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| November 2, 2023 | ||||||||||||||||||||||||||
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We are pleased to inform you of Union Bankshares, Inc’s financial results for the third quarter of 2023. Consolidated net income for the three months ended September 30, 2023, was $2.5 million, or $0.56 per share, compared to $3.8 million, or $0.84 cents per share, for the same period in 2022, and $8.2 million, or $1.82 per share, for the nine months ended September 30, 2023, compared to $9.2 million, or $2.04 per share for the same period in 2022. Total assets were $1.4 billion as of September 30, 2023, compared to $1.3 billion as of September 30, 2022, an increase of $95.3 million, or 7.3%. Asset growth was primarily driven by loans. Total loans outstanding as of September 30, 2023, were $1.0 billion, which included $6.5 million in loans held for sale, compared to $942.5 million as of September 30, 2022, with $3.1 million in loans held for sale. Total deposits were $1.22 billion as of September 30, 2023, and include $153.0 million of purchased brokered deposits compared to deposits of $1.20 billion as of September 30, 2022, with $32.0 million of purchased deposits. Also, advances from the Federal Home Loan Bank totaling $90.7 million were outstanding as of September 30, 2023, compared to $25.0 million outstanding as of September 30, 2022. Third quarter and year-to-date results were impacted by a challenging interest rate environment where sharp increases in short-term rates of over 5% have driven funding costs higher. The Company has had to respond to customer expectations of higher rates on deposit accounts while being burdened by increased costs of wholesale funding required due to the industry-wide outflow of deposits as customers have spent or re-allocated excess liquidity they had been holding in the bank. The Company continues to focus on gathering deposits, optimization of the net interest margin, and maintaining strong asset quality. The Company’s financial position remains strong, supported by a diverse deposit base, a strong | liquidity position, excellent asset quality, and regulatory capital in excess of all required levels. As was previously reported, the bank’s Jeffersonville and Johnson branch offices suffered flood damage during extreme weather in July of this year. The Jeffersonville branch has been completely restored and is operational while we are choosing to take this opportunity to upgrade the Johnson facility to improve customer access, as well as operational and energy efficiency. While customers and our community have lingering impacts from the extensive flooding, the Company has not suffered material financial impacts. Some Vermont communities, notably our capital city Montpelier, will require years to fully recover. The bank opened a commercial loan production office in North Conway, New Hampshire in 2019. Since that time, we have originated approximately $115 million in commercial loans in the White Mountain Valley region. This success has encouraged management to develop a full-service banking office to support the loan origination side of the business with deposit services. We will be opening a new full-service bank branch located on the North-South Road in North Conway towards the end of October 2023. Management and the Board are excited by the possibilities the new office brings. We view the North Conway branch and other recent branch expansions as investments in the future of your company The Board of Directors declared a cash dividend of $0.36 per share for the quarter payable November 2, 2023, to shareholders of record as of October 28, 2023. | |||||||||||||||||||||||||
 | 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 | ||||||||||||||||||||||||||
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| 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 | ||||||||||||||||||||||||||
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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. | ||||||||||||||||||||||||||
