Union Bankshares (UNB) investor relations material

Executive summary

• Net income for Q1 2026 was $3.0 million ($0.65 per share), up 20.1% year-over-year, driven by higher net interest income and lower credit loss expense.

• Total assets reached $1.63 billion, with loans at $1.18 billion and deposits at $1.20 billion as of March 31, 2026.

• The Board declared a quarterly cash dividend of $0.36 per share, payable May 7, 2026.

• The macroeconomic environment remains uncertain, with management noting potential impacts from inflation, geopolitical tensions, and market volatility.

Financial highlights

• Net interest income increased by $1.0 million (up to 10.0%) year-over-year, reflecting higher average earning assets and improved yields.

• Noninterest income grew 2.2% to $2.5 million, with gains in wealth management and service fees.

• Noninterest expenses rose 9.8% to $10.8 million, mainly due to higher salaries, benefits, and advertising costs.

• Credit loss benefit of $325 thousand recorded, compared to a $235 thousand expense in Q1 2025.

• Basic and diluted EPS were $0.65, up from $0.55 in Q1 2025.

Outlook and guidance

• Management remains confident in the business model's resilience but highlights risks from economic and geopolitical uncertainties.

• No changes to critical accounting policies or risk factors since the last annual report.

• Management continues to monitor macroeconomic indicators and believes current credit loss expense is appropriate for the loan portfolio.

• Forward-looking statements caution about risks from economic conditions, interest rates, inflation, regulation, and competition.