Company Overview
Union Bankshares, Inc. functions as a bank holding company that manages Union Bank, delivering a comprehensive suite of retail, commercial, and municipal banking products and services across the United States. The institution operates within the Financial Services sector, specifically categorized under the Banks - Regional industry, which typically implies a focus on localized lending and deposit gathering rather than large-scale national or international operations. As of the latest reporting period, the company maintains a market capitalization of $107.28M, generates annual revenue of $53.68M, and employs a workforce of 195 individuals. These specific financial figures indicate that Union Bankshares, Inc. represents a small-cap regional entity, suggesting a business model reliant on deep community relationships and niche market penetration rather than the diversified scale found in large national banking organizations.
Financial Health
The company reports a Trailing Twelve Months (TTM) revenue of $53.68M and a corresponding net income of $11.08M, while EBITDA figures are not available in the current data set. The substantial gap between the $53.68M revenue and the $11.08M net income reveals a cost structure where operating expenses consume a significant portion of top-line revenue, leaving approximately 20.6% as profit after all costs are accounted for. Free cash flow is not disclosed in the available facts, which limits the ability to assess immediate liquidity generation from operations independent of financing activities. The company exhibits a gross margin of 0.0%, a standard characteristic for financial institutions where the cost of funds effectively offsets revenue, resulting in zero gross profit before operating expenses. Operating margins stand at 21.3%, indicating that after covering overhead and salaries, the firm retains a healthy portion of revenue, while profit margins of 20.6% confirm that the final bottom line remains robust relative to total sales. In terms of leverage, the firm holds $21.25M in cash against total debt of $305.17M, though a specific debt-to-equity ratio is not provided in the current dataset. The balance sheet reflects a leveraged position typical for banks, where debt is primarily used to fund loans rather than operational inefficiency. Current ratio data is unavailable, preventing a direct assessment of short-term liquidity via current assets and liabilities, though the substantial cash holding suggests sufficient liquidity reserves. Return on Equity is reported at 15.0%, demonstrating effective utilization of shareholder capital to generate profits, whereas Return on Assets sits at 0.7%, a low figure inherent to the banking industry due to the high asset base required to support lending activities.
Valuation Assessment
The trailing P/E ratio stands at 9.65, while the forward P/E is not available for calculation, creating a scenario where investors cannot directly compare historical valuation against future expectations without additional data. The price-to-book ratio is 1.33, indicating that the market values the company at 33% above its book value, suggesting a modest premium that reflects confidence in the quality of the underlying assets and future earnings potential. Price-to-sales ratio is 2.00, providing an alternative valuation lens that measures earnings relative to revenue, while EV/EBITDA is not available to offer a debt-adjusted valuation perspective. The stock has traded between a 52-week low of $20.65 and a 52-week high of $36.00, defining the volatility range within which the share price has fluctuated over the past year. The beta value is recorded at 0.39, which signifies that the stock's price volatility is significantly lower than the broader market, making it a less sensitive instrument to general market swings compared to large-cap equities.
Growth & Income
Revenue growth year-over-year is recorded at 9.9%, whereas earnings growth year-over-year is -10.1%, indicating that earnings are currently shrinking at a rate much faster than revenue expansion. This divergence suggests that while the top line is expanding, likely driven by loan growth or fee income, the bottom line is being pressured by increased operating costs, lower yields, or one-time charges that are not yet offset by revenue gains. For dividend payers, Union Bankshares, Inc. offers a dividend yield of 6.1%, supported by a payout ratio of 59.8%. This payout ratio indicates that the company retains roughly 40% of its earnings to reinvest in the business, suggesting the dividend is likely sustainable provided earnings do not continue to contract significantly. The high yield relative to the earnings decline warrants close monitoring to ensure the payout does not become unsustainable if the -10.1% earnings trend persists. Overall, the growth and income profile presents a mixed picture of moderate revenue expansion and significant earnings contraction, balanced by a high-yield dividend that offers income but requires scrutiny regarding the company's deteriorating profitability trajectory.