Union Bankshares (UNB) Q2 2025 earnings summary

Executive summary

• Net income rose 18.6% to $2.4M for Q2 2025 and 10.4% to $4.9M for the six months ended June 30, 2025, driven by higher net interest income and lower credit loss expense, partially offset by increased noninterest expenses and taxes.

• Net income for Q2 2025 was $2.4 million ($0.53/share), up from $2.0 million ($0.45/share) in Q2 2024; six-month net income was $4.9 million ($1.08/share), up from $4.4 million ($0.98/share) year-over-year.

• Total assets were $1.48B at June 30, 2025, with gross loans of $1.11B, deposits of $1.10B, borrowed funds of $270.7M, and stockholders' equity of $71.3M.

• The company issued 8,437 shares under an at-the-market equity offering, raising $52K net, with $39.7M remaining available.

• Board declared a $0.36/share quarterly cash dividend, payable August 7, 2025 to shareholders of record as of July 26, 2025.

Financial highlights

• Net interest income increased by $962K (Q2) and $2.2M (six months) year-over-year, reflecting higher loan volumes and yields.

• Net interest margin improved to 2.89% for Q2 2025 from 2.81% a year ago; net interest spread rose to 2.43% from 2.35%.

• Noninterest expenses rose 7.2% in Q2 and 6.9% for the six months, mainly due to higher salaries, benefits, and FDIC assessments.

• Total loans grew 9.8% to $1.11 billion, with $9.0 million in loans held for sale.

• Noninterest income was flat for Q2 and down 2.5% for the six months, with gains in wealth management and loan sales offset by lower service fees and insurance income.

Outlook and guidance

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

• Management notes ongoing economic uncertainty but reports strong asset quality and minimal past due loans.

• No material changes in risk factors since the last annual report; forward-looking statements highlight risks from interest rates, competition, and economic conditions.