EX-99.1 2 exhibit9913rdqtr2023shrepo.htm EXHIBIT 99.1 Document

Exhibit 99.1
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November 2, 2023
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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.
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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
ASSETSSept 30, 2023Sept 30, 2022Sept 30, 2023Sept 30, 2022Sept 30, 2023Sept 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 Expense5,699 1,023 12,953 2,519 Nancy C. Putnam
Federal Funds Sold & Overnight Deposits17,143 28,080 Gregory D. Sargent
Net Interest Income9,148 10,440 28,741 29,074 David S. Silverman
Interest Bearing Deposits in Banks14,436 14,441 Janet P. Spitler
Credit Loss Benefit(139)— (161)— 
Investment Securities250,337 241,255 Net Interest Income After
Credit Loss Benefit		9,287 10,440 28,902 29,074 Union BankREGIONAL
ADVISORY BOARD
MEMBERS
Loans Held for Sale6,452 3,143 
Wealth Management Income244 203 695 629 
DIRECTORS
Loans, net1,023,283 939,352 Noninterest Income2,223 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 & Wages3,720 3,575 10,895 10,505 Dawn D. Bugbee
Stanley T. Fillion - Northern NH
Premises and Equipment, net20,365 20,718 Mary K. Parent
Rosemary H. Gingue - St. Johnsbury
Employee Benefits1,217 1,154 4,065 3,754 Nancy C. Putnam
John M. Goodrich - Northern NH
Accrued Interest & Other Assets66,320 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, net459 448 1,519 1,437 Janet P. Spitler
Justin P. Lavely - St. Johnsbury
Daniel J. Luneau - St. Albans
Equipment Expense935 948 2,714 2,798 
Samuel H. Ruggiano - St. Albans
Christine A. Sheley - Northern NH
David S. Silverman - All
LIABILITIES & SHAREHOLDERS' EQUITYSept 30, 2023Sept 30, 2022Other Expenses2,595 2,314 7,546 6,643 
Union Bank Offices
(ATMs at all Branch Locations)
Total8,926 8,439 26,739 25,137 
Noninterest Bearing Deposits$229,101 $337,513 
Income Before Taxes2,828 4,541 9,398 10,986 VERMONT
Interest Bearing Deposits707,872 722,208 
Berlin1028 US Route 302802.476.0061
Time Deposits285,315 136,691 Income Tax Expense296 783 1,190 1,815 FairfaxJct. Routes 104 & 128802.849.2600
Hardwick103 VT Route 15 West802.472.8100
Borrowed Funds90,696 25,000 Net income$2,532 $3,758 $8,208 $9,171 Jeffersonville5062 VT Route 15802.644.6600
Jericho368 VT Route 15802.899.7500
Subordinated Notes16,230 16,196 Earnings Per Share$0.56 $0.84 $1.82 $2.04 Johnson198 Lower Main Street802.635.6600
Lyndonville183 Depot Street802.626.3100
Accrued Interest & Other Liabilities17,168 12,954 Book Value Per Share$10.92 $11.06 Morrisville20 Lower Main Street802.888.6600
65 Northgate Plaza802.888.6860
Common Stock9,969 9,941 Shelburne5068 Shelburne Road802.985.0250
St. Albans15 Mapleville Depot802.524.9000
Additional Paid-in Capital2,607 2,150 St. JohnsburyOperations and Loan Center
Retained Earnings364 Railroad Street802.748.3131
88,045 82,801 Branch
Accumulated Other
Comprehensive Loss		(47,063)(40,938)325 Portland Street802.748.3121
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Stowe47 Park Street802.253.6600
WillistonBranch
Treasury Stock at Cost(4,312)(4,226)31 Market St802.878.7900
Loan Center
Total Liabilities & Shareholders' Equity$1,395,628 $1,300,290 31 Market St802.865.1000
Standby letters of credit were $1,532,000 and $1,729,000 at September 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 Conway120 North-South Road603.356.4010