FALSE000070686300007068632024-08-012024-08-01

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 1, 2024

(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)
VT001-1598503-0283552
(Address of principal executive offices)(Zip Code)
20 Lower Main St., P.O. Box 66705661-0667
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 valueUNBNasdaq 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 1, 2024, Union Bankshares, Inc (the "Company") distributed its Second Quarter 2024 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, 2024 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 2024 Report to Shareholders distributed August 1, 2024 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 1, 2024/s/ David S. Silverman
David S. Silverman
President/Chief Executive Officer
August 1, 2024/s/ Karyn J. Hale
Karyn J. Hale
Chief Financial Officer

EXHIBIT INDEX
Union Bankshares, Inc. Second Quarter 2024 Report to Shareholders distributed August 1, 2024.


Exhibit 99.1
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August 1, 2024
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Union Bankshares, Inc. reported its second quarter earnings in a press release on July 17, 2024. Consolidated net income for the three months ended June 30, 2024 was $2.0 million, or $0.45 per share, compared to $2.7 million, or $0.60 per share, for the same period in 2023, and $4.4 million, or $0.98 per share, for the six months ended June 30, 2024, compared to $5.7 million, or $1.26 per share for the same period in 2023. More detailed financial information will be available in our upcoming quarterly filings.
Earnings are generally in line with expectations from the beginning of the year. We had hoped for some relief on the funding side of the balance sheet; however, the Federal Reserve has held rates higher for longer as well as continued to shrink its balance sheet and reduce liquidity in the economy which has caused funding costs to be persistently higher than expected, negatively impacting earnings. Though “The Fed” may begin a rate reduction cycle later this year, we do not expect this will materially improve our cost of funds until 2025. The rapid steep increase in short-term interest rates initiated as an inflation fighting tool by the Federal Reserve has been unkind to the community banking industry.
There are some bright spots to report. Loan asset quality continues to be very strong with delinquency metrics being unusually low. We are paying close attention to consumer behavior due to reports that credit card debt is at all-time highs and auto portfolios are seeing increased delinquencies nationally. We are not seeing weakness in our 1-4 family residential portfolio and have negligible amounts of consumer loans and no consumer credit card exposure. We have thoroughly reviewed our exposure to commercial real estate and the types of exposure we have are in sound industries with almost no office exposure. We do have
significant investments in multifamily residential loans, but the low vacancy rates in our markets make this exposure low risk. Finally, we have very solid pipelines of both residential and commercial real estate loans, which is somewhat atypical among our peers. Our challenge is less finding attractive loan opportunities than funding this demand.
Parts of Vermont and New Hampshire sustained heaving rains and flooding similar to the flooding that occurred a year ago to the day last summer. While this year’s event was less devastating than last year’s, it still inflicted major damage to homes, businesses, roads, and bridges. Families, businesses, and municipalities are still assessing the damage while working to cure the most immediate issues such as safety and access to homes and roads. At this point we are working with impacted customers and do not expect a material impact to our financial institution.
The local economy continues to be strong. Travel and tourism remain solid, though cooled a bit from the peak post pandemic, “return to travel” binge, coupled with a return to foreign travel. The unemployment rate in our markets remains at record lows, and available for sale residential home inventory continues to be a major challenge for home buyers. We are hopeful that rate relief in the future will enable new home buyers to find homes while increasing the volume of home financing opportunities.
The Board of Directors declared a cash dividend of $0.36 per share for the quarter payable August 1, 2024, to shareholders of record as of July 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
ASSETSJune 30, 2024June 30, 2023June 30, 2024June 30, 2023June 30, 2024June 30, 2023
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$4,490 $4,351 Interest Income$16,552 $13,803 $32,173 $26,847 
Mary K. Parent
Kristy Adams Alfieri - Assistant Secretary
Interest Expense7,068 4,185 13,681 7,254 Nancy C. Putnam
Federal Funds Sold & Overnight Deposits26,017 31,452 Gregory D. Sargent
Net Interest Income9,484 9,618 18,492 19,593 David S. Silverman
Interest Bearing Deposits in Banks13,943 15,183 Janet P. Spitler
Credit Loss Expense (Benefit)388 (96)158 (22)
Investment Securities254,177 268,915 Net Interest Income After
Credit Loss Expense (Benefit)		9,096 9,714 18,334 19,615 Union BankREGIONAL
ADVISORY BOARD
MEMBERS
Loans Held for Sale6,224 3,145 
Wealth Management Income273 240 528 451 
DIRECTORS
Loans, net1,007,920 937,092 Noninterest Income2,492 2,243 4,804 4,317 
Neil J. Van Dyke - Chair
Michael R. Barrett - St. Johnsbury
Timothy W. Sargent - Vice Chair
Steven J. Bourgeois - St. Albans
Allowance for Credit Losses(6,893)(6,780)Noninterest Expenses:Joel S. Bourassa
Andrew A. Dean - Northern NH
Salaries & Wages3,774 3,673 7,327 7,175 Dawn D. Bugbee
Stanley T. Fillion - Northern NH
Premises and Equipment, net20,646 20,054 Mary K. Parent
Rosemary H. Gingue - St. Johnsbury
Employee Benefits1,631 1,471 3,120 2,848 Nancy C. Putnam
John M. Goodrich - Northern NH
Accrued Interest & Other Assets71,922 61,332 Gregory D. Sargent
Christopher M. Knapp - Northern NH
David S. Silverman
Coleen K. Kohaut - St. Albans
Total Assets$1,398,446 $1,334,744 Occupancy Expense, net544 482 1,113 1,060 Janet P. Spitler
Justin P. Lavely - St. Johnsbury
Daniel J. Luneau - St. Albans
Equipment Expense1,017 882 1,960 1,779 
Samuel H. Ruggiano - St. Albans
Christine A. Sheley - Northern NH
David S. Silverman - All
LIABILITIES & SHAREHOLDERS' EQUITYJune 30, 2024June 30, 2023Other Expenses2,815 2,555 5,484 4,951 
Union Bank Offices
(ATMs at all Branch Locations)
Total9,781 9,063 19,004 17,813 
Noninterest Bearing Deposits$222,928 $238,636 
Income Before Taxes2,080 3,134 4,662 6,570 VERMONT
Interest Bearing Deposits558,658 633,019 
Berlin1028 US Route 302802.476.0061
Time Deposits271,722 252,031 Income Tax Expense61 435 226 894 FairfaxJct. Routes 104 & 128802.849.2600
Hardwick103 VT Route 15 West802.472.8100
Borrowed Funds247,096 120,549 Net income$2,019 $2,699 $4,436 $5,676 Jeffersonville5062 VT Route 15802.644.6600
Jericho368 VT Route 15802.899.7500
Subordinated Notes16,256 16,222 Earnings Per Share$0.45 $0.60 $0.98 $1.26 Johnson198 Lower Main Street802.635.6600
Lyndonville183 Depot Street802.626.3100
Accrued Interest & Other Liabilities17,740 15,233 Book Value Per Share$14.16 $13.10 Morrisville20 Lower Main Street802.888.6600
65 Northgate Plaza802.888.6860
Common Stock9,999 9,969 Shelburne5068 Shelburne Road802.985.0227
St. Albans15 Mapleville Depot802.524.9000
Additional Paid-in Capital2,928 2,465 St. JohnsburyOperations and Loan Center
Retained Earnings364 Railroad Street802.748.3131
90,654 87,136 Branch
Accumulated Other
Comprehensive Loss		(35,223)(36,251)325 Portland Street802.748.3121
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Stowe47 Park Street802.253.6600
WillistonBranch
Treasury Stock at Cost(4,312)(4,265)31 Market St802.878.7900
Loan Center
Total Liabilities & Shareholders' Equity$1,398,446 $1,334,744 31 Market St802.865.1000
Standby letters of credit were $1,629,000 and $1,592,000 at June 30, 2024 and 2023, 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

v3.24.2.u1
Cover
Aug. 01, 2024
Document Information [Line Items]  
Document Type 8-K
Amendment Flag false
Document Period End Date Aug. 01, 2024
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
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