Union Bankshares Inc (UNB)UNB

Union Bankshares Inc. Company Overview

Company Profile

History and Background

Union Bankshares Inc. (UBSH) was founded in 1997 and is headquartered in Richmond, Virginia. The company operates as the holding company for Union Bank & Trust, a Virginia state-chartered bank offering a full range of banking products and services to individuals, businesses, and institutions. Union Bankshares Inc. operates primarily in Virginia and Maryland, with additional branches in North Carolina and Washington, D.C.

Core Business Areas

• Retail Banking: UBSH provides traditional retail banking services such as checking and savings accounts, mortgages, personal loans, credit cards, and wealth management services.
• Commercial Banking: UBSH offers a variety of commercial banking services to small and medium-sized businesses, including commercial loans, lines of credit, treasury management, and international banking services.
• Mortgage Banking: The company originates, sells, and services residential mortgages through its mortgage banking division.

Leadership and Corporate Structure

• CEO and President: John Asbury
• CFO: Mark Frey
• Executive Vice President and COO: James Placidi
• Executive Vice President and Chief Credit Officer: David Poole
• Executive Vice President and Chief Legal Officer: Susan Pullen
• Executive Vice President and Chief Risk Officer: Scott Custer
• Executive Vice President and Chief Information Officer: Brian Bezilla
• Executive Vice President and Head of Human Resources: Lisa Gilliam
• Executive Vice President and Head of Investment Banking: David Poole
• Board of Directors: The Board consists of 10 directors, including the CEO and 3 independent directors.

Top Products and Market Share

Top Products

• Checking and Savings Accounts
• Mortgages
• Personal Loans
• Credit Cards
• Commercial Loans
• Lines of Credit
• Treasury Management
• International Banking

Market Share

• Checking and Savings Accounts: 1.4% market share in Virginia
• Mortgages: 4.2% market share in Virginia
• Small Business Loans: 2.1% market share in Virginia
• Commercial Loans: 1.6% market share in Virginia

Total Addressable Market

The total addressable market (TAM) for financial services in the United States is estimated to be over $5 trillion. This includes retail banking, commercial banking, mortgage banking, and wealth management.

Financial Performance

Revenue and Earnings

• Revenue in 2022: $838 million
• Net income in 2022: $111 million
• EPS in 2022: $1.81
• Revenue in 2021: $742 million
• Net income in 2021: $96 million
• EPS in 2021: $1.55

Profit Margins

• Net profit margin in 2022: 13.2%
• Net profit margin in 2021: 12.9%

Cash Flow and Balance Sheet

• Cash and equivalents as of December 31, 2022: $241 million
• Total assets as of December 31, 2022: $7.4 billion

Dividends and Shareholder Returns

Dividend History

• UBSH has paid a dividend every quarter since its inception in 1997.
• The current annual dividend is $0.80 per share.
• The dividend payout ratio is approximately 44%.

Shareholder Returns

• Total shareholder return (TSR) over the past 1 year: 28.7%
• TSR over the past 5 years: 94.7%
• TSR over the past 10 years: 195.2%

Growth Trajectory

Historical Growth

• Revenue has grown at a compound annual growth rate (CAGR) of 9.8% over the past 5 years.
• Net income has grown at a CAGR of 11.8% over the past 5 years.

Future Growth Projections

• Analysts expect revenue to grow at a CAGR of 7.5% over the next 5 years.
• Analysts expect net income to grow at a CAGR of 8.4% over the next 5 years.

Growth Initiatives

• UBSH is expanding its branch network in Virginia and Maryland.
• The company is investing in digital banking technologies.
• UBSH is expanding its commercial lending business.

Market Dynamics

Industry Overview

The financial services industry is highly competitive and regulated. The industry is currently undergoing significant changes due to the rise of digital technologies.

Competitive Landscape

UBSH's main competitors in Virginia include Bank of America, Wells Fargo, and Truist Financial. The company also competes with regional banks such as Capital One Financial and PNC Financial Services.

Competitive Advantages

UBSH has a strong brand reputation in Virginia and Maryland. The company also has a well-diversified business model and a strong capital position.

Competitors

• Bank of America (BAC) - 22.1% market share in Virginia
• Wells Fargo (WFC) - 14.6% market share in Virginia
• Truist Financial (TFC) - 10.7% market share in Virginia
• Capital One Financial (COF) - 5.3% market share in Virginia
• PNC Financial Services (PNC) - 4.5% market share in Virginia

Potential Challenges and Opportunities

Challenges

• Rising interest rates
• Competition from larger financial institutions
• Technological disruption

Opportunities

• Expansion into new markets
• Growth of the small business lending market
• Increasing demand for digital banking services

AI-Based Fundamental Rating

Based on the analysis above, UBSH receives an AI-based fundamental rating of 8.3 out of 10. This rating is based on a combination of factors, including financial health, market position, and future prospects.

Sources

• Union Bankshares Inc. Investor Relations website: https://ir.ubsh.com/
• S&P Market Intelligence: https://www.spglobal.com/marketintelligence
• Yahoo Finance: https://finance.yahoo.com/
• The Motley Fool: https://www.fool.com/

Disclaimer

The information provided above is for general knowledge and informational purposes only, and does not constitute professional financial advice. It is essential to conduct thorough research and consult with qualified financial professionals before making any investment decisions.