UNB · Union Bankshares, Inc.

Union Bankshares, Inc. reported improved Q1 2026 results with consolidated net income of $3.0 million, or $0.65 per diluted share, up from $2.5 million, or $0.55 per share, in the prior year period. The $0.5 million increase stemmed from a $1.0 million, or 10%, rise in net interest income to approximately $10 million, driven by a larger earning asset base including higher Federal funds sold ($25.3 million vs. $8.9 million) and investment securities ($315.6 million, up 26.4% due to strategic pre-investing in Q4 2025), alongside modestly higher interest rates. Interest income grew 6.8% to $19.5 million, while interest expense rose 2.6% to $8.2 million from increased deposit and borrowed funds volumes. A key positive was the shift to a $325 thousand credit loss benefit from a $235 thousand expense in Q1 2025, reflecting favorable loan portfolio composition at $1.18 billion (up 1.3%). Noninterest income edged up to $2.5 million, with mortgage sale gains at $350 thousand slightly below $389 thousand prior year. Noninterest expenses increased 9.8% to $10.8 million, pressured by higher salaries ($486 thousand), benefits ($184 thousand), and other costs ($232 thousand). Tax expense rose to $328 thousand. Balance sheet expansion to $1.63 billion in assets supported growth, with deposits stable at $1.20 billion (corrected from erroneous $1.81 billion prior disclosure) and FHLB advances up to $311 million. Equity strengthened to $80.6 million, boosting book value per share 13.1% to $17.46, aided by reduced accumulated other comprehensive loss to $27.7 million. The board declared a $0.36 quarterly dividend, signaling confidence in capital position amid strong asset quality and reserve adequacy. Management notes ongoing credit monitoring amid macroeconomic factors, with no forward guidance provided.