Basis of Presentation (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of Acronyms, Abbreviations and Capitalized Terms

In addition to the definitions set forth elsewhere in this report, the acronyms, abbreviations and capitalized terms identified below are used throughout this Form 10-Q, including Part I. "Financial Information" and Part II. "Other Information". The following is provided to aid the reader and provide a reference page when reviewing this Form 10-Q.


ACL:	Allowance for credit losses	HUD:	U.S. Department of Housing and Urban Development
AFS:	Available-for-sale	ICS:	Insured Cash Sweeps of IntraFi
ASC:	Accounting Standards Codification	IntraFi:	IntraFi Network LLC
ASU:	Accounting Standards Update	MBS:	Mortgage-backed security
Board:	Board of Directors	MSRs:	Mortgage servicing rights
bp or bps:	Basis point(s)	OAO:	Other assets owned
CDARS:	Certificate of Deposit Accounts Registry Service of IntraFi	OCI:	Other comprehensive income (loss)
Company:	Union Bankshares, Inc. and Subsidiary	OREO:	Other real estate owned
CECL:	Current Expected Credit Losses	RD:	USDA Rural Development
DCF:	Discounted cash flow	RSU:	Restricted Stock Unit
DRIP:	Dividend Reinvestment Plan	SBA:	U.S. Small Business Administration
FASB:	Financial Accounting Standards Board	SEC:	U.S. Securities and Exchange Commission
FDIC:	Federal Deposit Insurance Corporation	TDR:	Troubled-debt restructuring
FHA:	U.S. Federal Housing Administration	Union:	Union Bank, the sole subsidiary of Union Bankshares, Inc
FHLB:	Federal Home Loan Bank of Boston	USDA:	U.S. Department of Agriculture
FRB:	Federal Reserve Board	VA:	U.S. Veterans Administration
FHLMC/Freddie Mac:	Federal Home Loan Mortgage Corporation	2014 Equity Plan:	2014 Equity Incentive Plan, as amended
GAAP:	Generally Accepted Accounting Principles in the United States	2022 Annual Report:	Annual Report on Form 10-K for the year ended December 31, 2022
HTM:	Held-to-maturity

Schedule of Impact of Adoption

The following table illustrates the adoption of ASU No. 2013-16 on January 1, 2023. As noted above, there was no ACL on AFS debt securities required to be recorded upon adoption of the ASU.


	Pre-CECL Adoption		Reclassification to CECL Portfolio Segmentation		Pre-CECL Adoption Portfolio Segmentation		Post-CECL Adoption		Impact of CECL Adoption
Assets	(Dollars in thousands)
Loans
Residential real estate	$	352,433	$	(352,433)	$	—	$	—	$	—
Non-revolving residential real estate	—		335,470		335,470		335,470		—
Revolving residential real estate	—		16,963		16,963		16,963		—
Construction real estate	96,620		(96,620)		—		—		—
Commercial construction real estate	—		56,501		56,501		56,501		—
Residential construction real estate	—		40,119		40,119		40,119		—
Commercial real estate	377,947		(377,947)		—				—
Non-residential commercial real estate	—		282,397		282,397		282,397		—
Multi-family residential real estate	—		95,550		95,550		95,550		—
Commercial	40,973		—		40,973		40,973		—
Consumer	2,204		—		2,204		2,204		—
Municipal	87,980		—		87,980		87,980		—
Total loans	$	958,157	$	—	$	958,157	$	958,157	$	—

ACL on loans
Residential real estate	$	2,417	$	(2,417)	$	—	$	—	$	—
Non-revolving residential real estate	—		2,294		2,294		2,024		(270)
Revolving residential real estate	—		123		123		148		25
Construction real estate	1,032		(1,032)		—		—		—
Commercial construction real estate	—		611		611		1,593		982
Residential construction real estate	—		421		421		131		(290)
Commercial real estate	3,935		(3,935)		—		—		—
Non-residential commercial real estate	—		2,931		2,931		2,174		(757)
Multi-family residential real estate	—		1,004		1,004		224		(780)
Commercial	301		—		301		492		191
Consumer	10		—		10		5		(5)
Municipal	95		—		95		53		(42)
Unallocated	549		—		549		—		(549)
Total ACL on loans	$	8,339	$	—	$	8,339	$	6,844	$	(1,495)

Liabilities
ACL on off-balance sheet credit exposures					$	—	$	1,458	$	1,458

Retained earnings
Decrease in ACL on loans									$	1,495
Increase in ACL on off-balance sheet credit exposures									(1,458)
Increase to retained earnings									$	37