Union Bankshares Reports 18.6% Increase in Q2 Net Income, Total Assets Decline

Union Bankshares, Inc. reported its financial results for the second quarter and first half of 2025, showing a notable increase in net income and improvements in key financial metrics. For the three months ended June 30, 2025, the company achieved a net income of $2.4 million, an 18.6% increase from $2.0 million in the same period of 2024. For the six months, net income rose to $4.9 million, up 10.4% from $4.4 million year-over-year. The growth in net income was primarily driven by a $962,000 increase in net interest income, which reached $10.4 million for the quarter and $20.7 million for the half-year, reflecting a 12% increase compared to the previous year.

The company’s total assets decreased to $1.48 billion as of June 30, 2025, down from $1.53 billion at the end of 2024. This decline was attributed to a reduction in total loans, which fell to $1.11 billion, a 4.3% decrease from $1.16 billion at year-end 2024. The decrease in loans was influenced by seasonal factors affecting municipal customers, who typically reduce outstanding debts at the end of their fiscal year. Despite this, the company reported a significant increase in new municipal loans in early July 2025, amounting to $66.4 million.

Union Bankshares also experienced a decrease in total deposits, which fell to $1.10 billion, a 5.6% decline from $1.17 billion at the end of 2024. The decrease was primarily due to a reduction in interest-bearing deposits, which dropped by 19.1%, while time deposits increased by 34.9%. The company’s allowance for credit losses on loans rose to $8.3 million, reflecting a proactive approach to managing credit risk amid changing economic conditions.

Strategically, Union Bankshares entered into an Equity Distribution Agreement in May 2025, allowing it to sell up to $40 million in common stock. During the second quarter, the company issued 8,437 shares, generating net proceeds of $52,000 after costs. The company’s stockholders' equity increased to $71.3 million, bolstered by net income and a reduction in accumulated other comprehensive loss due to improved market values of investment securities.

Looking ahead, Union Bankshares remains optimistic about its financial trajectory, despite potential challenges posed by the current macroeconomic environment, including inflation and geopolitical uncertainties. The company is focused on maintaining its capital adequacy and liquidity while continuing to support its growth strategies through both organic growth and potential acquisitions.