Union Bankshares Reports $3.0 Million Net Income in Q1 2026, Up 20.1%

Union Bankshares, Inc. reported a net income of $3.0 million for the first quarter of 2026, reflecting a 20.1% increase from $2.5 million in the same period of 2025. This growth was driven by a $1.0 million rise in net interest income, which reached $11.5 million, alongside a $560,000 decrease in credit loss expense. The company’s total assets increased to $1.63 billion, up from $1.62 billion at the end of 2025, with total loans and loans held for sale amounting to $1.18 billion, a slight increase from $1.17 billion. The net interest margin improved to 2.99%, up from 2.88% year-over-year, indicating enhanced profitability from interest-earning assets.

In terms of operational metrics, Union Bankshares experienced a decrease in total deposits, which fell by $15.2 million, or 1.2%, to $1.20 billion. This decline was attributed to a reduction in both noninterest-bearing and interest-bearing deposits, although time deposits saw a modest increase. The company’s allowance for credit losses on loans decreased to $8.1 million from $8.4 million, reflecting a credit loss benefit of $340,000 during the quarter. The nonperforming assets ratio improved to 0.82%, down from 0.98% a year earlier, indicating better asset quality.

Strategically, Union Bankshares has focused on enhancing its investment portfolio, purchasing approximately $75 million in available-for-sale securities in late 2025. This move contributed to a $984,000 increase in interest income from investment securities, which totaled $2.8 million for the quarter. The company also reported a modest increase in noninterest income, which rose to $2.5 million, driven by growth in wealth management services and service fees.

Looking ahead, Union Bankshares remains cautious amid a challenging macroeconomic environment characterized by geopolitical tensions and inflationary pressures. The company is committed to maintaining its capital adequacy, with a total capital ratio of 12.98% as of March 31, 2026, exceeding regulatory requirements. The management expressed confidence in the resilience of its business model while acknowledging potential risks that could impact future performance. The company declared a quarterly cash dividend of $0.36 per share, consistent with its previous dividend policy, reflecting its commitment to returning value to shareholders.