UNION BANKSHARES INC
For the period ended Jun 30, 2026. Filed Aug 7, 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.
Jun 30, 2026 · Filed Aug 7, 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 2026-03-31; filed 2026-05-08.
0000706863-26-000045
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-07.
0000706863-26-000073
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 148 previous paragraphs and 161 current paragraphs.
67 unchanged; 70 reworded; 22 added; 6 removed; 5 previous and 2 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 (22)
Current report
Net income for the three and six months ended June 30, 2026 increased compared to the same periods in 2025, primarily due to higher net interest income resulting from growth in average earning assets and an improvement in net interest margin and spread. Noninterest income increased modestly, while noninterest expense reflected continued investments in personnel, technology, and operating infrastructure. Asset quality, liquidity, and capital levels remained strong during the period. For further discussion see Results of Operations on page 28.
Current report
Consolidated net income increased $1.0 million, or 21.1%, to $5.9 million for the six months ended June 30, 2026 compared to $4.9 million for the six months ended June 30, 2025. This increase was due to increases in net interest income of $2.2 million, and noninterest income of $538 thousand and a decrease in credit loss expense of $606 thousand, partially offset by increases in noninterest expenses of $1.9 million and income tax expense of $377 thousand.
Current report
Net interest income was $23.4 million, on a fully tax equivalent basis, for the six months ended June 30, 2026 compared to $21.2 million for the six months ended June 30, 2025, an increase of $2.2 million, or 10.2%. The average volume of earning assets increased $86.1 million and the average yield on earning assets increased 4 bps to 5.12% compared to 5.08% for the comparison period. Average loans increased $19.5 million, or 1.7%, to $1.18 billion for the six months ended June 30, 2026. The $549 thousand increase in interest income on loans between periods resulted primarily from the increase in average loan volume. Loan fee income was reduced by $122 thousand from the recognition of the remaining loan premiums originally paid on purchased residential loans that were paid off during the six months ended June 30, 2026, resulting in a reduction of 2 bps in the average yield for the six months ended June 30, 2026.
Current report
Between the six month comparison periods, interest income on investment securities, on a fully tax equivalent basis, increased $2.0 million resulting from an increase in the average balance of the investment portfolio of $62.0 million and an increase in average investment portfolio yield of 69 bps. As noted above, these increases are attributable in part to the strategic decision to purchase approximately $75.0 million of investment securities AFS during the fourth quarter of 2025.
Current report
The average balance of interest bearing liabilities increased $86.8 million between the six month comparison periods, primarily due to an increase in borrowed funds and interest bearing deposits. The average cost of funds decreased 12 bps to 2.54% for the six months ended June 30, 2026 compared to 2.66% for the six months ended June 30, 2025 primarily due to changes in the funding mix. Interest expense increased $372 thousand, to $16.7 million for the six months ended June 30, 2026, compared to $16.3 million for the six months ended June 30, 2025.
Current report
The net interest spread increased 16 bps to 2.58% for the six months ended June 30, 2026, from 2.42% for the same period last year, reflecting the net effect of the 4 bps increase in the average yield earned on interest earning assets and the 12 bps decrease in the average rate paid on interest bearing liabilities between periods. The net interest margin increased 12 bps for the six months ended June 30, 2026 compared to the same period last year as a result of the changes discussed above.
Current report
•Net gains on sales of loans held for sale. Residential mortgage loans sold totaled $32.8 million and $56.9 million during the three and six months ended June 30, 2026, respectively, compared to sales of $31.0 million and $56.8 million during the corresponding periods of 2025. Net gains on residential loan sales increased $10 thousand for the three months ended June 30, 2026 compared to 2025, reflecting the slightly higher volume of loans sold. For the six month comparison period, net gains on residential loan sales decreased $29 thousand, primarily due to lower market premiums on loans sold during 2026 compared to 2025.
Current report
•Net gains on disposals of premises and equipment. A $381 thousand gain was recognized on the sale of previously closed branch property during the second quarter of 2026. No similar gain was recognized during the same period in 2025.
Current 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 $151 thousand and $125 thousand for the three and six months ended June 30, 2026, respectively, and net gains of $119 thousand and $84 thousand for the three and six months ended June 30, 2025, respectively.
Current report
•Employee benefits. Employee benefit expense decreased $74 thousand for the three months ended June 30, 2026 compared to the same period in 2025 primarily reflecting lower premium expense for the Company's medical and dental insurance plans, partially offset by increases in 401k plan contribution expense, payroll taxes and expense related to the Company's deferred compensation plans. Employee benefit expenses increased $110 thousand for the six months ended June 30, 2026 compared to the same period in 2025, as increased 401k plan contribution expense, payroll taxes, and expense related to the Company's deferred compensation plans more than offset the lower premium expense for the Company's medical and dental insurance plans.
Current report
•FDIC insurance assessment. The FDIC insurance assessment decreased by $59 thousand and $54 thousand during the three and six month comparison periods, respectively, due to a lower assessment rate, partially offset by the overall growth in net average assets.
Current report
•Travel and entertainment. The increases of $24 thousand and $30 thousand during the three and six month comparison periods, respectively, relate to an increase in business related meeting costs and intercompany travel between locations.
Current report
•Professional fees. Professional fees increased $17 thousand and $33 thousand for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025 due to increases in engagement fees and additional consultants engaged to assist with other consulting services in 2026.
Current report
•Loan related expenses. The increases of $28 thousand and $53 thousand for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025 are primarily due to higher credit report fees and real estate loan closing costs associated with loan origination activity. The six month comparison period also included a $33 thousand increase in the amortization of MSRs.
Current report
•Training and development. Training and development expense increased $26 thousand and $30 thousand for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, reflecting increased investment in employee training and professional development initiatives.
Current report
•Electronic banking expenses. The increase in electronic banking expenses during the three and six month comparison periods is related primarily to increased costs associated with functionality improvements to the online banking platform during 2026.
Current report
•Other expenses. Other expenses increased $59 thousand and $104 thousand during the three and six month comparison periods, respectively, compared to the same periods in 2025 primarily due to increases in wealth management expenses, deposit related fee expenses, and employee related costs, largely attributable to employee relocation costs.
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 $74.5 million in new municipal loans during the first few days of July 2026.
Current report
Union Bankshares, Inc. Page 40
Current report
At June 30, 2026, borrowed funds also included a $21.0 million overnight advance from the discount window at the FRB at a weighted average rate of 3.75%. Advances under this program are secured by mortgage-backed securities AFS that have been pledged as collateral at the FRB. There were no outstanding advances from the FRB at December 31, 2025.
Current report
Union Bankshares, Inc. Page 41
Current report
Union Bankshares, Inc. Page 43
Removed paragraphs (6)
Previous report
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 report
•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 report
•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 report
•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 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.
Previous 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.
Reworded paragraphs (70)
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, 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.
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, 2026 and December 31, 2025, and its results of operations for the three and six months ended June 30, 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 June 30, 2026 which would materially affect the information presented.
Previous 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.
Current wording
Consolidated net income increased $529 thousand, or 22.1%, to $2.9 million for the second quarter of 2026 compared to $2.4 million for the second quarter of 2025. The increase in net income was due to the combined effects of an increase in net interest income of $1.2 million, a decrease of $46 thousand in credit loss expense, and an increase of $484 thousand in noninterest income, partially offset by increases of $976 thousand in noninterest expenses and $199 thousand in income tax expense.
Previous 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.
Current wording
At June 30, 2026, the Company had total consolidated assets of $1.56 billion, including gross loans and loans held for sale (total loans) of $1.12 billion, deposits of $1.09 billion, borrowed funds of $337.1 million, subordinated notes of $16.3 million and stockholders' equity of $90.4 million.
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, 2026 and 2025:
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, 2026 and 2025:
Previous wording
(2)The ratio of tax equivalent net interest income to average earning assets. See page 29 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 29 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 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.
Current wording
Interest earned, on a fully tax equivalent basis, on average earning assets for the three months ended June 30, 2026 was $20.3 million compared to $19.0 million for the three months ended June 30, 2025, an increase of $1.3 million, or 6.9%. The average earning asset base increased $93.6 million between periods and the average yield on average earning assets increased 3 bps to 5.13% for the three months ended June 30, 2026 compared to 5.10% for the three months ended June 30, 2025.
Previous 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.
Current wording
Interest income on federal funds sold and overnight deposits increased $68 thousand between the three month comparison periods due to an increase in the average balance maintained in Union's master account at the FRB, partially offset by a decrease of 21 bps in the average yield.
Previous wording
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 wording
Interest income on investment securities, on a fully tax equivalent basis, increased $999 thousand between the three month comparison periods due to an increase in the average yield of 73 bps and an increase in the average balance of the portfolio of $60.7 million. These increases are attributable in part to the strategic decision to position the investment portfolio for improved
Previous wording
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 wording
Interest income on loans, on a fully tax equivalent basis, increased $242 thousand between the three month comparison periods due to an increase in the average volume of loans outstanding of $19.5 million, partially offset by an overall decrease of 1 bp in the average yield. Interest income on loans increased $140 thousand during the three months ended June 30, 2025 due to the recovery of interest from the payoff of loans that previously had been in nonaccrual which increased the average loan yield 5 bps for the three months ended June 30, 2025.
Previous wording
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 wording
Interest expense increased $162 thousand, to $8.4 million for the three months ended June 30, 2026 compared to $8.3 million for the three months ended June 30, 2025. Reflecting funding to support asset growth, average interest bearing liabilities increased $94.9 million between the three month comparison periods primarily due to an increase in average borrowed funds of $69.5 million and a $38.0 million increase in average interest bearing checking deposits related primarily to municipal account balances. 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 14 bps to 2.53% for the second quarter of 2026 compared to 2.67% for the second quarter of 2025 primarily due to changes in the funding mix.
Previous wording
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 wording
Net interest income was $11.9 million, on a fully tax equivalent basis, for the three months ended June 30, 2026 compared to $10.7 million for the three months ended June 30, 2025, an increase of $1.2 million, or 10.8%, 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 17 bps to 2.60% for the second quarter of 2026, from 2.43% for the same period last year, while the net interest margin increased 12 bps to 3.01% from 2.89% over the same period, reflecting improved asset yields that outpaced increases in funding costs.
Previous 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.
Current 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.
Previous 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:
Current wording
Tax exempt interest income amounted to $1.6 million and $1.7 million for the three months ended June 30, 2026 and 2025, respectively, and $3.1 million and $3.5 million for the six months ended June 30, 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 and six month comparison periods of 2026 and 2025:
Previous 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.
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
Credit loss (benefit) expense was made up of the following components for the following periods:
Current wording
Credit loss expense (benefit) 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 month comparison periods of 2026 and 2025:
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 2026 and 2025:
Previous 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:
Current wording
The significant changes in noninterest income for the three and six months ended June 30, 2026 compared to the same periods of 2025 are described below:
Previous 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.
Current wording
•Wealth management income. Wealth management income increased as managed fiduciary accounts grew between June 30, 2026 and 2025, as did the value of assets within those accounts.
Previous 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.
Current wording
•Other income. The Company received $19 thousand in prepayment penalties from the early payoff of loans during the first quarter of 2026 and a $15 thousand one-time payment during the second quarter of 2026 that were not received during the same periods of 2025.
Previous 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:
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 2026 and 2025:
Previous 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:
Current wording
The significant changes in noninterest expenses for the three and six months ended June 30, 2026 compared to the same periods in 2025 are described below:
Previous wording
•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 wording
•Salaries and wages. Salaries and wages increased $831 thousand and $1.3 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. The increases were primarily attributable to annual salary adjustments for the fiscal year 2026 and overlap associated with succession planning for retiring employees. Also contributing to the increases were retirement related compensation costs of $362 thousand, including accelerated vesting of long-term incentive awards and a retirement bonus payment, increases of $105 thousand and $224 thousand, respectively, in the accrual related to incentive plan payments to select officers of Union, and increases of $70 thousand and $192 thousand, respectively, from the accrual for unused paid time off (PTO) outstanding as of June 30, 2026 related to a fourth quarter 2025 change in the PTO policy.
Previous 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.
Current wording
•Equipment expense. Equipment expense increased during the three and six month comparison periods primarily due to increases in software license and maintenance costs and depreciation expense related to equipment replacement purchases.
Previous wording
•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 wording
•ATM and debit card expense. The increases of $45 thousand and $90 thousand for the three and six month comparison periods, respectively, are primarily related to increased costs associated with debit card processing during the three and six month comparison periods.
Previous 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.
Current wording
•Advertising and public relations. Advertising and public relations costs increased $29 thousand and $105 thousand during the three and six month comparison periods, respectively, compared to the same periods in 2025 due to a continued focus on advertising campaigns and business development activities during the first half of 2026 that did not occur in the same period in 2025.
Previous 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.
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, 2026 and 2025. The Company's net provision for income taxes was $301 thousand and $629 thousand for the three and six months ended June 30, 2026, respectively, compared to $102 thousand and $252 thousand for the same periods in 2025, respectively, reflecting higher net income year over year. The effective federal corporate income tax rate was 9.0% for the three and six months ended June 30, 2026 compared to 4.5% and 5.1% for the same periods in 2025, respectively.
Previous 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.
Current wording
Amortization expense related to limited partnership investments is included as a component of income tax expense and amounted to $475 thousand and $939 thousand for the three and six months ended June 30, 2026, respectively, compared to $457 thousand and $909 thousand for the same periods in 2025, 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 $514 thousand and $1.0 million for the three and six months ended June 30, 2026, respectively, and $483 thousand and $966 thousand for the three and six months ended June 30, 2025, respectively.
Previous 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.
Current wording
At June 30, 2026, the Company had total consolidated assets of $1.56 billion, including gross loans and loans held for sale (total loans) of $1.12 billion, investment securities AFS of $305.8 million, deposits of $1.09 billion, borrowed funds of $337.1 million, subordinated notes of $16.3 million and stockholders' equity of $90.4 million. The Company’s total assets at June 30, 2026 decreased $58.4 million, or 3.6%, from $1.62 billion at December 31, 2025, and increased $78.4 million, or 5.3%, compared to June 30, 2025.
Previous 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.
Current wording
Federal funds sold and overnight deposits increased $16.8 million, or 220.1%, to $24.5 million as of June 30, 2026, from $7.6 million at December 31, 2025.
Previous 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.)
Current wording
Net loans and loans held for sale decreased $56.9 million, or 4.9%, to $1.12 billion, representing 71.6% of total assets at June 30, 2026, compared to $1.17 billion, or 72.5% of total assets at December 31, 2025. (See Loans Held for Sale and Loan Portfolio on page 36.)
Previous 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.)
Current wording
Total deposits decreased $120.9 million, or 10.0%, to $1.09 billion at June 30, 2026, from $1.21 billion at December 31, 2025. Noninterest bearing deposits decreased by $10.1 million, or 4.4%, interest bearing deposits decreased by $140.7 million, or 19.4%, while time deposits increased by $29.8 million, or 11.4%. (See Deposits on page 40.)
Previous 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.)
Current wording
Borrowed funds at June 30, 2026 were $337.1 million and consisted of $316.1 million of FHLB advances and $21.0 million of borrowings from the FRB. Borrowed funds consisted of $286.5 million of FHLB advances at December 31, 2025. (See Borrowings on page 41.)
Previous 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
Current wording
Stockholders’ equity increased from $80.9 million at December 31, 2025 to $90.4 million at June 30, 2026, reflecting an increase of $7.4 million due to net proceeds from the issuance of common stock under the Company's at-the-market offering, net income of $5.9 million for the first six months of 2026, an increase of $571 thousand from the vesting of stock-based compensation, and a $42 thousand increase due to the issuance of common stock under the DRIP, partially offset by cash dividends declared of $3.3 million and an increase of $1.1 million in accumulated other comprehensive loss due to a decrease in the fair market value of the Company's AFS investment securities. (See Capital Resources on page 43.)
Previous 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.
Current wording
Loans Held for Sale and Loan Portfolio. Total loans (including loans held for sale) decreased $57.0 million, or 4.8%, to $1.12 billion, representing 72.0% of assets at June 30, 2026, from $1.18 billion, representing 72.9% of assets at December 31, 2025. The total loan portfolio at June 30, 2026 increased $10.1 million compared to the June 30, 2025 level of $1.11 billion, which represented 75.1% 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 $1.06 billion, or 94.2% of total loans at June 30, 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 the seasonal decrease in the municipal portfolio discussed above and a reduction in commercial construction loans, partially offset by an increase in the volume of residential and commercial real estate 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 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.
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 June 30, 2026, the Company serviced a $1.23 billion residential real estate mortgage portfolio, of which $5.1 million was held for sale and approximately $740.9 million of which was serviced for unaffiliated third parties. The Company sold $56.9 million of qualified residential real estate loans to the secondary market during the first six months of 2026 compared to sales of $56.8 million during the first six 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 $1.7 million guaranteed under these various programs at March 31, 2026 on an aggregate balance of $2.2 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 $1.6 million guaranteed under these various programs at June 30, 2026 on an aggregate balance of $2.1 million in subject loans.
Previous wording
The Company serviced $42.0 million of commercial and commercial real estate loans for unaffiliated third parties as of March 31, 2026. This included $40.9 million of commercial and commercial real estate loans the Company originated and participated out to other financial institutions. These loans were participated in the ordinary course of business on a nonrecourse basis, for liquidity or credit concentration management purposes.
Current wording
The Company serviced $41.8 million of commercial and commercial real estate loans for unaffiliated third parties as of June 30, 2026. This included $40.6 million of commercial and commercial real estate loans the Company originated and participated out to other financial institutions. These loans were participated in the ordinary course of business on a nonrecourse basis, for liquidity or credit concentration management purposes.
Previous wording
Qualifying residential first lien mortgage loans and certain commercial real estate loans with a combined carrying value of $484.1 million were pledged as collateral for borrowings from the FHLB under a blanket lien at March 31, 2026.
Current wording
Qualifying residential first lien mortgage loans and certain commercial real estate loans with a combined carrying value of $480.0 million were pledged as collateral for borrowings from the FHLB under a blanket lien at June 30, 2026.
Previous wording
There were no loans in process of foreclosure at March 31, 2026 or December 31, 2025. The aggregate interest income not recognized on nonaccrual loans approximated $1.0 million and $791 thousand as of March 31, 2026 and December 31, 2025, respectively.
Current wording
There were no loans in process of foreclosure at June 30, 2026 or December 31, 2025. The aggregate interest income not recognized on nonaccrual loans approximated $1.2 million and $791 thousand as of June 30, 2026 and December 31, 2025, respectively.
Showing the first 40 of 70 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Union Bankshares, Inc. Page 32 further details, see FINANCIAL CONDITION -Allowance for Credit Losses on Loans on page 38 and Commitments, Contingent Liabilities, and Off-Balance-Sheet Arrangements on page 41.
Current report — wording carried from elsewhere
Union Bankshares, Inc. Page 42 certificate of deposit program with a broker, no purchased CDARS or ICS deposits, and no outstanding advances on the correspondent line.
Rearranged previous paragraphs (5)
Previous report — wording carried 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.)
Previous report — wording carried 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
Previous report — wording carried 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.
Previous report — wording carried 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
Previous report — wording carried 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.