Union Bankshares Reports 22.1% Increase in Net Income for Q2 2026

Union Bankshares, Inc. reported a net income of $2.9 million for the second quarter of 2026, reflecting a 22.1% increase from $2.4 million in the same period of 2025. For the first half of 2026, net income rose to $5.9 million, up 21.1% from $4.9 million year-over-year. The growth in profitability was primarily driven by a $1.2 million increase in net interest income, attributed to higher average earning assets and improved net interest margins. Total interest and dividend income for the second quarter reached $20.1 million, compared to $18.7 million in the prior year, while interest expense increased slightly to $8.4 million from $8.3 million.

The company’s total assets decreased to $1.56 billion as of June 30, 2026, down from $1.62 billion at the end of 2025. This decline was largely due to a $56.9 million reduction in net loans, which fell to $1.11 billion, representing 71.6% of total assets. The decrease in loans was influenced by seasonal factors affecting municipal customers, who typically reduce short-term debts at the end of their fiscal year. Total deposits also saw a significant decline, dropping by $120.9 million to $1.09 billion, with interest-bearing deposits decreasing by 19.4%.

In terms of operational developments, Union Bankshares has continued to focus on enhancing its service offerings, particularly in wealth management, which saw an increase in income due to growth in managed fiduciary accounts. The company also reported a notable gain of $381,000 from the sale of previously closed branch property during the quarter. Additionally, the bank's investment securities available-for-sale decreased to $305.8 million, reflecting a net unrealized loss of $34.7 million, primarily due to changes in long-term interest rates.

Looking ahead, Union Bankshares remains cautious about the macroeconomic environment, which includes uncertainties related to geopolitical conflicts and inflation. Despite these challenges, the company is optimistic about its financial model's resilience and is committed to maintaining strong asset quality and capital levels. The bank's stockholders' equity increased to $90.4 million, bolstered by net income and proceeds from the issuance of common stock, indicating a solid foundation for future growth. The company plans to continue leveraging its capital resources to support strategic investments and growth opportunities.