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): November 6, 2020

(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 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 November 6, 2020, Union Bankshares, Inc (the "Company") distributed its Third 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 nine months ended September 30, 2020 and declaration of a regular quarterly dividend, along with a copy of the Company's press release issued on October 21, 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 October 21, 2020.

Item 9.01: Financial Statements and Exhibits

d) Exhibits:

99.1	Union Bankshares, Inc. Third Quarter 2020 Report to Shareholders distributed November 6, 2020 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.
November 6, 2020	/s/ Karyn J. Hale
	Karyn J. Hale
	Chief Financial Officer

EXHIBIT INDEX

Exhibit 99.1	Union Bankshares, Inc. Third Quarter 2020 Report to Shareholders distributed November 6, 2020.

Document

Exhibit 99.1

November 6, 2020
As we have done in past quarters, we include our Third Quarter Earnings Press Release to provide you with an update of our financial position while allowing us to spend more space discussing topics we believe are important to our owners. By most measures, 2020 has been a difficult year for our nation and the world at large. Many lives have been lost to the lethal Coronavirus. Many businesses were temporarily or permanently put out of business through no fault of their own. Countless families are experiencing financial hardships due to loss of employment. Despite this, many segments of our economy have survived, and in some cases thrived, allowing us to be cautiously optimistic for the future.The economic environment caused by the pandemic has impacted people and business at varying degrees. While the low interest rate environment has continued to pressure our net interest spread, it has also precipitated a boom in residential refinances and increased the already strong real estate purchase market fueled by increased migration into our communities. This has nearly doubled the volume of our residential real estate loan business line compared to 2019, allowing us to more than offset lower loan yields with gains on real estate loans sold. As a result, we have been able to achieve strong earnings despite the ongoing economic uncertainty created by the pandemic.Though the global economic future is uncertain, we are gaining some clarity about the impact of the pandemic on your company. We have come to understand that borrowers seeking payment deferments on their loans has not been a predictor of defaults and credit losses. Rather, because of the uncertainty caused by the pandemic and economic shutdown, prudent borrowers asked for deferments to preserve cash until they were better able to understand the impact of the pandemic on their individual situations. Of the approximately 172 million of loan relationships for which we issued some sort of payment accommodations, 131 million have now				returned to making contractual payments. We are now focusing our attention on the far smaller number of borrowers who have asked for additional payment deferments. These borrowers are primarily in the restaurant and lodging business segments. At this point we have not identified specific cases where we foresee defaults and losses, but expect this will become clearer during the first and second quarters of 2021.<br><br>We draw your attention to the discussion about the increase in the loan loss provision in the accompanying earnings release. As mentioned above, we have not identified specific losses yet, but have increased our loan loss provision based on the qualitative factors we assign to our loan portfolio components which reflect the current economic uncertainty we face. Our goal is to position our balance sheet to enter 2021 with continued financial strength.<br><br>Our region has been a beneficiary of the trend of people pursuing active outdoor recreation in all forms. Regional ski resorts have been determining how best to re-open and are generally reporting solid advance season ticket sales. We are hopeful we will have moderately strong winter tourism season.<br><br>Our financial results are better than expected given the pandemic. We could not accomplish this without a strong team of dedicated professionals. We are honored to work among them. <br><br>During our Board of Directors meeting held on October 21, 2020 your Directors voted to declare a 32 cents per share dividend to record holders as of October 30, 2020, payable on November 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. 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 20 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	SEPT 30, 2020					SEPT 30, 2019						SEPT 30, 2020				SEPT 30, 2019				SEPT 30, 2020					SEPT 30, 2019									Timothy W. Sargent-Vice Chair					David S. Silverman - President & CEO
					Joel S. Bourassa					Jeffrey G. Coslett- Vice President
															(3 months ended)									(9 months ended)
																							Karyn J. Hale - Chief Financial Officer
Cash and Due from Banks			$	5,100								Interest Income	$	9,343					9,140					$	27,445					$	26,636
																											Dawn D. Bugbee									John H. Steel - Secretary
																											John M. Goodrich									Kristy Adams Alfieri - Assistant Secretary
Federal Funds Sold & Overnight Deposits			59,377					24,774				Interest Expense	1,158					1,493				3,976						4,117						Nancy C. Putnam
												Net Interest Income	8,185					7,647				23,469						22,519						David S. Silverman
Interest Bearing Deposits in Banks			8,964					7,062																		John H. Steel
											800				150				1,600					350
Investment Securities			88,994					85,886				Net Interest Income After<br>Provision for Loan Losses	7,385					7,497				21,869						22,169						Union Bank					REGIONAL<br>ADVISORY BOARD<br>MEMBERS
Loans Held for Sale			32,803					13,561
											173				168				524					519						DIRECTORS
Loans, net			765,514					658,904				Noninterest Income	5,335					2,555				10,490						6,907						Neil J. Van Dyke -Chair					Michael R. Barrett - St. Johnsbury
																										Timothy W. Sargent -Vice Chair								Steven J. Bourgeois - St. Albans
Reserve for Loan Losses			(7,691)					(5,808)				Noninterest Expenses:																						Joel S. Bourassa					Andrew A. Dean - Northern NH
												Salaries & Wages	3,718					3,072				9,668						8,773						Steven J. Bourgeois					Stanley T. Fillion - Northern NH
Premises and Equipment, net			20,452					22,507																										Dawn D. Bugbee					Rosemary H. Gingue - St. Johnsbury
												Employee Benefits	1,204					1,047				3,417						3,108						John M. Goodrich					John M. Goodrich - St. Johnsbury
Accrued Interest & other Assets			35,622					32,876																		Nancy C. Putnam								Christopher M. Knapp - Northern NH
																																		Gregory D. Sargent					Coleen K. Kohaut - St. Albans
Total Assets			$	1,009,135								Occupancy Expense, net	420					428				1,411						1,287						David S. Silverman					Justin P. Lavely - St. Johnsbury
																																		John H. Steel					Daniel J. Luneau - St. Albans
												Equipment Expense	770					625				2,266						1,764											Mary K. Parent - St. Johnsbury
																																		Samuel H. Ruggiano - St. Albans
																																							Christine A. Sheley - Northern NH
												Other Expenses	1,883					1,833				5,516						5,400											David S. Silverman - All
																					Union Bank Offices<br><br>(ATMs at all Branch Locations)
LIABILITIES & SHAREHOLDERS' EQUITY	SEPT 30, 2020					SEPT 30, 2019						Total	7,995					7,005					22,278						20,332
												Income Before Taxes	4,898					3,215				10,605						9,263						VERMONT
Noninterest Bearing Deposits			$	204,555
																																Berlin			1028 US Route 302					802.476.0061
Interest Bearing Deposits			562,970					419,646				Income Tax Expense	751					477				1,594						1,374						Fairfax			Jct. Routes 104 & 128				802.849.2600
																														Hardwick			103 VT Route 15 West					802.472.8100
Time Deposits			142,554					159,844				Net income	$	4,147								$	9,011					$	7,889					Jeffersonville			5062 VT Route 15				802.644.6600
																																		Jericho			368 VT Route 15				802.899.7500
Borrowed Funds			9,497					47,164				Earnings per share	$	0.92								$	2.01					$	1.77					Johnson			198 Lower Main Street				802.635.6600
																																		Lyndonville			183 Depot Street				802.626.3100
Accrued Interest & Other Liabilities			11,135					10,382				Book Value Per Share										$	17.52					$	15.80					Morrisville			20 Lower Main Street				802.888.6600
																																					65 Northgate Plaza				802.888.6860
Common Stock			9,901					9,892																										St. Albans			15 Mapleville Depot				802.524.9000
																																		St. Johnsbury			364 Railroad Street				802.748.3131
Additional Paid-in Capital			1,368					1,099																													325 Portland Street				802.748.3121
Retained Earnings																																		Stowe			47 Park Street				802.253.6600
		68,735					62,645																									Williston			Branch
Accumulated OtherComprehensive Income			2,593					1,163																													31 Market St				802.878.7900
																																	Loan Center
													31 Market St					802.865.1000
Treasury Stock at Cost			(4,173)					(4,186)
Total Liabilities & Shareholders' Equity			$	1,009,135					844,888					NEW HAMPSHIRE
Standby letters of credit were 3,093,000 and 2,308,000 at September 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
		135 Main Street					603.745.4000
		Commercial Loan Center
		2541 White Mountain Hwy					603.662.9408

All values are in US Dollars.