Union Bankshares Announces Earnings for the three and nine months ended September 30, 2026 and Declares Quarterly Dividend

Union Bankshares posts solid Q3 earnings growth and declares a $0.36 dividend.

What the company is saying

Union Bankshares, Inc. reports consolidated net income of $3.8 million, or $0.77 per share, for Q3 2026, up from $3.4 million, or $0.75 per share, in Q3 2025. For the nine months ended September 30, 2026, net income reached $9.7 million, or $2.03 per share, compared to $8.3 million, or $1.83 per share, a year earlier. President and CEO Jeffrey F. Weidley frames the results as evidence of the company's strong foundation, customer trust, and employee dedication, asserting that the bank is well positioned for continued future success. The release emphasizes growth in total assets, loans, and deposits, as well as a regular quarterly cash dividend of $0.36 per share, payable November 5, 2026. Management highlights a $988 thousand increase in net interest income and a $279 thousand reduction in credit loss expense as key drivers of improved profitability, partially offset by lower noninterest income and higher noninterest and tax expenses. The tone is confident, focusing on resilience and prudent financial management, while qualitative statements about franchise strength and future positioning are not backed by specific forward-looking metrics.

What the data suggests

The disclosed numbers show year-over-year improvement in core profitability and balance sheet growth. Net income rose to $3.8 million for the quarter and $9.7 million for the nine months, with corresponding EPS increases to $0.77 and $2.03. Total assets climbed to $1.64 billion, up $62.6 million or 4.0%, driven by increases in both securities and loans. Investment securities grew to $282.0 million, and total loans reached $1.23 billion, a $52.5 million increase. Deposits increased to $1.25 billion, including a notable rise in brokered deposits to $110.8 million. Net interest income improved by $988 thousand (10.0%), reflecting both a larger earning asset base and higher interest rates. Credit loss expense dropped sharply to $34 thousand from $313 thousand, while noninterest income declined by $507 thousand and noninterest expenses rose by $269 thousand. Book value per share decreased from $16.95 to $15.94, impacted by a rise in accumulated other comprehensive loss to $40.7 million. The company raised $8.6 million through the sale of 384,066 shares. The dividend of $0.36 per share is consistent with prior payouts. Overall, the data supports management's narrative of resilience and growth, though the decrease in book value per share and noninterest income are areas to monitor.

Analysis

The announcement is a standard quarterly financial results release, providing detailed and transparent disclosures of realised financial performance, including net income, EPS, asset growth, loan and deposit balances, and capital actions. Nearly all claims are factual and supported by numerical data, with only a single forward-looking statement from the CEO about being 'well positioned for continued future success.' This phrase is generic and not paired with any specific projections or unsubstantiated claims. There is no evidence of narrative inflation or overstatement, as the language is proportionate to the results and the bulk of the content is realised, not aspirational. No large capital outlay is disclosed without immediate earnings impact, and all material financial actions (such as stock sales) are already completed and quantified. The only minor gap is the CEO's qualitative optimism, which is typical for such releases and does not materially inflate the investment case.

Risk flags

• ●The increase in accumulated other comprehensive loss from $27.5 million to $40.7 million has reduced book value per share, which could signal sensitivity to market movements in the investment securities portfolio and impact shareholder equity if trends persist.
• ●Noninterest income declined by $507 thousand year-over-year, and net gains from mortgage sales also fell, suggesting potential headwinds in fee-based revenue streams that could affect future earnings stability if not offset by other sources.
• ●The company’s increased reliance on brokered deposits, which rose from $65.3 million to $110.8 million, may introduce funding cost or liquidity risks if market conditions change or if the cost of these deposits rises relative to core deposits.

Bottom line

Union Bankshares delivered improved net income and EPS for both the quarter and year-to-date, supported by asset and loan growth, higher net interest income, and lower credit loss expense. The company’s capital position remains stable, with $78.8 million in stockholders’ equity, but book value per share declined due to higher unrealized losses in the securities portfolio. The increase in brokered deposits and the decline in noninterest income are potential pressure points for future quarters. The $0.36 per share dividend continues the company’s pattern of regular shareholder returns. Investors should focus on the sustainability of net interest margin improvements and monitor the impact of market volatility on accumulated other comprehensive loss. The most important takeaway is that Union Bankshares is showing steady core earnings growth, but underlying shifts in funding mix and noninterest revenue warrant close attention.

Announcement summary

(NASDAQ:UNB) Union Bankshares, Inc. announced financial results for the three and nine months ended September 30, 2026, and declared a regular quarterly cash dividend. Consolidated net income for the three months ended September 30, 2026 was $3.8 million, or $0.77 per share, compared to $3.4 million, or $0.75 per share, for the same period in 2025. For the nine months ended September 30, 2026, net income was $9.7 million, or $2.03 per share, compared to $8.3 million, or $1.83 per share, for the same period in 2025. Total assets reached $1.64 billion as of September 30, 2026, up from $1.57 billion as of September 30, 2025, representing growth of $62.6 million, or 4.0%. Investment securities increased to $282.0 million as of September 30, 2026, compared to $262.4 million as of September 30, 2025, an increase of $19.7 million, or 7.5%. Total loan growth was $52.5 million during the comparison periods, with outstanding balances of $1.23 billion as of September 30, 2026. Sales of qualifying mortgage loans were $94.9 million for the nine months ended September 30, 2026, compared to $102.8 million for the same period in 2025. The allowance for credit losses on loans was $8.6 million as of September 30, 2026, compared to $8.4 million as of September 30, 2025. Total deposits were $1.25 billion as of September 30, 2026, compared to $1.19 billion as of September 30, 2025, and included purchased brokered deposits of $110.8 million and $65.3 million for the respective periods. Borrowed funds were $271.1 million as of September 30, 2026, consisting of Federal Home Loan Bank advances of $241.1 million and Federal Reserve borrowings of $30.0 million, compared to Federal Home Loan Bank advances of $270.8 million as of September 30, 2025. Total stockholders' equity was $78.8 million and book value per share was $15.94 as of September 30, 2026, compared to $77.7 million and $16.95 per share as of September 30, 2025. The increase in stockholders' equity was due in part to sales of 384,066 shares of common stock, resulting in net proceeds of $8.6 million through September 30, 2026. Accumulated other comprehensive loss was $40.7 million at September 30, 2026, compared to $27.5 million as of September 30, 2025. For the three months ended September 30, 2026, net interest income increased by $988 thousand, or 10.0%, compared to the same period in 2025, due to an increase of $1.2 million in interest income and a $168 thousand increase in interest expense. Credit loss expense was $34 thousand for the three months ended September 30, 2026, compared to $313 thousand for the same period in 2025. Noninterest income was $2.8 million for the third quarter of 2026, compared to $3.3 million for the same period in 2025. Net gains from sales of qualifying residential mortgages were $553 thousand for the three months ended September 30, 2026, compared to $700 thousand for the same period in 2025. Noninterest expenses increased by $269 thousand, or 2.6%, to $10.6 million for the three months ended September 30, 2026, compared to $10.3 million for the same period in 2025. Income tax expense was $573 thousand for the three months ended September 30, 2026, an increase of $159 thousand compared to $414 thousand for the same period in 2025. The Board of Directors declared a cash dividend of $0.36 per share for the quarter, payable November 5, 2026, to shareholders of record as of October 31, 2026. President and Chief Executive Officer Jeffrey F. Weidley commented that the results reflect the strength of the company's foundation, customer trust, and employee dedication, and that the company is well positioned for continued future success.

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