Exhibit 99.1
May 5, 2022 | ||||||||||||||||||||||||||
We are pleased to report our financial results for the first quarter of 2022. Consolidated net income for the first quarter was $2.5 million, or $0.55 per share compared to $2.9 million, or $0.64 cents per share, for the same period in 2021, a decrease of 13.7%. There were two primary reasons for the decrease in net income. As the SBA PPP program continues to run its course, outstanding balances of PPP loans have decreased due to forgiveness which has resulted in a reduction of fee income related to PPP loans of $381 thousand year over year. Second, gains on sales of real estate loans were sharply lower as long-term interest rates increased sharply in response to high inflation. Loans already in our pipeline with interest rates committed saw premiums reduced, causing management to elect to hold these loans in the portfolio rather than sustain losses on sales. This should be a temporary phenomenon as rates charged going forward are reflective of the current interest rate environment with interest rates stabilizing at new, higher levels. Asset quality remains strong as no provision for loan losses was recorded for the three months ended March 31, 2022, compared to $150 thousand for the comparable quarter in 2021. All our commercial borrowers have exited pandemic related payment modifications and all but four of our residential customers have done the same. Total assets were $1.2 billion as of March 31, 2022, compared to $1.1 billion as of March 31, 2021, an increase of $129.2 million, or 11.7%. Asset growth continued to be fueled by increases in customer deposits that were reinvested into investment securities and into our communities through loans to individuals, businesses, and municipalities. Investment securities reached $287.6 million on March 31, 2022, compared to $157.8 million on March 31, 2021. The $129.8 million increase was caused by using low yielding excess liquidity to purchase higher yielding investments, primarily US Government Agency mortgage-backed securities. Since the settlement of these purchases, interest rates increased rapidly resulting in unrealized losses of $22.1 million in the securities portfolio as of March 31, 2022. The offset to recording the unrealized losses was an increase in deferred taxes included in other assets and | accumulated comprehensive losses of $17.5 million included in total equity. The Company had total equity capital of $69.4 million and a book value per share of $15.45 as of March 31, 2022, compared to $79.8 million and $17.81 per share as of March 31, 2021. The reduction in book value per share is the result of the unrealized loss on the investment portfolio and does not impact regulatory capital ratios. Total loans outstanding as of March 31, 2022, were $831.0 million compared to $841.7 million as of March 31, 2021. The decrease in total loans was due to a reduction in pandemic related SBA PPP loans of $70.4 million and a reduction in $10.8 million in municipal loans. The pandemic related SBA PPP loans were designed to be short term in nature and have been forgiven in accordance with the PPP program. These decreases were partially offset by increases of $40.3 million in commercial real estate loans and $29.9 million in residential loans. Excluding SBA PPP loans forgiven, loan growth quarter over quarter was 7.8%. We live in interesting times. Inflation is higher than it has been in decades, causing pain at the fuel pump and grocery stores. Russia has invaded Ukraine, causing senseless human carnage with more to come, sadly. The Federal Reserve meets on May 3rd and 4th, surely bringing us higher short term interest rates with hopes of a soft economic landing. Supply chains remain challenged, as do labor and housing markets. Yet here in Northern New England we anxiously await spring and its green leaves and flowers with another excellent maple season wrapped up. Despite the current uncertainty, we are confident facing the future and what it brings. We are pleased to announce that the Board of Directors declared a cash dividend of $0.35 per share for the quarter payable May 5, 2022, to shareholders of record as of April 30, 2022. 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 18 banking offices, three 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 130 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. Union Bank has received an "Outstanding" rating for its compliance with the Community Reinvestment Act (CRA). An institution in this group has an excellent record of helping to meet the credit needs of its assessment area, particularly in low-and moderate income neighborhoods, in a manner consistent with its resources and capabilities. | ||||||||||||||||||||||||||
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 | March 31, 2022 | March 31, 2021 | March 31, 2022 | March 31, 2021 | March 31, 2022 | Timothy W. Sargent-Vice Chair | David S. Silverman - President & CEO | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Joel S. Bourassa | Jeffrey G. Coslett- Vice President | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(3 months ended) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dawn D. Bugbee | Karyn J. Hale - Chief Financial Officer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Due from Banks | $ | 5,047 | $ | 4,684 | Interest Income | $ | 9,726 | $ | 9,500 | ||||||||||||||||||||||||||||||||||||||||||||||||||
John M. Goodrich | John H. Steel - Secretary | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nancy C. Putnam | Kristy Adams Alfieri - Assistant Secretary | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal Funds Sold & Overnight Deposits | 45,755 | 51,822 | Interest Expense | 763 | 1,101 | Gregory D. Sargent | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Interest Income | 8,963 | 8,399 | David S. Silverman | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Bearing Deposits in Banks | 14,192 | 14,691 | John H. Steel | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for Loan Losses | — | 150 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | 273,423 | 143,063 | Net Interest Income After Provision for Loan Losses | 8,963 | 8,249 | Union Bank | REGIONAL ADVISORY BOARD MEMBERS | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Held for Sale | 2,349 | 40,212 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trust Income | 209 | 185 | DIRECTORS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, net | 828,614 | 801,489 | Noninterest Income | 1,846 | 2,436 | Neil J. Van Dyke -Chair | Michael R. Barrett - St. Johnsbury | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Timothy W. Sargent -Vice Chair | Steven J. Bourgeois - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reserve for Loan Losses | (8,336) | (8,429) | Noninterest Expenses: | Joel S. Bourassa | Andrew A. Dean - Northern NH | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Salaries & Wages | 3,410 | 3,083 | Dawn D. Bugbee | Stanley T. Fillion - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and Equipment, net | 21,320 | 19,882 | John M. Goodrich | Rosemary H. Gingue - St. Johnsbury | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefits | 1,305 | 1,169 | Mary K. Parent | John M. Goodrich - St. Johnsbury | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Interest & other Assets | 51,179 | 36,904 | Nancy C. Putnam | Christopher M. Knapp - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gregory D. Sargent | Coleen K. Kohaut - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Assets | $ | 1,233,543 | $ | 1,104,318 | Occupancy Expense, net | 527 | 477 | David S. Silverman | Justin P. Lavely - St. Johnsbury | ||||||||||||||||||||||||||||||||||||||||||||||||||
Janet P. Spitler | Daniel J. Luneau - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equipment Expense | 916 | 798 | John H. Steel | Mary K. Parent - St. Johnsbury | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Samuel H. Ruggiano - St. Albans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Christine A. Sheley - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY | March 31, 2022 | March 31, 2021 | Other Expenses | 1,956 | 1,926 | David S. Silverman - All | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Union Bank Offices (ATMs at all Branch Locations) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 8,114 | 7,453 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest Bearing Deposits | $ | 303,077 | $ | 231,992 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Before Taxes | 2,904 | 3,417 | VERMONT | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Bearing Deposits | 726,864 | 648,960 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Berlin | 1028 US Route 302 | 802.476.0061 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Time Deposits | 104,303 | 126,939 | Income Tax Expense | 422 | 541 | Fairfax | Jct. Routes 104 & 128 | 802.849.2600 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Hardwick | 103 VT Route 15 West | 802.472.8100 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowed Funds | — | 7,164 | Net income | $ | 2,482 | $ | 2,876 | Jeffersonville | 5062 VT Route 15 | 802.644.6600 | |||||||||||||||||||||||||||||||||||||||||||||||||
Jericho | 368 VT Route 15 | 802.899.7500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subordinated Debentures and Notes | 16,179 | — | Earnings per share | $ | 0.55 | $ | 0.64 | Johnson | 198 Lower Main Street | 802.635.6600 | |||||||||||||||||||||||||||||||||||||||||||||||||
Lyndonville | 183 Depot Street | 802.626.3100 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Interest & Other Liabilities | 13,703 | 9,440 | Book Value Per Share | $ | 15.45 | $ | 17.81 | Morrisville | 20 Lower Main Street | 802.888.6600 | |||||||||||||||||||||||||||||||||||||||||||||||||
65 Northgate Plaza | 802.888.6860 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | 9,937 | 9,911 | Shelburne | 5068 Shelburne Road | 802.985.0250 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
St. Albans | 15 Mapleville Depot | 802.524.9000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Paid-in Capital | 1,878 | 1,504 | St. Johnsbury | Operations and Loan Center | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retained Earnings | 364 Railroad Street | 802.748.3131 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
79,259 | 72,494 | Branch | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive (loss) Income | (17,426) | 81 | 325 Portland Street | 802.748.3121 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stowe | 47 Park Street | 802.253.6600 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Williston | Branch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury Stock at Cost | (4,231) | (4,167) | 31 Market St | 802.878.7900 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Center | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 1,233,543 | $ | 1,104,318 | 31 Market St | 802.865.1000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Standby letters of credit were $2,143,000 and $2,609,000 at March 31, 2022 and 2021, respectively. | NEW HAMPSHIRE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |