Union Bankshares, Inc. (UNB)
NASDAQ (NMS) NASDAQ (NMS) Primary 
Union Bankshares: Small, But Steady
Union Bankshares, Inc. reported a strong Q1 2026, with net income rising to $3.0 million ($0.65/share), driven by robust net interest income. Loan growth was modest at 1.3% year-over-year, while deposits edged up, reflecting a stable but unspectacular regional economy. Asset quality remains a standout, with a $325,000 credit loss benefit and allowance for credit losses dipping to $8.07 million.
Union Bankshares: I Trust The 5.8% Dividend Yield
Union Bankshares demonstrates robust loan quality, with minimal loans past due and a conservative loan loss provision strategy. UNB reported a Q4 net profit of $2.7M, down 10% YoY, mainly due to increased non-interest expenses, particularly salaries and benefits. The bank's loan book is heavily weighted toward residential and commercial real estate, with strong collateralization supporting low credit risk.
Union Bankshares: Do Not Be Drawn To The High Dividend Yield
Union Bankshares operates in Vermont and New Hampshire with limited growth prospects and faces subpar financial metrics compared to peers. The bank's loan portfolio is heavily concentrated in residential and commercial real estate, exposing it to regional economic risks. Despite a high 5.41% dividend yield, Union Bankshares has not increased its payout since early 2023, signaling limited financial flexibility.
Union Bankshares: Earnings Likely To Recover Soon; Dividend Yield Of 4.9%
Interest rate cuts and tight local labor markets will drive Union Bankshares' loan growth. However, elevated home prices may put a dampener on growth. The recent balance sheet repositioning and the ongoing down-rate cycle will lift the margin. The December 2025 target price suggests a mid-single-digit upside from the October 28 closing price.
