FALSE000070686300007068632022-11-032022-11-03

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 3, 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 November 3, 2022, Union Bankshares, Inc (the "Company") distributed its Third 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 nine months ended September 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. Third Quarter 2022 Report to Shareholders distributed November 3, 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.
November 3, 2022			/s/ Karyn J. Hale
			Karyn J. Hale
			Chief Financial Officer

EXHIBIT INDEX

Exhibit 99.1			Union Bankshares, Inc. Third Quarter 2022 Report to Shareholders distributed November 3, 2022.

Exhibit 99.1

November 3, 2022

We are pleased to report the financial results for Union Bankshares, Inc. as of September 30th, 2022. Consolidated net income for the three months ended September 30, 2022 was $3.8 million, compared to $3.9 million, for the same period in 2021, and $9.2 million, for the nine months ended September 30, 2022, compared to $9.8 million, for the same period in 2021. Total assets were $1.3 billion as of September 30, 2022, compared to $1.2 billion as of September 30, 2021, an increase of $142.0 million, or 12.3%. Given the changes in the operating environment in 2022 compared to 2021, Management and the Board are generally pleased with these results. When we developed our business plan for 2022, we expected moderately increasing interest rates, a slowing real estate market, and lower balance sheet growth. While we were directionally correct, we did not anticipate the magnitude of interest rate increases and the rapid slowing of the real estate market. We also did not forecast the sharp increase in inflation, particularly in the energy sector. As a result, the Federal Reserve began to fight inflation with substantial interest rate hikes that continue to this day. Sharp increases in short term rates and prospects for continued inflation caused long term residential loan rates to more than double, slowing the real estate market already constrained by a lack of available-for-sale inventory. The slowing housing market and rapidly increasing interest rate environment resulted in a significant decrease in fee income from selling residential loans. Loan sales for the first nine months of 2022 generated fee income of $748 thousand, compared to $4.0 million for the first nine months of 2021. At the same time, our asset sensitive balance sheet, as well as strong loan origination volume, increased our net interest income to $29.1 million for the first nine months of 2022 compared to 26.5 million for the first nine months of 2021, an increase of $2.6 million.

Total loans outstanding as of September 30, 2022 were $942.5 million compared to $790.0 million as of September 30, 2021, an increase of $152.5 million, or 19.3%. Although less than prior years, loan demand for commercial and residential real estate remained strong during the first nine months of 2022. Construction loans remain strong with significant committed, but unadvanced funds available to be drawn in the coming months, which will continue to increase balances outstanding. Investment securities were $255.7 million as of September 30, 2022. Most of these securities, primarily US government agency debt securities, were purchased prior to the recent increases in interest rates. The increase in interest rates, specifically the 10-year treasury rate, has decreased the current market value of the portfolio by $51.8 million as of September 30, 2022. Management assesses the credit quality of the investment portfolio as satisfactory and does not expect to realize losses from the portfolio. We have just enjoyed another spectacular fall foliage season, with temperate weather and glorious leaf viewing shared with the many people who visit and enjoy our region. We feel blessed to live where others aspire to visit and hope for a more peaceful world stage than we have experienced this year. We are pleased to report that the Board of Directors declared a cash dividend of $0.35 per share for the quarter payable November 3, 2022, to shareholders of record as of October 29, 2022.

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			Sept 30, 2022						Sept 30, 2021									Sept 30, 2022						Sept 30, 2021						Sept 30, 2022						Sept 30, 2021									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)
																																																Dawn D. Bugbee						Timothy W. Sargent - Secretary
			Cash and Due from Banks						$	4,061					$	5,029					Interest Income			$	11,463					$	9,852					$	31,593					$	29,250
																																																Nancy C. Putnam						Kristy Adams Alfieri - Assistant Secretary
																																																Gregory D. Sargent
			Federal Funds Sold & Overnight Deposits						28,080						115,052						Interest Expense			1,023						706						2,519						2,786						David S. Silverman
																					Net Interest Income			10,440						9,146						29,074						26,464						Janet P. Spitler
			Interest Bearing Deposits in Banks						14,441						12,201
																					Provision for Loan Losses			—						—						—						225
			Investment Securities						241,255						185,387						Net Interest Income After Provision for Loan Losses			10,440						9,146						29,074						26,239						Union Bank						REGIONAL ADVISORY BOARD MEMBERS
			Loans Held for Sale						3,143						17,821
																					Trust Income			203						216						629						599						DIRECTORS
			Loans, net						939,352						772,222						Noninterest Income			2,264						3,985						6,058						9,362						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)						(8,561)						Noninterest Expenses:																											Joel S. Bourassa						Andrew A. Dean - Northern NH
																					Salaries & Wages			3,575						3,918						10,505						10,554						Dawn D. Bugbee						Stanley T. Fillion - Northern NH
			Premises and Equipment, net						20,718						21,808																																	Mary K. Parent						Rosemary H. Gingue - St. Johnsbury
																					Employee Benefits			1,151						1,192						3,751						3,564						Nancy C. Putnam						John M. Goodrich - St. Johnsbury
			Accrued Interest & other Assets						57,580						37,327																																	Gregory D. Sargent						Christopher M. Knapp - Northern NH
																																																David S. Silverman						Coleen K. Kohaut - St. Albans
			Total Assets						$	1,300,290					$	1,158,286					Occupancy Expense, net			448						425						1,437						1,429						Janet P. Spitler						Justin P. Lavely - St. Johnsbury
																																																						Daniel J. Luneau - St. Albans
																					Equipment Expense			948						872						2,798						2,542												Samuel H. Ruggiano - St. Albans
																																																						Christine A. Sheley - Northern NH
																																																						David S. Silverman - All
			LIABILITIES & SHAREHOLDERS' EQUITY			Sept 30, 2022						Sept 30, 2021									Other Expenses			2,244						2,141						6,284						6,301
																																																Union Bank Offices (ATMs at all Branch Locations)
																					Total			8,366						8,548						24,775						24,390
			Noninterest Bearing Deposits						$	337,513					$	252,940
																					Income Before Taxes			4,541						4,799						10,986						11,810						VERMONT
			Interest Bearing Deposits						722,208						680,438
																																																Berlin			1028 US Route 302						802.476.0061
			Time Deposits						136,691						107,266						Income Tax Expense			783						874						1,815						2,018						Fairfax			Jct. Routes 104 & 128						802.849.2600
																																																Hardwick			103 VT Route 15 West						802.472.8100
			Borrowed Funds						25,000						7,000						Net income			$	3,758					$	3,925					$	9,171					$	9,792					Jeffersonville			5062 VT Route 15						802.644.6600
																																																Jericho			368 VT Route 15						802.899.7500
			Subordinated Notes						16,196						16,164						Earnings per share			$	0.84					$	0.87					$	2.04					$	2.18					Johnson			198 Lower Main Street						802.635.6600
																																																Lyndonville			183 Depot Street						802.626.3100
			Accrued Interest & Other Liabilities						12,954						10,730						Book Value Per Share															$	11.06					$	18.67					Morrisville			20 Lower Main Street						802.888.6600
																																																			65 Northgate Plaza						802.888.6860
			Common Stock						9,941						9,918																																	Shelburne			5068 Shelburne Road						802.985.0250
																																																St. Albans			15 Mapleville Depot						802.524.9000
			Additional Paid-in Capital						2,150						1,728																																	St. Johnsbury			Operations and Loan Center
			Retained Earnings																																																364 Railroad Street						802.748.3131
									82,801						76,452																																				Branch
			Accumulated Other Comprehensive (loss) Income						(40,938)						(188)																																				325 Portland Street						802.748.3121
																																																Stowe			47 Park Street						802.253.6600
																																																Williston			Branch
			Treasury Stock at Cost						(4,226)						(4,162)																																				31 Market St						802.878.7900
																																																			Loan Center
			Total Liabilities & Shareholders' Equity						$	1,300,290					$	1,158,286																																			31 Market St						802.865.1000
			Standby letters of credit were $1,729,000 and $2,364,000 at September 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