UNION BANKSHARES INC
For the period ended Sep 30, 2026. Filed Nov 9, 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.
Sep 30, 2026 · Filed Nov 9, 2026
UNB$22.95-0.0%Stored close · as of Nov 9, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious 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 OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-09.
0000706863-26-000090
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 161 previous paragraphs and 167 current paragraphs.
72 unchanged; 80 reworded; 12 added; 8 removed; 1 previous and 3 current paragraphs rearranged.
Tables are not compared: 17 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 (12)
Current report
Economic conditions during the third quarter of 2026 continued to reflect generally solid economic activity, a stable labor market and elevated inflation. The Federal Open Market Committee ("FOMC") increased the target range for the federal funds rate by 25 bps in September 2026 to 3.75% to 4.00%. At its October 28, 2026 meeting, the FOMC maintained the target range at 3.75% to 4.00%, noting that economic activity was expanding at a "strong pace," domestic spending remained resilient, productivity growth was strong, capital investment was robust and inflation remains elevated. The FOMC also indicated that additional information would help determine the appropriate policy stance to support a timely return of inflation to its 2% objective.
Current report
Changes in the level and shape of the yield curve continued to affect the Company’s earning-asset yields, funding costs, deposit pricing and mix and the fair value of its investment securities. Net interest income, on a fully tax-equivalent basis, increased $988 thousand, or 8.7%, to $12.4 million for the third quarter of 2026 compared to the same period in 2025, as growth in average earning assets and improved earning-asset yields more than offset increased average funding volumes. The net interest margin increased 11 bps to 3.14% for the quarter, due to improved asset yields and lower funding costs. For further discussion see Results of Operations on page 28.
Current report
Total assets increased $19.3 million, or 1.2%, from December 31, 2025 to $1.64 billion at September 30, 2026. Total loans, including loans held for sale, increased $53.0 million, or 4.5%, to $1.23 billion, while total deposits increased $36.5 million, or 3.0%, to $1.25 billion. Credit quality remained generally stable, although nonperforming assets increased modestly to 0.91% of total assets at September 30, 2026 compared to 0.85% at December 31, 2025.
Current report
Net unrealized losses on AFS investment securities increased to $52.4 million at September 30, 2026 from $33.1 million at December 31, 2025, primarily reflecting the impact of higher long-term market interest rates on the fair value of fixed-rate securities. Despite the resulting increase in accumulated other comprehensive loss and decrease in stockholders’ equity, accumulated other comprehensive loss does not affect the calculation of the Company's or Union's regulatory capital ratios, and both entities continue to meet all applicable regulatory capital requirements, with Union remaining above the regulatory thresholds required to be considered well capitalized.
Current report
Consolidated net income was $3.8 million for the third quarter of 2026 compared to $3.4 million for the same period in 2025, and $9.7 million for the nine months ended September 30, 2026 compared to $8.3 million for the nine months ended September
Current report
30, 2025. Results for the 2026 periods reflect higher net interest income and lower credit loss expense, partially offset by higher noninterest expenses and, for the third quarter, lower noninterest income.
Current report
Interest income, on a fully tax equivalent basis, was $20.6 million for the three months ended September 30, 2026, compared to $19.4 million for the three months ended September 30, 2025, an increase of $1.2 million, or 5.9%. Average interest earning assets increased $74.3 million between periods and the average yield on average earning assets increased 5 bps to 5.20% for the three months ended September 30, 2026 compared to 5.15% for the three months ended September 30, 2025. The increase in interest income was primarily attributable to higher average balances and yields on investment securities and growth in average loans.
Current report
Interest expense increased $168 thousand, to $8.2 million for the three months ended September 30, 2026 compared to $8.1 million for the three months ended September 30, 2025, due to higher average funding volumes despite lower average rates paid. Average interest bearing liabilities increased $65.6 million between the three month comparison periods primarily due to increases in average interest bearing deposits and average borrowed funds to support balance sheet growth. Average balance increases were $27.8 million in borrowed funds, $25.8 million in interest bearing checking deposits and $14.1 million in time deposits. These increases were substantially mitigated by decreases of 39 bps in the average rate paid on time deposits and 16 bps in the average rate paid on borrowed funds. Despite the increase in funding volumes, the average rate paid on total interest bearing liabilities decreased 8 bps to 2.49% for the third quarter of 2026 compared to 2.57% for the third quarter of 2025.
Current report
•Service fees. Service fees increased $35 thousand and $69 thousand during the three and nine months ended September 30, 2026, respectively, primarily due to increases in loan servicing income and overdraft fees, partially offset by a decrease in merchant program fees.
Current report
•Income from Company-owned life insurance. The Company received $197 thousand of death benefit proceeds during the three and nine months ended September 30, 2025, while no death benefit was received during the same periods in 2026.
Current 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 amortization of MSRs exceeded the new capitalized MSRs for the three and nine month 2026 comparison periods, with the amortization expense included in Other expenses in the consolidated statements of income. The higher volume of residential loan sales during the 2025 comparison periods discussed above resulted in new capitalized MSRs that exceeded amortization of MSRs by $83 thousand for the three and nine months ended September 30, 2025.
Current report
•Wealth management expenses. The increases of $17 thousand and $37 thousand during the three and nine month comparison periods, respectively, were primarily attributable to the growth in managed fiduciary accounts and the associated data processing and professional services.
Removed paragraphs (8)
Previous 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.
Previous report
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 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.
Previous report
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 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.
Previous 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.
Previous 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.
Previous report
Union Bankshares, Inc. Page 43
Reworded paragraphs (80)
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 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.
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 September 30, 2026 and December 31, 2025, and its results of operations for the three and nine months ended September 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 September 30, 2026 which would materially affect the information presented.
Previous 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.
Current wording
The current macroeconomic and geopolitical environment remains subject to uncertainty, including geopolitical conflicts, tariffs and changes in trade policies, federal government shutdowns, capital markets volatility, and inflation. These and other factors could adversely affect economic conditions, our customers and the Company’s financial condition and results of operations. Despite these uncertainties, the Company experienced continued loan and deposit growth, improved net interest margin and higher net income during 2026, while maintaining regulatory capital ratios above applicable requirements. For additional information regarding risks affecting the Company, see “Part I, Item 1A. Risk Factors” in the Company’s 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 six months ended June 30, 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 nine months ended September 30, 2026 and 2025:
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 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.
Current wording
Net Interest Income. The largest component of the Company’s operating income is net interest income, which represents the difference between interest and dividend income earned on interest earning assets and interest expense incurred 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 interest earning assets.
Previous 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
Current wording
Interest income on investment securities, on a fully tax equivalent basis, increased $905 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
Previous wording
Union Bankshares, Inc. Page 28 future cash flows and earnings with the purchase of approximately $75.0 million of investment securities AFS during the fourth quarter of 2025.
Current wording
$55.2 million. These increases were attributable, in part, to the Company’s strategic purchase of approximately $75.0 million of investment securities AFS during the fourth quarter of 2025 to enhance future cash flows and earnings.
Previous 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.
Current wording
Interest income on loans, on a fully tax equivalent basis, increased $392 thousand between the three month comparison periods due to an increase in the average volume of loans outstanding of $36.2 million, partially offset by a decrease of 4 bps in the average yield. Interest income on loans increased $421 thousand during the three months ended September 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 14 bps for the three months ended September 30, 2025.
Previous 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.
Current wording
Interest income on federal funds sold and overnight deposits decreased $161 thousand between the three month comparison periods due to a decrease in the average balance maintained in Union's master account at the FRB and a decrease of 147 bps in the average yield.
Previous 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.
Current wording
Net interest income was $12.4 million, on a fully tax equivalent basis, for the three months ended September 30, 2026 compared to $11.4 million for the three months ended September 30, 2025, an increase of $988 thousand, or 8.7%, 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 13 bps to 2.71% for the third quarter of 2026, from 2.58% for the same period last year, while the net interest margin increased 11 bps to 3.14% from 3.03% over the same period, reflecting higher average earning asset balances and improved asset yields that outpaced increases in funding costs.
Previous wording
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 wording
Net interest income was $35.8 million, on a fully tax equivalent basis, for the nine months ended September 30, 2026 compared to $32.6 million for the nine months ended September 30, 2025, an increase of $3.2 million, or 9.7%. The average volume of earning assets increased $82.1 million while the average yield on earning assets increased 5 bps to 5.15% compared to 5.10% for the comparison period. Average loans increased $25.1 million, or 2.2%, to $1.19 billion for the nine months ended September 30, 2026. The $941 thousand increase in interest income on loans between periods resulted from the increase in average loan volume despite a 1 bp decrease in average yield. Interest income on loans increased $563 thousand during the nine months ended September 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 6 bps for the nine months ended September 30, 2025.
Previous wording
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 wording
Between the nine month comparison periods, interest income on investment securities, on a fully tax equivalent basis, increased $2.9 million resulting from an increase in the average balance of the investment portfolio of $59.7 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.
Previous 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.
Current wording
The average balance of interest bearing liabilities increased $79.6 million between the nine month comparison periods, primarily due to increases in average borrowed funds and average interest bearing deposits. Interest expense increased $540 thousand, to $24.9 million for the nine months ended September 30, 2026, compared to $24.4 million for the nine months ended September 30, 2025. The increase in expense resulting from higher funding balances was partially offset by lower average rates paid on savings and money market accounts, time deposits and borrowed funds. The average rate paid on total interest bearing liabilities decreased 11 bps to 2.52% for the nine months ended September 30, 2026 compared to 2.63% for the nine months ended September 30, 2025.
Previous wording
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 wording
The net interest spread increased 16 bps to 2.63% for the nine months ended September 30, 2026, from 2.47% for the same period last year, reflecting the net effect of the 5 bps increase in the average yield earned on interest earning assets and the 11 bps decrease in the average rate paid on interest bearing liabilities between periods. The net interest margin increased 12 bps to 3.05% for the nine months ended September 30, 2026 compared to 2.93% for the same period in 2025 as a result of the changes discussed above.
Previous 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:
Current wording
Tax exempt interest income amounted to $1.5 million and $1.6 million for the three months ended September 30, 2026 and 2025, respectively, and $4.7 million and $5.0 million for the nine months ended September 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 nine month comparison periods of 2026 and 2025:
Previous 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:
Current wording
Noninterest Income. The following table sets forth the components of noninterest income and changes between the three and nine month comparison periods of 2026 and 2025:
Previous 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:
Current wording
The significant changes in noninterest income for the three and nine months ended September 30, 2026 compared to the same periods of 2025 are described below:
Previous wording
•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 wording
•Net gains on sales of loans held for sale. Residential mortgage loans sold totaled $38.0 million and $94.9 million during the three and nine months ended September 30, 2026, respectively, compared to sales of $46.0 million and $102.8 million during the corresponding periods of 2025. Net gains on residential loan sales decreased $147 thousand and $176 thousand for the three and nine months ended September 30, 2026, respectively compared to 2025, reflecting the lower volume and lower market premiums on loans sold during 2026 compared to 2025.
Previous wording
•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 wording
•Net gains on disposals of premises and equipment. A $381 thousand gain was recognized on the sale of a previously closed branch property during the second quarter of 2026. No similar gain was recognized during the first nine months of 2025.
Previous 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.
Current wording
•Other income. The Company received $19 thousand of prepayment penalties from the early payoff of loans during the first quarter of 2026 compared to $24 thousand of prepayment penalties received during the three and nine months ended September 30, 2025. In addition, a $15 thousand one-time payment was received during the nine months ended September 30, 2026 that was not received during the same period in 2025.
Previous wording
•Net gains on other investments. Participants in the 2020 Amended and Restated Nonqualified Excess Plan elect to defer receipt of current compensation from the Company or its subsidiary and select designated reference investments consisting of investment funds. The performance of those funds, over which the Company has no control, resulted in net gains of $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 wording
•Net (losses) gains on other investments. Participants in the 2020 Amended and Restated Nonqualified Excess Plan elect to defer receipt of current compensation from the Company or its subsidiary and select designated reference investments consisting of investment funds. The performance of those funds, over which the Company has no control, resulted in net losses of $24 thousand and net gains of $101 thousand for the three and nine months ended September 30, 2026, respectively, and net gains of $94 thousand and $178 thousand for the three and nine months ended September 30, 2025, respectively.
Previous 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:
Current wording
Noninterest Expenses. The following table sets forth the components of noninterest expenses and changes between the three and nine month comparison periods of 2026 and 2025:
Previous 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:
Current wording
The significant changes in noninterest expenses for the three and nine months ended September 30, 2026 compared to the same periods in 2025 are described below:
Previous 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.
Current wording
•Salaries and wages. Salaries and wages increased $1.3 million for the nine months ended September 30, 2026 compared to the same period in 2025. The increase was primarily attributable to annual salary adjustments for the fiscal year 2026 and overlap associated with succession planning for retiring employees. Also contributing to the increase was retirement related compensation costs of $362 thousand, including accelerated vesting of long-term incentive awards and a retirement bonus payment, an increase of $130 thousand in the accrual related to incentive plan payments to select officers of Union, and an increase of $145 thousand from the accrual for unused paid time off (PTO) outstanding as of September 30, 2026 related to a fourth quarter 2025 change in the PTO policy. The decrease in salaries and wages for the three months ended September 30, 2026 compared to the same period in 2025 primarily relates to a decrease of $94 thousand in the accrual related to incentive plan payments, a decrease of $47 thousand from the accrual for unused PTO, and a decrease of $9 thousand in commissions, partially offset by annual salary adjustments during the comparison periods.
Previous wording
•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 wording
•Employee benefits. Employee benefit expense increased $205 thousand and $315 thousand during the three and nine month comparison periods, respectively, primarily due to increases in premium expense for the Company's medical and dental insurance plans and 401k plan contribution expense, partially offset by a decrease in the employee benefit expense related to the Company's deferred compensation plans.
Previous 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.
Current wording
•Equipment expense. Equipment expense increased during the three and nine month comparison periods primarily due to increases in software license and maintenance costs, accruals for computer operation support and depreciation expense related to equipment replacement purchases.
Previous wording
•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 wording
•FDIC insurance assessment. The FDIC insurance assessment decreased by $72 thousand and $126 thousand during the three and nine month comparison periods, respectively, due to a lower assessment rate, partially offset by the overall growth in net average assets.
Previous 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.
Current wording
•ATM and debit card expense. The increases of $27 thousand and $117 thousand for the three and nine month comparison periods, respectively, are primarily related to increased costs associated with debit card processing compared to the same periods last year.
Previous wording
•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 wording
•Travel and entertainment. The increases of $21 thousand and $51 thousand during the three and nine month comparison periods, respectively, relate to an increase in business related meeting costs and intercompany travel between locations.
Previous 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.
Current wording
•Advertising and public relations. Advertising and public relations costs increased $67 thousand during the nine months ended September 30, 2026 compared to the same period in 2025 due to a continued focus on additional advertising campaigns and business development activities during 2026 compared to 2025. The decrease in advertising and public relations costs of $38 thousand for the three months ended September 30, 2026 compared to the same period in 2025 primarily relates to the timing of advertising campaigns and business development activities during 2026 compared to 2025.
Previous wording
•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 wording
•Loan related expenses. The changes in loan related expenses for the three and nine month comparison periods relate primarily to loan origination volume and the credit report fees and real estate loan closing costs associated with loan origination activity. The nine month period ended September 30, 2026 also included a $20 thousand increase in the amortization of MSRs.
Previous wording
•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 wording
•Training and development. The increase in training and development expense reflects increased investment in employee training and professional development initiatives during 2026 compared to 2025.
Previous wording
•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 wording
•Electronic banking expenses. The increase in electronic banking expenses during the three and nine month comparison periods is related primarily to increased costs associated with functionality improvements to the online banking platform during 2026.
Previous wording
•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 wording
•Other expenses. Other expenses increased $54 thousand and $171 thousand during the three and nine month comparison periods, respectively, compared to the same periods in 2025 primarily due to increases in deposit related fee expenses, Vermont franchise tax expense, and employee related costs, largely attributable to employee relocation costs.
Previous 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.
Current wording
Provision for Income Taxes. The Company has provided for current and deferred federal income taxes for the three and nine months ended September 30, 2026 and 2025. The Company's net provision for income taxes was $573 thousand and $1.2 million for the three and nine months ended September 30, 2026, respectively, compared to $414 thousand and $666 thousand for the same periods in 2025, respectively, reflecting higher net income year over year. The effective federal corporate income tax rate was 12.2% and 10.3% for the three and nine months ended September 30, 2026, respectively, compared to 9.9% and 7.2% 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 $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.
Current wording
Amortization expense related to limited partnership investments is included as a component of income tax expense and amounted to $475 thousand and $1.4 million for the three and nine months ended September 30, 2026, respectively, compared to $457 thousand and $1.4 million 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 $1.5 million for the three and nine months ended September 30, 2026, respectively, and $484 thousand and $1.5 million for the three and nine months ended September 30, 2025, respectively.
Previous 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.
Current wording
At September 30, 2026, the Company had total consolidated assets of $1.64 billion, including gross loans and loans held for sale (total loans) of $1.23 billion, investment securities AFS of $279.9 million, deposits of $1.25 billion, borrowed funds of $271.1 million, subordinated notes of $16.3 million and stockholders' equity of $78.8 million. The Company’s total assets at September 30, 2026 increased $19.3 million, or 1.2%, from $1.62 billion at December 31, 2025, and increased $62.6 million, or 4.0%, compared to September 30, 2025.
Previous 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.
Current wording
Federal funds sold and overnight deposits increased $10.4 million, or 136.4%, to $18.1 million as of September 30, 2026, from $7.6 million at December 31, 2025.
Previous 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.)
Current wording
Net loans and loans held for sale increased $52.9 million, or 4.5%, to $1.23 billion, representing 74.9% of total assets at September 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 $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.)
Current wording
Total deposits increased $36.5 million, or 3.0%, to $1.25 billion at September 30, 2026, from $1.21 billion at December 31, 2025. Noninterest bearing deposits increased by $1.5 million, or 0.6%, interest bearing deposits decreased by $61.6 million, or 8.5%, while time deposits increased by $96.6 million, or 36.9%. (See Deposits on page 40.)
Previous 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.)
Current wording
Borrowed funds at September 30, 2026 were $271.1 million and consisted of $241.1 million of FHLB advances and $30.0 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.)
Showing the first 40 of 80 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
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
Current report — wording carried from elsewhere
her investment instruments and risk-sharing commitments or guarantees on certain sold loans. Such instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized on the balance sheet. The contractual or notional amounts of these instruments reflect the extent of involvement the Company has in a particular class of financial instruments.
Current report — wording carried from elsewhere
Union Bankshares, Inc. Page 43 common stock for issuance and sale under the DRIP. As of September 30, 2026, 18,359 shares of stock had been issued from treasury stock under the DRIP.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
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.