Attached files
| file | filename |
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| EX-99.1 - EXHIBIT 99.1 COURTESY PDF COPY - UNION BANKSHARES INC | shareholderreport092014.pdf |
| 8-K - BODY OF FORM 8-K - UNION BANKSHARES INC | form8-k3rdqtr2014shrpt.htm |
Exhibit 99.1
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 | November 6, 2014 | ||||||
We are pleased to share your company’s financial results for the period ending September 30, 2014. Net Income for the third quarter 2014 was $2.13 million, or $0.47 per share, compared to $2.07 million, or $0.47 per share, for 2013, an increase of 2.6% quarter over quarter. Year to date earnings for 2014 were $5.8 million, or $1.30 per share, compared to $5.6 million, or $1.26 per share, for 2013, an increase of 3.6% year over year. Total assets grew to $602.7 million as of September 30, 2014 from $574.7 million as of September 30, 2013, an increase of 4.9%. Total asset growth included an increase in loans of 2.4%, amounting to $487.4 million as of September 30, 2014 from $476.1 million at September 30, 2013. The increase is attributable to continued residential loan demand and an increase in commercial and municipal lending during the first nine months of 2014. Loans serviced for others grew $48.1 million, or 15.5%, to $358.2 million as of September 30, 2014 from $310.0 million as of September 30, 2013. Total deposits reached $531.0 million compared to the prior year of $507.3 million, or growth of 4.7%. The Company had total capital of $52.7 million with a book value per share of $11.81 as of September 30, 2014 compared to $46.7 million and $10.47 per share at September 30, 2013. Closing the quarter over $600 million is a new milestone for your company. Prior to acquiring three branches in New Hampshire in 2011 Union Bankshares, Inc. was approximately $450 million in assets. Having grown by approximately 1/3 since this time, it seems an appropriate juncture to restate our growth philosophy. Our goal is to grow the company profitably, with equal weight on “grow” and “profitably.” We wish to grow the business to increase our earning assets as well as the value of the company. Perhaps as importantly, we need to grow to spread the runaway regulatory and compliance costs imposed on us in the wake of the financial crisis that surfaced in 2008 over a larger base. We continue to expand our geographical footprint with the opening of our Lincoln, New Hampshire branch in the spring and most recently the opening of a loan production office in Newport, Vermont. Along with the traditional branch network, we will also be introducing new electronic delivery channels to our customers during the fourth quarter. At this writing “foliage season” is winding down. Most folks around here agree that the foliage display was spectacular and the best in recent memory. The summer and fall tourism season was very strong, with the weather cooperating for most of the regions special events. We are pleased to see the improvement in the travel and tourism sector, as this industry was battered post 2008. | It has been announced that IBM is “selling” its Essex Junction location to competitor Global Foundries. While we have little direct exposure to IBM employees, it remains to be seen how this announcement may ripple through the Northern Vermont economy. We will be actively monitoring this in the coming months, with hopes that this is a positive development for the region. In the next few months you may notice that we are embarking on a re-branding process, introducing a new logo throughout our footprint and on our website, written materials, and in advertising. The new branding is meant to stay in keeping with our current identity, but bring a more contemporary look and feel to our external communications. Finally, we are pleased to announce the quarterly dividend of $.26 per share. Enclosed, please find a check or advice of deposit. If you have not done so, please consider signing up for direct deposit of your dividend. | ||||||
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 802-888-6600 or contact our Transfer Agent at the address and phone number listed below: |  | ||||||
Sincerely, | |||||||
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 | |||||||
Kenneth D. Gibbons Chairman | David S. Silverman President & Chief Executive Officer | ||||||
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NASDAQ STOCK MARKET | |||||||
Ticker Symbol: UNB Corporate Name: Union Bankshares, Inc. Corporate Address: 20 Lower Main Street PO Box 667 Morrisville, VT 05661-0667 Investor Relations: www.UnionBankVT.com | |||||||
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 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 17 banking offices and two loan centers and multiple ATMS throughout its geographical footprint. Union Bank is committed to the communities it serves, and encourages employee participation in community events and charitable services. 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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Union Bankshares, Inc. | |||||||||||||||||||||||||||||||
DIRECTORS | OFFICERS | Consolidated Statements of Income (unaudited, in thousands) | |||||||||||||||||||||||||||||
Kenneth D. Gibbons-Chairman | Kenneth D. Gibbons - Chairman | Consolidated Balance Sheets (unaudited, in thousands) | |||||||||||||||||||||||||||||
Cynthia D. Borck | David S. Silverman - President & CEO |  | |||||||||||||||||||||||||||||
Steven J. Bourgeois | Karyn J. Hale - Chief Financial Officer | ASSETS | SEPT. 30, 2014 | SEPT. 30, 2013 | SEPT. 30, 2014 | SEPT. 30, 2013 | SEPT. 30, 2014 | SEPT. 30, 2013 | |||||||||||||||||||||||
John M. Goodrich | John H. Steel - Secretary | (3 months ended) | (9 months ended) | ||||||||||||||||||||||||||||
Timothy W. Sargent | Kristy Adams Alfieri - Assistant Secretary | Cash and Due from Banks | $ | 4,254 | $ | 4,032 | Interest Income | $ | 6,258 | $ | 6,232 | $ | 18,554 | $ | 18,248 | ||||||||||||||||
David S. Silverman | Jeffrey G. Coslett - Vice President | ||||||||||||||||||||||||||||||
John H. Steel | Federal Funds Sold & Overnight Deposits | 19,531 | 12,377 | Interest Expense | 528 | 609 | 1,634 | 1,870 | |||||||||||||||||||||||
Schuyler W. Sweet | Net Interest Income | 5,730 | 5,623 | 16,920 | 16,378 | ||||||||||||||||||||||||||
Neil J. Van Dyke | Interest Bearing Deposits in Banks | 12,112 | 19,562 | Provision for Loan Losses | 150 | 95 | 300 | 230 | |||||||||||||||||||||||
Union Bank | |||||||||||||||||||||||||||||||
REGIONAL | Investment Securities | 53,420 | 36,740 | Net Interest Income After Provision for Loan Losses | 5,580 | 5,528 | 16,620 | 16,148 | |||||||||||||||||||||||
DIRECTORS | ADVISORY BOARD | Loans Held for Sale | 6,065 | 4,221 | |||||||||||||||||||||||||||
Kenneth D. Gibbons-Chairman | MEMBERS | Trust Income | 183 | 155 | 549 | 472 | |||||||||||||||||||||||||
Cynthia D. Borck | Michael R. Barrett - St. Johnsbury | Loans, net | 481,301 | 471,855 | Noninterest Income | 2,532 | 2,039 | 6,239 | 5,998 | ||||||||||||||||||||||
Steven J. Bourgeois | Joel S. Bourassa - Northern NH | ||||||||||||||||||||||||||||||
John M. Goodrich | Steven J. Bourgeois - St. Albans | Reserve for Loan Losses | (4,758 | ) | (4,773 | ) | Noninterest Expenses: | ||||||||||||||||||||||||
Timothy W. Sargent | Stanley T. Fillion - Northern NH | Salaries & Wages | 2,253 | 2,320 | 6,694 | 6,712 | |||||||||||||||||||||||||
David S. Silverman | Rosemary H. Gingue - St. Johnsbury | Premises and Equipment, net | 11,154 | 10,769 | |||||||||||||||||||||||||||
John H. Steel | Christopher M. Knapp - Northern NH | Pension & Employee Benefits | 692 | 596 | 2,062 | 1,917 | |||||||||||||||||||||||||
Schuyler W. Sweet | Coleen K. Kohaut - St. Albans | Other Real Estate Owned, net | 320 | 483 | |||||||||||||||||||||||||||
Neil J. Van Dyke | Justin P. Lavely - St. Johnsbury | Occupancy Expense, net | 272 | 249 | 906 | 871 | |||||||||||||||||||||||||
Daniel J. Luneau - St. Albans | Accrued Interest & Other Assets | 19,267 | 19,404 | ||||||||||||||||||||||||||||
Alexandra S. Maclean - St. Johnsbury | Equipment Expense | 418 | 385 | 1,215 | 1,199 | ||||||||||||||||||||||||||
Mary K. Parent - St. Johnsbury | Total Assets | $ | 602,666 | $ | 574,670 | ||||||||||||||||||||||||||
Samuel H. Ruggiano - St. Albans | Other Expenses | 1,923 | 1,554 | 5,140 | 4,806 | ||||||||||||||||||||||||||
David S. Silverman - All |  | ||||||||||||||||||||||||||||||
Schuyler W. Sweet - Northern NH | |||||||||||||||||||||||||||||||
Norrine A. Williams - Northern NH | LIABILITIES & SHAREHOLDERS' EQUITY | SEPT. 30, 2014 | SEPT. 30, 2013 | Total | 5,558 | 5,104 | 16,017 | 15,505 | |||||||||||||||||||||||
Union Bank Offices (ATMs at all Branch Locations) | Income Before Taxes | 2,737 | 2,618 | 7,391 | 7,113 | ||||||||||||||||||||||||||
Noninterest Bearing Deposits | $ | 94,604 | $ | 88,723 | Income Tax Expense | 611 | 545 | 1,582 | 1,506 | ||||||||||||||||||||||
VERMONT | Interest Bearing Deposits | 297,444 | 265,225 | Net income | $ | 2,126 | $ | 2,073 | $ | 5,809 | $ | 5,607 | |||||||||||||||||||
Danville | 421 Route 2 East | 802-684-2211 | |||||||||||||||||||||||||||||
Fairfax | Jct. Routes 104 & 128 | 802-849-2600 | Time Deposits | 138,990 | 153,401 | Earnings per share | $ | 0.47 | $ | 0.47 | $ | 1.30 | $ | 1.26 | |||||||||||||||||
Hardwick | 103 VT Route 15 West | 802-472-8100 | Book Value Per Share | $ | 11.81 | $ | 10.47 | ||||||||||||||||||||||||
Jeffersonville | 44 Main Street | 802-644-6600 | Borrowed Funds | 14,940 | 14,190 | ||||||||||||||||||||||||||
Johnson | 198 Lower Main Street | 802-635-6600 | |||||||||||||||||||||||||||||
Lyndonville | 183 Depot Street | 802-626-3100 | Accrued Interest & Other Liabilities | 4,016 | 6,449 | ||||||||||||||||||||||||||
Morrisville | 20 Lower Main Street | 802-888-6600 | |||||||||||||||||||||||||||||
65 Northgate Plaza | 802-888-6860 | Common Stock | 9,859 | 9,855 | |||||||||||||||||||||||||||
Newport | 325 East Main Street | 802-334-0750 |  | ||||||||||||||||||||||||||||
St. Albans | 15 Mapleville Depot | 802-524-9000 | Additional Paid in Capital | 414 | 360 | ||||||||||||||||||||||||||
St. Johnsbury | 364 Railroad Street | 802-748-3131 | |||||||||||||||||||||||||||||
325 Portland Street | 802-748-3121 | Retained Earnings | 45,735 | 43,035 | |||||||||||||||||||||||||||
S. Burlington | Loan Center | Accumulated Other Comprehensive Income (Loss) | 589 | (2,688 | ) | ||||||||||||||||||||||||||
30 Kimball Avenue | 802-865-1000 | ||||||||||||||||||||||||||||||
Stowe | 47 Park Street | 802-253-6600 | |||||||||||||||||||||||||||||
Treasury Stock at Cost | (3,925 | ) | (3,880 | ) | |||||||||||||||||||||||||||
NEW HAMPSHIRE | |||||||||||||||||||||||||||||||
Groveton | 3 State Street | 603-636-1611 | Total Liabilities & Shareholders' Equity | $ | 602,666 | $ | 574,670 | ||||||||||||||||||||||||
Littleton | 263 Dells Road | 603-444-7136 | Standby letters of credit were $2,033,000 and $1,621,000 at September 30, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||
76 Main Street | 603-444-5321 | ||||||||||||||||||||||||||||||
Lincoln | 135 Main Street | 603-745-4000 | |||||||||||||||||||||||||||||
N. Woodstock | 155 Main Street | 603-745-2488 | |||||||||||||||||||||||||||||