Union Bankshares Announces Balance Sheet Repositioning

Core Viewpoint - Union Bankshares, Inc. has completed a balance sheet repositioning of its investment securities portfolio to enhance yield and flexibility in managing growth and liquidity [1][2]. Group 1: Financial Actions - The company sold $38.8 million in book value of lower-yielding available-for-sale debt securities, incurring an estimated after-tax realized loss of approximately$1.0 million, which will be recorded in Q3 2024 [2]. - Proceeds from the sale were reinvested into higher-yielding bonds and loans, expected to yield approximately 341 basis points more than the sold securities [2]. Group 2: Impact on Financial Metrics - The loss from the sale of securities is expected to have a neutral impact on stockholders' equity and the company's book value per share [3]. - The repositioning is projected to be accretive to earnings, net interest margin, and return on assets in future periods [3]. Group 3: Company Overview - Union Bankshares, Inc. is headquartered in Morrisville, Vermont, and operates Union Bank, which provides various banking services across northern Vermont and New Hampshire [4]. - The bank has a strong reputation in residential lending and has been recognized for its positive impact on low to moderate home buyers [5].