8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 1, 2024

(Exact name of registrant as specified in its charter)

UNION BANKSHARES, INC.

(State or other jurisdiction		(Commission	(IRS Employer
of incorporation)		File Number)	Identification Number)
VT		001-15985	03-0283552
(Address of principal executive offices)			(Zip Code)
20 Lower Main St., P.O. Box 667			05661-0667
Morrisville	,	VT

Registrant's telephone number, including area code: (802) 888-6600

(Former name or former address, if changed since last report)

Not applicable

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting materials pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to section 12(b) of the Act:

Common Stock, $2.00 par value	UNB	Nasdaq Stock Market
(Title of class)	(Trading Symbol)	(Exchanges registered on)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02: Results of Operations and Financial Condition

As provided in General Instruction B.2 to Form 8-K, the information furnished in this Item 2.02 and in Exhibits 99.1 hereto shall not be deemed filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing with the Securities and Exchange Commission, except as shall be expressly provided by specific reference in such filing.

On February 1, 2024, Union Bankshares, Inc (the "Company") distributed its Fourth Quarter 2023 unaudited Report to Shareholders (the "Quarterly Report") presenting information concerning the Company's results of operations and financial condition for the three and twelve months ended December 31, 2023 and declaration of a regular quarterly dividend. A copy of the Quarterly Report is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Item 9.01: Financial Statements and Exhibits

d) Exhibits:

99.1 Union Bankshares, Inc. Fourth Quarter 2023 Report to Shareholders distributed February 1, 2024 referred to in Item 2.02 of the Report as furnished, not filed; herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Union Bankshares, Inc.
February 1, 2024	/s/ David S. Silverman
	David S. Silverman
	President/Chief Executive Officer
February 1, 2024	/s/ Karyn J. Hale
	Karyn J. Hale
	Chief Financial Officer

EXHIBIT INDEX

Exhibit 99.1 Union Bankshares, Inc. Fourth Quarter 2023 Report to Shareholders distributed February 1, 2024.

EX-99.1

Exhibit 99.1

			February 1, 2024
			We are pleased to provide you with information about our 2023 earnings and financial position at year end, a quarterly dividend declaration, and related information about Union Bankshares, Inc. Consolidated net income for the three months ended December 31, 2023, was $3.0 million, or $0.68 per share, compared to $3.4 million, or $0.77 cents per share, for the same period in 2022, and $11.3 million, or $2.50 per share, for the year ended December 31, 2023, compared to $12.6 million, or $2.81 per share for the year ended December 31, 2022. Total assets were $1.5 billion as of December 31, 2023, compared to $1.3 billion as of December 31, 2022, an increase of $132.4 million, or 9.9%. Asset growth was driven by loan growth, with total loans outstanding as of December 31, 2023, at $1.0 billion, compared to $961.7 million as of December 31, 2022. Asset quality remains strong as total net charge-offs for the year ended December 31, 2023, were $4 thousand and past due loans remain very low. Union Bankshares, Inc. had total equity capital of $65.8 million and a book value per share of $14.56 as of December 31, 2023, compared to $55.2 million and a book value of $12.25 per share as of December 31, 2022. The increase in total capital was attributable to net income of $11.3 million for 2023 and a decrease in the accumulated other comprehensive loss of $5.5 million as it relates to unrealized losses in the investment portfolio, partially offset by $6.5 million in dividends paid to shareholders. Consolidated net income decreased $1.4 million, or 10.8%, to $11.3 million for the year ended December 31, 2023, compared $12.6 million for the year ended December 31, 2022, due to a decrease in net interest income of $1.6 million and an increase in noninterest expenses of $1.7 million. The banking industry has experienced volatility during 2023 with concerns related to liquidity, deposit outflows,unrealized securities losses, and		interest rates. Union Bank, like others, has experienced earnings pressure due to the prolonged and steep yield curve inversion. Decreases in net income were primarily driven by changes in interest rates between periods resulting in a significant impact on the Company’s funding costs due to customer expectation of higher rates on deposit accounts and increased utilization of wholesale funding. The Company continues to focus on optimization of the net interest margin, maintaining strong asset quality, and increasing market share within our footprint. The company’s financial position remains strong, supported by a diverse deposit base, a strong liquidity position, excellent asset quality, and regulatory capital considered to be “well capitalized”. During 2023 we completed an important Information Technology initiative, converting our core computing from on-site hosting to cloud-based hosting. This will allow us to avoid future computer hardware investments and allow our IT staff to focus on customer-facing initiatives. In addition, we opened a long planned full-service branch in North Conway, New Hampshire to serve the Mount Washington Valley Region. Since opening a loan production office in North Conway in 2019 we have generated approximately $150 million in commercial loans in the region. We look forward to serving the loan and deposit needs of this active market. Both initiatives are important investments in Union Bankshares’ future. The Board of Directors is pleased to inform you that a cash dividend of $0.36 per share has been declared for the quarter payable February 1, 2024, to shareholders of record as of January 27, 2024.
	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:
	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
					Neil J. Van Dyke Chair	David S. Silverman President & Chief Executive Officer
			AboutUnion 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 19 banking offices, 2 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
	ASSETS	DEC 31, 2023			DEC 31, 2022			DEC 31, 2023			DEC 31, 2022			DEC 31, 2023			DEC 31, 2022			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		$	4,429		$	4,504	Interest Income	$	15,416		$	12,355		$	57,110		$	43,948
																				Mary K. Parent		Kristy Adams Alfieri - Assistant Secretary
								Interest Expense	6,314			2,005			19,267			4,524		Nancy C. Putnam
	Federal Funds Sold & Overnight Deposits		73,237			33,381														Gregory D. Sargent
								Net Interest Income	9,102			10,350			37,843			39,424		David S. Silverman
	Interest Bearing Deposits in Banks		14,690			16,428														Janet P. Spitler
								Credit Loss Benefit	(338)			—			(499)			—
	Investment Securities		265,883			251,531		Net Interest Income After Credit Loss Benefit	9,440			10,350			38,342			39,424		Union Bank		REGIONAL ADVISORY BOARD MEMBERS
	Loans Held for Sale		3,070			1,178
								Wealth Management Income	248			209			943			838		DIRECTORS
	Loans, net		1,030,022			959,493		Noninterest Income	2,421			2,195			8,961			8,615		Neil J. Van Dyke - Chair		Michael R. Barrett - St. Johnsbury
																				Timothy W. Sargent - Vice Chair		Steven J. Bourgeois - St. Albans
	Allowance for Credit Losses		(6,566)			(8,339)		Noninterest Expenses:												Joel S. Bourassa		Andrew A. Dean - Northern NH
								Salaries & Wages	3,352			3,578			14,247			14,083		Dawn D. Bugbee		Stanley T. Fillion - Northern NH
	Premises and Equipment, net		20,771			20,479														Mary K. Parent		Rosemary H. Gingue - St. Johnsbury
								Employee Benefits	1,296			1,276			5,361			5,030		Nancy C. Putnam		John M. Goodrich - Northern NH
	Accrued Interest & Other Assets		63,352			57,834														Gregory D. Sargent		Christopher M. Knapp - Northern NH
																				David S. Silverman		Coleen K. Kohaut - St. Albans
	Total Assets		$	1,468,888		$	1,336,489	Occupancy Expense, net	516			476			2,035			1,913		Janet P. Spitler		Justin P. Lavely - St. Johnsbury
																						Daniel J. Luneau - St. Albans
								Equipment Expense	1,008			894			3,722			3,692				Samuel H. Ruggiano - St. Albans
																						Christine A. Sheley - Northern NH
																						David S. Silverman - All
	LIABILITIES & SHAREHOLDERS' EQUITY	DEC 31, 2023			DEC 31, 2022			Other Expenses	2,458			2,269			10,004			8,912
																				Union Bank Offices (ATMs at all Branch Locations)
								Total	8,630			8,493			35,369			33,630
	Noninterest Bearing Deposits		$	250,992		$	286,145
								Income Before Taxes	3,479			4,261			12,877			15,247		VERMONT
	Interest Bearing Deposits		765,689			762,722
																				Berlin	1028 US Route 302		802.476.0061
	Time Deposits		288,922			153,045		Income Tax Expense	430			817			1,620			2,632		Fairfax	Jct. Routes 104 & 128		802.849.2600
																				Hardwick	103 VT Route 15 West		802.472.8100
	Borrowed Funds		65,696			50,000		Net income	$	3,049		$	3,444		$	11,257		$	12,615	Jeffersonville	5062 VT Route 15		802.644.6600
																				Jericho	368 VT Route 15		802.899.7500
	Subordinated Notes		16,239			16,205		Earnings Per Share	$	0.68		$	0.77		$	2.50		$	2.81	Johnson	198 Lower Main Street		802.635.6600
																				Lyndonville	183 Depot Street		802.626.3100
	Accrued Interest & Other Liabilities		15,543			13,152		Book Value Per Share							$	14.56		$	12.25	Morrisville	20 Lower Main Street		802.888.6600
																					65 Northgate Plaza		802.888.6860
	Common Stock		9,991			9,965														Shelburne	5068 Shelburne Road		802.985.0227
																				St. Albans	15 Mapleville Depot		802.524.9000
	Additional Paid-in Capital		2,621			2,225														St. Johnsbury	Operations and Loan Center
	Retained Earnings																				364 Railroad Street		802.748.3131
			89,472			84,669															Branch
	Accumulated Other Comprehensive Loss		(31,955)			(37,419)															325 Portland Street		802.748.3121
																				Stowe	47 Park Street		802.253.6600
																				Williston	Branch
	Treasury Stock at Cost		(4,322)			(4,220)															31 Market St		802.878.7900
																					Loan Center
	Total Liabilities & Shareholders' Equity		$	1,468,888		$	1,336,489														31 Market St		802.865.1000
	Standby letters of credit were $1,557,000 and $1,762,000 at December 31, 2023 and 2022, respectively.																			NEW HAMPSHIRE
																				Groveton	3 State Street		603.636.1611
																				Littleton	263 Dells Road		603.444.7136
																					76 Main Street		603.444.5321
																				Lincoln	135 Main Street		603.745.4000
																				North Conway	120 North-South Road		603.356.4010

XML

Cover	Feb. 01, 2024
Document Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Feb. 01, 2024
Entity Registrant Name	UNION BANKSHARES, INC.
Entity Central Index Key	0000706863
Entity Incorporation, State or Country Code	VT
Entity File Number	001-15985
Entity Tax Identification Number	03-0283552
Entity Address, Address Line One	20 Lower Main St., P.O. Box 667
Entity Address, City or Town	Morrisville
Entity Address, State or Province	VT
Entity Address, Postal Zip Code	05661-0667
City Area Code	802
Local Phone Number	888-6600
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false