Union Bankshares, Inc. (UNB) Market Cap
Union Bankshares, Inc. has a market capitalization of $113.7M.
Financials based on reported quarter end 2026-03-31
Price: $24.65
▲ 0.16 (0.65%)
Market Cap: 113.74M
NASDAQ · time unavailable
CEO: David Scott Silverman
Sector: Financial Services
Industry: Banks - Regional
IPO Date: 1999-08-09
Website: https://www.ublocal.com
Union Bankshares, Inc. (UNB) - Company Information
Market Cap: 113.74M · Sector: Financial Services
Union Bankshares, Inc. operates as the bank holding company for Union Bank that provides retail, commercial, and municipal banking products and services in northern Vermont and New Hampshire. It offers retail depository services, such as personal checking, savings, money market, IRA/SEP/KEOGH, and health savings accounts, as well as certificates of deposit. The company also provides commercial real estate loans; commercial loans for plant and equipment, working capital, real estate renovation, and other business purposes to business owners and investors; small business administration guaranteed loans; home improvement loans and overdraft; and residential construction and mortgage loans. In addition, it offers online cash management services, including account reconciliation, credit card depository, automated clearing house origination, wire transfers, and night depository services; merchant credit card services for the deposit and immediate credit of sales drafts; remote deposit capture services; and online mortgage application services. Further, the company provides business checking accounts; standby letters of credit, bank checks or money orders, and safe deposit boxes; ATM services; debit cards; telephone, Internet, and mobile banking services; and asset management, fiduciary, and trust services. The company offers retail banking services to individuals; and commercial banking services to small and medium sized corporations, partnerships, and sole proprietorships, as well as nonprofit organizations, local municipalities, and school districts. It operates 18 banking offices, 3 loan centers, and various ATMs. Union Bankshares, Inc. was founded in 1891 and is headquartered in Morrisville, Vermont.
Analyst Sentiment
Based on 1 ratings
Consensus Price Target
No data available
Price & Moving Averages
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Fundamentals Overview
Management sounded constructive about steady loan/deposit momentum and improving credit, but the Q&A exposed real earnings drag from OREO and margin pressure. The OREO discussion was blunt: the company changed valuation methodology because sales in inactive rural markets weren’t progressing as expected since 2010–2013. That led to a $2.7M after-tax OREO write-down in Q4 and drove a cautious expense outlook. On margins, management projected only modest benefit from the credit card sale, while guiding to continued net interest margin compression of ~3–4 bps per quarter through 2016. Analysts also probed mortgage, where management expects a return to profitability in 2016 driven by loan officer (LO) ramp-up, but acknowledged industry-wide production contraction. Overall, tone was confident on execution, while the numbers and guidance underscored ongoing earnings sensitivity to OREO valuation, yield dynamics, and mortgage volume constraints.
Growth Catalysts
- Organic loan growth: 6.6% for 2015; 9.2% annualized in Q4 after adjusting for credit card portfolio sale
- Deposit growth: +5.8% for 2015; +10% annualized in Q4 driven by core deposit households
- Digital/banking platform upgrades: global business banking, global check deposits, online account opening, online loan applications (rolled out in 2014)
- Technology infrastructure upgrades and re-engineering internal processes to improve operating efficiency
Business Development
- Credit card loan portfolio sold to Elan (transaction closed in October; ~$26M loans sold); ongoing revenue sharing and new account participation
- Ongoing outsource partnerships with Elan related to servicing/shared revenue streams post-sale
Financial Highlights
- Q4 2015 EPS: $0.40 (in line with Q3); +15% YoY vs $0.34 (operating context)
- Q4 2015 net income: $67.1M; full-year EPS: $1.49
- Quarter included after-tax OREO valuation adjustment: $2.7M (=$0.06/share) tied to updated appraisals on 2 large OREO properties
- After-tax benefit from credit card portfolio sale: $805K
- Net interest margin (reported) declined 10 bps QoQ to 3.76% (from 3.86%); accretion added 7 bps but still down
- Core NIM declined 8 bps QoQ to 3.69% (4 bps of decline from credit card portfolio sale); earning asset yields down 9 bps net of cost of funds changes
- 2016 net accretion guidance: decline of ~$2.6M or ~4 bps
- Efficiency ratio: 66.5% for full-year (down slightly from 67.2% in 2014); Q4 efficiency ratio increased to 6.5% (as stated in transcript, likely a mis-parse but directionally higher vs Q3)
- Provision for loan losses: $2.0M (~14 bps) in Q4; net charge-offs $1.2M (~9 bps)
- Ongoing tax modeling: management indicated forward tax rate around ~26% (Lori question: add-back $800K benefit implied ~26.5%)
Capital Funding
- Board increased quarterly dividend by $0.02 (+12%) to $0.19/share (27% above prior year)
- New share repurchase authorization: $25M; prior $65M authorization exceeded in Q4 and began repurchasing under new authorization
- Q4 repurchases: 321,500 shares for >$8M
- Year-end remaining authorization: ~$21.1M
Strategy & Ops
- Branch consolidation: close 2 branches in Q2 2016 and consolidate 3 Winchester branches into 1 standalone branch
- Post-closures: operate 120 branches across the franchise
- Run-rate expense savings: annual run-rate savings from 2015 branch consolidations ~$925K expected to begin materializing in May
- Non-recurring expenses: ~$450K in Q1 2016 related to closing 5 branches and opening the new standalone branch
- Explicit OREO cost outlook: management expects 2016 OREO expenses to fall from prior guidance level
- ORA/Run-rate ongoing expense cadence: ongoing expense base expected around ~$53M; first quarter expected higher due to reset (payroll tax/incentives)
Market Outlook
- 2016 margin compression expectation: ~3 to 4 bps per quarter through most of 2016; stabilization toward end of 2016 into 2017
- Core NIM trajectory: expects modest decline as earning asset yields decrease faster than liability rates (directional guidance reiterated)
Risks & Headwinds
- OREO overhang and valuation uncertainty: market forces not recovering as anticipated in 2010-2013; valuation methodology changed from marking to appraisal to discounted absorption approach
- Large OREO properties: write-downs reduced per-lot values (King Carter/Merry Point 92 lots from ~$30,000 to ~$11,000; other acreage/septic lots also written down toward ~$11,000 scale)
- Mortgage segment profitability overhang: Q4 mortgage net loss ($90K) and full-year mortgage net loss ($202K)
- Mortgage production environment: management cited national mortgage associations predicting significant 2016 production decrease
- Fed-driven rate environment uncertainty: jury out on further deposit/competition impacts; management reported no deposit cost impact observed yet despite December rate hike
Sentiment: MIXED
Note: This summary was synthesized by AI from the UNB Q4 2015 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.