Form 8-K - Current report

FALSE000070686300007068632024-08-012024-08-01

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): August 1, 2024

(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: [phone]

(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. ☐

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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 August 1, 2024, Union Bankshares, Inc (the "Company") distributed its Second 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 six months ended June 30, 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. Second Quarter 2024 Report to Shareholders distributed August 1, 2024 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.
August 1, 2024			/s/ David S. Silverman
			David S. Silverman
			President/Chief Executive Officer
August 1, 2024			/s/ Karyn J. Hale
			Karyn J. Hale
			Chief Financial Officer

EXHIBIT INDEX

Exhibit 99.1			Union Bankshares, Inc. Second Quarter 2024 Report to Shareholders distributed August 1, 2024.

Exhibit 99.1

August 1, 2024

Union Bankshares, Inc. reported its second quarter earnings in a press release on July 17, 2024. Consolidated net income for the three months ended June 30, 2024 was $2.0 million, or $0.45 per share, compared to $2.7 million, or $0.60 per share, for the same period in 2023, and $4.4 million, or $0.98 per share, for the six months ended June 30, 2024, compared to $5.7 million, or $1.26 per share for the same period in 2023. More detailed financial information will be available in our upcoming quarterly filings. Earnings are generally in line with expectations from the beginning of the year. We had hoped for some relief on the funding side of the balance sheet; however, the Federal Reserve has held rates higher for longer as well as continued to shrink its balance sheet and reduce liquidity in the economy which has caused funding costs to be persistently higher than expected, negatively impacting earnings. Though “The Fed” may begin a rate reduction cycle later this year, we do not expect this will materially improve our cost of funds until 2025. The rapid steep increase in short-term interest rates initiated as an inflation fighting tool by the Federal Reserve has been unkind to the community banking industry. There are some bright spots to report. Loan asset quality continues to be very strong with delinquency metrics being unusually low. We are paying close attention to consumer behavior due to reports that credit card debt is at all-time highs and auto portfolios are seeing increased delinquencies nationally. We are not seeing weakness in our 1-4 family residential portfolio and have negligible amounts of consumer loans and no consumer credit card exposure. We have thoroughly reviewed our exposure to commercial real estate and the types of exposure we have are in sound industries with almost no office exposure. We do have

significant investments in multifamily residential loans, but the low vacancy rates in our markets make this exposure low risk. Finally, we have very solid pipelines of both residential and commercial real estate loans, which is somewhat atypical among our peers. Our challenge is less finding attractive loan opportunities than funding this demand. Parts of Vermont and New Hampshire sustained heaving rains and flooding similar to the flooding that occurred a year ago to the day last summer. While this year’s event was less devastating than last year’s, it still inflicted major damage to homes, businesses, roads, and bridges. Families, businesses, and municipalities are still assessing the damage while working to cure the most immediate issues such as safety and access to homes and roads. At this point we are working with impacted customers and do not expect a material impact to our financial institution. The local economy continues to be strong. Travel and tourism remain solid, though cooled a bit from the peak post pandemic, “return to travel” binge, coupled with a return to foreign travel. The unemployment rate in our markets remains at record lows, and available for sale residential home inventory continues to be a major challenge for home buyers. We are hopeful that rate relief in the future will enable new home buyers to find homes while increasing the volume of home financing opportunities. The Board of Directors declared a cash dividend of $0.36 per share for the quarter payable August 1, 2024, to shareholders of record as of July 27, 2024.

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 11717 866.321.8022 or 720.378.5956 E-mail: [e-mail]

NASDAQ STOCK MARKET

Ticker Symbol: UNB Corporate Name: Union Bankshares, Inc. Corporate Address: 20 Lower Main Street P.O. Box 667 Morrisville, VT 05661-0667 Investor Relations: UBLocal.com

Neil J. Van Dyke Chair

David S. Silverman 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 19 banking offices, 2 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.

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			Consolidated Balance Sheets (unaudited, in thousands)																		Consolidated Statements of Income (unaudited, in thousands)																											Union Bankshares, Inc.
																																																DIRECTORS						OFFICERS
																																																Neil J. Van Dyke - Chair						Neil J. Van Dyke - Chair
			ASSETS			June 30, 2024						June 30, 2023									June 30, 2024						June 30, 2023						June 30, 2024						June 30, 2023									Timothy W. Sargent - Vice Chair						David S. Silverman - President & CEO
																																																Joel S. Bourassa						Karyn J. Hale - Chief Financial Officer
																								(3 months ended)												(6 months ended)
																																																Dawn D. Bugbee						Timothy W. Sargent - Secretary
			Cash and Due from Banks						$	4,490					$	4,351					Interest Income			$	16,552					$	13,803					$	32,173					$	26,847
																																																Mary K. Parent						Kristy Adams Alfieri - Assistant Secretary
																					Interest Expense			7,068						4,185						13,681						7,254						Nancy C. Putnam
			Federal Funds Sold & Overnight Deposits						26,017						31,452																																	Gregory D. Sargent
																					Net Interest Income			9,484						9,618						18,492						19,593						David S. Silverman
			Interest Bearing Deposits in Banks						13,943						15,183																																	Janet P. Spitler
																					Credit Loss Expense (Benefit)			388						(96)						158						(22)
			Investment Securities						254,177						268,915						Net Interest Income After Credit Loss Expense (Benefit)			9,096						9,714						18,334						19,615						Union Bank						REGIONAL ADVISORY BOARD MEMBERS
			Loans Held for Sale						6,224						3,145
																					Wealth Management Income			273						240						528						451						DIRECTORS
			Loans, net						1,007,920						937,092						Noninterest Income			2,492						2,243						4,804						4,317						Neil J. Van Dyke - Chair						Michael R. Barrett - St. Johnsbury
																																																Timothy W. Sargent - Vice Chair						Steven J. Bourgeois - St. Albans
			Allowance for Credit Losses						(6,893)						(6,780)						Noninterest Expenses:																											Joel S. Bourassa						Andrew A. Dean - Northern NH
																					Salaries & Wages			3,774						3,673						7,327						7,175						Dawn D. Bugbee						Stanley T. Fillion - Northern NH
			Premises and Equipment, net						20,646						20,054																																	Mary K. Parent						Rosemary H. Gingue - St. Johnsbury
																					Employee Benefits			1,631						1,471						3,120						2,848						Nancy C. Putnam						John M. Goodrich - Northern NH
			Accrued Interest & Other Assets						71,922						61,332																																	Gregory D. Sargent						Christopher M. Knapp - Northern NH
																																																David S. Silverman						Coleen K. Kohaut - St. Albans
			Total Assets						$	1,398,446					$	1,334,744					Occupancy Expense, net			544						482						1,113						1,060						Janet P. Spitler						Justin P. Lavely - St. Johnsbury
																																																						Daniel J. Luneau - St. Albans
																					Equipment Expense			1,017						882						1,960						1,779												Samuel H. Ruggiano - St. Albans
																																																						Christine A. Sheley - Northern NH
																																																						David S. Silverman - All
			LIABILITIES & SHAREHOLDERS' EQUITY			June 30, 2024						June 30, 2023									Other Expenses			2,815						2,555						5,484						4,951
																																																Union Bank Offices (ATMs at all Branch Locations)
																					Total			9,781						9,063						19,004						17,813
			Noninterest Bearing Deposits						$	222,928					$	238,636
																					Income Before Taxes			2,080						3,134						4,662						6,570						VERMONT
			Interest Bearing Deposits						558,658						633,019
																																																Berlin			1028 US Route 302						802.476.0061
			Time Deposits						271,722						252,031						Income Tax Expense			61						435						226						894						Fairfax			Jct. Routes 104 & 128						802.849.2600
																																																Hardwick			103 VT Route 15 West						802.472.8100
			Borrowed Funds						247,096						120,549						Net income			$	2,019					$	2,699					$	4,436					$	5,676					Jeffersonville			5062 VT Route 15						802.644.6600
																																																Jericho			368 VT Route 15						802.899.7500
			Subordinated Notes						16,256						16,222						Earnings Per Share			$	0.45					$	0.60					$	0.98					$	1.26					Johnson			198 Lower Main Street						802.635.6600
																																																Lyndonville			183 Depot Street						802.626.3100
			Accrued Interest & Other Liabilities						17,740						15,233						Book Value Per Share															$	14.16					$	13.10					Morrisville			20 Lower Main Street						802.888.6600
																																																			65 Northgate Plaza						802.888.6860
			Common Stock						9,999						9,969																																	Shelburne			5068 Shelburne Road						802.985.0227
																																																St. Albans			15 Mapleville Depot						802.524.9000
			Additional Paid-in Capital						2,928						2,465																																	St. Johnsbury			Operations and Loan Center
			Retained Earnings																																																364 Railroad Street						802.748.3131
									90,654						87,136																																				Branch
			Accumulated Other Comprehensive Loss						(35,223)						(36,251)																																				325 Portland Street						802.748.3121
																																																Stowe			47 Park Street						802.253.6600
																																																Williston			Branch
			Treasury Stock at Cost						(4,312)						(4,265)																																				31 Market St						802.878.7900
																																																			Loan Center
			Total Liabilities & Shareholders' Equity						$	1,398,446					$	1,334,744																																			31 Market St						802.865.1000
			Standby letters of credit were $1,629,000 and $1,592,000 at June 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
																																																Lincoln			135 Main Street						603.745.4000
																																																North Conway			120 North-South Road						603.356.4010

Cover	Aug. 01, 2024
Document Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Aug. 01, 2024
Entity Registrant Name	UNION BANKSHARES, INC.
Entity Central Index Key	0000706863
Entity Incorporation, State or Country Code	VT
Entity File Number	001-15985
Entity Tax Identification Number	03-0283552
Entity Address, Address Line One	20 Lower Main St., P.O. Box 667
Entity Address, City or Town	Morrisville
Entity Address, State or Province	VT
Entity Address, Postal Zip Code	05661-0667
City Area Code	802
Local Phone Number	888-6600
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false

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