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): November 2, 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 November 2, 2023, Union Bankshares, Inc (the "Company") distributed its Third 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 nine months ended September 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. Third Quarter 2023 Report to Shareholders distributed November 2, 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.
November 2, 2023	/s/ David S. Silverman
	David S. Silverman
	President/Chief Executive Officer
November 2, 2023	/s/ Karyn J. Hale
	Karyn J. Hale
	Chief Financial Officer

EXHIBIT INDEX

Exhibit 99.1 Union Bankshares, Inc. Third Quarter 2023 Report to Shareholders distributed November 2, 2023.

EX-99.1

Exhibit 99.1

			November 2, 2023
			We are pleased to inform you of Union Bankshares, Inc’s financial results for the third quarter of 2023. Consolidated net income for the three months ended September 30, 2023, was $2.5 million, or $0.56 per share, compared to $3.8 million, or $0.84 cents per share, for the same period in 2022, and $8.2 million, or $1.82 per share, for the nine months ended September 30, 2023, compared to $9.2 million, or $2.04 per share for the same period in 2022. Total assets were $1.4 billion as of September 30, 2023, compared to $1.3 billion as of September 30, 2022, an increase of $95.3 million, or 7.3%. Asset growth was primarily driven by loans. Total loans outstanding as of September 30, 2023, were $1.0 billion, which included $6.5 million in loans held for sale, compared to $942.5 million as of September 30, 2022, with $3.1 million in loans held for sale. Total deposits were $1.22 billion as of September 30, 2023, and include $153.0 million of purchased brokered deposits compared to deposits of $1.20 billion as of September 30, 2022, with $32.0 million of purchased deposits. Also, advances from the Federal Home Loan Bank totaling $90.7 million were outstanding as of September 30, 2023, compared to $25.0 million outstanding as of September 30, 2022. Third quarter and year-to-date results were impacted by a challenging interest rate environment where sharp increases in short-term rates of over 5% have driven funding costs higher. The Company has had to respond to customer expectations of higher rates on deposit accounts while being burdened by increased costs of wholesale funding required due to the industry-wide outflow of deposits as customers have spent or re-allocated excess liquidity they had been holding in the bank. The Company continues to focus on gathering deposits, optimization of the net interest margin, and maintaining strong asset quality. The Company’s financial position remains strong, supported by a diverse deposit base, a strong		liquidity position, excellent asset quality, and regulatory capital in excess of all required levels. As was previously reported, the bank’s Jeffersonville and Johnson branch offices suffered flood damage during extreme weather in July of this year. The Jeffersonville branch has been completely restored and is operational while we are choosing to take this opportunity to upgrade the Johnson facility to improve customer access, as well as operational and energy efficiency. While customers and our community have lingering impacts from the extensive flooding, the Company has not suffered material financial impacts. Some Vermont communities, notably our capital city Montpelier, will require years to fully recover. The bank opened a commercial loan production office in North Conway, New Hampshire in 2019. Since that time, we have originated approximately $115 million in commercial loans in the White Mountain Valley region. This success has encouraged management to develop a full-service banking office to support the loan origination side of the business with deposit services. We will be opening a new full-service bank branch located on the North-South Road in North Conway towards the end of October 2023. Management and the Board are excited by the possibilities the new office brings. We view the North Conway branch and other recent branch expansions as investments in the future of your company The Board of Directors declared a cash dividend of $0.36 per share for the quarter payable November 2, 2023, to shareholders of record as of October 28, 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	Sept 30, 2023			Sept 30, 2022			Sept 30, 2023			Sept 30, 2022			Sept 30, 2023			Sept 30, 2022			Timothy W. Sargent - Vice Chair		David S. Silverman - President & CEO
																				Joel S. Bourassa		Karyn J. Hale - Chief Financial Officer
									(3 months ended)						(9 months ended)
																				Dawn D. Bugbee		Timothy W. Sargent - Secretary
	Cash and Due from Banks		$	4,187		$	4,061	Interest Income	$	14,847		$	11,463		$	41,694		$	31,593
																				Mary K. Parent		Kristy Adams Alfieri - Assistant Secretary
								Interest Expense	5,699			1,023			12,953			2,519		Nancy C. Putnam
	Federal Funds Sold & Overnight Deposits		17,143			28,080														Gregory D. Sargent
								Net Interest Income	9,148			10,440			28,741			29,074		David S. Silverman
	Interest Bearing Deposits in Banks		14,436			14,441														Janet P. Spitler
								Credit Loss Benefit	(139)			—			(161)			—
	Investment Securities		250,337			241,255		Net Interest Income After Credit Loss Benefit	9,287			10,440			28,902			29,074		Union Bank		REGIONAL ADVISORY BOARD MEMBERS
	Loans Held for Sale		6,452			3,143
								Wealth Management Income	244			203			695			629		DIRECTORS
	Loans, net		1,023,283			939,352		Noninterest Income	2,223			2,337			6,540			6,420		Neil J. Van Dyke - Chair		Michael R. Barrett - St. Johnsbury
																				Timothy W. Sargent - Vice Chair		Steven J. Bourgeois - St. Albans
	Allowance for Credit Losses		(6,895)			(8,340)		Noninterest Expenses:												Joel S. Bourassa		Andrew A. Dean - Northern NH
								Salaries & Wages	3,720			3,575			10,895			10,505		Dawn D. Bugbee		Stanley T. Fillion - Northern NH
	Premises and Equipment, net		20,365			20,718														Mary K. Parent		Rosemary H. Gingue - St. Johnsbury
								Employee Benefits	1,217			1,154			4,065			3,754		Nancy C. Putnam		John M. Goodrich - Northern NH
	Accrued Interest & Other Assets		66,320			57,580														Gregory D. Sargent		Christopher M. Knapp - Northern NH
																				David S. Silverman		Coleen K. Kohaut - St. Albans
	Total Assets		$	1,395,628		$	1,300,290	Occupancy Expense, net	459			448			1,519			1,437		Janet P. Spitler		Justin P. Lavely - St. Johnsbury
																						Daniel J. Luneau - St. Albans
								Equipment Expense	935			948			2,714			2,798				Samuel H. Ruggiano - St. Albans
																						Christine A. Sheley - Northern NH
																						David S. Silverman - All
	LIABILITIES & SHAREHOLDERS' EQUITY	Sept 30, 2023			Sept 30, 2022			Other Expenses	2,595			2,314			7,546			6,643
																				Union Bank Offices (ATMs at all Branch Locations)
								Total	8,926			8,439			26,739			25,137
	Noninterest Bearing Deposits		$	229,101		$	337,513
								Income Before Taxes	2,828			4,541			9,398			10,986		VERMONT
	Interest Bearing Deposits		707,872			722,208
																				Berlin	1028 US Route 302		802.476.0061
	Time Deposits		285,315			136,691		Income Tax Expense	296			783			1,190			1,815		Fairfax	Jct. Routes 104 & 128		802.849.2600
																				Hardwick	103 VT Route 15 West		802.472.8100
	Borrowed Funds		90,696			25,000		Net income	$	2,532		$	3,758		$	8,208		$	9,171	Jeffersonville	5062 VT Route 15		802.644.6600
																				Jericho	368 VT Route 15		802.899.7500
	Subordinated Notes		16,230			16,196		Earnings Per Share	$	0.56		$	0.84		$	1.82		$	2.04	Johnson	198 Lower Main Street		802.635.6600
																				Lyndonville	183 Depot Street		802.626.3100
	Accrued Interest & Other Liabilities		17,168			12,954		Book Value Per Share							$	10.92		$	11.06	Morrisville	20 Lower Main Street		802.888.6600
																					65 Northgate Plaza		802.888.6860
	Common Stock		9,969			9,941														Shelburne	5068 Shelburne Road		802.985.0250
																				St. Albans	15 Mapleville Depot		802.524.9000
	Additional Paid-in Capital		2,607			2,150														St. Johnsbury	Operations and Loan Center
	Retained Earnings																				364 Railroad Street		802.748.3131
			88,045			82,801															Branch
	Accumulated Other Comprehensive Loss		(47,063)			(40,938)															325 Portland Street		802.748.3121
																				Stowe	47 Park Street		802.253.6600
																				Williston	Branch
	Treasury Stock at Cost		(4,312)			(4,226)															31 Market St		802.878.7900
																					Loan Center
	Total Liabilities & Shareholders' Equity		$	1,395,628		$	1,300,290														31 Market St		802.865.1000
	Standby letters of credit were $1,532,000 and $1,729,000 at September 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	120 North-South Road		603.356.4010

XML

Cover	Nov. 02, 2023
Document Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Nov. 02, 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