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): August 3, 2023

(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 August 3, 2023, Union Bankshares, Inc (the "Company") distributed its Second Quarter 2023 unaudited Report to Shareholders (the "Quarterly Report") presenting information concerning the Company's results of operations and financial condition for the three and six months ended June 30, 2023 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. Second Quarter 2023 Report to Shareholders distributed August 3, 2023 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.
August 3, 2023	/s/ David S. Silverman
	David S. Silverman
	President/Chief Executive Officer
August 3, 2023	/s/ Karyn J. Hale
	Karyn J. Hale
	Chief Financial Officer

EXHIBIT INDEX

Exhibit 99.1 Union Bankshares, Inc. Second Quarter 2023 Report to Shareholders distributed August 3, 2023.

EX-99.1

Exhibit 99.1

			August 3, 2023
			We are pleased to report the financial results for Union Bankshares, Inc. for the three and six months ending June 30, 2023. Consolidated net income for the three months ending June 30, 2023, was $2.7 million, or $0.60 per share, compared to $2.9 million, or $0.65 cents per share, for the same period in 2022, and $5.7 million, or $1.26 per share, for the six months ending June 30, 2023, compared to $5.4 million, or $1.20 per share for the same period in 2022. Total assets were $1.3 billion as of June 30, 2023, compared to $1.2 billion as of June 30, 2022, an increase of $142.8 million, or 12.0%. Asset growth was primarily driven by loans. Total loans outstanding as of June 30, 2023, were $940.2 million, which included $3.1 million in loans held for sale, compared to $823.0 million as of June 30, 2022, with $3.8 million in loans held for sale. Total deposits were $1.1 billion as of June 30, 2023, and include $138.0 million of purchased brokered deposits compared to deposits of $1.1 billion as of June 30, 2022, with no purchased deposits. Also, advances from the Federal Home Loan Bank totaling $120.5 million were outstanding as of June 30, 2023, compared to no outstanding advances as of June 30, 2022. Second quarter results were impacted by significantly higher funding costs compared to the first quarter and the several prior years. While new loans are being originated at higher interest rates than previously, it has not entirely made up for the increases in funding costs. We expect this pressure on funding costs to continue for the near term and perhaps longer. As most are aware, the State of Vermont suffered a devastating flooding event from July 7-12, 2023. Many towns and cities were impacted. Union’s home market, including Lamoille County and the Hardwick area were especially hard hit as the Lamoille River breeched its banks at levels		exceeding that of Hurricane Irene. Two of our branches, Johnson and Jeffersonville, suffered water damage. Both properties are covered by two layers of flood insurance and as a result, we do not expect repair efforts to have a material impact on our financial performance. The Jeffersonville branch is back in business at this writing, and we are hoping we will be able to re-open Johnson around July 31st. We believe getting re-opened as soon as possible is important to these now fragile communities. As during past crises large and small, we are communicating with our customers, assessing their situations, and working with them case by case to keep people in their homes and remain in business. Many of our local towns and villages suffered substantial infrastructure damage. We are working with local governments to expedite funding for the repair of vital services such as roads, bridge, water, and sewer. The most unfortunate among us are also the most impacted by the current natural disaster. Federal and State assistance will hopefully become available in due course. Until then, there are immediate needs such as food and housing that community members are at risk of doing without. We are working with local non-profit organizations including the United Way of Lamoille County and the Vermont Community Foundation to assist impacted community members with their immediate financial needs The Board of Directors declared a cash dividend of $0.36 per share for the quarter payable August 3, 2023, to shareholders of record as of July 29, 2023.
	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	June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022			Timothy W. Sargent - Vice Chair		David S. Silverman - President & CEO
																				Joel S. Bourassa		Karyn J. Hale - Chief Financial Officer
									(3 months ended)						(6 months ended)
																				Dawn D. Bugbee		Timothy W. Sargent - Secretary
	Cash and Due from Banks		$	4,351		$	4,411	Interest Income	$	13,803		$	10,404		$	26,847		$	20,130
																				Mary K. Parent		Kristy Adams Alfieri - Assistant Secretary
																				Nancy C. Putnam
	Federal Funds Sold & Overnight Deposits		31,452			20,885		Interest Expense	4,185			733			7,254			1,496		Gregory D. Sargent
								Net Interest Income	9,618			9,671			19,593			18,634		David S. Silverman
	Interest Bearing Deposits in Banks		15,183			13,943														Janet P. Spitler
								Credit Loss Benefit	(96)			—			(22)			—
	Investment Securities		268,915			262,827		Net Interest Income After Credit Loss Benefit	9,714			9,671			19,615			18,634		Union Bank		REGIONAL ADVISORY BOARD MEMBERS
	Loans Held for Sale		3,145			3,820
								Wealth Management Income	240			217			451			426		DIRECTORS
	Loans, net		937,092			819,146		Noninterest Income	2,243			2,063			4,317			4,084		Neil J. Van Dyke - Chair		Michael R. Barrett - St. Johnsbury
																				Timothy W. Sargent - Vice Chair		Steven J. Bourgeois - St. Albans
	Allowance for Credit Losses		(6,780)			(8,340)		Noninterest Expenses:												Joel S. Bourassa		Andrew A. Dean - Northern NH
								Salaries & Wages	3,673			3,520			7,175			6,930		Dawn D. Bugbee		Stanley T. Fillion - Northern NH
	Premises and Equipment, net		20,054			20,983														Mary K. Parent		Rosemary H. Gingue - St. Johnsbury
								Employee Benefits	1,471			1,295			2,848			2,600		Nancy C. Putnam		John M. Goodrich - Northern NH
	Accrued Interest & other Assets		61,332			54,238														Gregory D. Sargent		Christopher M. Knapp - Northern NH
																				David S. Silverman		Coleen K. Kohaut - St. Albans
	Total Assets		$	1,334,744		$	1,191,913	Occupancy Expense, net	482			462			1,060			989		Janet P. Spitler		Justin P. Lavely - St. Johnsbury
																						Daniel J. Luneau - St. Albans
								Equipment Expense	882			934			1,779			1,850				Samuel H. Ruggiano - St. Albans
																						Christine A. Sheley - Northern NH
																						David S. Silverman - All
	LIABILITIES & SHAREHOLDERS' EQUITY	June 30, 2023			June 30, 2022			Other Expenses	2,555			2,199			4,951			4,330
																				Union Bank Offices (ATMs at all Branch Locations)
								Total	9,063			8,410			17,813			16,699
	Noninterest Bearing Deposits		$	238,636		$	337,140
								Income Before Taxes	3,134			3,541			6,570			6,445		VERMONT
	Interest Bearing Deposits		633,019			662,778
																				Berlin	1028 US Route 302		802.476.0061
	Time Deposits		252,031			103,135		Income Tax Expense	435			610			894			1,032		Fairfax	Jct. Routes 104 & 128		802.849.2600
																				Hardwick	103 VT Route 15 West		802.472.8100
	Borrowed Funds		120,549			—		Net income	$	2,699		$	2,931		$	5,676		$	5,413	Jeffersonville	5062 VT Route 15		802.644.6600
																				Jericho	368 VT Route 15		802.899.7500
	Subordinated Notes		16,222			16,188		Earnings per share	$	0.60		$	0.65		$	1.26		$	1.20	Johnson	198 Lower Main Street		802.635.6600
																				Lyndonville	183 Depot Street		802.626.3100
	Accrued Interest & Other Liabilities		15,233			12,726		Book Value Per Share							$	13.10		$	13.34	Morrisville	20 Lower Main Street		802.888.6600
																					65 Northgate Plaza		802.888.6860
	Common Stock		9,969			9,940														Shelburne	5068 Shelburne Road		802.985.0250
																				St. Albans	15 Mapleville Depot		802.524.9000
	Additional Paid-in Capital		2,465			2,019														St. Johnsbury	Operations and Loan Center
	Retained Earnings																				364 Railroad Street		802.748.3131
			87,136			80,617															Branch
	Accumulated Other Comprehensive Loss		(36,251)			(28,399)															325 Portland Street		802.748.3121
																				Stowe	47 Park Street		802.253.6600
																				Williston	Branch
	Treasury Stock at Cost		(4,265)			(4,231)															31 Market St		802.878.7900
																					Loan Center
	Total Liabilities & Shareholders' Equity		$	1,334,744		$	1,191,913														31 Market St		802.865.1000
	Standby letters of credit were $1,592,000 and $1,805,000 at June 30, 2023 and 2022, 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	Aug. 03, 2023
Document Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Aug. 03, 2023
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