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): May 4, 2023

(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 May 4, 2023, Union Bankshares, Inc (the "Company") distributed its First Quarter 2023 unaudited Report to Shareholders (the "Quarterly Report") presenting information concerning the Company's results of operations and financial condition for the three months ended March 31, 2023 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. First Quarter 2023 Report to Shareholders distributed May 4, 2023 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.
May 4, 2023	/s/ Karyn J. Hale
	Karyn J. Hale
	Chief Financial Officer

EXHIBIT INDEX

Exhibit 99.1	Union Bankshares, Inc. First Quarter 2023 Report to Shareholders distributed May 4, 2023.

Document

Exhibit 99.1

May 4, 2023
Dear Fellow Shareholders: We are pleased to report the financial results of the first quarter of 2023. Consolidated net income for the first quarter was 2.98 million, or 0.66 per share compared to 2.48 million, or 0.55 per share, for the same period in 2022, an increase of 495 thousand, or 20.0%. Total assets were 1.36 billion as of March 31, 2023, compared to 1.23 billion as of March 31, 2022, an increase of 128.5 million, or 10.4%. Asset growth was primarily driven by loans. Total loans outstanding as of March 31, 2023, were 976.6 million, which included 2.8 million in loans held for sale, compared to 831.0 million as of March 31, 2022, with 2.3 million in loans held for sale, and increase of 17.5%.Total deposits were 1.23 billion as of March 31, 2023, and include 108.0 million of purchased brokered deposits compared to 1.31 billion as of March 31, 2022 with no purchased deposits. The utilization of purchased brokered deposits provides an additional source of funds to bridge funding needs as we seek to grow our core deposits. Also, advances from the Federal Home Loan Bank totaling 45.1 million were outstanding as of March 31, 2023, compared to no outstanding advances as of March 31, 2022.Since our last writing, Silicon Valley Bank and Signature Bank failed, with the FDIC guarantying both insured and uninsured deposits. These banks were victims of classic “bank runs” where depositors withdrew large sums anticipating insolvency, exhausting each bank’s short-term liquidity rendering them unable to meet depositor demands. These were large regional niche banks specializing in catering to start up businesses, venture capital clients, and the cryptocurrency industry.These failures spotlighted two separate concerns about the banking industry. The first is the vulnerability of banks with large exposures to uninsured deposits. The two failed banks were carrying 90% or more of deposits not insured				by the FDIC. In contrast, only 28.5% of the deposits held at Union Bank at quarter end were not insured by the FDIC.<br><br>The second issue illuminated by the bank failures was the status of most bank’s bond portfolios. During the Covid Pandemic, fiscal and monetary policy initiatives expanded the money supply in the US economy. These funds found their way onto bank balance sheets. These surges in deposits outpaced the industry’s ability to identify and fund quality loans. As a result, banks invested excess funds in bonds when interest rates were quite low. With the recent sharp increase in interest rates, the market value of bank’s bond portfolios has declined, resulting in unrealized losses in their bond portfolios. Union is no exception and also has unrealized losses in our bond portfolio, most of which return monthly cash flow over time. We have ample sources of liquidity to fund our current and future cash needs including customer deposits, brokered deposits, and other borrowings. We will use these sources strategically to manage our funding costs, which will be challenging this year.<br><br>In response to the recent bank failures the Federal Reserve has implemented programs to ensure that US depository institutions have adequate access to liquidity to meet their depositors needs. We continue to evaluate these programs and have not needed to access them. We have managed our company through good times and bad, and are confident in our ability serve our communities into the future.<br><br>The Board of Directors declared a cash dividend of $0.36 per share for the quarter payable May 4, 2023, to shareholders of record as of April 29, 2023.
	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, three 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)
				DIRECTORS
				Neil J. Van Dyke - Chair
ASSETS	March 31, 2023					March 31, 2022							March 31, 2023					March 31, 2022				March 31, 2023						Timothy W. Sargent - Vice Chair				David S. Silverman - President & CEO
					Joel S. Bourassa					Karyn J. Hale - Chief Financial Officer
																	(3 months ended)
																										Timothy W. Sargent - Secretary
Cash and Due from Banks			$	4,340									Interest Income		$	13,044					9,726
																											Nancy C. Putnam		Kristy Adams Alfieri - Assistant Secretary
																											Gregory D. Sargent
Federal Funds Sold & Overnight Deposits			17,479					45,755					Interest Expense		3,069					763												David S. Silverman
													Net Interest Income		9,975					8,963												Janet P. Spitler
Interest Bearing Deposits in Banks			16,428					14,192
												90					—
Investment Securities			276,767					273,424					Net Interest Income After<br>Credit Loss Expense		9,885					8,963												Union Bank				REGIONAL<br>ADVISORY BOARD<br>MEMBERS
Loans Held for Sale			2,849					2,349
												211					209												DIRECTORS
Loans, net			973,767					828,614					Noninterest Income		1,950					1,846												Neil J. Van Dyke - Chair				Michael R. Barrett - St. Johnsbury
																											Timothy W. Sargent - Vice Chair		Steven J. Bourgeois - St. Albans
Allowance for Credit Losses			(6,934)					(8,336)					Noninterest Expenses:																			Joel S. Bourassa				Andrew A. Dean - Northern NH
													Salaries & Wages		3,502					3,410												Dawn D. Bugbee				Stanley T. Fillion - Northern NH
Premises and Equipment, net			20,256					21,320																								Mary K. Parent				Rosemary H. Gingue - St. Johnsbury
													Employee Benefits		1,377					1,305												Nancy C. Putnam				John M. Goodrich - St. Johnsbury
Accrued Interest & other Assets			57,103					51,178																			Gregory D. Sargent		Christopher M. Knapp - Northern NH
																																David S. Silverman				Coleen K. Kohaut - St. Albans
Total Assets			$	1,362,055									Occupancy Expense, net		578					527												Janet P. Spitler				Justin P. Lavely - St. Johnsbury
																																				Daniel J. Luneau - St. Albans
													Equipment Expense		897					916																Samuel H. Ruggiano - St. Albans
																													Christine A. Sheley - Northern NH
																																				David S. Silverman - All
LIABILITIES & SHAREHOLDERS' EQUITY	March 31, 2023					March 31, 2022							Other Expenses		2,256					1,956
																									Union Bank Offices<br><br>(ATMs at all Branch Locations)
													Total		8,610					8,114
Noninterest Bearing Deposits			$	262,488
											Income Before Taxes			3,436					2,904											VERMONT
Interest Bearing Deposits			709,401					726,864
																													Berlin		1028 US Route 302				802.476.0061
Time Deposits			254,089					104,303					Income Tax Expense		459					422												Fairfax		Jct. Routes 104 & 128			802.849.2600
																																Hardwick		103 VT Route 15 West			802.472.8100
Borrowed Funds			45,106					—					Net income		$	2,977																Jeffersonville		5062 VT Route 15			802.644.6600
																																Jericho		368 VT Route 15			802.899.7500
Subordinated Notes			16,213					16,179					Earnings per share		$	0.66																Johnson		198 Lower Main Street			802.635.6600
																																Lyndonville		183 Depot Street			802.626.3100
Accrued Interest & Other Liabilities			14,166					13,703					Book Value Per Share		$	13.44																Morrisville		20 Lower Main Street			802.888.6600
																																		65 Northgate Plaza			802.888.6860
Common Stock			9,965					9,937																								Shelburne		5068 Shelburne Road			802.985.0250
																																St. Albans		15 Mapleville Depot			802.524.9000
Additional Paid-in Capital			2,353					1,878																								St. Johnsbury		Operations and Loan Center
Retained Earnings																																		364 Railroad Street			802.748.3131
		86,060					79,259																										Branch
Accumulated OtherComprehensive (loss) Income			(33,514)					(17,426)																										325 Portland Street			802.748.3121
																								Stowe			47 Park Street		802.253.6600
													Williston		Branch
Treasury Stock at Cost			(4,272)					(4,231)											31 Market St				802.878.7900
																			Loan Center
Total Liabilities & Shareholders' Equity			$	1,362,055					1,233,543										31 Market St				802.865.1000
Standby letters of credit were 1,542,000 and 2,143,000 at March 31, 2023 and 2022, 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
		Commercial Loan Center
		2541 White Mountain Hwy					603.662.9408

All values are in US Dollars.