We are pleased to report first quarter results for Union Bankshares, Inc. Consolidated net income for the three months ended March 31, 2025, was $2.5 million, or $0.55 per share, compared to $2.4 million, or $0.53 per share, for the same period in 2024. Total assets were $1.52 billion as of March 31, 2025, compared to $1.42 billion as of March 31, 2024, an increase of $107.2 million. On April 16, 2025, the Board of Directors declared a cash dividend of $0.36 per share for the quarter payable May 1, 2025, to shareholders of record as of April 26, 2025.

Loan demand was strong in 2024 and through the first three months of 2025 resulting in an increase of $128.0 million, or 12.3%, to reach $1.16 billion as of March 31, 2025, compared to $1.04 billion as of March 31, 2024. 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. Asset quality remains strong with minimal past due loans and no net losses.

Total deposits were $1.18 billion as of March 31, 2025 compared to deposits of $1.17 billion as of March 31, 2024, and included brokered deposits of $31.0 million and $101.5 million for the respective periods. Borrowed funds were $240.7 million as of March 31, 2025 compared to $150.7 million as of March 31, 2024. 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 and while achieving this, we are enhancing the customer experience, proactively identifying customer needs, expanding internal training on products and services, and promoting a collaborative approach amongst all functional areas of the bank. The initiatives will continue through 2025 and beyond.

Consolidated net income was $2.5 million for the quarter of 2025 compared to $2.4 million for the first quarter of 2024, an increase of $84 thousand, or 3.5%. The increase in net income for the comparison periods was due to an increase in net interest income of $1.3 million, partially offset by a decrease of $127 thousand in noninterest income and increases of $465 thousand in credit loss expense and $601 thousand in noninterest expenses. The increase in credit loss expense was to support loan growth and was not due to a deterioration in credit quality.

Locally, snow sports enthusiasts enjoyed an extended season, resulting in a good, but not great, tourism season. Previously planned commercial construction projects are moving forward as planned, though sponsors are in no rush to commit to new projects. Likewise, residential construction continues to be active, with evidence that some homeowners are delaying projects due to economic uncertainty. The economic impact of Federal policy decisions is difficult to discern, making managing a business more challenging than usual. We will continue to manage our company for the long term, for the benefit of all of our stakeholders.

We would like to take this opportunity to remind you of our 134th Annual Meeting of Union Bankshares, Inc., which will be held on May 21, 2025, at 3:00pm at the Stearns Center Performance Space, Vermont State University – Johnson Campus, 337 College Hill Road, Johnson, VT. A reception will be held immediately after the annual meeting.

Neil J. Van Dyke

Chair

David S. Silverman

President & Chief Executive Officer

About Union Bankshares

Union Bankshares, Inc. operates as the holding company for Union Bank, which provides commercial, retail and municipal banking services and asset management services throughout northern Vermont and New Hampshire. Union Bank was founded in 1891 in Morrisville, Vermont, where the Bank’s and its holding company’s headquarters are located. Union Bank operates 18 banking offices, 3 loan centers and several ATMs throughout its geographical footprint.

Union Bank has been helping people buy homes and local businesses create jobs in area communities since opening its doors over 130 years ago. Union Bank has earned an exceptional reputation for residential lending programs and has been recognized by the US Department of Agriculture, Rural Development for the positive impact made in the lives of first time home buyers. Union Bank is consistently one of the top Vermont Housing Finance Agency mortgage originators. Additionally, Union Bank has also been designated as an SBA Preferred lender for its participation in small business lending. Union Bank has received an "Outstanding" rating for its compliance with the Community Reinvestment Act (CRA). An institution in this group has an excellent record of helping to meet the credit needs of its assessment area, particularly in low-and moderate income neighborhoods, in a manner consistent with its resources and capabilities.

Consolidated Balance Sheets

(unaudited, in thousands)

Consolidated Statements of Income

(unaudited, in thousands)

DIRECTORS

Neil J. Van Dyke - Chair

Neil J. Van Dyke - Chair

Timothy W. Sargent - Vice Chair

David S. Silverman - President & CEO

Karyn J. Hale - Chief Financial Officer

Timothy W. Sargent - Secretary

Kristy Adams Alfieri - Assistant Secretary

DIRECTORS

Neil J. Van Dyke - Chair

Michael R. Barrett - St. Johnsbury

Timothy W. Sargent - Vice Chair

Steven J. Bourgeois - St. Albans

Andrew A. Dean - Northern NH

Stanley T. Fillion - Northern NH

Rosemary H. Gingue - St. Johnsbury

John M. Goodrich - Northern NH

Christopher M. Knapp - Northern NH

Coleen K. Kohaut - St. Albans

Justin P. Lavely - St. Johnsbury

Daniel J. Luneau - St. Albans

Samuel H. Ruggiano - St. Albans

Christine A. Sheley - Northern NH

David S. Silverman - All

Union Bank Offices

(ATMs at all Branch Locations)