EX-99.1 2 exhibit9914thqtr2021shrepo.htm EXHIBIT 99.1 Document

Exhibit 99.1
topleftq421.jpg
toprightq421.jpg
February 3, 2022
datebannerq421.jpg
bannerq32019a03.jpg
We are pleased to report our full year 2021 financial results.Consolidated net income was $13.2 million, or $2.94 per share,compared to $12.8 million, or $2.86 per share, for the year ended December 31, 2021 and 2020, respectively. The improvement in earnings was due to a $4.1 million increase in net interest income and a decrease of $2.2 million in the provision for loan losses, partially offset by a decrease in noninterest income of $3.0 million and increases in noninterest expenses of $2.7 million and income tax expense of $227 thousand.

Total assets increased to $1.2 billion as of December 31, 2021, from $1.1 billion as of December 31, 2020, growth of $112.1 million, or 10.3%. Balance sheet growth was driven by an increase in customer deposit balances of $100.8 million which funded loan originations and increases in investment securities. The
investment portfolio, including interest bearing deposits in banks, increased $162.6 million, or 136.1%, to $282.1 million as of December 31, 2021, from $119.5 million as of December 31, 2020, as higher yields were sought on excess liquidity. Outstanding loan balances were $801.6 million as of December 31, 2021, compared to $803.2 million as of December 31, 2020. Contributing to the slight decrease in outstanding loans year over year was $52.7 million of SBA PPP loans forgiven throughout 2021.

During 2020 and 2021, customer deposits have increased $351.1 million, a direct result of monetary and fiscal stimulus at the federal level. Those monies were utilized to fund loan originations and investment purchases. The loan portfolio increased $122.9 million and the investment portfolio increased $187.5 million. We would prefer to deploy funds into loans in order to maximize yield, but it takes longer to carefully source,
underwrite, and originate sound and profitable loans than it does to acquire government debt securities.

As announced on August 26, 2021, the Company 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. Proceeds from the sale of the notes were used to provide additional capital support to the Company’s wholly-owned subsidiary, Union Bank, to support growth and for other general corporate purposes. The Directors and Management are pleased to have timed the debt issuance to obtain a favorable initial coupon of 3.25%.

Looking back at 2020 and 2021 from the Company’s
perspective, we are extremely fortunate to have fared as
well as we did. Most of our business and retail customers have survived and in some cases are doing much better than in 2019, the last year untouched by the pandemic. Monetary and fiscal policy at the federal level dampened the negative economic impact of the pandemic, though it undeniably harmed those less fortunate among us.

Currently, the most immediate challenges our customers (and the bank) are facing include maintaining a stable workforce, supply chain disruptions and elevated inflation. We are blessed to occupy an area much loved by leisure travelers for our variety of outdoor recreation opportunities and world class hospitality amenities. Demand for travel to our area has been excellent.

We are pleased to inform you that the Board of Directors declared a cash dividend of $0.35 per share at our meeting held on January 19, 2022, an increase of 6.1% from the cash dividend of $0.33 paid in recent prior quarters, payable February 3, 2022 to shareholders of record as of January 29, 2022.

Sincerely,
leftsideq421.jpg
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:
centerpicq421.jpg
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
image1.jpg
image.jpg
Neil J. Van Dyke
Chair
David S. Silverman
President & Chief Executive Officer
bottomnamebannerq220.jpg
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
ASSETSDEC 31, 2021DEC 31, 2020DEC 31, 2021DEC 31, 2020DEC 31, 2021DEC 31, 2020
Timothy W. Sargent-Vice Chair
David S. Silverman - President & CEO
Joel S. Bourassa
Jeffrey G. Coslett- Vice President
(3 months ended)(12 months ended)
Dawn D. Bugbee
Karyn J. Hale - Chief Financial Officer
Cash and Due from Banks$4,659 $5,413 Interest Income$10,023 $9,305 $39,273 $36,750 
John M. Goodrich
John H. Steel - Secretary
Nancy C. Putnam
Kristy Adams Alfieri - Assistant Secretary
Federal Funds Sold & Overnight Deposits61,263 117,358 Interest Expense779 1,171 3,565 5,147 Gregory D. Sargent
Net Interest Income9,244 8,134 35,708 31,603 David S. Silverman
Interest Bearing Deposits in Banks13,196 12,699 John H. Steel
Provision for Loan Losses(225)600 — 2,200 
Investment Securities268,951 106,810 Net Interest Income After
Provision for Loan Losses		9,469 7,534 35,708 29,403 Union BankREGIONAL
ADVISORY BOARD
MEMBERS
Loans Held for Sale13,829 32,188 
Trust Income209 183 808 707 
DIRECTORS
Loans, net787,755 771,023 Noninterest Income2,793 4,806 12,155 15,296 
Neil J. Van Dyke -Chair
Michael R. Barrett - St. Johnsbury
Timothy W. Sargent -Vice Chair
Steven J. Bourgeois - St. Albans
Reserve for Loan Losses(8,336)(8,271)Noninterest Expenses:Joel S. Bourassa
Andrew A. Dean - Northern NH
Salaries & Wages3,894 3,552 14,448 13,220 Dawn D. Bugbee
Stanley T. Fillion - Northern NH
Premises and Equipment, net21,615 20,039 John M. Goodrich
Rosemary H. Gingue - St. Johnsbury
Employee Benefits1,029 1,163 4,593 4,580 Nancy C. Putnam
John M. Goodrich - St. Johnsbury
Accrued Interest & other Assets42,429 36,295 Gregory D. Sargent
Christopher M. Knapp - Northern NH
David S. Silverman
Coleen K. Kohaut - St. Albans
Total Assets$1,205,361 $1,093,554 Occupancy Expense, net461 394 1,890 1,805 Janet P. Spitler
Justin P. Lavely - St. Johnsbury
John H. Steel
Daniel J. Luneau - St. Albans
Equipment Expense883 791 3,425 3,057 
Mary K. Parent - St. Johnsbury
Samuel H. Ruggiano - St. Albans
Christine A. Sheley - Northern NH
LIABILITIES & SHAREHOLDERS' EQUITYDEC 31, 2021DEC 31, 2020Other Expenses2,198 2,004 8,499 7,520 
David S. Silverman - All
Union Bank Offices
(ATMs at all Branch Locations)
Total8,465 7,904 32,855 30,182 
Noninterest Bearing Deposits$264,888 $215,245 
Income Before Taxes4,006 4,619 15,816 15,224 VERMONT
Interest Bearing Deposits723,479 637,369 
Berlin1028 US Route 302802.476.0061
Time Deposits106,715 141,688 Income Tax Expense628 825 2,646 2,419 FairfaxJct. Routes 104 & 128802.849.2600
Hardwick103 VT Route 15 West802.472.8100
Borrowed Funds— 7,164 Net income$3,378 $3,794 $13,170 $12,805 Jeffersonville5062 VT Route 15802.644.6600
Jericho368 VT Route 15802.899.7500
Subordinated Debentures and Notes16,171 — Earnings per share$0.76 $0.85 $2.94 $2.86 Johnson198 Lower Main Street802.635.6600
Lyndonville183 Depot Street802.626.3100
Accrued Interest & Other Liabilities9,767 11,221 Book Value Per Share$18.77 $18.05 Morrisville20 Lower Main Street802.888.6600
65 Northgate Plaza802.888.6860
Common Stock9,934 9,910 Shelburne5068 Shelburne Road802.985.0250
St. Albans15 Mapleville Depot802.524.9000
Additional Paid-in Capital1,769 1,393 St. JohnsburyOperations and Loan Center
Retained Earnings364 Railroad Street802.748.3131
78,350 71,097 Branch
Accumulated Other
Comprehensive Income		(1,552)2,636 325 Portland Street802.748.3121
bottomrightq421.jpg
Stowe47 Park Street802.253.6600
WillistonBranch
Treasury Stock at Cost(4,160)(4,169)31 Market St802.878.7900
Loan Center
Total Liabilities & Shareholders' Equity$1,205,361 $1,093,554 31 Market St802.865.1000
Standby letters of credit were $2,158,000 and $3,115,000 at December 31, 2021 and 2020, respectively.NEW HAMPSHIRE
Groveton3 State Street603.636.1611
bottomleft421.jpg
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