Union Bankshares Reports 159.5% Increase in Q3 Net Income to $3.4 Million

Union Bankshares, Inc. reported significant financial growth in its latest quarterly results, with net income for the third quarter of 2025 reaching $3.4 million, a 159.5% increase from $1.3 million in the same period last year. For the nine months ending September 30, 2025, net income totaled $8.3 million, up 44.7% from $5.8 million in 2024. The increase in profitability was attributed to a rise in net interest income, which grew by $1.7 million in the third quarter and $4 million over the nine-month period, driven by higher interest earned on loans and a favorable shift in the loan portfolio.

Total consolidated assets increased to $1.57 billion as of September 30, 2025, up from $1.53 billion at the end of 2024. The growth was primarily fueled by a $17.1 million increase in net loans, which reached $1.17 billion, representing 74.5% of total assets. Deposits also rose by $20.7 million, or 1.8%, to $1.19 billion, with notable increases in time deposits, which surged by 36.5%. The company’s allowance for credit losses on loans increased to $8.4 million, reflecting a proactive approach to managing credit risk amid changing economic conditions.

In terms of operational developments, Union Bankshares has been actively managing its investment portfolio, with investment securities available-for-sale rising to $260.4 million, up from $250.5 million at the end of 2024. The company has also engaged in an equity distribution agreement allowing for the sale of up to $40 million in common stock, with $802,000 raised in the third quarter alone. This initiative is part of a broader strategy to enhance capital resources and support growth initiatives.

The bank's performance indicators showed improvements across various metrics, including a net interest margin of 3.03% for the third quarter, up from 2.71% a year earlier. The efficiency ratio improved to 70.15%, reflecting better cost management relative to income. The company also reported a return on average assets of 0.89% and a return on average equity of 19.11%, both indicating strong financial health and operational efficiency.

Looking ahead, Union Bankshares remains optimistic about its growth trajectory, despite potential challenges posed by macroeconomic factors such as inflation and interest rate fluctuations. The management emphasized its commitment to maintaining a strong capital position and enhancing shareholder value through strategic investments and prudent risk management practices. The company plans to continue leveraging its strong loan portfolio and expanding its market presence while navigating the evolving economic landscape.