Union Bankshares (UNB) AI Stock Analysis

• Market Cap: $108.88M
• Dividend Yield: 6.06%
• Average Volume (3M): 14.53K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.64
• Revenue Growth: 14.52%
• EPS Growth: 27.90%
• Country: US
• Employees: 191
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.75
• Shares Outstanding: 4,582,423
• 10 Day Avg. Volume: 25,627
• 30 Day Avg. Volume: 14,529
• PEG Ratio: -0.67
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 1.71
• P/FCF Ratio: 11.80
• Enterprise Value/Market Cap: 3.64
• Enterprise Value/Revenue: 4.63
• Enterprise Value/Gross Profit: 7.62
• Enterprise Value/Ebitda: 28.59
• 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: 75 Outperform
• Price Target: $26.00 ▲(14.74% Upside)

Union Bankshares' strong financial performance, attractive valuation, and positive corporate events contribute to a favorable outlook. However, technical indicators suggest caution in the short term, and the company's increasing leverage requires careful management to maintain financial stability.

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 (UNB) is a financial institution headquartered in the United States, primarily engaged in providing a range of banking and financial services to individuals, businesses, and communities. The company operates through various sectors, including commercial banking, retail banking, and wealth management. Core products and services offered by Union Bankshares include personal and business loans, deposit accounts, mortgage services, and investment management, catering to a diverse clientele throughout its service areas.

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

Union Bankshares shows strong profitability with healthy net and gross profit margins. However, declining revenue growth and high leverage are concerning, alongside issues in cash flow conversion.

Income Statement

Union Bankshares shows a mixed performance in its income statement. The TTM data reveals a decline in revenue growth rate by 7.48%, indicating potential challenges in revenue generation. However, the company maintains a healthy net profit margin of 12.54% and a gross profit margin of 65.64%, suggesting efficient cost management. The EBIT and EBITDA margins are also stable at 13.20% and 15.19%, respectively, reflecting solid operational efficiency.

Balance Sheet

The balance sheet indicates a high debt-to-equity ratio of 4.29, which could pose financial risk if not managed properly. Return on equity is stable at 13.17%, showing that the company is generating reasonable returns on shareholders' equity. However, the equity ratio is low, suggesting a heavy reliance on debt financing.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 24.37% in the TTM period, which is concerning. The operating cash flow to net income ratio is low at 0.83%, indicating potential issues in converting income into cash. However, the free cash flow to net income ratio is relatively healthy at 89.80%, suggesting that a significant portion of net income is being converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	85.57M	76.42M	66.11M	52.42M	51.34M	51.95M
Gross Profit	51.95M	45.90M	47.34M	47.90M	47.77M	44.61M
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	0.00	271.20M	285.67M	123.88M
Total Debt	287.14M	275.97M	84.54M	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: 22.66
• 50DMA: Positive
• 100DMA: Negative
• 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 22.66 is below the 20-day moving average (MA) of 23.23, below the 50-day MA of 23.29, and below the 200-day MA of 26.72, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 54.84 is Neutral, neither overbought nor oversold. The STOCH value of 48.44 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	75 Outperform	$108.88M	9.58	15.11%	6.06%	14.52%	27.90%
MGYR	69 Neutral	$114.50M	11.35	8.51%	1.80%	12.08%	27.88%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SRBK	67 Neutral	$132.12M	45.59	1.57%	0.88%	9.43%	166.36%
SFBC	63 Neutral	$110.88M	16.37	6.52%	1.75%	2.85%	73.41%
RVSB	61 Neutral	$109.98M	23.65	2.90%	1.51%	8.77%	369.81%
BSBK	48 Neutral	$106.34M	214.66	0.35%	―	-15.09%	―

Union Bankshares Corporate Events

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.

Union Bankshares Declares Quarterly Dividend Amid Growth

On October 15, 2025, Union Bankshares, Inc. declared a quarterly cash dividend of $0.36 per share, payable on November 6, 2025. The company reported significant financial growth for the three and nine months ended September 30, 2025, with net income rising to $3.4 million and $8.3 million, respectively, compared to the previous year. This growth was driven by increased loan activity and strategic balance sheet management, despite economic uncertainties. The company’s asset quality remains strong, and stockholder equity has improved, reflecting the company’s robust financial health and strategic initiatives.