Name: UNION BANKSHARES INC Q1 2025 Earnings Call
Start: 2025-05-01T00:00:00.000Z

Executive Summary

Q1 2025 EPS was $0.55 and net income was $2.5M, up modestly year over year (EPS $0.53, net income $2.4M), while sequentially down from Q4 2024 EPS $0.67 and net income $3.0M, driven by normal seasonality and higher funding costs .
Net interest income expanded 14% YoY to $10.27M on higher asset yields and loan growth; interest income rose to $18.3M and interest expense increased to $8.0M reflecting higher deposit/wholesale rates .
Loans grew to $1.16B (+12.3% YoY); deposits were $1.18B with brokered deposits falling sharply YoY to $31.0M (from $101.5M), while FHLB advances were $240.7M; book value per share was $15.44 and AOCI loss improved to $(31.4)M YoY .
The Board declared a $0.36 quarterly dividend; management emphasized deposit growth initiatives and improving asset yields as near‑term drivers; no formal quantitative guidance was issued and no earnings call transcript was available this quarter .

What Went Well and What Went Wrong

Net interest income increased $1.3M YoY (+14.0%) on higher yields and volume; interest income rose $2.7M YoY to $18.3M .
Strong loan growth: loans reached $1.16B (+$128.0M, +12.3% YoY), with continued secondary market sales ($25.8M of qualifying residential loans sold in Q1) .
Management focus on core banking fundamentals: “Asset yields continue to improve as new loans are originated at current market rates… This is expected to continue in the near term,” and a “company wide deposit growth initiative… producing successful outcomes” aimed at funding loan demand .

Funding costs remained elevated: interest expense increased to $8.0M (+21.3% YoY) due to higher rates on customer deposits and wholesale funding .
Credit loss expense was $235k vs a $230k benefit in the prior-year quarter, reflecting provisioning to support loan growth (not deterioration) .
Noninterest income declined $127k YoY (to $2.4M) as prior-year prepayment penalties did not recur and deferred comp investment losses increased, partly offset by higher gains on loan sales .

Metric	Q3 2024	Q4 2024	Q1 2025
EPS ($)	$0.29	$0.67	$0.55
Net Income ($M)	$1.324	$3.001	$2.501
Interest Income ($M)	$17.191	$18.590	$18.300
Interest Expense ($M)	$7.761	$8.148	$8.000
Net Interest Income ($M)	$9.430	$10.442	$10.270
Noninterest Income ($M)	$2.633	$2.512	$2.400
Noninterest Expenses ($M)	$9.409	$9.614	$9.800

YoY comparison (select metrics):

Estimates vs Actuals:

Metric	Consensus (S&P Global)	Actual Q1 2025
EPS ($)	N/A (coverage not available)*	$0.55
Revenue ($)	N/A (coverage not available)*	N/A (bank reports components rather than “revenue”)

*Values retrieved from S&P Global.

KPIs and Balance Sheet:

KPI	Q3 2024	Q4 2024	Q1 2025
Loans, net ($M)	$1,119.5	$1,157.9	$1,163.3
Deposits ($B)	$1.17	$1.17	$1.18
Brokered Deposits ($M)	$80.0	$0.0	$31.0
FHLB Advances ($M)	$230.7	$259.7	$240.7
Equity Capital ($M)	$72.3	$66.5	$70.1
Book Value/Share ($)	$15.98	$14.65	$15.44
AOCI (loss) ($M)	$(26.8)	$(34.0)	$(31.4)
Qualifying Loan Sales	$76.1M (9M 2024)	$113.5M (FY 2024)	$25.8M (Q1)
Net Recoveries	$15k YTD	$22k FY	$1k Q1

Metric	Period	Previous Guidance	Current Guidance	Change
Quarterly Dividend ($/share)	Q1 2025	$0.36 (ongoing)	$0.36 payable May 1, 2025	Maintained
Asset Yield Outlook	Near term	Not quantified	“Asset yields continue to improve… expected to continue in the near term”	Qualitative positive
Deposit Growth Initiative	2025	Not previously detailed	“Company wide deposit growth initiative in 2025… goal is to increase customer deposits to fund loan demand”	New qualitative initiative
Quantitative Financial Guidance	2025	None	None provided	N/A

No Q1 2025 earnings call transcript was found; themes compiled from shareholder reports and press releases.

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
Balance sheet repositioning	Executed $38.8M AFS bond sale with $1.3M pre-tax loss to improve future earnings	Impact noted; loss to enhance future yield; NII improved sequentially	Not repeated; benefits showing via higher asset yields	Repositioning benefits accruing
Rates and NIM	Higher rates; rising funding costs	“Higher for longer”; steeper curve; good for NIM but funding costs challenging in 2025	Asset yields improving; still elevated funding costs	Mixed but improving asset yields
Deposits & funding mix	Brokered deposits $80M; FHLB $230.7M	Brokered deposits at 0; FHLB $259.7M	Brokered deposits $31.0M; FHLB $240.7M; deposit growth initiative underway	Strategic shift to core deposits
Loan demand & origination	Strong across segments despite rates	Robust loan growth in 2024	Continued growth; $1.16B loans; ongoing origination at market rates	Sustained
Asset quality	Minimal past dues; net recoveries	Strong; net recoveries	Strong; net recoveries $1k	Stable
Regional/macro commentary	Tourism standout; tight housing	Resilient economy; yield curve dynamics	“Extended snow season”; steady commercial/residential activity	Resilient local macro

“Asset yields continue to improve as new loans are originated at current market rates and principal repayments on older loans are redeployed into new loans. This is expected to continue in the near term.”
“The bank subsidiary has undertaken a company wide deposit growth initiative in 2025 and is producing successful outcomes… The overall goal is to increase customer deposits to fund loan demand…”
“We will continue to manage our company for the long term, for the benefit of all of our stakeholders.”

No Q1 2025 earnings call transcript or Q&A session was available; no additional guidance clarifications beyond press release and shareholder report commentary .

S&P Global consensus for Q1 2025 EPS and revenue was not available due to limited coverage; results should be evaluated on reported components (NII, noninterest income/expense) typical for community banks.*
Given stronger-than-expected asset yield progression and robust loan growth, sell-side models (where maintained) may need to reflect higher NII run-rate and provisioning aligned to growth rather than credit deterioration, but the absence of consensus limits formal beat/miss assessment .

*Values retrieved from S&P Global.

EPS $0.55 and net income $2.5M were modestly up YoY, with sequential normalization from a strong Q4; NII growth remains the core driver .
Asset yields are improving and expected to continue near term, supporting margin resilience despite elevated funding costs; monitor rate path and deposit repricing .
Funding mix is transitioning back toward core deposits (brokered down sharply YoY); deposit growth initiative should reduce wholesale reliance over time .
Credit quality remains strong with minimal past dues and net recoveries; provisioning reflects portfolio growth rather than deterioration .
Dividend maintained at $0.36, signaling confidence in earnings trajectory and capital stability .
Watch NIM trajectory, brokered deposit usage, and FHLB balances as key stock narrative drivers; better deposit growth outcomes and continued asset yield lift are potential positive catalysts .
No earnings call was held; absence of consensus estimates reduces near-term “beat/miss” volatility, so price movement likely tied to reported NII trends and deposit/funding updates in subsequent disclosures .