Union Bankshares, Inc. (UNB): Marketing Mix Analysis [Dec-2025 Updated]

You're looking to map out exactly how Union Bankshares, Inc. (UNB) is positioning itself in the current, rate-sensitive banking environment, and honestly, the numbers tell a clear story. As of late 2025, this community player is balancing aggressive loan pricing-driving Net Interest Income up 18.3% to $11.2 million in Q3-with a deep commitment to its Northern Vermont and New Hampshire footprint, evidenced by 18 physical offices. We need to see how their core product suite, supporting a $1.18 billion loan book, aligns with their community-first promotion strategy and their current pricing discipline, especially with funding costs still high. So, let's break down the four P's to see the full picture of their late-2025 market strategy right now.

Union Bankshares, Inc. (UNB) - Marketing Mix: Product

Union Bankshares, Inc. provides a full-service banking platform. This encompasses retail banking services for individuals, commercial banking for small and medium-sized corporations, partnerships, sole proprietorships, and municipal banking for local municipalities and school districts. You're looking at a comprehensive offering that supports both personal and business financial needs across its operating footprint in northern Vermont and New Hampshire.

The core lending engine of Union Bankshares, Inc. showed significant scale as of the third quarter of 2025. The core loan portfolio reached $1.18 billion as of September 30, 2025. This growth in lending is a primary driver of the company's asset expansion. The bank's lending activities are concentrated in specific asset classes designed to serve its regional market.

The development of the product suite also heavily features specialized services. Wealth management and fiduciary services are delivered through the dedicated Asset Management Group. Furthermore, the treasury management suite supports business clients with services like online cash management.

The composition of the loan portfolio, which underpins the lending product, shows a heavy concentration in real estate secured loans. While the total portfolio stood at $1.18 billion on September 30, 2025, the most granular breakdown available from earlier in 2025 shows the following allocation:

The digital component of the product offering is designed to support these core banking activities. These platforms help customers manage their accounts remotely, which is key for modern banking convenience. You can expect standard features to be available.

• Digital platforms support mobile check deposit.
• Online cash management services are available for business users.
• The bank offers a full suite of deposit accounts alongside lending.
• The lending focus includes residential, commercial real estate, and consumer loans.

Union Bankshares, Inc. (UNB) - Marketing Mix: Place

You're looking at how Union Bankshares, Inc. gets its services into the hands of its community, and for a community bank, that means a very physical footprint, supplemented by digital access. Union Bankshares, Inc. operates as a community bank primarily across Northern Vermont and New Hampshire. This local focus dictates the placement strategy, keeping services close to the customer base it serves, which includes individuals, small to medium-sized corporations, and local municipalities.

The physical distribution network is quite specific for this regional focus. Union Bank operates 18 banking offices and three dedicated loan centers throughout its geographical footprint. This physical presence is critical for relationship banking, a core component of community banking strategy. To give you a sense of the scale of the operation supporting this distribution, total assets reached $1.57 billion as of the Q3 2025 reporting period, September 30, 2025.

Here's a quick look at the balance sheet metrics tied to the scale of operations as of September 30, 2025:

Still, the distribution strategy isn't just about brick-and-mortar; it's definitely omni-channel, which is standard for modern financial institutions. The availability of services is managed across several touchpoints to ensure access when and where the customer needs it.

• Operates as a community bank primarily across Northern Vermont and New Hampshire.
• Physical distribution network includes 18 banking offices and three dedicated loan centers.
• Total assets were $1.57 billion as of the Q3 2025 reporting period.
• Distribution is omni-channel, utilizing branches, ATMs, telebanking, and internet access.

Union Bankshares, Inc. (UNB) - Marketing Mix: Promotion

Your promotional strategy definitely hinges on being seen as a local partner, which is why Union Bankshares, Inc. focuses heavily on community involvement. To support this, the bank allocates approximately $1.2 million annually toward local community banking marketing initiatives. This effort targets 45 counties across the primary service regions in northern Vermont and New Hampshire, ensuring the message resonates where you operate.

Management is executing a company-wide deposit growth initiative to fund loan demand. This focus, emphasized as far back as Q1 2025, is designed to shift the funding mix away from wholesale reliance, which included a sharp year-over-year fall in brokered deposits from $101.5 million in Q1 2024 to $31.0 million in Q1 2025. You need core deposits to fuel that loan book. Still, the loan portfolio grew, reaching $1.18 billion as of September 30, 2025, a 5.1% increase year-over-year.

When speaking to investors, the message is clearly about recovery and strong performance. Investor relations definitely highlights the Q3 2025 net income of $3.4 million, a significant improvement over the $1.3 million reported for the same period in 2024. This recovery supports the narrative of disciplined asset growth and prudent expense management you're pushing. Also, the Board declared a quarterly cash dividend of $0.36 per share for the quarter payable November 6, 2025.

Marketing emphasizes long-term lending relationships to support regional economies, which ties directly into the balance sheet strength. The total assets reached $1.57 billion as of September 30, 2025. To show commitment to this lending focus, qualifying residential loans originated and sold to the secondary market in Q3 2025 totaled $46.0 million. You're showing the market that the relationship focus translates into tangible asset expansion. Here's a quick look at the key financial context supporting these promotional themes:

To back up the community involvement claims, you can point to specific operational and engagement metrics:

• Annual allocation to local community banking marketing: $1.2 million
• Number of counties targeted by local marketing: 45
• Number of banking offices operated: 18
• Number of loan centers operated: 3
• Residential loans sold to secondary market (Q3 2025): $46.0 million

If you're looking at the digital side of promotion, one analysis suggested digital marketing expenditure reaches $675,000 annually, with specific platform followings like 22,500 Facebook followers. Also, Union Bankshares, Inc. invests $450,000 in relationship management training. Finance: finalize the Q4 2025 marketing budget allocation by end of January.

Union Bankshares, Inc. (UNB) - Marketing Mix: Price

You're looking at how Union Bankshares, Inc. prices its services, which is really about managing the spread between what it earns on assets and what it pays for liabilities. The environment in late 2025 has definitely required active management here.

• - Net Interest Income (NII) increased 18.3% year-over-year to $11.2 million in Q3 2025.
• - Funding costs remain elevated due to higher rates paid on customer deposits.
• - Loan pricing is aggressive, originating new loans at current, higher market rates.
• - The quarterly cash dividend is set at $0.36 per share, reflecting capital management.
• - Pricing strategy is actively adjusted based on Federal Reserve policy and regional competition.

The core of the pricing power is evident in the Net Interest Income (NII) performance for the third quarter of 2025. That 18.3% year-over-year jump to $11.2 million shows the asset side of the balance sheet is repricing effectively into the current rate environment. Interest income itself grew 11.7% to $19.2 million for the quarter, which points directly to higher yields on earning assets, supporting the aggressive loan pricing stance.

However, the cost side is a headwind you have to watch. Interest expense rose 3.7% to $8.1 million in Q3 2025, up from $7.8 million the prior year. Management explicitly noted this was due to an increase in rates paid on customer deposits, which is the elevated funding cost component. To be fair, the bank is still relying on wholesale funding to some degree, as Federal Home Loan Bank advances stood at $270.8 million as of September 30, 2025, and brokered deposits were $65.3 million at that same period end.

Here's a quick look at the key components influencing the net interest margin:

The commitment to shareholder returns is priced into the capital allocation strategy. The Board declared a quarterly cash dividend of $0.36 per share, payable November 6, 2025. This payout level reflects confidence, especially as the book value per share grew 6.1% year-over-year to $16.95 by September 30, 2025. The bank is also actively managing its asset mix, originating and selling qualifying residential loans totaling $46.0 million in Q3 2025 to the secondary market, which impacts the overall yield profile.

The overall pricing posture is a direct reaction to external forces. You see the impact of Federal Reserve policy in the rising cost of deposits, and regional competition dictates how aggressively Union Bankshares, Inc. can price its loan originations to capture market share. For instance, total loans grew 5.1% to $1.18 billion year-over-year as of September 30, 2025, showing they are successfully deploying capital at current rates.

• Residential Real Estate Loans (as of Q1 2025): $463.3 million (39.9% of gross loans)
• Commercial Real Estate Loans (as of Q1 2025): $440.8 million (38.0% of gross loans)
• Residential loan originations sold in Q3 2025: $46.0 million

Finance: draft 13-week cash view by Friday.