Attached files
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| EX-99.1 - EXHIBIT 99.1 COURTESY PDF COPY - UNION BANKSHARES INC | unb1stquartershreport2015.pdf |
| 8-K - BODY OF FORM 8-K - UNION BANKSHARES INC | form8-k1stqtr2015shrpt.htm |
Exhibit 99.1
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May 7, 2015 | |||||||||
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We are pleased to report the financial results for the quarter ended on March 31, 2015 for your company. Net Income for the quarter ended was $1.88 million, or $.42 per share, compared to $1.76 million, or $.40 per share, for 2014. Net income increased $120 thousand, or 6.8%, despite an increase in the provision for loan losses of $25 thousand, a net increase in noninterest expenses of $201 thousand, and an increase in income tax expense of $43 thousand. These items were positively offset by an increase in net interest income of $17 thousand and an increase in noninterest income of $372 thousand. Noninterest income increased in 2015 compared to 2014 primarily due to an increase in gain on sale of real estate loans of $296 thousand and an increase in service charges on deposit accounts of $66 thousand. Noninterest expenses increased $201 thousand for the quarter ended March 31, 2015 compared to the same period for 2014. The net increase was the result of an increase in salaries and wages of $77 thousand due to annual salary increases, an increase in pension and employee benefits of $67 thousand due to an increase in health and dental insurance costs, an increase in occupancy expenses of $42 thousand, an increase in equipment expenses of $19 thousand. Of note, the first quarter of 2014 had three extraordinary income items totaling $131 thousand, net of tax, which did not recur in 2015. Total assets increased $36.4 million, or 6.2% to reach $622.5 million as of March 31, 2015 from $586.1 million as of March 31, 2014. Total loans grew to $501.7 million as of March 31, 2015 from $476.5 million as of March 31, 2014. The increase is attributable to growth in mortgage loans, commercial and commercial real estate loans, and municipal loans. Interest rate risk management strategies continued to include sales of qualifying residential mortgages to the secondary market. Loans totaling $31.3 million were sold during the first quarter of 2015 compared to sales of $20.3 million in the first quarter of 2014. Loans serviced for others grew to $375.1 million, or 15.0%, as of March 31, 2015 from $326.2 million as of March 31, 2014. Total deposits reached $546.8 million compared to the prior year of | $517.7 million or growth of $29.2 million, or 5.6%. The Company had total capital of $52.4 million with a book value per share of $11.75 as of March 31, 2015 compared to $50.8 million and $11.39 per share at March 31, 2014. We are in the midst of wrapping up an excellent ski season as well as a nail biter of a maple sugaring season. We had a very cold winter with copious amounts of snow, providing the basis for a very good winter tourism season. The sugaring season was similar to last year, very late in coming, nerve wracking, but ultimately a modestly successful season production wise. The economy in our region seems to continue to improve, though at a tepid pace. Real estate seems to be selling fairly well, with even our laggard regions participating. Home builders are fairly busy, though the cold weather has delayed the construction season somewhat, which we can see in lower construction loan balances compared to other years. Application volume has been very good, so we believe this is more of a timing issue than reflective of an overall slower construction season. Competition for all types of loan products continues to be extreme. Our industry has a sort of collective amnesia, and once again we are seeing transactions occur that would not in ordinary times be bankable. We continue to stick to our service oriented, relationship based lending practices that have served us well over the years. Hopefully this will help us avoid the pain our peers may feel when we next hit a soft patch in the economy. We hope you will join us at our annual meeting at 3:00pm on May 20th at the Stone Grill Restaurant in Morrisville. Enclosed please find your dividend check or advice of deposit representing a dividend of $.27 per share. | ||||||||
 | 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 PO Box 667 Morrisville, VT 05661-0667 Investor Relations: UBLOCAL.COM | |||||||||
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Kenneth D. Gibbons Chairman | 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 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. | |||||||||
Consolidated Balance Sheets (unaudited, in thousands) | Consolidated Statements of Income (unaudited, in thousands) | Union Bankshares, Inc. | ||||||||||||||||||||||
DIRECTORS | OFFICERS | |||||||||||||||||||||||
Kenneth D. Gibbons-Chairman | Kenneth D. Gibbons - Chairman | |||||||||||||||||||||||
Steven J. Bourgeois | David S. Silverman - President & CEO | |||||||||||||||||||||||
ASSETS | March 31, 2015 | March 31, 2014 | March 31, 2015 | March 31, 2014 | John M. Goodrich | Karyn J. Hale - Chief Financial Officer | ||||||||||||||||||
Timothy W. Sargent | John H. Steel - Secretary | |||||||||||||||||||||||
(3 months ended) | ||||||||||||||||||||||||
David S. Silverman | Kristy Adams Alfieri - Assistant Secretary | |||||||||||||||||||||||
Cash and Due from Banks | $ | 3,973 | $ | 3,936 | Interest Income | $ | 6,117 | $ | 6,112 | |||||||||||||||
John H. Steel | Jeffrey G. Coslett - Vice President | |||||||||||||||||||||||
Federal Funds Sold & Overnight Deposits | 9,178 | 11,114 | Interest Expense | 565 | 577 | Schuyler W. Sweet | ||||||||||||||||||
Net Interest Income | 5,552 | 5,535 | Neil J. Van Dyke | |||||||||||||||||||||
Interest Bearing Deposits in Banks | 13,102 | 16,255 | Provision for Loan Losses | 100 | 75 | REGIONAL ADVISORY BOARD MEMBERS | ||||||||||||||||||
Union Bank | ||||||||||||||||||||||||
Investment Securities | 63,014 | 52,276 | Net Interest Income After Provision for Loan Losses | 5,452 | 5,460 | |||||||||||||||||||
Loans Held for Sale | 8,257 | 3,412 | DIRECTORS | |||||||||||||||||||||
Trust Income | 177 | 175 | Kenneth D. Gibbons-Chairman | Michael R. Barrett - St. Johnsbury | ||||||||||||||||||||
Loans, net | 493,401 | 473,044 | Noninterest Income | 2,158 | 1,788 | Steven J. Bourgeois | Joel S. Bourassa - Northern NH | |||||||||||||||||
John M. Goodrich | Steven J. Bourgeois - St. Albans | |||||||||||||||||||||||
Reserve for Loan Losses | (4,773 | ) | (4,694 | ) | Noninterest Expenses: | Timothy W. Sargent | Stanley T. Fillion - Northern NH | |||||||||||||||||
Salaries & Wages | 2,324 | 2,247 | David S. Silverman | Rosemary H. Gingue - St. Johnsbury | ||||||||||||||||||||
Premises and Equipment, net | 12,491 | 10,749 | John H. Steel | John M. Goodrich - St. Johnsbury | ||||||||||||||||||||
Pension & Employee Benefits | 734 | 667 | Schuyler W. Sweet | Christopher M. Knapp - Northern NH | ||||||||||||||||||||
Other Real Estate Owned, net | 297 | 507 | Neil J. Van Dyke | Coleen K. Kohaut - St. Albans | ||||||||||||||||||||
Occupancy Expense, net | 381 | 339 | Justin P. Lavely - St. Johnsbury | |||||||||||||||||||||
Accrued Interest & Other Assets | 23,547 | 19,526 | Daniel J. Luneau - St. Albans | |||||||||||||||||||||
Equipment Expense | 406 | 387 | Mary K. Parent - St. Johnsbury | |||||||||||||||||||||
Total Assets | $ | 622,487 | $ | 586,125 | Samuel H. Ruggiano - St. Albans | |||||||||||||||||||
Other Expenses | 1,545 | 1,549 | David S. Silverman - All | |||||||||||||||||||||
Schuyler W. Sweet - Northern NH | ||||||||||||||||||||||||
Total | 5,390 | 5,189 | ||||||||||||||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY | March 31, 2015 | March 31, 2014 | ||||||||||||||||||||||
Income Before Taxes | 2,397 | 2,234 | ||||||||||||||||||||||
Income Tax Expense | 513 | 470 | Union Bank Offices (ATMs at all Branch Locations) | |||||||||||||||||||||
Noninterest Bearing Deposits | $ | 97,198 | $ | 89,538 | ||||||||||||||||||||
Net income | $ | 1,884 | $ | 1,764 | ||||||||||||||||||||
Interest Bearing Deposits | 303,232 | 281,199 | VERMONT | |||||||||||||||||||||
Earnings per share | $ | 0.42 | $ | 0.40 | Danville | 421 Route 2 East | 802-684-2211 | |||||||||||||||||
Time Deposits | 146,378 | 146,920 | Fairfax | Jct. Routes 104 & 128 | 802-849-2600 | |||||||||||||||||||
Book Value Per Share | $ | 11.75 | $ | 11.39 | Hardwick | 103 VT Route 15 West | 802-472-8100 | |||||||||||||||||
Borrowed Funds | 18,587 | 13,750 | Jeffersonville | 44 Main Street | 802-644-6600 | |||||||||||||||||||
Johnson | 198 Lower Main Street | 802-635-6600 | ||||||||||||||||||||||
Accrued Interest & Other Liabilities | 4,718 | 3,934 | Lyndonville | 183 Depot Street | 802-626-3100 | |||||||||||||||||||
Morrisville | 20 Lower Main Street | 802-888-6600 | ||||||||||||||||||||||
Common Stock | 9,859 | 9,855 | 65 Northgate Plaza | 802-888-6860 | ||||||||||||||||||||
Newport | Loan Center | |||||||||||||||||||||||
Additional Paid in Capital | 430 | 368 | 325 East Main Street | 802-334-0750 | ||||||||||||||||||||
St. Albans | 15 Mapleville Depot | 802-524-9000 | ||||||||||||||||||||||
Retained Earnings | 47,142 | 44,009 | St. Johnsbury | 364 Railroad Street | 802-748-3131 | |||||||||||||||||||
Accumulated Other Comprehensive (Loss) Income | (1,106 | ) | 434 | 325 Portland Street | 802-748-3121 | |||||||||||||||||||
S. Burlington | Loan Center | |||||||||||||||||||||||
 | 30 Kimball Avenue | 802-865-1000 | ||||||||||||||||||||||
Treasury Stock at Cost | (3,951 | ) | (3,882 | ) | Stowe | 47 Park Street | 802-253-6600 | |||||||||||||||||
NEW HAMPSHIRE | ||||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 622,487 | $ | 586,125 | Groveton | 3 State Street | 603-636-1611 | |||||||||||||||||
Standby letters of credit were $1,790,000 and $2,125,000 at March 31, 2015 and 2014, respectively. | Littleton | 263 Dells Road | 603-444-7136 | |||||||||||||||||||||
76 Main Street | 603-444-5321 | |||||||||||||||||||||||
 | Lincoln | 135 Main Street | 603-745-4000 | |||||||||||||||||||||
N. Woodstock | 155 Main Street | 603-745-2488 | ||||||||||||||||||||||