interest & Other Assets | 25,207 | 24,127 | Schuyler W. Sweet | Mary K. Parent - St. Johnsbury | |||||||||||||||||||||||||||
Equipment Expense | 553 | 479 | 1,603 | 1,346 | Samuel H. Ruggiano - St. Albans | ||||||||||||||||||||||||||
Total Assets | $ | 672,579 | $ | 620,266 | David S. Silverman - All | ||||||||||||||||||||||||||
Other Expenses | 1,842 | 1,737 | 5,219 | 4,966 | Schuyler W. Sweet - Northern NH | ||||||||||||||||||||||||||
Total | 6,179 | 5,674 | 17,926 | 16,620 | Union Bank Offices (ATMs at all Branch Locations) | ||||||||||||||||||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY | SEPT. 30, 2016 | SEPT 30, 2015 | |||||||||||||||||||||||||||||
Income Before Taxes | 2,940 | 2,621 | 7,930 | 7,593 | |||||||||||||||||||||||||||
Income Tax Expense | 672 | 571 | 1,764 | 1,642 | VERMONT | ||||||||||||||||||||||||||
Noninterest Bearing Deposits | $ | 116,381 | $ | 103,614 | |||||||||||||||||||||||||||
Net income | $ | 2,268 | $ | 2,050 | $ | 6,166 | $ | 5,951 | Barre | Loan Center | |||||||||||||||||||||
Interest Bearing Deposits | 350,376 | 308,946 | 14 North Main Street | 802.476.0062 | |||||||||||||||||||||||||||
Earnings per share | $ | 0.51 | $ | 0.45 | �� | $ | 1.38 | $ | 1.33 | Danville | 421 Route 2 East | 802.684.2211 | |||||||||||||||||||
Time Deposits | 105,429 | 131,325 | Fairfax | Jct. Routes 104 & 128 | 802.849.2600 | ||||||||||||||||||||||||||
Book Value Per Share | $ | 12.74 | $ | 12.07 | Hardwick | 103 VT Route 15 West | 802.472.8100 | ||||||||||||||||||||||||
Borrowed Funds | 37,513 | 17,421 | Jeffersonville | 44 Main Street | 802.644.6600 | ||||||||||||||||||||||||||
Johnson | 198 Lower Main Street | 802.635.6600 | |||||||||||||||||||||||||||||
Accrued Interest & Other Liabilities | 6,075 | 5,142 | Lyndonville | 183 Depot Street | 802.626.3100 | ||||||||||||||||||||||||||
Morrisville | 20 Lower Main Street | 802.888.6600 | |||||||||||||||||||||||||||||
Common Stock | 9,869 | 9,864 | 65 Northgate Plaza | 802.888.6860 | |||||||||||||||||||||||||||
Newport | Loan Center | ||||||||||||||||||||||||||||||
Additional Paid-in Capital | 605 | 495 | 325 East Main Street | 802.334.0750 | |||||||||||||||||||||||||||
St. Albans | 15 Mapleville Depot | 802.524.9000 | |||||||||||||||||||||||||||||
Retained Earnings | 51,989 | 48,801 | St. Johnsbury | 364 Railroad Street | 802.748.3131 | ||||||||||||||||||||||||||
Accumulated Other Comprehensive (Loss) Income | (1,635 | ) | (1,326 | ) | 325 Portland Street | 802.748.3121 | |||||||||||||||||||||||||
![]() | S. Burlington | Loan Center | |||||||||||||||||||||||||||||
30 Kimball Avenue | 802.865.1000 | ||||||||||||||||||||||||||||||
Treasury Stock at Cost | (4,023 | ) | (4,016 | ) | Stowe | 47 Park Street | 802.253.6600 | ||||||||||||||||||||||||
NEW HAMPSHIRE | |||||||||||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 672,579 | $ | 620,266 | Groveton | 3 State Street | 603.636.1611 | ||||||||||||||||||||||||
Standby letters of credit were $1,624,000 and $1,514,000 at September 30, 2016 and 2015, 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 | |||||||||||||||||||||||||||||