Exhibit 99.1
February 1, 2024 | ||||||||||||||||||||||||||
We are pleased to provide you with information about our 2023 earnings and financial position at year end, a quarterly dividend declaration, and related information about Union Bankshares, Inc. Consolidated net income for the three months ended December 31, 2023, was $3.0 million, or $0.68 per share, compared to $3.4 million, or $0.77 cents per share, for the same period in 2022, and $11.3 million, or $2.50 per share, for the year ended December 31, 2023, compared to $12.6 million, or $2.81 per share for the year ended December 31, 2022. Total assets were $1.5 billion as of December 31, 2023, compared to $1.3 billion as of December 31, 2022, an increase of $132.4 million, or 9.9%. Asset growth was driven by loan growth, with total loans outstanding as of December 31, 2023, at $1.0 billion, compared to $961.7 million as of December 31, 2022. Asset quality remains strong as total net charge-offs for the year ended December 31, 2023, were $4 thousand and past due loans remain very low. Union Bankshares, Inc. had total equity capital of $65.8 million and a book value per share of $14.56 as of December 31, 2023, compared to $55.2 million and a book value of $12.25 per share as of December 31, 2022. The increase in total capital was attributable to net income of $11.3 million for 2023 and a decrease in the accumulated other comprehensive loss of $5.5 million as it relates to unrealized losses in the investment portfolio, partially offset by $6.5 million in dividends paid to shareholders. Consolidated net income decreased $1.4 million, or 10.8%, to $11.3 million for the year ended December 31, 2023, compared $12.6 million for the year ended December 31, 2022, due to a decrease in net interest income of $1.6 million and an increase in noninterest expenses of $1.7 million. The banking industry has experienced volatility during 2023 with concerns related to liquidity, deposit outflows,unrealized securities losses, and | interest rates. Union Bank, like others, has experienced earnings pressure due to the prolonged and steep yield curve inversion. Decreases in net income were primarily driven by changes in interest rates between periods resulting in a significant impact on the Company’s funding costs due to customer expectation of higher rates on deposit accounts and increased utilization of wholesale funding. The Company continues to focus on optimization of the net interest margin, maintaining strong asset quality, and increasing market share within our footprint. The company’s financial position remains strong, supported by a diverse deposit base, a strong liquidity position, excellent asset quality, and regulatory capital considered to be “well capitalized”. During 2023 we completed an important Information Technology initiative, converting our core computing from on-site hosting to cloud-based hosting. This will allow us to avoid future computer hardware investments and allow our IT staff to focus on customer-facing initiatives. In addition, we opened a long planned full-service branch in North Conway, New Hampshire to serve the Mount Washington Valley Region. Since opening a loan production office in North Conway in 2019 we have generated approximately $150 million in commercial loans in the region. We look forward to serving the loan and deposit needs of this active market. Both initiatives are important investments in Union Bankshares’ future. The Board of Directors is pleased to inform you that a cash dividend of $0.36 per share has been declared for the quarter payable February 1, 2024, to shareholders of record as of January 27, 2024. | |||||||||||||||||||||||||
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 19 banking offices, 2 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 | DEC 31, 2023 | DEC 31, 2022 | DEC 31, 2023 | DEC 31, 2022 | DEC 31, 2023 | DEC 31, 2022 | Timothy W. Sargent - Vice Chair | David S. Silverman - President & CEO | |||||||||||||||||||||||||||||||||||||||||||||||||||
Joel S. Bourassa | Karyn J. Hale - Chief Financial Officer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(3 months ended) | (12 months ended) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dawn D. Bugbee | Timothy W. Sargent - Secretary | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Due from Banks | $ | 4,429 | $ | 4,504 | Interest Income | $ | 15,416 | $ | 12,355 | $ | 57,110 | $ | 43,948 | ||||||||||||||||||||||||||||||||||||||||||||||
Mary K. Parent | Kristy Adams Alfieri - Assistant Secretary | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Expense | 6,314 | 2,005 | 19,267 | 4,524 | Nancy C. Putnam | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal Funds Sold & Overnight Deposits | 73,237 | 33,381 | Gregory D. Sargent | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Interest Income | 9,102 | 10,350 | 37,843 | 39,424 | David S. Silverman | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Bearing Deposits in Banks | 14,690 | 16,428 | Janet P. Spitler | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Loss Benefit | (338) | — | (499) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | 265,883 | 251,531 | Net Interest Income After Credit Loss Benefit | 9,440 | 10,350 | 38,342 | 39,424 | Union Bank | REGIONAL ADVISORY BOARD MEMBERS | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Held for Sale | 3,070 | 1,178 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wealth Management Income | 248 | 209 | 943 | 838 | DIRECTORS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, net | 1,030,022 | 959,493 | Noninterest Income | 2,421 | 2,195 | 8,961 | 8,615 | Neil J. Van Dyke - Chair | Michael R. Barrett - St. Johnsbury | ||||||||||||||||||||||||||||||||||||||||||||||||||
Timothy W. Sargent - Vice Chair | Steven J. Bourgeois - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses | (6,566) | (8,339) | Noninterest Expenses: | Joel S. Bourassa | Andrew A. Dean - Northern NH | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Salaries & Wages | 3,352 | 3,578 | 14,247 | 14,083 | Dawn D. Bugbee | Stanley T. Fillion - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and Equipment, net | 20,771 | 20,479 | Mary K. Parent | Rosemary H. Gingue - St. Johnsbury | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefits | 1,296 | 1,276 | 5,361 | 5,030 | Nancy C. Putnam | John M. Goodrich - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Interest & Other Assets | 63,352 | 57,834 | Gregory D. Sargent | Christopher M. Knapp - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
David S. Silverman | Coleen K. Kohaut - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Assets | $ | 1,468,888 | $ | 1,336,489 | Occupancy Expense, net | 516 | 476 | 2,035 | 1,913 | Janet P. Spitler | Justin P. Lavely - St. Johnsbury | ||||||||||||||||||||||||||||||||||||||||||||||||
Daniel J. Luneau - St. Albans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equipment Expense | 1,008 | 894 | 3,722 | 3,692 | Samuel H. Ruggiano - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Christine A. Sheley - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
David S. Silverman - All | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY | DEC 31, 2023 | DEC 31, 2022 | Other Expenses | 2,458 | 2,269 | 10,004 | 8,912 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Union Bank Offices (ATMs at all Branch Locations) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 8,630 | 8,493 | 35,369 | 33,630 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest Bearing Deposits | $ | 250,992 | $ | 286,145 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Before Taxes | 3,479 | 4,261 | 12,877 | 15,247 | VERMONT | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Bearing Deposits | 765,689 | 762,722 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Berlin | 1028 US Route 302 | 802.476.0061 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Time Deposits | 288,922 | 153,045 | Income Tax Expense | 430 | 817 | 1,620 | 2,632 | Fairfax | Jct. Routes 104 & 128 | 802.849.2600 | |||||||||||||||||||||||||||||||||||||||||||||||||
Hardwick | 103 VT Route 15 West | 802.472.8100 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowed Funds | 65,696 | 50,000 | Net income | $ | 3,049 | $ | 3,444 | $ | 11,257 | $ | 12,615 | Jeffersonville | 5062 VT Route 15 | 802.644.6600 | |||||||||||||||||||||||||||||||||||||||||||||
Jericho | 368 VT Route 15 | 802.899.7500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subordinated Notes | 16,239 | 16,205 | Earnings Per Share | $ | 0.68 | $ | 0.77 | $ | 2.50 | $ | 2.81 | Johnson | 198 Lower Main Street | 802.635.6600 | |||||||||||||||||||||||||||||||||||||||||||||
Lyndonville | 183 Depot Street | 802.626.3100 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Interest & Other Liabilities | 15,543 | 13,152 | Book Value Per Share | $ | 14.56 | $ | 12.25 | Morrisville | 20 Lower Main Street | 802.888.6600 | |||||||||||||||||||||||||||||||||||||||||||||||||
65 Northgate Plaza | 802.888.6860 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | 9,991 | 9,965 | Shelburne | 5068 Shelburne Road | 802.985.0227 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
St. Albans | 15 Mapleville Depot | 802.524.9000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Paid-in Capital | 2,621 | 2,225 | St. Johnsbury | Operations and Loan Center | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retained Earnings | 364 Railroad Street | 802.748.3131 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
89,472 | 84,669 | Branch | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | (31,955) | (37,419) | 325 Portland Street | 802.748.3121 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stowe | 47 Park Street | 802.253.6600 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Williston | Branch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury Stock at Cost | (4,322) | (4,220) | 31 Market St | 802.878.7900 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Center | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 1,468,888 | $ | 1,336,489 | 31 Market St | 802.865.1000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Standby letters of credit were $1,557,000 and $1,762,000 at December 31, 2023 and 2022, 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 | 120 North-South Road | 603.356.4010 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||