Union Bankshares, Inc. (UNB): Business Model Canvas [Dec-2025 Updated]

You're looking at Union Bankshares, Inc. (UNB) to see how a traditional community bank thrives in late 2025, and the answer is a smart blend of old-school trust and new-school tech. They are definitely leaning into digital to support a core lending business that has pushed total assets to $1.57 billion as of Q3 2025, all while keeping that crucial local touch across their 18 offices. If you want the full breakdown on how they generate $11.2 million in quarterly Net Interest Income and manage the rising cost of funds, the detailed Business Model Canvas below lays out every key piece for you.

Union Bankshares, Inc. (UNB) - Canvas Business Model: Key Partnerships

You're mapping out the critical external relationships Union Bankshares, Inc. (UNB) relies on to execute its business model, especially as of late 2025. These partnerships are key to managing funding, compliance, and service delivery across its Vermont and New Hampshire footprint.

BDMP Assurance, LLP as the independent registered public accounting firm for FY2025

Union Bankshares, Inc. made a change in its external audit relationship late in 2025. The Audit Committee approved the dismissal of Berry, Dunn, McNeil & Parker, LLC, effective November 19, 2025. Concurrently, the Board engaged BDMP Assurance, LLP as the new independent registered public accounting firm for the fiscal year ending December 31, 2025. This move involved a transition to a firm partially owned by partners of the outgoing auditor, and prior audit reports for fiscal years 2023 and 2024 were clean, without adverse opinions or modifications. This signals a focus on maintaining clean reporting standards heading into the next filing cycle.

Federal Home Loan Bank (FHLB) for wholesale funding and liquidity management

The Federal Home Loan Bank remains a significant source of wholesale funding for Union Bankshares, Inc., used to supplement core deposits and manage liquidity. As the bank continues its loan growth, reliance on this channel has been noted in recent filings, though management has expressed a focus on growing core deposits to replace wholesale funds over time. The balance of these advances has fluctuated slightly through 2025.

Here are the reported FHLB advance balances:

This shows a notable increase in FHLB utilization between mid-2024 and mid-2025 to support asset growth, reaching over $270 million by the third quarter of 2025.

IntraFi Network Deposits to offer expanded FDIC insurance to commercial clients

Union Bankshares, Inc. utilizes services like the IntraFi Network Deposits program to help commercial clients manage large cash balances while securing expanded FDIC insurance coverage beyond the standard limits. This partnership is crucial for retaining high-value commercial operating accounts that might otherwise seek placement at larger institutions to manage insurance risk. The bank has an ongoing company-wide deposit growth initiative in 2025 aimed at increasing core customer deposits to fund loan demand, which complements the wholesale funding sources.

• Offers full FDIC insurance on deposits exceeding $250,000.00.
• Provides clients with a single account statement for consolidated funds.
• Utilizes online tools for tracking monthly program withdrawals.

Correspondent banks for check clearing and complex transaction services

Like most regional banks, Union Bankshares, Inc. depends on correspondent banks for essential operational functions that are not cost-effective to maintain in-house, such as extensive check clearing networks and specialized processing for complex transactions. While specific correspondent bank names aren't detailed in recent public reports, the bank's liquidity management reflects these external relationships. For instance, Federal funds sold and overnight deposits declined by 28.6% as of September 30, 2025, which reflects strategic liquidity management, likely involving the optimization of balances held with correspondent partners.

The bank's operational footprint includes:

• 18 banking offices.
• Three loan centers.
• Multiple ATMs across northern Vermont and New Hampshire.

Finance: draft 13-week cash view by Friday.

Union Bankshares, Inc. (UNB) - Canvas Business Model: Key Activities

You're looking at the core engine of Union Bankshares, Inc. (UNB) operations as of late 2025. The Key Activities are where the rubber meets the road, turning their balance sheet into earnings.

The primary activity centers on the full lifecycle of lending. This involves commercial, residential, and consumer loan origination and servicing. Management specifically highlighted activity in loan originations and secondary market mortgage sales, reporting $46.0 million in such sales during the third quarter of 2025. This activity supports the overall loan portfolio, which grew 5.1% year-over-year to stand at $1.18 billion as of September 30, 2025.

A critical activity is managing the funding side of the balance sheet, which includes managing a deposit base of approximately $1.2 billion as of Q3 2025, as you noted. This funding base supports the asset side of the business. The bank's total assets reached $1.57 billion by the end of Q3 2025.

Another core function is asset/liability management to optimize net interest margin (NIM). This is clearly paying off, as Net Interest Income (NII) increased 18.3% year-over-year to reach $11.16 million in Q3 2025. The bank is focused on NIM momentum, driven by increasing higher-yielding assets and the runoff of lower-yielding ones.

Finally, Union Bankshares, Inc. (UNB) is active in providing wealth management and trust services to individuals and nonprofits. This contributes to the noninterest income stream, which rose to $3.05 million in Q3 2025.

Here's a quick look at some key operational and financial metrics underpinning these activities for Q3 2025:

The operational focus also involves maintaining strong credit quality while managing expenses. You can see the commitment to shareholder returns through the declared quarterly cash dividend of $0.36 per share.

The key operational focus areas supporting the revenue generation include:

• Origination and secondary market mortgage sales of $46.0 million in Q3
• Growing the loan portfolio by 5.1% year-over-year
• Increasing the allowance for credit losses (ACL) on loans by 14.0%
• Maintaining a strong book value per share at $16.95

The bank is definitely focused on disciplined asset growth and prudent expense management moving forward. Finance: draft the Q4 2025 expense forecast by next Tuesday.

Union Bankshares, Inc. (UNB) - Canvas Business Model: Key Resources

You're looking at the core assets Union Bankshares, Inc. (UNB) relies on to execute its business model, and honestly, these are the numbers that matter right now.

Financial Capital is foundational, of course. As of September 30, 2025, Union Bankshares, Inc. reported total assets standing at $1.57 billion. That's the scale of the balance sheet we're working with.

The primary deployment of that capital is in the Loan Portfolio. Net loans totaled approximately $1.18 billion at that same date. This concentration shows where the core earning engine is focused. Here's a quick look at how the asset side breaks down based on those figures:

Human Capital is the next big piece. You can't run a community bank without good people on the ground. Union Bankshares, Inc. maintains a staff of 191 employees. This team supports the operations across the footprint. What this estimate hides is the depth of local expertise; it's defintely a key differentiator for them.

• Experienced local management teams
• Staff count of 191 professionals
• Focus on relationship banking personnel

Physical Network represents the tangible touchpoints for customers and loan officers. Union Bankshares, Inc. operates a network designed for regional coverage. They maintain 18 banking offices. To support commercial and specialized lending activities, they also run 3 dedicated loan centers.

These physical locations, combined with the digital infrastructure you'd expect, form the delivery mechanism for their value proposition. The physical footprint supports the relationship-driven service model.

• Total Banking Offices: 18
• Dedicated Loan Centers: 3

Finance: draft 13-week cash view by Friday.

Union Bankshares, Inc. (UNB) - Canvas Business Model: Value Propositions

You're looking at what Union Bankshares, Inc. (UNB) actually offers its clients, the core value it delivers. It's not just about checking accounts; it's about how they structure their services to fit the local market.

Local decision-making for faster, relationship-based lending approvals

The value here is proximity and speed, which is key when you need capital. Being a community bank means decisions aren't made three states away. This focus supports their strong loan origination capabilities. For instance, as of September 30, 2025, total loans stood at $1.18 billion, reflecting a 5.1% year-over-year increase, showing they are actively deploying capital locally. Furthermore, Union Bankshares, Inc. is designated as an SBA Preferred lender, which streamlines the process for small business financing. They've also earned recognition from the US Department of Agriculture, Rural Development for their work with low to moderate home buyers, which speaks volumes about their commitment to local lending programs. Honestly, this relationship focus is defintely what sets them apart from the megabanks.

Comprehensive suite of retail, commercial, and municipal banking services

Union Bankshares, Inc. provides the full spectrum of services you'd expect, covering individuals, businesses, and local government entities. This breadth supports their overall balance sheet strength. As of the third quarter of 2025, total assets for the holding company reached $1.57 billion, supported by total deposits of $1.19 billion at the same date. They don't just do one thing well; they cover the whole community's needs. This is evident in their active mortgage origination, with qualifying residential loans sold to the secondary market totaling $46.0 million in Q3 2025 alone.

The services portfolio includes:

• Retail banking for individuals.
• Commercial banking for small and medium-sized corporations.
• Services for nonprofit organizations and local municipalities.
• Strong residential lending programs.

Stability and trust as a community bank founded in 1891

Trust is built over time, and Union Bankshares, Inc. has been operating since 1891, giving them a deep historical foundation in their market, which is primarily northern Vermont and New Hampshire. This long tenure suggests resilience. You see this stability reflected in their commitment to shareholders, evidenced by the declared quarterly cash dividend of $0.36 per share as of Q3 2025. Their book value per share also grew to $16.95 as of September 30, 2025, up 6.1% year-over-year, showing capital strength. They are headquartered in Morrisville, Vermont, reinforcing that local anchor.

Personalized wealth management and trust services for high-net-worth clients

Beyond core banking, Union Bankshares, Inc. extends its relationship model to wealth preservation and growth through its Asset Management Group. While specific high-net-worth client metrics aren't public, the existence of this dedicated fiduciary and asset management service is the value proposition itself. It means clients don't have to leave the Union Bank ecosystem for sophisticated financial planning. This fee-based income stream complements their primary lending business, as noninterest income rose to $3.05 million in Q3 2025.

Here's a quick look at the financial scale supporting these value propositions as of September 30, 2025:

Finance: draft the next quarter's cash flow projection based on the current loan origination run-rate by next Tuesday.

Union Bankshares, Inc. (UNB) - Canvas Business Model: Customer Relationships

You're looking at how Union Bankshares, Inc. (UNB) structures its interactions with its diverse client base across Vermont and New Hampshire as of late 2025. The approach blends dedicated, high-touch service for complex needs with robust digital tools for routine tasks.

Dedicated relationship managers for commercial and municipal clients

Union Bankshares, Inc. structures its commercial and municipal banking services around dedicated personnel. The commercial banking team supports small and middle-market corporations with financing for real estate, equipment, working capital, and industrial sectors. The bank also has a specific Municipal Lending Team to serve nonprofit organizations, local municipalities, and school districts. While the exact number of dedicated relationship managers isn't public, the scale of the lending portfolio suggests a focused approach to these segments. For instance, as of March 31, 2025, the Company serviced $\mathbf{\$36.4}$ million of commercial and commercial real estate loans for unaffiliated third parties. This structure is necessary to manage the $\mathbf{\$1.18}$ billion in total loans held by Union Bankshares, Inc. as of September 30, 2025.

High-touch, personalized service model at branch locations

The physical presence supports this personalized model. Union Bankshares, Inc. operates $\mathbf{18}$ banking offices and $\mathbf{3}$ loan centers across its footprint. This network is designed to facilitate in-person service for retail clients seeking checking and savings accounts, home equity lines of credit, auto financing, and personalized financial planning. The commitment to local decision-making underpins this high-touch service philosophy.

Quarterly relationship reviews for business banking clients

For business banking clients, Union Bankshares, Inc. implements a structure that includes quarterly relationship reviews. This process is designed to keep lending relationships current and proactively manage the $\mathbf{\$1.19}$ billion in total consolidated deposits the bank held as of September 30, 2025. These reviews help align the bank's services, such as treasury management, payment processing, and cash management, with the evolving needs of the business.

Self-service digital banking platforms for day-to-day transactions

To handle routine, day-to-day banking, Union Bankshares, Inc. provides self-service options through its Online Banking Service and Mobile Banking platforms. This digital layer supports the $\mathbf{\$1.19}$ billion deposit base. A focus on core deposits is evident, as the bank held $\mathbf{\$232.6}$ million in non-interest-bearing accounts at the end of Q1 2025. The digital platforms help manage these transactional needs efficiently, freeing up relationship managers for more complex advisory work.

Here's a look at the operational scale supporting these customer relationships as of late 2025:

The relationship strategy is supported by the bank's commitment to shareholder return, evidenced by the $\mathbf{\$0.36}$ per share quarterly cash dividend declared in Q3 2025.

The key service channels available to clients include:

• Commercial Lending Team support.
• Municipal Lending Team engagement.
• Wealth Management Investment Management.
• Online Banking Service access.
• Mobile Banking functionality.

Finance: draft 13-week cash view by Friday.

Union Bankshares, Inc. (UNB) - Canvas Business Model: Channels

You're looking at how Union Bankshares, Inc. (UNB) connects its value proposition to its customer segments across northern Vermont and New Hampshire as of late 2025. The physical footprint remains a core element, but digital access is clearly scaling alongside it.

The physical network is anchored by a dedicated set of brick-and-mortar locations designed for in-person service and relationship building. As of September 30, 2025, Union Bankshares, Inc. operates:

• Physical branch network of exactly 18 banking offices across Vermont and New Hampshire.
• Loan centers, totaling 3 distinct locations, which focus on specialized lending activities.
• Multiple ATMs providing cash access throughout the service area.

This physical presence supports total consolidated assets of $1.57 billion as of the third quarter of 2025. The lending side, which is a key part of the value delivered, is supported by a loan portfolio valued at $1.18 billion on that date.

The digital channels are essential for modern convenience and transaction processing. These platforms allow Union Bankshares, Inc. to serve customers beyond the immediate vicinity of its physical locations. The digital offering includes:

• Online banking services for account management.
• A dedicated mobile app for banking on the go.
• Telebanking services for remote customer support.

Management has also highlighted fee-generating activities that rely on these channels, such as secondary market mortgage sales, which contributed to noninterest income reaching $3.05 million in the third quarter of 2025. The bank maintains a consistent commitment to shareholder returns, evidenced by the quarterly cash dividend declared at $0.36 per share in Q3 2025.

Here's a quick look at the physical distribution as of late 2025:

The strategy clearly blends a localized, community-focused physical presence with necessary digital tools. Finance: draft 13-week cash view by Friday.

Union Bankshares, Inc. (UNB) - Canvas Business Model: Customer Segments

Union Bankshares, Inc. (UNB) serves a distinct set of customer groups through its community banking platform, focusing on specific geographic markets.

The primary operational footprint for Union Bankshares, Inc. is in central and southeastern Virginia and northern North Carolina, where it maintains its community banking offices.

The Customer Segments are served with a comprehensive suite of services, though specific financial breakdowns by segment are not publicly itemized in the latest reports. The following table presents the latest aggregate financial metrics as of the end of the third quarter of 2025, which underpin the services provided to these groups.

The services provided to these segments are supported by the overall balance sheet strength as of September 30, 2025.

• Total Consolidated Assets: $1.57 billion
• Total Consolidated Deposits: $1.19 billion
• Total Net Loans: $1.18 billion
• Allowance for Credit Losses on Loans: Increased 14.0% over the comparison period.

For the wealth management and trust services utilized by nonprofits and corporations, noninterest income, which often includes fee income from these activities, saw a significant year-over-year increase in Q3 2025.

• Total Noninterest Income (Q3 2025): Rose to $3.05 million.
• Year-over-year increase in Noninterest Income (Q3 2025): 108.7%, driven partly by the absence of a prior year securities loss.

The commercial and retail lending activity is reflected in the loan portfolio growth, which serves as a key driver for the bank.

• Loan Growth (Year-over-Year as of Q3 2025): Increased 5.1%.
• Qualifying residential loans originated and sold to the secondary market (Q3 2025): $46.0 million.

The bank maintains a physical presence to serve these local segments.

• Number of Banking Offices: 18.
• Number of Loan Centers: Three.

Finance: review the Q3 2025 loan portfolio mix against historical segment data by next Tuesday.

Union Bankshares, Inc. (UNB) - Canvas Business Model: Cost Structure

You're looking at the expenses that drive the operations for Union Bankshares, Inc. as of late 2025. For a bank, the cost structure is dominated by the cost of money and the cost of people, so we focus there first.

Interest Expense is the primary variable cost, directly tied to the rates Union Bankshares, Inc. pays on its funding sources. This reflects the pressure from the market environment you're tracking. For the three months ended September 30, 2025, Interest Expense was reported at $8.1 million, a sequential increase of 3.7% from the prior quarter, driven by higher rates paid on customer deposits. This compares to $8.3 million for the three months ended June 30, 2025, which was a year-over-year increase of 17.1%.

Personnel Costs are the largest part of noninterest expense. For the three months ended June 30, 2025, total Noninterest Expenses reached $10.5 million, up 7.2% from the prior year period. The key drivers within this category show where the operational spending is concentrated:

• Salaries and wages increased by $311 thousand for Q2 2025.
• Salaries and wages saw a larger increase of $421 thousand for Q3 2025.
• Employee benefits increased by $340 thousand in Q2 2025.
• Employee benefits decreased by $116 thousand in Q3 2025.

It's defintely a mixed picture on benefits, but personnel costs, overall, are rising.

Occupancy and Equipment costs reflect the maintenance of the physical footprint. Union Bankshares, Inc. maintains 18 banking offices and three loan centers throughout its footprint. Here's how those specific costs trended in the recent quarters:

Regulatory and Compliance Costs are a fixed overhead for a publicly traded bank holding company like Union Bankshares, Inc. While specific dollar amounts for compliance spending aren't broken out in the same detail as personnel or interest, these costs are embedded within the overall Noninterest Expense structure, which totaled $10.3 million for the three months ended September 30, 2025.

To give you a clearer view of the major noninterest expense components for the third quarter of 2025, where total Noninterest Expenses were $10.3 million, here is the reported change:

Finance: draft 13-week cash view by Friday.

Union Bankshares, Inc. (UNB) - Canvas Business Model: Revenue Streams

You're looking at the core ways Union Bankshares, Inc. (UNB) brings in money as of late 2025. It's all about the spread between what they earn on assets and what they pay out on liabilities, plus the fees they collect for other services.

Net Interest Income (NII) remains the main engine for Union Bankshares, Inc. revenue. For the three months ended September 30, 2025, the reported NII was $11.2 million. This shows solid performance, up from $9.4 million in the same period last year.

The interest earned on the lending side is a huge component of that NII. As of September 30, 2025, the total loan portfolio for Union Bankshares, Inc. stood at $1.18 billion. This loan book is primarily made up of real estate secured loans.

Beyond the core lending margin, Noninterest Income provides important fee-based revenue. For the third quarter of 2025, Noninterest Income rose to $3.05 million. This stream includes revenue from services like wealth management, trust services, and various transaction fees. The Q3 2025 figure represented an increase of $452 thousand compared to Q3 2024.

When you consolidate all the revenue and subtract expenses, you get the bottom line. Consolidated net income for Union Bankshares, Inc. for the nine months ended September 30, 2025, was $8.3 million. This compares favorably to the $5.8 million reported for the same nine-month period in 2024.

Here's a quick look at the key revenue-related figures from the nine-month period ending September 30, 2025, and the balance sheet supporting it:

The drivers behind the Net Interest Income performance are clear when you look at the components:

• Interest Income (Q3 2025): $19.21 million
• Interest Expense (Q3 2025): $8.05 million
• Net Interest Income (Q3 2025): $11.16 million to $11.2 million range
• Net Interest Margin (Q3 2025): 3.80%

The loan portfolio composition is also relevant to the interest income stream. At March 31, 2025, the portfolio breakdown was:

• Real estate secured loans: $1.02 billion (87.2% of total loans)
• Residential real estate loans (as of Q2 2025): $463.3 million (39.9% of gross loans)
• Commercial real estate loans (as of Q2 2025): $440.8 million (38.0% of gross loans)

Finance: draft 13-week cash view by Friday.