Exhibit 99.1
November 3, 2022 | ||||||||||||||||||||||||||
We are pleased to report the financial results for Union Bankshares, Inc. as of September 30th, 2022. Consolidated net income for the three months ended September 30, 2022 was $3.8 million, compared to $3.9 million, for the same period in 2021, and $9.2 million, for the nine months ended September 30, 2022, compared to $9.8 million, for the same period in 2021. Total assets were $1.3 billion as of September 30, 2022, compared to $1.2 billion as of September 30, 2021, an increase of $142.0 million, or 12.3%. Given the changes in the operating environment in 2022 compared to 2021, Management and the Board are generally pleased with these results. When we developed our business plan for 2022, we expected moderately increasing interest rates, a slowing real estate market, and lower balance sheet growth. While we were directionally correct, we did not anticipate the magnitude of interest rate increases and the rapid slowing of the real estate market. We also did not forecast the sharp increase in inflation, particularly in the energy sector. As a result, the Federal Reserve began to fight inflation with substantial interest rate hikes that continue to this day. Sharp increases in short term rates and prospects for continued inflation caused long term residential loan rates to more than double, slowing the real estate market already constrained by a lack of available-for-sale inventory. The slowing housing market and rapidly increasing interest rate environment resulted in a significant decrease in fee income from selling residential loans. Loan sales for the first nine months of 2022 generated fee income of $748 thousand, compared to $4.0 million for the first nine months of 2021. At the same time, our asset sensitive balance sheet, as well as strong loan origination volume, increased our net interest income to $29.1 million for the first nine months of 2022 compared to 26.5 million for the first nine months of 2021, an increase of $2.6 million. | Total loans outstanding as of September 30, 2022 were $942.5 million compared to $790.0 million as of September 30, 2021, an increase of $152.5 million, or 19.3%. Although less than prior years, loan demand for commercial and residential real estate remained strong during the first nine months of 2022. Construction loans remain strong with significant committed, but unadvanced funds available to be drawn in the coming months, which will continue to increase balances outstanding. Investment securities were $255.7 million as of September 30, 2022. Most of these securities, primarily US government agency debt securities, were purchased prior to the recent increases in interest rates. The increase in interest rates, specifically the 10-year treasury rate, has decreased the current market value of the portfolio by $51.8 million as of September 30, 2022. Management assesses the credit quality of the investment portfolio as satisfactory and does not expect to realize losses from the portfolio. We have just enjoyed another spectacular fall foliage season, with temperate weather and glorious leaf viewing shared with the many people who visit and enjoy our region. We feel blessed to live where others aspire to visit and hope for a more peaceful world stage than we have experienced this year. We are pleased to report that the Board of Directors declared a cash dividend of $0.35 per share for the quarter payable November 3, 2022, to shareholders of record as of October 29, 2022. | |||||||||||||||||||||||||
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 18 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 130 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. Union Bank has received an "Outstanding" rating for its compliance with the Community Reinvestment Act (CRA). An institution in this group has an excellent record of helping to meet the credit needs of its assessment area, particularly in low-and moderate income neighborhoods, in a manner consistent with its resources and capabilities. | ||||||||||||||||||||||||||
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, 2022 | Sept 30, 2021 | Sept 30, 2022 | Sept 30, 2021 | Sept 30, 2022 | Sept 30, 2021 | Timothy W. Sargent - Vice Chair | David S. Silverman - President & CEO | |||||||||||||||||||||||||||||||||||||||||||||||||||
Joel S. Bourassa | Karyn J. Hale - Chief Financial Officer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(3 months ended) | (9 months ended) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dawn D. Bugbee | Timothy W. Sargent - Secretary | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Due from Banks | $ | 4,061 | $ | 5,029 | Interest Income | $ | 11,463 | $ | 9,852 | $ | 31,593 | $ | 29,250 | ||||||||||||||||||||||||||||||||||||||||||||||
Nancy C. Putnam | Kristy Adams Alfieri - Assistant Secretary | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gregory D. Sargent | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal Funds Sold & Overnight Deposits | 28,080 | 115,052 | Interest Expense | 1,023 | 706 | 2,519 | 2,786 | David S. Silverman | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net Interest Income | 10,440 | 9,146 | 29,074 | 26,464 | Janet P. Spitler | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Bearing Deposits in Banks | 14,441 | 12,201 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for Loan Losses | — | — | — | 225 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | 241,255 | 185,387 | Net Interest Income After Provision for Loan Losses | 10,440 | 9,146 | 29,074 | 26,239 | Union Bank | REGIONAL ADVISORY BOARD MEMBERS | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Held for Sale | 3,143 | 17,821 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trust Income | 203 | 216 | 629 | 599 | DIRECTORS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, net | 939,352 | 772,222 | Noninterest Income | 2,264 | 3,985 | 6,058 | 9,362 | Neil J. Van Dyke - Chair | Michael R. Barrett - St. Johnsbury | ||||||||||||||||||||||||||||||||||||||||||||||||||
Timothy W. Sargent - Vice Chair | Steven J. Bourgeois - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reserve for Loan Losses | (8,340) | (8,561) | Noninterest Expenses: | Joel S. Bourassa | Andrew A. Dean - Northern NH | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Salaries & Wages | 3,575 | 3,918 | 10,505 | 10,554 | Dawn D. Bugbee | Stanley T. Fillion - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and Equipment, net | 20,718 | 21,808 | Mary K. Parent | Rosemary H. Gingue - St. Johnsbury | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefits | 1,151 | 1,192 | 3,751 | 3,564 | Nancy C. Putnam | John M. Goodrich - St. Johnsbury | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Interest & other Assets | 57,580 | 37,327 | Gregory D. Sargent | Christopher M. Knapp - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
David S. Silverman | Coleen K. Kohaut - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Assets | $ | 1,300,290 | $ | 1,158,286 | Occupancy Expense, net | 448 | 425 | 1,437 | 1,429 | Janet P. Spitler | Justin P. Lavely - St. Johnsbury | ||||||||||||||||||||||||||||||||||||||||||||||||
Daniel J. Luneau - St. Albans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equipment Expense | 948 | 872 | 2,798 | 2,542 | Samuel H. Ruggiano - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Christine A. Sheley - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
David S. Silverman - All | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY | Sept 30, 2022 | Sept 30, 2021 | Other Expenses | 2,244 | 2,141 | 6,284 | 6,301 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Union Bank Offices (ATMs at all Branch Locations) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 8,366 | 8,548 | 24,775 | 24,390 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest Bearing Deposits | $ | 337,513 | $ | 252,940 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Before Taxes | 4,541 | 4,799 | 10,986 | 11,810 | VERMONT | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Bearing Deposits | 722,208 | 680,438 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Berlin | 1028 US Route 302 | 802.476.0061 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Time Deposits | 136,691 | 107,266 | Income Tax Expense | 783 | 874 | 1,815 | 2,018 | Fairfax | Jct. Routes 104 & 128 | 802.849.2600 | |||||||||||||||||||||||||||||||||||||||||||||||||
Hardwick | 103 VT Route 15 West | 802.472.8100 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowed Funds | 25,000 | 7,000 | Net income | $ | 3,758 | $ | 3,925 | $ | 9,171 | $ | 9,792 | Jeffersonville | 5062 VT Route 15 | 802.644.6600 | |||||||||||||||||||||||||||||||||||||||||||||
Jericho | 368 VT Route 15 | 802.899.7500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subordinated Notes | 16,196 | 16,164 | Earnings per share | $ | 0.84 | $ | 0.87 | $ | 2.04 | $ | 2.18 | Johnson | 198 Lower Main Street | 802.635.6600 | |||||||||||||||||||||||||||||||||||||||||||||
Lyndonville | 183 Depot Street | 802.626.3100 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Interest & Other Liabilities | 12,954 | 10,730 | Book Value Per Share | $ | 11.06 | $ | 18.67 | Morrisville | 20 Lower Main Street | 802.888.6600 | |||||||||||||||||||||||||||||||||||||||||||||||||
65 Northgate Plaza | 802.888.6860 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | 9,941 | 9,918 | Shelburne | 5068 Shelburne Road | 802.985.0250 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
St. Albans | 15 Mapleville Depot | 802.524.9000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Paid-in Capital | 2,150 | 1,728 | St. Johnsbury | Operations and Loan Center | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retained Earnings | 364 Railroad Street | 802.748.3131 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
82,801 | 76,452 | Branch | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive (loss) Income | (40,938) | (188) | 325 Portland Street | 802.748.3121 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stowe | 47 Park Street | 802.253.6600 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Williston | Branch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury Stock at Cost | (4,226) | (4,162) | 31 Market St | 802.878.7900 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Center | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 1,300,290 | $ | 1,158,286 | 31 Market St | 802.865.1000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Standby letters of credit were $1,729,000 and $2,364,000 at September 30, 2022 and 2021, respectively. | NEW HAMPSHIRE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |