EX-99.1 2 exhibit9914thqtr2023shrepo.htm EXHIBIT 99.1 Document

Exhibit 99.1
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February 1, 2024
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We are pleased to provide you with information about our 2023 earnings and financial position at year end, a quarterly dividend declaration, and related information about Union Bankshares, Inc. Consolidated net income for the three months ended December 31, 2023, was $3.0 million, or $0.68 per share, compared to $3.4 million, or $0.77 cents per share, for the same period in 2022, and $11.3 million, or $2.50 per share, for the year ended December 31, 2023, compared to $12.6 million, or $2.81 per share for the year ended December 31, 2022.
Total assets were $1.5 billion as of December 31, 2023, compared to $1.3 billion as of December 31, 2022, an increase of $132.4 million, or 9.9%. Asset growth was driven by loan growth, with total loans outstanding as of December 31, 2023, at $1.0 billion, compared to $961.7 million as of December 31, 2022. Asset quality remains strong as total net charge-offs for the year ended December 31, 2023, were $4 thousand and past due loans remain very low.
Union Bankshares, Inc. had total equity capital of $65.8 million and a book value per share of $14.56 as of December 31, 2023, compared to $55.2 million and a book value of $12.25 per share as of December 31, 2022. The increase in total capital was attributable to net income of $11.3 million for 2023 and a decrease in the accumulated other comprehensive loss of $5.5 million as it relates to unrealized losses in the investment portfolio, partially offset by $6.5 million in dividends paid to shareholders.
Consolidated net income decreased $1.4 million, or 10.8%, to $11.3 million for the year ended December 31, 2023, compared $12.6 million for the year ended December 31, 2022, due to a decrease in net interest income of $1.6 million and an increase in noninterest expenses of $1.7 million.
The banking industry has experienced volatility during 2023 with concerns related to liquidity, deposit outflows,unrealized securities losses, and
interest rates. Union Bank, like others, has experienced earnings pressure due to the prolonged and steep yield curve inversion. Decreases in net income were primarily driven by changes in interest rates between periods resulting in a significant impact on the Company’s funding costs due to customer expectation of higher rates on deposit accounts and increased utilization of wholesale funding. The Company continues to focus on optimization of the net interest margin, maintaining strong asset quality, and increasing market share within our footprint. The company’s financial position remains strong, supported by a diverse deposit base, a strong liquidity position, excellent asset quality, and regulatory capital considered to be “well capitalized”.
During 2023 we completed an important Information Technology initiative, converting our core computing from on-site hosting to cloud-based hosting. This will allow us to avoid future computer hardware investments and allow our IT staff to focus on customer-facing initiatives. In addition, we opened a long planned full-service branch in North Conway, New Hampshire to serve the Mount Washington Valley Region. Since opening a loan production office in North Conway in 2019 we have generated approximately $150 million in commercial loans in the region. We look forward to serving the loan and deposit needs of this active market. Both initiatives are important investments in Union Bankshares’ future.
The Board of Directors is pleased to inform you that a cash dividend of $0.36 per share has been declared for the quarter payable February 1, 2024, to shareholders of record as of January 27, 2024.
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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 19 banking offices, 2 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
ASSETSDEC 31, 2023DEC 31, 2022DEC 31, 2023DEC 31, 2022DEC 31, 2023DEC 31, 2022
Timothy W. Sargent - Vice Chair
David S. Silverman - President & CEO
Joel S. Bourassa
Karyn J. Hale - Chief Financial Officer
(3 months ended)(12 months ended)
Dawn D. Bugbee
Timothy W. Sargent - Secretary
Cash and Due from Banks$4,429 $4,504 Interest Income$15,416 $12,355 $57,110 $43,948 
Mary K. Parent
Kristy Adams Alfieri - Assistant Secretary
Interest Expense6,314 2,005 19,267 4,524 Nancy C. Putnam
Federal Funds Sold & Overnight Deposits73,237 33,381 Gregory D. Sargent
Net Interest Income9,102 10,350 37,843 39,424 David S. Silverman
Interest Bearing Deposits in Banks14,690 16,428 Janet P. Spitler
Credit Loss Benefit(338)— (499)— 
Investment Securities265,883 251,531 Net Interest Income After
Credit Loss Benefit		9,440 10,350 38,342 39,424 Union BankREGIONAL
ADVISORY BOARD
MEMBERS
Loans Held for Sale3,070 1,178 
Wealth Management Income248 209 943 838 
DIRECTORS
Loans, net1,030,022 959,493 Noninterest Income2,421 2,195 8,961 8,615 
Neil J. Van Dyke - Chair
Michael R. Barrett - St. Johnsbury
Timothy W. Sargent - Vice Chair
Steven J. Bourgeois - St. Albans
Allowance for Credit Losses(6,566)(8,339)Noninterest Expenses:Joel S. Bourassa
Andrew A. Dean - Northern NH
Salaries & Wages3,352 3,578 14,247 14,083 Dawn D. Bugbee
Stanley T. Fillion - Northern NH
Premises and Equipment, net20,771 20,479 Mary K. Parent
Rosemary H. Gingue - St. Johnsbury
Employee Benefits1,296 1,276 5,361 5,030 Nancy C. Putnam
John M. Goodrich - Northern NH
Accrued Interest & Other Assets63,352 57,834 Gregory D. Sargent
Christopher M. Knapp - Northern NH
David S. Silverman
Coleen K. Kohaut - St. Albans
Total Assets$1,468,888 $1,336,489 Occupancy Expense, net516 476 2,035 1,913 Janet P. Spitler
Justin P. Lavely - St. Johnsbury
Daniel J. Luneau - St. Albans
Equipment Expense1,008 894 3,722 3,692 
Samuel H. Ruggiano - St. Albans
Christine A. Sheley - Northern NH
David S. Silverman - All
LIABILITIES & SHAREHOLDERS' EQUITYDEC 31, 2023DEC 31, 2022Other Expenses2,458 2,269 10,004 8,912 
Union Bank Offices
(ATMs at all Branch Locations)
Total8,630 8,493 35,369 33,630 
Noninterest Bearing Deposits$250,992 $286,145 
Income Before Taxes3,479 4,261 12,877 15,247 VERMONT
Interest Bearing Deposits765,689 762,722 
Berlin1028 US Route 302802.476.0061
Time Deposits288,922 153,045 Income Tax Expense430 817 1,620 2,632 FairfaxJct. Routes 104 & 128802.849.2600
Hardwick103 VT Route 15 West802.472.8100
Borrowed Funds65,696 50,000 Net income$3,049 $3,444 $11,257 $12,615 Jeffersonville5062 VT Route 15802.644.6600
Jericho368 VT Route 15802.899.7500
Subordinated Notes16,239 16,205 Earnings Per Share$0.68 $0.77 $2.50 $2.81 Johnson198 Lower Main Street802.635.6600
Lyndonville183 Depot Street802.626.3100
Accrued Interest & Other Liabilities15,543 13,152 Book Value Per Share$14.56 $12.25 Morrisville20 Lower Main Street802.888.6600
65 Northgate Plaza802.888.6860
Common Stock9,991 9,965 Shelburne5068 Shelburne Road802.985.0227
St. Albans15 Mapleville Depot802.524.9000
Additional Paid-in Capital2,621 2,225 St. JohnsburyOperations and Loan Center
Retained Earnings364 Railroad Street802.748.3131
89,472 84,669 Branch
Accumulated Other
Comprehensive Loss		(31,955)(37,419)325 Portland Street802.748.3121
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Stowe47 Park Street802.253.6600
WillistonBranch
Treasury Stock at Cost(4,322)(4,220)31 Market St802.878.7900
Loan Center
Total Liabilities & Shareholders' Equity$1,468,888 $1,336,489 31 Market St802.865.1000
Standby letters of credit were $1,557,000 and $1,762,000 at December 31, 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