Union Bankshares Inc., headquartered in Morrisville, Vermont, is the bank holding company parent of Union Bank, which provides commercial, retail, and municipal banking services, as well as, asset management services throughout northern Vermont and New Hampshire. Union Bank operates 18 banking offices, two loan centers, and multiple ATMs throughout its geographical footprint.
Our loans are concentrated in certain areas of Vermont and New Hampshire and adverse conditions in those markets could adversely affect our operations.
If our allowance for loan losses is not sufficient to cover actual loan losses, our earnings could decrease.
Our commercial, commercial real estate and construction loan portfolio may expose us to increased credit risks.
Changes in interest rates and interest rate volatility may reduce our profitability.
Our cost of funds for banking operations may increase as a result of loss of deposits or a change in deposit mix.
Wholesale funding sources may prove insufficient to replace deposits at maturity and support our operations and future growth.
We operate in a highly regulated environment and may be adversely affected by changes in laws, regulations and monetary policy.
Additional requirements imposed by the Dodd-Frank Act could adversely affect us.
We may become subject to more stringent capital requirements.
We face significant legal risks, both from regulatory investigations and proceedings and from private actions brought against us.
Our financial condition and results of operations have been adversely affected, and may continue to be adversely affected, by general market and economic conditions.
Competition in the local banking industry may impair our ability to attract and retain customers at current levels.
If we do not maintain net income growth, the market price of our common stock could be adversely affected.
We may incur significant losses as a result of ineffective risk management processes and strategies.
Environmental liability associated with our lending activities could result in losses.
We must adapt to information technology changes in the financial services industry, which could present operational issues, require significant capital spending, or impact our reputation.
A failure in or breach of our operational systems, information systems, or infrastructure, or those of our third party vendors and other service providers, may result in financial losses, loss of customers, or damage to our reputation.
An interruption or breach in security of our information systems or those related to merchants and third party vendors, including as a result of cyber attacks, could disrupt our business, result in the disclosure or misuse of confidential or proprietary information, damage our reputation, or result in financial losses.
We may be unable to attract and retain key personnel.
We are subject to reputational risk.
We may suffer losses as a result of operational risk or technical system failures.
We rely on other companies to provide key components of our business infrastructure.
We are a holding company and depend on Union Bank for dividends, distributions and other payments.
Our stockholders may not receive dividends on our common stock.
Changes in accounting standards can be difficult to predict and can materially impact how we record and report our financial condition and results of operations.
Our financial statements are based in part on assumptions and estimates, which, if wrong, could cause unexpected losses in the future.
We may need to raise additional capital in the future and such capital may not be available when needed.
Certain provisions of our articles of incorporation may have an anti-takeover effect.
Market volatility may impact our business and the value of our common stock.
We may be required to write down goodwill and other identifiable intangible assets.
statements and should be read in conjunction with the consolidated financial statements and related notes and with other financial data appearing elsewhere in this filing and with the Company's 2018 Annual Report. In the opinion of the Company's management, the interim unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments and disclosures necessary to fairly present the Company's consolidated financial position and results of operations for the interim periods presented. Management is not aware of the occurrence of any events after June 30, 2019 which would materially affect the information presented.
Please refer to Note 1 in the Company's unaudited interim consolidated financial statements at Part I, Item 1 of this Report for definitions of acronyms, abbreviations and capitalized terms used throughout the following discussion and analysis.