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EX-99.1 - EXHIBIT 99.1 COURTESY PDF COPY - UNION BANKSHARES INC | unb3q2012shrptcourtesy.pdf |
8-K - BODY OF FORM 8-K - UNION BANKSHARES INC | form8-k3rdqtr2012shrptstoc.htm |
Exhibit 99.1
continued banks by restricting growth and by imposing additional data reporting requirements, which would increase overhead expenses for us. We are closely monitoring Basel III so that we may determine what affect it may have on our company, if any. On a positive note, our region enjoyed glorious summer weather and spectacular fall colors, and the regional travel and tourism industry had reasonably good financial results. We are now looking forward to a winter that brings us much snow accompanied by the tourism dollars on which our communities depend. Enclosed is your dividend check or advice of deposit representing a dividend of $0.25 per share issued to shareholders of record October 27, 2012 and payable November 8, 2012. Sincerely, | ABOUT UNION BANKSHARES | November 8, 2012 | |||||||
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 northwestern 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 has recently grown through acquisition and operates 17 banking offices, a loan center and 34 ATMs. Union Bank is committed to the communities it serves, and encourages employee participation in community events and charitable services. The asset base of over $583 million provides the financial strength to successfully serve its constituents. Union Bank has scored an “Outstanding” rating on all Community Reinvestment Act examinations since 1995 and has been an SBA “Preferred Lender” since 1987. | DEAR SHAREHOLDER, We are pleased to report the financial results for the third quarter of 2012. Total Assets at quarter end were $583 million, a 6.8% increase compared to the same period in 2011. Loans grew to $465 million, an 8.3% increase year over year. Total deposits were $505 million, a 7.1% increase compared to the third quarter of 2011. Overall we are pleased to be experiencing this level of asset and deposit growth. Net income for the quarter was $1.98 million, a 38.8% increase compared to the third quarter of 2011. Year to date net income at September 30 was $4.65 million for 2012 as compared to $3.49 million for 2011, a 33.3% increase year over year. Earnings per share year to date are $1.04 compared to $0.78 in 2011. As we have reminded you in the past, we incurred $407 thousand in one-time pre-tax branch acquisition costs through the first three quarters of 2011 which have not recurred in 2012 and should be considered when analyzing the significant increase in earnings year over year. The combination of the prolonged low interest rate environment, a modest resurgence in home sales, and an active team of dedicated employees is helping us generate record levels of home loans. Many of these loans are originated and subsequently sold to the secondary market to manage interest rate risk and to generate fee income. In 2012 income attributable to selling loans to the secondary market was $2.44 million compared to $990 thousand in 2011. While we are enjoying the benefit of the residential loan activity, we are also cognizant that some of this income is at risk should the environment change. In the aftermath of the financial meltdown of 2008 and ensuing economic difficulties, there has been a movement to stiffen the regulation of financial institutions to prevent similar events in the future. Though perhaps well intentioned, the regulations promulgated and implemented to date have done little to insulate the economy from the risk taking of the very largest financial institutions, and rather have made the task of compliance very difficult for community banking companies. Of current concern is an internationally promulgated regulatory frame work known as Basel III. As originally proposed, Basel III was to apply to the largest, “Systemically Important Financial Institutions” in the United States. However, the proposals from our primary Federal regulators indicate that Basel III may apply to most banks and bank holding companies, including community banks such as Union. As proposed, Basel III redefines regulatory capital, requires higher levels of capital to be considered “well capitalized” and substantially changes the manner in which assets are risk weighted to calculate regulatory capital. Potentially, Basel III implementation could pose challenges to community | ||||||||
SHAREHOLDER ASSISTANCE AND INVESTOR INFORMATION | |||||||||
UNION BANK OFFICES (ATMS AT ALL BRANCH LOCATIONS) | |||||||||
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 JoAnn Tallman, Assistant Secretary at 802-888-6600 or contact our Transfer Agent at the address and phone number listed below: | |||||||||
VERMONT | MORRISVILLE | S. BURLINGTON | |||||||
DANVILLE | 20 Lower Main St. 802-888-6600 | Loan Center 30 Kimball Ave. 802-865-1000 | |||||||
421 Route 2 East 802-684-2211 | |||||||||
65 Northgate Plaza Route 100 802-888-6860 | |||||||||
FAIRFAX | STOWE | ||||||||
Jct. Rtes. 104&128 802-849-2600 | 47 Park St. 802-253-6600 | Transfer Agent: | Registrar & Transfer Company Attn: Stock Transfer Department 10 Commerce Drive Cranford, NJ 07016 Phone: 800-368-5948 Fax: 908-497-2318 E-mail: info@rtco.com | ||||||
ST. ALBANS | |||||||||
HARDWICK | 15 Mapleville Depot 802-524-9000 | NEW HAMPSHIRE | |||||||
103 VT Rte. 15 802-472-8100 | GROVETON | ||||||||
ST. JOHNSBURY | 3 State Street 603-636-1611 | ||||||||
JEFFERSONVILLE | 364 Railroad St. 802-748-3131 | NASDAQ Stock Market | |||||||
44 Main Street 802-644-6600 | LITTLETON | Ticker Symbol: | UNB | ||||||
325 Portland St. 802-748-3121 | 263 Dells Road 603-444-7136 | Corporate Name: | Union Bankshares, Inc. | ||||||
JOHNSON | Corporate Address: | 20 Lower Main Street PO Box 667 Morrisville, VT 05661-0667 | |||||||
198 Lower Main St. 802-635-6600 | Green Mtn. Mall 1998 Memorial Dr. 802-748-2454 | 76 Main Street 603-444-5321 | |||||||
Investor Relations: | www.UnionBankVT.com | ||||||||
LYNDONVILLE | N. WOODSTOCK | ||||||||
183 Depot St. 802-626-3100 | 155 Main Street 603-745-2488 | ||||||||
Third Quarter Financial Report | CONSOLIDATED BALANCE SHEETS (unaudited, in thousands) | ||||||||||||||||
ASSETS | September 30, 2012 | September 30, 2011 | |||||||||||||||
DIRECTORS - UNION BANKSHARES, INC. | OFFICERS - UNION BANK | Cash and due from banks | $ | 4,207 | $ | 5,133 | |||||||||||
William J. Andreas-Vice President | Littleton | Federal funds sold & overnight deposits | 30,873 | 25,425 | |||||||||||||
Kenneth D. Gibbons-Chairman | David S. Silverman | Tracy Pierce Ash-Assistant Treasurer | Littleton | Interest bearing deposits in banks | 19,634 | 20,194 | |||||||||||
Cynthia D. Borck | John H. Steel | Rhonda L. Bennett-Vice President | Morrisville | Investment securities | 35,057 | 41,266 | |||||||||||
Steven J. Bourgeois | Schuyler W. Sweet | Jessica L. Bunnell-Residential Loan Officer | St. Johnsbury | Loans held for sale | 15,318 | 4,242 | |||||||||||
Timothy W. Sargent | Neil J. Van Dyke | Stacey L.B. Chase-Assistant Treasurer | Morrisville | Loans, net | 449,341 | 424,822 | |||||||||||
Barbara J. Churchill-Assistant Treasurer | Morrisville | Reserve for loan losses | (4,556 | ) | (4,186 | ) | |||||||||||
Everett C. Comstock-Assistant Treasurer | Morrisville | Premises and equipment, net | 10,328 | 8,952 | |||||||||||||
DIRECTORS - UNION BANK | Jeffrey G. Coslett-Senior Vice President | Morrisville | Other real estate owned, net | 1,451 | 658 | ||||||||||||
John Currier-Assistant Vice President | Groveton | Accrued interest & other assets | 21,262 | 19,284 | |||||||||||||
Kenneth D. Gibbons-Chairman | David S. Silverman | Michael C. Curtis-Vice President | St. Albans | Total Assets | $ | 582,915 | $ | 545,790 | |||||||||
Cynthia D. Borck | John H. Steel | Jennifer Degree-Assistant Treasurer | Morrisville | LIABILITIES & SHAREHOLDERS' EQUITY | |||||||||||||
Steven J. Bourgeois | Schuyler W. Sweet | Jessica Eastman-Assistant Treasurer | So. Burlington | Noninterest bearing deposits | $ | 79,244 | $ | 75,528 | |||||||||
Timothy W. Sargent | Neil J. Van Dyke | Peter J. Eley-SVP, Managing Trust Officer | Morrisville | Interest bearing deposits | 277,504 | 239,296 | |||||||||||
Don D. Goodhue-Vice President | Morrisville | Time deposits | 148,068 | 156,701 | |||||||||||||
Melissa A. Greene-Assistant Vice President | Hardwick | Borrowed funds | 25,756 | 26,017 | |||||||||||||
OFFICERS - UNION BANKSHARES, INC. | Paul E. Grogan-Facilities Officer | Morrisville | Accrued interest & other liabilities | 10,223 | 5,653 | ||||||||||||
Karyn J. Hale-Vice President | Morrisville | Common stock | 9,848 | 9,847 | |||||||||||||
Kenneth D. Gibbons-Chairman | Claire A. Hindes-Vice President | Morrisville | Additional paid-in capital | 293 | 272 | ||||||||||||
David S. Silverman-President & CEO | Robert D. Hofmann-Senior Vice President | Morrisville | Retained earnings | 39,688 | 37,766 | ||||||||||||
Marsha A. Mongeon-Vice President/Treasurer/CFO | Patricia N. Hogan-Vice President | Morrisville | Accumulated other comprehensive loss | (3,873 | ) | (1,467 | ) | ||||||||||
John H. Steel-Secretary | Tracey D. Holbrook-Regional Vice President | St. Johnsbury | Treasury stock at cost | (3,836 | ) | (3,823 | ) | ||||||||||
JoAnn A. Tallman-Assistant Secretary | Lura L. Jacques-Asst. VP, Trust Officer | St. Albans | Total Liabilities & Shareholders' Equity | $ | 582,915 | $ | 545,790 | ||||||||||
Lynne P. Jewett-Assistant Vice President | Morrisville | Standby letters of credit were $2,006,000 and $1,719,000 at September 30, 2012 and 2011, respectively. | |||||||||||||||
Stephen H. Kendall-Senior Vice President | Morrisville | ||||||||||||||||
REGIONAL ADVISORY BOARDS | Susan F. Lassiter-Vice President | Jeffersonville | CONSOLIDATED STATEMENTS OF INCOME (unaudited, in thousands) | ||||||||||||||
Christine S. Latulip-Regional Vice President | Littleton | Sept. 30, 2012 | Sept. 30, 2011 | Sept. 30, 2012 | Sept. 30, 2011 | ||||||||||||
NORTHERN NEW HAMPSHIRE | Edward L. Levite-Senior Loan Originator | So. Burlington | (3 months ended) | (9 months ended) | |||||||||||||
Joel S. Bourassa | Schuyler W. Sweet | Virginia M. Locke-Assistant Vice President | Littleton | Interest income | $ | 6,355 | $ | 6,118 | $ | 18,736 | $ | 17,350 | |||||
Stanley T. Fillion | Norrine A. Williams | Carrie R. Locklin-Assistant Vice President | Morrisville | Interest expense | 815 | 1,016 | 2,578 | 2,979 | |||||||||
Robyn A. Masi-Vice President | Stowe | Net interest income | 5,540 | 5,102 | 16,158 | 14,371 | |||||||||||
Sherrie A. Menard-Assistant Vice President | Morrisville | Provision for loan losses | 150 | 150 | 510 | 450 | |||||||||||
ST. ALBANS | Marsha A. Mongeon-Sr. Vice President, CFO | Morrisville | Net interest income after | 5,390 | 4,952 | 15,648 | 13,921 | ||||||||||
Steven J. Bourgeois | Daniel J. Luneau | Karen Carlson Noyes-Vice President | Morrisville | provision for loan losses | |||||||||||||
Coleen K. Kohaut | Samuel H. Ruggiano | Barbara A. Olden-Vice President | St. Johnsbury | Trust income | 154 | 132 | 460 | 403 | |||||||||
Deborah J. Partlow-Asst. VP, Sr. Trust Officer | Morrisville | Noninterest income | 2,734 | 1,880 | 6,499 | 4,657 | |||||||||||
Bradley S. Prior-Assistant Treasurer | Morrisville | Noninterest expenses: | |||||||||||||||
ST. JOHNSBURY | Craig S. Provost-Vice President | Stowe | Salaries & wages | 2,235 | 2,100 | 6,704 | 5,722 | ||||||||||
Dwight A. Davis | Justin P. Lavely | Robert J. Richardson-Vice President | Morrisville | Pension & employee benefits | 968 | 790 | 3,083 | 2,386 | |||||||||
Rosemary H. Gingue | Nancy J. Poulos | Lesley S. Russ-Assistant Treasurer | Morrisville | Occupancy expense, net | 252 | 276 | 881 | 827 | |||||||||
David S. Silverman-President & CEO | Morrisville | Equipment expense | 396 | 319 | 1,082 | 882 | |||||||||||
Judy R. Smith-Vice President | St. Albans | Other expenses | 1,894 | 1,660 | 5,099 | 4,917 | |||||||||||
ALL: David S. Silverman | John H. Steel-Secretary | Morrisville | Total | 5,745 | 5,145 | 16,849 | 14,734 | ||||||||||
Curtis C. Swan-Assistant Vice President | Fairfax | Income before taxes | 2,533 | 1,819 | 5,758 | 4,247 | |||||||||||
JoAnn A. Tallman-Assistant Secretary | Morrisville | Income tax expense | 552 | 392 | 1,112 | 761 | |||||||||||
Francis E. Welch-Assistant Vice President | Morrisville | Net income | $ | 1,981 | $ | 1,427 | $ | 4,646 | $ | 3,486 | |||||||
Martha J. Wilkins-Assistant Treasurer | Lyndonville | Earnings per share | $ | 0.44 | $ | 0.32 | $ | 1.04 | $ | 0.78 | |||||||
Lorraine G. Willett-Assistant Vice President | Morrisville | Book value per share | $ | 9.45 | $ | 9.56 |