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): August 4, 2022

(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 August 4, 2022, Union Bankshares, Inc (the "Company") distributed its Second Quarter 2022 unaudited Report to Shareholders (the "Quarterly Report") presenting information concerning the Company's results of operations and financial condition for the three and six months ended June 30, 2022 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. Second Quarter 2022 Report to Shareholders distributed August 4, 2022 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.
August 4, 2022	/s/ David S. Silverman
	David S. Silverman
	President/Chief Executive Officer
August 4, 2022	/s/ Karyn J. Hale
	Karyn J. Hale
	Chief Financial Officer

EXHIBIT INDEX

Exhibit 99.1	Union Bankshares, Inc. Second Quarter 2022 Report to Shareholders distributed August 4, 2022.

Document

Exhibit 99.1

August 4, 2022
We are pleased to report our financial results for the second quarter and the first six months of 2022. Consolidated net income for the three months ended June 30, 2022, was 2.9 million, or 0.65 per share, compared to 3.0 million, or 0.67 cents per share, for the same period in 2021, and 5.4 million, or 1.20 per share, for the six months ended June 30, 2022, compared to 5.9 million, or 1.31 per share for the same period in 2021. Total assets were 1.2 billion as of June 30, 2022, compared to 1.1 billion as of June 30, 2021, an increase of 125.8 million, or 11.8%.Key variances between the first six months of 2022 compared to the same period in 2021 were lower net gains on loan sales, lower SBA PPP fees, improved interest income,and lower interest expense and provision for loan losses. Net gains on loan sales decreased from 2.0 million in 2021 to 300 thousand in 2022. PPP loan fees decreased from 1.4 million in the first half of 2021 compared to 428 thousand for the same period of 2022. These were partially offset by an increase in interest income of 263 thousand and decreases of 584 thousand in interest expense and 225 thousand in the provision for loan losses. We expect the positive variance in interest income to persist and improve throughout the balance of the year.Total loans outstanding as of June 30, 2022, were 823.0 million compared to 783.0 million as of June 30, 2021, an increase of 39.9 million, or 5.1%, net of 54 million of PPP loans that were forgiven by the SBA. This means we have been able to replace the 54 million in PPP loans yielding 1% with market rate loans, which was a great effort by our lending teams.The funding of asset growth continues to be primarily from customer deposits which increased to 1.1 billion as of June 30, 2022, compared to 967.7 million as of June 30, 2021, an increase of 135.4 million, of 14.0%. The				increase in customer deposits allowed for a reduction in wholesale funding of $7.2 million since June 30, 2021.<br><br>Much has occurred since the beginning of the year. Sadly, war broke out in Europe destabilizing the global economy. Inflation, caused by increased stimulus and exacerbated by tight labor markets and soaring energy costs, has forced the Federal Reserve to increase interest rates. Despite some predictions of recessionary times ahead, our asset quality metrics remain quite strong. Locally, our business community is seeing continued good demand for products and services. Universally, the biggest challenge our business community faces is attracting and retaining enough employees with which to operate. Our company is not immune to this issue, though we have had some recent success in recruiting, perhaps signaling that the tight labor market is easing.<br><br>We are in the middle of our region's important summer/fall tourism season and all reports indicate strong demand, though a bit lower than last year's record setting season. Construction of all types continues to be robust, with many contractors committed to projects spanning over the next few years. Loan demand for both commercial and residential lending remains strong. We remain cautiously optimistic for the balance of the year.<br><br>We are pleased to announce that the Board of Directors declared a cash dividend of $0.35 per share for the quarter payable August 4, 2022, to shareholders of record as of July 30, 2022.<br><br><br><br>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 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 18 banking offices, three 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	June 30, 2022					June 30, 2021							June 30, 2022					June 30, 2021				June 30, 2022					June 30, 2021									Timothy W. Sargent - Vice Chair					David S. Silverman - President & CEO
					Joel S. Bourassa					Karyn J. Hale - Chief Financial Officer
																	(3 months ended)									(6 months ended)
																									Timothy W. Sargent - Secretary
Cash and Due from Banks			$	4,411									Interest Income		$	10,404					9,898					$	20,130					$	19,398
																													Nancy C. Putnam									Kristy Adams Alfieri - Assistant Secretary
																													Gregory D. Sargent
Federal Funds Sold & Overnight Deposits			20,885					56,279					Interest Expense		733					979				1,496						2,080						David S. Silverman
													Net Interest Income		9,671					8,919				18,634						17,318						Janet P. Spitler
Interest Bearing Deposits in Banks			13,943					12,948
												—					75				—					225
Investment Securities			262,827					159,275					Net Interest Income After<br>Provision for Loan Losses		9,671					8,844				18,634						17,093						Union Bank					REGIONAL<br>ADVISORY BOARD<br>MEMBERS
Loans Held for Sale			3,820					42,149
												217					198				426					383						DIRECTORS
Loans, net			819,146					740,896					Noninterest Income		1,948					2,941				3,794						5,377						Neil J. Van Dyke - Chair					Michael R. Barrett - St. Johnsbury
																												Timothy W. Sargent - Vice Chair								Steven J. Bourgeois - St. Albans
Reserve for Loan Losses			(8,340)					(8,505)					Noninterest Expenses:																							Joel S. Bourassa					Andrew A. Dean - Northern NH
													Salaries & Wages		3,520					3,553				6,930						6,636						Dawn D. Bugbee					Stanley T. Fillion - Northern NH
Premises and Equipment, net			20,983					21,637																												Mary K. Parent					Rosemary H. Gingue - St. Johnsbury
													Employee Benefits		1,295					1,203				2,600						2,372						Nancy C. Putnam					John M. Goodrich - St. Johnsbury
Accrued Interest & other Assets			54,238					36,506																				Gregory D. Sargent								Christopher M. Knapp - Northern NH
																																				David S. Silverman					Coleen K. Kohaut - St. Albans
Total Assets			$	1,191,913									Occupancy Expense, net		462					527				989						1,004						Janet P. Spitler					Justin P. Lavely - St. Johnsbury
																																									Daniel J. Luneau - St. Albans
													Equipment Expense		934					872				1,850						1,670											Samuel H. Ruggiano - St. Albans
																																				Christine A. Sheley - Northern NH
																																									David S. Silverman - All
LIABILITIES & SHAREHOLDERS' EQUITY	June 30, 2022					June 30, 2021							Other Expenses		2,084					2,234				4,040						4,160
																								Union Bank Offices<br><br>(ATMs at all Branch Locations)
													Total		8,295					8,389					16,409						15,842
Noninterest Bearing Deposits			$	337,140
											Income Before Taxes			3,541					3,594				6,445					7,011						VERMONT
Interest Bearing Deposits			662,778					610,540
																																Berlin			1028 US Route 302					802.476.0061
Time Deposits			103,135					113,567					Income Tax Expense		610					603				1,032						1,144						Fairfax			Jct. Routes 104 & 128			802.849.2600
																																				Hardwick			103 VT Route 15 West			802.472.8100
Borrowed Funds			—					7,164					Net income		$	2,931								$	5,413					$	5,867					Jeffersonville			5062 VT Route 15			802.644.6600
																																				Jericho			368 VT Route 15			802.899.7500
Subordinated Debentures and Notes			16,188					—					Earnings per share		$	0.65								$	1.20					$	1.31					Johnson			198 Lower Main Street			802.635.6600
																																				Lyndonville			183 Depot Street			802.626.3100
Accrued Interest & Other Liabilities			12,726					8,926					Book Value Per Share											$	13.34					$	18.37					Morrisville			20 Lower Main Street			802.888.6600
																																							65 Northgate Plaza			802.888.6860
Common Stock			9,940					9,916																												Shelburne			5068 Shelburne Road			802.985.0250
																																				St. Albans			15 Mapleville Depot			802.524.9000
Additional Paid-in Capital			2,019					1,609																												St. Johnsbury			Operations and Loan Center
Retained Earnings																																							364 Railroad Street			802.748.3131
		80,617					74,006																														Branch
Accumulated OtherComprehensive (loss) Income			(28,399)					1,001																															325 Portland Street			802.748.3121
																																Stowe			47 Park Street					802.253.6600
													Williston		Branch
Treasury Stock at Cost			(4,231)					(4,165)											31 Market St				802.878.7900
																			Loan Center
Total Liabilities & Shareholders' Equity			$	1,191,913					1,066,137										31 Market St				802.865.1000
Standby letters of credit were 1,805,000 and 2,425,000 at June 30, 2022 and 2021, 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
		Commercial Loan Center
		2541 White Mountain Hwy					603.662.9408

All values are in US Dollars.