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 5, 2021

(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: (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 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 5, 2021, Union Bankshares, Inc (the "Company") distributed its Fourth 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 twelve months ended December 31, 2020 and declaration of a regular quarterly dividend, along with a copy of the Company's press release issued on January 20, 2021 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 January 20, 2021.

Item 9.01: Financial Statements and Exhibits

d) Exhibits:

99.1 Union Bankshares, Inc. Fourth Quarter 2020 Report to Shareholders distributed February 5, 2021 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 5, 2021	/s/ Karyn J. Hale
	Karyn J. Hale
	Chief Financial Officer

EXHIBIT INDEX

Exhibit 99.1 Union Bankshares, Inc. Fourth Quarter 2020 Report to Shareholders distributed February 5, 2021.

EX-99.1

Exhibit 99.1

			February 5, 2021
			We are pleased to greet you in this new year. As we have in past quarters, the press release is enclosed announcing year end results to save room to provide more detail on bank matters, including our current state of operations and impacts on our customers, communities, and our staff. We are naturally pleased to inform you that we generated record earnings for 2020 of $12.8 million, compared to $10.6 million in earnings in 2019, our previous record. During 2020, our balance sheet grew 25%, cresting the $1 Billion mark for the first time. Candidly, we did not expect this level of earnings and growth when we began the year, and would not have predicted it once the pandemic was in full bloom. A fortunate confluence of events plus a great deal of hard work by our dedicated staff allowed us to take advantage of the unique circumstances. The Federal Reserve’s reaction to the pandemic was swift and massive. They simultaneously dropped short term interest rates and increased their purchases of financial assets, flooding the markets with liquidity that eventually found its way to bank balance sheets, including Union’s. The resulting sharp drop in residential loan interest rates sparked residential purchase financings and residential re-financings, increasing our loan volume dramatically, which in turn generated a significant increase in fee income from premiums on the sale of loans to the secondary market. In addition, the fee income generated from the origination of US Small Business Association (SBA) Payroll Protection Program (PPP) loans, unplanned for in our budget process, also helped our bottom line. We are writing this letter during a light snow fall with our surrounding mountains barely visible behind clouds, simulating the lack of clarity we have to future economic conditions. We have been working with our consumer and business customers using loan modifications, forbearances and various Federal		and State programs to keep our customers in their homes and in business. We are now processing the second draw SBA PPP program, targeted at the businesses and nonprofits hardest hit by the pandemic. Though administering this program has been taxing on our team, it has been a needed lifeline for our business community who have suffered severe declines in revenue through no fault of their own. The re-opening of our economy and our general wellbeing is largely dependent on the distribution and acceptance of the COVID vaccination. Thus far, the distribution has not gone well, delaying the economic recovery further and causing greater health problems. Our balance sheet and loan loss reserve are well positioned to absorb potential losses that may or may not materialize. Operationally, we remain in a guarded stance, keeping our branch lobbies closed with access-by-appointment and continuing to have approximately 80 of our staff work from home with others dispersed at bank facilities throughout our footprint. We continue to offer our full range of services, though in some cases using different distribution channels. It is unlikely that we will be able to resume normal operations until late Spring at the earliest. Similarly, it is unlikely that we will be able to host our Annual Meeting in May in person. This is truly unfortunate, as we really enjoy visiting with our shareholders at the Annual Meeting. We are pleased to inform you that the Board of Directors declared an increase in the cash dividend to $0.33 per share for the quarter, payable February 5, 2021 to shareholders of record as of February 1, 2021. 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 18 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, 2020			DEC 31, 2019			DEC 31, 2020			DEC 31, 2019			DEC 31, 2020			DEC 31, 2019			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		$	5,413		$	5,405	Interest Income	$	9,305		$	9,234		$	36,750		$	35,870
																				Dawn D. Bugbee		John H. Steel - Secretary
																				John M. Goodrich		Kristy Adams Alfieri - Assistant Secretary
	Federal Funds Sold & Overnight Deposits		117,358			45,729		Interest Expense	1,171			1,483			5,147			5,600		Nancy C. Putnam
								Net Interest Income	8,134			7,751			31,603			30,270		David S. Silverman
	Interest Bearing Deposits in Banks		12,699			6,565														John H. Steel
								Provision for Loan Losses	600			425			2,200			775
	Investment Securities		106,810			88,083		Net Interest Income After Provision for Loan Losses	7,534			7,326			29,403			29,495		Union Bank		REGIONAL ADVISORY BOARD MEMBERS
	Loans Held for Sale		32,188			7,442
								Trust Income	183			173			707			692		DIRECTORS
	Loans, net		771,023			671,287		Noninterest Income	4,806			2,856			15,296			9,763		Neil J. Van Dyke -Chair		Michael R. Barrett - St. Johnsbury
																				Timothy W. Sargent -Vice Chair		Steven J. Bourgeois - St. Albans
	Reserve for Loan Losses		(8,271)			(6,122)		Noninterest Expenses:												Joel S. Bourassa		Andrew A. Dean - Northern NH
								Salaries & Wages	3,552			3,048			13,220			11,821		Steven J. Bourgeois		Stanley T. Fillion - Northern NH
	Premises and Equipment, net		20,040			20,923														Dawn D. Bugbee		Rosemary H. Gingue - St. Johnsbury
								Employee Benefits	1,163			1,102			4,580			4,210		John M. Goodrich		John M. Goodrich - St. Johnsbury
	Accrued Interest & other Assets		36,767			33,600														Nancy C. Putnam		Christopher M. Knapp - Northern NH
																				Gregory D. Sargent		Coleen K. Kohaut - St. Albans
	Total Assets		$	1,094,027		$	872,912	Occupancy Expense, net	394			519			1,805			1,806		David S. Silverman		Justin P. Lavely - St. Johnsbury
																				John H. Steel		Daniel J. Luneau - St. Albans
								Equipment Expense	788			711			3,054			2,475				Mary K. Parent - St. Johnsbury
																						Samuel H. Ruggiano - St. Albans
																						Christine A. Sheley - Northern NH
								Other Expenses	2,007			1,760			7,523			7,160				David S. Silverman - All
																				Union Bank Offices (ATMs at all Branch Locations)
	LIABILITIES & SHAREHOLDERS' EQUITY	DEC 31, 2020			DEC 31, 2019			Total	7,904			7,140			30,182			27,472
								Income Before Taxes	4,619			3,215			15,224			12,478		VERMONT
	Noninterest Bearing Deposits		$	215,245		$	136,434
																				Berlin	1028 US Route 302		802.476.0061
	Interest Bearing Deposits		637,369			458,940		Income Tax Expense	825			456			2,419			1,830		Fairfax	Jct. Routes 104 & 128		802.849.2600
																				Hardwick	103 VT Route 15 West		802.472.8100
	Time Deposits		141,688			148,653		Net income	$	3,794		$	2,759		$	12,805		$	10,648	Jeffersonville	5062 VT Route 15		802.644.6600
																				Jericho	368 VT Route 15		802.899.7500
	Borrowed Funds		7,164			47,164		Earnings per share	$	0.85		$	0.61		$	2.86		$	2.38	Johnson	198 Lower Main Street		802.635.6600
																				Lyndonville	183 Depot Street		802.626.3100
	Accrued Interest & Other Liabilities		11,694			9,878		Book Value Per Share							$	18.05		$	16.06	Morrisville	20 Lower Main Street		802.888.6600
																					65 Northgate Plaza		802.888.6860
	Common Stock		9,910			9,897														St. Albans	15 Mapleville Depot		802.524.9000
																				St. Johnsbury	364 Railroad Street		802.748.3131
	Additional Paid-in Capital		1,393			1,124															325 Portland Street		802.748.3121
	Retained Earnings																			Stowe	47 Park Street		802.253.6600
			71,097			64,019														Williston	Branch
	Accumulated Other Comprehensive Income		2,636			986															31 Market St		802.878.7900
																					Loan Center
																					31 Market St		802.865.1000
	Treasury Stock at Cost		(4,169)			(4,183)
	Total Liabilities & Shareholders' Equity		$	1,094,027		$	872,912													NEW HAMPSHIRE
	Standby letters of credit were $3,092,000 and $2,308,000 at December 31, 2020 and 2019, 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

XML

Cover	Feb. 05, 2021
Document Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Feb. 05, 2021
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