Exhibit 99.1
February 6, 2020 | |||||||||
We are pleased to report earnings for your company for the fourth quarter and year ended December 31, 2019. Net income was $2.8 million and $10.6 million for the three and twelve months ended December 31, 2019, resulting in earnings per share of $0.61 and $2.38 for the same periods, respectively. This compares to our highest earnings recorded in the past of $8.4 million for the year ended 2017. The company’s return on average assets was 1.30% and return on average equity was 15.63% for the year ended December 31, 2019. Total assets were $872.9 million as of December 31,2019, an increase of $67.6 million, or 8.4% for the year. Total loans were $678.7 million as of December 31, 2019, an increase of $32.4 million, or 5.0% for the year. The company’s investment portfolio increased from $74.0 million as of December 31, 2018 to $88.1 million as of December 31, 2019. Total deposits reached $744.0 million as of December 31, 2019, growth of $37.3 million, or 5.3%, compared to $706.8 million a year ago. The company had total capital of $71.8 million with a book value per share of $16.06 as of December 31, 2019 compared to $64.5 million and book value per share $14.44 as of December 31, 2018. 2019 was a year of investing in the future for your company. We have undertaken a strategy of growing through geographic expansion. Accordingly, we opened two branch offices in Chittenden County, Vermont during 2019. The first branch was in Jericho, Vermont. We had been considering an office in the Jericho/Underhill area for many years but had been unable to find a suitable location. When a location next to the Jericho Market became available we decided the time was right to make a move. The second branch we opened was in Williston, Vermont. We built a fairly substantial facility near Taft Corners that houses our new full-service branch as well as our Loan Center previously located in South Burlington in a leased facility. We have loan officers staffing both locations as we aim to build-upon our already | successful lending efforts in Chittenden County as well as developing a deposit business there. In addition to branch expansion, we have enhanced our ATM network through replacing some of our older machines as well as modifying some of our newer fleet to meet today’s feature and security standards. We have also deployed new personal computers and servers throughout our entire footprint, aiding our employees to remain efficient and to stay current with security standards. A new initiative in 2019 was developing a Sustainability Committee made up of employees who have an interest in Environmental Sustainability. This group meets regularly to discuss ways our company can lighten our environmental footprint. Thus far we have installed solar electric panels on our new Jericho and Williston offices, and are in the process of retrofitting two other offices which are well-positioned for solar electric generation. Our outlook for 2020 calls for a flat interest rate environment with a continued positive economy. We are hoping for more snow and better conditions to support winter sports enthusiasts and the industry that caters to them, an important part of our local economy. The Board of Directors also declared a cash dividend of $0.32 per share for the quarter, and increase of 3.2% from the cash dividend of $0.31 paid in recent prior quarters, payable February 6, 2020 to shareholders of record as of January 27, 2020. 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 | |||||||||
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 20 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 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. | |||||||||
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 | DEC 31, 2019 | DEC 31, 2018 | DEC 31, 2019 | DEC 31, 2018 | DEC 31, 2019 | DEC 31, 2018 | Timothy W. Sargent-Vice Chair | David S. Silverman - President & CEO | |||||||||||||||||||||||
Joel S. Bourassa | Jeffrey G. Coslett- Vice President | ||||||||||||||||||||||||||||||
(3 months ended) | (12 months ended) | ||||||||||||||||||||||||||||||
Steven J. Bourgeois | Karyn J. Hale - Chief Financial Officer | ||||||||||||||||||||||||||||||
Cash and Due from Banks | $ | 5,405 | $ | 4,045 | Interest Income | $ | 9,294 | $ | 8,571 | $ | 36,002 | $ | 32,180 | ||||||||||||||||||
Dawn D. Bugbee | John H. Steel - Secretary | ||||||||||||||||||||||||||||||
John M. Goodrich | Kristy Adams Alfieri - Assistant Secretary | ||||||||||||||||||||||||||||||
Federal Funds Sold & Overnight Deposits | 45,729 | 33,244 | Interest Expense | 1,488 | 1,117 | 5,616 | 3,581 | Nancy C. Putnam | |||||||||||||||||||||||
Net Interest Income | 7,806 | 7,454 | 30,386 | 28,599 | David S. Silverman | ||||||||||||||||||||||||||
Interest Bearing Deposits in Banks | 6,565 | 9,300 | John H. Steel | ||||||||||||||||||||||||||||
Provision for Loan Losses | 425 | 150 | 775 | 450 | Schuyler W. Sweet | ||||||||||||||||||||||||||
Investment Securities | 88,083 | 73,961 | Net Interest Income After Provision for Loan Losses | 7,381 | 7,304 | 29,611 | 28,149 | Union Bank | REGIONAL ADVISORY BOARD MEMBERS | ||||||||||||||||||||||
Loans Held for Sale | 7,442 | 2,899 | |||||||||||||||||||||||||||||
Trust Income | 173 | 172 | 692 | 751 | DIRECTORS | ||||||||||||||||||||||||||
Loans, net | 671,287 | 643,399 | Noninterest Income | 2,796 | 2,226 | 9,631 | 8,722 | Neil J. Van Dyke -Chair | Michael R. Barrett - St. Johnsbury | ||||||||||||||||||||||
Timothy W. Sargent -Vice Chair | Steven J. Bourgeois - St. Albans | ||||||||||||||||||||||||||||||
Reserve for Loan Losses | (6,122 | ) | (5,739 | ) | Noninterest Expenses: | Joel S. Bourassa | Stanley T. Fillion - Northern NH | ||||||||||||||||||||||||
Salaries & Wages | 3,048 | 2,740 | 11,821 | 10,748 | Steven J. Bourgeois | Rosemary H. Gingue - St. Johnsbury | |||||||||||||||||||||||||
Premises and Equipment, net | 20,923 | 16,073 | Pension Expense | — | 4,123 | — | 4,631 | Dawn D. Bugbee | John M. Goodrich - St. Johnsbury | ||||||||||||||||||||||
Employee Benefits | 1,097 | 862 | 4,194 | 3,653 | John M. Goodrich | Christopher M. Knapp - Northern NH | |||||||||||||||||||||||||
Accrued Interest & other Assets | 33,600 | 28,155 | Nancy C. Putnam | Coleen K. Kohaut - St. Albans | |||||||||||||||||||||||||||
David S. Silverman | Justin P. Lavely - St. Johnsbury | ||||||||||||||||||||||||||||||
Total Assets | $ | 872,912 | $ | 805,337 | Occupancy Expense, net | 519 | 378 | 1,806 | 1,447 | John H. Steel | Daniel J. Luneau - St. Albans | ||||||||||||||||||||
Schuyler W. Sweet | Mary K. Parent - St. Johnsbury | ||||||||||||||||||||||||||||||
Equipment Expense | 711 | 560 | 2,475 | 2,134 | Samuel H. Ruggiano - St. Albans | ||||||||||||||||||||||||||
Christine Sheley - Northern NH | |||||||||||||||||||||||||||||||
David S. Silverman - All | |||||||||||||||||||||||||||||||
Other Expenses | 1,760 | 1,614 | 7,160 | 6,585 | Schuyler W. Sweet - Northern NH | ||||||||||||||||||||||||||
Union Bank Offices (ATMs at all Branch Locations) | |||||||||||||||||||||||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY | DEC 31, 2019 | DEC 31, 2018 | Total | 7,135 | 10,277 | 27,456 | 29,198 | ||||||||||||||||||||||||
Income Before Taxes | 3,215 | (575 | ) | 12,478 | 8,424 | VERMONT | |||||||||||||||||||||||||
Noninterest Bearing Deposits | $ | 136,434 | $ | 132,971 | |||||||||||||||||||||||||||
Berlin | 1028 US Route 302 | 802.476.0061 | |||||||||||||||||||||||||||||
Interest Bearing Deposits | 458,940 | 444,722 | Income Tax Expense | 456 | (139 | ) | 1,830 | 1,352 | Danville | 421 Route 2 East | 802.684.2211 | ||||||||||||||||||||
Fairfax | Jct. Routes 104 & 128 | 802.849.2600 | |||||||||||||||||||||||||||||
Time Deposits | 148,653 | 129,077 | Net income | $ | 2,759 | $ | (436 | ) | $ | 10,648 | $ | 7,072 | Hardwick | 103 VT Route 15 West | 802.472.8100 | ||||||||||||||||
Jeffersonville | 5062 VT Route 15 | 802.644.6600 | |||||||||||||||||||||||||||||
Borrowed Funds | 47,164 | 27,821 | Earnings per share | $ | 0.61 | $ | (0.10 | ) | $ | 2.38 | $ | 1.58 | Jericho | 368 VT Route 15 | 802.899.7500 | ||||||||||||||||
Johnson | 198 Lower Main Street | 802.635.6600 | |||||||||||||||||||||||||||||
Accrued Interest & Other Liabilities | 9,878 | 6,255 | Book Value Per Share | $ | 16.06 | $ | 14.44 | Lyndonville | 183 Depot Street | 802.626.3100 | |||||||||||||||||||||
Morrisville | 20 Lower Main Street | 802.888.6600 | |||||||||||||||||||||||||||||
Common Stock | 9,897 | 9,888 | 65 Northgate Plaza | 802.888.6860 | |||||||||||||||||||||||||||
St. Albans | 15 Mapleville Depot | 802.524.9000 | |||||||||||||||||||||||||||||
Additional Paid-in Capital | 1,124 | 894 | St. Johnsbury | 364 Railroad Street | 802.748.3131 | ||||||||||||||||||||||||||
Retained Earnings | 325 Portland Street | 802.748.3121 | |||||||||||||||||||||||||||||
64,019 | 58,911 | Stowe | 47 Park Street | 802.253.6600 | |||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | 986 | (1,023 | ) | Williston | Branch | ||||||||||||||||||||||||||
31 Market St | 802.878.7900 | ||||||||||||||||||||||||||||||
Loan Center | |||||||||||||||||||||||||||||||
Treasury Stock at Cost | (4,183 | ) | (4,179 | ) | 31 Market St | 802.865.1000 | |||||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 872,912 | $ | 805,337 | NEW HAMPSHIRE | ||||||||||||||||||||||||||
Standby letters of credit were $2,308,000 and $2,331,000 at December 31, 2019 and 2018, respectively. | 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 | Commercial Loan Center | ||||||||||||||||||||||||||||||
2541 White Mountain Hwy | 603.662.9408 | ||||||||||||||||||||||||||||||
N. Woodstock | 155 Main Street | 603.745.2488 |