## Union Bankshares Posts Robust Full-Year Growth, Navigates Shifting Interest Rate Landscape
**Morrisville, VT – January 21, 2026** – Union Bankshares, Inc. (NASDAQ: UNB) today announced its financial results for the fourth quarter and full year ended December 31, 2025, showcasing significant year-over-year growth in net income and a strategic expansion of its balance sheet. The company reported consolidated net income of $11.1 million for the full year 2025, a substantial increase of 26.5% compared to $8.8 million in 2024. This translates to full-year earnings per share of $2.43, up from $1.94 in the prior year.
While the fourth quarter saw a slight dip in net income to $2.7 million ($0.60 per share) from $3.0 million ($0.67 per share) in the same period of 2024, the overall annual performance reflects a strong operational execution and a successful strategic repositioning of its investment portfolio. The company noted that the prior year’s earnings were impacted by a pre-tax realized loss of $1.3 million associated with the sale of lower-yielding debt securities, a move aimed at enhancing future profitability.
**Strategic Balance Sheet Enhancement Drives Asset Growth**
Union Bankshares demonstrated solid balance sheet expansion, with total assets climbing 5.8% to $1.62 billion as of December 31, 2025, up from $1.52 billion at the end of 2024. This growth was primarily fueled by a strategic increase in investment securities, which surged 30.1% to $328.3 million. This significant allocation of capital into investment securities reflects a proactive approach to deploying anticipated cash flows and capitalizing on prevailing market conditions, a testament to the company’s agile financial management.
The loan portfolio experienced more modest growth, increasing by 1.5% to $1.2 billion. This growth trajectory was influenced by $143.5 million in qualifying mortgage loan sales throughout 2025. The bank maintained a vigilant stance on credit quality, with the allowance for credit losses on loans rising by 9.5% to $8.4 million, a move management indicated was appropriate given the loan portfolio’s composition and performance, alongside ongoing monitoring of macroeconomic indicators.
Deposits also saw a healthy increase, reaching $1.21 billion, up from $1.17 billion in the prior year, with the inclusion of $10.2 million in purchased brokered deposits. Borrowed funds, primarily from the Federal Home Loan Bank, increased to $286.5 million from $259.7 million.
**Profitability Metrics and Expense Management**
The company’s net interest income saw a positive uptick of 12.1% for the full year, driven by an expanded earning asset base and higher interest rates. Interest income grew to $75.8 million from $68.0 million, while interest expense rose to $32.8 million from $29.6 million, primarily due to increased volumes in customer deposits and borrowed funds.
Noninterest income contributed $11.5 million for the year, boosted by net gains of $2.1 million from qualifying residential mortgage sales. However, noninterest expenses saw an increase of 9.7% to $41.7 million. This rise was attributed to higher costs in salaries and wages ($1.8 million), employee benefits ($763,000), equipment expenses ($389,000), and other operating costs ($606,000). This increase in operating expenditures warrants close observation as the bank navigates a competitive financial landscape and invests in its infrastructure and services.
**Shareholder Value and Dividend Declaration**
Union Bankshares reinforced its commitment to shareholder value, with book value per share strengthening by 19.7% to $17.53 as of December 31, 2025, compared to $14.65 in the prior year. This enhancement was supported by increased retained earnings and additional paid-in capital, partly resulting from the sale of common stock under an equity distribution agreement. The accumulated other comprehensive loss related to investment securities also decreased, further contributing to the improved book value.
Reflecting its solid financial performance and confidence in future prospects, the Board of Directors declared a regular quarterly cash dividend of $0.36 per share, payable on February 5, 2026, to shareholders of record as of January 31, 2026.
**Outlook and Strategic Vision**
David S. Silverman, President & CEO, expressed optimism about the company’s trajectory, stating, “Our 2025 results reflect the strength of our core business and our disciplined approach to managing growth in a dynamic environment. By maintaining a strong credit culture, investing thoughtfully in our balance sheet, and staying focused on the needs of our customers and communities, we continue to build sustainable momentum heading into 2026.”
Union Bankshares, Inc. continues to operate as a community-focused institution with a long-standing history of providing a comprehensive suite of banking and wealth management services across northern Vermont and New Hampshire. Its strategic initiatives, coupled with a commitment to core values and technological advancement, position it for continued engagement and growth within its operational footprint.
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