Union Bankshares (UNB) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $2.5 million ($0.55 per share), up 3.5% year-over-year, driven by higher net interest income and lower tax expense, partially offset by increased noninterest and credit loss expenses.

• Total assets reached $1.52 billion at March 31, 2025, with loans of $1.17 billion and deposits of $1.18 billion.

• Book value per share increased to $15.44 from $14.12 year-over-year.

• Quarterly cash dividend of $0.36 per share declared for Q2 2025.

Financial highlights

• Net interest income increased 14.0% year-over-year to $10.3 million, with net interest margin up 20 bps to 2.88%.

• Noninterest income declined 4.9% to $2.4 million, mainly due to lower other income and nonrecurring prepayment penalties in 2024.

• Noninterest expenses rose 6.5% to $9.8 million, led by higher salaries, benefits, occupancy, and FDIC insurance costs.

• Credit loss expense was $235 thousand, up from a $230 thousand benefit in Q1 2024.

• Basic and diluted EPS were $0.55, up from $0.53 year-over-year; dividends paid per share remained $0.36.

Outlook and guidance

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

• No material changes to risk factors since the last annual report; dividend of $0.36 per share declared for Q2 2025.

• Forward-looking statements highlight risks from economic conditions, interest rates, regulation, and competition.