Exhibit 99.1
November 8, 2018 | |||||||||
We are pleased to provide you with a summary of your company’s financial performance for the period ended September 30, 2018. Net income was $2.3 million for the quarter ended September 2018 compared to $2.4 million for the quarter ended September 30, 2017, a decrease of $59 thousand, or 2.5%.These results reflected an increase in the Company’s net interest income of $199 thousand, or 2.9%, and a decrease in the provision for income taxes of $402 thousand, or 47.0%. These positive changes were partially offset by a decrease in noninterest income of $54 thousand, or 2.2%, and an increase in noninterest expenses of $606 thousand, or 10.2%. Year-to-date earnings for 2018 were $7.5million, or $1.68 per share, compared to $6.5 million, or $1.46 per share, for the same period in 2017, an increase of 15.0% year over year. Net interest income improved $1.4 million, or 7.4%, and the provision for income taxes decreased $927 thousand, or 39.6%. These positive changes were partially offset by an increase in noninterest expenses of $1.2 million, or 7.0%, and an increase in the provision for loan losses of $150 thousand. Total assets increased $74.3 million, or 10.5% to reach $779.7 million as of September 30, 2018 from $705.3 million as of September 30, 2017. Total loans increased $59.3 million, or 10.1% to $644.6 million as of September 30, 2018 compared to $585.3 million as of September 30, 2017. Total deposits reached $667.7 million as of September 30, 2018 compared to $606.6 million a year ago, or growth of 61.1 million, or 10.1%. Borrowed funds were $42.0 million as of September 30, 2018, an increase of $9.5 million compared to September 30, 2017. The Company had total capital of $60.8 million with a book value per share of $13.61 as of September 30, 2018 compared to $59.6 million and $13.36 per share as of September 30, 2017. | We have previously informed you of our plan to terminate the bank’s Defined Benefit Pension Plan in 2018. In preparation for the termination Plan participants have been notified, offered financial counseling, and solicited for their instructions on how they wish to have their funds distributed. Actuarial calculations have been finalized, pension plan assets converted to cash, and annuity providers selected. By the time you read this letter, the pension plans assets will have been distributed to our annuity provider in the case of participants on payout, and distributed to the investment vehicle chosen by participants not on payout. There are non-recurring impacts on our financial statements related to the pension termination. First, we made an $850 thousand cash contributions to the plan during 2018. Second, during 2018 we will have recorded a total of $3.7 million in net pension termination related expenses. Finally, we will see an increase in total capital on our balance sheet as the component of accumulated other comprehensive loss related to the pension plan will be removed. With the pension completely terminated, there will be no cash contributions to the plan, no related pension expenses, and no further liabilities associated with the Defined Benefit Pension plan going forward. On October 17, 2018, the Board of Directors declared a regular quarterly cash dividend of $0.30 per share payable November 8, 2018 to shareholders of record as of October 29, 2018. Please find your dividend check or advice of remittance enclosed. Please contact Kristy Adams Alfieri at 802-888-0982 to receive your dividend using direct deposit. 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 | |||||||||
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 | SEPT 30, 2018 | SEPT 30, 2017 | SEPT 30, 2018 | SEPT 30, 2017 | SEPT 30, 2018 | SEPT 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) | (9 months ended) | ||||||||||||||||||||||||||||||
Dawn D. Bugbee | John H. Steel - Secretary | ||||||||||||||||||||||||||||||
Cash and Due from Banks | $ | 4,063 | $ | 3,512 | Interest Income | $ | 8,095 | $ | 7,397 | $ | 23,609 | $ | 21,337 | ||||||||||||||||||
John M. Goodrich | Kristy Adams Alfieri - Assistant Secretary | ||||||||||||||||||||||||||||||
Nancy C. Putnam | Jeffrey G. Coslett - Vice President | ||||||||||||||||||||||||||||||
Federal Funds Sold & Overnight Deposits | 9,837 | 8,885 | Interest Expense | 1,086 | 587 | 2,464 | 1,640 | Timothy W. Sargent | |||||||||||||||||||||||
Net Interest Income | 7,009 | 6,810 | 21,145 | 19,697 | David S. Silverman | REGIONAL ADVISORY BOARD MEMBERS | |||||||||||||||||||||||||
Interest Bearing Deposits in Banks | 9,747 | 8,356 | John H. Steel | ||||||||||||||||||||||||||||
Provision for Loan Losses | 150 | 150 | 300 | 150 | Schuyler W. Sweet | ||||||||||||||||||||||||||
Investment Securities | 72,133 | 64,970 | Net Interest Income After Provision for Loan Losses | 6,859 | 6,660 | 20,845 | 19,547 | Michael R. Barrett - St. Johnsbury | |||||||||||||||||||||||
Loans Held for Sale | 7,457 | 5,675 | Joel S. Bourassa - Northern NH | ||||||||||||||||||||||||||||
Trust Income | 195 | 179 | 579 | 548 | DIRECTORS | Steven J. Bourgeois - St. Albans | |||||||||||||||||||||||||
Loans, net | 637,130 | 579,651 | Noninterest Income | 2,257 | 2,327 | 6,496 | 6,524 | Kenneth D. Gibbons-Chairman | Stanley T. Fillion - Northern NH | ||||||||||||||||||||||
Neil J. Van Dyke-Vice Chairman | Rosemary H. Gingue - St. Johnsbury | ||||||||||||||||||||||||||||||
Reserve for Loan Losses | (5,610 | ) | (5,259 | ) | Noninterest Expenses: | Joel S. Bourassa | John M. Goodrich - St. Johnsbury | ||||||||||||||||||||||||
Salaries & Wages | 2,745 | 2,570 | 8,008 | 7,642 | Steven J. Bourgeois | Richard L. Isabelle - St. Johnsbury | |||||||||||||||||||||||||
Premises and Equipment, net | 15,747 | 13,244 | Dawn D. Bugbee | Christopher M. Knapp - Northern NH | |||||||||||||||||||||||||||
Pension & Employee Benefits | 1,144 | 954 | 3,299 | 2,784 | John M. Goodrich | Coleen K. Kohaut - St. Albans | |||||||||||||||||||||||||
Accrued Interest & Other Assets | 29,154 | 26,312 | Nancy C. Putnam | Justin P. Lavely - St. Johnsbury | |||||||||||||||||||||||||||
Occupancy Expense, net | 338 | 320 | 1,069 | 1,073 | Timothy W. Sargent | Daniel J. Luneau - St. Albans | |||||||||||||||||||||||||
Total Assets | $ | 779,658 | $ | 705,346 | David S. Silverman | Mary K. Parent - St. Johnsbury | |||||||||||||||||||||||||
Equipment Expense | 528 | 532 | 1,574 | 1,589 | John H. Steel | Samuel H. Ruggiano - St. Albans | |||||||||||||||||||||||||
Schuyler W. Sweet | David S. Silverman - All | ||||||||||||||||||||||||||||||
Other Expenses | 1,792 | 1,565 | 5,050 | 4,665 | Schuyler W. Sweet - Northern NH | ||||||||||||||||||||||||||
Total | 6,547 | 5,941 | 19,000 | 17,753 | Union Bank Offices (ATMs at all Branch Locations) | ||||||||||||||||||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY | SEPT 30, 2018 | SEPT 30, 2017 | |||||||||||||||||||||||||||||
Income Before Taxes | 2,764 | 3,225 | 8,920 | 8,866 | |||||||||||||||||||||||||||
Income Tax Expense | 453 | 855 | 1,412 | 2,339 | VERMONT | ||||||||||||||||||||||||||
Noninterest Bearing Deposits | $ | 126,596 | $ | 119,203 | |||||||||||||||||||||||||||
Net income | $ | 2,311 | $ | 2,370 | $ | 7,508 | $ | 6,527 | Berlin | 1028 US Route 302 | 802.476.0061 | ||||||||||||||||||||
Interest Bearing Deposits | 407,965 | 387,707 | Danville | 421 Route 2 East | 802.684.2211 | ||||||||||||||||||||||||||
Earnings per share | $ | 0.52 | $ | 0.53 | $ | 1.68 | $ | 1.46 | Fairfax | Jct. Routes 104 & 128 | 802.849.2600 | ||||||||||||||||||||
Time Deposits | 133,162 | 99,714 | Hardwick | 103 VT Route 15 West | 802.472.8100 | ||||||||||||||||||||||||||
Book Value Per Share | $ | 13.61 | $ | 13.36 | Jeffersonville | 5062 VT Route 15 | 802.644.6600 | ||||||||||||||||||||||||
Borrowed Funds | 41,990 | 32,520 | Johnson | 198 Lower Main Street | 802.635.6600 | ||||||||||||||||||||||||||
Lyndonville | 183 Depot Street | 802.626.3100 | |||||||||||||||||||||||||||||
Accrued Interest & Other Liabilities | 9,168 | 6,595 | Morrisville | 20 Lower Main Street | 802.888.6600 | ||||||||||||||||||||||||||
65 Northgate Plaza | 802.888.6860 | ||||||||||||||||||||||||||||||
Common Stock | 9,882 | 9,876 | Newport | Loan Center | |||||||||||||||||||||||||||
325 East Main Street | 802.334.0750 | ||||||||||||||||||||||||||||||
Additional Paid-in Capital | 897 | 753 | St. Albans | 15 Mapleville Depot | 802.524.9000 | ||||||||||||||||||||||||||
Retained Earnings | St. Johnsbury | 364 Railroad Street | 802.748.3131 | ||||||||||||||||||||||||||||
60,686 | 55,731 | 325 Portland Street | 802.748.3121 | ||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | (6,612 | ) | (2,692 | ) | S. Burlington | Loan Center | |||||||||||||||||||||||||
30 Kimball Avenue | 802.865.1000 | ||||||||||||||||||||||||||||||
Stowe | 47 Park Street | 802.253.6600 | |||||||||||||||||||||||||||||
Treasury Stock at Cost | (4,076 | ) | (4,061 | ) | NEW HAMPSHIRE | ||||||||||||||||||||||||||
Groveton | 3 State Street | 603.636.1611 | |||||||||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 779,658 | $ | 705,346 | Littleton | 263 Dells Road | 603.444.7136 | ||||||||||||||||||||||||
Standby letters of credit were $2,125,000 and $2,158,000 at September 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 | |||||||||||||||||||||||||||||