Document
Exhibit 99.1
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| May 7, 2026 | ||||||||||||||||||||||||||
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We are pleased to share that Union Bankshares delivered solid first-quarter performance. For the three months ended March 31, 2026, consolidated net income was $3.0 million, or $0.65 per share, compared to $2.5 million, or $0.55 per share, for the first quarter of 2025. This improvement was driven primarily by higher net interest income, disciplined credit performance, and continued focus on serving customers across our Vermont and New Hampshire footprint. Our balance sheet continued to expand. Total assets were $1.63 billion at quarter end, up 6.6% from March 31, 2025. Liquidity strengthened, with federal funds sold and overnight deposits rising to $25.3 million from $8.9 million a year ago. We also grew the investment securities portfolio to $315.6 million, up 26.4%, reflecting our strategic decision to pre-invest future portfolio cash flows during the fourth quarter of 2025. Loan growth was modest, with total loans of $1.18 billion—an increase of $15.8 million, or 1.3%, from the prior year period. We remained an active residential lender, selling $24.1 million of mortgage loans during the quarter, and we continue to support local businesses and municipalities with relationship driven banking. Importantly, asset quality remains strong. The allowance for credit losses on loans was $8.1 million at March 31, 2026, stable year over year, and we will continue to monitor economic conditions and borrower performance closely. From an earnings standpoint, net interest income increased $1.0 million, or 10.0%, supported by a larger earning asset base and higher yields. Noninterest income was $2.5 million, including $350 thousand in net gains on mortgage sales. We also invested in our people, technology, and operations, which contributed to a $958 thousand increase in noninterest expense. We remain focused on aligning these investments with the service quality and capabilities our customers expect. Funding and capital levels remained sound. Total deposits were $1.20 billion at March 31, 2026, and we continued to utilize a mix of core deposits, brokered deposits, and Federal Home Loan Bank advances to support customer demand. Stockholders’ equity increased to $80.6 million, and book value per share | rose 13.1% year over year to $17.46, benefiting from retained earnings and improvement in accumulated other comprehensive loss on our securities portfolio compared to the first quarter of 2025. Economic conditions in Northern Vermont and Northern New Hampshire during the first quarter of 2026 were generally steady and modestly positive. Employment levels were stable, with continued tightness in the labor market, especially in healthcare, education, skilled trades, and hospitality. Inflation pressures that affected households in prior years appeared to moderate, though energy prices are beginning to impact consumers and businesses. The travel and tourism sectors were a clear bright spot during the quarter, supported by an exceptionally strong snow year. Consistent snowfall drove above average visitation to ski areas and snowmobile destinations, benefiting lodging, restaurants, and retailers across the region. Alpine and Nordic ski areas reported strong skier visits, while snowmobile trail networks saw heavy use, extending economic activity into smaller, rural communities that rely heavily on winter recreation. We are pleased to announce that the Board declared a quarterly cash dividend of $0.36 per share, payable May 7, 2026, to shareholders of record as of April 27, 2026. We hope to see many of you at our 135th Annual Shareholders meeting on May 20th at 3:00pm in Stearns Performance Space on the Vermont State University, Johnson Campus, 337 College Hill Road, Johnson, VT. A reception will be held immediately following the annual meeting. 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 Karyn J. Hale, CFO, at 802.888.6600 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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Neil J. Van Dyke Chair | 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, 3 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 130 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 the 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. Union Bank has received an "Outstanding" rating for its compliance with the Community Reinvestment Act (CRA). An institution in this group has an excellent record of helping to meet the credit needs of its assessment area, particularly in low-and moderate income neighborhoods, in a manner consistent with its resources and capabilities. | ||||||||||||||||||||||||||
Consolidated Balance Sheets (unaudited, in thousands) | Consolidated Statements of Income (unaudited, in thousands) | Union Bankshares, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DIRECTORS | OFFICERS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Neil J. Van Dyke - Chair | Neil J. Van Dyke - Chair | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ASSETS | March 31, 2026 | March 31, 2025 | March 31, 2026 | March 31, 2025 | March 31, 2026 | Timothy W. Sargent - Vice Chair | David S. Silverman - President & CEO | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dawn D. Bugbee | Karyn J. Hale - Chief Financial Officer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (3 months ended) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mary K. Parent | Timothy W. Sargent - Secretary | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and Due from Banks | $ | 4,502 | $ | 4,772 | Interest Income | $ | 19,530 | $ | 18,295 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Nancy C. Putnam | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Expense | 8,235 | 8,025 | Gregory D. Sargent | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Federal Funds Sold & Overnight Deposits | 25,322 | 8,940 | David S. Silverman | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Interest Income | 11,295 | 10,270 | Janet P. Spitler | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Bearing Deposits in Banks | 7,958 | 7,959 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Credit Loss (Benefit) Expense | (325) | 235 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment Securities | 315,591 | 249,631 | Net Interest Income After Credit Loss Expense | 11,620 | 10,035 | Union Bank | REGIONAL ADVISORY BOARD MEMBERS | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans Held for Sale | 4,193 | 4,055 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DIRECTORS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans, net | 1,178,969 | 1,163,321 | Wealth Management Income | 304 | 276 | Neil J. Van Dyke - Chair | Michael R. Barrett - St. Johnsbury | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Timothy W. Sargent - Vice Chair | Steven J. Bourgeois - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for Credit Losses | (8,071) | (8,110) | Noninterest Income | 2,190 | 2,164 | Dawn D. Bugbee | Andrew A. Dean - Northern NH | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Steven P. Cote | Stanley T. Fillion - Northern NH | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Premises and Equipment, net | 19,603 | 19,988 | Noninterest Expenses: | Walter B. Frame III | Rosemary H. Gingue - St. Johnsbury | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mary K. Parent | John M. Goodrich - Northern NH | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accrued Interest & Other Assets | 77,078 | 74,276 | Salaries & Wages | 4,397 | 3,911 | Nancy C. Putnam | Christopher M. Knapp - Northern NH | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gregory D. Sargent | Coleen K. Kohaut - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Assets | $ | 1,625,145 | $ | 1,524,832 | Employee Benefits | 1,765 | 1,581 | David S. Silverman | Justin P. Lavely - St. Johnsbury | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Janet P. Spitler | Daniel J. Luneau - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Occupancy Expense, net | 647 | 652 | Samuel H. Ruggiano - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Christine A. Sheley - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LIABILITIES & SHAREHOLDERS' EQUITY | March 31, 2026 | March 31, 2025 | Equipment Expense | 1,110 | 1,049 | David S. Silverman - All | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Union Bank Offices (ATMs at all Branch Locations) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Expenses | 2,863 | 2,631 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest Bearing Deposits | $ | 220,708 | $ | 232,550 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | 10,782 | 9,824 | VERMONT | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Bearing Deposits | 703,813 | 682,886 | Income Before Taxes | 3,332 | 2,651 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Berlin | 1028 US Route 302 | 802.476.0061 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Time Deposits | 275,297 | 265,940 | Income Tax Expense | 328 | 150 | Fairfax | Jct. Routes 104 & 128 | 802.849.2600 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Hardwick | 103 VT Route 15 West | 802.472.8100 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Borrowed Funds | 310,981 | 240,696 | Net income | $ | 3,004 | $ | 2,501 | Jeffersonville | 5062 VT Route 15 | 802.644.6600 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Jericho | 368 VT Route 15 | 802.899.7500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Subordinated Notes | 16,316 | 16,281 | Earnings Per Share | $ | 0.65 | $ | 0.55 | Lyndonville | 183 Depot Street | 802.626.3100 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Morrisville | 20 Lower Main Street | 802.888.6600 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accrued Interest & Other Liabilities | 17,465 | 16,405 | Book Value Per Share | $ | 17.46 | $ | 15.44 | 65 Northgate Plaza | 802.888.6860 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Shelburne | 5068 Shelburne Road | 802.985.0227 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | 10,169 | 10,024 | St. Albans | 15 Mapleville Depot | 802.524.9000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| St. Johnsbury | Operations and Loan Center | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Additional Paid-in Capital | 4,821 | 3,190 | 364 Railroad Street | 802.748.3131 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retained Earnings | Branch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 97,590 | 92,589 | 325 Portland Street | 802.748.3121 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accumulated Other Comprehensive Loss | (27,747) | (31,434) | Stowe | 47 Park Street | 802.253.6600 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Williston | Branch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 31 Market St | 802.878.7900 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Treasury Stock at Cost | (4,268) | (4,295) |  | Loan Center | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 31 Market St | 802.865.1000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Liabilities & Shareholders' Equity | $ | 1,625,145 | $ | 1,524,832 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Standby letters of credit were $1,573,000 and $1,544,000 at March 31, 2026 and 2025, respectively. | NEW HAMPSHIRE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Groveton | 3 State Street | 603.636.1611 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 | Littleton | 263 Dells Road | 603.444.7136 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 76 Main Street | 603.444.5321 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lincoln | 135 Main Street | 603.745.4000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| North Conway | 120 North-South Road | 603.356.4010 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||