Attached files
| file | filename |
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| 8-K - BODY OF FORM 8-K - UNION BANKSHARES INC | form8-k2ndqtr2018shrpt.htm |
| EX-99.1 - EXHIBIT 99.1 COURTESY PDF COPY - UNION BANKSHARES INC | unb2ndquartershreport2018.pdf |
Exhibit 99.1
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August 9, 2018 | |||||||||
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We are pleased to report a summary of our operating results thus far for 2018. Consolidated net income for the quarter ended June 30, 2018 was $2.5 million, or $0.54 per share, compared to $2.2 million, or $0.50 per share, for the same period in 2017. Net Income was $5.2 million, or $1.16 per share, for the six months ended June 30, 2018, compared to $4.2 million, or $0.93 per share for the same period in 2017. Total assets increased $52.7 million, or 7.9% to reach $717.6 million as of June 30, 2018 from $664.9 million as of June 30, 2017. Total loans increased $39.0 million, or 7.2% to $581.3 million as of June 30, 2018 compared to $542.3 million, as of June 30, 2017. Total deposits reached $578.9 million, as of June 30, 2018 compared to $564.6 million a year ago, or growth of $14.3 million, or 2.5%. The Company had total capital of $60.1 million with a book value per share of $13.46 as of June 30, 2018 compared to $58.5 million and $13.10 per share as of June 30, 2017. Notable items that contributed to the difference in operating results year over year were: an increase in net interest income of $1.2 million, or 9.7%, caused by increased loan volume and higher yields; a reduction in gains on real estate loan sold of $368 thousand caused by lower sales volume and lower margins; a reduction in income tax expense of $526 thousand attributable to the new corporate tax rate; and an increase in non-interest expenses of $641 thousand. Included in noninterest income for the first half of 2018 were two non-recurring items totaling $443 thousand, offset for comparison purposes by $339 thousand in pension expense and $150 thousand in loan loss provision expense that did not occur in the first half of 2017. Towards the end of the first quarter we introduced a new digital and mobile banking service, replacing a dated product. While not without glitches, the conversion was successful. | We now offer a contemporary service able to meet the needs of the most demanding digital/mobile consumers and businesses. Our sense is that the local economy continues to improve despite emerging challenges. Our business owners are having difficulty recruiting qualified workers to keep up with demands. Home buyers are struggling to find inventory, particularly affordable housing. As a result, we are seeing more home building than in previous construction seasons, despite significant inflation in labor and building materials. Our residential construction volume is at all-time highs, with outstanding residential construction loan balances at this writing being $29 million compared to $15 million at this time last year. We are hopeful that the economy continues to grow at a reasonable pace, that prices remain relatively stable, and that exogenous factors do not needlessly harm the current expansion. By the time you read this letter, we will have opened a new full service branch located in Berlin, VT. This branch is the first of three expansion opportunities which we have been working on over the past several months. The permitting and design process takes time but progress is being made and we are hopeful we will be opening branches in Jericho and Williston, VT in mid-2019. On July 18, 2018, the Board of Directors declared a regular quarterly cash dividend of $0.30 per share payable August 9, 2018 to shareholders of record as of July 30, 2018. Please find your dividend check or advice of remittance enclosed. 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 P.O. 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 18 banking offices, two 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 127 years ago. Union Bank has earned an exceptional reputation for residential lending programs and has been recognized by the US Department of Agriculture, Rural Development for the positive impact made in lives of first time home buyers. Union Bank is consistently one of the top Vermont Housing Finance Agency mortgage originators. Additionally, 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 | ||||||||||||||||||||||||||||||
ASSETS | JUNE 30, 2018 | JUNE 30, 2017 | JUNE 30, 2018 | JUNE 30, 2017 | JUNE 30, 2018 | JUNE 30, 2017 | Neil J. Van Dyke-Vice Chairman | David S. Silverman - President & CEO | |||||||||||||||||||||||
Steven J. Bourgeois | Karyn J. Hale - Chief Financial Officer | ||||||||||||||||||||||||||||||
(3 months ended) | (6 months ended) | ||||||||||||||||||||||||||||||
Dawn D. Bugbee | John H. Steel - Secretary | ||||||||||||||||||||||||||||||
Cash and Due from Banks | $ | 4,236 | $ | 3,466 | Interest Income | $ | 7,943 | $ | 7,101 | $ | 15,514 | $ | 13,940 | ||||||||||||||||||
John M. Goodrich | Kristy Adams Alfieri - Assistant Secretary | ||||||||||||||||||||||||||||||
Nancy C. Putnam | Jeffrey G. Coslett - Vice President | ||||||||||||||||||||||||||||||
Federal Funds Sold & Overnight Deposits | 9,610 | 10,969 | Interest Expense | 731 | 516 | 1,378 | 1,053 | Timothy W. Sargent | |||||||||||||||||||||||
Net Interest Income | 7,212 | 6,585 | 14,136 | 12,887 | David S. Silverman | REGIONAL ADVISORY BOARD MEMBERS | |||||||||||||||||||||||||
Interest Bearing Deposits in Banks | 9,996 | 8,356 | John H. Steel | ||||||||||||||||||||||||||||
Provision for Loan Losses | 150 | — | 150 | — | Schuyler W. Sweet | ||||||||||||||||||||||||||
Investment Securities | 70,102 | 66,976 | Net Interest Income After Provision for Loan Losses | 7,062 | 6,585 | 13,986 | 12,887 | Michael R. Barrett - St. Johnsbury | |||||||||||||||||||||||
Loans Held for Sale | 5,424 | 5,406 | Joel S. Bourassa - Northern NH | ||||||||||||||||||||||||||||
Trust Income | 191 | 191 | 384 | 369 | DIRECTORS | Steven J. Bourgeois - St. Albans | |||||||||||||||||||||||||
Loans, net | 575,922 | 536,908 | Noninterest Income | 1,961 | 2,142 | 4,239 | 4,197 | Kenneth D. Gibbons-Chairman | Stanley T. Fillion - Northern NH | ||||||||||||||||||||||
Neil J. Van Dyke-Vice Chairman | Rosemary H. Gingue - St. Johnsbury | ||||||||||||||||||||||||||||||
Reserve for Loan Losses | (5,553 | ) | (5,168 | ) | Noninterest Expenses: | Joel S. Bourassa | John M. Goodrich - St. Johnsbury | ||||||||||||||||||||||||
Salaries & Wages | 2,614 | 2,504 | 5,263 | 5,072 | Steven J. Bourgeois | Richard L. Isabelle - St. Johnsbury | |||||||||||||||||||||||||
Premises and Equipment, net | 15,172 | 13,233 | Dawn D. Bugbee | Christopher M. Knapp - Northern NH | |||||||||||||||||||||||||||
Pension & Employee Benefits | 1,197 | 951 | 2,155 | 1,830 | John M. Goodrich | Coleen K. Kohaut - St. Albans | |||||||||||||||||||||||||
Accrued Interest & Other Assets | 32,736 | 24,777 | Nancy C. Putnam | Justin P. Lavely - St. Johnsbury | |||||||||||||||||||||||||||
Occupancy Expense, net | 336 | 363 | 731 | 753 | Timothy W. Sargent | Daniel J. Luneau - St. Albans | |||||||||||||||||||||||||
Total Assets | $ | 717,645 | $ | 664,923 | David S. Silverman | Mary K. Parent - St. Johnsbury | |||||||||||||||||||||||||
Equipment Expense | 511 | 523 | 1,046 | 1,057 | John H. Steel | Samuel H. Ruggiano - St. Albans | |||||||||||||||||||||||||
Schuyler W. Sweet | David S. Silverman - All | ||||||||||||||||||||||||||||||
Other Expenses | 1,660 | 1,530 | 3,258 | 3,100 | Schuyler W. Sweet - Northern NH | ||||||||||||||||||||||||||
Total | 6,318 | 5,871 | 12,453 | 11,812 | Union Bank Offices (ATMs at all Branch Locations) | ||||||||||||||||||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY | JUNE 30, 2018 | JUNE 30, 2017 | |||||||||||||||||||||||||||||
Income Before Taxes | 2,896 | 3,047 | 6,156 | 5,641 | |||||||||||||||||||||||||||
Income Tax Expense | 446 | 820 | 959 | 1,484 | VERMONT | ||||||||||||||||||||||||||
Noninterest Bearing Deposits | $ | 110,984 | $ | 108,169 | |||||||||||||||||||||||||||
Net income | $ | 2,450 | $ | 2,227 | $ | 5,197 | $ | 4,157 | Berlin | 1028 US Route 302 | 802.476.0061 | ||||||||||||||||||||
Interest Bearing Deposits | 360,582 | 356,541 | Danville | 421 Route 2 East | 802.684.2211 | ||||||||||||||||||||||||||
Earnings per share | $ | 0.54 | $ | 0.50 | $ | 1.16 | $ | 0.93 | Fairfax | Jct. Routes 104 & 128 | 802.849.2600 | ||||||||||||||||||||
Time Deposits | 107,321 | 99,913 | Hardwick | 103 VT Route 15 West | 802.472.8100 | ||||||||||||||||||||||||||
Book Value Per Share | $ | 13.46 | $ | 13.10 | Jeffersonville | 5062 VT Route 15 | 802.644.6600 | ||||||||||||||||||||||||
Borrowed Funds | 69,039 | 36,395 | Johnson | 198 Lower Main Street | 802.635.6600 | ||||||||||||||||||||||||||
Lyndonville | 183 Depot Street | 802.626.3100 | |||||||||||||||||||||||||||||
Accrued Interest & Other Liabilities | 9,610 | 5,448 | Morrisville | 20 Lower Main Street | 802.888.6600 | ||||||||||||||||||||||||||
65 Northgate Plaza | 802.888.6860 | ||||||||||||||||||||||||||||||
Common Stock | 9,882 | 9,874 | Newport | Loan Center | |||||||||||||||||||||||||||
325 East Main Street | 802.334.0750 | ||||||||||||||||||||||||||||||
Additional Paid-in Capital | 850 | 697 | St. Albans | 15 Mapleville Depot | 802.524.9000 | ||||||||||||||||||||||||||
Retained Earnings | St. Johnsbury | 364 Railroad Street | 802.748.3131 | ||||||||||||||||||||||||||||
59,715 | 54,655 | 325 Portland Street | 802.748.3121 | ||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | (6,260 | ) | (2,722 | ) | S. Burlington | Loan Center | |||||||||||||||||||||||||
 | 30 Kimball Avenue | 802.865.1000 | |||||||||||||||||||||||||||||
Stowe | 47 Park Street | 802.253.6600 | |||||||||||||||||||||||||||||
Treasury Stock at Cost | (4,078 | ) | (4,047 | ) | NEW HAMPSHIRE | ||||||||||||||||||||||||||
Groveton | 3 State Street | 603.636.1611 | |||||||||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 717,645 | $ | 664,923 | Littleton | 263 Dells Road | 603.444.7136 | ||||||||||||||||||||||||
Standby letters of credit were $2,078,000 and $1,619,000 at June 30, 2018 and 2017, respectively. | 76 Main Street | 603.444.5321 | |||||||||||||||||||||||||||||
Lincoln | 135 Main Street | 603.745.4000 | |||||||||||||||||||||||||||||
 | N. Woodstock | 155 Main Street | 603.745.2488 | ||||||||||||||||||||||||||||