three and nine months ended September 30, 2026
Filed Oct 21, 2026Third-quarter net income was $3.8 million, or $0.77 per share, compared to $3.4 million, or $0.75 per share, while nine-month net income was $9.7 million, or $2.03 per share.
Quarterly earnings increased as net interest income rose $988 thousand and credit loss expense declined, offsetting lower noninterest income and higher noninterest expenses. Balance-sheet growth was led by loans and investment securities, while accumulated other comprehensive loss increased and book value per share declined.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income (3 months ended September 30)GAAP | $3.77M | – | $332 thousand |
| Earnings per share (3 months ended September 30)GAAP | $ 0.77 | – | – |
| Interest income (3 months ended September 30)GAAP | $20.36M | – | $1.2 million, or 6.6% |
| Interest expense (3 months ended September 30)GAAP | $8.22M | – | $168 thousand, or 2.2% |
| Net interest income (3 months ended September 30)GAAP | $12.14M | – | $988 thousand, or 10.0% |
| Credit loss expense (3 months ended September 30)GAAP | $34K | – | decrease of $279 thousand |
| Net interest income after credit loss expense (3 months ended September 30)GAAP | $12.11M | – | – |
| Wealth management income (3 months ended September 30)GAAP | $327K | – | – |
| Noninterest income (3 months ended September 30)GAAP | $2.52M | – | – |
| Net gains on sales of qualifying residential mortgages (3 months ended September 30)GAAP | $553K | – | – |
| Salaries & wages (3 months ended September 30)GAAP | $4.39M | – | decrease of $48 thousand |
| Employee benefits (3 months ended September 30)GAAP | $1.61M | – | increase of $205 thousand |
| Occupancy expense, net (3 months ended September 30)GAAP | $555K | – | increase of $31 thousand |
| Equipment expense (3 months ended September 30)GAAP | $1.18M | – | increase of $81 thousand |
| Other expenses (3 months ended September 30)GAAP | $2.88M | – | – |
| Total noninterest expenses (3 months ended September 30)GAAP | $10.61M | – | $269 thousand, or 2.6% |
| Income before taxes (3 months ended September 30)GAAP | $4.34M | – | – |
| Income tax expense (3 months ended September 30)GAAP | $573K | – | increase of $159 thousand |
| Net income (9 months ended September 30)GAAP | $9.70M | – | – |
| Earnings per share (9 months ended September 30)GAAP | $ 2.03 | – | – |
| Interest income (9 months ended September 30)GAAP | $59.95M | – | – |
| Interest expense (9 months ended September 30)GAAP | $24.89M | – | – |
| Net interest income (9 months ended September 30)GAAP | $35.06M | – | – |
| Credit loss expense (benefit) (9 months ended September 30)GAAP | −$116K | – | – |
| Net interest income after credit loss (benefit) expense (9 months ended September 30)GAAP | $35.17M | – | – |
| Wealth management income (9 months ended September 30)GAAP | $960K | – | – |
| Noninterest income (9 months ended September 30)GAAP | $7.62M | – | – |
| Total noninterest expenses (9 months ended September 30)GAAP | $32.86M | – | – |
| Income before taxes (9 months ended September 30)GAAP | $10.90M | – | – |
| Income tax expense (9 months ended September 30)GAAP | $1.20M | – | – |
| Total assetsGAAP | $1.64B | – | growth of $62.6 million, or 4.0% |
| Cash and due from banksGAAP | $5.27M | – | – |
| Federal funds sold & overnight depositsGAAP | 18.06M | – | – |
| Interest bearing deposits in banksGAAP | 6.96M | – | – |
| Investment securitiesGAAP | $282.1M | – | $19.7 million, or 7.5% |
| Loans held for saleGAAP | $5.17M | – | – |
| Loans, netGAAP | 1.23B | – | $52.5 million |
| Allowance for credit lossesGAAP | −$8.60M | – | – |
| Premises and equipment, netGAAP | 21.09M | – | – |
| Accrued interest & other assetsGAAP | 77.59M | – | – |
| Total depositsGAAP | $1.25B | – | – |
| Borrowed fundsGAAP | $271.1M | – | – |
| Subordinated notesGAAP | 16.33M | – | – |
| Total stockholders' equityGAAP | $78.8M | – | – |
| Book value per shareGAAP | $ 15.94 | – | – |
| Accumulated other comprehensive lossGAAP | $40.7M | – | – |
| Standby letters of creditother | $1,747,000 | – | – |
Capital returns
- The Board of Directors declared a cash dividend of $0.36 per share for the quarter.
- The dividend is payable November 5, 2026 to shareholders of record as of October 31, 2026.
- There were 384,066 shares of the Company's stock sold resulting in net proceeds, after expenses, of $8.6 million through September 30, 2026.
What drove it
- Net interest income improved $988 thousand, or 10.0%, driven by a larger earning asset base and higher interest rates on those assets.
- The reduction in credit loss expense was primarily related to the size and mix of the loan portfolio and unfunded commitments at September 30, 2026.
- Total asset growth was driven by increases in the securities and loan portfolios.
- The increase in stockholders' equity was due in part to sales of common stock under the equity distribution agreement previously announced on May 20, 2025.
Concerns
- Noninterest income was $2.8 million for the third quarter of 2026 compared to $3.3 million for the same period in 2025.
- Sales of qualifying mortgage loans were $94.9 million for the nine months ended September 30, 2026 compared to $102.8 million for the nine months ended September 30, 2025.
- Accumulated other comprehensive loss was $40.7 million at September 30, 2026 compared to $27.5 million as of September 30, 2025, contributing to the decrease in book value per share.
- Purchased brokered deposits were $110.8 million as of September 30, 2026 compared to $65.3 million as of September 30, 2025.
What to watch
- The size and mix of the loan portfolio and unfunded commitments, which affected third-quarter credit loss expense.
- Mortgage loan sales and net gains on qualifying residential mortgage sales.
- The fair market value adjustment for investment securities and its effect on accumulated other comprehensive loss and book value per share.
- Deposit composition, including purchased brokered deposits, and borrowed-fund levels.
Balance sheet and cash flow
- Total assets reached $1.64 billion as of September 30, 2026 from $1.57 billion as of September 30, 2025.
- Investment securities increased to $282.0 million as of September 30, 2026 compared to $262.4 million as of September 30, 2025.
- Total loan growth was $52.5 million during the comparison periods with outstanding balances of $1.23 billion as of September 30, 2026.
- Total deposits were $1.25 billion as of September 30, 2026 compared to $1.19 billion as of September 30, 2025, and included purchased brokered deposits of $110.8 million and $65.3 million for the respective periods.
- Borrowed funds were $271.1 million as of September 30, 2026 and consisted of Federal Home Loan Bank advances of $241.1 million and Federal Reserve borrowings of $30.0 million compared to Federal Home Loan Bank advances of $270.8 million as of September 30, 2025.
- Operating cash flow and free cash flow were not reported.
Analysis
Union Bankshares reported higher third-quarter and nine-month earnings. Third-quarter net income was $3.8 million, or $0.77 per share, compared with $3.4 million, or $0.75 per share, in the same period of 2025. For the nine months ended September 30, 2026, net income was $9.7 million, or $2.03 per share, compared with $8.3 million, or $1.83 per share.
The quarterly improvement was led by net interest income, which increased $988 thousand, or 10.0%, as interest income rose $1.2 million, or 6.6%, while interest expense increased $168 thousand, or 2.2%. Credit loss expense declined to $34 thousand from $313 thousand, primarily because of the size and mix of the loan portfolio and unfunded commitments. These gains were partly offset by lower noninterest income, higher noninterest expenses, and higher income tax expense.
The balance sheet expanded, with total assets reaching $1.64 billion from $1.57 billion. Investment securities increased to $282.0 million and total loan growth was $52.5 million, with outstanding loan balances of $1.23 billion. Deposits totaled $1.25 billion, including purchased brokered deposits of $110.8 million. Borrowed funds were $271.1 million, including Federal Home Loan Bank advances of $241.1 million and Federal Reserve borrowings of $30.0 million.
Mortgage activity was softer in the reported comparisons. Sales of qualifying mortgage loans were $94.9 million for the nine months ended September 30, 2026 versus $102.8 million in the prior-year period, while third-quarter net gains on sales of qualifying residential mortgages were $553 thousand versus $700 thousand. Noninterest expenses rose $269 thousand, or 2.6%, with increased employee benefits, equipment expense, and occupancy and other expenses partly offset by lower salaries and wages.
Capital increased in part through 384,066 shares sold under the equity distribution agreement, generating net proceeds of $8.6 million through September 30, 2026. However, book value per share declined to $15.94 from $16.95 as accumulated other comprehensive loss rose to $40.7 million from $27.5 million, reflecting the fair market value adjustment for investment securities. The Board declared a $0.36 per-share cash dividend payable November 5, 2026. The release did not provide forward guidance.
Management, verbatim
Union Bankshares strong financial performance reflects the strength of our foundation, the trust our customers place in us, and the dedication our employees bring to serving our communities every day.
Jeffrey F. Weidley, President and Chief Executive Officer
By staying focused on relationships, exceptional customer service, and sound financial management, we delivered another quarter of strong earnings while helping our customers and communities succeed.
Jeffrey F. Weidley, President and Chief Executive Officer
Not in the filing
stated, not guessed- Forward revenue, earnings, expense, tax-rate, margin, loan-growth, deposit-growth, credit-quality, capital, or dividend guidance
- Prior-quarter comparisons for reported income-statement and balance-sheet metrics
- Gross margin, operating income, operating margin, and tax rate
- Operating cash flow and free cash flow
- Share repurchases
- Segment revenue disclosures
- Total revenue disclosure
- Non-GAAP financial measures
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.