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 5, 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 August 5, 2021, Union Bankshares, Inc (the "Company") distributed its Second Quarter 2021 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, 2021 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 2021 Report to Shareholders distributed August 5, 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.
August 5, 2021	/s/ Karyn J. Hale
	Karyn J. Hale
	Chief Financial Officer

EXHIBIT INDEX

Exhibit 99.1	Union Bankshares, Inc. Second Quarter 2021 Report to Shareholders distributed August 5, 2021.

Document

Exhibit 99.1

August 5, 2021
We are pleased to announce our financial results for the three and six months ended June 30, 2021. Consolidatednet income for the three months ended June 30, 2021 was 3.0 million, or 0.67 per share, compared to 2.7 million, or 0.60 per share, for the same period in 2020, representing a 12.1% improvement quarter over quarter. Consolidated net income year to date was 5.9 million, or 1.31 per share, for the period ended June 30, 2021, compared to 4.9 million, or 1.09 per share, for the same period in 2020, representing a 20.4% improvement compared to 2020 thus far.Increases in deposits contributed to total assets reaching 1.07 billion as of June 30, 2021 from 917.1 million as of June 30, 2020. Total loans were 783.0 million as of June 30, 2021 compared to 735.4 million as of June 30, 2020, an increase of 47.7 million primarily due to growth in the residential and commercial real estate portfolios. Total deposits increased 148.2 million, or 18.1%, since June 30, 2020 due to the general increase of money supply provided to our customers through various stimulus packages. The Company had total equity capital of 82.4 million with a book value per share of 18.37 as of June 30, 2021 compared to 75.8 million and 16.93 per share as of June 30, 2020. The company’s subsidiary, Union Bank, continued its participation in the Paycheck Protection Program (“PPP”) initiated by the Small Business Administration (“SBA”) to help businesses and non-profits survive the financial impacts of the global pandemic and originated 31.8 million in PPP loans in 2021. This was in addition to the 70.3 million in PPP loans originated in 2020, for a total of 102.1 million in origination under the PPP. As of June 30, 2021, 44.8 million in PPP loans have been forgiven by the SBA, representing complete forgiveness of all forgiveness applications processed to date. The SBA PPP program along with other federal and state programs designed to				buffer consumers, businesses and non-profits have been vital in restoring the economy in the markets we serve. <br><br>The massive influx of cash pumped into the national economy to counter act the negative impacts caused by the closure of large segments of our economy due to the pandemic is creating lingering economic distortions. Those in a borrowing mode in their life cycle are winners, while savers and depositors are losers due to artificially low interest rates. Demand for homes has surged as a result of low interest rates, the general safety and desirability of our region, and the ability for many to work remotely. In some cases, this is having the unintended consequence of pricing many locals out of the market. Pent up demand for leisure travel and dining out is supporting our travel and tourism sectors, a vital component of the region we serve, however these same businesses are facing major staffing challenges, as workforce participation has not yet returned to normal. We are relieved to be where we are today from an economic perspective.<br><br>In April we purchased a former bank branch located in Shelburne, Vermont. We plan to open this facility in October, 2021. This investment is intended to complement our entrance into Chittenden County with the opening of our Williston and Jericho branches in 2019. <br><br>The Board of Directors declared a cash dividend of $0.33 per share for the quarter payable August 5, 2021 to shareholders of record as of July 31, 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	JUNE 30, 2021					JUNE 30, 2020						JUNE 30, 2021				JUNE 30, 2020				JUNE 30, 2021					JUNE 30, 2020									Timothy W. Sargent-Vice Chair					David S. Silverman - President & CEO
					Joel S. Bourassa					Jeffrey G. Coslett- Vice President
															(3 months ended)									(6 months ended)
																							Karyn J. Hale - Chief Financial Officer
Cash and Due from Banks			$	4,952								Interest Income	$	9,898					9,139					$	19,398					$	18,102
																											John M. Goodrich									John H. Steel - Secretary
																											Nancy C. Putnam									Kristy Adams Alfieri - Assistant Secretary
Federal Funds Sold & Overnight Deposits			56,279					30,579				Interest Expense	979					1,361				2,080						2,818						Gregory D. Sargent
												Net Interest Income	8,919					7,778				17,318						15,284						David S. Silverman
Interest Bearing Deposits in Banks			12,948					9,802																		John H. Steel
											75				500				225					800
Investment Securities			159,275					86,221				Net Interest Income After<br>Provision for Loan Losses	8,844					7,278				17,093						14,484						Union Bank					REGIONAL<br>ADVISORY BOARD<br>MEMBERS
Loans Held for Sale			42,149					43,550
											198				178				383					351						DIRECTORS
Loans, net			740,896					691,837				Noninterest Income	2,941					2,810				5,377						5,155						Neil J. Van Dyke -Chair					Michael R. Barrett - St. Johnsbury
																										Timothy W. Sargent -Vice Chair								Steven J. Bourgeois - St. Albans
Reserve for Loan Losses			(8,505)					(6,888)				Noninterest Expenses:																						Joel S. Bourassa					Andrew A. Dean - Northern NH
												Salaries & Wages	3,553					2,829				6,636						5,950						Dawn D. Bugbee					Stanley T. Fillion - Northern NH
Premises and Equipment, net			21,637					20,379																										John M. Goodrich					Rosemary H. Gingue - St. Johnsbury
												Employee Benefits	1,203					1,231				2,372						2,213						Nancy C. Putnam					John M. Goodrich - St. Johnsbury
Accrued Interest & other Assets			36,506					35,554																		Gregory D. Sargent								Christopher M. Knapp - Northern NH
																																		David S. Silverman					Coleen K. Kohaut - St. Albans
Total Assets			$	1,066,137								Occupancy Expense, net	527					477				1,004						991						Janet P. Spitler					Justin P. Lavely - St. Johnsbury
																																		John H. Steel					Daniel J. Luneau - St. Albans
												Equipment Expense	872					756				1,670						1,496											Mary K. Parent - St. Johnsbury
																																		Samuel H. Ruggiano - St. Albans
																																							Christine A. Sheley - Northern NH
												Other Expenses	2,234					1,818				4,160						3,633											David S. Silverman - All
																					Union Bank Offices<br><br>(ATMs at all Branch Locations)
LIABILITIES & SHAREHOLDERS' EQUITY	JUNE 30, 2021					JUNE 30, 2020						Total	8,389					7,111					15,842						14,283
												Income Before Taxes	3,594					3,155				7,011						5,707						VERMONT
Noninterest Bearing Deposits			$	243,573
																																Berlin			1028 US Route 302					802.476.0061
Interest Bearing Deposits			610,540					484,496				Income Tax Expense	603					487				1,144						843						Fairfax			Jct. Routes 104 & 128				802.849.2600
																														Hardwick			103 VT Route 15 West					802.472.8100
Time Deposits			113,567					146,255				Net income	$	2,991								$	5,867					$	4,864					Jeffersonville			5062 VT Route 15				802.644.6600
																																		Jericho			368 VT Route 15				802.899.7500
Borrowed Funds			7,164					9,497				Earnings per share	$	0.67								$	1.31					$	1.09					Johnson			198 Lower Main Street				802.635.6600
																																		Lyndonville			183 Depot Street				802.626.3100
Accrued Interest & Other Liabilities			8,926					12,327				Book Value Per Share										$	18.37					$	16.93					Morrisville			20 Lower Main Street				802.888.6600
																																					65 Northgate Plaza				802.888.6860
Common Stock			9,916					9,901																										St. Albans			15 Mapleville Depot				802.524.9000
																																		St. Johnsbury			Operations and Loan Center
Additional Paid-in Capital			1,609					1,306																													364 Railroad Street				802.748.3131
Retained Earnings																																					Branch
		74,006					66,020																												325 Portland Street					802.748.3121
Accumulated OtherComprehensive Income			1,001					2,717																										Stowe			47 Park Street				802.253.6600
																														Williston			Branch
													31 Market St					802.878.7900
Treasury Stock at Cost			(4,165)					(4,177)									Loan Center
																	31 Market St				802.865.1000
Total Liabilities & Shareholders' Equity			$	1,066,137					917,083
Standby letters of credit were 2,425,000 and 2,346,000 at June 30, 2021 and 2020, 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.