8-K

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 7, 2019

(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)
Vermont	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:

c    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

c    Soliciting materials pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

c    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

c    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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 7, 2019, Union Bankshares, Inc. distributed its Third Quarter2019 unaudited Report to Shareholders, a copy of which is furnished with this Form 8-K as Exhibit 99.1, presenting information concerning our results of operations and financial condition for the three and nine months ended September 30, 2019 and the declaration of a regular quarterly dividend.

Item 9.01: Financial Statements and Exhibits

d) Exhibits:

99.1 Union Bankshares, Inc. Third Quarter 2019 Report to Shareholders distributed November 7, 2019 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 7, 2019	/s/ Karyn J. Hale
	Karyn J. Hale
	Chief Financial Officer

EXHIBIT INDEX

Exhibit 99.1 Union Bankshares, Inc. Third Quarter 2019 Report to Shareholders distributed November 7, 2019.

EX-99.1

Exhibit 99.1

			November 7, 2019
			We are pleased to report your company’s financial results for the quarter ended September 30, 2019. Net income for the quarter was $2.7 million, an increase of 18.5% over the third quarter of 2018, and earnings per share was $0.62, an increase of 19.2% over the same period in 2018. Net income for the nine months ended September 30, 2019 was $7.9 million, or 5.3% over the first nine months of 2018, and $1.77 per share, or 5.3%, over the same period in 2018. Total assets were $844.9 million as of September 30, 2019, an increase of $65.2 million, or 8.4%. from $779.7 million as of September 30, 2018. Total loans increased $27.8 million, or 4.3% since September 30, 2018 to reach $671.5 million as of September 30, 2019. Total deposits grew $49.0 million, or 7.3%, during the comparison periods to reach $716.7 million as of September 30, 2019. The Company had total capital of $70.6 million with a book value per share of $15.80 as of September 30, 2019 compared to $60.8 million and $13.61 per share as of September 30, 2018. Interest income was $26.7 million for the nine months ended September 30, 2019, compared to $23.6 million for the nine months ended September 30, 2018, an increase of $3.1 million, or 13.1%. Interest income in 2018 was reduced by a one-time adjustment of $310 thousand that did not occur in 2019 and the increase in the volume of earning assets drove the increase for the comparison period. Interest expense was $4.1 million for nine months ended September 30, 2019 compared to $2.5 million for the prior period, an increase of $1.7 million, or 67.5%. Increases in customer deposits balances and rates paid on those accounts contributed to the increase in expense. Total noninterest income was $7.4 million and $7.1 million for the nine months ended September 30, 2019 and September 30, 2018, respectively. Total noninterest expenses were $20.3 million for nine months ended September 30, 2019 compared to $19.0 million for the same period in 2018.		Notable variances for the nine months ended September 30, 2019 compared to the prior year included an increase in gain on sale of loans of $558 thousand, an increase in salaries and wages of $765 thousand offset by a decrease in employee benefits of $508 thousand related to the termination of the company defined benefit pension plan in 2018, and an increase in equipment costs of $190. The Company’s return on average assets was 1.31% and return on average equity was 15.64% for the nine months ended September 30, 2019. These key financial metrics along with balance sheet growth and results of operations are within the range of our expectations for 2019. We recently opened two full service branch locations in Jericho and Williston, Vermont. These locations are located in Chittenden County, Vermont’s most populous and economically vibrant region. The Williston location also houses our robust mortgage lending operation previously located in rented space in South Burlington, Vermont. Growth in Chittenden County is an important part of our organic growth strategy. The Board of Directors also declared a cash dividend of $0.31 per share payable November 7, 2019 to shareholders of record as of October 28, 2019. As a reminder, a dividend reinvestment plan (DRIP) to facilitate further investments in your company is available. Information on the DRIP may be found at www.ublocal.com under Investor Relations. 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 11717 866.321.8022 or 720.378.5956 E-mail: shareholder@broadridge.com
	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
			AboutUnion 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.
																						DIRECTORS		OFFICERS
																						Neil J. Van Dyke -Chair		Neil J. Van Dyke - Chair
	ASSETS	SEPT 30, 2019				SEPT 30, 2018				SEPT 30, 2019			SEPT 30, 2018			SEPT 30, 2019			SEPT 30, 2018			Timothy W. Sargent-Vice Chair		David S. Silverman - President & CEO
																						Joel S. Bourassa		Jeffrey G. Coslett- Vice President
											(3 months ended)						(9 months ended)
																						Steven J. Bourgeois		Karyn J. Hale - Chief Financial Officer
	Cash and Due from Banks		$	5,126			$	4,063		Interest Income	$	9,131		$	8,095		$	26,708		$	23,609
																						Dawn D. Bugbee		John H. Steel - Secretary
																						John M. Goodrich		Kristy Adams Alfieri - Assistant Secretary
	Federal Funds Sold & Overnight Deposits		24,774				9,837			Interest Expense	1,497			1,086			4,128			2,464		Nancy C. Putnam
										Net Interest Income	7,634			7,009			22,580			21,145		David S. Silverman
	Interest Bearing Deposits in Banks		7,062				9,747															John H. Steel
										Provision for Loan Losses	150			150			350			300		Schuyler W. Sweet
	Investment Securities		85,886				72,133			Net Interest Income After Provision for Loan Losses	7,484			6,859			22,230			20,845		Union Bank		REGIONAL ADVISORY BOARD MEMBERS
	Loans Held for Sale		13,561				7,457
										Trust Income	168			195			519			579		DIRECTORS
	Loans, net		658,904				637,130			Noninterest Income	2,564			2,257			6,835			6,496		Neil J. Van Dyke -Chair		Michael R. Barrett - St. Johnsbury
																						Timothy W. Sargent -Vice Chair		Steven J. Bourgeois - St. Albans
	Reserve for Loan Losses		(5,808		)		(5,610		)	Noninterest Expenses:												Joel S. Bourassa		Stanley T. Fillion - Northern NH
										Salaries & Wages	3,072			2,745			8,773			8,008		Steven J. Bourgeois		Rosemary H. Gingue - St. Johnsbury
	Premises and Equipment, net		22,507				15,747															Dawn D. Bugbee		John M. Goodrich - St. Johnsbury
										Employee Benefits	1,043			1,144			3,097			3,299		John M. Goodrich		Christopher M. Knapp - Northern NH
	Accrued Interest & other Assets		32,876				29,154															Nancy C. Putnam		Coleen K. Kohaut - St. Albans
																						David S. Silverman		Justin P. Lavely - St. Johnsbury
	Total Assets		$	844,888			$	779,658		Occupancy Expense, net	428			338			1,287			1,069		John H. Steel		Daniel J. Luneau - St. Albans
																						Schuyler W. Sweet		Mary K. Parent - St. Johnsbury
										Equipment Expense	625			528			1,764			1,574				Samuel H. Ruggiano - St. Albans
																								David S. Silverman - All
										Other Expenses	1,833			1,770			5,400			5,005				Schuyler W. Sweet - Northern NH
																						Union Bank Offices (ATMs at all Branch Locations)
	LIABILITIES & SHAREHOLDERS' EQUITY	SEPT 30, 2019				SEPT 30, 2018				Total	7,001			6,525			20,321			18,955
										Income Before Taxes	3,215			2,786			9,263			8,965		VERMONT
	Noninterest Bearing Deposits		$	137,239			$	126,596
																						Berlin	1028 US Route 302		802.476.0061
	Interest Bearing Deposits		419,646				407,965			Income Tax Expense	477			475			1,374			1,457		Danville	421 Route 2 East		802.684.2211
																						Fairfax	Jct. Routes 104 & 128		802.849.2600
	Time Deposits		159,844				133,162			Net income	$	2,738		$	2,311		$	7,889		$	7,508	Hardwick	103 VT Route 15 West		802.472.8100
																						Jeffersonville	5062 VT Route 15		802.644.6600
	Borrowed Funds		47,164				41,990			Earnings per share	$	0.62		$	0.52		$	1.77		$	1.68	Jericho	368 VT Route 15		802.899.7500
																						Johnson	198 Lower Main Street		802.635.6600
	Accrued Interest & Other Liabilities		10,382				9,168			Book Value Per Share							$	15.80		$	13.61	Lyndonville	183 Depot Street		802.626.3100
																						Morrisville	20 Lower Main Street		802.888.6600
	Common Stock		9,892				9,882																65 Northgate Plaza		802.888.6860
																						St. Albans	15 Mapleville Depot		802.524.9000
	Additional Paid-in Capital		1,099				897															St. Johnsbury	364 Railroad Street		802.748.3131
	Retained Earnings																						325 Portland Street		802.748.3121
			62,645				60,686															Stowe	47 Park Street		802.253.6600
	Accumulated Other Comprehensive Income (Loss)		1,163				(6,612		)													Williston	Branch
																							31 Market St		802.878.7900
																							Loan Center
	Treasury Stock at Cost		(4,186		)		(4,076		)														31 Market St		802.865.1000
	Total Liabilities & Shareholders' Equity		$	844,888			$	779,658														NEW HAMPSHIRE
	Standby letters of credit were $2,308,000 and $2,125,000 at September 30, 2019 and 2018, respectively.																					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	Commercial Loan Center
																							2541 White Mountain Hwy		603.662.9408
																						N. Woodstock	155 Main Street		603.745.2488