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| EX-99.1 - EXHIBIT 99.1 COURTESY PDF COPY - UNION BANKSHARES INC | unb1stquartershreport2016.pdf |
| 8-K - BODY OF FORM 8-K - UNION BANKSHARES INC | form8-k1stqtr2016shrpt.htm |
Exhibit 99.1
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May 10, 2016 | |||||||||
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We are pleased to report our financial results for the first quarter of 2016. Net income for the quarter was $1.76 million, or $.39 cents per share, compared to $1.88 million, or $.42 cents per share the same quarter in 2015. Assets at the end of the quarter reached $640.8 million, compared with $622.5 million, as of March 31, 2015. The Company had total capital of $54.7 million, with a book value per share of $12.26 as of March 31, 2016, compared to $52.4 million and $11.75 per share at March 31, 2015. During the first quarter of 2016, we sold $22.9 million in loans, compared to $31.3 million for the first quarter of 2015. The resulting difference in gain on sales of loans explained most of the reduction in net income year over year. Though earnings were down a bit year over year, we are encouraged by our financial results overall. The most significant predictor of our success is net interest income. Our net interest income was $5.94 million compared to $5.55 million for the first quarter of 2015, a 6.9% increase.On the basis of a strong pipeline of residential and commercial loans; strong early loan growth, and positive initial indications of improving net interest income in the current quarter, we are optimistic for positive earnings results throughout the year. While writing our shareholder letter in conjunction with the completion of 2015, we were facing concerns about the slow initial start to our local tourism season, a steeply declining stock market, potential problems with European banks, the potential for negative interest rates, and general uncertainty about the economy. The winter weather never really improved, and as a result, our tourism season was generally unsuccessful. The pain of the season was not uniformly felt, with some businesses being wounded, while others were able to tighten their belts to see modestly successful seasons. It is our assessment that the bank will not face material losses | caused by the poor winter tourism season. The stock market has seemed to regain some confidence and the talk of negative interest rates have seemed to subside. We continue to be optimistic about the local economy, though across our footprint the level of activity varies widely. It is with sadness we share the following news. Peter M. Haslam, Sr. a retired Director of the bank and company, passed away on April 24th surrounded by his family, just shy of 88 years of age. Peter proudly served as a Director for 26 years between 1975 and 2001. We were pleased for an opportunity to share a final Happy Hour with “Pete” a few days before his passing to reminisce about days gone by at the bank. In his later years, Peter became a cheerful though vocal proponent of increasing the company’s dividend. We are pleased that as things worked out, Peter was able to see another dividend increase before he passed. To that end, please find enclosed a check or advice of deposit representing a quarterly dividend of $.28 per share, a $.01 increase compared to prior recent quarters. As a reminder, if you would like more information regarding our Dividend Reinvestment Plan or direct deposit of your dividend to your Union Bank account or to a financial institution of your choice, please contact Assistant Secretary Kristy Adams Alfieri for assistance at 802.888.0982. We hope you will join us at our annual meeting at 3:00 pm on May 18th, at the Charlmont Restaurant & Pub meeting room in Morrisville. | ||||||||
 | 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 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 several ATMs throughout its geographical footprint. Union Bank has earned an outstanding reputation for residential lending programs and has recently been named, for the third consecutive year, the USDA RD Vermont lender of the year. Union Bank is also an SBA Preferred lender and has an outstanding Community Reinvestment Act rating. | |||||||||
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, 2016 | MARCH 31, 2015 | MARCH 31, 2016 | MARCH 31, 2015 | 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 | $ | 4,130 | $ | 3,973 | Interest Income | $ | 6,448 | $ | 6,117 | |||||||||||||||
John H. Steel | Jeffrey G. Coslett - Vice President | |||||||||||||||||||||||
Federal Funds Sold & Overnight Deposits | 9,887 | 9,178 | Interest Expense | 513 | 565 | Schuyler W. Sweet | ||||||||||||||||||
Net Interest Income | 5,935 | 5,552 | Neil J. Van Dyke | |||||||||||||||||||||
Interest Bearing Deposits in Banks | 12,354 | 13,102 | Provision for Loan Losses | 75 | 100 | REGIONAL ADVISORY BOARD MEMBERS | ||||||||||||||||||
Union Bank | ||||||||||||||||||||||||
Investment Securities | 62,733 | 63,014 | Net Interest Income After Provision for Loan Losses | 5,860 | 5,452 | |||||||||||||||||||
Loans Held for Sale | 6,725 | 8,257 | DIRECTORS | |||||||||||||||||||||
Trust Income | 172 | 177 | Kenneth D. Gibbons-Chairman | Michael R. Barrett - St. Johnsbury | ||||||||||||||||||||
Loans, net | 513,123 | 493,401 | Noninterest Income | 2,014 | 2,158 | Steven J. Bourgeois | Joel S. Bourassa - Northern NH | |||||||||||||||||
Dawn D. Bugbee | Steven J. Bourgeois - St. Albans | |||||||||||||||||||||||
Reserve for Loan Losses | (5,125 | ) | (4,773 | ) | Noninterest Expenses: | John M. Goodrich | Stanley T. Fillion - Northern NH | |||||||||||||||||
Salaries & Wages | 2,458 | 2,323 | Timothy W. Sargent | Rosemary H. Gingue - St. Johnsbury | ||||||||||||||||||||
Premises and Equipment, net | 13,037 | 12,491 | David S. Silverman | John M. Goodrich - St. Johnsbury | ||||||||||||||||||||
Pension & Employee Benefits | 943 | 734 | John H. Steel | Richard L. Isabelle - St. Johnsbury | ||||||||||||||||||||
Other Real Estate Owned, net | — | 297 | Schuyler W. Sweet | Christopher M. Knapp - Northern NH | ||||||||||||||||||||
Occupancy Expense, net | 317 | 381 | Neil J. Van Dyke | Coleen K. Kohaut - St. Albans | ||||||||||||||||||||
Accrued Interest & Other Assets | 23,960 | 23,547 | Justin P. Lavely - St. Johnsbury | |||||||||||||||||||||
Equipment Expense | 509 | 407 | Daniel J. Luneau - St. Albans | |||||||||||||||||||||
Total Assets | $ | 640,824 | $ | 622,487 | Mary K. Parent - St. Johnsbury | |||||||||||||||||||
Other Expenses | 1,594 | 1,545 | Samuel H. Ruggiano - St. Albans | |||||||||||||||||||||
David S. Silverman - All | ||||||||||||||||||||||||
Total | 5,821 | 5,390 | Schuyler W. Sweet - Northern NH | |||||||||||||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY | MARCH 31, 2016 | MARCH 31, 2015 | ||||||||||||||||||||||
Income Before Taxes | 2,225 | 2,397 | ||||||||||||||||||||||
Income Tax Expense | 466 | 513 | Union Bank Offices (ATMs at all Branch Locations) | |||||||||||||||||||||
Noninterest Bearing Deposits | $ | 101,943 | $ | 97,198 | ||||||||||||||||||||
Net income | $ | 1,759 | $ | 1,884 | ||||||||||||||||||||
Interest Bearing Deposits | 311,656 | 303,232 | VERMONT | |||||||||||||||||||||
Earnings per share | $ | 0.39 | $ | 0.42 | Danville | 421 Route 2 East | 802.684.2211 | |||||||||||||||||
Time Deposits | 145,405 | 146,378 | Fairfax | Jct. Routes 104 & 128 | 802.849.2600 | |||||||||||||||||||
Book Value Per Share | $ | 12.26 | $ | 11.75 | Hardwick | 103 VT Route 15 West | 802.472.8100 | |||||||||||||||||
Borrowed Funds | 21,883 | 18,587 | Jeffersonville | 44 Main Street | 802.644.6600 | |||||||||||||||||||
Johnson | 198 Lower Main Street | 802.635.6600 | ||||||||||||||||||||||
Accrued Interest & Other Liabilities | 5,278 | 4,718 | Lyndonville | 183 Depot Street | 802.626.3100 | |||||||||||||||||||
Morrisville | 20 Lower Main Street | 802.888.6600 | ||||||||||||||||||||||
Common Stock | 9,866 | 9,859 | 65 Northgate Plaza | 802.888.6860 | ||||||||||||||||||||
Newport | Loan Center | |||||||||||||||||||||||
Additional Paid in Capital | 526 | 430 | 325 East Main Street | 802.334.0750 | ||||||||||||||||||||
St. Albans | 15 Mapleville Depot | 802.524.9000 | ||||||||||||||||||||||
Retained Earnings | 50,080 | 47,142 | St. Johnsbury | 364 Railroad Street | 802.748.3131 | |||||||||||||||||||
Accumulated Other Comprehensive (Loss) Income | (1,790 | ) | (1,106 | ) | 325 Portland Street | 802.748.3121 | ||||||||||||||||||
 | S. Burlington | Loan Center | ||||||||||||||||||||||
30 Kimball Avenue | 802.865.1000 | |||||||||||||||||||||||
Treasury Stock at Cost | (4,023 | ) | (3,951 | ) | Stowe | 47 Park Street | 802.253.6600 | |||||||||||||||||
NEW HAMPSHIRE | ||||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 640,824 | $ | 622,487 | Groveton | 3 State Street | 603.636.1611 | |||||||||||||||||
Standby letters of credit were $1,624,000 and $1,790,000 at March 31, 2016 and 2015, 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 | ||||||||||||||||||||||