Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): July 16, 2025 (Exact name of registrant as specified in its charter) UNION BANKSHARES, INC. (State or other jurisdiction (Commission (IRS Employer SECURITIES AND EXCHANGE COMMISSION of incorporation) File Number) Identification Number) VT 001-15985 03-0283552 (Address of principal executive offices) (Zip Code) 20 Lower Main St., P.O. Box 667 ...

Core Viewpoint - Union Bankshares, Inc. reported positive financial results for the second quarter and first half of 2025, showing growth in net income, total assets, and loans, while also declaring a quarterly cash dividend [1][6][10]. Financial Performance - Consolidated net income for Q2 2025 was $2.4 million, or $0.53 per share, up from $2.0 million, or $0.45 per share in Q2 2024, marking an increase of 18.6% [1][6] - For the first half of 2025, net income was $4.9 million, or $1.08 per share, compared to $4.4 million, or $0.98 per share in the same period of 2024 [1] Balance Sheet Highlights - Total assets increased to $1.48 billion as of June 30, 2025, up $81.9 million, or 5.9% from $1.40 billion a year earlier [2] - Total loans grew by $99.8 million, or 9.8%, reaching $1.11 billion, including $9.0 million in loans held for sale [2] - Total deposits rose to $1.10 billion, compared to $1.05 billion a year prior [4] Income Statement Insights - Interest income for Q2 2025 was $18.7 million, an increase of $2.2 million, or 13.1%, from $16.5 million in Q2 2024 [6] - Interest expense also increased by $1.2 million, or 17.1%, to $8.3 million for Q2 2025 [6] - Net interest income rose by $962 thousand, or 10.1%, reflecting the changes in interest income and expense [6] Credit Quality - Credit loss expense for Q2 2025 was $221 thousand, down from $388 thousand in Q2 2024, indicating improved credit quality [7] Dividend Declaration - The Board of Directors declared a cash dividend of $0.36 per share, payable on August 7, 2025, to shareholders of record as of July 26, 2025 [10] Company Overview - Union Bankshares, Inc. is a bank holding company providing a range of banking services in northern Vermont and New Hampshire, operating 18 banking offices and three loan centers [11]

[PART I FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements.) Union Bankshares' Q1 2025 unaudited financials show total assets at $1.52 billion, net income of $2.5 million, and stockholders' equity at $70.1 million [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets slightly decreased to $1.52 billion, while stockholders' equity increased to $70.1 million due to reduced comprehensive loss Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$1,524,832** | **$1,528,358** | | Net Loans | $1,155,211 | $1,150,218 | | Total Investments | $249,631 | $252,258 | | **Total Liabilities** | **$1,454,758** | **$1,461,878** | | Total Deposits | $1,181,376 | $1,168,894 | | Borrowed Funds | $240,696 | $259,696 | | **Total Stockholders' Equity** | **$70,074** | **$66,480** | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Q1 2025 net income increased to $2.5 million, driven by a 14.0% rise in net interest income to $10.3 million Q1 Income Statement Highlights (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Interest Income | $10,270 | $9,008 | | Credit Loss Expense (Benefit) | $235 | $(230) | | Noninterest Income | $2,440 | $2,567 | | Noninterest Expenses | $9,824 | $9,223 | | **Net Income** | **$2,501** | **$2,417** | | Diluted EPS | $0.55 | $0.53 | | Dividends per Common Share | $0.36 | $0.36 | [Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Q1 2025 total comprehensive income was $5.1 million, a significant turnaround from a $0.5 million loss in Q1 2024, driven by net income and unrealized gains Comprehensive Income (Loss) (in thousands) | Component | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $2,501 | $2,417 | | Other Comprehensive Income (Loss) | $2,563 | $(2,939) | | **Total Comprehensive Income (Loss)** | **$5,064** | **$(522)** | [Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Stockholders' equity increased to $70.1 million by March 31, 2025, from $66.5 million at year-end 2024, primarily due to net income and other comprehensive income - Key drivers for the **$3.6 million** increase in stockholders' equity during Q1 2025 were net income (**$2.5M**) and other comprehensive income (**$2.6M**), which were partially offset by cash dividends (**$1.6M**)[15](index=15&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 cash flows: $4.1M from operations, $1.9M from investing, $8.1M used in financing, resulting in a $2.1M net decrease Net Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $4,060 | $1,861 | | Net Cash from (used in) Investing Activities | $1,948 | $(6,298) | | Net Cash used by Financing Activities | $(8,134) | $(50,570) | | **Net Decrease in Cash** | **$(2,126)** | **$(55,007)** | [Notes to Unaudited Interim Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Interim%20Consolidated%20Financial%20Statements) These notes provide details on accounting policies, investment and loan portfolios, credit loss allowance, fair value measurements, and a post-period dividend declaration [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) MD&A highlights Q1 2025 net income of $2.5 million, driven by net interest income growth and margin expansion, despite rising nonperforming assets - Consolidated net income increased by **$84 thousand**, or **3.5%**, to **$2.5 million** for Q1 2025 compared to Q1 2024, primarily due to a **$1.26 million** increase in net interest income[104](index=104&type=chunk) Key Performance Ratios | Ratio | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Return on average assets | 0.65% | 0.68% | | Return on average equity | 14.60% | 15.08% | | Net interest margin | 2.88% | 2.68% | | Efficiency ratio | 75.73% | 79.68% | | Nonperforming assets to total assets | 0.98% | 0.13% | [Results of Operations](index=29&type=section&id=RESULTS%20OF%20OPERATIONS) Q1 2025 operating results show net interest income up 14.0% to $10.3 million, net interest margin at 2.88%, with noninterest income down and expenses up - Net interest margin increased by **20 basis points** to **2.88%** in Q1 2025 from **2.68%** in Q1 2024, as the average yield on earning assets grew faster than the cost of interest-bearing liabilities[108](index=108&type=chunk)[116](index=116&type=chunk) - Noninterest income decreased by **$127 thousand** (**4.9%**) YoY, mainly due to a **$130 thousand** swing from gains to losses on other investments and a **$117 thousand** drop in other income[125](index=125&type=chunk)[126](index=126&type=chunk) - Noninterest expenses rose by **$601 thousand** (**6.5%**) YoY, driven by increases in salaries and wages (**+$358k**), employee benefits (**+$92k**), and FDIC insurance assessments (**+$96k**)[127](index=127&type=chunk)[128](index=128&type=chunk) [Financial Condition](index=35&type=section&id=FINANCIAL%20CONDITION) As of March 31, 2025, total assets were $1.52 billion; nonperforming assets surged to $15.0 million, but deposits increased and capital ratios remained strong - Total loans increased by **$4.3 million** (**0.4%**) to **$1.17 billion** at March 31, 2025, compared to year-end 2024[133](index=133&type=chunk) - Nonperforming assets surged to **$15.0 million** at March 31, 2025, from **$1.9 million** at December 31, 2024, primarily due to a commercial construction loan being placed on nonaccrual status[142](index=142&type=chunk) - The Allowance for Credit Losses (ACL) on loans increased to **$8.1 million** (**0.70%** of loans) from **$7.7 million** (**0.66%** of loans) at year-end 2024[143](index=143&type=chunk)[147](index=147&type=chunk) - Total deposits increased by **$12.5 million** (**1.1%**) since year-end, with customers shifting funds from noninterest-bearing and interest-bearing checking accounts into higher-rate time deposits[133](index=133&type=chunk) [Capital Resources](index=42&type=section&id=Capital%20Resources) Q1 2025 capital strengthened, with stockholders' equity at $70.1 million, and both the company and Union Bank exceeding 'well capitalized' regulatory requirements Company Regulatory Capital Ratios (as of March 31, 2025) | Ratio | Actual | Minimum for Adequacy | | :--- | :--- | :--- | | Total capital to risk weighted assets | 12.63% | 8.00% | | Tier I capital to risk weighted assets | 10.07% | 6.00% | | Common Equity Tier 1 to risk weighted assets | 10.07% | 4.50% | | Tier I capital to average assets | 6.31% | 4.00% | - Union Bank, the subsidiary, also exceeded all capital adequacy requirements to be considered 'well capitalized' under Prompt Corrective Action provisions[179](index=179&type=chunk)[180](index=180&type=chunk) - A regular quarterly cash dividend of **$0.36 per share** was declared in April 2025, consistent with the previous quarter[181](index=181&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) This section is omitted by the company, as permitted for smaller reporting companies under SEC regulations - The company, as a smaller reporting company, has omitted the Quantitative and Qualitative Disclosures About Market Risk section in accordance with SEC regulatory relief[182](index=182&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures.) The company's CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes in internal control over financial reporting - Management's evaluation concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by this report[183](index=183&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[184](index=184&type=chunk) [PART II OTHER INFORMATION](index=43&type=section&id=PART%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings.) The company is involved in various legal proceedings, but management believes their outcomes will not materially affect financial condition or operations - In the opinion of management, any liability resulting from ongoing legal proceedings is not expected to materially impact the Company's consolidated financial condition or operations[185](index=185&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors.) No material changes to risk factors have occurred since the company's 2024 Annual Report on Form 10-K - No material changes in risk factors have occurred since the filing of the 2024 Annual Report[186](index=186&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) During Q1 2025, the company neither issued unregistered equity securities nor repurchased any of its equity securities - The company did not issue any unregistered shares during Q1 2025[187](index=187&type=chunk) - There were no repurchases of the Company's equity securities during Q1 2025[187](index=187&type=chunk) [Exhibits](index=44&type=section&id=Item%206.%20Exhibits.) This section lists exhibits filed with Form 10-Q, including CEO/CFO certifications and interactive data files (iXBRL) - Filed exhibits include CEO/CFO certifications under SOX Sections 302 and 906, and iXBRL financial data[191](index=191&type=chunk)[193](index=193&type=chunk) [Signatures](index=44&type=section&id=Signatures)

Financial Performance - Union Bankshares, Inc. reported net income for Q1 2025, with net income per share announced in the press release[6] Dividends - The Board of Directors declared a quarterly cash dividend of $0.36 per share, payable on May 1, 2025[7] - The record date for the dividend is set for April 26, 2025[7]

Core Viewpoint - Union Bankshares, Inc. reported a consolidated net income of $2.5 million for Q1 2025, reflecting a slight increase from $2.4 million in Q1 2024, alongside a declared quarterly cash dividend of $0.36 per share [1][9]. Financial Performance - Consolidated net income for Q1 2025 was $2.5 million, or $0.55 per share, compared to $2.4 million, or $0.53 per share, in Q1 2024, marking an increase of $84 thousand, or 3.5% [1][6]. - Interest income rose by $2.7 million, or 17.1%, to $18.3 million in Q1 2025, driven by higher yields on earning assets and increased volume [6]. - Interest expense increased by $1.4 million, or 21.3%, to $8.0 million in Q1 2025, attributed to higher rates on customer deposits and wholesale funding [6]. - Net interest income increased by $1.3 million, or 14.0%, due to the changes in interest income and expense [6]. Balance Sheet Highlights - Total assets grew to $1.52 billion as of March 31, 2025, up from $1.42 billion a year earlier, representing an increase of $107.2 million, or 7.6% [2]. - Total loans increased by $128.0 million, or 12.3%, reaching $1.16 billion as of March 31, 2025, including $4.1 million in loans held for sale [2]. - Total deposits were $1.18 billion as of March 31, 2025, slightly up from $1.17 billion a year prior [4]. Equity and Capital - Total equity capital increased to $70.1 million as of March 31, 2025, compared to $63.8 million a year earlier, with a book value per share of $15.44 [5]. - Accumulated other comprehensive loss decreased to $31.4 million as of March 31, 2025, from $34.9 million a year prior [5]. Loan Sales and Credit Quality - Qualifying residential loans sold to the secondary market totaled $25.8 million in Q1 2025, up from $21.7 million in Q1 2024 [3]. - Credit loss expense for Q1 2025 was $235 thousand, compared to a benefit of $230 thousand in Q1 2024, indicating proactive measures to support loan growth [7]. Noninterest Income and Expenses - Noninterest income decreased by $127 thousand, or 4.9%, to $2.4 million in Q1 2025, primarily due to the absence of prepayment penalties and increased losses on investment securities [8]. - Noninterest expenses rose by $601 thousand, or 6.5%, to $9.8 million in Q1 2025, driven by increases in salaries, employee benefits, and occupancy expenses [8].

Financial Performance - The Company's consolidated net income for 2024 was $8.8 million, with basic earnings per share of $1.94, down from $11.3 million and $2.50 in 2023[185]. - For the year ended December 31, 2024, net income decreased to $8.8 million from $11.3 million in 2023, reflecting a decline of approximately 22.1%[193]. - The net interest margin decreased to 2.77% in 2024 from 2.88% in 2023, while net interest spreads fell from 2.50% to 2.30% during the same period[183]. - Total consolidated assets increased by 4.0% to $1.53 billion as of December 31, 2024, compared to $1.47 billion in 2023[187]. - Total capital increased to $66.5 million in 2024 from $65.8 million in 2023, reflecting net income and other factors[189]. - The efficiency ratio increased to 77.62% in 2024 from 72.83% in 2023, indicating a decline in operational efficiency[197]. - Basic earnings per share fell to $1.94 in 2024 from $2.50 in 2023, reflecting a decrease of 22.4%[197]. - Noninterest expenses increased by $2.7 million, or 7.5%, impacting overall net income[185]. - Total noninterest income decreased by $181 thousand, or 1.8%, to $9.7 million in 2024, primarily due to net losses on sales of investment securities of $1.3 million[207]. Loan and Deposit Activity - Net loans and loans held for sale rose by 12.6% to $1.2 billion, representing 75.6% of total assets, up from 69.9% in 2023[187]. - Total deposits decreased by 10.5% to $1.17 billion, primarily due to a reduction in wholesale deposit funding[188]. - The loan to deposit ratio rose significantly to 99.32% in 2024 from 78.99% in 2023, suggesting increased reliance on loans relative to deposits[197]. - The gross loan portfolio increased by $129.6 million, or 12.6%, to $1.16 billion at December 31, 2024, with real estate secured loans representing 87.3% of total loans[214]. - The Company serviced a residential real estate mortgage portfolio of $1.16 billion at December 31, 2024, compared to $1.07 billion at December 31, 2023[216]. - The Company sold $113.5 million of qualified residential real estate loans in 2024, up from $75.6 million in 2023, indicating a significant increase in sales[217]. Regulatory and Compliance - The Company is subject to regulation and supervision by the FRB, FDIC, and DFR, which impacts its operational framework[32][34]. - The Dodd-Frank Act has introduced new capital standards and regulatory requirements that affect the Company's operations[36][37]. - The Company is subject to various federal and state consumer protection laws, including the Dodd-Frank Act, which mandates certain disclosures and prohibits unfair practices[59]. - The Company and Union are required to maintain a comprehensive written information security program to protect customer information as mandated by the GLBA[62]. - The Company is subject to federal laws under the Bank Secrecy Act, requiring compliance with record-keeping and reporting requirements related to suspicious transactions[68]. - The Company adopted a clawback policy in November 2023 to recover executive compensation in the event of a financial restatement[45]. Market and Economic Factors - The Company is exposed to real estate and economic factors in Vermont and New Hampshire, which could adversely affect operations and lead to higher rates of loss and delinquency[78]. - Changes in market interest rates can significantly impact the company's net interest income, which is the difference between interest earned from loans and interest paid on deposits[84]. - The company's financial condition and results of operations are adversely affected by external economic factors, including inflation and interest rates, which significantly impact performance due to the monetary nature of assets and liabilities[131]. - Market volatility, including interest rate changes and credit market fluctuations, may adversely affect the company's business performance and stock price[112]. Competition and Operational Risks - Competition for customer deposits remains high, with a 100 basis point decline in short-term interest rates occurring in 2024[27]. - The company faces competition from various financial institutions, which may impair its ability to attract and retain customers[125][126]. - The company must adapt to technological changes in the financial services industry, which could require significant capital spending and impact its reputation[129]. - The company relies on third-party vendors for key components of its business infrastructure, and any issues with these vendors could adversely affect operations[124]. - Operational risks, including cybersecurity threats and breaches, could result in financial losses and damage to the company's reputation[117][118]. Capital and Funding - The company is subject to stringent capital requirements, including a common equity Tier 1 capital ratio of 4.5% and a capital conservation buffer of 2.5%, which could limit its ability to pay dividends or repurchase shares[102]. - The company's access to funding through the Federal Home Loan Bank (FHLB) is critical, and any deterioration in the FHLB's financial position could restrict funding availability and adversely impact financial results[91]. - The company must maintain sufficient liquidity to meet the needs of depositors and borrowers, with deposits being the primary source of funds, and any reliance on more expensive funding could adversely affect operating margins and profitability[89]. Employee and Community Engagement - The Company employed 191 full-time employees as of December 31, 2024, focusing on creating a supportive workplace and providing numerous training opportunities[22]. - The Company focuses on community banking, aiming to build relationships and trust within its market areas[25]. Shareholder Information - As of February 28, 2025, there were 4,538,596 shares of common stock outstanding, held by 476 stockholders of record, indicating a stable shareholder base[158]. - The company did not repurchase any equity securities during the quarter ended December 31, 2024, maintaining its current capital structure[159].

Financial Performance - Union Bankshares, Inc. reported net income for the fourth quarter of 2024, with specific figures to be detailed in the press release[6] - The net income per share for the fourth quarter of 2024 was also announced, with exact values provided in the accompanying press release[6] Dividends - A quarterly cash dividend of $0.36 per share was declared, payable on February 6, 2025, to shareholders of record as of January 25, 2025[7]

Core Viewpoint - Union Bankshares, Inc. reported a decrease in net income for both the fourth quarter and the full year of 2024, primarily due to a strategic balance sheet repositioning that included a loss on the sale of lower-yielding debt securities [1][7]. Financial Performance - Consolidated net income for Q4 2024 was $3.00 million, or $0.67 per share, compared to $3.05 million, or $0.68 per share in Q4 2023, reflecting a slight decrease of $48 thousand, or 1.6% [1][6]. - For the year ended December 31, 2024, consolidated net income was $8.8 million, or $1.94 per share, down from $11.3 million, or $2.50 per share in 2023, marking a decrease of $2.5 million, or 22.2% [1][7]. Balance Sheet Highlights - Total assets increased to $1.53 billion as of December 31, 2024, up by $59.5 million, or 4.0% from $1.47 billion in 2023 [2]. - Loan demand was strong, with loans increasing by $130.0 million, or 12.6%, reaching $1.16 billion as of December 31, 2024 [2]. - Total deposits decreased to $1.17 billion as of December 31, 2024, down from $1.31 billion in 2023, with no purchased brokered deposits reported for 2024 [4]. Income Statement Analysis - Interest income for the year ended December 31, 2024, was $68.0 million, an increase of $10.8 million, or 19.0%, compared to $57.1 million in 2023 [7]. - Interest expense rose by $10.3 million, or 53.6%, to $29.6 million for 2024, attributed to higher cost wholesale funding [7]. - Noninterest income, excluding the bond sale loss, was $11.0 million for 2024, compared to $9.9 million in 2023 [10]. Credit Quality and Expenses - Credit loss expense for 2024 was $930 thousand, compared to a benefit of $499 thousand in 2023, reflecting increased provisions to support loan growth [8][9]. - Noninterest expenses increased by $2.7 million, or 7.5%, to $38.0 million for 2024, driven by higher salaries, employee benefits, and other operational costs [10]. Dividend Declaration - The Board of Directors declared a cash dividend of $0.36 per share for the quarter, payable on February 6, 2025, to shareholders of record as of January 25, 2025 [12].

Core Viewpoint - Union Bankshares, Inc. reported a decrease in net income for both the fourth quarter and the full year of 2024, primarily due to a strategic balance sheet repositioning that included a loss on the sale of lower-yielding debt securities [1][7]. Financial Performance - Consolidated net income for Q4 2024 was $3.00 million, or $0.67 per share, compared to $3.05 million, or $0.68 per share in Q4 2023, reflecting a slight decrease of $48 thousand, or 1.6% [1][6] - For the year ended December 31, 2024, consolidated net income was $8.8 million, or $1.94 per share, down from $11.3 million, or $2.50 per share in 2023, marking a decrease of $2.5 million, or 22.2% [1][7] - The decrease in earnings was influenced by a pre-tax loss of $1.3 million from the sale of bonds aimed at improving future earnings [7] Balance Sheet Highlights - Total assets increased to $1.53 billion as of December 31, 2024, up from $1.47 billion a year earlier, representing a growth of $59.5 million, or 4.0% [2] - Loan demand was strong, with loans increasing by $130.0 million, or 12.6%, to reach $1.16 billion as of December 31, 2024 [2] - Total deposits decreased to $1.17 billion as of December 31, 2024, down from $1.31 billion in 2023, with no purchased brokered deposits reported for 2024 [4] Income Statement Analysis - Interest income for the year ended December 31, 2024, was $68.0 million, an increase of $10.8 million, or 19.0%, compared to $57.1 million in 2023, driven by a larger earning asset base and higher interest rates [7] - Interest expense rose by $10.3 million, or 53.6%, to $29.6 million for 2024, attributed to higher-cost wholesale funding [7] - Noninterest income, excluding the bond sale loss, was $11.0 million for 2024, compared to $9.9 million in 2023, with net gains from residential loan sales increasing to $1.7 million [10] Equity and Capital - Total equity capital was $66.5 million as of December 31, 2024, compared to $65.8 million in 2023, with a book value per share of $14.65 [5] - Accumulated other comprehensive loss related to investment securities was $34.0 million as of December 31, 2024, up from $32.0 million in 2023 [5] Dividend Declaration - The Board of Directors declared a cash dividend of $0.36 per share for the quarter, payable on February 6, 2025, to shareholders of record as of January 25, 2025 [12]

Financial Performance - Consolidated net income decreased by $1.2 million, or 47.7%, to $1.3 million for Q3 2024 compared to $2.5 million for Q3 2023[87] - The efficiency ratio for Q3 2024 was 83.42%, compared to 75.37% for Q3 2023[89] - The return on average assets for Q3 2024 was 0.36%, down from 0.73% in Q3 2023[89] - Noninterest expenses increased by $483 thousand in Q3 2024 compared to Q3 2023[87] - Total noninterest income decreased by $862 thousand, or 34.9%, to $1,605 thousand for the three months ended September 30, 2024, compared to $2,467 thousand in 2023[100] - Total noninterest expenses increased by $483 thousand, or 5.4%, to $9,409 thousand for the three months ended September 30, 2024, compared to $8,926 thousand in 2023[102] Asset and Liability Management - Total consolidated assets as of September 30, 2024, were $1.52 billion, with gross loans totaling $1.13 billion and deposits of $1.17 billion[88] - Total assets increased to $1,444,618 thousand as of September 30, 2024, compared to $1,365,926 thousand in the previous year, reflecting a growth of approximately 5.8%[94] - Total deposits decreased by $132.3 million, or 10.1%, to $1.17 billion at September 30, 2024, from $1.31 billion at December 31, 2023[105] - Average total deposits decreased by $42.0 million, or 3.5%, for the nine months ended September 30, 2024, compared to the same period in 2023[119] Capital and Equity - The company’s total capital increased to $72.3 million at September 30, 2024, from $65.8 million at December 31, 2023[88] - Stockholders' equity increased from $65.8 million at December 31, 2023, to $72.3 million at September 30, 2024, reflecting net income of $5.8 million for the first nine months of 2024[105] - As of September 30, 2024, the Company and Union met all capital adequacy requirements, with Union's total capital to risk-weighted assets ratio at 12.73%[127] - Union's Tier I capital to risk-weighted assets ratio was 11.85% as of September 30, 2024, exceeding the minimum requirement of 6.00%[128] Interest Income and Expense - Net interest income for the nine months ended September 30, 2024 was $27.9 million, a decrease of $819 thousand or 2.8% compared to the same period in 2023[91] - Interest income on loans increased by $2.3 million due to an increase in average loan volume of $90.0 million and an increase of 46 bps in average yield[91] - Interest expense increased by $8.5 million to $21.4 million for the nine months ended September 30, 2024, driven by an increase in average balance of interest-bearing liabilities[91] - The average cost of funds increased by 84 bps to 2.50% for the nine months ended September 30, 2024 compared to 1.66% for the same period in 2023[91] Loan Performance - Average loans increased by $72.9 million or 7.4% to $1.1 billion for the nine months ended September 30, 2024[91] - Nonaccrual loans totaled $1.7 million as of September 30, 2024, compared to $1.9 million as of September 30, 2023[108] - Allowance for Credit Losses (ACL) on loans was $7.4 million as of September 30, 2024, up from $6.6 million at December 31, 2023[112] - Nonperforming loans to total loans decreased to 0.17% as of September 30, 2024, from 0.20% at December 31, 2023[109] Investment Securities - The Company sold lower-yielding AFS debt securities with a book value of $38.5 million, resulting in a pre-tax realized loss of $1.3 million[115] - Investment securities classified as AFS decreased to $244.9 million, comprising 16.1% of total assets as of September 30, 2024, down from $264.4 million or 18.0% of total assets at December 31, 2023[116] - Net unrealized losses in the AFS investment securities portfolio were $34.4 million as of September 30, 2024, compared to $41.0 million as of December 31, 2023[117] Dividends and Shareholder Returns - The dividend payout ratio for the nine months ended September 30, 2024, was 85.04%, up from 59.34% for the same period in 2023[89] - The Company paid quarterly cash dividends of $0.36 per share during the third quarter of 2024, with dividends declared for the fourth quarter payable on November 7, 2024[128] Other Income and Expenses - Wealth management income increased to $265 thousand for the three months ended September 30, 2024, up 8.6% from $244 thousand in 2023[100] - Service fees rose by $70 thousand for the three months ended September 30, 2024, reflecting a 3.9% increase from $1,785 thousand in 2023[100] - The Company recorded net gains of $83 thousand for the three months ended September 30, 2024, compared to net losses of $41 thousand in 2023 on other investments[101]