Union Bankshares Announces Earnings for the three months and year ended December 31, 2024 and Declares Quarterly Dividend

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].