Attached files
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| EX-99.1 - EXHIBIT 99.1 COURTESY PDF COPY - UNION BANKSHARES INC | unb3q2013shrptcourtesy.pdf |
| 8-K - BODY OF FORM 8-K - UNION BANKSHARES INC | form8-k3rdqtr2013shrpt.htm |
Exhibit 99.1
continued Grafton, and Coos Counties are not yet benefiting as much from the improving national economy. The important tourism sector of our local economy appears to be thriving. A very good winter season was joined by an excellent summer and fall season, which is just what the industry needed. It seems like quite a long time since we have sensed such optimism among travel and tourism business owners. Other sectors such as construction also seem to be improving, with the same West to East phenomenon mentioned above. Overall it is fair to observe that the local economy is better now than the same time last year. This is good for our Company. During this quarter the financial regulatory community published final rules on Basel III Capital Standards, a topic much discussed in this forum previously. The community banking sector was spared some of the most painful portions of the previously proposed Capital Standards. We have modeled our balance sheet to the new capital standards and find that we will continue to be considered "well capitalized" when the new capital standards are fully implemented. With this clarity available, your directors considered our earnings and dividend payout ratio and voted to issue a dividend of 26 cents per share to shareholders of record on October 26, 2013 and payable on November 7, 2013. This reflects a one cent per share, or 4%, increase from the previous dividend. Enclosed please find your dividend check or advice of deposit. Sincerely, | November 7, 2013 | ||||||||
ABOUT UNION BANKSHARES |  | DEAR SHAREHOLDER, We are pleased to report our financial results for the quarter ended September 30, 2013. Net income for the quarter was $2.1 million, or $0.47 per share, compared to $2.0 million, or $0.44 per share for the comparable quarter in 2012. Year to date earnings for 2013 were $5.6 million, or $1.26 per share, compared to $4.6 million, or $1.04 per share, for 2012. Thus far, for the first nine months of the year, we are running 21% ahead of the same period last year. Total assets for the quarter ended September 30, 2013 were $574.7 million compared to $582.9 million for the same period in 2012. As a reminder, in December of 2012 we undertook a modest deleveraging of our balance sheet, paying off approximately $11.0 million in borrowed funds. Total loans grew to $476.1 million as of September 30, 2013 from $464.7 million as of September 30, 2012. The increase is attributable to strong residential loan demand during the last quarter of 2012 and the first nine months of 2013, and solid demand for construction and commercial real estate loans. We continue to manage interest rate risk by selling the majority of the fifteen and thirty year residential mortgage loans originated. Our total deposits reached $507.3 million compared to the prior year of $504.8 million. Your Company had total capital of $46.7 million with a book value per share of $10.47 as of September 30, 2013 compared to $42.1 million and $9.45 per share at September 30, 2012. Results for 2013 thus far reflect a year to year increase in net interest income of $220 thousand, a decrease in the provision for loan losses of $280 thousand, and a decrease in noninterest expenses of $1.4 million. These improvements were partially offset by a decrease in noninterest income year over year of $497 thousand. The gain on the sale of residential real estate loans was $1.8 million for the nine months ended September 30, 2013 compared to $2.4 million for the same period in 2012. Our sold loan volume is higher in 2013 compared to 2012, however the margins on these sales have decreased year over year due to market conditions. Noninterest expenses decreased year over year primarily due to a reduction of $1.2 million in pension and employee benefits as a result of freezing the defined benefit pension plan as of October 5, 2012 and a decrease in Other Expenses of $301 thousand, which was mainly due to the $491 thousand decrease in the expense of Other Real Estate Owned. We are pleased with the performance of our loan portfolio. Our past due and non-accrual loans are lower both as a percentage of assets and in actual dollars. As a result, the costs associated with credit losses are down compared to last year. Notably, our net loan losses were $114 thousand for the nine months ended 2013 compared to $180 thousand for the same period in 2012. Likewise, the cost to carry bank owned properties, otherwise known as OREO Expense, was down considerably year over year, from $579 thousand in 2012 compared to $88 thousand in 2013. The reasons for this are a modestly improving economy, sound underwriting, and diligent collection efforts. Improvement in this area obviously improves our bottom line performance. The economy in our market area is a bit of a mixed bag, with mostly positive news. The real estate market has seen some improvement, though this improvement is stronger to weaker, from West to East in our market area. The same can be said for the economy as a whole, with Franklin, Chittenden, and Lamoille Counties seeing significant improvements, while Caledonia, | |||||||
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 33 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 $574 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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SHAREHOLDER ASSISTANCE AND INVESTOR INFORMATION | |||||||||
Kenneth D. Gibbons Chairman | David S. Silverman President & CEO | ||||||||
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 | |||||||||
Third Quarter Financial Report | OFFICERS - UNION BANK | CONSOLIDATED BALANCE SHEETS (unaudited, in thousands) | |||||||||||||||
Tracy Pierce Ash-Assistant Treasurer | Littleton | ASSETS | September 30, 2013 | September 30, 2012 | |||||||||||||
Diana M. Ashley-Assistant Treasurer | Fairfax | Cash and due from banks | $ | 4,032 | $ | 4,207 | |||||||||||
Rhonda L. Bennett-Vice President | Morrisville | Federal funds sold & overnight deposits | 12,377 | 30,873 | |||||||||||||
DIRECTORS - UNION BANKSHARES, INC. | Sherrie A. Bull-Vice President | Morrisville | Interest bearing deposits in banks | 19,562 | 19,634 | ||||||||||||
Stacey L.B. Chase-Assistant Vice President | Morrisville | Investment securities | 36,740 | 35,057 | |||||||||||||
Kenneth D. Gibbons-Chairman | David S. Silverman | Barbara J. Churchill-Assistant Treasurer | Morrisville | Loans held for sale | 4,221 | 15,318 | |||||||||||
Cynthia D. Borck | John H. Steel | Everett C. Comstock-Assistant Treasurer | Morrisville | Loans, net | 471,855 | 449,341 | |||||||||||
Steven J. Bourgeois | Schuyler W. Sweet | Jeffrey G. Coslett-Senior Vice President | Morrisville | Reserve for loan losses | (4,773 | ) | (4,556 | ) | |||||||||
Timothy W. Sargent | Neil J. Van Dyke | John A. Currier-Assistant Vice President | Groveton | Premises and equipment, net | 10,769 | 10,328 | |||||||||||
Michael C. Curtis-Vice President | St. Albans | Other real estate owned, net | 483 | 1,451 | |||||||||||||
Jennifer M. Degree-Assistant Treasurer | Morrisville | Accrued interest & other assets | 19,404 | 21,262 | |||||||||||||
Ronald C. Dion-Assistant Treasurer | Morrisville | Total Assets | $ | 574,670 | $ | 582,915 | |||||||||||
DIRECTORS - UNION BANK | Jessica Eastman-Assistant Vice President | So. Burlington | LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||||||||
Kenneth D. Gibbons-Chairman | Morrisville | Noninterest bearing deposits | $ | 88,723 | $ | 79,244 | |||||||||||
Kenneth D. Gibbons-Chairman | David S. Silverman | Don D. Goodhue-Vice President | Morrisville | Interest bearing deposits | 265,225 | 277,504 | |||||||||||
Cynthia D. Borck | John H. Steel | Melissa A. Greene-Vice President | Hardwick | Time deposits | 153,401 | 148,068 | |||||||||||
Steven J. Bourgeois | Schuyler W. Sweet | Paul E. Grogan-Facilities Officer | Morrisville | Borrowed funds | 14,190 | 25,756 | |||||||||||
John M. Goodrich | Neil J. Van Dyke | Karyn J. Hale-Vice President | Morrisville | Accrued interest & other liabilities | 6,449 | 10,223 | |||||||||||
Timothy W. Sargent | Claire A. Hindes-Vice President | Morrisville | Common stock | 9,855 | 9,848 | ||||||||||||
Robert D. Hofmann-Senior Vice President | Morrisville | Additional paid-in capital | 360 | 293 | |||||||||||||
Patricia N. Hogan-Senior Vice President | Morrisville | Retained earnings | 43,034 | 39,688 | |||||||||||||
OFFICERS - UNION BANKSHARES, INC. | Tracey D. Holbrook-Regional Vice President | St. Johnsbury | Accumulated other comprehensive loss | (2,687 | ) | (3,873 | ) | ||||||||||
Lura L. Jacques-Asst. VP, Trust Officer | St. Albans | Treasury stock at cost | (3,880 | ) | (3,836 | ) | |||||||||||
Kenneth D. Gibbons-Chairman | Lynne P. Jewett-Vice President | Morrisville | Total Liabilities & Shareholders' Equity | $ | 574,670 | $ | 582,915 | ||||||||||
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 $1,621,000 and $2,006,000 at September 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 | Sept. 30, 2013 | Sept. 30, 2012 | Sept. 30, 2013 | Sept. 30, 2012 | ||||||||||||
Bonnie J. Losty-Vice President | Morrisville | (3 months ended) | (9 months ended) | ||||||||||||||
REGIONAL ADVISORY BOARDS | John L. Malm-Vice President | Littleton | Interest income | $ | 6,232 | $ | 6,355 | $ | 18,248 | $ | 18,736 | ||||||
Robyn A. Masi-Vice President | Stowe | Interest expense | 609 | 815 | 1,870 | 2,578 | |||||||||||
NORTHERN NEW HAMPSHIRE | Marsha A. Mongeon-Sr. Vice President, CFO | Morrisville | Net interest income | 5,623 | 5,540 | 16,378 | 16,158 | ||||||||||
Joel S. Bourassa | Schuyler W. Sweet | Samantha A. Norrie-Assistant Treasurer | Littleton | Provision for loan losses | 95 | 150 | 230 | 510 | |||||||||
Stanley T. Fillion | Norrine A. Williams | Karen Carlson Noyes-Vice President | Morrisville | Net interest income after | 5,528 | 5,390 | 16,148 | 15,648 | |||||||||
Barbara A. Olden-Vice President | St. Johnsbury | provision for loan losses | |||||||||||||||
Deborah J. Partlow-Asst. VP, Sr. Trust Officer | Morrisville | Trust income | 155 | 154 | 472 | 460 | |||||||||||
ST. ALBANS | Bradley S. Prior-Assistant Vice President | Morrisville | Noninterest income | 2,031 | 2,734 | 5,990 | 6,499 | ||||||||||
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 | 2,320 | 2,235 | 6,712 | 6,704 | |||||||||
Lesley S. Russ-Assistant Treasurer | Morrisville | Pension & employee benefits | 596 | 968 | 1,917 | 3,083 | |||||||||||
David S. Silverman-President & CEO | Morrisville | Occupancy expense, net | 249 | 252 | 871 | 881 | |||||||||||
ST. JOHNSBURY | Judy R. Smith-Vice President | St. Albans | Equipment expense | 385 | 396 | 1,199 | 1,082 | ||||||||||
Michael R. Barrett | Justin P. Lavely | John H. Steel-Secretary | Morrisville | Other expenses | 1,546 | 1,894 | 4,798 | 5,099 | |||||||||
Dwight A. Davis | Alexandra S. Maclean | Curtis C. Swan-Assistant Vice President | St. Albans | Total | 5,096 | 5,745 | 15,497 | 16,849 | |||||||||
Rosemary H. Gingue | Mary K. Parent | JoAnn A. Tallman-Assistant Secretary | Morrisville | Income before taxes | 2,618 | 2,533 | 7,113 | 5,758 | |||||||||
Melyssa S. Whitcomb-Assistant Treasurer | Lyndonville | Income tax expense | 545 | 552 | 1,506 | 1,112 | |||||||||||
Lori J. Wiggett-Assistant Treasurer | No. Woodstock | Net income | $ | 2,073 | $ | 1,981 | $ | 5,607 | $ | 4,646 | |||||||
ALL: David S. Silverman | Martha J. Wilkins-Assistant Treasurer | St. Johnsbury | Earnings per share | $ | 0.47 | $ | 0.44 | $ | 1.26 | $ | 1.04 | ||||||
Lorraine G. Willett-Assistant Vice President | Morrisville | Book value per share | $ | 10.47 | $ | 9.45 | |||||||||||
Anita D. Woodcock-Vice President | Morrisville | ||||||||||||||||