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 2, 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 November 2, 2023, Union Bankshares, Inc (the "Company") distributed its Third Quarter 2023 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, 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. Third Quarter 2023 Report to Shareholders distributed November 2, 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.
November 2, 2023	/s/ David S. Silverman
	David S. Silverman
	President/Chief Executive Officer
November 2, 2023	/s/ Karyn J. Hale
	Karyn J. Hale
	Chief Financial Officer

EXHIBIT INDEX

Exhibit 99.1	Union Bankshares, Inc. Third Quarter 2023 Report to Shareholders distributed November 2, 2023.

Document

Exhibit 99.1

November 2, 2023
We are pleased to inform you of Union Bankshares, Inc’s financial results for the third quarter of 2023. Consolidated net income for the three months ended September 30, 2023, was 2.5 million, or 0.56 per share, compared to 3.8 million, or 0.84 cents per share, for the same period in 2022, and 8.2 million, or 1.82 per share, for the nine months ended September 30, 2023, compared to 9.2 million, or 2.04 per share for the same period in 2022.Total assets were 1.4 billion as of September 30, 2023, compared to 1.3 billion as of September 30, 2022, an increase of 95.3 million, or 7.3%. Asset growth was primarily driven by loans. Total loans outstanding as of September 30, 2023, were 1.0 billion, which included 6.5 million in loans held for sale, compared to 942.5 million as of September 30, 2022, with 3.1 million in loans held for sale.Total deposits were 1.22 billion as of September 30, 2023, and include 153.0 million of purchased brokered deposits compared to deposits of 1.20 billion as of September 30, 2022, with 32.0 million of purchased deposits. Also, advances from the Federal Home Loan Bank totaling 90.7 million were outstanding as of September 30, 2023, compared to 25.0 million outstanding as of September 30, 2022.Third quarter and year-to-date results were impacted by a challenging interest rate environment where sharp increases in short-term rates of over 5% have driven funding costs higher. The Company has had to respond to customer expectations of higher rates on deposit accounts while being burdened by increased costs of wholesale funding required due to the industry-wide outflow of deposits as customers have spent or re-allocated excess liquidity they had been holding in the bank. The Company continues to focus on gathering deposits, optimization of the net interest margin, and maintaining strong asset quality. The Company’s financial position remains strong, supported by a diverse deposit base, a strong				liquidity position, excellent asset quality, and regulatory capital in excess of all required levels.<br><br>As was previously reported, the bank’s Jeffersonville and Johnson branch offices suffered flood damage during extreme weather in July of this year. The Jeffersonville branch has been completely restored and is operational while we are choosing to take this opportunity to upgrade the Johnson facility to improve customer access, as well as operational and energy efficiency. While customers and our community have lingering impacts from the extensive flooding, the Company has not suffered material financial impacts. Some Vermont communities, notably our capital city Montpelier, will require years to fully recover.<br><br>The bank opened a commercial loan production office in North Conway, New Hampshire in 2019. Since that time, we have originated approximately $115 million in commercial loans in the White Mountain Valley region. This success has encouraged management to develop a full-service banking office to support the loan origination side of the business with deposit services. We will be opening a new full-service bank branch located on the North-South Road in North Conway towards the end of October 2023. Management and the Board are excited by the possibilities the new office brings. We view the North Conway branch and other recent branch expansions as investments in the future of your company<br><br>The Board of Directors declared a cash dividend of $0.36 per share for the quarter payable November 2, 2023, to shareholders of record as of October 28, 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)																							Union Bankshares, Inc.
				DIRECTORS
				Neil J. Van Dyke - Chair
ASSETS	Sept 30, 2023					Sept 30, 2022							Sept 30, 2023					Sept 30, 2022				Sept 30, 2023					Sept 30, 2022									Timothy W. Sargent - Vice Chair					David S. Silverman - President & CEO
					Joel S. Bourassa					Karyn J. Hale - Chief Financial Officer
																	(3 months ended)									(9 months ended)
																									Timothy W. Sargent - Secretary
Cash and Due from Banks			$	4,187									Interest Income		$	14,847					11,463					$	41,694					$	31,593
																													Mary K. Parent									Kristy Adams Alfieri - Assistant Secretary
											Interest Expense			5,699					1,023				12,953					2,519						Nancy C. Putnam
Federal Funds Sold & Overnight Deposits			17,143					28,080																					Gregory D. Sargent
												9,148					10,440				28,741					29,074						David S. Silverman
Interest Bearing Deposits in Banks			14,436					14,441																						Janet P. Spitler
												(139)					—				(161)					—
Investment Securities			250,337					241,255					Net Interest Income After<br>Credit Loss Benefit		9,287					10,440				28,902						29,074						Union Bank					REGIONAL<br>ADVISORY BOARD<br>MEMBERS
Loans Held for Sale			6,452					3,143
												244					203				695					629						DIRECTORS
Loans, net			1,023,283					939,352					Noninterest Income		2,223					2,337				6,540						6,420						Neil J. Van Dyke - Chair					Michael R. Barrett - St. Johnsbury
																												Timothy W. Sargent - Vice Chair								Steven J. Bourgeois - St. Albans
Allowance for Credit Losses			(6,895)					(8,340)					Noninterest Expenses:																							Joel S. Bourassa					Andrew A. Dean - Northern NH
													Salaries & Wages		3,720					3,575				10,895						10,505						Dawn D. Bugbee					Stanley T. Fillion - Northern NH
Premises and Equipment, net			20,365					20,718																												Mary K. Parent					Rosemary H. Gingue - St. Johnsbury
													Employee Benefits		1,217					1,154				4,065						3,754						Nancy C. Putnam					John M. Goodrich - Northern NH
Accrued Interest & Other Assets			66,320					57,580																				Gregory D. Sargent								Christopher M. Knapp - Northern NH
																																				David S. Silverman					Coleen K. Kohaut - St. Albans
Total Assets			$	1,395,628									Occupancy Expense, net		459					448				1,519						1,437						Janet P. Spitler					Justin P. Lavely - St. Johnsbury
																																									Daniel J. Luneau - St. Albans
													Equipment Expense		935					948				2,714						2,798											Samuel H. Ruggiano - St. Albans
																																				Christine A. Sheley - Northern NH
																																									David S. Silverman - All
LIABILITIES & SHAREHOLDERS' EQUITY	Sept 30, 2023					Sept 30, 2022							Other Expenses		2,595					2,314				7,546						6,643
																								Union Bank Offices<br><br>(ATMs at all Branch Locations)
													Total		8,926					8,439					26,739						25,137
Noninterest Bearing Deposits			$	229,101
											Income Before Taxes			2,828					4,541				9,398					10,986						VERMONT
Interest Bearing Deposits			707,872					722,208
																																Berlin			1028 US Route 302					802.476.0061
Time Deposits			285,315					136,691					Income Tax Expense		296					783				1,190						1,815						Fairfax			Jct. Routes 104 & 128			802.849.2600
																																				Hardwick			103 VT Route 15 West			802.472.8100
Borrowed Funds			90,696					25,000					Net income		$	2,532								$	8,208					$	9,171					Jeffersonville			5062 VT Route 15			802.644.6600
																																				Jericho			368 VT Route 15			802.899.7500
Subordinated Notes			16,230					16,196					Earnings Per Share		$	0.56								$	1.82					$	2.04					Johnson			198 Lower Main Street			802.635.6600
																																				Lyndonville			183 Depot Street			802.626.3100
Accrued Interest & Other Liabilities			17,168					12,954					Book Value Per Share											$	10.92					$	11.06					Morrisville			20 Lower Main Street			802.888.6600
																																							65 Northgate Plaza			802.888.6860
Common Stock			9,969					9,941																												Shelburne			5068 Shelburne Road			802.985.0250
																																				St. Albans			15 Mapleville Depot			802.524.9000
Additional Paid-in Capital			2,607					2,150																												St. Johnsbury			Operations and Loan Center
Retained Earnings																																							364 Railroad Street			802.748.3131
		88,045					82,801																														Branch
Accumulated OtherComprehensive Loss			(47,063)					(40,938)																															325 Portland Street			802.748.3121
																																Stowe			47 Park Street					802.253.6600
													Williston		Branch
Treasury Stock at Cost			(4,312)					(4,226)											31 Market St				802.878.7900
																			Loan Center
Total Liabilities & Shareholders' Equity			$	1,395,628					1,300,290										31 Market St				802.865.1000
Standby letters of credit were 1,532,000 and 1,729,000 at September 30, 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
		120 North-South Road					603.356.4010

All values are in US Dollars.