Document

February 5, 2026

As we open 2026 with a great beginning to the winter season across our communities, I’m pleased to share results that reflect the resilience of our bank and the discipline of our team. Our performance in 2025 demonstrates that we are executing against our long-term strategy while serving customers and neighbors with consistency and care.

For the full year 2025, Union Bankshares delivered consolidated net income of $11.1 million, or $2.43 per share, up from $8.8 million, or $1.94 per share, in 2024—a year that included a strategic bond sale resulting in a pre-tax loss of $1.3 million to reposition the balance sheet for future earnings. Fourth quarter 2025 net income was $2.7 million versus $3.0 million in the same period of 2024, reflecting higher noninterest expenses partially offset by stronger net interest income, higher noninterest income, and lower credit loss expense.

Top-line momentum remained healthy. Interest income rose to $75.8 million in 2025 from $68.0 million in 2024, driven by a larger earning asset base and higher yields, while interest expense increased to $32.8 million from $29.6 million. Together, these shifts produced a $4.7 million, or 12.1%, improvement in net

interest income year over year. Credit loss expense declined to $774 thousand from $930 thousand, consistent with portfolio mix and performance. Noninterest income reached $11.5 million, supported by mortgage banking gains of $2.1 million, compared

to $1.7 million in 2024, alongside continued strength in core fee categories. As we invested in talent and capabilities, noninterest expenses rose to $41.7 million from $38.0 million, reflecting higher salaries and benefits as well as occupancy and equipment costs.

Our balance sheet remains a source of strength. Total assets ended the year at $1.62 billion, up 5.8% from $1.52 billion in 2024. We prudently increased investment securities to $328.3 million from $252.3 million, pre-investing expected cash flows late in the year. Loans grew modestly to $1.2 billion, tempered

by robust secondary-market sales of qualifying mortgages totaling $143.5 million, up from $113.5 million in 2024. Asset quality remains solid; the allowance for credit losses increased to $8.4 million from $7.7 million as we continually calibrate for risk. Total deposits were $1.21 billion, including $10.2 million of brokered deposits, and we utilized $286.5 million in FHLB advances to effectively manage funding and liquidity.

Stockholders’ equity strengthened meaningfully. Book value per share increased 19.7% to $17.53 from $14.65, aided by retained earnings of $96.2 million, growth in additional paid-in capital to $4.6 million following sales of 56,260 shares (net proceeds of $1.2 million), and an improved accumulated other comprehensive loss position of $25.9 million versus $34.0 million in 2024. Reflecting our continued commitment to returning capital, the Board declared a quarterly cash dividend of $0.36 per share, payable February 5, 2026 to shareholders of record as of January 31, 2026.

The early winter has brought a welcome lift to many local businesses and households, and we are encouraged by the constructive tone we’re seeing in our markets. While we will navigate the same uncertainties as our industry peers, our strong credit culture, careful balance-sheet positioning, and deep community relationships give us confidence that the positive trends we saw in 2025 can continue.

Thank you for your continued trust and investment in Union Bankshares. We enter the new year with momentum, a clear strategy, and a shared commitment to delivering long-term value—for our customers, communities, employees, and you, our owners.

Sincerely,

If you need assistance with a change in registration of certificates, combining your certificates into one, reporting lost certificates, non-receipt or loss of dividend checks, assistance regarding direct deposit of dividends, information about the Company, or to receive copies of financial reports, please contact Bethany Moore, Assistant Secretary at 802.888.0982 or contact our Transfer Agent at the address and phone number listed below:

TRANSFER AGENT:

Broadridge Corporate Issuer Solutions, Inc.
P.O. Box 1342
Brentwood, NY 11717
866.321.8022 or
720.378.5956
E-mail: shareholder@broadridge.com

NASDAQ STOCK MARKET

Ticker Symbol: UNB
Corporate Name: Union Bankshares, Inc.
Corporate Address:
20 Lower Main Street
P.O. Box 667
Morrisville, VT 05661-0667
Investor Relations: UBLocal.com

Neil J. Van Dyke

Chair

David S. Silverman

President & Chief Executive Officer

About Union Bankshares

Union Bankshares, Inc. operates as the holding company for Union Bank, which provides commercial, retail and municipal banking services and asset management services throughout northern Vermont and New Hampshire. Union Bank was founded in 1891 in Morrisville, Vermont, where the Bank’s and its holding company’s headquarters are located. Union Bank operates 18 banking offices, 3 loan centers and several ATMs throughout its geographical footprint.

Union Bank has been helping people buy homes and local businesses create jobs in area communities since opening its doors over 130 years ago. Union Bank has earned an exceptional reputation for residential lending programs and has been recognized by the US Department of Agriculture, Rural Development for the positive impact made in the lives of first time home buyers. Union Bank is consistently one of the top Vermont Housing Finance Agency mortgage originators. Additionally, Union Bank has also been designated as an SBA Preferred lender for its participation in small business lending. Union Bank has received an "Outstanding" rating for its compliance with the Community Reinvestment Act (CRA). An institution in this group has an excellent record of helping to meet the credit needs of its assessment area, particularly in low-and moderate income neighborhoods, in a manner consistent with its resources and capabilities.



Consolidated Balance Sheets (unaudited, in thousands)							Consolidated Statements of Income (unaudited, in thousands)												Union Bankshares, Inc.

																			DIRECTORS		OFFICERS
																			Neil J. Van Dyke - Chair		Neil J. Van Dyke - Chair
ASSETS	DEC 31, 2025			DEC 31, 2024			DEC 31, 2025			DEC 31, 2024			DEC 31, 2025			DEC 31, 2024			Timothy W. Sargent - Vice Chair		David S. Silverman - President & CEO

																			Dawn D. Bugbee		Karyn J. Hale - Chief Financial Officer
								(3 months ended)						(12 months ended)
																			Mary K. Parent		Timothy W. Sargent - Secretary
Cash and Due from Banks		$	4,658		$	5,168	Interest Income	$	19,565		$	18,590		$	75,788		$	67,954
																			Nancy C. Putnam		Bethany Moore - Assistant Secretary

							Interest Expense	8,417			8,148			32,768			29,590		Gregory D. Sargent
Federal Funds Sold & Overnight Deposits		7,642			10,670														David S. Silverman
							Net Interest Income	11,148			10,442			43,020			38,364		Janet P. Spitler
Interest Bearing Deposits in Banks		8,955			9,462
							Credit Loss Expense	5			347			774			930
Investment Securities		328,293			252,258		Net Interest Income After Credit Loss Expense	11,143			10,095			42,246			37,434		Union Bank		REGIONAL ADVISORY BOARD MEMBERS
Loans Held for Sale		4,172			5,204
																			DIRECTORS
Loans, net		1,176,800			1,157,898		Wealth Management Income	319			274			1,187			1,067		Neil J. Van Dyke - Chair		Michael R. Barrett - St. Johnsbury
																			Timothy W. Sargent - Vice Chair		Steven J. Bourgeois - St. Albans
Allowance for Credit Losses		(8,407)			(7,680)		Net losses on Sales of Investment Securities	—			—			—			(1,293)		Dawn D. Bugbee		Andrew A. Dean - Northern NH
																			Walter B. Frane III		Stanley T. Fillion - Northern NH
							Noninterest Income	2,594			2,512			10,275			9,949		Mary K. Parent		Rosemary H. Gingue - St. Johnsbury
Premises and Equipment, net		19,847			20,225														Nancy C. Putnam		John M. Goodrich - Northern NH
							Noninterest Expenses:												Gregory D. Sargent		Christopher M. Knapp - Northern NH
Accrued Interest & Other Assets		75,231			75,153		Salaries & Wages	5,020			4,336			17,452			15,678		David S. Silverman		Coleen K. Kohaut - St. Albans
																			Janet P. Spitler		Justin P. Lavely - St. Johnsbury
Total Assets		$	1,617,191		$	1,528,358	Employee Benefits	1,521			1,074			6,479			5,716				Daniel J. Luneau - St. Albans
																					Samuel H. Ruggiano - St. Albans
							Occupancy Expense, net	599			576			2,335			2,194				Christine A. Sheley - Northern NH
																					David S. Silverman - All
LIABILITIES & SHAREHOLDERS' EQUITY	DEC 31, 2025			DEC 31, 2024			Equipment Expense	1,137			1,026			4,381			3,992
																			Union Bank Offices (ATMs at all Branch Locations)
							Other Expenses	2,769			2,602			11,053			10,447
Noninterest Bearing Deposits		$	226,939		$	226,048
							Total	11,046			9,614			41,700			38,027		VERMONT
Interest Bearing Deposits		725,996			714,862		Income Before Taxes	3,010			3,267			12,008			9,130
																			Berlin	1028 US Route 302		802.476.0061
Time Deposits		262,047			227,984		Income Tax Expense	262			266			928			369		Fairfax	Jct. Routes 104 & 128		802.849.2600
																			Hardwick	103 VT Route 15 West		802.472.8100
Borrowed Funds		286,481			259,696		Net income	$	2,748		$	3,001		$	11,080		$	8,761	Jeffersonville	5062 VT Route 15		802.644.6600
																			Jericho	368 VT Route 15		802.899.7500
Subordinated Notes		16,307			16,273		Earnings Per Share	$	0.60		$	0.67		$	2.43		$	1.94	Lyndonville	183 Depot Street		802.626.3100
																			Morrisville	20 Lower Main Street		802.888.6600
Accrued Interest & Other Liabilities		18,557			17,015		Book Value Per Share							$	17.53		$	14.65		65 Northgate Plaza		802.888.6860
																			Shelburne	5068 Shelburne Road		802.985.0227
Common Stock		10,169			10,024														St. Albans	15 Mapleville Depot		802.524.9000
																			St. Johnsbury	Operations and Loan Center
Additional Paid-in Capital		4,607			3,031															364 Railroad Street		802.748.3131
Retained Earnings																				Branch
		96,247			91,722															325 Portland Street		802.748.3121
Accumulated Other Comprehensive Loss		(25,883)			(33,997)														Stowe	47 Park Street		802.253.6600
																			Williston	Branch
																				31 Market St		802.878.7900
Treasury Stock at Cost		(4,276)			(4,300)															Loan Center
																				31 Market St		802.865.1000
Total Liabilities & Shareholders' Equity		$	1,617,191		$	1,528,358
Standby letters of credit were $1,573,000 and $1,640,000 at December 31, 2025 and 2024, respectively.																			NEW HAMPSHIRE
																			Groveton	3 State Street		603.636.1611
																			Littleton	263 Dells Road		603.444.7136
																				76 Main Street		603.444.5321
																			Lincoln	135 Main Street		603.745.4000
																			North Conway	120 North-South Road		603.356.4010