Union Bankshares (UNB) investor relations material

Executive summary

• Net income rose 159.5% year-over-year to $3.4 million for Q3 2025 and 44.7% to $8.3 million for the nine months ended September 30, 2025, driven by higher net interest income, noninterest income, and the absence of prior year securities losses.

• Net interest margin improved quarter over quarter, supported by higher-yielding assets and growth in core deposits replacing wholesale funding.

• Asset quality remains strong, with proactive risk management and increased allowance for credit losses.

• The company issued new shares under an at-the-market equity offering, raising $801 thousand in net proceeds during the nine months.

• Residential loan originations and sales to the secondary market increased significantly year-over-year.

Financial highlights

• Total assets reached $1.57 billion, with loans of $1.18 billion, deposits of $1.19 billion, and stockholders' equity of $77.7 million as of September 30, 2025.

• Net interest income for Q3 2025 was $11.2 million, up from $9.4 million in Q3 2024; for the nine months, it was $31.9 million, up from $27.9 million.

• Noninterest income increased 108.7% year-over-year in Q3 2025, mainly due to the absence of a $1.3 million securities loss recorded in Q3 2024.

• Noninterest expenses rose 9.9% in Q3 2025, primarily from higher salaries, benefits, and professional fees.

• Basic and diluted EPS for Q3 2025 were $0.75, up from $0.29 in Q3 2024; for the nine months, EPS was $1.83 versus $1.27.

Outlook and guidance

• Management remains confident in the business model's resilience but notes that macroeconomic and geopolitical uncertainties could impact future results.

• Management continues to monitor macroeconomic indicators and adjust reserves as needed.

• Regional economy remains sound despite some economic uncertainty and localized drought affecting agriculture.

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