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): May 6, 2021

(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))

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 May 6, 2021, Union Bankshares, Inc (the "Company") distributed its First Quarter 2021 unaudited Report to Shareholders (the "Quarterly Report") presenting information concerning the Company's results of operations and financial condition for the three months ended March 31, 2021 and declaration of a regular quarterly dividend, along with a copy of the Company's press release issued on April 21, 2021 announcing its quarterly results. A copy of the Quarterly Report is furnished as Exhibit 99.1 to this Current Report on Form 8-K. The Company's press release which accompanied the Quarterly Report was previously furnished as Exhibit 99.1 to the Company's Current Report on Form 8-K filed on April 22, 2021.

Item 9.01: Financial Statements and Exhibits

d) Exhibits:

99.1	Union Bankshares, Inc. First Quarter 2021 Report to Shareholders distributed May 6, 2021 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.
May 6, 2021	/s/ David S. Silverman
	David S. Silverman
	President/Chief Executive Officer
May 6, 2021	/s/ Karyn J. Hale
	Karyn J. Hale
	Chief Financial Officer

EXHIBIT INDEX

Exhibit 99.1	Union Bankshares, Inc. First Quarter 2021 Report to Shareholders distributed May 6, 2021.

Document

Exhibit 99.1

May 6, 2021
We are pleased to report our financial results for the first quarter of 2021. Consolidated net income was 2.9 million, compared to 2.2 million, for the same period in 2020, an increase of 30.9%. Total assets were 1.1 billion as of March 31, 2021 compared to 883.1 million as of March 31, 2020, an increase of 25.1%. The Board of Directors and Management are pleased with the solid performance in terms of both asset growth and improved net income for the first quarter. More complete financial performance information can be found in the enclosed earnings press release and our upcoming quarterly 10-Q filing.We entered 2021 with cautious optimism about the local economy. In late December 2020 two pivotal things occurred, the beginning of distribution of the Covid 19 vaccine, and the passage of another round of federal stimulus packages including the second round of the SBA Paycheck Protection Program loans. As a result, we re-entered the PPP loan origination business, processing 276 new second round PPP loans for a total of 27 million during the first quarter of 2021. This was in addition to the 700 loans and 70 million in first round PPP loans we originated in 2020. We are now processing PPP forgiveness applications, helping our borrowers turn these loans into grants. While imperfect, the PPP loans and other State and Federal business and consumer aid programs have greatly benefited our customers, our community, and our company. We have worked with our borrowers throughout the pandemic, granting payment deferrals and modifications to allow consumers, businesses, and non-profit entities remain solvent during the time the economy was essentially closed. We had executed 352 deferrals and modifications on outstanding loan balances of 167.2 million as of March 31, 2021. Of the total deferrals issued, 53, representing balances of 28 million remained in effect as of March 31, 2021. The majority of the remaining deferrals return to regular payments during the second quarter of 2021 and we believe most of our borrowers will be able to exit deferral status.				A by-product of the pandemic has been an increase in people from away enjoying prolonged visits to our area. We see more out of state license plates on our roads, and at restaurants and shops. We read about the booming real estate market and see increased applications for loans to purchase real estate. We wonder whether this phenomenon is transitory or structural and how this may impact our communities. Our service area can use an influx in working age people as the recent trend has been slow growth and a general aging of the population.<br><br>Looking forward, our local economy is improving. Despite a short maple syrup crop, travel and tourism are rebounding with strong pent-up demand from our “drive” markets. Real estate sales and home construction are booming and residential lending is brisk. The chief economic challenges in the short term will be labor shortages and supply chain disruptions. We are collectively in a far better place than we were at this time last year.<br><br>You should have received your proxy and notice of our Annual Meeting to be held virtually on May 19, 2021 at 3:00pm. We will miss seeing our friends again this year and expect to resume an in-person meeting in 2022. <br><br>We are pleased to share that the Board of Directors declared a cash dividend of $0.33 per share for the quarter payable May 6, 2021 to shareholders of record as of May 1, 2021.
	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, two 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	MARCH 31, 2021					MARCH 31, 2020									MARCH 31, 2021				MARCH 31, 2020							Timothy W. Sargent-Vice Chair						David S. Silverman - President & CEO
					Joel S. Bourassa					Jeffrey G. Coslett- Vice President
																		(3 months ended)
																	Steven J. Bourgeois					Karyn J. Hale - Chief Financial Officer
Cash and Due from Banks			$	4,684								Interest Income											$	9,500				$	8,963
																		Dawn D. Bugbee							John H. Steel - Secretary
																		John M. Goodrich							Kristy Adams Alfieri - Assistant Secretary
Federal Funds Sold & Overnight Deposits			51,822					35,488				Interest Expense									1,101					1,457						Nancy C. Putnam
												Net Interest Income									8,399					7,506						David S. Silverman
Interest Bearing Deposits in Banks			14,691					6,067												John H. Steel
																		150					300
Investment Securities			143,063					90,028				Net Interest Income After<br>Provision for Loan Losses									8,249					7,206						Union Bank				REGIONAL<br>ADVISORY BOARD<br>MEMBERS
Loans Held for Sale			40,212					16,456
																		185					173					DIRECTORS
Loans, net			801,489					677,587				Noninterest Income									2,436					2,345						Neil J. Van Dyke -Chair				Michael R. Barrett - St. Johnsbury
																				Timothy W. Sargent -Vice Chair							Steven J. Bourgeois - St. Albans
Reserve for Loan Losses			(8,429)					(6,391)				Noninterest Expenses:																				Joel S. Bourassa				Andrew A. Dean - Northern NH
												Salaries & Wages									3,083					3,121						Steven J. Bourgeois				Stanley T. Fillion - Northern NH
Premises and Equipment, net			19,882					20,528																								Dawn D. Bugbee				Rosemary H. Gingue - St. Johnsbury
												Employee Benefits									1,169					982						John M. Goodrich				John M. Goodrich - St. Johnsbury
Accrued Interest & other Assets			36,904					37,100												Nancy C. Putnam							Christopher M. Knapp - Northern NH
																																Gregory D. Sargent				Coleen K. Kohaut - St. Albans
Total Assets			$	1,104,318								Occupancy Expense, net									477					514						David S. Silverman				Justin P. Lavely - St. Johnsbury
																																Janet P. Spitler				Daniel J. Luneau - St. Albans
												Equipment Expense									798					740						John H. Steel				Mary K. Parent - St. Johnsbury
																											Samuel H. Ruggiano - St. Albans
																																				Christine A. Sheley - Northern NH
												Other Expenses									1,926					1,815										David S. Silverman - All
																				Union Bank Offices<br><br>(ATMs at all Branch Locations)
LIABILITIES & SHAREHOLDERS' EQUITY	MARCH 31, 2021					MARCH 31, 2020						Total										7,453					7,172
												Income Before Taxes									3,417					2,552						VERMONT
Noninterest Bearing Deposits			$	231,992
																														Berlin			1028 US Route 302				802.476.0061
Interest Bearing Deposits			648,960					449,943				Income Tax Expense									541					356						Fairfax		Jct. Routes 104 & 128				802.849.2600
																												Hardwick			103 VT Route 15 West				802.472.8100
Time Deposits			126,939					146,154				Net income									$	2,876				$	2,196					Jeffersonville		5062 VT Route 15				802.644.6600
																																Jericho		368 VT Route 15				802.899.7500
Borrowed Funds			7,164					62,164				Earnings per share									$	0.64				$	0.49					Johnson		198 Lower Main Street				802.635.6600
																																Lyndonville		183 Depot Street				802.626.3100
Accrued Interest & Other Liabilities			9,440					11,075				Book Value Per Share									$	17.81				$	16.50					Morrisville		20 Lower Main Street				802.888.6600
																																		65 Northgate Plaza				802.888.6860
Common Stock			9,911					9,899																								St. Albans		15 Mapleville Depot				802.524.9000
																																St. Johnsbury		364 Railroad Street				802.748.3131
Additional Paid-in Capital			1,504					1,226																										325 Portland Street				802.748.3121
Retained Earnings																																Stowe		47 Park Street				802.253.6600
		72,494					64,783																							Williston			Branch
Accumulated OtherComprehensive Income			81					2,061																										31 Market St				802.878.7900
																							Loan Center
													31 Market St				802.865.1000
Treasury Stock at Cost			(4,167)					(4,181)
Total Liabilities & Shareholders' Equity			$	1,104,318					883,087					NEW HAMPSHIRE
Standby letters of credit were 2,609,000 and 2,306,000 at March 31, 2021 and 2020, respectively.														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.