Union Bankshares (UNB) investor relations material

Executive summary

• Net income for Q2 2026 rose 22.1% year-over-year to $2.9 million ($0.61/share), driven by higher net interest income and improved margins, with modest growth in noninterest income and increased noninterest expenses reflecting investments in personnel and technology.

• For the first half of 2026, net income increased 21.1% to $5.9 million ($1.26/share), supported by a $2.2 million rise in net interest income, a $538 thousand increase in noninterest income, and a $606 thousand decrease in credit loss expense, partially offset by higher noninterest expenses and income tax expense.

• Total assets as of June 30, 2026 were $1.56 billion, with gross loans of $1.12 billion, deposits of $1.09 billion, borrowed funds of $337.1 million, and stockholders' equity of $90.4 million.

• Strong balance sheet growth, disciplined execution, and increased book value per share were highlighted, with book value per share up 16.7% to $18.28.

• Leadership transition underway, with new CEO and former CEO becoming Chair of the Board.

Financial highlights

• Net interest income for Q2 2026 was $11.9 million, up 10.8% year-over-year; net interest margin improved to 3.01% from 2.89%.

• Noninterest income for Q2 2026 increased 17.5% to $3.2 million, with gains from wealth management, loan sales, and a $381 thousand gain on sale of branch property.

• Noninterest expenses rose 9.3% to $11.5 million in Q2 2026, mainly due to higher salaries, technology investments, and business development costs.

• Return on average assets for Q2 2026 was 0.71%, and return on average equity was 13.74%.

• Basic EPS for Q2 2026 was $0.61, and diluted EPS was $0.60.

Outlook and guidance

• Management remains confident in the business model's resilience and future performance, citing strong asset quality and a talented team, but notes that macroeconomic and geopolitical uncertainties, including inflation, capital markets volatility, and government policy changes, could impact future results.

• No changes to critical accounting policies or risk factors since the last annual report.