EX-99.1 2 exhibit9914thqtr2022shrepo.htm EXHIBIT 99.1 Document

Exhibit 99.1
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February 2, 2023
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We are pleased to report financial results for the three months and year ended December 31, 2022. 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.
Total assets at year-end 2022 were $1.3 billion compared to total assets at year-end 2021 of $1.2 billion, a 10.9% increase year over year. 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.
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.
Our net income results for 2022 were close to budgeted expectations for the year, however the economic environment changed compared to 2021. Inflation soared in late 2021, prompting the Federal Reserve to embark on a monetary tightening cycle beginning in early 2022 and continuing to this day. This caused interest rates to climb, dampening real estate markets and convincing many that a recession
is likely in 2023. The real estate market has cooled as loan rates have risen, reducing the purchasing power of consumers and businesses in our region. This has been a test of our long-term balance sheet strategy, staying asset sensitive throughout economic cycles, and counting on net interest income to increase in rising rate environments and allowing gains on real estate loans from our mortgage loan business line to bolster net income during declining rate cycles. This strategy has worked well for us over the past decade, despite the volatility during those years.
We believe we are going into 2023 on solid footing. Loan demand remains sound, and asset quality is showing no signs of deterioration. Funding asset growth will be both a challenge and an area of focus during 2023.
Travel and tourism remain strong despite the lack of snow. This speaks to the quality experience our tourism community offers, as well as the general strength of the traveling consumer. Primary economic challenges in our region include the lack of affordable workforce housing, high construction costs, and a dismal labor market. We are closely monitoring economic conditions and asset quality but are guardedly optimistic about 2023.
At our recent Board of Directors meeting, we decided to return to an in person Annual Meeting in 2023, which is scheduled for May 17th. In addition, the Board 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.
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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
ASSETSDec 31, 2022Dec 31, 2021Dec 31, 2022Dec 31, 2021Dec 31, 2022Dec 31, 2021
Timothy W. Sargent - Vice Chair
David S. Silverman - President & CEO
Joel S. Bourassa
Karyn J. Hale - Chief Financial Officer
(3 months ended)(12 months ended)
Dawn D. Bugbee
Timothy W. Sargent - Secretary
Cash and Due from Banks$4,504 $4,659 Interest Income$12,355 $10,023 $43,948 $39,273 
Nancy C. Putnam
Kristy Adams Alfieri - Assistant Secretary
Gregory D. Sargent
Federal Funds Sold & Overnight Deposits33,381 61,263 Interest Expense2,005 779 4,524 3,565 David S. Silverman
Net Interest Income10,350 9,244 39,424 35,708 Janet P. Spitler
Interest Bearing Deposits in Banks16,428 13,196 
Credit for Loan Losses— (225)— — 
Investment Securities251,531 268,951 Net Interest Income After
Credit for Loan Losses		10,350 9,469 39,424 35,708 Union BankREGIONAL
ADVISORY BOARD
MEMBERS
Loans Held for Sale1,178 13,829 
Trust Income209 209 838 808 
DIRECTORS
Loans, net959,493 787,755 Noninterest Income2,091 2,793 8,149 12,155 
Neil J. Van Dyke - Chair
Michael R. Barrett - St. Johnsbury
Timothy W. Sargent - Vice Chair
Steven J. Bourgeois - St. Albans
Reserve for Loan Losses(8,339)(8,336)Noninterest Expenses:Joel S. Bourassa
Andrew A. Dean - Northern NH
Salaries & Wages3,578 3,894 14,083 14,448 Dawn D. Bugbee
Stanley T. Fillion - Northern NH
Premises and Equipment, net20,479 21,615 Mary K. Parent
Rosemary H. Gingue - St. Johnsbury
Employee Benefits1,269 1,029 5,023 4,593 Nancy C. Putnam
John M. Goodrich - St. Johnsbury
Accrued Interest & other Assets57,740 42,441 Gregory D. Sargent
Christopher M. Knapp - Northern NH
David S. Silverman
Coleen K. Kohaut - St. Albans
Total Assets$1,336,395 $1,205,373 Occupancy Expense, net476 461 1,913 1,890 Janet P. Spitler
Justin P. Lavely - St. Johnsbury
Daniel J. Luneau - St. Albans
Equipment Expense894 905 3,692 3,447 
Samuel H. Ruggiano - St. Albans
Christine A. Sheley - Northern NH
David S. Silverman - All
LIABILITIES & SHAREHOLDERS' EQUITYDec 31, 2022Dec 31, 2021Other Expenses2,172 2,176 8,453 8,477 
Union Bank Offices
(ATMs at all Branch Locations)
Total8,389 8,465 33,164 32,855 
Noninterest Bearing Deposits$286,145 $264,888 
Income Before Taxes4,261 4,006 15,247 15,816 VERMONT
Interest Bearing Deposits762,722 723,479 
Berlin1028 US Route 302802.476.0061
Time Deposits153,045 106,715 Income Tax Expense817 628 2,632 2,646 FairfaxJct. Routes 104 & 128802.849.2600
Hardwick103 VT Route 15 West802.472.8100
Borrowed Funds50,000 — Net income$3,444 $3,378 $12,615 $13,170 Jeffersonville5062 VT Route 15802.644.6600
Jericho368 VT Route 15802.899.7500
Subordinated Notes16,205 16,171 Earnings per share$0.77 $0.76 $2.81 $2.94 Johnson198 Lower Main Street802.635.6600
Lyndonville183 Depot Street802.626.3100
Accrued Interest & Other Liabilities13,058 9,779 Book Value Per Share$12.25 $18.77 Morrisville20 Lower Main Street802.888.6600
65 Northgate Plaza802.888.6860
Common Stock9,965 9,934 Shelburne5068 Shelburne Road802.985.0250
St. Albans15 Mapleville Depot802.524.9000
Additional Paid-in Capital2,225 1,769 St. JohnsburyOperations and Loan Center
Retained Earnings364 Railroad Street802.748.3131
84,669 78,350 Branch
Accumulated Other
Comprehensive (loss) Income		(37,419)(1,552)325 Portland Street802.748.3121
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Stowe47 Park Street802.253.6600
WillistonBranch
Treasury Stock at Cost(4,220)(4,160)31 Market St802.878.7900
Loan Center
Total Liabilities & Shareholders' Equity$1,336,395 $1,205,373 31 Market St802.865.1000
Standby letters of credit were $1,762,000 and $2,158,000 at December 31, 2022 and 2021, 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