8-K - UNB - Equibles

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 7, 2024

(Exact name of registrant as specified in its charter)

UNION BANKSHARES, INC.

(State or other jurisdiction		(Commission	(IRS Employer
of incorporation)		File Number)	Identification Number)
VT		001-15985	03-0283552
(Address of principal executive offices)			(Zip Code)
20 Lower Main St., P.O. Box 667			05661-0667
Morrisville	,	VT

Registrant's telephone number, including area code: (802) 888-6600

(Former name or former address, if changed since last report)

Not applicable

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting materials pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to section 12(b) of the Act:

Common Stock, $2.00 par value	UNB	Nasdaq Stock Market
(Title of class)	(Trading Symbol)	(Exchanges registered on)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02: Results of Operations and Financial Condition

As provided in General Instruction B.2 to Form 8-K, the information furnished in this Item 2.02 and in Exhibits 99.1 hereto shall not be deemed filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing with the Securities and Exchange Commission, except as shall be expressly provided by specific reference in such filing.

On November 7, 2024, Union Bankshares, Inc (the "Company") distributed its Third Quarter 2024 unaudited Report to Shareholders (the "Quarterly Report") presenting information concerning the Company's results of operations and financial condition for the three and nine months ended September 30, 2024 and declaration of a regular quarterly dividend. A copy of the Quarterly Report is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Item 9.01: Financial Statements and Exhibits

d) Exhibits:

99.1	Union Bankshares, Inc. Third Quarter 2024 Report to Shareholders distributed November 7, 2024 referred to in Item 2.02 of the Report as furnished, not filed; herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Union Bankshares, Inc.
November 7, 2024	/s/ David S. Silverman
	David S. Silverman
	President/Chief Executive Officer
November 7, 2024	/s/ Karyn J. Hale
	Karyn J. Hale
	Chief Financial Officer

EXHIBIT INDEX

Exhibit 99.1	Union Bankshares, Inc. Third Quarter 2024 Report to Shareholders distributed November 7, 2024.

Document

Exhibit 99.1

November 7, 2024
We are pleased to report a summary of the financial results for Union Bankshares, Inc., for the three months ended September 30, 2024. Consolidated net income was 1.3 million, compared to 2.5 million, for the same period in 2023, and 5.8 million, for the nine months ended September 30, 2024, compared to 8.2 million, for the same period in 2023. The decrease in earnings for the comparison periods was primarily due to the impact of a strategic balance sheet repositioning executed during the third quarter. The Company’s wholly owned subsidiary, Union Bank, executed the sale of 38.8 million in book value of its lower-yielding available-for-sale debt securities for a pre-tax realized loss of 1.3 million, which was recorded in the third quarter of 2024. The proceeds of the securities sale were invested in higher yielding securities and loans. The loss is projected to be earned back in approximately 12 months from the newly acquired higher yielding assets.Total assets were 1.52 billion as of September 30, 2024, compared to 1.40 billion as of September 30, 2023. Loan growth was the primary driver of the increase in total assets with total loans reaching 1.13 billion as of September 30, 2024, compared to 1.03 billion as of September 30, 2023. Asset quality remains strong with minimal past due loans and net recoveries of 15 thousand thus far this year.Loan demand has remained strong during the third quarter of 2024 with growth in the residential, commercial, and municipal portfolios, despite higher interest rates a low residential inventory. Qualifying residential loans of 76.1 million were sold during the first nine months of 2024 compared to sales of 54.2 million for the first nine months of 2023.Total deposits were 1.17 billion as of September 30, 2024 and include 80.0 million of purchased brokered deposits compared to deposits of 1.22 billion as of September 30, 2023, with 153.0 million of purchased deposits. Federal Home				Loan Bank advances of $230.7 million were outstanding as of September 30, 2024, compared to $90.7 million outstanding as of September 30, 2023. In addition to borrowings from the Federal Home Loan Bank, $10.0 million in advances from the Federal Reserve’s Bank Term Funding Program were outstanding as of September 30, 2024..<br><br>The Company had total equity capital of $72.3 million and a book value per share of $15.98 as of September 30, 2024, compared to $49.2 million and a book value of $10.92 per share as of September 30, 2023. Total equity capital is reduced by accumulated other comprehensive loss as it relates to the fair market value adjustment for investment securities. Accumulated other comprehensive loss as of September 30, 2024, was $26.8 million compared to $47.1 million as of September 30, 2023. The reduction in other comprehensive loss is mainly attributable to the decrease in market interest rates between 2023 and 2024, causing the market value of our remaining securities portfolio to increase.<br><br>We are nearing the end of a successful Fall Foliage tourism season. We have anecdotal evidence that the season was a tourism standout throughout our market area, though foliage may have been a bit muted compared to other years. The economy in the markets we serve continues to be strong with the unemployment rate remaining low and the housing market remaining tight. Our region remains a great place to live and do business.<br><br>The Board of Directors is pleased to declare a cash dividend of $0.36 per share for the quarter payable November 7, 2024, to shareholders of record as of October 26, 2024.
	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 Kristy Adams Alfieri, 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 11717866.321.8022 or720.378.5956E-mail: shareholder@broadridge.com
NASDAQ STOCK MARKET
Ticker Symbol: UNBCorporate Name: Union Bankshares, Inc.Corporate Address:20 Lower Main StreetP.O. Box 667Morrisville, VT 05661-0667Investor Relations: UBLocal.com
		David S. Silverman<br><br>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 19 banking offices, 2 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.

All values are in US Dollars.

Consolidated Balance Sheets(unaudited, in thousands)													Consolidated Statements of Income<br><br>(unaudited, in thousands)																							Union Bankshares, Inc.
				DIRECTORS
				Neil J. Van Dyke - Chair
ASSETS	Sept 30, 2024					Sept 30, 2023							Sept 30, 2024					Sept 30, 2023				Sept 30, 2024					Sept 30, 2023									Timothy W. Sargent - Vice Chair						David S. Silverman - President & CEO
					Joel S. Bourassa					Karyn J. Hale - Chief Financial Officer
																	(3 months ended)									(9 months ended)
																									Timothy W. Sargent - Secretary
Cash and Due from Banks			$	4,468									Interest Income		$	17,191					14,847					$	49,364					$	41,694
																													Mary K. Parent									Kristy Adams Alfieri - Assistant Secretary
											Interest Expense			7,761					5,699				21,442					12,953						Nancy C. Putnam
Federal Funds Sold & Overnight Deposits			42,793					17,143																					Gregory D. Sargent
												9,430					9,148				27,922					28,741						David S. Silverman
Interest Bearing Deposits in Banks			13,445					14,436																						Janet P. Spitler
												425					(139)				583					(161)
Investment Securities			246,658					250,337					Net Interest Income After<br>Credit Loss Expense (Benefit)		9,005					9,287				27,339						28,902						Union Bank						REGIONAL<br>ADVISORY BOARD<br>MEMBERS
Loans Held for Sale			8,449					6,452
																																DIRECTORS
Loans, net			1,119,480					1,023,283					Wealth Management Income		265					244				793						695						Neil J. Van Dyke - Chair						Michael R. Barrett - St. Johnsbury
																							Timothy W. Sargent - Vice Chair								Steven J. Bourgeois - St. Albans
Allowance for Credit Losses			(7,366)					(6,895)					Net losses on sales of investment securities		(1,293)					—				(1,293)						—						Joel S. Bourassa						Andrew A. Dean - Northern NH
																												Dawn D. Bugbee								Stanley T. Fillion - Northern NH
Premises and Equipment, net			20,460					20,365					Noninterest Income		2,633					2,223				7,437						6,540						Mary K. Parent						Rosemary H. Gingue - St. Johnsbury
																												Nancy C. Putnam								John M. Goodrich - Northern NH
Accrued Interest & Other Assets			71,107					66,320					Noninterest Expenses:																							Gregory D. Sargent						Christopher M. Knapp - Northern NH
																																		David S. Silverman						Coleen K. Kohaut - St. Albans
Total Assets			$	1,519,494									Salaries & Wages		4,015					3,720				11,342						10,895						Janet P. Spitler						Justin P. Lavely - St. Johnsbury
																																		Daniel J. Luneau - St. Albans
													Employee Benefits		1,522					1,217				4,642						4,065												Samuel H. Ruggiano - St. Albans
																																				Christine A. Sheley - Northern NH
LIABILITIES & SHAREHOLDERS' EQUITY	Sept 30, 2024					Sept 30, 2023							Occupancy Expense, net		505					459				1,618						1,519												David S. Silverman - All
														Union Bank Offices<br><br>(ATMs at all Branch Locations)
													Equipment Expense			1,006									2,966						2,714
Noninterest Bearing Deposits			$	233,770
											Other Expenses			2,361					2,595				7,845					7,546						VERMONT
Interest Bearing Deposits			643,593					707,872
												9,409					8,926				28,413					26,739						Berlin			1028 US Route 302						802.476.0061
Time Deposits			295,900					285,315					Income Before Taxes		1,201					2,828				5,863						9,398						Fairfax			Jct. Routes 104 & 128				802.849.2600
																																				Hardwick			103 VT Route 15 West				802.472.8100
Borrowed Funds			240,696					90,696					Income Tax (Benefit) Expense		(123)					296				103						1,190						Jeffersonville			5062 VT Route 15				802.644.6600
																																				Jericho			368 VT Route 15				802.899.7500
Subordinated Notes			16,264					16,230					Net income		$	1,324								$	5,760					$	8,208					Johnson			198 Lower Main Street				802.635.6600
																																				Lyndonville			183 Depot Street				802.626.3100
Accrued Interest & Other Liabilities			16,970					17,168					Earnings Per Share		$	0.29								$	1.27					$	1.82					Morrisville			20 Lower Main Street				802.888.6600
																																							65 Northgate Plaza				802.888.6860
Common Stock			9,999					9,969					Book Value Per Share											$	15.98					$	10.92					Shelburne			5068 Shelburne Road				802.985.0227
																																				St. Albans			15 Mapleville Depot				802.524.9000
Additional Paid-in Capital			3,089					2,607																												St. Johnsbury			Operations and Loan Center
Retained Earnings																																							364 Railroad Street				802.748.3131
		90,350					88,045																														Branch
Accumulated OtherComprehensive Loss			(26,831)					(47,063)																															325 Portland Street				802.748.3121
																																Stowe			47 Park Street						802.253.6600
													Williston		Branch
Treasury Stock at Cost			(4,306)					(4,312)											31 Market St				802.878.7900
																			Loan Center
Total Liabilities & Shareholders' Equity			$	1,519,494					1,395,628										31 Market St				802.865.1000
Standby letters of credit were 1,509,000 and 1,532,000 at September 30, 2024 and 2023, respectively.																NEW HAMPSHIRE
				Groveton			3 State Street					603.636.1611
																Littleton			263 Dells Road				603.444.7136
		76 Main Street					603.444.5321
		135 Main Street					603.745.4000
		120 North-South Road					603.356.4010

All values are in US Dollars.