NasdaqGM:UNB

Stock Analysis Report

Executive Summary

Union Bankshares, Inc. operates as the bank holding company for Union Bank that provides retail, commercial, and municipal banking services in northern Vermont and New Hampshire.

Rewards

Trading at 11.9% below its fair value

Earnings grew by 50.6% over the past year

Pays a high and reliable dividend of 5.74%

Risk Analysis

No risks detected for UNB from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Union Bankshares's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UNB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.0%

UNB

2.9%

US Banks

5.3%

US Market


1 Year Return

-50.7%

UNB

-27.8%

US Banks

-10.7%

US Market

Return vs Industry: UNB underperformed the US Banks industry which returned -27.8% over the past year.

Return vs Market: UNB underperformed the US Market which returned -10.7% over the past year.


Shareholder returns

UNBIndustryMarket
7 Day3.0%2.9%5.3%
30 Day-27.5%-26.3%-13.6%
90 Day-37.9%-39.3%-19.8%
1 Year-48.9%-50.7%-25.6%-27.8%-8.9%-10.7%
3 Year-41.6%-46.4%-17.1%-23.1%15.5%8.0%
5 Year2.5%-12.5%10.9%-1.7%35.2%20.4%

Price Volatility Vs. Market

How volatile is Union Bankshares's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Union Bankshares undervalued compared to its fair value and its price relative to the market?

11.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UNB ($22.29) is trading below our estimate of fair value ($25.31)

Significantly Below Fair Value: UNB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: UNB is poor value based on its PE Ratio (9.4x) compared to the Banks industry average (8.9x).

PE vs Market: UNB is good value based on its PE Ratio (9.4x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate UNB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: UNB is overvalued based on its PB Ratio (1.4x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Union Bankshares forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-1.2%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Union Bankshares has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Union Bankshares performed over the past 5 years?

1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UNB has high quality earnings.

Growing Profit Margin: UNB's current net profit margins (26.8%) are higher than last year (18.9%).


Past Earnings Growth Analysis

Earnings Trend: UNB's earnings have grown by 1.7% per year over the past 5 years.

Accelerating Growth: UNB's earnings growth over the past year (50.6%) exceeds its 5-year average (1.7% per year).

Earnings vs Industry: UNB earnings growth over the past year (50.6%) exceeded the Banks industry 10.9%.


Return on Equity

High ROE: UNB's Return on Equity (14.8%) is considered low.


Next Steps

Financial Health

How is Union Bankshares's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: UNB has a low level of unsold assets or inventory.

Debt Coverage by Assets: UNB's debt is covered by short term assets (assets are 1.4x debt).


Financial Institutions Analysis

Asset Level: UNB's level of assets compared to its equity is moderate.

Allowance for Bad Loans: UNB has a sufficient allowance for bad loans.

Low Risk Liabilities: UNB's liabilities are made up of primarily low risk sources of funding.

Loan Level: UNB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: UNB's loans are broadly funded by customer deposits.

Level of Bad Loans: UNB has an appropriate level of bad loans (0.52%)


Next Steps

Dividend

What is Union Bankshares's current dividend yield, its reliability and sustainability?

5.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UNB's dividend (5.74%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: UNB's dividend (5.74%) is in the top 25% of dividend payers in the US market (5.37%)


Stability and Growth of Payments

Stable Dividend: UNB's dividends per share have been stable in the past 10 years.

Growing Dividend: UNB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52%), UNB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.9yrs

Average management tenure


CEO

David Silverman (58yo)

7.92s

Tenure

US$542,323

Compensation

Mr. David Scott Silverman has been Chief Executive Officer of Union Bankshares, Inc., since May 16, 2012 and also serves as President and Chief Executive Officer of its subsidiary Union Bank. Mr. Silverman ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD542.32K) is about average for companies of similar size in the US market ($USD605.16K).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Silverman
President7.92yrsUS$542.32k0.43% $433.8k
Karyn Hale
VP, Treasurer & CFO6yrsUS$204.45k0.045% $45.7k
John Steel
Secretary & Director18.25yrsUS$43.53k0.18% $180.0k
Kristy Alfieri
Assistant Secretaryno datano datano data
Patricia Hogan
Senior VP & Senior Risk Officerno datano data0.058% $58.1k

7.9yrs

Average Tenure

58yo

Average Age

Experienced Management: UNB's management team is seasoned and experienced (7.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Silverman
President7.92yrsUS$542.32k0.43% $433.8k
John Steel
Secretary & Director18.25yrsUS$43.53k0.18% $180.0k
Steven Bourgeois
Independent Director14.92yrsUS$49.39k0.045% $45.0k
Dawn Bugbee
Independent Director3.92yrsUS$40.58k0.023% $23.3k
Schuyler Sweet
Independent Director11.92yrsUS$51.50k0.089% $90.0k
John Goodrich
Independent Director5.92yrsUS$43.63k0.025% $24.7k
Cornelius Van Dyke
Chairman of the Board0.92yrUS$43.52k0.053% $53.4k
Timothy Sargent
Vice Chairman of the Board0.92yrUS$40.28k0.043% $42.9k
Joel Bourassa
Independent Director0.92yrUS$15.30k0.0045% $4.5k
Nancy Putnam
Independent Director1.92yrsUS$35.01k0.034% $33.7k

4.9yrs

Average Tenure

64yo

Average Age

Experienced Board: UNB's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Union Bankshares, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Union Bankshares, Inc.
  • Ticker: UNB
  • Exchange: NasdaqGM
  • Founded: 1891
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$100.647m
  • Shares outstanding: 4.47m
  • Website: https://www.ublocal.com

Number of Employees


Location

  • Union Bankshares, Inc.
  • 20 Lower Main Street
  • Morrisville
  • Vermont
  • 5661
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UNBNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJun 1998

Biography

Union Bankshares, Inc. operates as the bank holding company for Union Bank that provides retail, commercial, and municipal banking 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 and commercial real estate loans; consumer loans; and municipal loans; commercial loans for plant and equipment, working capital, real estate renovation, and other business purposes to business owners and investors; and residential real estate loans. In addition, it offers small business administration guaranteed, and residential construction and mortgage loans; online cash management services, including account reconciliation, credit card depository, automated clearing house origination, wire transfers, and night depository services; merchant credit card services; 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 and cards; debit cards; and telephone, Internet, and mobile banking services; home improvement loans and overdraft checking facility against preauthorized lines of credit; customer repurchase agreement sweeps; 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. The company operates 18 banking offices, 2 loan centers, and various ATMs. Union Bankshares, Inc. was founded in 1891 and is headquartered in Morrisville, Vermont. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 08:50
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.