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): February 6, 2020

(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 February 6, 2020, Union Bankshares, Inc. distributed its Fourth 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 twelve months ended December 31, 2019 and the declaration of a regular quarterly dividend.

Item 9.01: Financial Statements and Exhibits

d) Exhibits:

99.1 Union Bankshares, Inc. Fourth Quarter 2019 Report to Shareholders distributed February 6, 2020 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.
February 6, 2020	/s/ Karyn J. Hale
	Karyn J. Hale
	Chief Financial Officer

EXHIBIT INDEX

Exhibit 99.1 Union Bankshares, Inc. Fourth Quarter 2019 Report to Shareholders distributed February 6, 2020.

EX-99.1

Exhibit 99.1

			February 6, 2020
			We are pleased to report earnings for your company for the fourth quarter and year ended December 31, 2019. Net income was $2.8 million and $10.6 million for the three and twelve months ended December 31, 2019, resulting in earnings per share of $0.61 and $2.38 for the same periods, respectively. This compares to our highest earnings recorded in the past of $8.4 million for the year ended 2017. The company’s return on average assets was 1.30% and return on average equity was 15.63% for the year ended December 31, 2019. Total assets were $872.9 million as of December 31,2019, an increase of $67.6 million, or 8.4% for the year. Total loans were $678.7 million as of December 31, 2019, an increase of $32.4 million, or 5.0% for the year. The company’s investment portfolio increased from $74.0 million as of December 31, 2018 to $88.1 million as of December 31, 2019. Total deposits reached $744.0 million as of December 31, 2019, growth of $37.3 million, or 5.3%, compared to $706.8 million a year ago. The company had total capital of $71.8 million with a book value per share of $16.06 as of December 31, 2019 compared to $64.5 million and book value per share $14.44 as of December 31, 2018. 2019 was a year of investing in the future for your company. We have undertaken a strategy of growing through geographic expansion. Accordingly, we opened two branch offices in Chittenden County, Vermont during 2019. The first branch was in Jericho, Vermont. We had been considering an office in the Jericho/Underhill area for many years but had been unable to find a suitable location. When a location next to the Jericho Market became available we decided the time was right to make a move. The second branch we opened was in Williston, Vermont. We built a fairly substantial facility near Taft Corners that houses our new full-service branch as well as our Loan Center previously located in South Burlington in a leased facility. We have loan officers staffing both locations as we aim to build-upon our already		successful lending efforts in Chittenden County as well as developing a deposit business there. In addition to branch expansion, we have enhanced our ATM network through replacing some of our older machines as well as modifying some of our newer fleet to meet today’s feature and security standards. We have also deployed new personal computers and servers throughout our entire footprint, aiding our employees to remain efficient and to stay current with security standards. A new initiative in 2019 was developing a Sustainability Committee made up of employees who have an interest in Environmental Sustainability. This group meets regularly to discuss ways our company can lighten our environmental footprint. Thus far we have installed solar electric panels on our new Jericho and Williston offices, and are in the process of retrofitting two other offices which are well-positioned for solar electric generation. Our outlook for 2020 calls for a flat interest rate environment with a continued positive economy. We are hoping for more snow and better conditions to support winter sports enthusiasts and the industry that caters to them, an important part of our local economy. The Board of Directors also declared a cash dividend of $0.32 per share for the quarter, and increase of 3.2% from the cash dividend of $0.31 paid in recent prior quarters, payable February 6, 2020 to shareholders of record as of January 27, 2020. 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	DEC 31, 2019				DEC 31, 2018				DEC 31, 2019			DEC 31, 2018				DEC 31, 2019			DEC 31, 2018			Timothy W. Sargent-Vice Chair		David S. Silverman - President & CEO
																							Joel S. Bourassa		Jeffrey G. Coslett- Vice President
											(3 months ended)							(12 months ended)
																							Steven J. Bourgeois		Karyn J. Hale - Chief Financial Officer
	Cash and Due from Banks		$	5,405			$	4,045		Interest Income	$	9,294		$	8,571			$	36,002		$	32,180
																							Dawn D. Bugbee		John H. Steel - Secretary
																							John M. Goodrich		Kristy Adams Alfieri - Assistant Secretary
	Federal Funds Sold & Overnight Deposits		45,729				33,244			Interest Expense	1,488			1,117				5,616			3,581		Nancy C. Putnam
										Net Interest Income	7,806			7,454				30,386			28,599		David S. Silverman
	Interest Bearing Deposits in Banks		6,565				9,300																John H. Steel
										Provision for Loan Losses	425			150				775			450		Schuyler W. Sweet
	Investment Securities		88,083				73,961			Net Interest Income After Provision for Loan Losses	7,381			7,304				29,611			28,149		Union Bank		REGIONAL ADVISORY BOARD MEMBERS
	Loans Held for Sale		7,442				2,899
										Trust Income	173			172				692			751		DIRECTORS
	Loans, net		671,287				643,399			Noninterest Income	2,796			2,226				9,631			8,722		Neil J. Van Dyke -Chair		Michael R. Barrett - St. Johnsbury
																							Timothy W. Sargent -Vice Chair		Steven J. Bourgeois - St. Albans
	Reserve for Loan Losses		(6,122		)		(5,739		)	Noninterest Expenses:													Joel S. Bourassa		Stanley T. Fillion - Northern NH
										Salaries & Wages	3,048			2,740				11,821			10,748		Steven J. Bourgeois		Rosemary H. Gingue - St. Johnsbury
	Premises and Equipment, net		20,923				16,073			Pension Expense	—			4,123				—			4,631		Dawn D. Bugbee		John M. Goodrich - St. Johnsbury
										Employee Benefits	1,097			862				4,194			3,653		John M. Goodrich		Christopher M. Knapp - Northern NH
	Accrued Interest & other Assets		33,600				28,155																Nancy C. Putnam		Coleen K. Kohaut - St. Albans
																							David S. Silverman		Justin P. Lavely - St. Johnsbury
	Total Assets		$	872,912			$	805,337		Occupancy Expense, net	519			378				1,806			1,447		John H. Steel		Daniel J. Luneau - St. Albans
																							Schuyler W. Sweet		Mary K. Parent - St. Johnsbury
										Equipment Expense	711			560				2,475			2,134				Samuel H. Ruggiano - St. Albans
																									Christine Sheley - Northern NH
																									David S. Silverman - All
										Other Expenses	1,760			1,614				7,160			6,585				Schuyler W. Sweet - Northern NH
																							Union Bank Offices (ATMs at all Branch Locations)
	LIABILITIES & SHAREHOLDERS' EQUITY	DEC 31, 2019				DEC 31, 2018				Total	7,135			10,277				27,456			29,198
										Income Before Taxes	3,215			(575		)		12,478			8,424		VERMONT
	Noninterest Bearing Deposits		$	136,434			$	132,971
																							Berlin	1028 US Route 302		802.476.0061
	Interest Bearing Deposits		458,940				444,722			Income Tax Expense	456			(139		)		1,830			1,352		Danville	421 Route 2 East		802.684.2211
																							Fairfax	Jct. Routes 104 & 128		802.849.2600
	Time Deposits		148,653				129,077			Net income	$	2,759		$	(436	)		$	10,648		$	7,072	Hardwick	103 VT Route 15 West		802.472.8100
																							Jeffersonville	5062 VT Route 15		802.644.6600
	Borrowed Funds		47,164				27,821			Earnings per share	$	0.61		$	(0.10	)		$	2.38		$	1.58	Jericho	368 VT Route 15		802.899.7500
																							Johnson	198 Lower Main Street		802.635.6600
	Accrued Interest & Other Liabilities		9,878				6,255			Book Value Per Share								$	16.06		$	14.44	Lyndonville	183 Depot Street		802.626.3100
																							Morrisville	20 Lower Main Street		802.888.6600
	Common Stock		9,897				9,888																	65 Northgate Plaza		802.888.6860
																							St. Albans	15 Mapleville Depot		802.524.9000
	Additional Paid-in Capital		1,124				894																St. Johnsbury	364 Railroad Street		802.748.3131
	Retained Earnings																							325 Portland Street		802.748.3121
			64,019				58,911																Stowe	47 Park Street		802.253.6600
	Accumulated Other Comprehensive Income (Loss)		986				(1,023		)														Williston	Branch
																								31 Market St		802.878.7900
																								Loan Center
	Treasury Stock at Cost		(4,183		)		(4,179		)															31 Market St		802.865.1000
	Total Liabilities & Shareholders' Equity		$	872,912			$	805,337															NEW HAMPSHIRE
	Standby letters of credit were $2,308,000 and $2,331,000 at December 31, 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