FALSE000070686300007068632022-08-042022-08-04

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. ☐

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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.

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. 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. 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. 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. 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 11717 866.321.8022 or 720.378.5956 E-mail: [email protected]

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, 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.

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			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			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)
																																																Dawn D. Bugbee						Timothy W. Sargent - Secretary
			Cash and Due from Banks						$	4,411					$	4,952					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
																					Provision for Loan Losses			—						75						—						225
			Investment Securities						262,827						159,275						Net Interest Income After Provision for Loan Losses			9,671						8,844						18,634						17,093						Union Bank						REGIONAL ADVISORY BOARD MEMBERS
			Loans Held for Sale						3,820						42,149
																					Trust Income			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					$	1,066,137					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 (ATMs at all Branch Locations)
																					Total			8,295						8,389						16,409						15,842
			Noninterest Bearing Deposits						$	337,140					$	243,573
																					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					$	2,991					$	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					$	0.67					$	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 Other Comprehensive (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
																																																Lincoln			135 Main Street						603.745.4000
																																																North Conway			Commercial Loan Center
																																																			2541 White Mountain Hwy						603.662.9408