Union Bankshares (UNB) AI Stock Analysis

• Market Cap: $114.06M
• Dividend Yield: 6.08%
• Average Volume (3M): 14.99K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.66
• Revenue Growth: 14.52%
• EPS Growth: 27.90%
• Country: US
• Employees: 191
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.60
• Shares Outstanding: 4,582,423
• 10 Day Avg. Volume: 26,096
• 30 Day Avg. Volume: 14,995
• PEG Ratio: -0.67
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 1.68
• P/FCF Ratio: 11.80
• Enterprise Value/Market Cap: 3.40
• Enterprise Value/Revenue: 4.51
• Enterprise Value/Gross Profit: 7.42
• Enterprise Value/Ebitda: 27.99
• 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: 74 Outperform
• Price Target: $27.00 ▲(10.16% Upside)

The score is primarily driven by strong financial performance and cash generation, supported by attractive valuation (low P/E and high dividend yield). Technicals are mixed due to the price remaining below the 200-day average, and elevated leverage on the balance sheet remains a key risk factor.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategy, supporting long-term expansion and stability.

Cash Generation

Strong cash generation enhances financial flexibility, enabling the company to invest in growth opportunities and withstand economic challenges.

Management Quality

Experienced leadership can drive strategic decisions and improve operational efficiency, benefiting long-term company performance.

Negative Factors

Rising Debt Levels

High leverage can strain financial resources and limit growth potential, posing risks to long-term financial stability.

Declining Operational Margins

Decreasing margins suggest potential inefficiencies, which could impact profitability and competitiveness if not addressed.

Low Equity Base

A low equity base may limit the company's ability to absorb financial shocks and invest in growth, affecting long-term resilience.

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

Union Bankshares generates revenue through multiple key streams typical of community banks. The primary source of income is interest income from loans, where the bank lends money to consumers and businesses at higher rates than it pays on deposits. Additionally, the bank earns non-interest income through fees associated with deposit accounts, transaction services, and wealth management services. Significant partnerships with local businesses and organizations enhance its community presence and customer base, contributing to its overall earnings. Furthermore, Union Bankshares may engage in investment activities and mortgage origination, which also supplement its revenue, allowing the company to sustain growth and support local economic development.

Union Bankshares Financial Statement Overview

Summary

Strong cash generation (TTM free cash flow growth of 82.97% and FCF-to-net income near 1) and solid profitability (net margin 15.30%, ROE 15.93%) support the score. Offsetting this are higher leverage (debt-to-equity 3.70 and low equity ratio of 4.93%) and declining EBIT/EBITDA margins, which increase balance-sheet risk and suggest some operating pressure.

Income Statement

Union Bankshares has demonstrated strong revenue growth, with a TTM revenue growth rate of 4.66%. The gross profit margin is healthy at 51.19%, though it has decreased from previous years. The net profit margin is solid at 15.30%, indicating efficient cost management. However, the decline in EBIT and EBITDA margins over the years suggests potential pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased significantly to 3.70 in the TTM, indicating higher leverage, which could pose risks if not managed properly. Return on equity is robust at 15.93%, reflecting effective use of equity to generate profits. The equity ratio stands at 4.93%, suggesting a relatively low equity base compared to total assets, which could be a concern in terms of financial stability.

Cash Flow

Union Bankshares shows impressive free cash flow growth of 82.97% in the TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is not available, but the free cash flow to net income ratio is nearly 1, indicating that the company is effectively converting its profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	85.89M	77.94M	67.28M	53.07M	52.24M	52.75M
Gross Profit	52.27M	47.42M	48.51M	48.55M	48.67M	45.41M
EBITDA	13.85M	10.72M	14.52M	17.05M	17.71M	17.29M
Net Income	11.33M	8.76M	11.26M	12.62M	13.17M	12.80M
Balance Sheet
Total Assets	1.57B	1.53B	1.47B	1.34B	1.21B	1.09B
Cash, Cash Equivalents and Short-Term Investments	174.18M	188.92M	283.50M	271.20M	285.67M	123.88M
Total Debt	287.14M	275.97M	81.94M	66.20M	16.17M	7.16M
Total Liabilities	1.50B	1.46B	1.41B	1.28B	1.12B	1.01B
Stockholders Equity	77.68M	66.48M	65.81M	55.22M	84.34M	80.87M
Cash Flow
Free Cash Flow	18.71M	11.08M	7.25M	28.37M	25.68M	-8.07M
Operating Cash Flow	19.82M	12.15M	9.19M	29.03M	29.19M	-7.06M
Investing Cash Flow	-72.41M	-124.83M	-82.25M	-207.58M	-190.01M	-125.91M
Financing Cash Flow	40.81M	50.85M	112.84M	150.51M	103.97M	204.61M

Union Bankshares Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UNB, the sentiment is Positive. The current price of 24.51 is above the 20-day moving average (MA) of 24.16, above the 50-day MA of 23.40, and below the 200-day MA of 25.74, indicating a neutral trend. The MACD of 0.34 indicates Negative momentum. The RSI at 61.98 is Neutral, neither overbought nor oversold. The STOCH value of 63.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UNB.

Union Bankshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNB	74 Outperform	$114.06M	10.24	15.11%	6.08%	14.52%	27.90%
MGYR	72 Outperform	$114.14M	10.26	8.51%	1.81%	12.08%	27.88%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SRBK	67 Neutral	$129.32M	45.90	1.57%	0.88%	9.43%	166.36%
SFBC	64 Neutral	$112.65M	15.85	6.52%	1.75%	2.85%	73.41%
RVSB	61 Neutral	$107.28M	22.30	2.90%	1.51%	8.77%	369.81%
BSBK	48 Neutral	$109.59M	223.56	0.35%	―	-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.

Union Bankshares Updates Insider Trading Policy

Union Bankshares, Inc. announced updates to its Insider Trading Policy on November 19, 2025, which now allows a designee to notify directors and senior officers about blackout periods and adjusts the start date of quarterly blackout periods. These changes are effective immediately and aim to enhance compliance with federal securities laws. Additionally, Walter B. Frame III has been appointed to the Board of Directors of Union Bank, a subsidiary of Union Bankshares, Inc. His extensive experience in financial and operational roles in hospitality and property management is expected to bring valuable insights to the bank’s board.

The most recent analyst rating on (UNB) stock is a Hold with a $23.50 price target. To see the full list of analyst forecasts on Union Bankshares stock, see the UNB Stock Forecast page.