Document

May 7, 2026

We are pleased to share that Union Bankshares delivered solid first-quarter performance. For the three months ended March 31, 2026, consolidated net income was $3.0 million, or $0.65 per share, compared to $2.5 million, or $0.55 per share, for the first quarter of 2025. This improvement was driven primarily by higher net interest income, disciplined credit performance, and continued focus on serving customers across our Vermont and New Hampshire footprint.

Our balance sheet continued to expand. Total assets were $1.63 billion at quarter end, up 6.6% from March 31, 2025. Liquidity strengthened, with federal funds sold and overnight deposits rising to $25.3 million from $8.9 million a year ago. We also grew the investment securities portfolio to $315.6 million, up 26.4%, reflecting our strategic decision to pre-invest future

portfolio cash flows during the fourth quarter of 2025.

Loan growth was modest, with total loans of $1.18 billion—an increase of $15.8 million, or 1.3%, from the prior year period. We remained an active residential lender, selling $24.1 million of mortgage loans during the quarter, and we continue to support local businesses and municipalities with relationship driven banking. Importantly, asset quality remains strong. The

allowance for credit losses on loans was $8.1 million at March 31, 2026, stable year over year, and we will continue to monitor economic conditions and borrower performance closely.

From an earnings standpoint, net interest income increased $1.0 million, or 10.0%, supported by a larger earning asset base and higher yields. Noninterest income was $2.5 million, including $350 thousand in net gains on mortgage sales. We also invested in our people, technology, and operations, which contributed to a $958 thousand increase in noninterest expense. We remain focused on aligning these investments with the service quality and capabilities our customers expect.

Funding and capital levels remained sound. Total deposits were $1.20 billion at March 31, 2026, and we continued to utilize a mix of core deposits, brokered deposits, and Federal Home Loan Bank advances to support customer demand. Stockholders’ equity increased to $80.6 million, and book value per share

rose 13.1% year over year to $17.46, benefiting from retained earnings and improvement in accumulated other comprehensive loss on our securities portfolio compared to the first quarter of 2025.

Economic conditions in Northern Vermont and Northern New Hampshire during the first quarter of 2026 were generally steady and modestly positive. Employment levels were stable, with continued tightness in the labor market, especially in healthcare, education, skilled trades, and hospitality. Inflation pressures that affected households in prior years appeared to moderate, though energy prices are beginning to impact consumers and businesses.

The travel and tourism sectors were a clear bright spot during the quarter, supported by an exceptionally strong snow year. Consistent snowfall drove above average visitation to ski areas and snowmobile destinations, benefiting lodging, restaurants, and retailers across the region. Alpine and Nordic ski areas reported strong skier visits, while snowmobile trail networks saw heavy use, extending economic activity into smaller, rural communities that rely heavily on winter recreation.

We are pleased to announce that the Board declared a quarterly cash dividend of $0.36 per share, payable May 7, 2026, to shareholders of record as of April 27, 2026.

We hope to see many of you at our 135th Annual Shareholders meeting on May 20th at 3:00pm in Stearns Performance Space on the Vermont State University, Johnson Campus, 337 College Hill Road, Johnson, VT. A reception will be held immediately following the annual meeting.

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 Karyn J. Hale, CFO, at 802.888.6600 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	March 31, 2026			March 31, 2025			March 31, 2026			March 31, 2025			March 31, 2026		Timothy W. Sargent - Vice Chair		David S. Silverman - President & CEO

														Dawn D. Bugbee		Karyn J. Hale - Chief Financial Officer
								(3 months ended)
														Mary K. Parent		Timothy W. Sargent - Secretary
Cash and Due from Banks		$	4,502		$	4,772	Interest Income	$	19,530		$	18,295
															Nancy C. Putnam

							Interest Expense	8,235			8,025						Gregory D. Sargent
Federal Funds Sold & Overnight Deposits		25,322			8,940										David S. Silverman
							Net Interest Income	11,295			10,270						Janet P. Spitler
Interest Bearing Deposits in Banks		7,958			7,959
							Credit Loss (Benefit) Expense	(325)			235
Investment Securities		315,591			249,631		Net Interest Income After Credit Loss Expense	11,620			10,035						Union Bank		REGIONAL ADVISORY BOARD MEMBERS
Loans Held for Sale		4,193			4,055
																	DIRECTORS
Loans, net		1,178,969			1,163,321		Wealth Management Income	304			276						Neil J. Van Dyke - Chair		Michael R. Barrett - St. Johnsbury
															Timothy W. Sargent - Vice Chair		Steven J. Bourgeois - St. Albans
Allowance for Credit Losses		(8,071)			(8,110)		Noninterest Income	2,190			2,164						Dawn D. Bugbee		Andrew A. Dean - Northern NH
																	Steven P. Cote		Stanley T. Fillion - Northern NH
Premises and Equipment, net		19,603			19,988		Noninterest Expenses:								Walter B. Frame III		Rosemary H. Gingue - St. Johnsbury
																	Mary K. Parent		John M. Goodrich - Northern NH
Accrued Interest & Other Assets		77,078			74,276		Salaries & Wages	4,397			3,911						Nancy C. Putnam		Christopher M. Knapp - Northern NH
															Gregory D. Sargent		Coleen K. Kohaut - St. Albans
Total Assets		$	1,625,145		$	1,524,832	Employee Benefits	1,765			1,581						David S. Silverman		Justin P. Lavely - St. Johnsbury
															Janet P. Spitler		Daniel J. Luneau - St. Albans
							Occupancy Expense, net	647			652								Samuel H. Ruggiano - St. Albans
																	Christine A. Sheley - Northern NH
LIABILITIES & SHAREHOLDERS' EQUITY	March 31, 2026			March 31, 2025			Equipment Expense	1,110			1,049								David S. Silverman - All

															Union Bank Offices (ATMs at all Branch Locations)
							Other Expenses	2,863			2,631
Noninterest Bearing Deposits		$	220,708		$	232,550
							Total	10,782			9,824						VERMONT
Interest Bearing Deposits		703,813			682,886		Income Before Taxes	3,332			2,651
															Berlin	1028 US Route 302		802.476.0061
Time Deposits		275,297			265,940		Income Tax Expense	328			150						Fairfax	Jct. Routes 104 & 128		802.849.2600
																	Hardwick	103 VT Route 15 West		802.472.8100
Borrowed Funds		310,981			240,696		Net income	$	3,004		$	2,501					Jeffersonville	5062 VT Route 15		802.644.6600
																	Jericho	368 VT Route 15		802.899.7500
Subordinated Notes		16,316			16,281		Earnings Per Share	$	0.65		$	0.55					Lyndonville	183 Depot Street		802.626.3100
																	Morrisville	20 Lower Main Street		802.888.6600
Accrued Interest & Other Liabilities		17,465			16,405		Book Value Per Share	$	17.46		$	15.44						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		4,821			3,190													364 Railroad Street		802.748.3131
Retained Earnings																		Branch
		97,590			92,589													325 Portland Street		802.748.3121
Accumulated Other Comprehensive Loss		(27,747)			(31,434)												Stowe	47 Park Street		802.253.6600
																	Williston	Branch
																		31 Market St		802.878.7900
Treasury Stock at Cost		(4,268)			(4,295)										Loan Center
															31 Market St		802.865.1000
Total Liabilities & Shareholders' Equity		$	1,625,145		$	1,524,832
Standby letters of credit were $1,573,000 and $1,544,000 at March 31, 2026 and 2025, 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