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): February 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. ☐

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 February 3, 2022, Union Bankshares, Inc (the "Company") distributed its Fourth 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 twelve months ended December 31, 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. Fourth Quarter 2021 Report to Shareholders distributed February 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.
February 3, 2022	/s/ Karyn J. Hale
	Karyn J. Hale
	Chief Financial Officer

EXHIBIT INDEX

Exhibit 99.1	Union Bankshares, Inc. Fourth Quarter 2021 Report to Shareholders distributed February 3, 2022.

Document

Exhibit 99.1

February 3, 2022
We are pleased to report our full year 2021 financial results.Consolidated net income was 13.2 million, or 2.94 per share,compared to 12.8 million, or 2.86 per share, for the year ended December 31, 2021 and 2020, respectively. The improvement in earnings was due to a 4.1 million increase in net interest income and a decrease of 2.2 million in the provision for loan losses, partially offset by a decrease in noninterest income of 3.0 million and increases in noninterest expenses of 2.7 million and income tax expense of 227 thousand.Total assets increased to 1.2 billion as of December 31, 2021, from 1.1 billion as of December 31, 2020, growth of 112.1 million, or 10.3%. Balance sheet growth was driven by an increase in customer deposit balances of 100.8 million which funded loan originations and increases in investment securities. Theinvestment portfolio, including interest bearing deposits in banks, increased 162.6 million, or 136.1%, to 282.1 million as of December 31, 2021, from 119.5 million as of December 31, 2020, as higher yields were sought on excess liquidity. Outstanding loan balances were 801.6 million as of December 31, 2021, compared to 803.2 million as of December 31, 2020. Contributing to the slight decrease in outstanding loans year over year was 52.7 million of SBA PPP loans forgiven throughout 2021.During 2020 and 2021, customer deposits have increased 351.1 million, a direct result of monetary and fiscal stimulus at the federal level. Those monies were utilized to fund loan originations and investment purchases. The loan portfolio increased 122.9 million and the investment portfolio increased 187.5 million. We would prefer to deploy funds into loans in order to maximize yield, but it takes longer to carefully source,underwrite, and originate sound and profitable loans than it does to acquire government debt securities.As announced on August 26, 2021, the Company completed a private placement of 16.5 million in aggregate principal amount of fixed-to-floating rate subordinated notes due				2031 to certain qualified institutional buyers and accredited investors. Proceeds from the sale of the notes were used to provide additional capital support to the Company’s wholly-owned subsidiary, Union Bank, to support growth and for other general corporate purposes. The Directors and Management are pleased to have timed the debt issuance to obtain a favorable initial coupon of 3.25%.<br><br>Looking back at 2020 and 2021 from the Company’s<br>perspective, we are extremely fortunate to have fared as<br>well as we did. Most of our business and retail customers have survived and in some cases are doing much better than in 2019, the last year untouched by the pandemic. Monetary and fiscal policy at the federal level dampened the negative economic impact of the pandemic, though it undeniably harmed those less fortunate among us.<br><br>Currently, the most immediate challenges our customers (and the bank) are facing include maintaining a stable workforce, supply chain disruptions and elevated inflation. We are blessed to occupy an area much loved by leisure travelers for our variety of outdoor recreation opportunities and world class hospitality amenities. Demand for travel to our area has been excellent.<br><br>We are pleased to inform you that the Board of Directors declared a cash dividend of $0.35 per share at our meeting held on January 19, 2022, an increase of 6.1% from the cash dividend of $0.33 paid in recent prior quarters, payable February 3, 2022 to shareholders of record as of January 29, 2022.<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	DEC 31, 2021					DEC 31, 2020							DEC 31, 2021					DEC 31, 2020				DEC 31, 2021					DEC 31, 2020									Timothy W. Sargent-Vice Chair					David S. Silverman - President & CEO
					Joel S. Bourassa					Jeffrey G. Coslett- Vice President
																	(3 months ended)									(12 months ended)
																									Karyn J. Hale - Chief Financial Officer
Cash and Due from Banks			$	4,659									Interest Income		$	10,023					9,305					$	39,273					$	36,750
																													John M. Goodrich									John H. Steel - Secretary
																													Nancy C. Putnam									Kristy Adams Alfieri - Assistant Secretary
Federal Funds Sold & Overnight Deposits			61,263					117,358					Interest Expense		779					1,171				3,565						5,147						Gregory D. Sargent
													Net Interest Income		9,244					8,134				35,708						31,603						David S. Silverman
Interest Bearing Deposits in Banks			13,196					12,699																				John H. Steel
												(225)					600				—					2,200
Investment Securities			268,951					106,810					Net Interest Income After<br>Provision for Loan Losses		9,469					7,534				35,708						29,403						Union Bank					REGIONAL<br>ADVISORY BOARD<br>MEMBERS
Loans Held for Sale			13,829					32,188
												209					183				808					707						DIRECTORS
Loans, net			787,755					771,023					Noninterest Income		2,793					4,806				12,155						15,296						Neil J. Van Dyke -Chair					Michael R. Barrett - St. Johnsbury
																												Timothy W. Sargent -Vice Chair								Steven J. Bourgeois - St. Albans
Reserve for Loan Losses			(8,336)					(8,271)					Noninterest Expenses:																							Joel S. Bourassa					Andrew A. Dean - Northern NH
													Salaries & Wages		3,894					3,552				14,448						13,220						Dawn D. Bugbee					Stanley T. Fillion - Northern NH
Premises and Equipment, net			21,615					20,039																												John M. Goodrich					Rosemary H. Gingue - St. Johnsbury
													Employee Benefits		1,029					1,163				4,593						4,580						Nancy C. Putnam					John M. Goodrich - St. Johnsbury
Accrued Interest & other Assets			42,429					36,295																				Gregory D. Sargent								Christopher M. Knapp - Northern NH
																																				David S. Silverman					Coleen K. Kohaut - St. Albans
Total Assets			$	1,205,361									Occupancy Expense, net		461					394				1,890						1,805						Janet P. Spitler					Justin P. Lavely - St. Johnsbury
																																				John H. Steel					Daniel J. Luneau - St. Albans
													Equipment Expense		883					791				3,425						3,057											Mary K. Parent - St. Johnsbury
																																				Samuel H. Ruggiano - St. Albans
																																									Christine A. Sheley - Northern NH
LIABILITIES & SHAREHOLDERS' EQUITY	DEC 31, 2021					DEC 31, 2020							Other Expenses		2,198					2,004				8,499						7,520											David S. Silverman - All
																								Union Bank Offices<br><br>(ATMs at all Branch Locations)
													Total		8,465					7,904					32,855						30,182
Noninterest Bearing Deposits			$	264,888
											Income Before Taxes			4,006					4,619				15,816					15,224						VERMONT
Interest Bearing Deposits			723,479					637,369
																																Berlin			1028 US Route 302					802.476.0061
Time Deposits			106,715					141,688					Income Tax Expense		628					825				2,646						2,419						Fairfax			Jct. Routes 104 & 128			802.849.2600
																																				Hardwick			103 VT Route 15 West			802.472.8100
Borrowed Funds			—					7,164					Net income		$	3,378								$	13,170					$	12,805					Jeffersonville			5062 VT Route 15			802.644.6600
																																				Jericho			368 VT Route 15			802.899.7500
Subordinated Debentures and Notes			16,171					—					Earnings per share		$	0.76								$	2.94					$	2.86					Johnson			198 Lower Main Street			802.635.6600
																																				Lyndonville			183 Depot Street			802.626.3100
Accrued Interest & Other Liabilities			9,767					11,221					Book Value Per Share											$	18.77					$	18.05					Morrisville			20 Lower Main Street			802.888.6600
																																							65 Northgate Plaza			802.888.6860
Common Stock			9,934					9,910																												Shelburne			5068 Shelburne Road			802.985.0250
																																				St. Albans			15 Mapleville Depot			802.524.9000
Additional Paid-in Capital			1,769					1,393																												St. Johnsbury			Operations and Loan Center
Retained Earnings																																							364 Railroad Street			802.748.3131
		78,350					71,097																														Branch
Accumulated OtherComprehensive Income			(1,552)					2,636																															325 Portland Street			802.748.3121
																																Stowe			47 Park Street					802.253.6600
													Williston		Branch
Treasury Stock at Cost			(4,160)					(4,169)											31 Market St				802.878.7900
																			Loan Center
Total Liabilities & Shareholders' Equity			$	1,205,361					1,093,554										31 Market St				802.865.1000
Standby letters of credit were 2,158,000 and 3,115,000 at December 31, 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.