Union Bankshares (UNB) AI Stock Analysis

• Market Cap: $103.10M
• Dividend Yield: 6.08%
• Average Volume (3M): 14.99K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.68
• Revenue Growth: 14.52%
• EPS Growth: 27.90%
• Country: US
• Employees: 191
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.59
• Shares Outstanding: 4,582,423
• 10 Day Avg. Volume: 26,096
• 30 Day Avg. Volume: 14,995
• PEG Ratio: 0.39
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 1.24
• P/FCF Ratio: 16.04
• Enterprise Value/Market Cap: 3.89
• Enterprise Value/Revenue: 4.67
• Enterprise Value/Gross Profit: 7.68
• Enterprise Value/Ebitda: 28.97
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: $23.00 ▼(-6.16% Downside)
• Action: Downgraded Date: 03/21/26
• Date: Action: Downgraded 03/21/26

The score is primarily constrained by weaker financial quality—especially higher balance-sheet leverage and inconsistent cash generation—alongside bearish technicals. These are partly offset by favorable valuation (low P/E and high dividend yield) and a generally positive set of recent corporate updates (stronger full-year results and continued dividends).

Positive Factors

Revenue acceleration (2025)

Consistent revenue acceleration in 2025 indicates durable top-line momentum driven by core banking activities. Sustained revenue growth strengthens loan origination capacity and fee income, improving the firm's ability to cover provisions and invest in operations over the next several quarters.

Stronger book value and maintained dividend

Nearly 20% book-value growth plus a continued quarterly dividend signal accumulating capital and management commitment to returning cash. This enhances loss-absorbing capacity and investor confidence, while a board appointment to bolster risk expertise supports governance and medium-term stability.

Improved core interest and funding trends

Higher net interest income, mortgage gains and deposit growth reflect firmer core banking performance. Expansion of the securities portfolio and increased deposits improve funding diversity and support net interest margins and lending capacity across the 2–6 month horizon.

Negative Factors

Rising leverage

A sharp rise in leverage reduces balance-sheet flexibility in a rate- and credit-sensitive industry. Elevated debt-to-equity increases funding and solvency risk, narrows strategic options, and raises the probability that capital actions or higher provisioning may be needed within several quarters.

Weaker, volatile cash generation

Material decline and volatility in cash generation weakens the firm's ability to fund dividends, invest, or absorb shocks without external financing. Low cash conversion versus reported earnings increases uncertainty about earnings quality and constrains operational flexibility in the medium term.

Compressed margins & higher expenses

Profitability has contracted from prior peaks as margins compress and noninterest expenses rise. Persistent expense pressure and narrower spreads limit sustainable earnings, reducing the firm's capacity to rebuild reserves or accelerate loan growth without restoring margins.

Union Bankshares Business Overview & Revenue Model

Company Description

Union Bankshares, Inc. operates as the bank holding company for Union Bank that provides retail, commercial, and municipal banking products and 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 commercial real estate loans; commercial loans for plant and equipment, working capital, real estate renovation, and other business purposes to business owners and investors; small business administration guaranteed loans; home improvement loans and overdraft; and residential construction and mortgage loans. In addition, it offers online cash management services, including account reconciliation, credit card depository, automated clearing house origination, wire transfers, and night depository services; merchant credit card services for the deposit and immediate credit of sales drafts; 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; debit cards; telephone, Internet, and mobile banking services; 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. It operates 18 banking offices, 3 loan centers, and various ATMs. Union Bankshares, Inc. was founded in 1891 and is headquartered in Morrisville, Vermont.

How the Company Makes Money

UNB primarily makes money through its banking subsidiary by earning interest income and collecting fees. The largest revenue driver is net interest income: the bank earns interest on loans (e.g., commercial, consumer, and real estate lending) and other interest-earning assets, and pays interest on funding sources such as customer deposits and borrowings; the spread between these rates (net interest margin) is a core source of earnings. A second contributor is noninterest income, which typically consists of fees and service charges associated with deposit accounts and customer transactions (for example, account service fees and other banking service fees). The company’s profitability is also affected by credit performance (loan losses and provisioning), balance-sheet growth (loan and deposit volumes), and the interest-rate environment (which influences yields on assets and the cost of deposits/funding). Specific material partnerships or customer-concentration drivers are null.

Union Bankshares Financial Statement Overview

Summary

Income statement is moderately solid (revenue acceleration in 2025 and earnings recovery vs. 2024), but overall financial quality is held back by sharply higher leverage (weak balance sheet score) and weaker/less dependable cash generation in 2025 (very weak cash flow score).

Income Statement

Revenue accelerated in the most recent year (2025 up strongly vs. 2024), showing improved top-line momentum. However, profitability has clearly compressed versus prior years: net margin and operating margin declined materially from 2021–2022 peaks despite the revenue rebound, indicating less favorable spread/expense dynamics. Net income recovered versus 2024, but remains below 2021–2022 levels, making the earnings profile solid but less resilient than earlier in the period.

Balance Sheet

Leverage has increased sharply: debt-to-equity moved from low levels in 2020–2021 to elevated levels in 2024–2025, which reduces flexibility and raises balance-sheet risk in a rate- and credit-sensitive industry. Equity has grown vs. 2024 and return on equity remains decent in the low-to-mid teens, but the much heavier debt load relative to equity is the key offset and is the main reason this vertical scores below average.

Cash Flow

Cash generation has become less dependable. Free cash flow dropped significantly in 2025 versus 2024, and recent cash flow is low relative to reported earnings (with the provided cash-flow-to-net-income fields showing 0.0 in 2025). While 2022 and 2024 showed healthier cash conversion, the volatility (including negative operating cash flow in 2020) and the weak 2025 read-through point to higher uncertainty around the quality and consistency of earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	85.89M	87.30M	77.94M	67.28M	53.07M	52.24M
Gross Profit	52.27M	53.73M	47.42M	48.51M	48.55M	48.67M
EBITDA	13.85M	12.03M	10.72M	14.52M	17.05M	17.71M
Net Income	11.33M	11.10M	8.76M	11.26M	12.62M	13.17M
Balance Sheet
Total Assets	1.57B	1.62B	1.53B	1.47B	1.34B	1.21B
Cash, Cash Equivalents and Short-Term Investments	174.18M	12.30M	188.92M	283.50M	271.20M	285.67M
Total Debt	287.14M	302.79M	275.97M	81.94M	66.20M	16.17M
Total Liabilities	1.50B	1.54B	1.46B	1.41B	1.28B	1.12B
Stockholders Equity	77.68M	80.86M	66.48M	65.81M	55.22M	84.34M
Cash Flow
Free Cash Flow	18.71M	6.76M	11.08M	7.25M	28.37M	25.68M
Operating Cash Flow	19.82M	6.76M	12.15M	9.19M	29.03M	29.19M
Investing Cash Flow	-72.41M	-1.45M	-124.83M	-82.25M	-207.58M	-190.01M
Financing Cash Flow	40.81M	-5.30M	50.85M	112.84M	150.51M	103.97M

Union Bankshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UNB, the sentiment is Negative. The current price of 24.51 is above the 20-day moving average (MA) of 23.61, above the 50-day MA of 24.09, and below the 200-day MA of 24.53, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 35.86 is Neutral, neither overbought nor oversold. The STOCH value of 8.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UNB.

Union Bankshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MGYR	75 Outperform	$104.30M	8.58	9.18%	1.81%	12.08%	27.88%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SFBC	65 Neutral	$112.60M	12.42	6.70%	1.75%	2.85%	73.41%
SRBK	59 Neutral	$126.08M	35.78	1.57%	0.88%	9.43%	166.36%
RVSB	57 Neutral	$106.87M	18.92	2.98%	1.51%	8.77%	369.81%
UNB	53 Neutral	$103.10M	9.78	14.80%	6.08%	14.52%	27.90%
BSBK	48 Neutral	$106.60M	39.11	1.50%	―	-15.09%	―

Union Bankshares Corporate Events

Union Bankshares posts strong 2025 results, declares dividend

On January 21, 2026, Union Bankshares reported that consolidated net income for the year ended December 31, 2025 rose 26.5% to $11.1 million, or $2.43 per share, from $8.8 million, or $1.94 per share, in 2024, aided by higher net interest income, stronger mortgage banking gains and lower credit loss expense, despite increased operating costs. Total assets grew 5.8% to $1.62 billion, driven by a sizable expansion of the securities portfolio and modest loan growth, while deposits and Federal Home Loan Bank advances also increased; book value per share climbed nearly 20% as retained earnings, paid-in capital from share sales and reduced unrealized losses on securities strengthened equity. For the fourth quarter of 2025, net income edged down to $2.7 million from $3.0 million a year earlier as higher noninterest expenses offset gains in net interest and fee income, but the board underscored confidence in the company’s financial position by declaring a regular quarterly cash dividend of $0.36 per share payable on February 5, 2026 to shareholders of record on January 31, 2026. In a further move to bolster governance and deepen expertise in risk management and client service, the board appointed Steven P. Cote, president of Chalmers Insurance Group with 34 years of industry experience and extensive community board service in Maine and New Hampshire, to the board of Union Bank, the company’s principal subsidiary.

The most recent analyst rating on (UNB) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Union Bankshares stock, see the UNB Stock Forecast page.