UNION BANKSHARES INC
For the period ended Jun 30, 2025. Filed Aug 13, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 13, 2025
UNB$22.96+0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-14.
0000706863-25-000060
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-13.
0000706863-25-000094
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 149 previous paragraphs and 160 current paragraphs.
67 unchanged; 75 reworded; 13 added; 5 removed; 2 previous and 5 current paragraphs rearranged.
Tables are not compared: 16 previous and 17 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
The financial trends for the three and six months ended June 30, 2025 indicate a positive trajectory for the Company. Net interest income, the largest component of net income, saw an increase due to higher interest earned on average earning assets and an increase in average loan volume. Interest expense also rose, primarily driven by higher rates on customer deposits and increased utilization of wholesale funding. The net interest spread and net interest margin both improved, reflecting the overall positive impact of these changes. Additionally, noninterest income experienced growth in wealth management income and net gains on sales of loans held for sale, although this was partially offset by decreases in service fees and income from company-owned life insurance. Noninterest expenses increased, particularly in salaries, wages, and employee benefits, due to annual salary adjustments and higher medical and dental plan premiums. Overall, the Company's financial performance showed robust growth and improved profitability. For further discussion see Results of Operations on page 28.
Current report
Consolidated net income increased $460 thousand, or 10.4%, to $4.9 million for the six months ended June 30, 2025 compared to $4.4 million for the six months ended June 30, 2024. This increase was due to an increase in net interest income of $2.2 million, partially offset by increases in noninterest expenses of $1.3 million, credit loss expense of $298 thousand and income tax expense of $26 thousand, and a decrease of $133 thousand in noninterest income.
Current report
On May 20, 2025, the Company and Union entered into an Equity Distribution Agreement with Piper Sandler & Co., as sales agent, pursuant to which the Company may sell from time to time shares of the Company's common stock, par value $2.00, having an aggregate gross sale price of up to $40,000,000. Sales of common stock under the Equity Distribution Agreement may be made in any transactions that are deemed to be "at-the-market offerings" as defined in Rule 415(a)(4) under the Securities Act of 1933, as amended (the "Securities Act") or, subject to the Company's consent, in privately negotiated transactions. The shares offered and sold in the offering have been registered by the Company under the Securities Act. During the three and six months ended June 30, 2025, the Company issued 8,437 shares for aggregate gross sale proceeds of $280
Current report
Union Bankshares, Inc. Page 27 thousand, at an average gross sale price of $33.14 per share, which yielded net proceeds to the Company of $52 thousand, after issuance costs, including sales commissions equal to 3% of gross sale proceeds. As of June 30, 2025, approximately $39.7 million remains available for issuance under the offering.
Current report
Union Bankshares, Inc. Page 28 increased $100.7 million between periods and the average yield on average earning assets increased 26 bps to 5.10% for the three months ended June 30, 2025 compared to 4.84% for the three months ended June 30, 2024.
Current report
Interest income on loans increased $2.0 million between the three month comparison periods due to an increase in the average volume of loans outstanding of $117.7 million and an increase of 14 bps in the average yield. Interest income on loans increased $140 thousand and $445 thousand during the three months ended June 30, 2025 and 2024, respectively, due to recovery of interest from the payoff of loans that previously had been in nonaccrual. This accounted for 5 bps and 17 bps of the increase in the average loan yield for the three months ended June 30, 2025 and 2024, respectively.
Current report
Net interest income was $20.7 million, on a fully tax equivalent basis for the six months ended June 30, 2025 compared to $18.5 million for the six months ended June 30, 2024, an increase of $2.2 million, or 12.0%. The average volume of earning assets increased $102.6 million and the average yield on earning assets increased 36 bps to 5.08% compared to 4.72% for the comparison period. Average loans increased $124.7 million, or 12.0%, to $1.2 billion for the six months ended June 30, 2025. The increase in average loan volume and the increase of 27 bps in the average loan yield resulted in a $4.7 million increase in interest income on loans between periods.
Current report
The average balance of the investment portfolio decreased $14.0 million while the average yield on the portfolio increased by 29 bps, resulting in an increase in interest income on investment securities of $308 thousand between the six month comparison periods. As noted above, the increases in the average yield and interest income were a direct result of the balance sheet repositioning completed in the third quarter of 2024.
Current report
The average balance of interest bearing liabilities increased $105.2 million between the six months comparison periods, primarily due to an increase in borrowed funds and interest bearing nonmaturity deposits. The average cost of funds increased 23 bps to 2.66% for the six months ended June 30, 2025 compared to 2.43% for the six months ended June 30, 2024 due to continued customer expectation of higher rates on deposit accounts along with utilization of wholesale funding at rates higher than deposit rates. Interest expense increased $2.6 million, to $16.3 million for the six months ended June 30, 2025, compared to $13.7 million for the six months ended June 30, 2024.
Current report
•Service fees. Service fees decreased $20 thousand and $25 thousand for the three and six months ended June 30, 2025, respectively, primarily due to decreases in merchant program fees, ATM and debit card network fees, and overdraft fees, partially offset by an increase in loan servicing fees.
Current report
•Income from Company-owned life insurance. Death benefit proceeds of $235 thousand were received in the second quarter of 2024 that were not received during the same period in 2025.
Current report
June 30th marks the end of the fiscal year for the majority of the Company's municipal customers, including school districts, and several customers are required to reduce their outstanding short term debts to zero for at least one day during their fiscal year. The one day requirement traditionally occurs annually on June 30th and as a result the Company experiences a decrease in outstanding municipal loan balances. In many cases monies are transferred from corresponding deposit accounts to pay off these debts so the Company experiences a corresponding decrease in deposit balances as well. These cyclical decreases are short term in nature as the loans and deposits for the next municipal fiscal year are recorded within the first few days of July. The Company recorded $66.4 million in new municipal loans during the first few days of July 2025.
Current report
On May 20, 2025, the Company and Union entered into an Equity Distribution Agreement with Piper Sandler & Co., as sales agent, pursuant to which the Company may sell from time to time shares of the Company's common stock, par value $2.00, having an aggregate gross sale price of up to $40,000,000. Sales of common stock under the Equity Distribution Agreement may be made in any transactions that are deemed to be "at-the-market offerings" as defined in Rule 415(a)(4) under the Securities Act, or subject to the Company's consent, in privately negotiated transactions. The shares offered and sold in the offering have been registered by the Company under the Securities Act. During the three and six months ended June 30, 2025, the Company issued 8,437 shares for aggregate gross sale proceeds of $280 thousand, at an average gross sale price of $33.14 per share, which yielded net proceeds to the Company of $52 thousand, after issuance costs, including sales commissions equal to 3% of gross sale proceeds. As of June 30, 2025, approximately $39.7 million remains available for issuance under the offering.
Removed paragraphs (5)
Previous report
The Company's total capital increased to $70.1 million at March 31, 2025 from $66.5 million at December 31, 2024. This increase primarily reflects an improvement of $2.6 million in accumulated other comprehensive loss due to an increase in the fair market value of the Company's AFS investment securities, net income of $2.5 million for the first three months of 2025, partially offset by regular cash dividends declared of $1.6 million. (See Capital Resources on page 39.) These changes also resulted in an increase in the Company's book value per share to $15.44 at March 31, 2025 from $14.65 at December 31, 2024.
Previous report
•Legal expense. The $21 thousand increase in legal expense between periods primarily relates to an increase in loan collection legal expenses during the first quarter of 2025 compared to 2024.
Previous report
•Training and development. The cost associated with attending conferences and educational events during 2025 decreased $22 thousand compared to events attended in 2024.
Previous report
Union Bankshares, Inc. Page 38
Previous report
Union Bankshares, Inc. Page 39
Reworded paragraphs (75)
Previous wording
The following discussion and analysis focuses on those factors that, in management's view, had a material effect on the financial position of the Company as of March 31, 2025 and December 31, 2024, and its results of operations for the three months ended March 31, 2025 and 2024. This discussion is being presented to provide a narrative explanation of the consolidated financial statements and should be read in conjunction with the consolidated financial statements and related notes and with other financial data appearing elsewhere in this filing and with the Company's 2024 Annual Report. In the opinion of the Company's management, the interim unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments and disclosures necessary to fairly present the Company's consolidated financial position and results of operations for the interim periods presented. Management is not aware of the occurrence of any events after March 31, 2025 which would materially affect the information presented.
Current wording
The following discussion and analysis focuses on those factors that, in management's view, had a material effect on the financial position of the Company as of June 30, 2025 and December 31, 2024, and its results of operations for the three and six months ended June 30, 2025 and 2024. This discussion is being presented to provide a narrative explanation of the consolidated financial statements and should be read in conjunction with the consolidated financial statements and related notes and with other financial data appearing elsewhere in this filing and with the Company's 2024 Annual Report. In the opinion of the Company's management, the interim unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments and disclosures necessary to fairly present the Company's consolidated financial position and results of operations for the interim periods presented. Management is not aware of the occurrence of any events after June 30, 2025 which would materially affect the information presented.
Previous wording
In addition to the uncertainties detailed in the Company's 2024 Annual Report, the banking industry continues to be faced with an inverted yield curve, unrealized securities losses, and higher funding costs.
Current wording
In addition to the uncertainties detailed above and in the Company's 2024 Annual Report, the banking industry continues to be faced with an inverted yield curve, unrealized securities losses, and higher funding costs.
Previous wording
When evaluating forward-looking statements to make decisions about the Company and our stock, investors and others are cautioned to consider these and other risks and uncertainties, and are reminded not to place undue reliance on such statements. Investors should not consider the foregoing list of factors to be a complete list of risks or uncertainties. Forward-looking statements speak only as of the date they are made and the Company undertakes no obligation to update them to reflect new or changed information or events, except as may be required by federal securities laws.
Current wording
When evaluating forward-looking statements to make decisions about the Company and our stock, investors and others are cautioned to consider these and other risks and uncertainties, and are reminded not to place undue reliance on such statements. Investors should not consider the factors referred to above or described in the Company's 2024 Annual Report to be a complete list of the risks or uncertainties that may affect the Company. Forward-looking statements speak only as of the date they are made and the Company undertakes no obligation to update them to reflect new or changed information or events, except as may be required by federal securities laws.
Previous wording
Under SEC Regulation G, public companies making disclosures containing financial measures that are not in accordance with GAAP must also disclose, along with each non-GAAP financial measure, certain additional information, including a reconciliation of the non-GAAP financial measure to the closest comparable GAAP financial measure, as well as a statement of the company’s reasons for utilizing the non-GAAP financial measure. The SEC has exempted from the definition of non-GAAP
Current wording
Under SEC Regulation G, public companies making disclosures containing financial measures that are not in accordance with GAAP must also disclose, along with each non-GAAP financial measure, certain additional information, including a reconciliation of the non-GAAP financial measure to the closest comparable GAAP financial measure, as well as a statement of
Previous wording
Union Bankshares, Inc. Page 24 financial measures certain commonly used financial measures that are not based on GAAP. However, two non-GAAP financial measures commonly used by financial institutions, namely tax-equivalent net interest income and tax-equivalent net interest margin (as presented in the tables in the section labeled Yields Earned and Rates Paid), have not been specifically exempted by the SEC, and may therefore constitute non-GAAP financial measures under Regulation G. We are unable to state with certainty whether the SEC would regard those measures as subject to Regulation G. Management believes that these non-GAAP financial measures are useful in evaluating the Company’s financial performance and facilitate comparisons with the performance of other financial institutions. However, that information should be considered supplemental in nature and not as a substitute for related financial information prepared in accordance with GAAP.
Current wording
Union Bankshares, Inc. Page 26 the company’s reasons for utilizing the non-GAAP financial measure. The SEC has exempted from the definition of non-GAAP financial measures certain commonly used financial measures that are not based on GAAP. However, two non-GAAP financial measures commonly used by financial institutions, namely tax-equivalent net interest income and tax-equivalent net interest margin (as presented in the tables in the section labeled Yields Earned and Rates Paid), have not been specifically exempted by the SEC, and may therefore constitute non-GAAP financial measures under Regulation G. We are unable to state with certainty whether the SEC would regard those measures as subject to Regulation G. Management believes that these non-GAAP financial measures are useful in evaluating the Company’s financial performance and facilitate comparisons with the performance of other financial institutions. However, that information should be considered supplemental in nature and not as a substitute for related financial information prepared in accordance with GAAP.
Previous wording
Consolidated net income increased $84 thousand, or 3.5%, to $2.5 million for the first quarter of 2025 compared to $2.4 million for the first quarter of 2024. The increase in net income was due to the combined effects of a $1.26 million increase in net interest income and a decrease of $15 thousand in income tax expense, partially offset by increases of $601 thousand in noninterest expenses and $465 thousand in credit loss expense, and a decrease of $127 thousand in noninterest income.
Current wording
Consolidated net income increased $376 thousand, or 18.6%, to $2.4 million for the second quarter of 2025 compared to $2.0 million for the second quarter of 2024. The increase in net income was due to the combined effects of a $962 thousand increase in net interest income and a decrease of $167 thousand in credit loss expense, partially offset by increases of $706 thousand in noninterest expenses and $41 thousand in income tax expense, and a decrease of $6 thousand in noninterest income.
Previous wording
At March 31, 2025, the Company had total consolidated assets of $1.52 billion, including gross loans and loans held for sale (total loans) of $1.17 billion, deposits of $1.18 billion, borrowed funds of $240.7 million, subordinated notes of $16.3 million and stockholders' equity of $70.1 million.
Current wording
At June 30, 2025, the Company had total consolidated assets of $1.48 billion, including gross loans and loans held for sale (total loans) of $1.11 billion, deposits of $1.10 billion, borrowed funds of $270.7 million, subordinated notes of $16.3 million and stockholders' equity of $71.3 million.
Previous wording
The current macroeconomic and geopolitical environment is subject to a number of uncertainties, including geopolitical conflicts, tariffs or changes in trade policies, capital markets volatility, and inflation. These and other factors may contribute to slower or negative economic growth and a challenging business environment for our customers. While we remain confident in the resilience and strength of our business and financial model, the current macroeconomic and geopolitical environment could negatively impact our financial condition and results of operations. For more information about these risks, please see “Part I, Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024.
Current wording
The current macroeconomic and geopolitical environment is subject to a number of uncertainties, including geopolitical conflicts, tariffs or changes in trade policies, capital markets volatility, and inflation. These and other factors may contribute to slower or negative economic growth and a challenging business environment for our customers. While we remain confident in the resilience and strength of our business and financial model, the current macroeconomic and geopolitical environment could negatively impact our financial condition and results of operations. For more information about these risks, please see “Part I, Item 1A. Risk Factors” in our 2024 Annual Report.
Previous wording
The following unaudited per share information and key ratios depict several measurements of performance or financial condition at or for the three months ended March 31, 2025 and 2024:
Current wording
The following unaudited per share information and key ratios depict several measurements of performance or financial condition at or for the three and six months ended June 30, 2025 and 2024:
Previous wording
(2)The ratio of tax equivalent net interest income to average earning assets. See page 28 for more information.
Current wording
(2)The ratio of tax equivalent net interest income to average earning assets. See pages 30 and 31 for more information.
Previous wording
(4)The difference between the average yield on earning assets and the average rate paid on interest bearing liabilities. See page 28 for more information.
Current wording
(4)The difference between the average yield on earning assets and the average rate paid on interest bearing liabilities. See pages 30 and 31 for more information.
Previous wording
Interest earned on average earning assets for the three months ended March 31, 2025 was $18.3 million compared to $15.6 million for the three months ended March 31, 2024, an increase of $2.7 million, or 17.1%. The average earning asset base increased $104.4 million between periods and the average yield on average earning assets increased 46 bps to 5.06% for the three months ended March 31, 2025 compared to 4.60% for the three months ended March 31, 2024.
Current wording
Interest earned on average earning assets for the three months ended June 30, 2025 was $18.7 million compared to $16.6 million for the three months ended June 30, 2024, an increase of $2.2 million, or 13.1%. The average earning asset base
Previous wording
The average yield on federal funds sold and overnight deposits decreased 188 bps and its related interest income also decreased by $291 thousand between the three month comparison periods due to a decrease in the average balance maintained in Union's master account at the FRB and a decrease in average rate paid on these balances. Interest income on investment securities increased $189 thousand between comparison periods due to an increase in the average yield of 33 bps despite a decrease in the average balance of the portfolio of $12.2 million. The reduction in volume of the portfolio between periods was primarily related to the previously disclosed balance sheet repositioning transaction in the third quarter of 2024, whereby $38.5 million of lower yielding AFS debt securities were sold and proceeds of $26.0 million were reinvested in higher yielding AFS debt securities. Interest income on loans increased $2.7 million between the three month comparison periods due to an increase in the average volume of loans outstanding of $131.5 million and an increase of 40 bps in the average yield.
Current wording
The average yield on federal funds sold and overnight deposits decreased 62 bps and its related interest income also decreased by $16 thousand between the three month comparison periods due to a decrease in the average rate paid on the balances maintained in Union's master account at the FRB. Interest income on investment securities increased $119 thousand between comparison periods due to an increase in the average yield of 26 bps, despite a decrease in the average balance of the portfolio of $15.8 million. The improvement in the average yield and interest income resulted from a balance sheet repositioning completed in the third quarter of 2024, in which the Company sold lower-yielding AFS debt securities at a loss and used the proceeds to purchase higher yielding AFS debt securities and fund loans.
Previous wording
Average interest bearing liabilities increased $108.0 million between the three month comparison periods primarily due to an increase in borrowed funds, partially offset by decreases in each of the deposit classes. The average rate paid on interest bearing liabilities increased 28 bps to 2.65% for the first quarter of 2025 compared to 2.37% for the first quarter of 2024. Interest expense increased $1.4 million, to $8.0 million for the three months ended March 31, 2025 compared to $6.6 million for the three months ended March 31, 2024. Interest expense on borrowed funds increased $1.2 million, or 100.8%, for the comparison periods due to an increase of $125.9 million in the average volume despite a decrease of 7 bps in the average rate paid. Higher rates paid on customer deposit accounts, despite lower balances, resulted in an increase in interest expense of $171 thousand, or 3.26%, between periods.
Current wording
Average interest bearing liabilities increased $102.4 million between the three month comparison periods primarily due to increases in average deposits and borrowed funds. The average rate paid on interest bearing liabilities increased 18 bps to 2.67% for the second quarter of 2025 compared to 2.49% for the second quarter of 2024. Interest expense increased $1.2 million, to $8.3 million for the three months ended June 30, 2025 compared to $7.1 million for the three months ended June 30, 2024. Interest expense on borrowed funds increased $482 thousand, or 23.6%, between periods due to an increase of $59.6 million in the average volume, despite a decrease of 27 bps in the average rate paid.
Previous wording
The net interest spread increased 18 bps to 2.41% for the first quarter of 2025, from 2.23% for the same period last year, reflecting the net effect of the 46 bps increase in the average yield earned on interest earning assets, which was partially offset by the 28 bps increase in the average rate paid on interest bearing liabilities between periods. The net interest margin increased 20 bps during the first quarter of 2025 compared to the same period last year as a result of the changes discussed above.
Current wording
The net interest spread increased 8 bps to 2.43% for the second quarter of 2025, from 2.35% for the same period last year, reflecting the net effect of the 26 bps increase in the average yield earned on interest earning assets, which was partially offset by the 18 bps increase in the average rate paid on interest bearing liabilities between periods. The net interest margin increased 8 bps during the second quarter of 2025 compared to the same period last year as a result of the changes discussed above.
Previous wording
Tax exempt interest income amounted to $1.7 million and $1.3 million for the three months ended March 31, 2025 and 2024, respectively. The following table presents the effect of tax exempt income on the calculation of net interest income, using a marginal federal corporate income tax rate of 21% for the 2025 and 2024 three month comparison periods:
Current wording
Tax exempt interest income amounted to $1.7 million and $1.3 million for the three months ended June 30, 2025 and 2024, respectively, and $3.5 million and $2.6 million for the six months ended June 30, 2025 and 2024, respectively. The following table presents the effect of tax exempt income on the calculation of net interest income, using a marginal federal corporate income tax rate of 21% for the 2025 and 2024 three and six month comparison periods:
Previous wording
Credit Loss Expense (Benefit). Credit loss expense or benefit is made up of credit loss expense on loans and credit loss expense on off-balance sheet credit exposures. Credit loss expense on loans results from net charge-offs, changes to the projected loss drivers, prepayment speeds, curtailments and time to recovery that the Company forecasted over the reasonable and supportable forecast periods and changes in the volume and mix of the loan portfolio. Credit loss expense on off-balance sheet credit exposures results from changes in outstanding commitments and changes in funding rates and assumed loss rates period over period. For further details, see FINANCIAL CONDITION -Allowance for Credit Losses on Loans and Commitments, Contingent Liabilities, and Off-Balance-Sheet Arrangements below.
Current wording
Credit Loss Expense. Credit loss expense or benefit is made up of credit loss expense on loans and credit loss expense on off-balance sheet credit exposures. Credit loss expense on loans results from net charge-offs, changes to the projected loss drivers, prepayment speeds, curtailments and time to recovery that the Company forecasted over the reasonable and supportable forecast periods and changes in the volume and mix of the loan portfolio. Credit loss expense on off-balance sheet credit exposures results from changes in outstanding commitments and changes in funding rates and assumed loss rates period over period. For
Previous wording
Noninterest Income. The following table sets forth the components of noninterest income and changes between the three month comparison periods of 2025 and 2024:
Current wording
Noninterest Income. The following table sets forth the components of noninterest income and changes between the three and six month comparison periods of 2025 and 2024:
Previous wording
The significant changes in noninterest income for the three months ended March 31, 2025 compared to the same period of 2024 are described below:
Current wording
The significant changes in noninterest income for the three and six months ended June 30, 2025 compared to the same periods of 2024 are described below:
Previous wording
•Net gains on sales of loans held for sale. Residential mortgage loans totaling $25.8 million were sold during the three months ended March 31, 2025 compared to sales of $21.7 million during the same period in 2024. The increase of $102 thousand in net gains on sales of loans reflects the higher sales volume and higher premiums obtained on sales in 2025.
Current wording
•Net gains on sales of loans held for sale. Residential mortgage loans totaling $31.0 million and $56.8 million were sold during the three and six months ended June 30, 2025, respectively, compared to sales of $19.3 million and $41.0 million during the same periods in 2024, respectively. The increases of $139 thousand and $241 thousand in net gains on sales of loans for the three and six month comparison periods, respectively, reflect the higher sales volume and higher premiums obtained on sales in 2025.
Previous wording
•Net (losses) gains on other investments. Participants in the 2020 Amended and Restated Nonqualified Excess Plan elect to defer receipt of current compensation from the Company or its subsidiary and select designated reference investments consisting of investment funds. The performance of those funds, over which the Company has no control, resulted in net losses of $35 thousand and net gains of $95 thousand for the three months ended March 31, 2025 and 2024, respectively.
Current wording
•Net gains on other investments. Participants in the 2020 Amended and Restated Nonqualified Excess Plan elect to defer receipt of current compensation from the Company or its subsidiary and select designated reference investments consisting of investment funds. The performance of those funds, over which the Company has no control, resulted in net gains of $119 thousand and $84 thousand for the three and six months ended June 30, 2025, respectively, and net gains of $33 thousand and $128 thousand for the three and six months ended June 30, 2024, respectively.
Previous wording
Noninterest Expenses. The following table sets forth the components of noninterest expenses and changes between the three month comparison periods ended March 31, 2025 and 2024:
Current wording
Noninterest Expenses. The following table sets forth the components of noninterest expenses and changes between the three and six month comparison periods of 2025 and 2024:
Previous wording
The significant changes in noninterest expenses for the three months ended March 31, 2025 compared to the same period in 2024 are described below:
Current wording
The significant changes in noninterest expenses for the three and six months ended June 30, 2025 compared to the same periods in 2024 are described below:
Previous wording
•Salaries and wages. Salaries and wages increased $358 thousand for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to annual salary adjustments for the 2025 fiscal year and to an increase of $60 thousand in the accrual related to the annual incentive plan payments to select officers of Union during the first quarter of 2025 compared to 2024.
Current wording
•Salaries and wages. Salaries and wages increased $311 thousand and $669 thousand for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024 primarily due to annual salary adjustments for the 2025 fiscal year, increases in adjustments and accruals for annual incentive plan payments, and the deferral of loan origination costs. In addition, the number of full time equivalent employees increased from 184 at June 30, 2024 to 193 as of June 30, 2025. Salaries and wages are reduced by deferred loan origination costs at the time of origination. Deferred loan origination costs reduced salaries and wages by $41 thousand for the three and six months ended June 30, 2025, compared to reductions of $105 thousand and $136 thousand for the three and six months ended June 30, 2024, respectively. The lower deferred loan origination costs for 2025 compared to 2024 is primarily attributable to loan origination levels.
Previous wording
•Employee benefits. Employee benefit expense increased $92 thousand for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to increases of $113 thousand in premium expense for the Company's medical and dental plans, $37 thousand in payroll taxes and $80 thousand in 401k contributions expense. These increases were partially offset by a decrease of $138 thousand in employee benefit expense related to the Company's deferred compensation plans.
Current wording
•Employee benefits. Employee benefit expense increased $340 thousand for the three months ended June 30, 2025 compared to the same period in 2024 primarily due to increases of $230 thousand in premium expense for the Company's medical and dental plans, $24 thousand in payroll taxes and $86 thousand in employee benefits related to the Company's deferred compensation plans. The increase of $432 thousand for the six months ended June 30, 2025 compared to the same period in 2024 was primarily due to increases of $343 thousand in premium expense for the Company's medical and dental plans, $61 thousand in payroll taxes and $79 thousand in 401k plan contribution expense. These increases were partially offset by a decrease of $51 thousand in employee benefit expense related to the Company's deferred compensation plans.
Previous wording
•Occupancy expense, net. The increase in occupancy expense is primarily due to increases in utilities and repair and maintenance expenses as a result of the winter conditions experienced during the three months ended March 31, 2025 compared to 2024.
Current wording
•Occupancy expense, net. The increase in occupancy expense for the six months ended June 30, 2025 is primarily due to increases in utilities and repair and maintenance expenses as a result of the winter conditions experienced during the first quarter of 2025 compared to 2024. In addition, real restate tax expense increased $30 thousand between the six month comparison periods due to rate increases in the towns with branch locations.
Previous wording
•Equipment expense. Equipment expense increased between the three month comparison periods primarily due to an increase in software license and maintenance costs.
Current wording
•Equipment expense. Equipment expense increased between the three and six month comparison periods primarily due to an increase in software license and maintenance costs.
Previous wording
•FDIC insurance assessment. The FDIC insurance assessment increased by $96 thousand between the three month comparison periods due to an increase in the assessment rate as well as overall growth in net assets.
Current wording
•FDIC insurance assessment. The FDIC insurance assessment increased by $115 thousand and $211 thousand during the three and six month comparison periods, respectively, due to an increase in the assessment rate as well as overall growth in net average assets.
Previous wording
•ATM and debit card expense. During the first quarter of 2025, debit card contract incentive credits were received resulting in a decrease in expense for the three months ended March 31, 2025 compared to 2024.
Current wording
•ATM and debit card expense. During the first six months of 2025, debit card contract incentive credits were received resulting in a decrease in expense for the three and six months ended June 30, 2025 compared to 2024.
Previous wording
•Electronic banking expenses. The increase in electronic banking expense related to software initiatives that were implemented to the online banking platform in the fourth quarter of 2024.
Current wording
•Electronic banking expenses. The increase in electronic banking expenses during the three and six month periods of 2025 related primarily to software initiatives that were implemented to the online banking platform in the fourth quarter of 2024.
Previous wording
•Advertising and public relations. The decrease in advertising and public relations costs is primarily related to advertising campaigns and business development activities during the first quarter of 2024 that did not occur in 2025.
Current wording
•Advertising and public relations. The decrease in advertising and public relations costs is primarily related to advertising campaigns and business development activities during the first half of 2024 that did not recur in 2025.
Previous wording
•Donations. Charitable donations are made as part of the Company's on-going commitment to enhancing the economic vitality and social welfare of our communities. Donations decreased $125 thousand between comparison periods primarily due to contributions made during the first quarter of 2024 related to a state tax credit program to assist a local affordable housing project and local non-profit rehabilitation projects that did not recur in 2025.
Current wording
•Donations. Charitable donations are made as part of the Company's on-going commitment to enhancing the economic vitality and social welfare of our communities. Donations decreased between the six month comparison periods primarily due to contributions made during the first quarter of 2024 related to a state tax credit program to assist a local affordable housing project and local non-profit rehabilitation projects that did not recur in 2025.
Previous wording
•Amortization of MSRs, net. Income from MSRs is derived from servicing rights acquired through the sale of loans on which servicing is retained. Capitalized servicing rights are initially recorded at fair value and amortized in proportion to, and over the period of, the estimated future servicing period of the underlying loans. The amortization of MSRs exceeded new capitalized MSRs during both comparison periods, resulting in net expense of $16 thousand and $40 thousand for the three months ended March 31, 2025 and 2024, respectively.
Current wording
•Amortization of MSRs, net. Income from MSRs is derived from servicing rights acquired through the sale of loans on which servicing is retained. Capitalized servicing rights are initially recorded at fair value and amortized in proportion to, and over the period of, the estimated future servicing period of the underlying loans. The amortization of MSRs exceeded new capitalized MSRs during both comparison periods, which resulted in net expense $7 thousand and $23 thousand for the three and six months ended June 30, 2025, respectively, and $62 thousand and $102 thousand for the three and six months ended June 30, 2024, respectively.
Previous wording
Provision for Income Taxes. The Company has provided for current and deferred federal income taxes for the three months ended March 31, 2025 and 2024. The Company's net provision for income taxes was $150 thousand and $165 thousand for the three months ended March 31, 2025 and 2024, respectively. The Company's effective federal corporate income tax rate was 4.9% for the three months ended March 31, 2025, compared to 8.8% for the same period in 2024.
Current wording
Provision for Income Taxes. The Company has provided for current and deferred federal income taxes for the three and six months ended June 30, 2025 and 2024. The Company's net provision for income taxes was $102 thousand and $252 thousand for the three and six months ended June 30, 2025 respectively, compared to $61 thousand and $226 thousand for the same periods in 2024, respectively. The Company's effective federal corporate income tax rate was 4.4% and 4.6% for the three and six months ended June 30, 2025, respectively, compared to 2.9% and 6.2% for the same period in 2024, respectively.
Previous wording
Amortization expense related to limited partnership investments is included as a component of income tax expense and amounted to $452 thousand for the three months ended March 31, 2025 compared to $412 thousand for the same period in 2024. These investments provide tax benefits, including tax credits. Low income housing and rehabilitation tax credits with respect to limited partnership investments are also included as a component of income tax expense and amounted to $483 thousand for the three months ended March 31, 2025 and $450 thousand for the three months ended March 31, 2024.
Current wording
Amortization expense related to limited partnership investments is included as a component of income tax expense and amounted to $457 thousand and $909 thousand for the three and six months ended June 30, 2025, respectively, compared to $412 thousand and $824 thousand for the same periods in 2024, respectively. These investments provide tax benefits, including tax credits. Low income housing and rehabilitation tax credits with respect to limited partnership investments are also included as a component of income tax expense and amounted to $483 thousand and $966 thousand for the three and six months ended June 30, 2025, respectively, and $450 thousand and $900 thousand for the three and six months ended June 30, 2024, respectively.
Previous wording
At March 31, 2025, the Company had total consolidated assets of $1.52 billion, including gross loans and loans held for sale (total loans) of $1.17 billion, investment securities AFS of $247.9 million, deposits of $1.18 billion, borrowed funds of $240.7 million, subordinated notes of $16.3 million and stockholders' equity of $70.1 million. The Company’s total assets at March 31, 2025 decreased $3.5 million, or 0.2%, from $1.53 billion at December 31, 2024, and increased $107.2 million, or 7.6%, compared to March 31, 2024.
Current wording
At June 30, 2025, the Company had total consolidated assets of $1.48 billion, including gross loans and loans held for sale (total loans) of $1.11 billion, investment securities AFS of $240.5 million, deposits of $1.10 billion, borrowed funds of $270.7 million, subordinated notes of $16.3 million and stockholders' equity of $71.3 million. The Company’s total assets at June 30, 2025 decreased $48.0 million, or 3.1%, from $1.53 billion at December 31, 2024, and increased $81.9 million, or 5.9%, compared to June 30, 2024.
Previous wording
Federal funds sold and overnight deposits decreased $1.7 million, or 16.2%, to $8.9 million as of March 31, 2025, from $10.7 million at December 31, 2024.
Current wording
Federal funds sold and overnight deposits increased $13.9 million, or 130.0%, to $24.5 million as of June 30, 2025, from $10.7 million at December 31, 2024.
Previous wording
Net loans and loans held for sale increased $3.8 million, or 0.3%, to $1.16 billion, representing 76.0% of total assets at March 31, 2025, compared to $1.16 billion, or 75.6% of total assets at December 31, 2024. (See Loans Held for Sale and Loan Portfolio below.)
Current wording
Net loans and loans held for sale decreased $49.8 million, or 4.3%, to $1.11 billion, representing 74.7% of total assets at June 30, 2025, compared to $1.16 billion, or 75.6% of total assets at December 31, 2024. (See Loans Held for Sale and Loan Portfolio on page 36.)
Previous wording
Total deposits increased $12.5 million, or 1.1%, to $1.18 billion at March 31, 2025, from $1.17 billion at December 31, 2024. Noninterest bearing deposits increased by $6.5 million, or 2.9%, interest bearing deposits decreased by $32.0 million, or 4.5%, and time deposits increased by $38.0 million, or 16.6%. (See Deposits on page 36.)
Current wording
Total deposits decreased $65.5 million, or 5.6%, to $1.10 billion at June 30, 2025, from $1.17 billion at December 31, 2024. Noninterest bearing deposits decreased by $8.7 million, or 3.9%, interest bearing deposits decreased by $136.5 million, or 19.1%, and time deposits increased by $79.6 million, or 34.9%. (See Deposits on page 40.)
Previous wording
Borrowed funds consisted of FHLB advances of $240.7 million and $259.7 million at March 31, 2025 and December 31, 2024, respectively. (See Borrowings on page 37.)
Current wording
Borrowed funds consisted of FHLB advances of $270.7 million and $259.7 million at June 30, 2025 and December 31, 2024, respectively. (See Borrowings on page 41.)
Showing the first 40 of 75 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
The net interest spread increased 13 bps to 2.42% for the six months ended June 30, 2025, from 2.29% for the same period last year, reflecting the net effect of the 36 bps increase in the average yield earned on interest earning assets, which was only partially offset by the 23 bps increase in the average rate paid on interest bearing liabilities between periods. The net interest margin increased 14 bps for the six months ended June 30, 2025 compared to the same period last year as a result of the changes discussed above.
Current report — wording carried from elsewhere
Union Bankshares, Inc. Page 32 further details, see FINANCIAL CONDITION -Allowance for Credit Losses on Loans and Commitments, Contingent Liabilities, and Off-Balance-Sheet Arrangements below.
Current report — wording carried from elsewhere
Union Bankshares, Inc. Page 35 under the Company's at-the-market offering, and a $36 thousand increase due to the issuance of common stock under the DRIP, partially offset by cash dividends declared of $3.3 million. (See Capital Resources on page 43.)
Current report — wording carried from elsewhere
Union Bankshares, Inc. Page 42 certificate of deposit program with a broker, $25.1 million in purchased CDARS deposits, and no purchased ICS deposits or outstanding advances on the correspondent line.
Current report — wording carried from elsewhere
Company and Union must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company's and Union's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Allowance for Credit Losses on Loans. Some of the Company’s loan customers ultimately do not make all of their contractually scheduled payments, requiring the Company to charge off a portion or all of the remaining principal balance due. The Company maintains an ACL to absorb such losses. The level of the ACL on loans at March 31, 2025 represents
Previous report — wording carried elsewhere
Net unrealized losses in the Company’s AFS investment securities portfolio were $40.3 million as of March 31, 2025, compared to net unrealized losses of $43.6 million as of December 31, 2024. The Company’s Accumulated OCI component of stockholders’ equity at March 31, 2025 reflected cumulative net unrealized losses on investment securities of $31.4 million.