# EDGAR Filing Document

**Accession Number:** 0000706863
**File Stem:** 0000706863-23-000002
**Filing Date:** 2023-1
**Character Count:** 17764
**Document Hash:** d8588da5f7e0c1dce3c2aa376274ecac
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000706863-23-000002.hdr.sgml**: 20230118

**ACCESSION NUMBER**: 0000706863-23-000002

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230118

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230118

**DATE AS OF CHANGE**: 20230118

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** UNION BANKSHARES INC
- **CENTRAL INDEX KEY:** 0000706863
- **STANDARD INDUSTRIAL CLASSIFICATION:** STATE COMMERCIAL BANKS [6022]
- **IRS NUMBER:** 030283552
- **STATE OF INCORPORATION:** VT
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-15985
- **FILM NUMBER:** 23534530

**BUSINESS ADDRESS:**
- **STREET 1:** P O BOX 667
- **STREET 2:** 20 MAIN STREET
- **CITY:** MORRISVILLE
- **STATE:** VT
- **ZIP:** 05661-0667
- **BUSINESS PHONE:** 8028886600

**MAIL ADDRESS:**
- **STREET 1:** P O BOX 667
- **STREET 2:** 20 MAIN STREET
- **CITY:** MORRISVILLE
- **STATE:** VT
- **ZIP:** 05661-0667

?xml version="1.0" ? unb-20230118

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): January 18, 2023

(Exact name of registrant as specified in its charter)

UNION BANKSHARES, INC.

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| | | | |
|:---|:---|:---|:---|
| (State or other jurisdiction | | (Commission | (IRS Employer |
| of incorporation) | | File Number) | Identification Number) |
| VT | | 001-15985 | 03-0283552 |
| (Address of principal executive offices) | (Address of principal executive offices) | (Address of principal executive offices) | (Zip Code) |
| 20 Lower Main St., P.O. Box 667 | 20 Lower Main St., P.O. Box 667 | 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:

☐&nbsp;&nbsp;&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐&nbsp;&nbsp;&nbsp;&nbsp;Soliciting materials pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐&nbsp;&nbsp;&nbsp;&nbsp;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:

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| | | |
|:---|:---|:---|
| <u>Common Stock, $2.00 par value</u> | <u>UNB</u> | <u>Nasdaq Stock Market</u> |
| (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. ☐

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**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 Exhibit 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.&nbsp;&nbsp;&nbsp;&nbsp;

On January 18, 2023, Union Bankshares, Inc. issued a press release, a copy of which is furnished with this Form 8-K as Exhibit 99.1, announcing net income and net income per share for the fourth quarter and year ended December 31, 2022, as well as the declaration of a regular quarterly cash dividend.

**Item 8.01. Other Events**

a)<u>Declaration of Regular Quarterly Cash Dividend</u>

On January 18, 2023 the Board of Directors of Union Bankshares, Inc. declared a $0.01, or 2.9%, increase in the quarterly cash dividend from $0.35 per share to $0.36 per share. The dividend is payable on February 2, 2023 to shareholders of record as of January 28, 2023.

b)<u>Reauthorization of Limited Quarterly Stock Repurchase Program</u>

On January 18, 2023, the Board of Directors of Union Bankshares, Inc. reauthorized a limited stock repurchase program, initially authorized in May, 2010 and reauthorized for each calendar year from 2012 through 2022, pursuant to which the Company may repurchase up to 2,500 shares of its common stock (subject to standard anti-dilution adjustments) each calendar quarter in open market purchases or privately negotiated transactions, as management may deem advisable and as market conditions may warrant. The repurchase authorization for a calendar quarter expires at the end of that quarter to the extent it has not been exercised, and is not carried forward into future quarters. The limited quarterly authorization is not intended to be the exclusive means for effecting stock repurchases. As reauthorized, the quarterly repurchase program will expire on December 31, 2023.

**Item 9.01. Financial Statements and Exhibits**

(d) Exhibits

The following Exhibit, referred to in Item 2.02 of the Report is furnished, not filed; herewith:

Exhibit 99.1&nbsp;&nbsp;&nbsp;&nbsp;Union Bankshares, Inc. Press Release dated January 18, 2023, announcing a regular quarterly dividend and fourth quarter and year ended December 31, 2022 net income and net income per share.

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**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. |
| January 18, 2023 | /s/ David S. Silverman |
| | David S. Silverman |
| | Chief Executive Officer |
| January 18, 2023 | /s/ Karyn J. Hale |
| | Karyn J. Hale |
| | Chief Financial Officer |

---

**EXHIBIT INDEX**

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| | |
|:---|:---|
| [99.1](exhibit9914thqtr2022earnin.htm) | Union Bankshares, Inc. Press Release dated January 18, 2023, announcing a regular quarterly dividend and fourth quarter and year ended December 31, 2022 net income and net income per share. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

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## Exhibit 99.1

Exhibit 99.1

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| | |
|:---|:---|
| ![unionbankshareslogonewa23.jpg](unionbankshareslogonewa23.jpg) | **For Immediate Release**<br>**Contact:** David S. Silverman<br>(802) 888-6600 |

---

**Union Bankshares Announces Earnings for the three months and year ended December 31, 2022** 

**and Declares Quarterly Dividend**

***Morrisville, VT January 18, 2023*** - Union Bankshares, Inc. (NASDAQ - UNB) today announced results for the three months and year ended December 31, 2022. Net income was $3.4 million and $12.6 million for the three months and year ended December 31, 2022 resulting in earnings per share of $0.77 and $2.81 for the same periods, respectively.

The Board of Directors also declared a cash dividend of $0.36 per share for the quarter, an increase of 2.9% from the cash dividend of $0.35 paid in recent prior quarters, payable February 2, 2023 to shareholders of record as of January 28, 2023.

**Fourth Quarter Highlights**

Consolidated net income increased $66 thousand, or 2.0%, to $3.4 million for the fourth quarter of 2022 compared to the fourth quarter of 2021 due to an increase in net interest income of $1.1 million and a decrease in noninterest expenses of $76 thousand, partially offset by a decrease in noninterest income of $702 thousand and an increase in income tax expense of $189 thousand. Also, a credit of $225 thousand was recorded for the provision for loan losses for the fourth quarter of 2021, which represented the reversal of the provision recorded during the first half of 2021. No provision for loan losses was recorded for the three and twelve months ended December 31, 2022.

Interest income increased $2.3 million to $12.4 million for the three months ended December 31, 2022 compared to $10.0 million for the three months ended December 31, 2021 due to the larger earning asset base coupled with upward movement in interest rates. Interest expense increased $1.2 million to $2.0 million for the three months ended December 31, 2022 compared to $779 thousand for the three months ended December 31, 2021 due to an increase in rates paid on customer deposits, the utilization of wholesale funding which is at a higher cost and the larger funding base. These changes resulted in net interest income $10.4 million for the three months ended December 31, 2022 compared to $9.2 million for the three months ended December 31, 2021, an increase of $1.1 million, or 12.0%.

The decrease in noninterest income was primarily related to a decrease in the gain on sale of residential loans of $726 thousand for the comparison period. Loan sales were $17.8 million for the three months ended December 31, 2022 compared to sales of $52.6 million for the same period in 2021.

Noninterest expenses were $8.4 million for the three months ended December 31, 2022 compared to $8.5 million for the same period in 2021, a decrease of $76 thousand, or 0.9%. The decrease during the comparison periods was primarily due to a decrease of $316 thousand, or 8.1%, in salaries and wages, partially offset by increases of $240 thousand in employee benefits and $15 thousand in occupancy expenses. Income tax expense increased $189 thousand, to $817 thousand, for the three months ended December 31, 2022.

**Year-to-Date Highlights**

Consolidated net income was $12.6 million, or $2.81 per share, compared to $13.2 million, or $2.94 per share, for the year ended December 31, 2022 and 2021, respectively. The decrease in earnings was due to a decrease of $4.0 million in noninterest income, a $309 thousand increase in noninterest expenses, partially offset by an increase in net interest income of $3.7 million and a decrease of $14 thousand in income tax expense.

Interest income increased $4.7 million, or 11.9%, to $43.9 million for the year ended December 31, 2022 compared to $39.3 million for the year ended December 31, 2021. Interest expense was $4.5 million for the year ended December 31, 2022 compared to $3.6 million for the year ended December 31, 2021.

Noninterest income was $9.0 million for the year ended December 31, 2022 compared to $13.0 million for the year ended December 31, 2021, a decrease of $4.0 million, or 30.7%, primarily due to the reduction in net gains on sales of residential loans. Sales of qualifying residential loans to the secondary market for the year ended December 31, 2022 were $78.0 million resulting in net gains of $1.0 million, compared to sales of $216.8 million and net gains on sales of $5.0 million for year ended December 31, 2021. The increases in interest rates negatively impacted the premium obtained on sales of qualifying loans during 2022 compared to the same period in 2021. This resulted in lower sales volume and more residential loans retained on the balance sheet.

Noninterest expenses increased $309 thousand, or 0.9%, during the comparison periods due to increases of $430 thousand in employee benefits, $23 thousand in occupancy expenses and $245 thousand in equipment expenses partially offset by decreases of $365 thousand in

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salaries and wages and $24 thousand in other expenses. Income tax expense decreased $14 thousand, to $2.6 million as of December 31, 2022.

Total assets were $1.3 billion as of December 31, 2022 compared to $1.2 billion as of December 31, 2021, an increase of $131.0 million, or 10.9%. Asset growth continued to be fueled by increases in customer deposits that were reinvested into our communities through loans to individuals, businesses, and municipalities as well as investment securities.

Investment securities, including interest bearing deposits in other banks, were $268.0 million at December 31, 2022 compared to $282.1 million at December 31, 2021. The net decrease is primarily attributable to the decline in fair market value during 2022 due to increases in interest rates. As of December 31, 2022, unrealized losses were $47.4 million. Based on management's assessment, the losses are not representative of a deterioration in credit quality but are the result of rising interest rates.

Total loans outstanding as of December 31, 2022 were $960.7 million compared to $801.6 million as of December 31, 2021, an increase of $159.1 million, or 19.8%. Loan growth in 2022 was due to retaining more residential loans on the balance sheet, and increases in residential construction and commercial real estate loans. These increases were partially offset by a reduction of $13.4 million of PPP loans forgiven during 2022. As mentioned above, funding of asset growth continues to be primarily from customer deposits which increased to $1.2 billion as of December 31, 2022 compared to $1.1 billion as of December 31, 2021, an increase of $106.8 million, or 9.8%. Brokered deposits of $33.0 million were included in total deposits as of December 31, 2022 and none were outstanding as of December 31, 2021. Also, $50.0 million of Federal Home Loan Bank advances were outstanding as of December 31, 2022 to bridge funding gaps.

The Company had total equity capital of $55.2 million and a book value per share of $12.25 as of December 31, 2022 compared to $84.3 million and $18.77 per share as of December 31, 2021. The decrease in total capital was primarily attributable to the increase in accumulated comprehensive loss of $35.9 million as it relates to unrealized losses in the investment portfolio discussed above. The unrealized losses in other comprehensive income do not impact regulatory capital ratios.

**About Union Bankshares, Inc.**

Union Bankshares, Inc., headquartered in Morrisville, Vermont, is the bank holding company parent of Union Bank, which provides commercial, retail, and municipal banking services, as well as, wealth management services throughout northern Vermont and New Hampshire. Union Bank operates 18 banking offices, three loan centers, and multiple ATMs throughout its geographical footprint.

Since 1891, Union Bank has helped people achieve their dreams of owning a home, saving for retirement, starting or expanding a business and assisting municipalities to improve their communities. 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 lives of low to moderate home buyers. Union Bank is consistently one of the top Vermont Housing Finance Agency mortgage originators and has also been designated as an SBA Preferred lender for its participation in small business lending. Union Bank's employees contribute to the communities where they work and reside, serving on non-profit boards, raising funds for worthwhile causes, and giving countless hours in serving our fellow residents. All of these efforts have resulted in Union receiving and "Outstanding" rating for its compliance with the Community Reinvestment Act ("CRA") in its most recent examination. Union Bank is proud to be one of the few independent community banks serving Vermont and New Hampshire and we maintain a strong commitment to our core traditional values of keeping deposits safe, giving customers convenient financial choices and making loans to help people in our local communities buy homes, grow businesses, and create jobs. These values--combined with financial expertise, quality products and the latest technology--make Union Bank the premier choice for your banking services, both personal and business. Member FDIC. Equal Housing Lender.

**Forward-Looking Statements** 

*Statements made in this press release that are not historical facts are forward-looking statements. Investors are cautioned that all forward-looking statements necessarily involve risks and uncertainties, and many factors could cause actual results and events to differ materially from those contemplated in the forward-looking statements. When we use any of the words "believes," "expects," "anticipates" or similar expressions, we are making forward-looking statements. The following factors, among others, could cause actual results and events to differ from those contemplated in the forward-looking statements: uncertainties associated with general economic conditions; changes in the interest rate environment; inflation; political, legislative or regulatory developments; acts of war or terrorism; the markets' acceptance of and demand for the Company's products and services; technological changes, including the impact of the internet on the Company's business and on the financial services market place generally; the impact of competitive products and pricing; and dependence on third party suppliers. For further information, please refer to the Company's reports filed with the Securities and Exchange Commission at <u>www.sec.gov</u> or on our investor page at <u>www.ublocal.com</u>.*

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