Document

May 1, 2025

We are pleased to report first quarter results for Union Bankshares, Inc. Consolidated net income for the three months ended March 31, 2025, was $2.5 million, or $0.55 per share, compared to $2.4 million, or $0.53 per share, for the same period in 2024. Total assets were $1.52 billion as of March 31, 2025, compared to $1.42 billion as of March 31, 2024, an increase of $107.2 million. On April 16, 2025, the Board of Directors declared a cash dividend of $0.36 per share for the quarter payable May 1, 2025, to shareholders of record as of April 26, 2025.

Loan demand was strong in 2024 and through the first three months of 2025 resulting in an increase of $128.0 million, or 12.3%, to reach $1.16 billion as of March 31, 2025, compared to $1.04 billion as of March 31, 2024. Asset yields continue to improve as new loans are originated at current market rates and principal repayments on older loans are redeployed into new loans. This is expected to continue in the near term. Asset quality remains strong with minimal past due loans and no net losses.

Total deposits were $1.18 billion as of March 31, 2025 compared to deposits of $1.17 billion as of March 31, 2024, and included brokered deposits of $31.0 million and $101.5 million for the respective periods. Borrowed funds were $240.7 million as of March 31, 2025 compared to $150.7 million as of March 31, 2024. The bank subsidiary has undertaken a company wide deposit growth initiative in 2025 and is producing successful outcomes. The overall goal is to increase customer deposits to fund loan demand and while achieving this, we are enhancing the customer experience, proactively identifying customer needs, expanding internal training on products and services, and promoting a collaborative approach amongst all functional areas of the bank. The initiatives will continue through 2025 and beyond.

Consolidated net income was $2.5 million for the quarter of 2025 compared to $2.4 million for the first quarter of 2024, an increase of $84 thousand, or 3.5%. The increase in net income for the comparison periods was due to an increase in net interest income of $1.3 million, partially offset by a decrease of $127 thousand in noninterest income and increases of $465 thousand in credit loss expense and $601 thousand in noninterest expenses. The increase in credit loss expense was to support loan growth and was not due to a deterioration in credit quality.

Locally, snow sports enthusiasts enjoyed an extended season, resulting in a good, but not great, tourism season. Previously planned commercial construction projects are moving forward as planned, though sponsors are in no rush to commit to new projects. Likewise, residential construction continues to be active, with evidence that some homeowners are delaying projects due to economic uncertainty. The economic impact of Federal policy decisions is difficult to discern, making managing a business more challenging than usual. We will continue to manage our company for the long term, for the benefit of all of our stakeholders.

We would like to take this opportunity to remind you of our 134th Annual Meeting of Union Bankshares, Inc., which will be held on May 21, 2025, at 3:00pm at the Stearns Center Performance Space, Vermont State University – Johnson Campus, 337 College Hill Road, Johnson, VT. A reception will be held immediately after the annual meeting.

If you need assistance with a change in registration of certificates, combining your certificates into one, reporting lost certificates, non-receipt or loss of dividend checks, assistance regarding direct deposit of dividends, information about the Company, or to receive copies of financial reports, please contact Kristy Adams Alfieri, Assistant Secretary at 802.888.0982 or contact our Transfer Agent at the address and phone number listed below:

TRANSFER AGENT:

Broadridge Corporate Issuer Solutions, Inc.
P.O. Box 1342
Brentwood, NY 11717
866.321.8022 or
720.378.5956
E-mail: shareholder@broadridge.com

NASDAQ STOCK MARKET

Ticker Symbol: UNB
Corporate Name: Union Bankshares, Inc.
Corporate Address:
20 Lower Main Street
P.O. Box 667
Morrisville, VT 05661-0667
Investor Relations: UBLocal.com

Neil J. Van Dyke

Chair

David S. Silverman

President & Chief Executive Officer

About Union Bankshares

Union Bankshares, Inc. operates as the holding company for Union Bank, which provides commercial, retail and municipal banking services and asset management services throughout northern Vermont and New Hampshire. Union Bank was founded in 1891 in Morrisville, Vermont, where the Bank’s and its holding company’s headquarters are located. Union Bank operates 18 banking offices, 3 loan centers and several ATMs throughout its geographical footprint.

Union Bank has been helping people buy homes and local businesses create jobs in area communities since opening its doors over 130 years ago. Union Bank has earned an exceptional reputation for residential lending programs and has been recognized by the US Department of Agriculture, Rural Development for the positive impact made in the lives of first time home buyers. Union Bank is consistently one of the top Vermont Housing Finance Agency mortgage originators. Additionally, Union Bank has also been designated as an SBA Preferred lender for its participation in small business lending. Union Bank has received an "Outstanding" rating for its compliance with the Community Reinvestment Act (CRA). An institution in this group has an excellent record of helping to meet the credit needs of its assessment area, particularly in low-and moderate income neighborhoods, in a manner consistent with its resources and capabilities.



Consolidated Balance Sheets (unaudited, in thousands)							Consolidated Statements of Income (unaudited, in thousands)						Union Bankshares, Inc.

													DIRECTORS			OFFICERS
													Neil J. Van Dyke - Chair			Neil J. Van Dyke - Chair
ASSETS	March 31, 2025			March 31, 2024				March 31, 2025		March 31, 2024				Timothy W. Sargent - Vice Chair			David S. Silverman - President & CEO

													Joel S. Bourassa			Karyn J. Hale - Chief Financial Officer
									(3 months ended)
													Dawn D. Bugbee			Timothy W. Sargent - Secretary
Cash and Due from Banks		$	4,772		$	4,123	Interest Income				$	18,295						$	15,621
													Mary K. Parent			Kristy Adams Alfieri - Assistant Secretary

							Interest Expense				8,025			6,613			Nancy C. Putnam
Federal Funds Sold & Overnight Deposits		8,940			18,536								Gregory D. Sargent
							Net Interest Income				10,270			9,008			David S. Silverman
Interest Bearing Deposits in Banks		7,959			14,441								Janet P. Spitler
							Credit Loss Expense (Benefit)				235			(230)
Investment Securities		249,631			259,281		Net Interest Income After Credit Loss Expense (Benefit)				10,035			9,238			Union Bank			REGIONAL ADVISORY BOARD MEMBERS
Loans Held for Sale		4,055			3,415
																	DIRECTORS
Loans, net		1,163,321			1,035,976		Wealth Management Income				276			255			Neil J. Van Dyke - Chair			Michael R. Barrett - St. Johnsbury
													Timothy W. Sargent - Vice Chair			Steven J. Bourgeois - St. Albans
Allowance for Credit Losses		(8,110)			(6,645)		Noninterest Income				2,164					2,312		Joel S. Bourassa			Andrew A. Dean - Northern NH
													Dawn D. Bugbee				Stanley T. Fillion - Northern NH
Premises and Equipment, net		19,988			20,738		Noninterest Expenses:										Mary K. Parent			Rosemary H. Gingue - St. Johnsbury
																	Nancy C. Putnam			John M. Goodrich - Northern NH
Accrued Interest & Other Assets		74,276			67,732		Salaries & Wages				3,911			3,553			Gregory D. Sargent			Christopher M. Knapp - Northern NH
													David S. Silverman				Coleen K. Kohaut - St. Albans
Total Assets		$	1,524,832		$	1,417,597	Employee Benefits				1,581			1,489			Janet P. Spitler			Justin P. Lavely - St. Johnsbury
																	Daniel J. Luneau - St. Albans
							Occupancy Expense, net				652			569						Samuel H. Ruggiano - St. Albans
																	Christine A. Sheley - Northern NH
LIABILITIES & SHAREHOLDERS' EQUITY	March 31, 2025			March 31, 2024			Equipment Expense				1,049			943						David S. Silverman - All
													Union Bank Offices (ATMs at all Branch Locations)
							Other Expenses				2,631							2,669
Noninterest Bearing Deposits		$	232,550		$	222,128
							Total				9,824			9,223			VERMONT
Interest Bearing Deposits		682,886			649,898		Income Before Taxes				2,651			2,582
																	Berlin	1028 US Route 302			802.476.0061
Time Deposits		265,940			299,618		Income Tax Expense				150			165			Fairfax	Jct. Routes 104 & 128			802.849.2600
																	Hardwick	103 VT Route 15 West			802.472.8100
Borrowed Funds		240,696			150,696		Net income				$	2,501		$	2,417		Jeffersonville	5062 VT Route 15			802.644.6600
																	Jericho	368 VT Route 15			802.899.7500
Subordinated Notes		16,281			16,247		Earnings Per Share				$	0.55		$	0.53		Lyndonville	183 Depot Street			802.626.3100
																	Morrisville	20 Lower Main Street			802.888.6600
Accrued Interest & Other Liabilities		16,405			15,190		Book Value Per Share				$	15.44		$	14.12			65 Northgate Plaza			802.888.6860
																	Shelburne	5068 Shelburne Road			802.985.0227
Common Stock		10,024			9,991												St. Albans	15 Mapleville Depot			802.524.9000
																	St. Johnsbury	Operations and Loan Center
Additional Paid-in Capital		3,190			2,778													364 Railroad Street			802.748.3131
Retained Earnings																		Branch
		92,589			90,262									325 Portland Street			802.748.3121
Accumulated Other Comprehensive Loss		(31,434)			(34,894)								Stowe	47 Park Street			802.253.6600
													Williston	Branch
														31 Market St			802.878.7900
Treasury Stock at Cost		(4,295)			(4,317)									Loan Center
														31 Market St			802.865.1000
Total Liabilities & Shareholders' Equity		$	1,524,832		$	1,417,597
Standby letters of credit were $1,544,000 and $1,552,000 at March 31, 2025 and 2024, respectively.													NEW HAMPSHIRE
													Groveton	3 State Street			603.636.1611
													Littleton	263 Dells Road			603.444.7136
														76 Main Street			603.444.5321
													Lincoln	135 Main Street			603.745.4000
													North Conway	120 North-South Road			603.356.4010