Attached files
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| EX-99.1 - EXHIBIT 99.1 COURTESY PDF COPY - UNION BANKSHARES INC | unb2q2013shrptcourtesy.pdf |
| 8-K - BODY OF FORM 8-K - UNION BANKSHARES INC | form8-k2ndqtr2013shrpt.htm |
Exhibit 99.1
continued Basel III will affect our capital planning and management in the future. Reports from our travel and tourism customers indicate the summer season has begun successfully despite the unusually sultry and rainy weather. Likewise, the construction trades are for the most part busy, dependent on geography and specialty. The same cannot be said for farmers, as the heavy rains wreak havoc on feed crops such as corn and hay. Our sources indicate the economy in our market area continues to improve, but is by no means robust. We are guardedly optimistic that the local economy will continue to improve over time. Enclosed please find your dividend check or advice of deposit representing a dividend of $0.25 per share to shareholders of record July 27, 2013 and payable August 8, 2013. Sincerely, | August 8, 2013 | ||||||||
ABOUT UNION BANKSHARES |  | DEAR SHAREHOLDER, We are pleased to report the financial results of your company for the second quarter of 2013. Earnings for the quarter were $0.40 per share compared to $0.32 per share for the second quarter of 2012. Year to date earnings were $0.79 per share compared to $0.60 per share for the same period of 2012. Assets were $546 million at June 30, 2013 compared to $534 million at June 30, 2012. Second quarter operating results continue to be bolstered by strong residential loan sales, low loan charge offs, and lower pension expense compared to the same period last year. As hoped, commercial loan demand and production have improved, allowing us to increase our total loans outstanding. Our loan pipelines indicate this should continue into at least the third quarter of this year and should improve loan interest income in the coming months. Chairman of the Federal Reserve Ben Bernanke has been imitating the great Flying Wallendas high wire act, balancing inflation and job creation with the United States’ and the World’s economies at stake. Largely, he and the Federal Open Market Committee have done a sound job stabilizing the economy during extremely difficult times. Chairman Bernanke has spoken publically several times in the past few months and whether by accident or on purpose, managed to spook the bond markets and caused the ten year Treasury bill yield to increase over 100 basis points. While some may view this as a sign of an improving economy, the increase in bond yields has caused an equivalent increase in residential mortgage interest rates. From a macro perspective this may dampen an improving though fragile housing market. From a micro perspective Union Bank may see lower residential loan demand with a resulting decrease in gains on sales of residential loans. Unfortunately for savers, bank deposit interest rates are unlikely to rise anytime soon as banks have plenty of liquidity and are unlikely to “pay up” for deposits they cannot deploy into sound loans. We have discussed the proposed Basel III capital requirements in previous quarterly shareholder letters. Basel III is shorthand for the Third Basel Accord, a global regulatory standard on bank capital adequacy. The Accord was only to apply to the largest US banks, but US regulators decided to impose the standards on all banks including Union. The originally proposed regulation had the potential of requiring community banks to hold significantly more capital than currently required. The final standards were published on July 9, 2013 with an implementation date of January 1, 2015. Our initial impression is that we will be able to comply with the new increased capital requirements when Basel III is implemented. It is a top priority of Management and the Board to quantify how | |||||||
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 operates 16 banking offices, a loan center and 32 ATMs. Union Bank is committed to the communities it serves, and encourages employee participation in community events and charitable services. The growing asset base of over $546 million provides the financial strength to successfully serve its constituents. Union Bank has consistently been recognized for our Community Reinvestment efforts and for our performance in residential lending to borrowers of all income levels. The US Small Business Administration has designated Union Bank as a Preferred Lender. | |||||||||
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Kenneth D. Gibbons Chairman | David S. Silverman President & CEO | 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 | STOWE | |||||||
DANVILLE | 20 Lower Main St. 802-888-6600 | 47 Park St. 802-253-6600 | |||||||
421 Route 2 East 802-684-2211 | |||||||||
65 Northgate Plaza Route 100 802-888-6860 | NEW HAMPSHIRE | ||||||||
FAIRFAX | GROVETON | ||||||||
Jct. Rtes. 104&128 802-849-2600 | 3 State Street 603-636-1611 | 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 | LITTLETON | |||||||
103 VT Rte. 15 802-472-8100 | 263 Dells Road 603-444-7136 | ||||||||
ST. JOHNSBURY | |||||||||
JEFFERSONVILLE | 364 Railroad St. 802-748-3131 | 76 Main Street 603-444-5321 | NASDAQ Stock Market | ||||||
44 Main Street 802-644-6600 | Ticker Symbol: | UNB | |||||||
325 Portland St. 802-748-3121 | N. WOODSTOCK | Corporate Name: | Union Bankshares, Inc. | ||||||
JOHNSON | 155 Main Street 603-745-2488 | Corporate Address: | 20 Lower Main Street PO Box 667 Morrisville, VT 05661-0667 | ||||||
198 Lower Main St. 802-635-6600 | |||||||||
S. BURLINGTON | Investor Relations: | www.UnionBankVT.com | |||||||
LYNDONVILLE | Loan Center 30 Kimball Ave. 802-865-1000 | ||||||||
183 Depot St. 802-626-3100 |  | ||||||||
Second Quarter Financial Report | OFFICERS - UNION BANK | CONSOLIDATED BALANCE SHEETS (unaudited, in thousands) | |||||||||||||||
Tracy Pierce Ash-Assistant Treasurer | Littleton | ASSETS | June 30, 2013 | June 30, 2012 | |||||||||||||
Diana M. Ashley-Assistant Treasurer | Fairfax | Cash and due from banks | $ | 3,977 | $ | 5,220 | |||||||||||
Rhonda L. Bennett-Vice President | Morrisville | Federal funds sold & overnight deposits | 8,277 | 7,132 | |||||||||||||
DIRECTORS - UNION BANKSHARES, INC. | Sherrie A. Bull-Vice President | Morrisville | Interest bearing deposits in banks | 22,262 | 22,027 | ||||||||||||
Stacey L.B. Chase-Assistant Vice President | Morrisville | Investment securities | 37,032 | 34,876 | |||||||||||||
Kenneth D. Gibbons-Chairman | David S. Silverman | Barbara J. Churchill-Assistant Treasurer | Morrisville | Loans held for sale | 4,460 | 15,105 | |||||||||||
Cynthia D. Borck | John H. Steel | Everett C. Comstock-Assistant Treasurer | Morrisville | Loans, net | 444,914 | 421,305 | |||||||||||
Steven J. Bourgeois | Schuyler W. Sweet | Jeffrey G. Coslett-Senior Vice President | Morrisville | Reserve for loan losses | (4,752 | ) | (4,580 | ) | |||||||||
Timothy W. Sargent | Neil J. Van Dyke | John Currier-Assistant Vice President | Groveton | Premises and equipment, net | 10,184 | 10,290 | |||||||||||
Michael C. Curtis-Vice President | St. Albans | Other real estate owned, net | 644 | 1,550 | |||||||||||||
Jennifer M. Degree-Assistant Treasurer | Morrisville | Accrued interest & other assets | 19,676 | 21,335 | |||||||||||||
Ronald C. Dion-Assistant Treasurer | Morrisville | Total Assets | $ | 546,674 | $ | 534,260 | |||||||||||
DIRECTORS - UNION BANK | Jessica Eastman-Assistant Vice President | So. Burlington | LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||||||||
Kenneth D. Gibbons-Chairman | Morrisville | Noninterest bearing deposits | $ | 79,888 | $ | 74,513 | |||||||||||
Kenneth D. Gibbons-Chairman | David S. Silverman | Don D. Goodhue-Vice President | Morrisville | Interest bearing deposits | 266,176 | 249,318 | |||||||||||
Cynthia D. Borck | John H. Steel | Melissa A. Greene-Vice President | Hardwick | Time deposits | 127,953 | 135,576 | |||||||||||
Steven J. Bourgeois | Schuyler W. Sweet | Paul E. Grogan-Facilities Officer | Morrisville | Borrowed funds | 20,178 | 23,983 | |||||||||||
John M. Goodrich | Neil J. Van Dyke | Karyn J. Hale-Vice President | Morrisville | Accrued interest & other liabilities | 6,685 | 9,842 | |||||||||||
Timothy W. Sargent | Claire A. Hindes-Vice President | Morrisville | Common stock | 9,852 | 9,848 | ||||||||||||
Robert D. Hofmann-Senior Vice President | Morrisville | Additional paid-in capital | 331 | 293 | |||||||||||||
Patricia N. Hogan-Senior Vice President | Morrisville | Retained earnings | 42,077 | 38,822 | |||||||||||||
OFFICERS - UNION BANKSHARES, INC. | Tracey D. Holbrook-Regional Vice President | St. Johnsbury | Accumulated other comprehensive loss | (2,588 | ) | (4,099 | ) | ||||||||||
Lura L. Jacques-Asst. VP, Trust Officer | St. Albans | Treasury stock at cost | (3,878 | ) | (3,836 | ) | |||||||||||
Kenneth D. Gibbons-Chairman | Lynne P. Jewett-Vice President | Morrisville | Total Liabilities & Shareholders' Equity | $ | 546,674 | $ | 534,260 | ||||||||||
David S. Silverman-President & CEO | Stephen H. Kendall-Senior Vice President | Morrisville | |||||||||||||||
Marsha A. Mongeon-Vice President/Treasurer/CFO | Susan F. Lassiter-Vice President | Jeffersonville | Standby letters of credit were $2,053,000 and $1,920,000 at June 30, 2013 and 2012, respectively. | ||||||||||||||
Jeffrey G. Coslett-Vice President | Christine S. Latulip-Regional Vice President | Littleton | |||||||||||||||
John H. Steel-Secretary | R. Ryan Leap-Senior Vice President | Morrisville | |||||||||||||||
JoAnn A. Tallman-Assistant Secretary | Edward L. Levite-Senior Loan Originator | So. Burlington | CONSOLIDATED STATEMENTS OF INCOME (unaudited, in thousands) | ||||||||||||||
Carrie R. Locklin-Assistant Vice President | Morrisville | June 30, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | ||||||||||||
Bonnie J. Losty-Vice President | Morrisville | (3 months ended) | (6 months ended) | ||||||||||||||
REGIONAL ADVISORY BOARDS | John L. Malm-Vice President | Littleton | Interest income | $ | 6,079 | $ | 6,185 | $ | 12,016 | $ | 12,381 | ||||||
Robyn A. Masi-Vice President | Stowe | Interest expense | 613 | 853 | 1,261 | 1,763 | |||||||||||
NORTHERN NEW HAMPSHIRE | Marsha A. Mongeon-Sr. Vice President, CFO | Morrisville | Net interest income | 5,466 | 5,332 | 10,755 | 10,618 | ||||||||||
Joel S. Bourassa | Schuyler W. Sweet | Samantha A. Norrie-Assistant Treasurer | Littleton | Provision for loan losses | 75 | 180 | 135 | 360 | |||||||||
Stanley T. Fillion | Norrine A. Williams | Karen Carlson Noyes-Vice President | Morrisville | Net interest income after | 5,391 | 5,152 | 10,620 | 10,258 | |||||||||
Barbara A. Olden-Vice President | St. Johnsbury | provision for loan losses | |||||||||||||||
Deborah J. Partlow-Asst. VP, Sr. Trust Officer | Morrisville | Trust income | 154 | 159 | 317 | 306 | |||||||||||
ST. ALBANS | Bradley S. Prior-Assistant Vice President | Morrisville | Noninterest income | 1,966 | 2,009 | 3,959 | 3,765 | ||||||||||
Steven J. Bourgeois | Daniel J. Luneau | Craig S. Provost-Vice President | Stowe | Noninterest expenses: | |||||||||||||
Coleen K. Kohaut | Samuel H. Ruggiano | Robert J. Richardson-Vice President | Morrisville | Salaries & wages | 2,235 | 2,235 | 4,392 | 4,469 | |||||||||
Lesley S. Russ-Assistant Treasurer | Morrisville | Pension & employee benefits | 638 | 1,057 | 1,321 | 2,115 | |||||||||||
David S. Silverman-President & CEO | Morrisville | Occupancy expense, net | 291 | 285 | 622 | 629 | |||||||||||
ST. JOHNSBURY | Judy R. Smith-Vice President | St. Albans | Equipment expense | 388 | 341 | 814 | 686 | ||||||||||
Michael R. Barrett | Justin P. Lavely | John H. Steel-Secretary | Morrisville | Other expenses | 1,670 | 1,645 | 3,252 | 3,205 | |||||||||
Dwight A. Davis | Alexandra S. Maclean | Curtis C. Swan-Assistant Vice President | Fairfax | Total | 5,222 | 5,563 | 10,401 | 11,104 | |||||||||
Rosemary H. Gingue | Mary K. Parent | JoAnn A. Tallman-Assistant Secretary | Morrisville | Income before taxes | 2,289 | 1,757 | 4,495 | 3,225 | |||||||||
Melyssa S. Whitcomb-Assistant Treasurer | Lyndonville | Income tax expense | 492 | 319 | 961 | 560 | |||||||||||
Lori J. Wiggett-Assistant Treasurer | No. Woodstock | Net income | $ | 1,797 | $ | 1,438 | $ | 3,534 | $ | 2,665 | |||||||
ALL: David S. Silverman | Martha J. Wilkins-Assistant Treasurer | Lyndonville | Earnings per share | $ | 0.40 | $ | 0.32 | $ | 0.79 | $ | 0.60 | ||||||
Lorraine G. Willett-Assistant Vice President | Morrisville | Book value per share | $ | 10.27 | $ | 9.20 | |||||||||||
Anita D. Woodcock-Vice President | Morrisville | ||||||||||||||||