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Section 1: 8-K (BODY OF FORM 8-K)


Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 6, 2020

(Exact name of registrant as specified in its charter)
(State or other jurisdiction(Commission(IRS Employer
of incorporation)File Number)Identification Number)
(Address of principal executive offices)(Zip Code)
20 Lower Main St., P.O. Box 66705661-0667

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 August 6, 2020, Union Bankshares, Inc (the "Company") distributed its Second 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 six months ended June 30, 2020 and declaration of a regular quarterly dividend, along with a copy of the Company's press release issued on July 15, 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 July 15, 2020.

Item 9.01: Financial Statements and Exhibits
d) Exhibits:
99.1Union Bankshares, Inc. Second Quarter 2020 Report to Shareholders distributed August 6, 2020 referred to in Item 2.02 of the Report as furnished, not filed; herewith.


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 6, 2020/s/ Karyn J. Hale
Karyn J. Hale
Chief Financial Officer

Union Bankshares, Inc. Second Quarter 2020 Report to Shareholders distributed August 6, 2020.

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Section 2: EX-99.1 (EXHIBIT 99.1)


Exhibit 99.1
August 6, 2020
We are enclosing our press release dated July 15, 2020 which details our operating results for the second quarter of 2020 and year to date through June 30th. This allows us to provide more information to you about bank operations and local economic conditions, and potential impact on your company’s financial performance, all in the context of the pandemic health crisis our country faces.

Thus far, the areas we serve, Northern Vermont and Northern New Hampshire, have fared well during the pandemic from a human health standpoint. Bank operations have settled into a “new normal” as our branch lobbies have re-opened with plexiglass shields at teller windows, limits on the number of customers entering at a given time, and staff wearing masks. We have approximately 60 employees now working from home that we are not yet ready to bring back into bank facilities, though some are more than ready to return. We are developing a plan for bringing staff back into our offices while following appropriate social distancing protocols. We, like many businesses, are anxiously watching how schools and daycare facilities are going to operate this fall as this will greatly impact our workforce.

As the pandemic has unfolded, the economic impact on our communities has been uneven, with both positive and negative consequences for the people and businesses in our region. The variables have been government directives, the consumer’s reaction to the pandemic, and the creativity and resilience of business managers. Government directives for businesses to close and requiring people to stay home have obviously had a deleterious effect on all businesses not deemed “essential.” Many of these businesses such as residential construction, farm and garden, outdoor recreation retailers, and take out food service have roared back to life and in some cases are exceeding pre-pandemic sales as government restrictions have been lifted. Lodging and “dine in” restaurants and their employees continue to have their sales volumes off, in many cases significantly. As we
discussed in our first quarter letter, we have participated fully in the SBA Payroll Protection Program and been able to grant nearly $70 million of these 100% government guaranteed loans to our business customer base. Between the PPP loan program and other loan and grant programs we believe that the majority of our business customers are financially stable, at least temporarily. The federal and state assistance is serving to mask the potential long-term impacts of the pandemic caused recession on many of our business borrowers. We are continually assessing our asset quality by staying close to our customers with regular communications so we may assist them assess their individual circumstances. and understand which borrowers may ultimately default.

The very low interest rate environment is creating challenges and opportunities for the bank. While our net interest margin is being squeezed, mortgage lending is much busier than expected. This is benefiting us as we generate gains on residential loans sold on the secondary market. Long term, our region and economy are benefiting from families relocating to our rural, less densely populated region, reversing a persistent outmigration trend.

Thus far in 2020 we have substantially increased our Loan Loss Reserve compared to prior years. Management continues to monitor the variables that impact the loan loss reserve which may warrant further increases in reserves for the balance of 2020. We considered the adequacy of our loan loss reserve, our overall capitalization, and our strong earnings year to date when the Board of Directors approved a 32 cent per share dividend, to holders of record as of July 27, 2020, payable on August 6, 2020.

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:
Broadridge Corporate Issuer Solutions, Inc.
P.O. Box 1342
Brentwood, NY 11717
866.321.8022 or
Ticker Symbol: UNB
Corporate Name: Union Bankshares, Inc.
Corporate Address:
20 Lower Main Street
P.O. Box 667
Morrisville, VT 05661-0667
Investor Relations:
Neil J. Van Dyke
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 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.

Consolidated Balance Sheets
(unaudited, in thousands)
Consolidated Statements of Income
(unaudited, in thousands)
Union Bankshares, Inc.
Neil J. Van Dyke -Chair
Neil J. Van Dyke - Chair
ASSETSJUNE 30, 2020JUNE 30, 2019JUNE 30, 2020JUNE 30, 2019JUNE 30, 2020JUNE 30, 2019
Timothy W. Sargent-Vice Chair
David S. Silverman - President & CEO
Joel S. BourassaJeffrey G. Coslett- Vice President
(3 months ended)(6 months ended)
Steven J. BourgeoisKaryn J. Hale - Chief Financial Officer
Cash and Due from Banks$6,049  $4,285  Interest Income$9,139  $8,904  $18,102  $17,496  
Dawn D. BugbeeJohn H. Steel - Secretary
John M. GoodrichKristy Adams Alfieri - Assistant Secretary
Federal Funds Sold & Overnight Deposits30,579  21,404  Interest Expense1,361  1,397  2,818  2,624  Nancy C. Putnam
Net Interest Income7,778  7,507  15,284  14,872  David S. Silverman
Interest Bearing Deposits in Banks9,802  7,311  John H. Steel
Provision for Loan Losses500  150  800  200  
Investment Securities86,221  80,568  Net Interest Income After
Provision for Loan Losses
7,278  7,357  14,484  14,672  Union BankREGIONAL
Loans Held for Sale43,550  8,983  
Trust Income178  183  351  351  
Loans, net691,837  606,474  Noninterest Income2,810  2,288  5,155  4,352  
Neil J. Van Dyke -Chair
Michael R. Barrett - St. Johnsbury
Timothy W. Sargent -Vice Chair
Steven J. Bourgeois - St. Albans
Reserve for Loan Losses(6,888) (5,676) Noninterest Expenses:Joel S. Bourassa
Andrew A. Dean - Northern NH
Salaries & Wages2,829  2,903  5,950  5,701  Steven J. Bourgeois
Stanley T. Fillion - Northern NH
Premises and Equipment, net20,379  21,259  Dawn D. Bugbee
Rosemary H. Gingue - St. Johnsbury
Employee Benefits1,231  1,062  2,213  2,061  John M. Goodrich
John M. Goodrich - St. Johnsbury
Accrued Interest & other Assets35,554  29,280  Nancy C. Putnam
Christopher M. Knapp - Northern NH
Gregory D. Sargent
Coleen K. Kohaut - St. Albans
Total Assets$917,083  $773,888  Occupancy Expense, net477  421  991  859  David S. Silverman
Justin P. Lavely - St. Johnsbury
John H. Steel
Daniel J. Luneau - St. Albans
Equipment Expense756  574  1,496  1,139  
Mary K. Parent - St. Johnsbury
Samuel H. Ruggiano - St. Albans
Christine A. Sheley - Northern NH
Other Expenses1,818  1,840  3,633  3,567  
David S. Silverman - All
Union Bank Offices
(ATMs at all Branch Locations)
LIABILITIES & SHAREHOLDERS' EQUITYJUNE 30, 2020JUNE 30, 2019Total7,111  6,800  14,283  13,327  
Income Before Taxes3,155  3,028  5,707  6,048  VERMONT
Noninterest Bearing Deposits$188,741  $128,010  
Berlin1028 US Route 302802.476.0061
Interest Bearing Deposits484,496  365,645  Income Tax Expense487  498  843  897  FairfaxJct. Routes 104 & 128802.849.2600
Hardwick103 VT Route 15 West802.472.8100
Time Deposits146,255  159,145  Net income$2,668  $2,530  $4,864  $5,151  Jeffersonville5062 VT Route 15802.644.6600
Jericho368 VT Route 15802.899.7500
Borrowed Funds9,497  42,381  Earnings per share$0.60  $0.56  $1.09  $1.15  Johnson198 Lower Main Street802.635.6600
Lyndonville183 Depot Street802.626.3100
Accrued Interest & Other Liabilities12,327  9,971  Book Value Per Share$16.93  $15.38  Morrisville20 Lower Main Street802.888.6600
65 Northgate Plaza802.888.6860
Common Stock9,901  9,890  St. Albans15 Mapleville Depot802.524.9000
St. Johnsbury364 Railroad Street802.748.3131
Additional Paid-in Capital1,306  1,020  325 Portland Street802.748.3121
Retained EarningsStowe47 Park Street802.253.6600
66,020  61,292  WillistonBranch
Accumulated Other
Comprehensive Income (Loss)
2,717  722  31 Market St802.878.7900
Loan Center
31 Market St802.865.1000
Treasury Stock at Cost(4,177) (4,188) 
Total Liabilities & Shareholders' Equity$917,083  $773,888  NEW HAMPSHIRE
Standby letters of credit were $2,346,009 and $2,078,000 at June 30, 2020 and 2019, respectively.Groveton3 State Street603.636.1611
Littleton263 Dells Road603.444.7136
76 Main Street603.444.5321
Lincoln135 Main Street603.745.4000
North ConwayCommercial Loan Center
2541 White Mountain Hwy603.662.9408

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