EX-99.1 2 exhibit9912ndqtr2023shrepo.htm EXHIBIT 99.1 Document

Exhibit 99.1
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August 3, 2023
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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.
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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:
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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
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Neil J. Van Dyke
Chair
David S. Silverman
President & Chief Executive Officer
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About Union 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
ASSETSJune 30, 2023June 30, 2022June 30, 2023June 30, 2022June 30, 2023June 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 Deposits31,452 20,885 Interest Expense4,185 733 7,254 1,496 Gregory D. Sargent
Net Interest Income9,618 9,671 19,593 18,634 David S. Silverman
Interest Bearing Deposits in Banks15,183 13,943 Janet P. Spitler
Credit Loss Benefit(96)— (22)— 
Investment Securities268,915 262,827 Net Interest Income After
Credit Loss Benefit		9,714 9,671 19,615 18,634 Union BankREGIONAL
ADVISORY BOARD
MEMBERS
Loans Held for Sale3,145 3,820 
Wealth Management Income240 217 451 426 
DIRECTORS
Loans, net937,092 819,146 Noninterest Income2,243 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 & Wages3,673 3,520 7,175 6,930 Dawn D. Bugbee
Stanley T. Fillion - Northern NH
Premises and Equipment, net20,054 20,983 Mary K. Parent
Rosemary H. Gingue - St. Johnsbury
Employee Benefits1,471 1,295 2,848 2,600 Nancy C. Putnam
John M. Goodrich - Northern NH
Accrued Interest & other Assets61,332 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, net482 462 1,060 989 Janet P. Spitler
Justin P. Lavely - St. Johnsbury
Daniel J. Luneau - St. Albans
Equipment Expense882 934 1,779 1,850 
Samuel H. Ruggiano - St. Albans
Christine A. Sheley - Northern NH
David S. Silverman - All
LIABILITIES & SHAREHOLDERS' EQUITYJune 30, 2023June 30, 2022Other Expenses2,555 2,199 4,951 4,330 
Union Bank Offices
(ATMs at all Branch Locations)
Total9,063 8,410 17,813 16,699 
Noninterest Bearing Deposits$238,636 $337,140 
Income Before Taxes3,134 3,541 6,570 6,445 VERMONT
Interest Bearing Deposits633,019 662,778 
Berlin1028 US Route 302802.476.0061
Time Deposits252,031 103,135 Income Tax Expense435 610 894 1,032 FairfaxJct. Routes 104 & 128802.849.2600
Hardwick103 VT Route 15 West802.472.8100
Borrowed Funds120,549 — Net income$2,699 $2,931 $5,676 $5,413 Jeffersonville5062 VT Route 15802.644.6600
Jericho368 VT Route 15802.899.7500
Subordinated Notes16,222 16,188 Earnings per share$0.60 $0.65 $1.26 $1.20 Johnson198 Lower Main Street802.635.6600
Lyndonville183 Depot Street802.626.3100
Accrued Interest & Other Liabilities15,233 12,726 Book Value Per Share$13.10 $13.34 Morrisville20 Lower Main Street802.888.6600
65 Northgate Plaza802.888.6860
Common Stock9,969 9,940 Shelburne5068 Shelburne Road802.985.0250
St. Albans15 Mapleville Depot802.524.9000
Additional Paid-in Capital2,465 2,019 St. JohnsburyOperations and Loan Center
Retained Earnings364 Railroad Street802.748.3131
87,136 80,617 Branch
Accumulated Other
Comprehensive Loss		(36,251)(28,399)325 Portland Street802.748.3121
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Stowe47 Park Street802.253.6600
WillistonBranch
Treasury Stock at Cost(4,265)(4,231)31 Market St802.878.7900
Loan Center
Total Liabilities & Shareholders' Equity$1,334,744 $1,191,913 31 Market St802.865.1000
Standby letters of credit were $1,592,000 and $1,805,000 at June 30, 2023 and 2022, respectively.NEW HAMPSHIRE
Groveton3 State Street603.636.1611
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Littleton263 Dells Road603.444.7136
76 Main Street603.444.5321
Lincoln135 Main Street603.745.4000
North ConwayCommercial Loan Center
2541 White Mountain Hwy603.662.9408