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 5, 2022

(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 5, 2022, Union Bankshares, Inc (the "Company") distributed its First Quarter 2022 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, 2022 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 2022 Report to Shareholders distributed May 5, 2022 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 6, 2022	/s/ David S. Silverman
	David S. Silverman
	President/Chief Executive Officer
May 6, 2022	/s/ Karyn J. Hale
	Karyn J. Hale
	Chief Financial Officer

EXHIBIT INDEX

Exhibit 99.1	Union Bankshares, Inc. First Quarter 2022 Report to Shareholders distributed May 5, 2022.

Document

Exhibit 99.1

May 5, 2022
We are pleased to report our financial results for the first quarter of 2022. Consolidated net income for the first quarter was 2.5 million, or 0.55 per share compared to 2.9 million, or 0.64 cents per share, for the same period in 2021, a decrease of 13.7%. There were two primary reasons for the decrease in net income. As the SBA PPP program continues to run its course, outstanding balances of PPP loans have decreased due to forgiveness which has resulted in a reduction of fee income related to PPP loans of 381 thousand year over year. Second, gains on sales of real estate loans were sharply lower as long-term interest rates increased sharply in response to high inflation. Loans already in our pipeline with interest rates committed saw premiums reduced, causing management to elect to hold these loans in the portfolio rather than sustain losses on sales. This should be a temporary phenomenon as rates charged going forward are reflective of the current interest rate environment with interest rates stabilizing at new, higher levels.Asset quality remains strong as no provision for loan losses was recorded for the three months ended March 31, 2022, compared to 150 thousand for the comparable quarter in 2021. All our commercial borrowers have exited pandemic related payment modifications and all but four of our residential customers have done the same.Total assets were 1.2 billion as of March 31, 2022, compared to 1.1 billion as of March 31, 2021, an increase of 129.2 million, or 11.7%. Asset growth continued to be fueled by increases in customer deposits that were reinvested into investment securities and into our communities through loans to individuals, businesses, and municipalities.Investment securities reached 287.6 million on March 31, 2022, compared to 157.8 million on March 31, 2021. The 129.8 million increase was caused by using low yielding excess liquidity to purchase higher yielding investments, primarily US Government Agency mortgage-backed securities. Since the settlement of these purchases, interest rates increased rapidly resulting in unrealized losses of 22.1 million in the securities portfolio as of March 31, 2022. The offset to recording the unrealized losses was an increase in deferred taxes included in other assets and				accumulated comprehensive losses of $17.5 million included in total equity. The Company had total equity capital of $69.4 million and a book value per share of $15.45 as of March 31, 2022, compared to $79.8 million and $17.81 per share as of March 31, 2021. The reduction in book value per share is the result of the unrealized loss on the investment portfolio and does not impact regulatory capital ratios.<br><br>Total loans outstanding as of March 31, 2022, were $831.0 million compared to $841.7 million as of March 31, 2021. The decrease in total loans was due to a reduction in pandemic related SBA PPP loans of $70.4 million and a reduction in $10.8 million in municipal loans. The pandemic related SBA PPP loans were designed to be short term in nature and have been forgiven in accordance with the PPP program. These decreases were partially offset by increases of $40.3 million in commercial real estate loans and $29.9 million in residential loans. Excluding SBA PPP loans forgiven, loan growth quarter over quarter was 7.8%.<br><br>We live in interesting times. Inflation is higher than it has been in decades, causing pain at the fuel pump and grocery stores. Russia has invaded Ukraine, causing senseless human carnage with more to come, sadly. The Federal Reserve meets on May 3rd and 4th, surely bringing us higher short term interest rates with hopes of a soft economic landing. Supply chains remain challenged, as do labor and housing markets. Yet here in Northern New England we anxiously await spring and its green leaves and flowers with another excellent maple season wrapped up. Despite the current uncertainty, we are confident facing the future and what it brings. <br><br>We are pleased to announce that the Board of Directors declared a cash dividend of $0.35 per share for the quarter payable May 5, 2022, to shareholders of record as of April 30, 2022.<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, 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, 2022					March 31, 2021							March 31, 2022					March 31, 2021				March 31, 2022						Timothy W. Sargent-Vice Chair				David S. Silverman - President & CEO
					Joel S. Bourassa					Jeffrey G. Coslett- Vice President
																	(3 months ended)
																										Karyn J. Hale - Chief Financial Officer
Cash and Due from Banks			$	5,047									Interest Income		$	9,726					9,500
																											John M. Goodrich		John H. Steel - Secretary
																											Nancy C. Putnam		Kristy Adams Alfieri - Assistant Secretary
Federal Funds Sold & Overnight Deposits			45,755					51,822					Interest Expense		763					1,101												Gregory D. Sargent
													Net Interest Income		8,963					8,399												David S. Silverman
Interest Bearing Deposits in Banks			14,192					14,691																			John H. Steel
												—					150
Investment Securities			273,423					143,063					Net Interest Income After<br>Provision for Loan Losses		8,963					8,249												Union Bank				REGIONAL<br>ADVISORY BOARD<br>MEMBERS
Loans Held for Sale			2,349					40,212
												209					185												DIRECTORS
Loans, net			828,614					801,489					Noninterest Income		1,846					2,436												Neil J. Van Dyke -Chair				Michael R. Barrett - St. Johnsbury
																											Timothy W. Sargent -Vice Chair		Steven J. Bourgeois - St. Albans
Reserve for Loan Losses			(8,336)					(8,429)					Noninterest Expenses:																			Joel S. Bourassa				Andrew A. Dean - Northern NH
													Salaries & Wages		3,410					3,083												Dawn D. Bugbee				Stanley T. Fillion - Northern NH
Premises and Equipment, net			21,320					19,882																								John M. Goodrich				Rosemary H. Gingue - St. Johnsbury
													Employee Benefits		1,305					1,169												Mary K. Parent				John M. Goodrich - St. Johnsbury
Accrued Interest & other Assets			51,179					36,904																			Nancy C. Putnam		Christopher M. Knapp - Northern NH
																																Gregory D. Sargent				Coleen K. Kohaut - St. Albans
Total Assets			$	1,233,543									Occupancy Expense, net		527					477												David S. Silverman				Justin P. Lavely - St. Johnsbury
																																Janet P. Spitler				Daniel J. Luneau - St. Albans
													Equipment Expense		916					798												John H. Steel				Mary K. Parent - St. Johnsbury
																													Samuel H. Ruggiano - St. Albans
																																				Christine A. Sheley - Northern NH
LIABILITIES & SHAREHOLDERS' EQUITY	March 31, 2022					March 31, 2021							Other Expenses		1,956					1,926																David S. Silverman - All
																									Union Bank Offices<br><br>(ATMs at all Branch Locations)
													Total		8,114					7,453
Noninterest Bearing Deposits			$	303,077
											Income Before Taxes			2,904					3,417											VERMONT
Interest Bearing Deposits			726,864					648,960
																													Berlin		1028 US Route 302				802.476.0061
Time Deposits			104,303					126,939					Income Tax Expense		422					541												Fairfax		Jct. Routes 104 & 128			802.849.2600
																																Hardwick		103 VT Route 15 West			802.472.8100
Borrowed Funds			—					7,164					Net income		$	2,482																Jeffersonville		5062 VT Route 15			802.644.6600
																																Jericho		368 VT Route 15			802.899.7500
Subordinated Debentures and Notes			16,179					—					Earnings per share		$	0.55																Johnson		198 Lower Main Street			802.635.6600
																																Lyndonville		183 Depot Street			802.626.3100
Accrued Interest & Other Liabilities			13,703					9,440					Book Value Per Share		$	15.45																Morrisville		20 Lower Main Street			802.888.6600
																																		65 Northgate Plaza			802.888.6860
Common Stock			9,937					9,911																								Shelburne		5068 Shelburne Road			802.985.0250
																																St. Albans		15 Mapleville Depot			802.524.9000
Additional Paid-in Capital			1,878					1,504																								St. Johnsbury		Operations and Loan Center
Retained Earnings																																		364 Railroad Street			802.748.3131
		79,259					72,494																										Branch
Accumulated OtherComprehensive (loss) Income			(17,426)					81																										325 Portland Street			802.748.3121
																								Stowe			47 Park Street		802.253.6600
													Williston		Branch
Treasury Stock at Cost			(4,231)					(4,167)											31 Market St				802.878.7900
																			Loan Center
Total Liabilities & Shareholders' Equity			$	1,233,543					1,104,318										31 Market St				802.865.1000
Standby letters of credit were 2,143,000 and 2,609,000 at March 31, 2022 and 2021, 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.