UNION BANKSHARES INC
For the period ended Mar 31, 2026. Filed May 8, 2026.
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.
Mar 31, 2026 · Filed May 8, 2026
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 2025-09-30; filed 2025-11-10.
0000706863-25-000103
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-08.
0000706863-26-000045
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 162 previous paragraphs and 148 current paragraphs.
58 unchanged; 73 reworded; 12 added; 24 removed; 7 previous and 5 current paragraphs rearranged.
Tables are not compared: 17 previous and 16 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 (12)
Current report
(6)The ratio of total capital to risk weighted assets is a regulatory capital measurement. See page 40 for more information.
Current report
Interest income, on a fully tax equivalent basis, on investment securities increased $984 thousand between the three month comparison periods due to an increase in the average yield of 66 bps and an increase in the average balance of the portfolio of $63.3 million. These increases are attributable in part to the strategic decision to position the investment portfolio for improved
Current report
Union Bankshares, Inc. Page 27 future cash flows and earnings with the purchase of approximately $75.0 million of investment securities AFS during the fourth quarter of 2025.
Current report
Interest income, on a fully tax equivalent basis, on loans increased $307 thousand between the three month comparison periods primarily due to an increase of $19.5 million in the average volume of loans outstanding and an overall increase of 1 bp in the average yield. Loan fee income was reduced by $94 thousand from the recognition of the remaining loan premiums originally paid on purchased residential loans that were paid off during the three months ended March 31, 2026, resulting in a reduction of 4 bps in the average loan yield for the three months ended March 31, 2026.
Current report
Interest expense increased $210 thousand, to $8.2 million for the three months ended March 31, 2026 compared to $8.0 million for the three months ended March 31, 2025. Average interest bearing liabilities increased $78.5 million between the three month comparison periods primarily due to an increase in average borrowed funds of $45.7 million and a $29.3 million increase in average interest bearing checking deposits related primarily to municipal account balances; reflecting funding to support asset growth. These increases were partially offset by lower interest expense on savings and money market accounts and time deposits, as declines in average rates and relatively stable balances mitigated overall funding cost pressures. The average rate paid on total interest bearing liabilities decreased 10 bps to 2.55% for the first quarter of 2026 compared to 2.65% for the first quarter of 2025 primarily due to changes in the funding mix.
Current report
Net interest income was $11.5 million, on a fully tax equivalent basis, for the three months ended March 31, 2026 compared to $10.5 million for the three months ended March 31, 2025, an increase of $1.0 million, or 9.6%, primarily attributable to higher average balances and improved yields on interest earning assets, partially offset by higher interest expense associated with increased funding balances. The net interest spread increased 16 bps to 2.57% for the first quarter of 2026, from 2.41% for the same period last year, while the net interest margin increased 11 bps to 2.99% from 2.88% over the same period, reflecting improved asset yields that outpaced increases in funding costs.
Current report
(5)Net interest spread is the tax equivalent average yield on average interest earning assets less the average rate paid on interest bearing liabilities.
Current report
(6)Net interest margin is the ratio of net interest income, on a tax equivalent basis, to average interest earning assets.
Current report
•Salaries and wages. Salaries and wages increased $486 thousand primarily due to annual salary adjustments for the 2026 fiscal year, a $121 thousand accrual adjustment for unused paid time off (PTO) outstanding as of March 31, 2026 related to a fourth quarter 2025 change in the PTO policy, and an increase of $82 thousand in the accrual related to the annual incentive plan payments to select officers of Union during the first quarter of 2026 compared to 2025.
Current report
•ATM and debit card expense. The increase of $45 thousand is primarily related to increased costs associated with debit card processing for the three months ended March 31, 2026 compared to 2025.
Current report
•Other expenses. Other expenses increased $79 thousand for the three months ended March 31, 2026 compared to the same period in 2025 due to increases in professional fees, board related expenses and other costs of employment primarily related to CEO succession expenses. There was also an $11 thousand increase in Vermont franchise taxes during the first quarter of 2026 compared to the same period in 2025.
Current report
The decrease in the allowance for credit losses on loans during the first quarter of 2026 compared to the first quarter of 2025 was primarily driven by changes in credit loss expense recognized during the periods. For the three months ended March 31, 2026, the Company recorded credit loss benefit of $340 thousand, compared to credit loss expense of $429 thousand for the same period in 2025, resulting in a lower ACL on loans balance at March 31, 2026. Reduction in the allowance for individually evaluated loans accounted for $164 thousand of the decrease in credit loss expense, while the remaining decrease reflected changes in the loan mix and updates to assumptions used in estimating expected credit losses for collectively evaluated loans at March 31, 2026 compared to March 31, 2025.
Removed paragraphs (24)
Previous report
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 report
Consolidated net income increased $2.6 million, or 44.7%, to $8.3 million for the nine months ended September 30, 2025 compared to $5.8 million for the nine months ended September 30, 2024. This increase was due to the non-reccurrence of the $1.3 million loss on sales of AFS debt securities discussed above, increases in net interest income of $4.0 million, and noninterest income of $319 thousand, partially offset by increases in noninterest expenses of $2.2 million, credit loss expense of $186 thousand and income tax expense of $563 thousand.
Previous report
Interest income, on a fully tax equivalent basis, on investment securities increased $152 thousand between the three month comparison periods due to an increase in the average yield of 27 bps, despite a decrease in the average balance of the portfolio of $7.0 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 report
Interest income, on a fully tax equivalent basis, on loans increased $1.8 million between the three month comparison periods due to an increase in the average volume of loans outstanding of $78.3 million and an increase of 22 bps in the average yield and due to recoveries of $421 thousand of interest from the payoff of loans that had previously been in nonaccrual, which accounted for 14 bps of the increase in the average loan yield between the three month comparison periods.
Previous report
Average interest bearing liabilities increased $70.7 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 decreased 6 bps to 2.57% for the third quarter of 2025 compared to 2.63% for the third quarter of 2024. Interest expense increased $290 thousand, to $8.1 million for the three months ended September 30, 2025 compared to $7.8 million for the three months ended September 30, 2024. Interest expense on borrowed funds increased $180 thousand, or 6.8%, between periods due to an increase of $28.3 million in the average volume, despite a decrease of 17 bps in the average rate paid.
Previous report
The net interest spread increased 36 bps to 2.58% for the third quarter of 2025, from 2.22% for the same period last year, reflecting the net effect of the 30 bps increase in the average yield earned on interest earning assets and a decrease of 6 bps in the average rate paid on interest bearing liabilities between periods. The net interest margin increased 32 bps during the third quarter of 2025 compared to the same period last year as a result of the changes discussed above.
Previous report
Net interest income was $32.6 million, on a fully tax equivalent basis, for the nine months ended September 30, 2025 compared to $28.6 million for the nine months ended September 30, 2024, an increase of $4.1 million, or 14.2%. The average volume of earning assets increased $91.2 million and the average yield on earning assets increased 33 bps to 5.10% compared to 4.77% for the comparison period. Average loans increased $109.1 million, or 10.3%, to $1.2 billion for the nine months ended September 30, 2025. The increase in average loan volume and the increase of 25 bps in the average loan yield resulted in a $6.7 million increase in interest income on loans between periods. Interest income on loans increased $563 thousand and $445 thousand during the nine months ended September 30, 2025 and 2024, respectively, due to recoveries of interest from the payoff of loans that had previously been in nonaccrual. This resulted in a 6 bps increase in the average loan yield for the nine months ended September 30, 2025 and 2024.
Previous report
The average balance of interest bearing liabilities increased $93.6 million between the nine month comparison periods, primarily due to an increase in borrowed funds and interest bearing deposits. The average cost of funds increased 13 bps to 2.63% for the nine months ended September 30, 2025 compared to 2.50% for the nine months ended September 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 $2.9 million, to $24.4 million for the nine months ended September 30, 2025, compared to $21.4 million for the nine months ended September 30, 2024.
Previous report
The net interest spread increased 20 bps to 2.47% for the nine months ended September 30, 2025, from 2.27% for the same period last year, reflecting the net effect of the 33 bps increase in the average yield earned on interest earning assets, partially offset by the 13 bps increase in the average rate paid on interest bearing liabilities between periods. The net interest margin increased 20 bps for the nine months ended September 30, 2025 compared to the same period last year as a result of the changes discussed above.
Previous report
•Income from Company-owned life insurance. Death benefit proceeds of $197 thousand were received during the three and nine months ended September 30, 2025 compared to death benefit proceeds of $235 thousand that were received in the second quarter of 2024.
Previous report
•Income from 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 increase in the volume of residential loan sales discussed above resulted in new capitalized MSRs that exceeded the amortization of MSRs by $83 thousand for the three and nine months ended September 30, 2025. The amortization of MSRs exceeded the new capitalized MSRs for
Previous report
Union Bankshares, Inc. Page 35 the 2024 comparison periods and the amortization expense is included in Other expenses in the consolidated statements of income.
Previous report
•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 $94 thousand and $178 thousand for the three and nine months ended September 30, 2025, respectively, and net gains of $83 thousand and $211 thousand for the three and nine months ended September 30, 2024, respectively.
Previous report
•Net losses on sales of investment securities AFS. During the third quarter of 2024, the Company completed a balance sheet repositioning related to its investment securities portfolio in which the sale of lower-yielding AFS debt securities resulted in a pre-tax realized loss on the sale of $1.3 million.
Previous report
•Salaries and wages. Salaries and wages increased $421 thousand and $1.1 million for the three and nine months ended September 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 189 at September 30, 2024 to 201 as of September 30, 2025. Salaries and wages are reduced by deferred loan origination costs at the time of origination. Deferred loan origination costs had a minimal impact on salaries and wages for the three months ended September 30, 2025, and reduced salaries and wages by $23 thousand for the nine months ended September 30, 2025, compared to reductions of $62 thousand and $198 thousand for the three and nine months ended September 30, 2024, respectively. The lower deferred loan origination costs for 2025 compared to 2024 is primarily attributable to loan origination levels.
Previous report
•Occupancy expense, net. The increase in occupancy expense for the three and nine months ended September 30, 2025 are primarily due to increases in utilities, repairs and maintenance, and depreciation expenses related to projects completed during 2025 compared to 2024. In addition, real estate tax expense increased $31 thousand between the nine month comparison periods due to rate increases in the towns with branch locations.
Previous report
•Professional fees. Professional fees increased $118 thousand and $127 thousand for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024 due to increases in engagement fees and additional consultants that were engaged to assist with employment searches and other consulting services in 2025.
Previous report
•FDIC insurance assessment. The FDIC insurance assessment increased by $113 thousand and $324 thousand during the three and nine month comparison periods, respectively, due to an increase in the assessment rate as well as overall growth in net average assets.
Previous report
•ATM and debit card expense. The increase between the three month comparison periods is primarily related to costs associated with a change in the servicing arrangement in place for the ATM machines. During the first half of 2025, debit card contract incentive credits were received, resulting in a decrease in expense for the nine months ended September 30, 2025 compared to 2024.
Previous report
•Electronic banking expenses. The increase in electronic banking expenses during the three and nine month periods of 2025 related primarily to software initiatives that were implemented to the online banking platform in the fourth quarter of 2024.
Previous report
•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 three and nine months ended September 30, 2025 primarily due to contributions made in 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 report
The Company's net provision for income taxes was $666 thousand for the nine months ended September 30, 2025, compared to $103 thousand for the same period in 2024, reflecting higher net income year over year. The Company's effective federal corporate income tax rate was 6.8% for the nine months ended September 30, 2025, compared to 2.9% for the same period in 2024.
Previous report
The Company sold $102.8 million of qualified residential real estate loans to the secondary market during the first nine months of 2025 compared to sales of $76.1 million during the first nine months of 2024. Residential mortgage loan origination activity was strong during the first nine months of 2025. Despite low housing inventory and higher interest rates, purchase activity in the Company's markets is stable, with continued construction loan activity.
Previous report
The increase in nonaccrual loans at September 30, 2025 primarily relates to a commercial construction loan that was placed in nonaccrual during the first quarter of 2025.
Reworded paragraphs (73)
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 September 30, 2025 and December 31, 2024, and its results of operations for the three and nine months ended September 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 September 30, 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 March 31, 2026 and December 31, 2025, and its results of operations for the three months ended March 31, 2026 and 2025. 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 2025 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, 2026 which would materially affect the information presented.
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 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
Previous wording
Union Bankshares, Inc. Page 28 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 25 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
The financial trends for the three and nine months ended September 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. In September 2025, the Federal Reserve reduced short-term interest rates by 25 bps; however, there was minimal impact on third quarter financial results from this rate reduction. Noninterest income experienced growth in wealth management income and net gains on sales of loans held for sale, partially offset by decreases in service fees. The increase in noninterest income between both the three and nine month comparison periods of 2025 and 2024 resulted primarily from the balance sheet repositioning in August, 2024 involving the sale of lower-yielding AFS debt securities with a book value of $38.5 million, resulting in a pre-tax realized loss on the sale of $1.3 million that did not recur in 2025. Noninterest expenses increased, particularly in salaries, wages, and employee benefits, due to annual salary adjustments, higher medical and dental plan premiums, and an increase in the number of full time employees. Overall, the Company's financial performance showed robust growth and improved profitability. For further discussion see Results of Operations on page 30.
Current wording
The financial trends for the three months ended March 31, 2026 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, primarily related to investment securities and an increase in average loan volume. During the second half of 2025, the Federal Reserve implemented a series of interest rate reductions and the impact of this change is reflected in the interest paid on savings, money market accounts and time deposits. Nevertheless, interest expense increased during the first quarter of 2026, primarily driven by higher rates on interest bearing checking accounts and increased utilization of wholesale funding in borrowed funds. The net interest spread and net interest margin both improved, reflecting the overall positive impact of these changes. Noninterest income experienced modest growth in wealth management income, service fees and other income, which partially offset increases in noninterest expenses between the three month comparison periods of 2026 and 2025. For further discussion see Results of Operations on page 27.
Previous wording
Consolidated net income increased $2.1 million, or 159.5%, to $3.4 million for the third quarter of 2025 compared to $1.3 million for the third quarter of 2024. The increase in net income was due to the combined effects of the non-reccurrence of the $1.3 million loss on sales of AFS debt securities discussed above, increases in net interest income of $1.7 million, and noninterest income of $452 thousand and a decrease of $112 thousand in credit loss expense, partially offset by increases of $934 thousand in noninterest expenses and $537 thousand in income tax expense.
Current wording
Consolidated net income increased $503 thousand, or 20.1%, to $3.0 million for the first quarter of 2026 compared to $2.5 million for the first quarter of 2025. The increase in net income was due to the combined effects of an increase in net interest income of $1.0 million, a decrease of $560 thousand in credit loss (benefit) expense, and an increase of $54 thousand in noninterest income, partially offset by increases of $958 thousand in noninterest expenses and $178 thousand in income tax expense.
Previous wording
At September 30, 2025, the Company had total consolidated assets of $1.57 billion, including gross loans and loans held for sale (total loans) of $1.18 billion, deposits of $1.19 billion, borrowed funds of $270.8 million, subordinated notes of $16.3 million and stockholders' equity of $77.7 million.
Current wording
At March 31, 2026, the Company had total consolidated assets of $1.63 billion, including gross loans and loans held for sale (total loans) of $1.18 billion, deposits of $1.20 billion, borrowed funds of $311.0 million, subordinated notes of $16.3 million and stockholders' equity of $80.6 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, the impact of federal government shutdowns, 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 risks the Company faces, please see “Part I, Item 1A. Risk Factors” in our 2024 Annual Report.
Current wording
The current macroeconomic and geopolitical environment is subject to a number of uncertainties, including geopolitical conflicts, tariffs and changes in trade policies, the impact of federal government shutdowns, 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 risks the Company faces, please see “Part I, Item 1A. Risk Factors” in our 2025 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 and nine months ended September 30, 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 months ended March 31, 2026 and 2025:
Previous wording
(2)The ratio of tax equivalent net interest income to average earning assets. See pages 32 and 33 for more information.
Current wording
(2)The ratio of tax equivalent net interest income to average earning assets. See page 29 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 pages 32 and 33 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 page 29 for more information.
Previous wording
(6)Cash dividends declared and paid per share divided by consolidated net income per share.
Current wording
(7)Cash dividends declared and paid per share divided by consolidated net income per share
Previous wording
Net Interest Income. The largest component of the Company’s operating income is net interest income, which is the difference between interest and dividend income received from earning assets and interest expense paid on interest bearing liabilities. Net interest income is affected by various factors including, but not limited to, changes in interest rates, loan and deposit pricing strategies, funding strategies, the volume and mix of interest earning assets and interest bearing liabilities, and the level of
Current wording
Net Interest Income. The largest component of the Company’s operating income is net interest income, which is the difference between interest and dividend income received from earning assets and interest expense paid on interest bearing liabilities. Net interest income is affected by various factors including, but not limited to, changes in interest rates, loan and deposit pricing strategies, funding strategies, the volume and mix of interest earning assets and interest bearing liabilities, and the level of nonperforming assets. Net interest margin is calculated as the net interest income on a fully tax equivalent basis as a percentage of average earning assets.
Previous wording
Interest earned, on a fully tax equivalent basis, on average earning assets for the three months ended September 30, 2025 was $19.4 million compared to $17.4 million for the three months ended September 30, 2024, an increase of $2.0 million, or 11.5%. The average earning asset base increased $68.7 million between periods and the average yield on average earning assets increased 30 bps to 5.15% for the three months ended September 30, 2025 compared to 4.85% for the three months ended September 30, 2024.
Current wording
Interest earned, on a fully tax equivalent basis, on average earning assets for the three months ended March 31, 2026 was $19.8 million compared to $18.6 million for the three months ended March 31, 2025, an increase of $1.2 million, or 6.6%. The average earning asset base increased $78.4 million between periods and the average yield on average earning assets increased 6 bps to 5.12% for the three months ended March 31, 2026 compared to 5.06% for the three months ended March 31, 2025.
Previous wording
Interest income on federal funds sold and overnight deposits decreased $277 thousand between the nine month comparison periods due to a decrease of 90 bps in the average yield and a decrease in the average balance maintained in Union's master account at the FRB. The average balance of the investment portfolio decreased $11.7 million while the average yield on the portfolio increased by 28 bps, resulting in an increase in interest income on investment securities of $415 thousand between the nine month comparison periods. As noted above, the increases in the average yield and interest income area attributable in part to the balance sheet repositioning completed in the third quarter of 2024.
Current wording
Interest income on federal funds sold and overnight deposits decreased $78 thousand between the three month comparison periods due to a decrease of 93 bps in the average yield and a decrease in the average balance maintained in Union's master account at the FRB.
Previous wording
The following tables show for the periods indicated the total amount of tax equivalent interest income recorded from average interest earning assets, the related average tax equivalent yields, the tax equivalent interest expense associated with average interest bearing liabilities, the related tax equivalent average rates paid, and the resulting tax equivalent net interest spread and margin.
Current wording
The following table shows for the periods indicated the total amount of tax equivalent interest income recorded from average interest earning assets, the related average tax equivalent yields, the tax equivalent interest expense associated with average interest bearing liabilities, the related tax equivalent average rates paid, and the resulting tax equivalent net interest spread and margin.
Previous wording
Tax exempt interest income amounted to $1.6 million for the three months ended September 30, 2025 and 2024, and $5.0 million and $4.2 million for the nine months ended September 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 three and nine month comparison periods of 2025 and 2024:
Current wording
Tax exempt interest income amounted to $1.6 million and $1.7 million for the three months ended March 31, 2026 and 2025, 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 three month comparison periods of 2026 and 2025:
Previous 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
Current wording
Credit Loss (Benefit) 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 further details, see FINANCIAL CONDITION -Allowance for Credit Losses on Loans on page 35 and Commitments, Contingent Liabilities, and Off-Balance-Sheet Arrangements on page 37.
Previous wording
Credit loss expense was made up of the following components for the following periods:
Current wording
Credit loss (benefit) expense was made up of the following components for the following periods:
Previous wording
Noninterest Income. The following table sets forth the components of noninterest income and changes between the three and nine 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 month comparison periods of 2026 and 2025:
Previous wording
The significant changes in noninterest income for the three and nine months ended September 30, 2025 compared to the same periods of 2024 are described below:
Current wording
The significant changes in noninterest income for the three months ended March 31, 2026 compared to the same period of 2025 are described below:
Previous wording
•Wealth management income. Wealth management income increased as managed fiduciary accounts grew between September 30, 2025 and 2024, as did the value of assets within those accounts.
Current wording
•Wealth management income. Wealth management income increased as managed fiduciary accounts grew between first quarter of 2026 and 2025, as did the value of assets within those accounts.
Previous wording
•Service fees. Service fees decreased $62 thousand and $87 thousand for the three and nine months ended September 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 wording
•Service fees. Service fees increased $29 thousand for the three months ended March 31, 2026 compared to the same period in 2025, primarily due to increases of $31 thousand in loan servicing income and $23 thousand overdraft fees, partially offset by decreases of $13 thousand in other service fees and $8 thousand in merchant program fees.
Previous wording
•Net gains on sales of loans held for sale. Residential mortgage loans totaling $46.0 million and $102.8 million were sold during the three and nine months ended September 30, 2025, respectively, compared to sales of $35.2 million and $76.1 million during the same periods in 2024, respectively. The increases of $160 thousand and $401 thousand in net gains on sales of loans for the three and nine month comparison periods, respectively, reflect 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 $24.1 million were sold during the three months ended March 31, 2026, compared to sales of $25.8 million during the same period in 2025. The decrease of $39 thousand in net gains on sales of loans reflects the lower sales volume and lower premiums obtained on sales in 2026.
Previous wording
•Other income. The Company received $117 thousand in prepayment penalties from the early payoff of loans during the first quarter of 2024 compared to $24 thousand of prepayment penalties received during the three and nine months ended September 30, 2025.
Current wording
•Other income. The Company received $19 thousand in prepayment penalties from the early payoff of loans during the first quarter of 2026 that were not received during the same period of 2025.
Previous wording
Noninterest Expenses. The following table sets forth the components of noninterest expenses and changes between the three and nine month comparison periods of 2025 and 2024:
Current wording
Noninterest Expenses. The following table sets forth the components of noninterest expenses and changes between the three month comparison periods of 2026 and 2025:
Previous wording
The significant changes in noninterest expenses for the three and nine months ended September 30, 2025 compared to the same periods in 2024 are described below:
Current wording
The significant changes in noninterest expenses for the three months ended March 31, 2026 compared to the same period in 2025 are described below:
Previous wording
•Employee benefits. Employee benefit expense decreased $116 thousand for the three months ended September 30, 2025 compared to the same period in 2024 primarily due to a decrease of $195 thousand in medical claims expense due to high-cost claimants reaching the stop loss limit, which reduced the claims required to be paid by the Company for the medical insurance plan. This decrease was partially offset by increases of $49 thousand in 401k plan contribution expense, $19 thousand in payroll taxes and $11 thousand in employee benefits related to the Company's deferred compensation plans. The increase of $316 thousand for the nine months ended September 30, 2025 compared to the same period in 2024 was primarily due to increases of $148 thousand in premium expense for the Company's medical and dental plans, $128
Current wording
•Employee benefits. Employee benefit expense increased $184 thousand for the three months ended March 31, 2026 compared to the same period in 2025 primarily due to increases of $109 thousand in premium expense for the Company's medical, disability and workers' compensation plans, $44 thousand in payroll taxes, $16 thousand in employee benefits related to the Company's deferred compensation plans and $14 thousand in 401k plan contribution expense.
Previous wording
•Equipment expense. Equipment expense increased between the three and nine month comparison periods primarily due to an increase in software license and maintenance costs.
Current wording
•Equipment expense. Equipment expense increased between the three month comparison periods primarily due to increases of $32 thousand in software license and maintenance costs and $35 thousand in depreciation related to equipment replacement purchases.
Previous wording
•Advertising and public relations. The increase in advertising and public relations costs is primarily related to a focus on advertising campaigns and business development activities during third quarter of 2025 and the increased costs of these campaigns and activities compared to 2024.
Current wording
•Advertising and public relations. Advertising and public relations costs increased $76 thousand primarily due to a continued focus on advertising campaigns and business development activities during first quarter of 2026 that did not occur in the same period of 2025.
Previous wording
Provision (Benefit) for Income Taxes. The Company has provided for current and deferred federal income taxes for the three and nine months ended September 30, 2025 and 2024. The Company's net provision for income taxes was $414 thousand for the three months ended September 30, 2025 compared to a net benefit for income taxes of $123 thousand for the same period in 2024, primarily related to the balance sheet repositioning transaction and the resulting income tax benefit of $284 thousand from the loss on the sale of AFS debt securities recorded in August 2024. This resulted in an effective federal corporate income tax rate of 9.8% for the three months ended September 30, 2025 compared to an effective federal corporate income tax benefit rate of 10.4% 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 months ended March 31, 2026 and 2025. The Company's net provision for income taxes was $328 thousand and $150 thousand for the three months ended March 31, 2026 and 2025, respectively. The Company's effective federal corporate income tax rate was 9.0% for the three months ended March 31, 2026, compared to 5.7% for the same period in 2025.
Previous wording
Amortization expense related to limited partnership investments is included as a component of income tax expense and amounted to $457 thousand and $1.4 million for the three and nine months ended September 30, 2025, respectively, compared to $440 thousand and $1.3 million 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 $484 thousand and $1.5 million for the three and nine months ended September 30, 2025, respectively, and $467 thousand and $1.4 million for the three and nine months ended September 30, 2024, respectively.
Current wording
Amortization expense related to limited partnership investments is included as a component of income tax expense and amounted to $464 thousand for the three months ended March 31, 2026, compared to $452 thousand for the same period in 2025. 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 $509 thousand for the three months ended March 31, 2026 and $483 thousand for the three months ended March 31, 2025.
Previous wording
At September 30, 2025, the Company had total consolidated assets of $1.57 billion, including gross loans and loans held for sale (total loans) of $1.18 billion, investment securities AFS of $260.4 million, deposits of $1.19 billion, borrowed funds of $270.8 million, subordinated notes of $16.3 million and stockholders' equity of $77.7 million. The Company’s total assets at September 30, 2025 increased $45.6 million, or 3.0%, from $1.53 billion at December 31, 2024, and increased $54.4 million, or 3.6%, compared to September 30, 2024.
Current wording
At March 31, 2026, the Company had total consolidated assets of $1.63 billion, including gross loans and loans held for sale (total loans) of $1.18 billion, investment securities AFS of $313.6 million, deposits of $1.20 billion, borrowed funds of $311.0 million, subordinated notes of $16.3 million and stockholders' equity of $80.6 million. The Company’s total assets at March 31, 2026 increased $8.0 million, or 0.5%, from $1.62 billion at December 31, 2025, and increased $100.3 million, or 6.6%, compared to March 31, 2025.
Previous wording
Federal funds sold and overnight deposits increased $19.9 million, or 186.3%, to $30.5 million as of September 30, 2025, from $10.7 million at December 31, 2024.
Current wording
Federal funds sold and overnight deposits increased $17.7 million, or 231.4%, to $25.3 million as of March 31, 2026, from $7.6 million at December 31, 2025.
Previous wording
Net loans and loans held for sale increased $17.1 million, or 1.5%, to $1.17 billion, representing 74.5% of total assets at September 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 below.)
Current wording
Net loans and loans held for sale increased $2.5 million, or 0.2%, to $1.18 billion, representing 72.3% of total assets at March 31, 2026, compared to $1.17 billion, or 72.5% of total assets at December 31, 2025. (See Loans Held for Sale and Loan Portfolio below.)
Previous wording
Total deposits increased $20.7 million, or 1.8%, to $1.19 billion at September 30, 2025, from $1.17 billion at December 31, 2024. Noninterest bearing deposits increased by $1.2 million, or 0.5%, interest bearing deposits decreased by $63.6 million, or 8.9%, and time deposits increased by $83.1 million, or 36.5%. (See Deposits on page 42.)
Current wording
Total deposits decreased $15.2 million, or 1.2%, to $1.20 billion at March 31, 2026, from $1.21 billion at December 31, 2025. Noninterest bearing deposits decreased by $6.2 million, or 2.7%, interest bearing deposits decreased by $22.2 million, or 3.1%, while time deposits increased by $13.3 million, or 5.1%. (See Deposits on page 36.)
Previous wording
Borrowed funds consisted of FHLB advances of $270.8 million and $259.7 million at September 30, 2025 and December 31, 2024, respectively. (See Borrowings on page 43.)
Current wording
Borrowed funds consisted of FHLB advances of $311.0 million and $286.5 million at March 31, 2026 and December 31, 2025, respectively. (See Borrowings on page 37.)
Previous wording
Stockholders’ equity increased from $66.5 million at December 31, 2024 to $77.7 million at September 30, 2025, reflecting net income of $8.3 million for the first nine months of 2025, a decrease of $6.5 million in accumulated other comprehensive loss due to an increase in the fair market value of the Company's AFS investment securities, an increase of $801 thousand due to net proceeds from the issuance of common stock under the Company's at-the-market offering, an increase of $449 thousand from the vesting of stock based compensation, and a $56 thousand increase due to the issuance of common stock under the DRIP, partially offset by cash dividends declared of $4.9 million. (See Capital Resources on page 45.)
Current wording
Stockholders’ equity decreased from $80.9 million at December 31, 2025 to $80.6 million at March 31, 2026, reflecting an increase of $1.9 million in accumulated other comprehensive loss due to a decrease in the fair market value of the Company's AFS investment securities and cash dividends declared of $1.7 million during the three months ended March 31, 2026. These decreases were partially offset by net income of $3.0 million for the first three months of 2026, an increase of $201 thousand in
Previous wording
Loans Held for Sale and Loan Portfolio. Total loans (including loans held for sale) increased $17.9 million, or 1.5%, to $1.18 billion, representing 74.9% of assets at September 30, 2025, from $1.16 billion, representing 76.0% of assets at December 31, 2024. The total loan portfolio at September 30, 2025 increased $52.9 million compared to the September 30, 2024 level of $1.13 billion, which represented 74.1% of assets. The Company’s loans consist primarily of adjustable-rate and fixed-rate mortgage loans secured by 1-to-4 family, multi-family residential or commercial real estate. Real estate secured loans represented $1.02 billion, or 86.7% of total loans at September 30, 2025 and $1.01 billion, or 87.3% of total loans at December 31, 2024. The net change in the Company's loan portfolio from December 31, 2024 (see table below) resulted primarily from an increase in the volume of municipal and construction real estate loans.
Current wording
Loans Held for Sale and Loan Portfolio. Total loans (including loans held for sale) increased $2.2 million, or 0.2%, to $1.18 billion, representing 72.7% of assets at March 31, 2026, from $1.18 billion, representing 72.9% of assets at December 31, 2025. The total loan portfolio at March 31, 2026 increased $15.9 million compared to the March 31, 2025 level of $1.17 billion, which represented 76.4% of assets. The Company’s loans consist primarily of adjustable-rate and fixed-rate mortgage loans secured by 1-to-4 family, multi-family residential or commercial real estate. Real estate secured loans represented $1.03 billion, or 87.3% of total loans at March 31, 2026 and $1.03 billion, or 87.2% of total loans at December 31, 2025. The net change in the Company's loan portfolio from December 31, 2025 (see table below) resulted primarily from an increase in the volume of commercial real estate loans, partially offset by a reduction in commercial construction loans.
Previous wording
The Company originates and sells qualified residential mortgage loans in various secondary market avenues to mitigate long-term interest rate risk and generate fee income, with a majority of sales made to the FHLMC/Freddie Mac, generally with servicing rights retained. At September 30, 2025, the Company serviced a $1.20 billion residential real estate mortgage
Current wording
The Company originates and sells qualified residential mortgage loans in various secondary market avenues to mitigate long-term interest rate risk and generate fee income, with a majority of sales made to the FHLMC/Freddie Mac, generally with servicing rights retained. At March 31, 2026, the Company serviced a $1.21 billion residential real estate mortgage portfolio, of which $4.2 million was held for sale and approximately $736.6 million of which was serviced for unaffiliated third parties. The Company sold $24.1 million of qualified residential real estate loans to the secondary market during the first three months of 2026 compared to sales of $25.8 million during the first three months of 2025.
Previous wording
The Company also originates commercial real estate and commercial loans under various SBA, USDA and State sponsored programs which provide a government agency guaranty for a portion of the loan amount. There was $2.0 million guaranteed under these various programs at September 30, 2025 on an aggregate balance of $2.5 million in subject loans.
Current wording
The Company also originates commercial real estate and commercial loans under various SBA, USDA and State sponsored programs which provide a government agency guaranty for a portion of the loan amount. There was $1.7 million guaranteed under these various programs at March 31, 2026 on an aggregate balance of $2.2 million in subject loans.
Showing the first 40 of 73 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
Union Bankshares, Inc. Page 32 additional paid in capital from the vesting of stock-based compensation, and a $21 thousand increase due to the issuance of common stock under the DRIP. (See Capital Resources on page 39.)
Current report — wording carried from elsewhere
Management believes, in its best estimate, that the ACL on loans at March 31, 2026 is appropriate to cover expected credit losses over the expected life of the Company’s loan portfolio as of such date. However, there can be no assurance that the
Current report — wording carried from elsewhere
December 31, 2025. There were $10.5 million and $11.3 million of time deposits of $250,000 or less on the balance sheet at March 31, 2026 and December 31, 2025, respectively, which were exchanged with other CDARS participants.
Current report — wording carried from elsewhere
Commitments, Contingent Liabilities, and Off-Balance-Sheet Arrangements. The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers, to reduce its own exposure to fluctuations in interest rates and to implement its strategic objectives. These financial instruments include
Current report — wording carried from elsewhere
The quarterly repurchase authorization expires on December 31, 2026, unless reauthorized. The Company had no repurchases under this program during the first three months of 2026.
Rearranged previous paragraphs (7)
Previous report — wording carried elsewhere
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
Previous report — wording carried elsewhere
Union Bankshares, Inc. Page 29 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 nine months ended September 30, 2025, respectively, the Company issued 30,397 and 38,834 shares for aggregate gross sale proceeds of $802 thousand and $1.1 million, at an average gross sale price of $26.39 and $27.86 per share, which yielded net proceeds to the Company of $749 thousand and $801 thousand after issuance costs, including sales commissions equal to 3% of gross sale proceeds. As of September 30, 2025, approximately $38.9 million remains available for issuance under the offering.
Previous report — wording carried elsewhere
Union Bankshares, Inc. Page 30 nonperforming assets. Net interest margin is calculated as the net interest income on a fully tax equivalent basis as a percentage of average earning assets.
Previous report — wording carried elsewhere
Union Bankshares, Inc. Page 34 further details, see FINANCIAL CONDITION -Allowance for Credit Losses on Loans on page 40 and Commitments, Contingent Liabilities, and Off-Balance-Sheet Arrangements on page 43.
Previous report — wording carried elsewhere
Union Bankshares, Inc. Page 36 thousand in 401k plan contribution expense and $80 thousand in payroll taxes, partially offset by a decrease of $40 thousand in employee benefit expense related to the Company's deferred compensation plans.
Previous report — wording carried elsewhere
Union Bankshares, Inc. Page 38 portfolio, of which $4.5 million was held for sale and approximately $724.6 million of which was serviced for unaffiliated third parties.
Previous report — wording carried 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.