Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 COURTESY PDF COPY - UNION BANKSHARES INC | unb4thquartershreport2017.pdf |
| 8-K - BODY OF FORM 8-K - UNION BANKSHARES INC | form8-k4thqtr2017shrpt.htm |
Exhibit 99.1
 |  | ||||||||
February 8, 2018 | |||||||||
 |  | ||||||||
We are pleased to report the financial results for your Company for the three and twelve months ended December 31, 2017. Consolidated net income for the three months ended December 31, 2017 was $1.9 million, or $0.43 per share, compared to $2.3 million, or $0.53 per share, for the same period in 2016, and $8.4 million, or $1.89 per share, for the year ended December 31, 2017, compared to $8.5 million, or $1.91 per share, for the same period in 2016. The decrease in earnings for three and twelve month comparison periods is due to a one-time charge to earnings of $447 thousand for the revaluation of the Company’s deferred tax assets as a result of the Tax Cuts and Jobs Act being signed into law on December 22, 2017. Net income before taxes increased $943 thousand or 8.5% year over year. 2017 was a year of good growth in key balance sheet measurements. Total assets increased to $745.7 million, up 7.9% year over year. Likewise, total loans increased to $595.4 million, up 9.9% year over year, and total deposits increased to $647.6 million, up 8.4% year over year. Asset quality at the end of the year remained very good, with only $36 thousand of Other Real Estate Owned on the balance sheet and net charge o¥ s for the year only amounting to $39 thousand on an almost $600 million book of loans. There are several economic tailwinds combining to help our region’s economy. Good early season snow and cold temperatures provided for great snow sport conditions for the past holiday season. While extended bitter cold temperatures may have dampened visitors enthusiasm to be outdoors, our local restaurants and retailers were more than happy to provide sustenance and activities to keep our guests captivated. Residential construction has continued strong and unabated, answering the need for more housing inventory as purchase activity has decreased properties available for sale in most of the markets we serve. Regional manufacturers and distributors report good | sales and solid books of business. Even on a Federal level, despite the sophomoric displays, from all participants, the eased regulatory climate and corporate tax reform appear to have a positive economic impact, at least measured by the unemployment rate and the stock market. The greatest concern among our local businesses has become recruiting and retaining a strong workforce to enable them to meet their customer’s demands. We have many projects, large and small, being worked on in 2018. If you have been around here you may have noticed that we have our Main Office lobby closed for renovations.We anticipate completion of this project in April. As has been previously discussed, we are converting our digital and mobile banking applications to new, state of the art delivery products with conversion slated for March and April. Much work has gone into this project and we are very excited to offer this improved service to our customers. Also, as has been previously discussed, we are planning on terminating our Defined Benefit Pension Plan during the fourth quarter of 2018. This will have a one-time negative impact on fourth quarter earnings. Finally, we expect a positive impact on our effective Federal Tax Rate brought to us by the Tax Cuts and Jobs Act signed into law on December 22, 2017. The Board of Directors met on January 17, 2018 and considered 2017 financial performance and expected financial performance in 2018 and declared a dividend of 30 cents per share to record holders on January 27, 2018 payable on February 8, 2018. This represents a 1 cent increase compared to the previous quarter’s dividend. 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 | |||||||||
 |  | ||||||||
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 | DEC. 31, 2017 | DEC. 31, 2016 | DEC. 31, 2017 | DEC. 31, 2016 | DEC. 31, 2017 | DEC. 31, 2016 | Steven J. Bourgeois | Karyn J. Hale - Chief Financial Officer | |||||||||||||||||||||||
Dawn D. Bugbee | John H. Steel - Secretary | ||||||||||||||||||||||||||||||
(3 months ended) | (12 months ended) | ||||||||||||||||||||||||||||||
John M. Goodrich | Kristy Adams Alfieri - Assistant Secretary | ||||||||||||||||||||||||||||||
Cash and Due from Banks | $ | 3,857 | $ | 4,272 | Interest Income | $ | 7,680 | $ | 6,914 | $ | 29,017 | $ | 26,836 | ||||||||||||||||||
Timothy W. Sargent | Jeffrey G. Coslett - Vice President | ||||||||||||||||||||||||||||||
Federal Funds Sold & Overnight Deposits | 34,651 | 35,003 | Interest Expense | 615 | 558 | 2,255 | 2,061 | David S. Silverman | |||||||||||||||||||||||
Net Interest Income | 7,065 | 6,356 | 26,762 | 24,775 | John H. Steel | REGIONAL ADVISORY BOARD MEMBERS | |||||||||||||||||||||||||
Interest Bearing Deposits in Banks | 9,352 | 9,504 | Schuyler W. Sweet | ||||||||||||||||||||||||||||
Provision for Loan Losses | 50 | — | 200 | 150 | |||||||||||||||||||||||||||
Investment Securities | 66,439 | 66,555 | Net Interest Income After Provision for Loan Losses | 7,015 | 6,356 | 26,562 | 24,625 | Union Bank | Michael R. Barrett - St. Johnsbury | ||||||||||||||||||||||
Loans Held for Sale | 7,947 | 7,803 | Joel S. Bourassa - Northern NH | ||||||||||||||||||||||||||||
Trust Income | 191 | 214 | 739 | 737 | DIRECTORS | Steven J. Bourgeois - St. Albans | |||||||||||||||||||||||||
Loans, net | 587,409 | 533,939 | Noninterest Income | 2,132 | 2,339 | 8,656 | 9,403 | Kenneth D. Gibbons-Chairman | Stanley T. Fillion - Northern NH | ||||||||||||||||||||||
Neil J. Van Dyke-Vice Chairman | Rosemary H. Gingue - St. Johnsbury | ||||||||||||||||||||||||||||||
Reserve for Loan Losses | (5,408 | ) | (5,247 | ) | Noninterest Expenses: | Steven J. Bourgeois | John M. Goodrich - St. Johnsbury | ||||||||||||||||||||||||
Salaries & Wages | 2,615 | 2,681 | 10,257 | 10,203 | Dawn D. Bugbee | Richard L. Isabelle - St. Johnsbury | |||||||||||||||||||||||||
Premises and Equipment, net | 14,255 | 13,525 | John M. Goodrich | Christopher M. Knapp - Northern NH | |||||||||||||||||||||||||||
Pension & Employee Benefits | 924 | 866 | 3,708 | 3,525 | Nancy C. Putnam | Coleen K. Kohaut - St. Albans | |||||||||||||||||||||||||
Other Real Estate Owned, net | 36 | — | Timothy W. Sargent | Justin P. Lavely - St. Johnsbury | |||||||||||||||||||||||||||
Occupancy Expense, net | 342 | 340 | 1,415 | 1,263 | David S. Silverman | Daniel J. Luneau - St. Albans | |||||||||||||||||||||||||
Accrued Interest & Other Assets | 27,210 | 26,027 | John H. Steel | Mary K. Parent - St. Johnsbury | |||||||||||||||||||||||||||
Equipment Expense | 619 | 512 | 2,208 | 2,115 | Schuyler W. Sweet | Samuel H. Ruggiano - St. Albans | |||||||||||||||||||||||||
Total Assets | $ | 745,748 | $ | 691,381 | David S. Silverman - All | ||||||||||||||||||||||||||
Other Expenses | 1,652 | 1,722 | 6,317 | 6,550 | Schuyler W. Sweet - Northern NH | ||||||||||||||||||||||||||
Total | 6,152 | 6,121 | 23,905 | 23,656 | Union Bank Offices (ATMs at all Branch Locations) | ||||||||||||||||||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY | DEC. 31, 2017 | DEC. 31, 2016 | |||||||||||||||||||||||||||||
Income Before Taxes | 3,186 | 2,788 | 12,052 | 11,109 | |||||||||||||||||||||||||||
Income Tax Expense | 1,264 | 442 | 3,603 | 2,598 | VERMONT | ||||||||||||||||||||||||||
Noninterest Bearing Deposits | $ | 127,824 | $ | 112,384 | |||||||||||||||||||||||||||
Net income | $ | 1,922 | $ | 2,346 | $ | 8,449 | $ | 8,511 | Barre | Loan Center | |||||||||||||||||||||
Interest Bearing Deposits | 418,621 | 382,083 | 14 North Main Street | 802.476.0062 | |||||||||||||||||||||||||||
Earnings per share | $ | 0.43 | $ | 0.53 | $ | 1.89 | $ | 1.91 | Danville | 421 Route 2 East | 802.684.2211 | ||||||||||||||||||||
Time Deposits | 101,129 | 103,193 | Fairfax | Jct. Routes 104 & 128 | 802.849.2600 | ||||||||||||||||||||||||||
Book Value Per Share | $ | 13.17 | $ | 12.61 | Hardwick | 103 VT Route 15 West | 802.472.8100 | ||||||||||||||||||||||||
Borrowed Funds | 31,581 | 31,595 | Jeffersonville | 5062 VT Route 15 | 802.644.6600 | ||||||||||||||||||||||||||
Johnson | 198 Lower Main Street | 802.635.6600 | |||||||||||||||||||||||||||||
Accrued Interest & Other Liabilities | 7,770 | 5,847 | Lyndonville | 183 Depot Street | 802.626.3100 | ||||||||||||||||||||||||||
Morrisville | 20 Lower Main Street | 802.888.6600 | |||||||||||||||||||||||||||||
Common Stock | 9,882 | 9,874 | 65 Northgate Plaza | 802.888.6860 | |||||||||||||||||||||||||||
Newport | Loan Center | ||||||||||||||||||||||||||||||
Additional Paid-in Capital | 755 | 620 | 325 East Main Street | 802.334.0750 | |||||||||||||||||||||||||||
St. Albans | 15 Mapleville Depot | 802.524.9000 | |||||||||||||||||||||||||||||
Retained Earnings | 56,359 | 53,086 | St. Johnsbury | 364 Railroad Street | 802.748.3131 | ||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | (4,096 | ) | (3,279 | ) | 325 Portland Street | 802.748.3121 | |||||||||||||||||||||||||
 | S. Burlington | Loan Center | |||||||||||||||||||||||||||||
30 Kimball Avenue | 802.865.1000 | ||||||||||||||||||||||||||||||
Treasury Stock at Cost | (4,077 | ) | (4,022 | ) | Stowe | 47 Park Street | 802.253.6600 | ||||||||||||||||||||||||
NEW HAMPSHIRE | |||||||||||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 745,748 | $ | 691,381 | Groveton | 3 State Street | 603.636.1611 | ||||||||||||||||||||||||
Standby letters of credit were $2,064,000 and $1,624,000 at December 31, 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 | |||||||||||||||||||||||||||||