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.

Snowflake

Flawless balance sheet second-rate dividend payer.


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Southern National Bancorp of Virginia

NasdaqGM:SONA

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.08%

UNB

-0.7%

US Banks

0.4%

US Market


1 Year Return

-21.7%

UNB

10.4%

US Banks

13.1%

US Market

Return vs Industry: UNB underperformed the US Banks industry which returned 10.4% over the past year.

Return vs Market: UNB underperformed the US Market which returned 13.1% over the past year.


Shareholder returns

UNBIndustryMarket
7 Day-0.08%-0.7%0.4%
30 Day8.2%8.3%4.0%
90 Day29.1%19.0%7.4%
1 Year-19.0%-21.7%13.7%10.4%15.6%13.1%
3 Year-0.7%-8.6%40.9%31.0%48.2%38.6%
5 Year69.9%44.8%72.2%53.1%62.6%44.6%

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?

21.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: UNB ($35.33) is trading above our estimate of fair value ($20.42)

Significantly Below Fair Value: UNB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: UNB is poor value based on its PE Ratio (21.2x) compared to the Banks industry average (12.6x).

PE vs Market: UNB is poor value based on its PE Ratio (21.2x) compared to the US market (18.2x).


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 (2.2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

0.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UNB's forecast earnings growth (0.2% per year) is below the savings rate (2.7%).

Earnings vs Market: UNB's earnings (0.2% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: UNB's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if UNB's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if UNB's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if UNB's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Union Bankshares performed over the past 5 years?

0.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UNB has a high level of non-cash earnings.

Growing Profit Margin: UNB's current net profit margins (19%) are lower than last year (25.5%).


Past Earnings Growth Analysis

Earnings Trend: UNB's earnings have grown by 0.6% per year over the past 5 years.

Accelerating Growth: UNB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: UNB had negative earnings growth (-21%) over the past year, making it difficult to compare to the Banks industry average (27.7%).


Return on Equity

High ROE: UNB's Return on Equity (10.6%) is considered low.


Return on Assets


Return on Capital Employed


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 1.1x 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 (0.3%)


Next Steps

Dividend

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

3.51%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: UNB's dividend (3.51%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: UNB's dividend (3.51%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: UNB's dividend payments have been volatile 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 (73.7%), 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

What is the CEO of Union Bankshares's salary, the management and board of directors tenure and is there insider trading?

7.5yrs

Average management tenure


CEO

David Silverman (58yo)

7.5yrs

Tenure

US$542,323

Compensation

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


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD542.32K) is below average for companies of similar size in the US market ($USD1.14M).

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


Management Age and Tenure

7.5yrs

Average Tenure

58yo

Average Age

Experienced Management: UNB's management team is seasoned and experienced (7.5 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

64yo

Average Age

Experienced Board: UNB's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$13,45014 Feb 19
Nancy Putnam
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares300
Max PriceUS$45.00
BuyUS$3,48008 Feb 19
David Silverman
EntityIndividual
Role
Chief Executive Officer
President
Shares74.82
Max PriceUS$46.51

Ownership Breakdown

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


Management Team

  • John Steel (69yo)

    Secretary & Director

    • Tenure: 17.8yrs
    • Compensation: US$43.53k
  • David Silverman (58yo)

    President

    • Tenure: 7.5yrs
    • Compensation: US$542.32k
  • Tricia Hogan

    Senior VP & Senior Risk Officer

    • Tenure: 0yrs
  • Karyn Hale (49yo)

    VP, Treasurer & CFO

    • Tenure: 5.6yrs
    • Compensation: US$204.45k
  • Kristy Alfieri

    Assistant Secretary

    • Tenure: 0yrs

Board Members

  • John Steel (69yo)

    Secretary & Director

    • Tenure: 17.8yrs
    • Compensation: US$43.53k
  • David Silverman (58yo)

    President

    • Tenure: 7.5yrs
    • Compensation: US$542.32k
  • Steve Bourgeois (70yo)

    Independent Director

    • Tenure: 14.5yrs
    • Compensation: US$49.39k
  • Dawn Bugbee (62yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$40.58k
  • Schuyler Sweet (71yo)

    Independent Director

    • Tenure: 11.5yrs
    • Compensation: US$51.50k
  • John Goodrich (69yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$43.63k
  • Neil Van Dyke (65yo)

    Chairman of the Board

    • Tenure: 0.5yrs
    • Compensation: US$43.52k
  • Tim Sargent (43yo)

    Vice Chairman of the Board

    • Tenure: 0.5yrs
    • Compensation: US$40.28k
  • Joel Bourassa (61yo)

    Independent Director

    • Tenure: 0.5yrs
    • Compensation: US$15.30k
  • Nancy Putnam (63yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$35.01k

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$157.891m
  • 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 depositor ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 23:40
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.