Exhibit 99.2
OFFICERS | |||||||||
Kristy Adams Alfieri - Assistant Vice President | |||||||||
DIRECTORS | Erica B. Antonucci - Assistant Vice President | ||||||||
Diana M. Ashley - Assistant Vice President | |||||||||
Kenneth D. Gibbons - Chairman | Danika E. Barry - Credit Administrative Officer | ||||||||
Neil J. Van Dyke - Vice Chairman | Rhonda L. Bennett - Vice President | ||||||||
Steven J. Bourgeois | Karen L. Blanchard Smith - Vice President | ||||||||
Dawn D. Bugbee | Judy R. Boulerice - Vice President | ||||||||
John M. Goodrich | Sherrie A. Bull - Vice President | ||||||||
Nancy C. Putnam | Lisa M. Charland - Assistant Vice President | ||||||||
Timothy W. Sargent | Stacey L.B. Chase - Vice President | ||||||||
David S. Silverman | Barbara J. Churchill - Assistant Vice President | ||||||||
John H. Steel | Everett C. Comstock - Assistant Vice President | ||||||||
Schuyler W. Sweet | Jeffrey G. Coslett - Senior Vice President | ||||||||
Jennifer M. Degree - Assistant Vice President | |||||||||
OFFICERS | Ronald C. Dion - Vice President | ||||||||
Charles W. Goldstein - Assistant Vice President | |||||||||
Kenneth D. Gibbons - Chairman | Don D. Goodhue - Vice President | ||||||||
David S. Silverman - President & CEO | Jonathan J. Gould - Senior Vice President | ||||||||
Karyn J. Hale - Chief Financial Officer | Melissa A. Greene - Vice President | ||||||||
John H. Steel - Secretary | Stacie W. Griffiths - Assistant Vice President | ||||||||
Kristy Adams Alfieri - Assistant Secretary | Paul E. Grogan - Assistant Vice President | ||||||||
Jeffrey G. Coslett - Vice President | Karyn J. Hale - Senior Vice President | ||||||||
Randy L. Hannett - Assistant Vice President | |||||||||
Robert D. Hofmann - Senior Vice President | |||||||||
Patricia N. Hogan - Senior Vice President | |||||||||
Lura L. Jacques - Vice President | |||||||||
DIRECTORS | Lynne P. Jewett - Vice President | ||||||||
Therese H. Johansson - Vice President | |||||||||
Kenneth D. Gibbons - Chairman | Stephen H. Kendall - Senior Vice President | ||||||||
Neil J. Van Dyke - Vice Chairman | Susan F. Lassiter - Vice President | ||||||||
Joel S. Bourassa | Edward L. Levite - Senior Loan Originator | ||||||||
Steven J. Bourgeois | Carrie R. Locklin - Vice President | ||||||||
Dawn D. Bugbee | Stacey M. Madden - Assistant Vice President | ||||||||
John M. Goodrich | Gretchen R. Maginnis - Assistant Vice President | ||||||||
Nancy C. Putnam | John L. Malm - Vice President | ||||||||
Timothy W. Sargent | Debra J. Marcoux - Accounting Officer | ||||||||
David S. Silverman | Robyn A. Masi - Vice President | ||||||||
John H. Steel | Jessica L. Miller - Assistant Vice President | ||||||||
Schuyler W. Sweet | Melynda J. Miller - Assistant Vice President | ||||||||
REGIONAL ADVISORY BOARD MEMBERS | Shane D. Mispel - Assistant Vice President | ||||||||
Samantha A. Norrie - Assistant Vice President | |||||||||
Tina L. Norton - Assistant Vice President | |||||||||
Michael R. Barrett - St. Johnsbury | Lisa M. Patch - Commercial Loan Administrative Officer | ||||||||
Steven J. Bourgeois - St. Albans | Susan J. Perry - Vice President | ||||||||
Stanley T. Fillion - Northern New Hampshire | Chandra L. Pollard - Assistant Vice President | ||||||||
Rosemary H. Gingue - St. Johnsbury | Bradley S. Prior - Assistant Vice President | ||||||||
John M. Goodrich - St. Johnsbury | Craig S. Provost - Vice President | ||||||||
Christopher M. Knapp - Northern New Hampshire | Mira M. Rainville- Assistant Vice President | ||||||||
Coleen K. Kohaut - St. Albans | Timothy M. Ross - Vice President | ||||||||
Justin P. Lavely - St. Johnsbury | David S. Silverman - President & CEO | ||||||||
Daniel J. Luneau - St. Albans | Abbie L. Small - Assistant Vice President | ||||||||
Mary K. Parent - St. Johnsbury | Curtis C. Swan - Vice President | ||||||||
Samuel H. Ruggiano - St. Albans | Carrie W. Tallman - Assistant Vice President | ||||||||
David S. Silverman - All | Linda M. Watson - Retail Credit Administrative Officer | ||||||||
Schuyler W. Sweet - Northern New Hampshire | Melyssa S. Whitcomb - Vice President | ||||||||
Suzanne M. Whitney - Marketing Officer | |||||||||
MAY 9, 2019 | ||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Balance Sheet Data | (Dollars in thousands, except per share data) | |||||||||||||||||||||
Overall, the directors and management are pleased with our 2018 financial performance, despite the one-time charge to earnings of $3.7 million, net of tax effect. Total assets reached a new record of $805.3 million as of December 31, 2018 representing growth of 8.0% compared to a year ago. We are pleased to provide you with additional highlights of our year ended December 31, 2018: • Total stockholders’s equity increased 9.9% to $64.5 million compared to December 31, 2017; • Book value per common share increased 9.9% to $14.44 as of December 31, 2018; • Increase in dividends paid per common share from $1.16 in 2017 to $1.20 in 2018. We have previously discussed the termination of our Defined Benefit Pension Plan (DBPP) in our quarterly shareholder letters. In 2012, the bank froze the DBPP, while also making significant enhancements to the company sponsored 401k plan. In November 2018, the plan was terminated and participants received their choice of life annuities or lump sum distributions. This removed the longtime potential pension benefit liability from the company’s balance sheet and eliminated related earnings volatility. Through strategic decisions coupled with opportunism we have worked on four geographic growth initiatives. In July 2018, we successfully transitioned our Barre loan office to a nearby full-service branch on US Route 302 in Berlin, Vermont. During 2017, the Board and management discussed and planned expanding our presence into Chittenden County, Vermont’s most populous county. We were able to identify two excellent sites in Jericho and Williston. Site selection, permitting, design and bidding took most of the year which led to breaking ground at both sites in the fall. We anticipate opening the Jericho office in a few weeks and the Williston Office in mid-July. The Williston facility will host a new branch as well as the residential and commercial lending staff currently located in South Burlington. We are very excited about these two new branch locations. | We have also been looking east and evaluating additional locations in New Hampshire. We identified the North Conway region as being a good fit for Union Bank. We were fortunate to recruit an experienced commercial lender with deep roots in the area and have opened a Loan Production Office on US Route 302 in North Conway. We are now working on recruiting a residential lender and eventually hope to open a full service branch. In 2018, we developed new advertising to exemplify the customer service that underpins the Union Bank brand. In addition to detailing what Union Bank means to commercial banking customers and to our capable employees, we featured the story of a first-time homebuyer and how our mortgage lending team helped make her dreams a reality. We effectively serve the full range of customer needs and as a result, more Vermonters choose us for their mortgage needs than any other bank. We are particularly proud to have again been recognized in 2018 as a leader in affordable housing lending. Both the advertising and the specifics on our affordable lending awards appear on our web homepage, www.UBLocal.com. We invite you to the 128th Annual Meeting of Union Bankshares, Inc. on Wednesday, May 15, 2019 at 3:00pm at the Charlmont Restaurant meeting room, located on Route 15 in Morrisville, Vermont. Along with normal business, the Board, employees and shareholders will have the occasion to mark Ken’s retirement from the board and his total of 35 years’ service to the bank. We will also hold a question and answer session followed by a reception. We always enjoy meeting and chatting with our shareholders and hope you will attend. | Total assets | $805,337 | $745,831 | $691,381 | $628,879 | ||||||||||||||||
Investment securities | 73,405 | 66,439 | 66,555 | 59,327 | ||||||||||||||||||
Loans and loans held for sale | 645,360 | 594,562 | 541,093 | 506,141 | ||||||||||||||||||
Allowance for loan losses | 5,739 | 5,408 | 5,247 | 5,201 | ||||||||||||||||||
Deposits | 706,770 | 647,574 | 597,660 | 560,408 | ||||||||||||||||||
Borrowed funds | 27,281 | 31,581 | 31,595 | 9,564 | ||||||||||||||||||
Stockholders' equity1 | 64,491 | 58,661 | 56,279 | 53,568 | ||||||||||||||||||
Income Statement Data | ||||||||||||||||||||||
Total interest and dividend income | $32,180 | $29,017 | $26,836 | $25,144 | ||||||||||||||||||
Total interest expense | (3,581 | ) | (2,255 | ) | (2,061 | ) | (2,025 | ) | ||||||||||||||
Net interest and dividend income | 28,599 | 26,762 | 24,775 | 23,119 | ||||||||||||||||||
Provision for loan losses | (450 | ) | (200 | ) | (150 | ) | (550 | ) | ||||||||||||||
Noninterest income | 9,473 | 9,395 | 10,140 | 9,792 | ||||||||||||||||||
Noninterest expenses | (29,363 | ) | (23,905 | ) | (23,656 | ) | (21,820 | ) | ||||||||||||||
Income before provision for income taxes | 8,259 | 12,052 | 11,109 | 10,541 | ||||||||||||||||||
Provision for income taxes | (1,187 | ) | (3,603 | ) | (2,598 | ) | (2,663 | ) | ||||||||||||||
Net income | $7,072 | $8,449 | $8,511 | $7,878 | ||||||||||||||||||
Per Common Share Data | ||||||||||||||||||||||
Net income2 | $1.58 | $1.89 | $1.91 | $1.77 | ||||||||||||||||||
Cash dividends paid | 1.20 | 1.16 | 1.11 | 1.08 | ||||||||||||||||||
Book value1 | 14.44 | 13.14 | 12.61 | 12.02 | ||||||||||||||||||
Weighted average number of shares outstanding | 4,465,675 | 4,462,192 | 4,459,001 | 4,458,037 | ||||||||||||||||||
Sincerely, | Number of shares outstanding | 4,466,679 | 4,465,576 | 4,462,135 | 4,457,177 | |||||||||||||||||
1Stockholders' equity includes unrealized gains or losses, net of applicable income taxes, on investment securities classified as "available-for-sale" and includes the unfunded liability for pension benefits, net of taxes for the defined benefit pension plan. | ||||||||||||||||||||||
Kenneth D. Gibbons | David S. Silverman | 2Computed using the weighted average number of shares outstanding for the period. | ||||||||||||||||||||
Chairman | President & CEO |
2018 Year In Review | 2018 Year In Review |