Exhibit 99.1
November 7, 2019 | |||||||||
We are pleased to report your company’s financial results for the quarter ended September 30, 2019. Net income for the quarter was $2.7 million, an increase of 18.5% over the third quarter of 2018, and earnings per share was $0.62, an increase of 19.2% over the same period in 2018. Net income for the nine months ended September 30, 2019 was $7.9 million, or 5.3% over the first nine months of 2018, and $1.77 per share, or 5.3%, over the same period in 2018. Total assets were $844.9 million as of September 30, 2019, an increase of $65.2 million, or 8.4%. from $779.7 million as of September 30, 2018. Total loans increased $27.8 million, or 4.3% since September 30, 2018 to reach $671.5 million as of September 30, 2019. Total deposits grew $49.0 million, or 7.3%, during the comparison periods to reach $716.7 million as of September 30, 2019. The Company had total capital of $70.6 million with a book value per share of $15.80 as of September 30, 2019 compared to $60.8 million and $13.61 per share as of September 30, 2018. Interest income was $26.7 million for the nine months ended September 30, 2019, compared to $23.6 million for the nine months ended September 30, 2018, an increase of $3.1 million, or 13.1%. Interest income in 2018 was reduced by a one-time adjustment of $310 thousand that did not occur in 2019 and the increase in the volume of earning assets drove the increase for the comparison period. Interest expense was $4.1 million for nine months ended September 30, 2019 compared to $2.5 million for the prior period, an increase of $1.7 million, or 67.5%. Increases in customer deposits balances and rates paid on those accounts contributed to the increase in expense. Total noninterest income was $7.4 million and $7.1 million for the nine months ended September 30, 2019 and September 30, 2018, respectively. Total noninterest expenses were $20.3 million for nine months ended September 30, 2019 compared to $19.0 million for the same period in 2018. | Notable variances for the nine months ended September 30, 2019 compared to the prior year included an increase in gain on sale of loans of $558 thousand, an increase in salaries and wages of $765 thousand offset by a decrease in employee benefits of $508 thousand related to the termination of the company defined benefit pension plan in 2018, and an increase in equipment costs of $190. The Company’s return on average assets was 1.31% and return on average equity was 15.64% for the nine months ended September 30, 2019. These key financial metrics along with balance sheet growth and results of operations are within the range of our expectations for 2019. We recently opened two full service branch locations in Jericho and Williston, Vermont. These locations are located in Chittenden County, Vermont’s most populous and economically vibrant region. The Williston location also houses our robust mortgage lending operation previously located in rented space in South Burlington, Vermont. Growth in Chittenden County is an important part of our organic growth strategy. The Board of Directors also declared a cash dividend of $0.31 per share payable November 7, 2019 to shareholders of record as of October 28, 2019. As a reminder, a dividend reinvestment plan (DRIP) to facilitate further investments in your company is available. Information on the DRIP may be found at www.ublocal.com under Investor Relations. 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 | |||||||||
Neil J. Van Dyke Chair | 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 20 banking offices, two 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 127 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 the 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 | ||||||||||||||||||||||||||||||
Neil J. Van Dyke -Chair | Neil J. Van Dyke - Chair | ||||||||||||||||||||||||||||||
ASSETS | SEPT 30, 2019 | SEPT 30, 2018 | SEPT 30, 2019 | SEPT 30, 2018 | SEPT 30, 2019 | SEPT 30, 2018 | Timothy W. Sargent-Vice Chair | David S. Silverman - President & CEO | |||||||||||||||||||||||
Joel S. Bourassa | Jeffrey G. Coslett- Vice President | ||||||||||||||||||||||||||||||
(3 months ended) | (9 months ended) | ||||||||||||||||||||||||||||||
Steven J. Bourgeois | Karyn J. Hale - Chief Financial Officer | ||||||||||||||||||||||||||||||
Cash and Due from Banks | $ | 5,126 | $ | 4,063 | Interest Income | $ | 9,131 | $ | 8,095 | $ | 26,708 | $ | 23,609 | ||||||||||||||||||
Dawn D. Bugbee | John H. Steel - Secretary | ||||||||||||||||||||||||||||||
John M. Goodrich | Kristy Adams Alfieri - Assistant Secretary | ||||||||||||||||||||||||||||||
Federal Funds Sold & Overnight Deposits | 24,774 | 9,837 | Interest Expense | 1,497 | 1,086 | 4,128 | 2,464 | Nancy C. Putnam | |||||||||||||||||||||||
Net Interest Income | 7,634 | 7,009 | 22,580 | 21,145 | David S. Silverman | ||||||||||||||||||||||||||
Interest Bearing Deposits in Banks | 7,062 | 9,747 | John H. Steel | ||||||||||||||||||||||||||||
Provision for Loan Losses | 150 | 150 | 350 | 300 | Schuyler W. Sweet | ||||||||||||||||||||||||||
Investment Securities | 85,886 | 72,133 | Net Interest Income After Provision for Loan Losses | 7,484 | 6,859 | 22,230 | 20,845 | Union Bank | REGIONAL ADVISORY BOARD MEMBERS | ||||||||||||||||||||||
Loans Held for Sale | 13,561 | 7,457 | |||||||||||||||||||||||||||||
Trust Income | 168 | 195 | 519 | 579 | DIRECTORS | ||||||||||||||||||||||||||
Loans, net | 658,904 | 637,130 | Noninterest Income | 2,564 | 2,257 | 6,835 | 6,496 | Neil J. Van Dyke -Chair | Michael R. Barrett - St. Johnsbury | ||||||||||||||||||||||
Timothy W. Sargent -Vice Chair | Steven J. Bourgeois - St. Albans | ||||||||||||||||||||||||||||||
Reserve for Loan Losses | (5,808 | ) | (5,610 | ) | Noninterest Expenses: | Joel S. Bourassa | Stanley T. Fillion - Northern NH | ||||||||||||||||||||||||
Salaries & Wages | 3,072 | 2,745 | 8,773 | 8,008 | Steven J. Bourgeois | Rosemary H. Gingue - St. Johnsbury | |||||||||||||||||||||||||
Premises and Equipment, net | 22,507 | 15,747 | Dawn D. Bugbee | John M. Goodrich - St. Johnsbury | |||||||||||||||||||||||||||
Employee Benefits | 1,043 | 1,144 | 3,097 | 3,299 | John M. Goodrich | Christopher M. Knapp - Northern NH | |||||||||||||||||||||||||
Accrued Interest & other Assets | 32,876 | 29,154 | Nancy C. Putnam | Coleen K. Kohaut - St. Albans | |||||||||||||||||||||||||||
David S. Silverman | Justin P. Lavely - St. Johnsbury | ||||||||||||||||||||||||||||||
Total Assets | $ | 844,888 | $ | 779,658 | Occupancy Expense, net | 428 | 338 | 1,287 | 1,069 | John H. Steel | Daniel J. Luneau - St. Albans | ||||||||||||||||||||
Schuyler W. Sweet | Mary K. Parent - St. Johnsbury | ||||||||||||||||||||||||||||||
Equipment Expense | 625 | 528 | 1,764 | 1,574 | Samuel H. Ruggiano - St. Albans | ||||||||||||||||||||||||||
David S. Silverman - All | |||||||||||||||||||||||||||||||
Other Expenses | 1,833 | 1,770 | 5,400 | 5,005 | Schuyler W. Sweet - Northern NH | ||||||||||||||||||||||||||
Union Bank Offices (ATMs at all Branch Locations) | |||||||||||||||||||||||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY | SEPT 30, 2019 | SEPT 30, 2018 | Total | 7,001 | 6,525 | 20,321 | 18,955 | ||||||||||||||||||||||||
Income Before Taxes | 3,215 | 2,786 | 9,263 | 8,965 | VERMONT | ||||||||||||||||||||||||||
Noninterest Bearing Deposits | $ | 137,239 | $ | 126,596 | |||||||||||||||||||||||||||
Berlin | 1028 US Route 302 | 802.476.0061 | |||||||||||||||||||||||||||||
Interest Bearing Deposits | 419,646 | 407,965 | Income Tax Expense | 477 | 475 | 1,374 | 1,457 | Danville | 421 Route 2 East | 802.684.2211 | |||||||||||||||||||||
Fairfax | Jct. Routes 104 & 128 | 802.849.2600 | |||||||||||||||||||||||||||||
Time Deposits | 159,844 | 133,162 | Net income | $ | 2,738 | $ | 2,311 | $ | 7,889 | $ | 7,508 | Hardwick | 103 VT Route 15 West | 802.472.8100 | |||||||||||||||||
Jeffersonville | 5062 VT Route 15 | 802.644.6600 | |||||||||||||||||||||||||||||
Borrowed Funds | 47,164 | 41,990 | Earnings per share | $ | 0.62 | $ | 0.52 | $ | 1.77 | $ | 1.68 | Jericho | 368 VT Route 15 | 802.899.7500 | |||||||||||||||||
Johnson | 198 Lower Main Street | 802.635.6600 | |||||||||||||||||||||||||||||
Accrued Interest & Other Liabilities | 10,382 | 9,168 | Book Value Per Share | $ | 15.80 | $ | 13.61 | Lyndonville | 183 Depot Street | 802.626.3100 | |||||||||||||||||||||
Morrisville | 20 Lower Main Street | 802.888.6600 | |||||||||||||||||||||||||||||
Common Stock | 9,892 | 9,882 | 65 Northgate Plaza | 802.888.6860 | |||||||||||||||||||||||||||
St. Albans | 15 Mapleville Depot | 802.524.9000 | |||||||||||||||||||||||||||||
Additional Paid-in Capital | 1,099 | 897 | St. Johnsbury | 364 Railroad Street | 802.748.3131 | ||||||||||||||||||||||||||
Retained Earnings | 325 Portland Street | 802.748.3121 | |||||||||||||||||||||||||||||
62,645 | 60,686 | Stowe | 47 Park Street | 802.253.6600 | |||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | 1,163 | (6,612 | ) | Williston | Branch | ||||||||||||||||||||||||||
31 Market St | 802.878.7900 | ||||||||||||||||||||||||||||||
Loan Center | |||||||||||||||||||||||||||||||
Treasury Stock at Cost | (4,186 | ) | (4,076 | ) | 31 Market St | 802.865.1000 | |||||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 844,888 | $ | 779,658 | NEW HAMPSHIRE | ||||||||||||||||||||||||||
Standby letters of credit were $2,308,000 and $2,125,000 at September 30, 2019 and 2018, respectively. | Groveton | 3 State Street | 603.636.1611 | ||||||||||||||||||||||||||||
Littleton | 263 Dells Road | 603.444.7136 | |||||||||||||||||||||||||||||
76 Main Street | 603.444.5321 | ||||||||||||||||||||||||||||||
Lincoln | 135 Main Street | 603.745.4000 | |||||||||||||||||||||||||||||
North Conway | Commercial Loan Center | ||||||||||||||||||||||||||||||
2541 White Mountain Hwy | 603.662.9408 | ||||||||||||||||||||||||||||||
N. Woodstock | 155 Main Street | 603.745.2488 |