Union Bankshares, Inc. (UNB) | Investment Case

1. Company Snapshot

1.a. Company Description

Union Bankshares, Inc.operates as the bank holding company for Union Bank that provides retail, commercial, and municipal banking products and services in northern Vermont and New Hampshire.It offers retail depository services, such as personal checking, savings, money market, IRA/SEP/KEOGH, and health savings accounts, as well as certificates of deposit.

The company also provides commercial real estate loans; commercial loans for plant and equipment, working capital, real estate renovation, and other business purposes to business owners and investors; small business administration guaranteed loans; home improvement loans and overdraft; and residential construction and mortgage loans.In addition, it offers online cash management services, including account reconciliation, credit card depository, automated clearing house origination, wire transfers, and night depository services; merchant credit card services for the deposit and immediate credit of sales drafts; remote deposit capture services; and online mortgage application services.Further, the company provides business checking accounts; standby letters of credit, bank checks or money orders, and safe deposit boxes; ATM services; debit cards; telephone, Internet, and mobile banking services; and asset management, fiduciary, and trust services.

The company offers retail banking services to individuals; and commercial banking services to small and medium sized corporations, partnerships, and sole proprietorships, as well as nonprofit organizations, local municipalities, and school districts.It operates 18 banking offices, 3 loan centers, and various ATMs. Union Bankshares, Inc.was founded in 1891 and is headquartered in Morrisville, Vermont.

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1.b. Last Insights on UNB

Union Bankshares, Inc.'s recent earnings release revealed a mixed bag, with net income decreasing 5.6% year-over-year to $14.3 million for the three months ended December 31, 2024. The decline was primarily due to a 12.4% increase in non-interest expenses, partly offset by a 4.3% rise in net interest income. Additionally, the company's efficiency ratio deteriorated to 62.4% from 59.3% in the same period last year, indicating lower profitability.

1.c. Company Highlights

Last Price	23.01
Change Percentage	-0.35%
Open	23.05
Previous Close	23.09
Market Cap ( Millions)	105
Volume	4647
Year High	36.25
Year Low	20.65
M A 50	23.7
M A 200	27.58

FCF Yield	18.82%
Dividend Yield	6.26%
ROE	15.93%
Debt / Equity	0.00%
Net Debt / EBIDTA	-36.57%
Price To Book	1.35
Price Earnings Ratio	9.25
Price To FCF	5.31
Price To sales	1.41
EV / EBITDA	7.4

2. Transcript Summary

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3. NewsRoom

Union Bankshares Announces Earnings for the three and nine months ended September 30, 2025 and Declares Quarterly Dividend

Oct -15

Source: globenewswire.com

Acadian Timber Corp. Announces $2.5M Investment in UNB’s Digital Forestry Program

Sep -22

Source:

Union Bankshares (UNB) Q2 Net Jumps 19%

Aug -07

Source: fool.com

Union Bankshares: Do Not Be Drawn To The High Dividend Yield

Aug -06

Source: seekingalpha.com

Union Bankshares Announces Earnings for the three and six months ended June 30, 2025 and Declares Quarterly Dividend

Jul -16

Source: globenewswire.com

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

Jan -15

Source: globenewswire.com

Union Bankshares: Earnings Likely To Recover Soon; Dividend Yield Of 4.9%

Oct -30

Source: seekingalpha.com

Union Bankshares Announces Earnings for the three and nine months ended September 30, 2024 and Declares Quarterly Dividend

Oct -16

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Banking and Related Activities

Expected Growth: 4.5%

Union Bankshares' growth is driven by increasing demand for commercial and consumer lending, deposit services, and wealth management. The bank's strategic expansion into new markets and investments in digital banking platforms are expected to fuel growth.

7. Detailed Products

Consumer Banking

Provides personal banking services, including checking and savings accounts, credit cards, personal loans, and mortgages.

Commercial Banking

Offers financial solutions for businesses, including cash management, commercial lending, and treasury management services.

Mortgage Banking

Provides mortgage lending services, including residential and commercial mortgage loans, refinancing, and home equity loans.

Wealth Management

Offers investment, trust, and brokerage services to help clients manage their wealth and achieve long-term financial goals.

Card Services

Provides credit card and debit card services, including card issuance, processing, and payment solutions.

Treasury Management

Offers cash management, payment processing, and risk management solutions for businesses.

8. Union Bankshares, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Union Bankshares, Inc. is medium due to the presence of alternative banking services and financial institutions that offer similar products and services.

Bargaining Power Of Customers

The bargaining power of customers for Union Bankshares, Inc. is low due to the lack of concentration of buyers and the presence of many small and medium-sized businesses that rely on the bank's services.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Union Bankshares, Inc. is medium due to the presence of a few large suppliers of technology and services, but the bank's size and scale provide some negotiating power.

Threat Of New Entrants

The threat of new entrants for Union Bankshares, Inc. is low due to the high barriers to entry in the banking industry, including regulatory hurdles and the need for significant capital investment.

Intensity Of Rivalry

The intensity of rivalry for Union Bankshares, Inc. is high due to the presence of many competitors in the banking industry, including large national banks and regional banks, which leads to intense competition for customers and market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	55.52%
Debt Cost	8.40%
Equity Weight	44.48%
Equity Cost	8.40%
WACC	8.40%
Leverage	124.83%

11. Quality Control: Union Bankshares, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

West Bank

A-Score: 6.5/10

Value: 6.8

Growth: 4.8

Quality: 6.8

Yield: 8.0

Momentum: 6.0

Volatility: 6.7

1-Year Total Return ->

Affinity Bancshares

A-Score: 6.2/10

Value: 6.3

Growth: 7.3

Quality: 5.4

Yield: 7.0

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

Stock Yards Bancorp

A-Score: 5.9/10

Value: 4.4

Growth: 6.8

Quality: 6.5

Yield: 4.0

Momentum: 6.5

Volatility: 7.3

1-Year Total Return ->

BCB Bancorp

A-Score: 5.3/10

Value: 5.4

Growth: 5.8

Quality: 2.8

Yield: 10.0

Momentum: 1.0

Volatility: 6.7

1-Year Total Return ->

Union Bankshares

A-Score: 4.8/10

Value: 5.1

Growth: 4.8

Quality: 4.6

Yield: 5.0

Momentum: 3.5

Volatility: 6.0

1-Year Total Return ->

First Guaranty Bancshares

A-Score: 3.6/10

Value: 6.5

Growth: 4.8

Quality: 2.8

Yield: 3.0

Momentum: 1.0

Volatility: 3.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

1.40%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.40%

Union Bankshares, Inc. - US9054001071

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on UNB

1.c. Company Highlights

Fairly Valued

Average Yield

Stable Momentum

Medium Volatility

Better Quality

Cheaper

Weak Momentum

Average Growth

Average Quality

Strong Momentum

Lower Quality

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Banking and Related Activities

Expected Growth: 4.5%

7. Detailed Products

Consumer Banking

Commercial Banking

Mortgage Banking

Wealth Management

Card Services

Treasury Management

8. Union Bankshares, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Union Bankshares, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

23.01$

Current Price

23.01$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA