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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): November 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 November 6, 2020, Union Bankshares, Inc (the "Company") distributed its Third 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 nine months ended September 30, 2020 and declaration of a regular quarterly dividend, along with a copy of the Company's press release issued on October 21, 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 October 21, 2020.

Item 9.01: Financial Statements and Exhibits
d) Exhibits:
Union Bankshares, Inc. Third Quarter 2020 Report to Shareholders distributed November 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.
November 6, 2020/s/ Karyn J. Hale
Karyn J. Hale
Chief Financial Officer

Union Bankshares, Inc. Third Quarter 2020 Report to Shareholders distributed November 6, 2020.

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Section 2: EX-99 (EXHIBIT 99.1)


Exhibit 99.1
November 6, 2020
As we have done in past quarters, we include our Third Quarter Earnings Press Release to provide you with an update of our financial position while allowing us to spend more space discussing topics we believe are important to our owners.

By most measures, 2020 has been a difficult year for our nation and the world at large. Many lives have been lost to the lethal Coronavirus. Many businesses were temporarily or permanently put out of business through no fault of their own. Countless families are experiencing financial hardships due to loss of employment. Despite this, many segments of our economy have survived, and in some cases thrived, allowing us to be cautiously optimistic for the future.

The economic environment caused by the pandemic has impacted people and business at varying degrees. While the low interest rate environment has continued to pressure our net interest spread, it has also precipitated a boom in residential refinances and increased the already strong real estate purchase market fueled by increased migration into our communities. This has nearly doubled the volume of our residential real estate loan business line compared to 2019, allowing us to more than offset lower loan yields with gains on real estate loans sold. As a result, we have been able to achieve strong earnings despite the ongoing economic uncertainty created by the pandemic.

Though the global economic future is uncertain, we are gaining some clarity about the impact of the pandemic on your company. We have come to understand that borrowers seeking payment deferments on their loans has not been a predictor of defaults and credit losses. Rather, because of the uncertainty caused by the pandemic and economic shutdown, prudent borrowers asked for deferments to preserve cash until they were better able to understand the impact of the pandemic on their individual situations. Of the approximately $172 million of loan relationships for which we issued some sort of payment accommodations, $131 million have now
returned to making contractual payments. We are now focusing our attention on the far smaller number of borrowers who have asked for additional payment deferments. These borrowers are primarily in the restaurant and lodging business segments. At this point we have not identified specific cases where we foresee defaults and losses, but expect this will become clearer during the first and second quarters of 2021.

We draw your attention to the discussion about the increase in the loan loss provision in the accompanying earnings release. As mentioned above, we have not identified specific losses yet, but have increased our loan loss provision based on the qualitative factors we assign to our loan portfolio components which reflect the current economic uncertainty we face. Our goal is to position our balance sheet to enter 2021 with continued financial strength.

Our region has been a beneficiary of the trend of people pursuing active outdoor recreation in all forms. Regional ski resorts have been determining how best to re-open and are generally reporting solid advance season ticket sales. We are hopeful we will have moderately strong winter tourism season.

Our financial results are better than expected given the pandemic. We could not accomplish this without a strong team of dedicated professionals. We are honored to work among them.

During our Board of Directors meeting held on October 21, 2020 your Directors voted to declare a 32 cents per share dividend to record holders as of October 30, 2020, payable on November 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
ASSETSSEPT 30, 2020SEPT 30, 2019SEPT 30, 2020SEPT 30, 2019SEPT 30, 2020SEPT 30, 2019
Timothy W. Sargent-Vice Chair
David S. Silverman - President & CEO
Joel S. BourassaJeffrey G. Coslett- Vice President
(3 months ended)(9 months ended)
Steven J. BourgeoisKaryn J. Hale - Chief Financial Officer
Cash and Due from Banks$5,100 $5,126 Interest Income$9,343 $9,140 $27,445 $26,636 
Dawn D. BugbeeJohn H. Steel - Secretary
John M. GoodrichKristy Adams Alfieri - Assistant Secretary
Federal Funds Sold & Overnight Deposits59,377 24,774 Interest Expense1,158 1,493 3,976 4,117 Nancy C. Putnam
Net Interest Income8,185 7,647 23,469 22,519 David S. Silverman
Interest Bearing Deposits in Banks8,964 7,062 John H. Steel
Provision for Loan Losses800 150 1,600 350 
Investment Securities88,994 85,886 Net Interest Income After
Provision for Loan Losses
7,385 7,497 21,869 22,169 Union BankREGIONAL
Loans Held for Sale32,803 13,561 
Trust Income173 168 524 519 
Loans, net765,514 658,904 Noninterest Income5,335 2,555 10,490 6,907 
Neil J. Van Dyke -Chair
Michael R. Barrett - St. Johnsbury
Timothy W. Sargent -Vice Chair
Steven J. Bourgeois - St. Albans
Reserve for Loan Losses(7,691)(5,808)Noninterest Expenses:Joel S. Bourassa
Andrew A. Dean - Northern NH
Salaries & Wages3,718 3,072 9,668 8,773 Steven J. Bourgeois
Stanley T. Fillion - Northern NH
Premises and Equipment, net20,452 22,507 Dawn D. Bugbee
Rosemary H. Gingue - St. Johnsbury
Employee Benefits1,204 1,047 3,417 3,108 John M. Goodrich
John M. Goodrich - St. Johnsbury
Accrued Interest & other Assets35,622 32,876 Nancy C. Putnam
Christopher M. Knapp - Northern NH
Gregory D. Sargent
Coleen K. Kohaut - St. Albans
Total Assets$1,009,135 $844,888 Occupancy Expense, net420 428 1,411 1,287 David S. Silverman
Justin P. Lavely - St. Johnsbury
John H. Steel
Daniel J. Luneau - St. Albans
Equipment Expense770 625 2,266 1,764 
Mary K. Parent - St. Johnsbury
Samuel H. Ruggiano - St. Albans
Christine A. Sheley - Northern NH
Other Expenses1,883 1,833 5,516 5,400 
David S. Silverman - All
Union Bank Offices
(ATMs at all Branch Locations)
LIABILITIES & SHAREHOLDERS' EQUITYSEPT 30, 2020SEPT 30, 2019Total7,995 7,005 22,278 20,332 
Income Before Taxes4,898 3,215 10,605 9,263 VERMONT
Noninterest Bearing Deposits$204,555 $137,239 
Berlin1028 US Route 302802.476.0061
Interest Bearing Deposits562,970 419,646 Income Tax Expense751 477 1,594 1,374 FairfaxJct. Routes 104 & 128802.849.2600
Hardwick103 VT Route 15 West802.472.8100
Time Deposits142,554 159,844 Net income$4,147 $2,738 $9,011 $7,889 Jeffersonville5062 VT Route 15802.644.6600
Jericho368 VT Route 15802.899.7500
Borrowed Funds9,497 47,164 Earnings per share$0.92 $0.62 $2.01 $1.77 Johnson198 Lower Main Street802.635.6600
Lyndonville183 Depot Street802.626.3100
Accrued Interest & Other Liabilities11,135 10,382 Book Value Per Share$17.52 $15.80 Morrisville20 Lower Main Street802.888.6600
65 Northgate Plaza802.888.6860
Common Stock9,901 9,892 St. Albans15 Mapleville Depot802.524.9000
St. Johnsbury364 Railroad Street802.748.3131
Additional Paid-in Capital1,368 1,099 325 Portland Street802.748.3121
Retained EarningsStowe47 Park Street802.253.6600
68,735 62,645 WillistonBranch
Accumulated Other
Comprehensive Income
2,593 1,163 31 Market St802.878.7900
Loan Center
31 Market St802.865.1000
Treasury Stock at Cost(4,173)(4,186)
Total Liabilities & Shareholders' Equity$1,009,135 $844,888 NEW HAMPSHIRE
Standby letters of credit were $3,093,000 and $2,308,000 at September 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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