Union Bankshares reports 18.6% increase in Q2 net income

Published 16/07/2025, 22:06
Union Bankshares reports 18.6% increase in Q2 net income

MORRISVILLE, VT. - Union Bankshares, Inc. (NASDAQ:UNB), a regional bank with a market capitalization of $125 million, reported second quarter net income of $2.4 million, or $0.53 per share, representing an 18.6% increase compared to $2.0 million, or $0.45 per share, for the same period in 2024. According to InvestingPro data, the company has maintained dividend payments for 28 consecutive years, demonstrating consistent shareholder returns.

The Vermont-based bank holding company saw its total assets grow to $1.48 billion as of June 30, 2025, up 5.9% from $1.40 billion a year earlier. Loan growth was the primary driver, with total loans increasing 9.8% to $1.11 billion. Trading at a P/E ratio of 13.85, InvestingPro analysis suggests the stock is currently fairly valued based on its comprehensive Fair Value model.

Interest income rose 13.1% to $18.7 million for the quarter, while interest expense increased 17.1% to $8.3 million, resulting in a 10.1% increase in net interest income.

The company maintained strong asset quality with minimal past due loans and net recoveries of $5,000 for the quarter. Credit loss expense decreased to $221,000 compared to $388,000 in the second quarter of 2024.

Noninterest income remained stable at $2.8 million, while noninterest expenses increased 7.2% to $10.5 million, primarily due to higher salaries, wages and employee benefits.

For the six-month period ended June 30, 2025, Union Bankshares reported net income of $4.9 million, or $1.08 per share, compared to $4.4 million, or $0.98 per share, for the same period in 2024.

The bank’s board declared a quarterly cash dividend of $0.36 per share, payable August 7, 2025, to shareholders of record as of July 26, 2025. The current dividend yield stands at an attractive 5.39%, significantly above the company’s 10-year average yield of 5%. For deeper insights into UNB’s financial health and additional ProTips, consider exploring InvestingPro.

Total deposits stood at $1.10 billion as of June 30, 2025, compared to $1.05 billion a year earlier. The company reported total equity capital of $71.3 million and a book value per share of $15.66, up from $64.0 million and $14.16 per share, respectively, as of June 30, 2024.

This information is based on a press release statement from the company.

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