Union Bankshares, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, reflecting notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

As of September 30, 2024, total assets increased to $1.52 billion, up $50.6 million (3.4%) from December 31, 2023. Total loans reached $1.13 billion, a rise of $94 million (9.2%) from $1.03 billion at year-end 2023. However, total deposits decreased significantly by $132.3 million (10.1%) to $1.17 billion, primarily due to declines in noninterest-bearing deposits and savings accounts. Borrowed funds surged to $240.7 million from $65.7 million at the end of 2023, indicating a shift in funding strategy.

In terms of profitability, net income for Q3 2024 was $1.3 million, a decrease of $1.2 million (47.7%) from $2.5 million in Q3 2023. For the nine months ended September 30, 2024, net income totaled $5.8 million, down $2.4 million (29.8%) from $8.2 million in the same period last year. Basic earnings per share for Q3 2024 were $0.29, compared to $0.56 in Q3 2023, while for the nine months, it decreased to $1.27 from $1.82.

The bank's net interest income for Q3 2024 was $9.4 million, slightly up from $9.1 million in Q3 2023. However, for the nine months, net interest income fell to $27.9 million from $28.7 million. The net interest margin decreased to 2.71% for Q3 2024, down from 2.76% in Q3 2023, and to 2.73% for the nine months, compared to 2.95% in the prior year.

Noninterest income for Q3 2024 was $1.6 million, a decline of $862,000 (34.9%) from the previous year, while for the nine months, it decreased by $298,000 (4.1%) to $6.9 million. The decrease was attributed to a loss on the sale of available-for-sale (AFS) debt securities amounting to $1.3 million.

Total noninterest expenses increased by $483,000 (5.4%) in Q3 2024 and by $1.7 million (6.3%) for the nine months, driven by higher salaries, employee benefits, and occupancy costs. The efficiency ratio for Q3 2024 was reported at 83.42%.

Strategically, the company executed a balance sheet repositioning of its investment securities portfolio, selling lower-yielding AFS debt securities and reinvesting in higher-yielding options. The fair value of AFS investment securities decreased to $244.9 million as of September 30, 2024, from $264.4 million at year-end 2023.

Union Bankshares declared cash dividends totaling $4.9 million during the first nine months of 2024, with a quarterly dividend of $0.36 per share announced for payment in November 2024. The company maintained compliance with capital adequacy requirements, with total stockholders' equity increasing to $72.3 million from $65.8 million at the end of 2023.