8-K

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 6, 2020

(Exact name of registrant as specified in its charter)

UNION BANKSHARES, INC.

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 and 99.2 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 6, 2020, Union Bankshares, Inc (the "Company") distributed its Second Quarter 2020 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, 2020 and declaration of a regular quarterly dividend, along with a copy of the Company's press release issued on July 15, 2020 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 July 15, 2020.

Item 9.01: Financial Statements and Exhibits

d) Exhibits:

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.

EXHIBIT INDEX

Document

Exhibit 99.1

		August 6, 2020
		We are enclosing our press release dated July 15, 2020 which details our operating results for the second quarter of 2020 and year to date through June 30th. This allows us to provide more information to you about bank operations and local economic conditions, and potential impact on your company’s financial performance, all in the context of the pandemic health crisis our country faces.<br><br>Thus far, the areas we serve, Northern Vermont and Northern New Hampshire, have fared well during the pandemic from a human health standpoint. Bank operations have settled into a “new normal” as our branch lobbies have re-opened with plexiglass shields at teller windows, limits on the number of customers entering at a given time, and staff wearing masks. We have approximately 60 employees now working from home that we are not yet ready to bring back into bank facilities, though some are more than ready to return. We are developing a plan for bringing staff back into our offices while following appropriate social distancing protocols. We, like many businesses, are anxiously watching how schools and daycare facilities are going to operate this fall as this will greatly impact our workforce. <br><br>As the pandemic has unfolded, the economic impact on our communities has been uneven, with both positive and negative consequences for the people and businesses in our region. The variables have been government directives, the consumer’s reaction to the pandemic, and the creativity and resilience of business managers. Government directives for businesses to close and requiring people to stay home have obviously had a deleterious effect on all businesses not deemed “essential.” Many of these businesses such as residential construction, farm and garden, outdoor recreation retailers, and take out food service have roared back to life and in some cases are exceeding pre-pandemic sales as government restrictions have been lifted. Lodging and “dine in” restaurants and their employees continue to have their sales volumes off, in many cases significantly. As we			discussed in our first quarter letter, we have participated fully in the SBA Payroll Protection Program and been able to grant nearly $70 million of these 100% government guaranteed loans to our business customer base. Between the PPP loan program and other loan and grant programs we believe that the majority of our business customers are financially stable, at least temporarily. The federal and state assistance is serving to mask the potential long-term impacts of the pandemic caused recession on many of our business borrowers. We are continually assessing our asset quality by staying close to our customers with regular communications so we may assist them assess their individual circumstances. and understand which borrowers may ultimately default. <br><br>The very low interest rate environment is creating challenges and opportunities for the bank. While our net interest margin is being squeezed, mortgage lending is much busier than expected. This is benefiting us as we generate gains on residential loans sold on the secondary market. Long term, our region and economy are benefiting from families relocating to our rural, less densely populated region, reversing a persistent outmigration trend. <br><br>Thus far in 2020 we have substantially increased our Loan Loss Reserve compared to prior years. Management continues to monitor the variables that impact the loan loss reserve which may warrant further increases in reserves for the balance of 2020. We considered the adequacy of our loan loss reserve, our overall capitalization, and our strong earnings year to date when the Board of Directors approved a 32 cent per share dividend, to holders of record as of July 27, 2020, payable on August 6, 2020. <br><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. <br>P.O. Box 1342 <br>Brentwood, NY 11717<br>866.321.8022 or<br>720.378.5956<br>E-mail: shareholder@broadridge.com
	NASDAQ STOCK MARKET
	Ticker Symbol: UNB<br>Corporate Name: Union Bankshares, Inc.<br>Corporate Address:<br>20 Lower Main Street<br>P.O. Box 667<br>Morrisville, VT 05661-0667<br>Investor Relations: UBLocal.com
				Neil J. Van Dyke<br><br>Chair	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 20 banking offices, two loan centers and several ATMs throughout its geographical footprint.<br><br>Union Bank has been helping people buy homes and local businesses create jobs in area communities since opening its doors over 127 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.
Consolidated Balance Sheets(unaudited, in thousands)																	Consolidated Statements of Income<br><br>(unaudited, in thousands)																																				Union Bankshares, Inc.
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																												DIRECTORS									OFFICERS
																												Neil J. Van Dyke -Chair									Neil J. Van Dyke - Chair
ASSETS					JUNE 30, 2019								JUNE 30, 2020						JUNE 30, 2019					JUNE 30, 2020								JUNE 30, 2019												Timothy W. Sargent-Vice Chair						David S. Silverman - President & CEO
																																	Joel S. Bourassa						Jeffrey G. Coslett- Vice President
															(3 months ended)											(6 months ended)
																												Steven J. Bourgeois						Karyn J. Hale - Chief Financial Officer
Cash and Due from Banks	$	6,049			$	4,285			Interest Income	$	9,139				$	8,904			$	18,102		$	17,496
																																														Dawn D. Bugbee			John H. Steel - Secretary
																																														John M. Goodrich			Kristy Adams Alfieri - Assistant Secretary
Federal Funds Sold & Overnight Deposits	30,579				21,404				Interest Expense	1,361					1,397				2,818			2,624				Nancy C. Putnam
									Net Interest Income	7,778					7,507				15,284			14,872				David S. Silverman
Interest Bearing Deposits in Banks	9,802				7,311																														John H. Steel
												Provision for Loan Losses		500				150			800				200
Investment Securities	86,221				80,568				Net Interest Income After<br>Provision for Loan Losses	7,278					7,357				14,484			14,672				Union Bank									REGIONAL<br>ADVISORY BOARD<br>MEMBERS
Loans Held for Sale	43,550				8,983
												Trust Income		178				183			351				351						DIRECTORS
Loans, net	691,837				606,474				Noninterest Income	2,810					2,288				5,155			4,352				Neil J. Van Dyke -Chair									Michael R. Barrett - St. Johnsbury
																																			Timothy W. Sargent -Vice Chair									Steven J. Bourgeois - St. Albans
Reserve for Loan Losses	(6,888)				(5,676)				Noninterest Expenses:																	Joel S. Bourassa						Andrew A. Dean - Northern NH
									Salaries & Wages	2,829					2,903				5,950			5,701				Steven J. Bourgeois						Stanley T. Fillion - Northern NH
Premises and Equipment, net	20,379				21,259																					Dawn D. Bugbee						Rosemary H. Gingue - St. Johnsbury
									Employee Benefits	1,231					1,062				2,213			2,061				John M. Goodrich						John M. Goodrich - St. Johnsbury
Accrued Interest & other Assets	35,554				29,280																														Nancy C. Putnam						Christopher M. Knapp - Northern NH
																										Gregory D. Sargent						Coleen K. Kohaut - St. Albans
Total Assets	$	917,083			$	773,888			Occupancy Expense, net	477					421				991			859				David S. Silverman						Justin P. Lavely - St. Johnsbury
																										John H. Steel						Daniel J. Luneau - St. Albans
									Equipment Expense	756					574				1,496			1,139										Mary K. Parent - St. Johnsbury
																																									Samuel H. Ruggiano - St. Albans
																																Christine A. Sheley - Northern NH
																	Other Expenses		1,818			1,840				3,633						3,567												David S. Silverman - All
																											Union Bank Offices<br><br>(ATMs at all Branch Locations)
LIABILITIES & SHAREHOLDERS' EQUITY					JUNE 30, 2019								Total		7,111				6,800			14,283				13,327
									Income Before Taxes	3,155					3,028				5,707			6,048				VERMONT
Noninterest Bearing Deposits	$	188,741			$	128,010
																																	Berlin			1028 US Route 302									802.476.0061
Interest Bearing Deposits	484,496				365,645				Income Tax Expense	487					498				843			897				Fairfax			Jct. Routes 104 & 128									802.849.2600
																															Hardwick			103 VT Route 15 West									802.472.8100
Time Deposits	146,255				159,145				Net income	$	2,668				$	2,530			$	4,864		$	5,151			Jeffersonville			5062 VT Route 15									802.644.6600
																										Jericho			368 VT Route 15									802.899.7500
Borrowed Funds	9,497				42,381				Earnings per share	$	0.60				$	0.56			$	1.09		$	1.15			Johnson			198 Lower Main Street									802.635.6600
																										Lyndonville			183 Depot Street									802.626.3100
Accrued Interest & Other Liabilities	12,327				9,971				Book Value Per Share										$	16.93		$	15.38			Morrisville			20 Lower Main Street									802.888.6600
																													65 Northgate Plaza									802.888.6860
Common Stock	9,901				9,890																					St. Albans			15 Mapleville Depot									802.524.9000
																										St. Johnsbury			364 Railroad Street									802.748.3131
Additional Paid-in Capital	1,306				1,020																								325 Portland Street									802.748.3121
Retained Earnings																										Stowe			47 Park Street									802.253.6600
		66,020				61,292																					Williston			Branch
Accumulated OtherComprehensive Income (Loss)	2,717				722																								31 Market St									802.878.7900
																																																			Loan Center
																																			31 Market St									802.865.1000
Treasury Stock at Cost	(4,177)				(4,188)
Total Liabilities & Shareholders' Equity			$	917,083			$	773,888																						NEW HAMPSHIRE
Standby letters of credit were 2,346,009 and 2,078,000 at June 30, 2020 and 2019, respectively.																																							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

All values are in US Dollars.