Condensed Financial Information (Parent Company Only)

The following condensed financial statements are for Union Bankshares, Inc. (Parent Company Only), and should be read in conjunction with the consolidated financial statements of Union Bankshares, Inc. and Subsidiary.

UNION BANKSHARES, INC. (PARENT COMPANY ONLY)

CONDENSED BALANCE SHEETS

December 31, 2019 and 2018



	2019			2018
	(Dollars in thousands)
ASSETS
Cash	$	46		$	48
Other investments	27			67
Investment in subsidiary - Union	71,500			64,180
Other assets	712			767
Total assets	$	72,285		$	65,062
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Other liabilities	$	442		$	571
Total liabilities	442			571
STOCKHOLDERS' EQUITY
Common stock, $2.00 par value; 7,500,000 shares authorized; 4,948,245 shares issued at December 31, 2019 and 4,943,690 shares issued at December 31, 2018	9,897			9,888
Additional paid-in capital	1,124			894
Retained earnings	64,019			58,911
Treasury stock at cost; 476,268 shares at December 31, 2019 and 477,011 shares at December 31, 2018	(4,183		)	(4,179		)
Accumulated other comprehensive income (loss)	986			(1,023		)
Total stockholders' equity	71,843			64,491
Total liabilities and stockholders' equity	$	72,285		$	65,062

The investment in subsidiary is carried under the equity method of accounting. The investment in subsidiary and cash, which is on deposit with Union, have been eliminated in consolidation.

UNION BANKSHARES, INC. (PARENT COMPANY ONLY)

CONDENSED STATEMENTS OF INCOME

Years Ended December 31, 2019 and 2018



	2019			2018
Revenues	(Dollars in thousands)
Dividends - bank subsidiary - Union	$	5,925		$	5,625
Other income	24			254
Total revenues	5,949			5,879
Expenses
Interest	16			18
Administrative and other	536			419
Total expenses	552			437
Income before applicable income tax benefit and equity in undistributed net income of subsidiary	5,397			5,442
Applicable income tax benefit	(113		)	(89		)
Income before equity in undistributed net income of subsidiary	5,510			5,531
Equity in undistributed net income - Union	5,138			1,541
Net income	$	10,648		$	7,072

UNION BANKSHARES, INC. (PARENT COMPANY ONLY)

CONDENSED STATEMENTS OF CASH FLOWS

Years Ended December 31, 2019 and 2018



	2019			2018
CASH FLOWS FROM OPERATING ACTIVITIES	(Dollars in thousands)
Net income	$	10,648		$	7,072
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of Union	(5,138		)	(1,541		)
Decrease (increase) in other assets	55			(205		)
Decrease in other liabilities	(137		)	(233		)
Net cash provided by operating activities	5,428			5,093
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of other investments	47			44
Purchases of other investments	(7		)	(12		)
Proceeds of Company-owned life insurance death benefit	—			281
Net cash provided by investing activities	40			313
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid	(5,501		)	(5,328		)
Issuance of common stock	44			—
Purchase of treasury stock	(13		)	(107		)
Net cash used in financing activities	(5,470		)	(5,435		)
Net decrease in cash	(2		)	(29		)
Cash, beginning of year	48			77
Cash, end of year	$	46		$	48
Supplemental Disclosures of Cash Flow Information
Interest paid	$	16		$	18
Dividends paid on Common Stock:
Dividends declared	$	5,540		$	5,358
Dividends reinvested	(39		)	(30		)
	$	5,501		$	5,328