UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2025 Commission file number: 001-15985 UNION BANKSHARES, INC. Former name, former address and former fiscal year, if changed since last report: Not applicable Securities registered pursuant to section 12( ...

Financial Performance - Union Bankshares, Inc. reported net income for Q1 2025, with net income per share announced in the press release[6] Dividends - The Board of Directors declared a quarterly cash dividend of $0.36 per share, payable on May 1, 2025[7] - The record date for the dividend is set for April 26, 2025[7]

Core Viewpoint - Union Bankshares, Inc. reported a consolidated net income of $2.5 million for Q1 2025, reflecting a slight increase from $2.4 million in Q1 2024, alongside a declared quarterly cash dividend of $0.36 per share [1][9]. Financial Performance - Consolidated net income for Q1 2025 was $2.5 million, or $0.55 per share, compared to $2.4 million, or $0.53 per share, in Q1 2024, marking an increase of $84 thousand, or 3.5% [1][6]. - Interest income rose by $2.7 million, or 17.1%, to $18.3 million in Q1 2025, driven by higher yields on earning assets and increased volume [6]. - Interest expense increased by $1.4 million, or 21.3%, to $8.0 million in Q1 2025, attributed to higher rates on customer deposits and wholesale funding [6]. - Net interest income increased by $1.3 million, or 14.0%, due to the changes in interest income and expense [6]. Balance Sheet Highlights - Total assets grew to $1.52 billion as of March 31, 2025, up from $1.42 billion a year earlier, representing an increase of $107.2 million, or 7.6% [2]. - Total loans increased by $128.0 million, or 12.3%, reaching $1.16 billion as of March 31, 2025, including $4.1 million in loans held for sale [2]. - Total deposits were $1.18 billion as of March 31, 2025, slightly up from $1.17 billion a year prior [4]. Equity and Capital - Total equity capital increased to $70.1 million as of March 31, 2025, compared to $63.8 million a year earlier, with a book value per share of $15.44 [5]. - Accumulated other comprehensive loss decreased to $31.4 million as of March 31, 2025, from $34.9 million a year prior [5]. Loan Sales and Credit Quality - Qualifying residential loans sold to the secondary market totaled $25.8 million in Q1 2025, up from $21.7 million in Q1 2024 [3]. - Credit loss expense for Q1 2025 was $235 thousand, compared to a benefit of $230 thousand in Q1 2024, indicating proactive measures to support loan growth [7]. Noninterest Income and Expenses - Noninterest income decreased by $127 thousand, or 4.9%, to $2.4 million in Q1 2025, primarily due to the absence of prepayment penalties and increased losses on investment securities [8]. - Noninterest expenses rose by $601 thousand, or 6.5%, to $9.8 million in Q1 2025, driven by increases in salaries, employee benefits, and occupancy expenses [8].

Financial Performance - The Company's consolidated net income for 2024 was $8.8 million, with basic earnings per share of $1.94, down from $11.3 million and $2.50 in 2023[185]. - For the year ended December 31, 2024, net income decreased to $8.8 million from $11.3 million in 2023, reflecting a decline of approximately 22.1%[193]. - The net interest margin decreased to 2.77% in 2024 from 2.88% in 2023, while net interest spreads fell from 2.50% to 2.30% during the same period[183]. - Total consolidated assets increased by 4.0% to $1.53 billion as of December 31, 2024, compared to $1.47 billion in 2023[187]. - Total capital increased to $66.5 million in 2024 from $65.8 million in 2023, reflecting net income and other factors[189]. - The efficiency ratio increased to 77.62% in 2024 from 72.83% in 2023, indicating a decline in operational efficiency[197]. - Basic earnings per share fell to $1.94 in 2024 from $2.50 in 2023, reflecting a decrease of 22.4%[197]. - Noninterest expenses increased by $2.7 million, or 7.5%, impacting overall net income[185]. - Total noninterest income decreased by $181 thousand, or 1.8%, to $9.7 million in 2024, primarily due to net losses on sales of investment securities of $1.3 million[207]. Loan and Deposit Activity - Net loans and loans held for sale rose by 12.6% to $1.2 billion, representing 75.6% of total assets, up from 69.9% in 2023[187]. - Total deposits decreased by 10.5% to $1.17 billion, primarily due to a reduction in wholesale deposit funding[188]. - The loan to deposit ratio rose significantly to 99.32% in 2024 from 78.99% in 2023, suggesting increased reliance on loans relative to deposits[197]. - The gross loan portfolio increased by $129.6 million, or 12.6%, to $1.16 billion at December 31, 2024, with real estate secured loans representing 87.3% of total loans[214]. - The Company serviced a residential real estate mortgage portfolio of $1.16 billion at December 31, 2024, compared to $1.07 billion at December 31, 2023[216]. - The Company sold $113.5 million of qualified residential real estate loans in 2024, up from $75.6 million in 2023, indicating a significant increase in sales[217]. Regulatory and Compliance - The Company is subject to regulation and supervision by the FRB, FDIC, and DFR, which impacts its operational framework[32][34]. - The Dodd-Frank Act has introduced new capital standards and regulatory requirements that affect the Company's operations[36][37]. - The Company is subject to various federal and state consumer protection laws, including the Dodd-Frank Act, which mandates certain disclosures and prohibits unfair practices[59]. - The Company and Union are required to maintain a comprehensive written information security program to protect customer information as mandated by the GLBA[62]. - The Company is subject to federal laws under the Bank Secrecy Act, requiring compliance with record-keeping and reporting requirements related to suspicious transactions[68]. - The Company adopted a clawback policy in November 2023 to recover executive compensation in the event of a financial restatement[45]. Market and Economic Factors - The Company is exposed to real estate and economic factors in Vermont and New Hampshire, which could adversely affect operations and lead to higher rates of loss and delinquency[78]. - Changes in market interest rates can significantly impact the company's net interest income, which is the difference between interest earned from loans and interest paid on deposits[84]. - The company's financial condition and results of operations are adversely affected by external economic factors, including inflation and interest rates, which significantly impact performance due to the monetary nature of assets and liabilities[131]. - Market volatility, including interest rate changes and credit market fluctuations, may adversely affect the company's business performance and stock price[112]. Competition and Operational Risks - Competition for customer deposits remains high, with a 100 basis point decline in short-term interest rates occurring in 2024[27]. - The company faces competition from various financial institutions, which may impair its ability to attract and retain customers[125][126]. - The company must adapt to technological changes in the financial services industry, which could require significant capital spending and impact its reputation[129]. - The company relies on third-party vendors for key components of its business infrastructure, and any issues with these vendors could adversely affect operations[124]. - Operational risks, including cybersecurity threats and breaches, could result in financial losses and damage to the company's reputation[117][118]. Capital and Funding - The company is subject to stringent capital requirements, including a common equity Tier 1 capital ratio of 4.5% and a capital conservation buffer of 2.5%, which could limit its ability to pay dividends or repurchase shares[102]. - The company's access to funding through the Federal Home Loan Bank (FHLB) is critical, and any deterioration in the FHLB's financial position could restrict funding availability and adversely impact financial results[91]. - The company must maintain sufficient liquidity to meet the needs of depositors and borrowers, with deposits being the primary source of funds, and any reliance on more expensive funding could adversely affect operating margins and profitability[89]. Employee and Community Engagement - The Company employed 191 full-time employees as of December 31, 2024, focusing on creating a supportive workplace and providing numerous training opportunities[22]. - The Company focuses on community banking, aiming to build relationships and trust within its market areas[25]. Shareholder Information - As of February 28, 2025, there were 4,538,596 shares of common stock outstanding, held by 476 stockholders of record, indicating a stable shareholder base[158]. - The company did not repurchase any equity securities during the quarter ended December 31, 2024, maintaining its current capital structure[159].

Financial Performance - Union Bankshares, Inc. reported net income for the fourth quarter of 2024, with specific figures to be detailed in the press release[6] - The net income per share for the fourth quarter of 2024 was also announced, with exact values provided in the accompanying press release[6] Dividends - A quarterly cash dividend of $0.36 per share was declared, payable on February 6, 2025, to shareholders of record as of January 25, 2025[7]

Core Viewpoint - Union Bankshares, Inc. reported a decrease in net income for both the fourth quarter and the full year of 2024, primarily due to a strategic balance sheet repositioning that included a loss on the sale of lower-yielding debt securities [1][7]. Financial Performance - Consolidated net income for Q4 2024 was $3.00 million, or $0.67 per share, compared to $3.05 million, or $0.68 per share in Q4 2023, reflecting a slight decrease of $48 thousand, or 1.6% [1][6] - For the year ended December 31, 2024, consolidated net income was $8.8 million, or $1.94 per share, down from $11.3 million, or $2.50 per share in 2023, marking a decrease of $2.5 million, or 22.2% [1][7] - The decrease in earnings was influenced by a pre-tax loss of $1.3 million from the sale of bonds aimed at improving future earnings [7] Balance Sheet Highlights - Total assets increased to $1.53 billion as of December 31, 2024, up from $1.47 billion a year earlier, representing a growth of $59.5 million, or 4.0% [2] - Loan demand was strong, with loans increasing by $130.0 million, or 12.6%, to reach $1.16 billion as of December 31, 2024 [2] - Total deposits decreased to $1.17 billion as of December 31, 2024, down from $1.31 billion in 2023, with no purchased brokered deposits reported for 2024 [4] Income Statement Analysis - Interest income for the year ended December 31, 2024, was $68.0 million, an increase of $10.8 million, or 19.0%, compared to $57.1 million in 2023, driven by a larger earning asset base and higher interest rates [7] - Interest expense rose by $10.3 million, or 53.6%, to $29.6 million for 2024, attributed to higher-cost wholesale funding [7] - Noninterest income, excluding the bond sale loss, was $11.0 million for 2024, compared to $9.9 million in 2023, with net gains from residential loan sales increasing to $1.7 million [10] Equity and Capital - Total equity capital was $66.5 million as of December 31, 2024, compared to $65.8 million in 2023, with a book value per share of $14.65 [5] - Accumulated other comprehensive loss related to investment securities was $34.0 million as of December 31, 2024, up from $32.0 million in 2023 [5] Dividend Declaration - The Board of Directors declared a cash dividend of $0.36 per share for the quarter, payable on February 6, 2025, to shareholders of record as of January 25, 2025 [12]

Core Viewpoint - Union Bankshares, Inc. reported a decrease in net income for both the fourth quarter and the full year of 2024, primarily due to a strategic balance sheet repositioning that included a loss on the sale of lower-yielding debt securities [1][7]. Financial Performance - Consolidated net income for Q4 2024 was $3.00 million, or $0.67 per share, compared to $3.05 million, or $0.68 per share in Q4 2023, reflecting a slight decrease of $48 thousand, or 1.6% [1][6]. - For the year ended December 31, 2024, consolidated net income was $8.8 million, or $1.94 per share, down from $11.3 million, or $2.50 per share in 2023, marking a decrease of $2.5 million, or 22.2% [1][7]. Balance Sheet Highlights - Total assets increased to $1.53 billion as of December 31, 2024, up by $59.5 million, or 4.0% from $1.47 billion in 2023 [2]. - Loan demand was strong, with loans increasing by $130.0 million, or 12.6%, reaching $1.16 billion as of December 31, 2024 [2]. - Total deposits decreased to $1.17 billion as of December 31, 2024, down from $1.31 billion in 2023, with no purchased brokered deposits reported for 2024 [4]. Income Statement Analysis - Interest income for the year ended December 31, 2024, was $68.0 million, an increase of $10.8 million, or 19.0%, compared to $57.1 million in 2023 [7]. - Interest expense rose by $10.3 million, or 53.6%, to $29.6 million for 2024, attributed to higher cost wholesale funding [7]. - Noninterest income, excluding the bond sale loss, was $11.0 million for 2024, compared to $9.9 million in 2023 [10]. Credit Quality and Expenses - Credit loss expense for 2024 was $930 thousand, compared to a benefit of $499 thousand in 2023, reflecting increased provisions to support loan growth [8][9]. - Noninterest expenses increased by $2.7 million, or 7.5%, to $38.0 million for 2024, driven by higher salaries, employee benefits, and other operational costs [10]. Dividend Declaration - The Board of Directors declared a cash dividend of $0.36 per share for the quarter, payable on February 6, 2025, to shareholders of record as of January 25, 2025 [12].

Financial Performance - Consolidated net income decreased by $1.2 million, or 47.7%, to $1.3 million for Q3 2024 compared to $2.5 million for Q3 2023[87] - The efficiency ratio for Q3 2024 was 83.42%, compared to 75.37% for Q3 2023[89] - The return on average assets for Q3 2024 was 0.36%, down from 0.73% in Q3 2023[89] - Noninterest expenses increased by $483 thousand in Q3 2024 compared to Q3 2023[87] - Total noninterest income decreased by $862 thousand, or 34.9%, to $1,605 thousand for the three months ended September 30, 2024, compared to $2,467 thousand in 2023[100] - Total noninterest expenses increased by $483 thousand, or 5.4%, to $9,409 thousand for the three months ended September 30, 2024, compared to $8,926 thousand in 2023[102] Asset and Liability Management - Total consolidated assets as of September 30, 2024, were $1.52 billion, with gross loans totaling $1.13 billion and deposits of $1.17 billion[88] - Total assets increased to $1,444,618 thousand as of September 30, 2024, compared to $1,365,926 thousand in the previous year, reflecting a growth of approximately 5.8%[94] - Total deposits decreased by $132.3 million, or 10.1%, to $1.17 billion at September 30, 2024, from $1.31 billion at December 31, 2023[105] - Average total deposits decreased by $42.0 million, or 3.5%, for the nine months ended September 30, 2024, compared to the same period in 2023[119] Capital and Equity - The company’s total capital increased to $72.3 million at September 30, 2024, from $65.8 million at December 31, 2023[88] - Stockholders' equity increased from $65.8 million at December 31, 2023, to $72.3 million at September 30, 2024, reflecting net income of $5.8 million for the first nine months of 2024[105] - As of September 30, 2024, the Company and Union met all capital adequacy requirements, with Union's total capital to risk-weighted assets ratio at 12.73%[127] - Union's Tier I capital to risk-weighted assets ratio was 11.85% as of September 30, 2024, exceeding the minimum requirement of 6.00%[128] Interest Income and Expense - Net interest income for the nine months ended September 30, 2024 was $27.9 million, a decrease of $819 thousand or 2.8% compared to the same period in 2023[91] - Interest income on loans increased by $2.3 million due to an increase in average loan volume of $90.0 million and an increase of 46 bps in average yield[91] - Interest expense increased by $8.5 million to $21.4 million for the nine months ended September 30, 2024, driven by an increase in average balance of interest-bearing liabilities[91] - The average cost of funds increased by 84 bps to 2.50% for the nine months ended September 30, 2024 compared to 1.66% for the same period in 2023[91] Loan Performance - Average loans increased by $72.9 million or 7.4% to $1.1 billion for the nine months ended September 30, 2024[91] - Nonaccrual loans totaled $1.7 million as of September 30, 2024, compared to $1.9 million as of September 30, 2023[108] - Allowance for Credit Losses (ACL) on loans was $7.4 million as of September 30, 2024, up from $6.6 million at December 31, 2023[112] - Nonperforming loans to total loans decreased to 0.17% as of September 30, 2024, from 0.20% at December 31, 2023[109] Investment Securities - The Company sold lower-yielding AFS debt securities with a book value of $38.5 million, resulting in a pre-tax realized loss of $1.3 million[115] - Investment securities classified as AFS decreased to $244.9 million, comprising 16.1% of total assets as of September 30, 2024, down from $264.4 million or 18.0% of total assets at December 31, 2023[116] - Net unrealized losses in the AFS investment securities portfolio were $34.4 million as of September 30, 2024, compared to $41.0 million as of December 31, 2023[117] Dividends and Shareholder Returns - The dividend payout ratio for the nine months ended September 30, 2024, was 85.04%, up from 59.34% for the same period in 2023[89] - The Company paid quarterly cash dividends of $0.36 per share during the third quarter of 2024, with dividends declared for the fourth quarter payable on November 7, 2024[128] Other Income and Expenses - Wealth management income increased to $265 thousand for the three months ended September 30, 2024, up 8.6% from $244 thousand in 2023[100] - Service fees rose by $70 thousand for the three months ended September 30, 2024, reflecting a 3.9% increase from $1,785 thousand in 2023[100] - The Company recorded net gains of $83 thousand for the three months ended September 30, 2024, compared to net losses of $41 thousand in 2023 on other investments[101]

Financial Performance - Union Bankshares, Inc. reported net income for Q3 2024, with specific figures to be detailed in the press release[3] - The net income per share for Q3 2024 was announced, with exact values provided in the accompanying press release[3] - The financial results cover the nine months ended September 30, 2024, with detailed performance metrics to be included in the press release[3] - The financial performance metrics are expected to reflect the company's strategic initiatives and market conditions[3] Dividends - A quarterly cash dividend of $0.36 per share was declared, payable on November 7, 2024[4] - The record date for the dividend is set for October 26, 2024[4] Compliance and Governance - The company continues to comply with the Securities Exchange Act of 1934 in its reporting obligations[5] - The report was signed by the Chief Executive Officer and Chief Financial Officer, indicating corporate governance compliance[6] - The company is not classified as an emerging growth company under the relevant regulations[2] Press Release - The press release is filed as Exhibit 99.1, providing comprehensive financial data and insights[4]

Group 1 - Union Bankshares, Inc. (NASDAQ: UNB) is expected to see earnings recover in 2025 after a dip in 2024 due to rate cuts and strong regional economies [1] - Earnings are projected to decrease by 27% to $1.81 per share in 2024, followed by a recovery of 27% to $2.30 per share in 2025 [1]