EX-99.1 2 exhibit9913rdqtr2021shrepo.htm EXHIBIT 99.1 Document

Exhibit 99.1
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November 4, 2021
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We are pleased to report our financial results for the three and nine months ended September 30, 2021. Consolidated net income for the three months ended September 30, 2021 was $3.9 million, compared to $4.1 million for the same period in 2020 and $9.8 million for the nine months ended September 30, 2021, compared to $9.0 million, for the same period in 2020, an 8.7% year over year improvement.

Consolidated net income was $9.8 million, or $2.18 per share, compared to $9.0 million, or $2.01 per share, for the nine months ended September 30, 2021 and 2020, respectively. The increase in earnings was due to an increase of $3.0 million in net interest income and a decrease of $1.4 million in the provision for loan losses, partially offset by a decrease in noninterest income of $1.1 million and increases in noninterest expenses of $2.1 million and income tax expense of $424 thousand.

Deposit growth during 2021 has continued to outpace
expectations, fueled by various Federal and State stimulus programs related to the ongoing pandemic. As a result, total assets increased to $1.16 billion as of September 30, 2021 from $1.01 billion as of September 30, 2020. Total loans were $790.0 million as of September 30, 2021 compared to $798.3 million as of September 30, 2020, a decrease of $8.3 million primarily due to sales of residential loans and PPP loan
forgiveness.

Since the beginning of the pandemic we have been closely monitoring our loan portfolio, particularly within the hard-hit hospitality industry. We are pleased to report that the vast majority of our commercial loan relationships have completed payment modification and forbearance arrangements and are now back to their scheduled payments. Because of this and other positive factors, no provision for loan losses was recorded for the three months ended September 30, 2021 compared to $800 thousand for the same period in 2020.		On August 26, 2021 we announced that we had completed a private placement of $16.5 million in aggregate principal amount of fixed-to-floating rate subordinated notes due 2031 to certain qualified institutional buyers and accredited investors at a favorable coupon of 3.25%. Proceeds from the sale of the notes were used to provide additional capital support to the Company’s wholly-owned subsidiary,
Union Bank, primarily to support the significant growth in its balance sheet over the past two years.

We are pleased to announce the opening of our new
Shelburne, Vermont branch office on October 4, 2021. This coupled with the other two Chittenden County branches we opened in the summer of 2019 in Williston and Jericho represent a meaningful investment in Vermont’s most populous county.
New branches may not be immediately accretive to
earnings, but we believe they represent long investments in our future that will be accretive to earnings over the long run.

While we are writing this letter in late October, the beginning of our long, dark and dreary “stick season”, we cannot help but reflect on the fall foliage season just ended. It was one for the record books, with glorious colors, warm weather, and bustling highways, byways, villages and mountains. Good for local souls and pocket books.

The Board of Directors declared a cash dividend of $0.33 per share for the quarter payable November 4, 2021 to shareholders of record as of October 30, 2021. Please find your dividend check or advice of remittance enclosed. Please contact Kristy Adams Alfieri at 802.888.0982 to receive your dividend using direct deposit.

Sincerely,
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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, 2021SEPT 30, 2020SEPT 30, 2021SEPT 30, 2020SEPT 30, 2021SEPT 30, 2020
Timothy W. Sargent-Vice Chair
David S. Silverman - President & CEO
Joel S. Bourassa
Jeffrey G. Coslett- Vice President
(3 months ended)(9 months ended)
Dawn D. Bugbee
Karyn J. Hale - Chief Financial Officer
Cash and Due from Banks$5,029 $5,100 Interest Income$9,852 $9,343 $29,250 $27,445 
John M. Goodrich
John H. Steel - Secretary
Nancy C. Putnam
Kristy Adams Alfieri - Assistant Secretary
Federal Funds Sold & Overnight Deposits115,052 59,377 Interest Expense706 1,158 2,786 3,976 Gregory D. Sargent
Net Interest Income9,146 8,185 26,464 23,469 David S. Silverman
Interest Bearing Deposits in Banks12,201 8,964 John H. Steel
Provision for Loan Losses— 800 225 1,600 
Investment Securities185,387 88,994 Net Interest Income After
Provision for Loan Losses		9,146 7,385 26,239 21,869 Union BankREGIONAL
ADVISORY BOARD
MEMBERS
Loans Held for Sale17,821 32,803 
Trust Income216 173 599 524 
DIRECTORS
Loans, net772,222 765,514 Noninterest Income3,985 5,335 9,362 10,490 
Neil J. Van Dyke -Chair
Michael R. Barrett - St. Johnsbury
Timothy W. Sargent -Vice Chair
Steven J. Bourgeois - St. Albans
Reserve for Loan Losses(8,561)(7,691)Noninterest Expenses:Joel S. Bourassa
Andrew A. Dean - Northern NH
Salaries & Wages3,918 3,718 10,554 9,668 Dawn D. Bugbee
Stanley T. Fillion - Northern NH
Premises and Equipment, net21,808 20,452 John M. Goodrich
Rosemary H. Gingue - St. Johnsbury
Employee Benefits1,192 1,204 3,564 3,417 Nancy C. Putnam
John M. Goodrich - St. Johnsbury
Accrued Interest & other Assets37,327 35,622 Gregory D. Sargent
Christopher M. Knapp - Northern NH
David S. Silverman
Coleen K. Kohaut - St. Albans
Total Assets$1,158,286 $1,009,135 Occupancy Expense, net425 420 1,429 1,411 Janet P. Spitler
Justin P. Lavely - St. Johnsbury
John H. Steel
Daniel J. Luneau - St. Albans
Equipment Expense872 770 2,542 2,266 
Mary K. Parent - St. Johnsbury
Samuel H. Ruggiano - St. Albans
Christine A. Sheley - Northern NH
LIABILITIES & SHAREHOLDERS' EQUITYSEPT 30, 2021SEPT 30, 2020Other Expenses2,141 1,883 6,301 5,516 
David S. Silverman - All
Union Bank Offices
(ATMs at all Branch Locations)
Total8,548 7,995 24,390 22,278 
Noninterest Bearing Deposits$252,940 $204,555 
Income Before Taxes4,799 4,898 11,810 10,605 VERMONT
Interest Bearing Deposits680,438 562,970 
Berlin1028 US Route 302802.476.0061
Time Deposits107,266 142,554 Income Tax Expense874 751 2,018 1,594 FairfaxJct. Routes 104 & 128802.849.2600
Hardwick103 VT Route 15 West802.472.8100
Borrowed Funds7,000 9,497 Net income$3,925 $4,147 $9,792 $9,011 Jeffersonville5062 VT Route 15802.644.6600
Jericho368 VT Route 15802.899.7500
Subordinated Debentures and Notes16,164 — Earnings per share$0.87 $0.92 $2.18 $2.01 Johnson198 Lower Main Street802.635.6600
Lyndonville183 Depot Street802.626.3100
Accrued Interest & Other Liabilities10,730 11,135 Book Value Per Share$18.67 $17.52 Morrisville20 Lower Main Street802.888.6600
65 Northgate Plaza802.888.6860
Common Stock9,918 9,901 Shelburne5068 Shelburne Road802.985.0250
St. Albans15 Mapleville Depot802.524.9000
Additional Paid-in Capital1,728 1,368 St. JohnsburyOperations and Loan Center
Retained Earnings364 Railroad Street802.748.3131
76,452 68,735 Branch
Accumulated Other
Comprehensive Income		(188)2,593 325 Portland Street802.748.3121
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Stowe47 Park Street802.253.6600
WillistonBranch
Treasury Stock at Cost(4,162)(4,173)31 Market St802.878.7900
Loan Center
Total Liabilities & Shareholders' Equity$1,158,286 $1,009,135 31 Market St802.865.1000
Standby letters of credit were $2,364,000 and $3,113,000 at September 30, 2021 and 2020, 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 ConwayCommercial Loan Center
2541 White Mountain Hwy603.662.9408