Exhibit 99.1
May 9, 2019 | |||||||||
We are pleased to report a summary of financial results for Union Bankshares, Inc. for the three months ended March 31, 2019. Consolidated net income for the first quarter of 2019 was $2.6 million, or $0.59 per share, compared to $2.7 million, or $0.62 per share, for the same period in 2018. The decrease in earnings for the comparison periods occurred primarily due to a onetime increase in earnings of $443 thousand from the gain on the sale of a former branch building and proceeds from a bank owned insurance policy in 2018 that did not repeat in 2019. Total Assets increased to $813.3 million as of March 31, 2019 due to continued loan demand. Total loans were $656.4 million as of March 31, 2019 compared to $595.4 million of March 31, 2018, an increase of $61 million, which was funded using a combination of core deposits and wholesale funding options such as brokered deposits and Federal Home Loan Bank advances. Total deposits reached $700.4 million as of March 31, 2019 compared to $623.8 million a year ago, an increase of $76.5 million, or 12.3%. The Company had total capital of $66.7 million with a book value per share of $14.94 as of March 31, 2019 compared to $59.2 million and $13.25 per share as of March 31, 2018. Interest income was $8.7 million for three months ended March 31, 2019 compared to $7.6 million for the three months ended March 31, 2018, an increase of $1.1 million, or 14.3%. Interest expense was $1.2 million for three months ended March 31, 2019 compared to $647 thousand for the three months ended March 31, 2018, an increase of $583 thousand, or 90.1%. Competition for customer deposits remains strong and continues to put upward pressure on the cost of funds. At this writing spring is reluctantly emerging after a lengthy and hard winter season. Abundant snow and cold weather were friendly to snow sport enthusiasts, the tourism industry, fuel dealers and snow removal services among others. The local economy is relatively healthy, though a lack of available workers as well as a lack of real estate inventory remains a challenge. | We would like to take this opportunity to remind you that you are invited to the 128th Annual Meeting of Union Bankshares, Inc. which will be held on May 15, 2019 at 3:00pm at the Charlmont Restaurant meeting room, located at 116 Vermont Route 15 West, Morrisville, Vermont. A reception will be held immediately after the Annual Meeting. This year’s Annual Meeting will mark the retirement of Kenneth D. Gibbons from the Board of Directors. Ken joined Union Bank in 1984, became President and CEO in 1991, and served 21 years as CEO. Including his time on the Board, Ken will have served Union Bankshares, Inc. for 35 years. In addition to his service to the bank, Ken has been, and remains very active in the non-profit sector, and was recognized for his commitment to the community by being the recipient of the Outstanding Community Service Banker award in 2011 from the Vermont Banker’s Association. Ken’s many legacies include a history of financial success, staff mentoring, business acumen, guidance, and friendship to current and past shareholders, board members, staff, and customers. He will be missed. On April 17, 2019, the Board of Directors declared a cash dividend of $0.31 payable May 9, 2019 to shareholders of record as of April 30, 2019. 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 | MAR 31, 2019 | MAR 31, 2018 | MAR 31, 2019 | MAR 31, 2018 | Neil J. Van Dyke-Vice Chairman | David S. Silverman - President & CEO | ||||||||||||||||||
Steven J. Bourgeois | Karyn J. Hale - Chief Financial Officer | |||||||||||||||||||||||
(3 months ended) | ||||||||||||||||||||||||
Dawn D. Bugbee | John H. Steel - Secretary | |||||||||||||||||||||||
Cash and Due from Banks | $ | 3,706 | $ | 3,328 | Interest Income | $ | 8,654 | $ | 7,571 | |||||||||||||||
John M. Goodrich | Kristy Adams Alfieri - Assistant Secretary | |||||||||||||||||||||||
Nancy C. Putnam | Jeffrey G. Coslett - Vice President | |||||||||||||||||||||||
Federal Funds Sold & Overnight Deposits | 22,886 | 9,918 | Interest Expense | 1,230 | 647 | Timothy W. Sargent | ||||||||||||||||||
Net Interest Income | 7,424 | 6,924 | David S. Silverman | |||||||||||||||||||||
Interest Bearing Deposits in Banks | 8,553 | 9,601 | John H. Steel | |||||||||||||||||||||
Provision for Loan Losses | 50 | — | Schuyler W. Sweet | |||||||||||||||||||||
Investment Securities | 80,135 | 68,942 | Net Interest Income After Provision for Loan Losses | 7,374 | 6,924 | Union Bank | REGIONAL ADVISORY BOARD MEMBERS | |||||||||||||||||
Loans Held for Sale | 5,647 | 2,938 | ||||||||||||||||||||||
Trust Income | 168 | 193 | DIRECTORS | |||||||||||||||||||||
Loans, net | 650,769 | 592,457 | Noninterest Income | 2,002 | 2,278 | Kenneth D. Gibbons-Chairman | Michael R. Barrett - St. Johnsbury | |||||||||||||||||
Neil J. Van Dyke-Vice Chairman | Steven J. Bourgeois - St. Albans | |||||||||||||||||||||||
Reserve for Loan Losses | (5,572 | ) | (5,405 | ) | Noninterest Expenses: | Joel S. Bourassa | Stanley T. Fillion - Northern NH | |||||||||||||||||
Salaries & Wages | 2,798 | 2,649 | Steven J. Bourgeois | Rosemary H. Gingue - St. Johnsbury | ||||||||||||||||||||
Premises and Equipment, net | 18,767 | 14,298 | Dawn D. Bugbee | John M. Goodrich - St. Johnsbury | ||||||||||||||||||||
John M. Goodrich | Christopher M. Knapp - Northern NH | |||||||||||||||||||||||
Accrued Interest & other Assets | 28,441 | 26,654 | Employee Benefits | 996 | 958 | Nancy C. Putnam | Coleen K. Kohaut - St. Albans | |||||||||||||||||
Timothy W. Sargent | Justin P. Lavely - St. Johnsbury | |||||||||||||||||||||||
Total Assets | $ | 813,332 | $ | 722,731 | Occupancy Expense, net | 438 | 395 | David S. Silverman | Daniel J. Luneau - St. Albans | |||||||||||||||
John H. Steel | Mary K. Parent - St. Johnsbury | |||||||||||||||||||||||
Equipment Expense | 565 | 535 | Schuyler W. Sweet | Samuel H. Ruggiano - St. Albans | ||||||||||||||||||||
David S. Silverman - All | ||||||||||||||||||||||||
Other Expenses | 1,727 | 1,598 | Schuyler W. Sweet - Northern NH | |||||||||||||||||||||
Union Bank Offices (ATMs at all Branch Locations) | ||||||||||||||||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY | MAR 31, 2019 | MAR 31, 2018 | Total | 6,524 | 6,135 | |||||||||||||||||||
Income Before Taxes | 3,020 | 3,260 | VERMONT | |||||||||||||||||||||
Noninterest Bearing Deposits | $ | 127,838 | $ | 128,951 | ||||||||||||||||||||
Berlin | 1028 US Route 302 | 802.476.0061 | ||||||||||||||||||||||
Interest Bearing Deposits | 425,897 | 392,027 | Income Tax Expense | 399 | 513 | Danville | 421 Route 2 East | 802.684.2211 | ||||||||||||||||
Fairfax | Jct. Routes 104 & 128 | 802.849.2600 | ||||||||||||||||||||||
Time Deposits | 146,638 | 102,865 | Net income | $ | 2,621 | $ | 2,747 | Hardwick | 103 VT Route 15 West | 802.472.8100 | ||||||||||||||
Jeffersonville | 5062 VT Route 15 | 802.644.6600 | ||||||||||||||||||||||
Borrowed Funds | 37,784 | 31,265 | Earnings per share | $ | 0.59 | $ | 0.62 | Johnson | 198 Lower Main Street | 802.635.6600 | ||||||||||||||
Lyndonville | 183 Depot Street | 802.626.3100 | ||||||||||||||||||||||
Accrued Interest & Other Liabilities | 8,444 | 8,459 | Book Value Per Share | $ | 14.94 | $ | 13.25 | Morrisville | 20 Lower Main Street | 802.888.6600 | ||||||||||||||
65 Northgate Plaza | 802.888.6860 | |||||||||||||||||||||||
Common Stock | 9,890 | 9,882 | St. Albans | 15 Mapleville Depot | 802.524.9000 | |||||||||||||||||||
St. Johnsbury | 364 Railroad Street | 802.748.3131 | ||||||||||||||||||||||
Additional Paid-in Capital | 967 | 803 | 325 Portland Street | 802.748.3121 | ||||||||||||||||||||
Retained Earnings | S. Burlington | Loan Center | ||||||||||||||||||||||
60,147 | 58,604 | 30 Kimball Avenue | 802.865.1000 | |||||||||||||||||||||
Accumulated Other Comprehensive Loss | (83 | ) | (6,046 | ) | Stowe | 47 Park Street | 802.253.6600 | |||||||||||||||||
NEW HAMPSHIRE | ||||||||||||||||||||||||
Treasury Stock at Cost | (4,190 | ) | (4,079 | ) | Groveton | 3 State Street | 603.636.1611 | |||||||||||||||||
Littleton | 263 Dells Road | 603.444.7136 | ||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 813,332 | $ | 722,731 | 76 Main Street | 603.444.5321 | ||||||||||||||||||
Standby letters of credit were $2,085,000 and $2,035,000 at March 31, 2019 and 2018, respectively. | Lincoln | 135 Main Street | 603.745.4000 | |||||||||||||||||||||
North Conway | Commercial Loan Center | |||||||||||||||||||||||
2541 White Mountain Hwy | 603.662.9408 | |||||||||||||||||||||||
N. Woodstock | 155 Main Street | 603.745.2488 | ||||||||||||||||||||||