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 1, 2024

(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 August 1, 2024, Union Bankshares, Inc (the "Company") distributed its Second Quarter 2024 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, 2024 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 2024 Report to Shareholders distributed August 1, 2024 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 1, 2024	/s/ David S. Silverman
	David S. Silverman
	President/Chief Executive Officer
August 1, 2024	/s/ Karyn J. Hale
	Karyn J. Hale
	Chief Financial Officer

EXHIBIT INDEX

Exhibit 99.1	Union Bankshares, Inc. Second Quarter 2024 Report to Shareholders distributed August 1, 2024.

Document

Exhibit 99.1

August 1, 2024
Union Bankshares, Inc. reported its second quarter earnings in a press release on July 17, 2024. Consolidated net income for the three months ended June 30, 2024 was 2.0 million, or 0.45 per share, compared to 2.7 million, or 0.60 per share, for the same period in 2023, and 4.4 million, or 0.98 per share, for the six months ended June 30, 2024, compared to 5.7 million, or 1.26 per share for the same period in 2023. More detailed financial information will be available in our upcoming quarterly filings.Earnings are generally in line with expectations from the beginning of the year. We had hoped for some relief on the funding side of the balance sheet; however, the Federal Reserve has held rates higher for longer as well as continued to shrink its balance sheet and reduce liquidity in the economy which has caused funding costs to be persistently higher than expected, negatively impacting earnings. Though “The Fed” may begin a rate reduction cycle later this year, we do not expect this will materially improve our cost of funds until 2025. The rapid steep increase in short-term interest rates initiated as an inflation fighting tool by the Federal Reserve has been unkind to the community banking industry.There are some bright spots to report. Loan asset quality continues to be very strong with delinquency metrics being unusually low. We are paying close attention to consumer behavior due to reports that credit card debt is at all-time highs and auto portfolios are seeing increased delinquencies nationally. We are not seeing weakness in our 1-4 family residential portfolio and have negligible amounts of consumer loans and no consumer credit card exposure. We have thoroughly reviewed our exposure to commercial real estate and the types of exposure we have are in sound industries with almost no office exposure. We do have				significant investments in multifamily residential loans, but the low vacancy rates in our markets make this exposure low risk. Finally, we have very solid pipelines of both residential and commercial real estate loans, which is somewhat atypical among our peers. Our challenge is less finding attractive loan opportunities than funding this demand.<br><br>Parts of Vermont and New Hampshire sustained heaving rains and flooding similar to the flooding that occurred a year ago to the day last summer. While this year’s event was less devastating than last year’s, it still inflicted major damage to homes, businesses, roads, and bridges. Families, businesses, and municipalities are still assessing the damage while working to cure the most immediate issues such as safety and access to homes and roads. At this point we are working with impacted customers and do not expect a material impact to our financial institution.<br><br>The local economy continues to be strong. Travel and tourism remain solid, though cooled a bit from the peak post pandemic, “return to travel” binge, coupled with a return to foreign travel. The unemployment rate in our markets remains at record lows, and available for sale residential home inventory continues to be a major challenge for home buyers. We are hopeful that rate relief in the future will enable new home buyers to find homes while increasing the volume of home financing opportunities.<br><br>The Board of Directors declared a cash dividend of $0.36 per share for the quarter payable August 1, 2024, to shareholders of record as of July 27, 2024.
	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 19 banking offices, 2 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, 2024					June 30, 2023							June 30, 2024					June 30, 2023				June 30, 2024					June 30, 2023									Timothy W. Sargent - Vice Chair					David S. Silverman - President & CEO
					Joel S. Bourassa					Karyn J. Hale - Chief Financial Officer
																	(3 months ended)									(6 months ended)
																									Timothy W. Sargent - Secretary
Cash and Due from Banks			$	4,490									Interest Income		$	16,552					13,803					$	32,173					$	26,847
																													Mary K. Parent									Kristy Adams Alfieri - Assistant Secretary
											Interest Expense			7,068					4,185				13,681					7,254						Nancy C. Putnam
Federal Funds Sold & Overnight Deposits			26,017					31,452																					Gregory D. Sargent
												9,484					9,618				18,492					19,593						David S. Silverman
Interest Bearing Deposits in Banks			13,943					15,183																						Janet P. Spitler
												388					(96)				158					(22)
Investment Securities			254,177					268,915					Net Interest Income After<br>Credit Loss Expense (Benefit)		9,096					9,714				18,334						19,615						Union Bank					REGIONAL<br>ADVISORY BOARD<br>MEMBERS
Loans Held for Sale			6,224					3,145
												273					240				528					451						DIRECTORS
Loans, net			1,007,920					937,092					Noninterest Income		2,492					2,243				4,804						4,317						Neil J. Van Dyke - Chair					Michael R. Barrett - St. Johnsbury
																												Timothy W. Sargent - Vice Chair								Steven J. Bourgeois - St. Albans
Allowance for Credit Losses			(6,893)					(6,780)					Noninterest Expenses:																							Joel S. Bourassa					Andrew A. Dean - Northern NH
													Salaries & Wages		3,774					3,673				7,327						7,175						Dawn D. Bugbee					Stanley T. Fillion - Northern NH
Premises and Equipment, net			20,646					20,054																	Mary K. Parent									Rosemary H. Gingue - St. Johnsbury
													Employee Benefits		1,631					1,471				3,120						2,848						Nancy C. Putnam					John M. Goodrich - Northern NH
Accrued Interest & Other Assets			71,922					61,332																				Gregory D. Sargent								Christopher M. Knapp - Northern NH
																																				David S. Silverman					Coleen K. Kohaut - St. Albans
Total Assets			$	1,398,446									Occupancy Expense, net		544					482				1,113						1,060						Janet P. Spitler					Justin P. Lavely - St. Johnsbury
																																		Daniel J. Luneau - St. Albans
													Equipment Expense		1,017					882				1,960						1,779											Samuel H. Ruggiano - St. Albans
																																				Christine A. Sheley - Northern NH
																																									David S. Silverman - All
LIABILITIES & SHAREHOLDERS' EQUITY	June 30, 2024					June 30, 2023							Other Expenses		2,815					2,555				5,484						4,951
																								Union Bank Offices<br><br>(ATMs at all Branch Locations)
													Total		9,781					9,063					19,004						17,813
Noninterest Bearing Deposits			$	222,928
											Income Before Taxes			2,080					3,134				4,662					6,570						VERMONT
Interest Bearing Deposits			558,658					633,019
																																Berlin			1028 US Route 302					802.476.0061
Time Deposits			271,722					252,031					Income Tax Expense		61					435				226						894						Fairfax			Jct. Routes 104 & 128			802.849.2600
																																				Hardwick			103 VT Route 15 West			802.472.8100
Borrowed Funds			247,096					120,549					Net income		$	2,019								$	4,436					$	5,676					Jeffersonville			5062 VT Route 15			802.644.6600
																																				Jericho			368 VT Route 15			802.899.7500
Subordinated Notes			16,256					16,222					Earnings Per Share		$	0.45								$	0.98					$	1.26					Johnson			198 Lower Main Street			802.635.6600
																																				Lyndonville			183 Depot Street			802.626.3100
Accrued Interest & Other Liabilities			17,740					15,233					Book Value Per Share											$	14.16					$	13.10					Morrisville			20 Lower Main Street			802.888.6600
																																							65 Northgate Plaza			802.888.6860
Common Stock			9,999					9,969																												Shelburne			5068 Shelburne Road			802.985.0227
																																				St. Albans			15 Mapleville Depot			802.524.9000
Additional Paid-in Capital			2,928					2,465																												St. Johnsbury			Operations and Loan Center
Retained Earnings																																							364 Railroad Street			802.748.3131
		90,654					87,136																														Branch
Accumulated OtherComprehensive Loss			(35,223)					(36,251)																															325 Portland Street			802.748.3121
																																Stowe			47 Park Street					802.253.6600
													Williston		Branch
Treasury Stock at Cost			(4,312)					(4,265)											31 Market St				802.878.7900
																			Loan Center
Total Liabilities & Shareholders' Equity			$	1,398,446					1,334,744										31 Market St				802.865.1000
Standby letters of credit were 1,629,000 and 1,592,000 at June 30, 2024 and 2023, 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
		120 North-South Road					603.356.4010

All values are in US Dollars.