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 3, 2022

(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))

Securities registered pursuant to section 12(b) of the Act:

Common Stock, $2.00 par value	UNB	Nasdaq Stock Market
(Title of class)	(Trading Symbol)	(Exchanges registered on)

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 3, 2022, Union Bankshares, Inc (the "Company") distributed its Fourth Quarter 2021 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, 2021 and declaration of a regular quarterly dividend. A copy of the Quarterly Report is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Item 9.01: Financial Statements and Exhibits

d) Exhibits:

99.1 Union Bankshares, Inc. Fourth Quarter 2021 Report to Shareholders distributed February 3, 2022 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 3, 2022	/s/ Karyn J. Hale
	Karyn J. Hale
	Chief Financial Officer

EXHIBIT INDEX

Exhibit 99.1 Union Bankshares, Inc. Fourth Quarter 2021 Report to Shareholders distributed February 3, 2022.

EX-99.1

Exhibit 99.1

			February 3, 2022
			We are pleased to report our full year 2021 financial results.Consolidated net income was $13.2 million, or $2.94 per share,compared to $12.8 million, or $2.86 per share, for the year ended December 31, 2021 and 2020, respectively. The improvement in earnings was due to a $4.1 million increase in net interest income and a decrease of $2.2 million in the provision for loan losses, partially offset by a decrease in noninterest income of $3.0 million and increases in noninterest expenses of $2.7 million and income tax expense of $227 thousand. Total assets increased to $1.2 billion as of December 31, 2021, from $1.1 billion as of December 31, 2020, growth of $112.1 million, or 10.3%. Balance sheet growth was driven by an increase in customer deposit balances of $100.8 million which funded loan originations and increases in investment securities. The investment portfolio, including interest bearing deposits in banks, increased $162.6 million, or 136.1%, to $282.1 million as of December 31, 2021, from $119.5 million as of December 31, 2020, as higher yields were sought on excess liquidity. Outstanding loan balances were $801.6 million as of December 31, 2021, compared to $803.2 million as of December 31, 2020. Contributing to the slight decrease in outstanding loans year over year was $52.7 million of SBA PPP loans forgiven throughout 2021. During 2020 and 2021, customer deposits have increased $351.1 million, a direct result of monetary and fiscal stimulus at the federal level. Those monies were utilized to fund loan originations and investment purchases. The loan portfolio increased $122.9 million and the investment portfolio increased $187.5 million. We would prefer to deploy funds into loans in order to maximize yield, but it takes longer to carefully source, underwrite, and originate sound and profitable loans than it does to acquire government debt securities. As announced on August 26, 2021, the Company completed a private placement of $16.5 million in aggregate principal amount of fixed-to-floating rate subordinated notes due		2031 to certain qualified institutional buyers and accredited investors. Proceeds from the sale of the notes were used to provide additional capital support to the Company’s wholly-owned subsidiary, Union Bank, to support growth and for other general corporate purposes. The Directors and Management are pleased to have timed the debt issuance to obtain a favorable initial coupon of 3.25%. Looking back at 2020 and 2021 from the Company’s perspective, we are extremely fortunate to have fared as well as we did. Most of our business and retail customers have survived and in some cases are doing much better than in 2019, the last year untouched by the pandemic. Monetary and fiscal policy at the federal level dampened the negative economic impact of the pandemic, though it undeniably harmed those less fortunate among us. Currently, the most immediate challenges our customers (and the bank) are facing include maintaining a stable workforce, supply chain disruptions and elevated inflation. We are blessed to occupy an area much loved by leisure travelers for our variety of outdoor recreation opportunities and world class hospitality amenities. Demand for travel to our area has been excellent. We are pleased to inform you that the Board of Directors declared a cash dividend of $0.35 per share at our meeting held on January 19, 2022, an increase of 6.1% from the cash dividend of $0.33 paid in recent prior quarters, payable February 3, 2022 to shareholders of record as of January 29, 2022. 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, three 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 130 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. Union Bank has received an "Outstanding" rating for its compliance with the Community Reinvestment Act (CRA). An institution in this group has an excellent record of helping to meet the credit needs of its assessment area, particularly in low-and moderate income neighborhoods, in a manner consistent with its resources and capabilities.

	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, 2021			DEC 31, 2020			DEC 31, 2021			DEC 31, 2020			DEC 31, 2021			DEC 31, 2020			Timothy W. Sargent-Vice Chair		David S. Silverman - President & CEO
																				Joel S. Bourassa		Jeffrey G. Coslett- Vice President
									(3 months ended)						(12 months ended)
																				Dawn D. Bugbee		Karyn J. Hale - Chief Financial Officer
	Cash and Due from Banks		$	4,659		$	5,413	Interest Income	$	10,023		$	9,305		$	39,273		$	36,750
																				John M. Goodrich		John H. Steel - Secretary
																				Nancy C. Putnam		Kristy Adams Alfieri - Assistant Secretary
	Federal Funds Sold & Overnight Deposits		61,263			117,358		Interest Expense	779			1,171			3,565			5,147		Gregory D. Sargent
								Net Interest Income	9,244			8,134			35,708			31,603		David S. Silverman
	Interest Bearing Deposits in Banks		13,196			12,699														John H. Steel
								Provision for Loan Losses	(225)			600			—			2,200
	Investment Securities		268,951			106,810		Net Interest Income After Provision for Loan Losses	9,469			7,534			35,708			29,403		Union Bank		REGIONAL ADVISORY BOARD MEMBERS
	Loans Held for Sale		13,829			32,188
								Trust Income	209			183			808			707		DIRECTORS
	Loans, net		787,755			771,023		Noninterest Income	2,793			4,806			12,155			15,296		Neil J. Van Dyke -Chair		Michael R. Barrett - St. Johnsbury
																				Timothy W. Sargent -Vice Chair		Steven J. Bourgeois - St. Albans
	Reserve for Loan Losses		(8,336)			(8,271)		Noninterest Expenses:												Joel S. Bourassa		Andrew A. Dean - Northern NH
								Salaries & Wages	3,894			3,552			14,448			13,220		Dawn D. Bugbee		Stanley T. Fillion - Northern NH
	Premises and Equipment, net		21,615			20,039														John M. Goodrich		Rosemary H. Gingue - St. Johnsbury
								Employee Benefits	1,029			1,163			4,593			4,580		Nancy C. Putnam		John M. Goodrich - St. Johnsbury
	Accrued Interest & other Assets		42,429			36,295														Gregory D. Sargent		Christopher M. Knapp - Northern NH
																				David S. Silverman		Coleen K. Kohaut - St. Albans
	Total Assets		$	1,205,361		$	1,093,554	Occupancy Expense, net	461			394			1,890			1,805		Janet P. Spitler		Justin P. Lavely - St. Johnsbury
																				John H. Steel		Daniel J. Luneau - St. Albans
								Equipment Expense	883			791			3,425			3,057				Mary K. Parent - St. Johnsbury
																						Samuel H. Ruggiano - St. Albans
																						Christine A. Sheley - Northern NH
	LIABILITIES & SHAREHOLDERS' EQUITY	DEC 31, 2021			DEC 31, 2020			Other Expenses	2,198			2,004			8,499			7,520				David S. Silverman - All
																				Union Bank Offices (ATMs at all Branch Locations)
								Total	8,465			7,904			32,855			30,182
	Noninterest Bearing Deposits		$	264,888		$	215,245
								Income Before Taxes	4,006			4,619			15,816			15,224		VERMONT
	Interest Bearing Deposits		723,479			637,369
																				Berlin	1028 US Route 302		802.476.0061
	Time Deposits		106,715			141,688		Income Tax Expense	628			825			2,646			2,419		Fairfax	Jct. Routes 104 & 128		802.849.2600
																				Hardwick	103 VT Route 15 West		802.472.8100
	Borrowed Funds		—			7,164		Net income	$	3,378		$	3,794		$	13,170		$	12,805	Jeffersonville	5062 VT Route 15		802.644.6600
																				Jericho	368 VT Route 15		802.899.7500
	Subordinated Debentures and Notes		16,171			—		Earnings per share	$	0.76		$	0.85		$	2.94		$	2.86	Johnson	198 Lower Main Street		802.635.6600
																				Lyndonville	183 Depot Street		802.626.3100
	Accrued Interest & Other Liabilities		9,767			11,221		Book Value Per Share							$	18.77		$	18.05	Morrisville	20 Lower Main Street		802.888.6600
																					65 Northgate Plaza		802.888.6860
	Common Stock		9,934			9,910														Shelburne	5068 Shelburne Road		802.985.0250
																				St. Albans	15 Mapleville Depot		802.524.9000
	Additional Paid-in Capital		1,769			1,393														St. Johnsbury	Operations and Loan Center
	Retained Earnings																				364 Railroad Street		802.748.3131
			78,350			71,097															Branch
	Accumulated Other Comprehensive Income		(1,552)			2,636															325 Portland Street		802.748.3121
																				Stowe	47 Park Street		802.253.6600
																				Williston	Branch
	Treasury Stock at Cost		(4,160)			(4,169)															31 Market St		802.878.7900
																					Loan Center
	Total Liabilities & Shareholders' Equity		$	1,205,361		$	1,093,554														31 Market St		802.865.1000
	Standby letters of credit were $2,158,000 and $3,115,000 at December 31, 2021 and 2020, respectively.																			NEW HAMPSHIRE
																				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. 03, 2022
Document Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Feb. 03, 2022
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