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 6, 2025

(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 6, 2025, Union Bankshares, Inc (the "Company") distributed its Fourth 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 twelve months ended December 31, 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. Fourth Quarter 2024 Report to Shareholders distributed February 6, 2025 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 6, 2025	/s/ David S. Silverman
	David S. Silverman
	President/Chief Executive Officer
February 6, 2025	/s/ Karyn J. Hale
	Karyn J. Hale
	Chief Financial Officer

EXHIBIT INDEX

Exhibit 99.1	Union Bankshares, Inc. Fourth Quarter 2024 Report to Shareholders distributed February 6, 2025.

Document

Exhibit 99.1

February 6, 2025
We are pleased to report results for the three months and year ended December 31, 2024. Consolidated net income for the three months ended December 31, 2024, was 3.0 million, compared to 3.0 million, for the same period in 2023, and 8.8 million, for the year ended December 31, 2024, compared to 11.3 million, for the same period in 2023. The decrease in earnings for the comparison periods was impacted by the previously announced balance sheet repositioning with the sale of 38.8 million of lower-yielding available-for-sale debt securities for a pre-tax realized loss of 1.3 million, which was recorded in the third quarter of 2024. The proceeds of the repositioning were invested in higher yielding debt securities and loans. Also impacting 2024 profitability was credit loss expense of 930 thousand for the year ended December 31, 2024, compared to a benefit of 499 thousand for the year ended December 31, 2023, a difference of 1.429 million year over year. The increase in credit loss expense was to support loan growth during 2024 and was not due to a deterioration in credit quality.Total assets were 1.53 billion as of December 31, 2024, compared to 1.47 billion as of December 31, 2023, an increase of 59.5 million, or 4.0%. Loan demand was robust in 2024 resulting in an increase of 130.0 million, or 12.6%, to reach 1.16 billion as of December 31, 2024, compared to 1.03 billion as of December 31, 2023. Asset quality remains strong with minimal past due loans and net recoveries of 22 thousand for the year ended December 31, 2024.Total deposits were 1.17 billion as of December 31, 2024, compared to deposits of 1.31 billion as of December 31, 2023, that include 153.0 million of purchased brokered deposits. There were no purchased deposits as of December 31, 2024. Federal Home Loan Bank advances of 259.7 million were outstanding as of December 31, 2024, compared to				$55.7 million outstanding as of December 31, 2023. There were also $10.0 million in advances from the Federal Reserve’s Bank Term Funding Program outstanding as of December 31, 2023.<br><br>The Company had total equity capital of $66.5 million and a book value per share of $14.65 as of December 31, 2024, compared to $65.8 million and a book value of $14.56 per share as of December 31, 2023. Total equity capital is reduced by accumulated other comprehensive loss as it relates to the fair market value adjustment for investment securities. Accumulated other comprehensive loss as of December 31, 2024, was $34.0 million compared to $32.0 million as of December 31, 2023.<br><br>The local and national economies display continued resilience. We had expected the Federal Reserve to drop short term interest rates more than the 100 basis point reduction that occurred in 2024. Likewise, it appears that interest rates will be “higher for longer” with the yield curve moving from inverted to positively steepening and short term rates being lower than long term rates. This is good for our net interest margin, though funding costs remain higher than hoped for. This will be a continued challenge in 2025. We continue to seek to originate sound, appropriately priced loans to improve our net interest margin as well as exploring other strategies to increase profitability.<br><br>The Board of Directors declared a cash dividend of $0.36 per share for the quarter payable February 6, 2025, to shareholders of record as of January 25, 2025.
	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, 3 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, 2024					Dec 31, 2023							Dec 31, 2024					Dec 31, 2023				Dec 31, 2024					Dec 31, 2023									Timothy W. Sargent - Vice Chair						David S. Silverman - President & CEO
					Joel S. Bourassa					Karyn J. Hale - Chief Financial Officer
																	(3 months ended)									(12 months ended)
																									Timothy W. Sargent - Secretary
Cash and Due from Banks			$	5,168									Interest Income		$	18,590					15,416					$	67,954					$	57,110
																													Mary K. Parent									Kristy Adams Alfieri - Assistant Secretary
											Interest Expense			8,148					6,314				29,590					19,267						Nancy C. Putnam
Federal Funds Sold & Overnight Deposits			10,670					73,237																					Gregory D. Sargent
												10,442					9,102				38,364					37,843						David S. Silverman
Interest Bearing Deposits in Banks			9,462					14,690																						Janet P. Spitler
												347					(338)				930					(499)
Investment Securities			252,258					265,883					Net Interest Income After<br>Credit Loss Expense (Benefit)		10,095					9,440				37,434						38,342						Union Bank						REGIONAL<br>ADVISORY BOARD<br>MEMBERS
Loans Held for Sale			5,204					3,070
																																DIRECTORS
Loans, net			1,157,898					1,030,022					Wealth Management Income		274					248				1,067						943						Neil J. Van Dyke - Chair						Michael R. Barrett - St. Johnsbury
																							Timothy W. Sargent - Vice Chair								Steven J. Bourgeois - St. Albans
Allowance for Credit Losses			(7,680)					(6,566)					Net losses on sales of investment securities		—					—				(1,293)						—						Joel S. Bourassa						Andrew A. Dean - Northern NH
																												Dawn D. Bugbee								Stanley T. Fillion - Northern NH
Premises and Equipment, net			20,225					20,771					Noninterest Income		2,512					2,421				9,949						8,961						Mary K. Parent						Rosemary H. Gingue - St. Johnsbury
																												Nancy C. Putnam								John M. Goodrich - Northern NH
Accrued Interest & Other Assets			75,153					63,343					Noninterest Expenses:																							Gregory D. Sargent						Christopher M. Knapp - Northern NH
																																		David S. Silverman						Coleen K. Kohaut - St. Albans
Total Assets			$	1,528,358									Salaries & Wages		4,336					3,352				15,678						14,247						Janet P. Spitler						Justin P. Lavely - St. Johnsbury
																																		Daniel J. Luneau - St. Albans
													Employee Benefits		1,074					1,300				5,716						5,365												Samuel H. Ruggiano - St. Albans
																																				Christine A. Sheley - Northern NH
LIABILITIES & SHAREHOLDERS' EQUITY	Dec 31, 2024					Dec 31, 2023							Occupancy Expense, net		576					516				2,194						2,035												David S. Silverman - All
														Union Bank Offices<br><br>(ATMs at all Branch Locations)
													Equipment Expense			1,026									3,992						3,722
Noninterest Bearing Deposits			$	226,048
											Other Expenses			2,602					2,454				10,447					10,000						VERMONT
Interest Bearing Deposits			714,862					765,689
												9,614					8,630				38,027					35,369						Berlin			1028 US Route 302						802.476.0061
Time Deposits			227,984					288,922					Income Before Taxes		3,267					3,479				9,130						12,877						Fairfax			Jct. Routes 104 & 128					802.849.2600
																																				Hardwick			103 VT Route 15 West					802.472.8100
Borrowed Funds			259,696					65,696					Income Tax (Benefit) Expense		266					430				369						1,620						Jeffersonville			5062 VT Route 15					802.644.6600
																																				Jericho			368 VT Route 15					802.899.7500
Subordinated Notes			16,273					16,239					Net income		$	3,001								$	8,761					$	11,257					Lyndonville			183 Depot Street					802.626.3100
																																				Morrisville			20 Lower Main Street					802.888.6600
Accrued Interest & Other Liabilities			17,015					15,534					Earnings Per Share		$	0.67								$	1.94					$	2.50								65 Northgate Plaza					802.888.6860
																																				Shelburne			5068 Shelburne Road					802.985.0227
Common Stock			10,024					9,991					Book Value Per Share											$	14.65					$	14.56					St. Albans			15 Mapleville Depot					802.524.9000
																																				St. Johnsbury			Operations and Loan Center
Additional Paid-in Capital			3,031					2,621																															364 Railroad Street					802.748.3131
Retained Earnings																																							Branch
		91,722					89,472																														325 Portland Street						802.748.3121
Accumulated OtherComprehensive Loss			(33,997)					(31,955)																												Stowe			47 Park Street					802.253.6600
																																Williston			Branch
															31 Market St					802.878.7900
Treasury Stock at Cost			(4,300)					(4,322)											Loan Center
																			31 Market St				802.865.1000
Total Liabilities & Shareholders' Equity			$	1,528,358					1,468,879
Standby letters of credit were 1,640,000 and 1,557,000 at December 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.