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 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 February 5, 2021, Union Bankshares, Inc (the "Company") distributed its Fourth 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 twelve months ended December 31, 2020 and declaration of a regular quarterly dividend, along with a copy of the Company's press release issued on January 20, 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 January 20, 2021.

Item 9.01: Financial Statements and Exhibits

d) Exhibits:

99.1	Union Bankshares, Inc. Fourth Quarter 2020 Report to Shareholders distributed February 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.
February 5, 2021	/s/ Karyn J. Hale
	Karyn J. Hale
	Chief Financial Officer

EXHIBIT INDEX

Exhibit 99.1	Union Bankshares, Inc. Fourth Quarter 2020 Report to Shareholders distributed February 5, 2021.

Document

Exhibit 99.1

February 5, 2021
We are pleased to greet you in this new year. As we have in past quarters, the press release is enclosed announcing year end results to save room to provide more detail on bank matters, including our current state of operations and impacts on our customers, communities, and our staff. We are naturally pleased to inform you that we generated record earnings for 2020 of 12.8 million, compared to 10.6 million in earnings in 2019, our previous record. During 2020, our balance sheet grew 25%, cresting the 1 Billion mark for the first time. Candidly, we did not expect this level of earnings and growth when we began the year, and would not have predicted it once the pandemic was in full bloom. A fortunate confluence of events plus a great deal of hard work by our dedicated staff allowed us to take advantage of the unique circumstances.The Federal Reserve’s reaction to the pandemic was swift and massive. They simultaneously dropped short term interest rates and increased their purchases of financial assets, flooding the markets with liquidity that eventually found its way to bank balance sheets, including Union’s. The resulting sharp drop in residential loan interest rates sparked residential purchase financings and residential re-financings, increasing our loan volume dramatically, which in turn generated a significant increase in fee income from premiums on the sale of loans to the secondary market. In addition, the fee income generated from the origination of US Small Business Association (SBA) Payroll Protection Program (PPP) loans, unplanned for in our budget process, also helped our bottom line.We are writing this letter during a light snow fall with our surrounding mountains barely visible behind clouds, simulating the lack of clarity we have to future economic conditions. We have been working with our consumer and business customers using loan modifications, forbearances and various Federal				and State programs to keep our customers in their homes and in business. We are now processing the second draw SBA PPP program, targeted at the businesses and nonprofits hardest hit by the pandemic. Though administering this program has been taxing on our team, it has been a needed lifeline for our business community who have suffered severe declines in revenue through no fault of their own.<br><br>The re-opening of our economy and our general wellbeing is largely dependent on the distribution and acceptance of the COVID vaccination. Thus far, the distribution has not gone well, delaying the economic recovery further and causing greater health problems. Our balance sheet and loan loss reserve are well positioned to absorb potential losses that may or may not materialize. Operationally, we remain in a guarded stance, keeping our branch lobbies closed with access-by-appointment and continuing to have approximately 80 of our staff work from home with others dispersed at bank facilities throughout our footprint. We continue to offer our full range of services, though in some cases using different distribution channels. It is unlikely that we will be able to resume normal operations until late Spring at the earliest. Similarly, it is unlikely that we will be able to host our Annual Meeting in May in person. This is truly unfortunate, as we really enjoy visiting with our shareholders at the Annual Meeting.<br><br>We are pleased to inform you that the Board of Directors declared an increase in the cash dividend to $0.33 per share for the quarter, payable February 5, 2021 to shareholders of record as of February 1, 2021. <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. 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 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.

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, 2020					DEC 31, 2019						DEC 31, 2020				DEC 31, 2019				DEC 31, 2020					DEC 31, 2019									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			$	5,413								Interest Income	$	9,305					9,234					$	36,750					$	35,870
																											Dawn D. Bugbee									John H. Steel - Secretary
																											John M. Goodrich									Kristy Adams Alfieri - Assistant Secretary
Federal Funds Sold & Overnight Deposits			117,358					45,729				Interest Expense	1,171					1,483				5,147						5,600						Nancy C. Putnam
												Net Interest Income	8,134					7,751				31,603						30,270						David S. Silverman
Interest Bearing Deposits in Banks			12,699					6,565																		John H. Steel
											600				425				2,200					775
Investment Securities			106,810					88,083				Net Interest Income After<br>Provision for Loan Losses	7,534					7,326				29,403						29,495						Union Bank					REGIONAL<br>ADVISORY BOARD<br>MEMBERS
Loans Held for Sale			32,188					7,442
											183				173				707					692						DIRECTORS
Loans, net			771,023					671,287				Noninterest Income	4,806					2,856				15,296						9,763						Neil J. Van Dyke -Chair					Michael R. Barrett - St. Johnsbury
																										Timothy W. Sargent -Vice Chair								Steven J. Bourgeois - St. Albans
Reserve for Loan Losses			(8,271)					(6,122)				Noninterest Expenses:																						Joel S. Bourassa					Andrew A. Dean - Northern NH
												Salaries & Wages	3,552					3,048				13,220						11,821						Steven J. Bourgeois					Stanley T. Fillion - Northern NH
Premises and Equipment, net			20,040					20,923																										Dawn D. Bugbee					Rosemary H. Gingue - St. Johnsbury
												Employee Benefits	1,163					1,102				4,580						4,210						John M. Goodrich					John M. Goodrich - St. Johnsbury
Accrued Interest & other Assets			36,767					33,600																		Nancy C. Putnam								Christopher M. Knapp - Northern NH
																																		Gregory D. Sargent					Coleen K. Kohaut - St. Albans
Total Assets			$	1,094,027								Occupancy Expense, net	394					519				1,805						1,806						David S. Silverman					Justin P. Lavely - St. Johnsbury
																																		John H. Steel					Daniel J. Luneau - St. Albans
												Equipment Expense	788					711				3,054						2,475											Mary K. Parent - St. Johnsbury
																																		Samuel H. Ruggiano - St. Albans
																																							Christine A. Sheley - Northern NH
												Other Expenses	2,007					1,760				7,523						7,160											David S. Silverman - All
																					Union Bank Offices<br><br>(ATMs at all Branch Locations)
LIABILITIES & SHAREHOLDERS' EQUITY	DEC 31, 2020					DEC 31, 2019						Total	7,904					7,140					30,182						27,472
												Income Before Taxes	4,619					3,215				15,224						12,478						VERMONT
Noninterest Bearing Deposits			$	215,245
																																Berlin			1028 US Route 302					802.476.0061
Interest Bearing Deposits			637,369					458,940				Income Tax Expense	825					456				2,419						1,830						Fairfax			Jct. Routes 104 & 128				802.849.2600
																														Hardwick			103 VT Route 15 West					802.472.8100
Time Deposits			141,688					148,653				Net income	$	3,794								$	12,805					$	10,648					Jeffersonville			5062 VT Route 15				802.644.6600
																																		Jericho			368 VT Route 15				802.899.7500
Borrowed Funds			7,164					47,164				Earnings per share	$	0.85								$	2.86					$	2.38					Johnson			198 Lower Main Street				802.635.6600
																																		Lyndonville			183 Depot Street				802.626.3100
Accrued Interest & Other Liabilities			11,694					9,878				Book Value Per Share										$	18.05					$	16.06					Morrisville			20 Lower Main Street				802.888.6600
																																					65 Northgate Plaza				802.888.6860
Common Stock			9,910					9,897																										St. Albans			15 Mapleville Depot				802.524.9000
																																		St. Johnsbury			364 Railroad Street				802.748.3131
Additional Paid-in Capital			1,393					1,124																													325 Portland Street				802.748.3121
Retained Earnings																																		Stowe			47 Park Street				802.253.6600
		71,097					64,019																									Williston			Branch
Accumulated OtherComprehensive Income			2,636					986																													31 Market St				802.878.7900
																																	Loan Center
													31 Market St					802.865.1000
Treasury Stock at Cost			(4,169)					(4,183)
Total Liabilities & Shareholders' Equity			$	1,094,027					872,912					NEW HAMPSHIRE
Standby letters of credit were 3,092,000 and 2,308,000 at December 31, 2020 and 2019, 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.