Attached files
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| EX-99.1 - EXHIBIT 99.1 COURTESY PDF COPY - UNION BANKSHARES INC | unb3rdquartershreport2017.pdf |
| 8-K - BODY OF FORM 8-K - UNION BANKSHARES INC | form8-k3rdqtr2017shrpt.htm |
Exhibit 99.1
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November 8, 2017 | |||||||||
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We are pleased to report the financial results for Union Bankshares, Inc. for the three and nine months ended September 30, 2017. Consolidated net income for the three months ended September 30, 2017 was $2.4 million, or $0.53 per share, compared to $2.3 million, or $0.51 per share, for the same period in 2016. Consolidated net income year to date improved 5.9% to $6.5 million or $1.46 per share, compared to $6.2 million, or $1.38 per share, for the same period in 2016. Thus far this year our loan portfolio has grown $52.1 million, or 9.8%, compared to the same period last year, with much of the growth coming from municipal loans, residential construction loans, and commercial real estate loans. We have a solid pipeline of quality loans and expect good growth in the fourth quarter as well. In addition, deposits have grown $34.4 million, or 6.0%, compared to the same period last year. Both our loan and deposit growth are the result of purposeful initiatives, primarily direct calling on prospective customers, intended to generate this growth. Though some say that this year’s fall colors were muted, it has only taken slight ventures off of the beaten paths to find spectacular foliage. The unusually mild and rainless weeks this fall have created both an excellent tourism season as well as concerns about local forest fires in our region. In general, the economy in the regions we serve continue to improve with business concerns shifting from lack of customers to lack of available employees. On October 18, 2017 the Board of Directors voted to terminate Union Bank’s Defined Benefit Pension Plan (DBPP). The DBPP was frozen in October of 2012 at which time the existing 401k Defined Contribution Retirement Plan was significantly enhanced. The DBPP was frozen due to the rapidly escalating cost of maintaining the plan as well as balance sheet volatility caused by swings in the market value of the plan assets. Although the plan is in a frozen | status there continues to be on going risks that changes in economic conditions could negatively impact the performance of the plan assets resulting in unexpected adjustments to your Company’s financial statements. The Board of Directors carefully weighed the options with terminating the pension plan, including the impact on plan participants, and determined 2018 is the appropriate time to terminate the plan. Based on the estimated value of assets held in the DBPP, the Company currently estimates that a cash contribution of approximately $1.1 million will be required to fully fund the DBPP’s liabilities at termination. In addition, the Company expects to record a charge to earnings of $3.2 million at termination, which is expected to occur during the fourth quarter of 2018. Actual amounts may differ from these estimates. Although the estimated charge to earnings is significant, your Company will remain well capitalized as defined by current regulatory guidance. Also, we do not expect the termination of the plan in 2018 to negatively affect plan participants nor impact future dividend payments. Additional action taken by the Board of Directors on October 18, 2017 was the declaration of a regular quarterly cash dividend of $0.29 per share payable November 8, 2017 to shareholders of record as of October 28, 2017. Please find enclosed your dividend check or advice of deposit. As a reminder, you may have your dividend payment deposited electronically to your bank of choice, which naturally we hope is Union Bank. Please contact Kristy Adams Alfieri at 802.888.0982 or at kadamsalfieri@unionbankvt.com. Sincerely, | ||||||||
 | 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 three loan centers and several ATMs throughout its geographical footprint. Union Bank has been helping people buy homes and local businesses create jobs in area communities since opening its doors over 125 years ago. Union Bank has earned an exceptional reputation for residential lending programs and has recently been named, for the fourth consecutive year, the USDA RD Vermont Home Lender of the year. Union Bank has also been designated as an SBA Preferred lender for its participation in small business lending. | |||||||||
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 | ||||||||||||||||||||||||||||||
Neil J. Van Dyke-Vice Chairman | David S. Silverman - President & CEO | ||||||||||||||||||||||||||||||
ASSETS | SEPT. 30, 2017 | SEPT. 30, 2016 | SEPT. 30, 2017 | SEPT. 30, 2016 | SEPT. 30, 2017 | SEPT. 30, 2016 | Steven J. Bourgeois | Karyn J. Hale - Chief Financial Officer | |||||||||||||||||||||||
Dawn D. Bugbee | John H. Steel - Secretary | ||||||||||||||||||||||||||||||
(3 months ended) | (9 months ended) | ||||||||||||||||||||||||||||||
John M. Goodrich | Kristy Adams Alfieri - Assistant Secretary | ||||||||||||||||||||||||||||||
Cash and Due from Banks | $ | 3,512 | $ | 3,952 | Interest Income | $ | 7,397 | $ | 6,786 | $ | 21,337 | $ | 19,922 | ||||||||||||||||||
Timothy W. Sargent | Jeffrey G. Coslett - Vice President | ||||||||||||||||||||||||||||||
Federal Funds Sold & Overnight Deposits | 8,885 | 31,622 | Interest Expense | 587 | 471 | 1,640 | 1,503 | David S. Silverman | |||||||||||||||||||||||
Net Interest Income | 6,810 | 6,315 | 19,697 | 18,419 | John H. Steel | REGIONAL ADVISORY BOARD MEMBERS | |||||||||||||||||||||||||
Interest Bearing Deposits in Banks | 8,356 | 9,753 | Schuyler W. Sweet | ||||||||||||||||||||||||||||
Provision for Loan Losses | 150 | — | 150 | 150 | |||||||||||||||||||||||||||
Investment Securities | 64,970 | 60,670 | Net Interest Income After Provision for Loan Losses | 6,660 | 6,315 | 19,547 | 18,269 | Union Bank | Michael R. Barrett - St. Johnsbury | ||||||||||||||||||||||
Loans Held for Sale | 5,675 | 10,214 | Joel S. Bourassa - Northern NH | ||||||||||||||||||||||||||||
Trust Income | 179 | 171 | 548 | 523 | DIRECTORS | Steven J. Bourgeois - St. Albans | |||||||||||||||||||||||||
Loans, net | 579,651 | 523,010 | Noninterest Income | 2,327 | 2,633 | 6,524 | 7,064 | Kenneth D. Gibbons-Chairman | Stanley T. Fillion - Northern NH | ||||||||||||||||||||||
Neil J. Van Dyke-Vice Chairman | Rosemary H. Gingue - St. Johnsbury | ||||||||||||||||||||||||||||||
Reserve for Loan Losses | (5,259 | ) | (5,226 | ) | Noninterest Expenses: | Steven J. Bourgeois | John M. Goodrich - St. Johnsbury | ||||||||||||||||||||||||
Salaries & Wages | 2,570 | 2,622 | 7,642 | 7,522 | Dawn D. Bugbee | Richard L. Isabelle - St. Johnsbury | |||||||||||||||||||||||||
Premises and Equipment, net | 13,244 | 13,377 | John M. Goodrich | Christopher M. Knapp - Northern NH | |||||||||||||||||||||||||||
Pension & Employee Benefits | 954 | 865 | 2,784 | 2,659 | Nancy C. Putnam | Coleen K. Kohaut - St. Albans | |||||||||||||||||||||||||
Accrued Interest & Other Assets | 26,053 | 25,207 | Timothy W. Sargent | Justin P. Lavely - St. Johnsbury | |||||||||||||||||||||||||||
Occupancy Expense, net | 320 | 297 | 1,073 | 923 | David S. Silverman | Daniel J. Luneau - St. Albans | |||||||||||||||||||||||||
Total Assets | $ | 705,087 | $ | 672,579 | John H. Steel | Mary K. Parent - St. Johnsbury | |||||||||||||||||||||||||
Equipment Expense | 532 | 553 | 1,589 | 1,603 | Schuyler W. Sweet | Samuel H. Ruggiano - St. Albans | |||||||||||||||||||||||||
David S. Silverman - All | |||||||||||||||||||||||||||||||
Other Expenses | 1,565 | 1,687 | 4,665 | 4,828 | Schuyler W. Sweet - Northern NH | ||||||||||||||||||||||||||
Total | 5,941 | 6,024 | 17,753 | 17,535 | Union Bank Offices (ATMs at all Branch Locations) | ||||||||||||||||||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY | SEPT. 30, 2017 | SEPT. 30, 2016 | |||||||||||||||||||||||||||||
Income Before Taxes | 3,225 | 3,095 | 8,866 | 8,321 | |||||||||||||||||||||||||||
Income Tax Expense | 855 | 827 | 2,339 | 2,155 | VERMONT | ||||||||||||||||||||||||||
Noninterest Bearing Deposits | $ | 119,203 | $ | 116,381 | |||||||||||||||||||||||||||
Net income | $ | 2,370 | $ | 2,268 | $ | 6,527 | $ | 6,166 | Barre | Loan Center | |||||||||||||||||||||
Interest Bearing Deposits | 387,707 | 350,376 | 14 North Main Street | 802.476.0062 | |||||||||||||||||||||||||||
Earnings per share | $ | 0.53 | $ | 0.51 | $ | 1.46 | $ | 1.38 | Danville | 421 Route 2 East | 802.684.2211 | ||||||||||||||||||||
Time Deposits | 99,714 | 105,429 | Fairfax | Jct. Routes 104 & 128 | 802.849.2600 | ||||||||||||||||||||||||||
Book Value Per Share | $ | 13.36 | $ | 12.74 | Hardwick | 103 VT Route 15 West | 802.472.8100 | ||||||||||||||||||||||||
Borrowed Funds | 32,520 | 37,513 | Jeffersonville | 5062 VT Route 15 | 802.644.6600 | ||||||||||||||||||||||||||
Johnson | 198 Lower Main Street | 802.635.6600 | |||||||||||||||||||||||||||||
Accrued Interest & Other Liabilities | 6,336 | 6,075 | Lyndonville | 183 Depot Street | 802.626.3100 | ||||||||||||||||||||||||||
Morrisville | 20 Lower Main Street | 802.888.6600 | |||||||||||||||||||||||||||||
Common Stock | 9,876 | 9,869 | 65 Northgate Plaza | 802.888.6860 | |||||||||||||||||||||||||||
Newport | Loan Center | ||||||||||||||||||||||||||||||
Additional Paid-in Capital | 753 | 605 | 325 East Main Street | 802.334.0750 | |||||||||||||||||||||||||||
St. Albans | 15 Mapleville Depot | 802.524.9000 | |||||||||||||||||||||||||||||
Retained Earnings | 55,731 | 51,989 | St. Johnsbury | 364 Railroad Street | 802.748.3131 | ||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | (2,692 | ) | (1,635 | ) | 325 Portland Street | 802.748.3121 | |||||||||||||||||||||||||
 | S. Burlington | Loan Center | |||||||||||||||||||||||||||||
30 Kimball Avenue | 802.865.1000 | ||||||||||||||||||||||||||||||
Treasury Stock at Cost | (4,061 | ) | (4,023 | ) | Stowe | 47 Park Street | 802.253.6600 | ||||||||||||||||||||||||
NEW HAMPSHIRE | |||||||||||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 705,087 | $ | 672,579 | Groveton | 3 State Street | 603.636.1611 | ||||||||||||||||||||||||
Standby letters of credit were $1,584,000 and $1,624,000 at September 30, 2017 and 2016, 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 | |||||||||||||||||||||||||||||