EX-99.1CHARTER 2 uni-99.txt THIRD QUARTER REPORT DATED OCTOBER 17, 2000 UNION BANKSHARES, INC. --------------------------------------------------------------------------- September 30, 2000 Third Quarter Report [LOGO] CITIZENS SAVINGS BANK AND TRUST COMPANY [LOGO] UNION BANK Wholly Owned Subsidiaries October 17, 2000 Dear Shareholder, We are headed into the fourth quarter of 2000 and time has passed rather quickly so far this year. The "back room" consolidation and productivity efforts are continuing to move forward and again we are pleased with the progress and cooperation displayed by all involved. Teamwork is alive and well! The expansion of trust services to Lamoille County is now on track with the addition of Deb Partlow, a seasoned trust officer of Citizens Savings Bank and Trust Company located at the main office of Union Bank in Morrisville. Deb has over 20 years of banking experience and is well versed in trust services and products. Citizens has expanded their initiatives in the area of merchant credit card servicing by providing improved service and local support which has received a warm acceptance by merchants who have signed on. Together, Union and Citizens have over 500 businesses utilizing this product which complements the "full service" line offered commercial customers. A bit of a pleasant surprise this year has been the continued strong demand for both residential and commercial loans. The loan portfolio has grown $13.6 million or 6.4% over September 1999. Year to date over $9 million in residential construction loans have been committed with the outlook for 2001 to be more of the same. We have taken advantage of the favorable advance rates offered by the Federal Home Loan Bank to fund some of this growth. On July13th Union Bankshares, Inc. began trading on the American Stock Exchange (AMEX) under the symbol UNB. We feel listing your company's stock on a national exchange provides better liquidity and a more consistent trading environment. AMEX also offers assistance to listed companies in a number of areas which we can take advantage of such as shareholder relations, regulatory compliance and other programs. On the following pages you will find our unaudited financial statements. Assets have increased 3% and income 10% over the quarter ended September of 1999. Year to date shows a similar trend. Enclosed is a dividend check or advice of deposit representing a dividend of $.26 per share to shareholders of record October 14, 2000. Sincerely, /s/ Arlen Smith /s/ Kenneth D. Gibbons --------------- ---------------------- W. Arlen Smith Kenneth D. Gibbons Chairman President Shareholder Assistance and Investor Information If you need assistance with a change in registration of certificates, reporting lost certificates, nonreceipt or loss of dividend checks, information about the Company, or to receive copies of financial reports, please contact us at the address and phone number listed below: Corporate Name: Union Bankshares, Inc. Transfer Agent: Union Bank P.O. Box 667 Morrisville, VT 05661-0667 Phone: 802-888-6600 Fax: 802-888-4921 Email: ubexec@together.net Website: www.unionbankvt.com
Consolidated Balance Sheet (unaudited) ------------------------------------------------------------------------------------------ September 30, 2000 September 30, 1999 ASSETS Cash and Due from Banks $ 10,292,803 $ 10,035,324 Federal Funds Sold 5,355,000 6,798,794 Interest Bearing Deposits 2,098,948 2,109,798 U.S. Government Securities 29,583,090 33,270,737 State and Municipal Securities 4,802,648 4,876,609 Corporate Securities 22,337,903 22,444,278 Loans, net 224,988,479 211,385,895 Less: Reserve for Loan Losses (2,867,193) (2,910,744) Bank Building and Equipment, net 3,860,971 4,161,735 Other Real Estate Owned 137,090 34,151 Other Assets 6,605,093 5,967,412 --------------------------------- Total Assets $307,194,832 $298,173,989 ================================= LIABILITIES AND SHAREHOLDERS' EQUITY Demand Deposits $ 34,198,044 $ 35,696,671 Savings and Time Deposits 224,957,769 223,707,356 Borrowed Funds 10,464,590 3,282,884 Other Liabilities 3,569,476 3,151,367 Common Stock 6,527,378 6,526,378 Paid in Capital 239,903 236,029 Retained Earnings 29,491,743 27,834,050 Accumulated Other Comprehensive Income (661,620) (668,295) Treasury Stock at Cost (1,592,451) (1,592,451) --------------------------------- Total Liabilities and Shareholders' Equity $307,194,832 $298,173,989 =================================
Consolidated Statements of Income (unaudited) ------------------------------------------------------------------------------------------------- 9/30/00 9/30/99 9/30/00 9/30/99 (3 months ended) (9 months ended) Interest Income $6,174,556 $5,824,767 $17,830,255 $16,966,205 Interest Expense 2,592,350 2,302,990 7,237,848 6,799,895 ------------------------------------------------------ Net Interest Income 3,582,206 3,521,777 10,592,407 10,166,310 Less: Provision for Loan Losses 62,500 62,499 187,500 249,997 ------------------------------------------------------ Net Interest Income after Loan Loss Provision 3,519,706 3,459,278 10,404,907 9,916,313 Trust Income 35,139 47,107 111,358 114,823 Other Income 586,681 567,519 1,793,052 1,804,199 Other Operating Expenses: Salaries 1,120,320 1,043,598 3,431,197 3,131,200 Employee Benefits 291,384 278,870 868,074 777,463 Occupancy 141,615 130,365 434,162 407,267 Equipment 222,925 268,120 753,293 807,617 Other 618,830 755,949 2,053,475 2,208,704 ------------------------------------------------------ Total 2,395,074 2,476,902 7,540,201 7,332,251 ------------------------------------------------------ Net Income before Tax 1,746,452 1,597,002 4,769,116 4,503,084 Income Tax Expense 499,314 463,592 1,276,244 1,354,096 ------------------------------------------------------ Net Income $1,247,138 $1,133,410 $ 3,492,872 $ 3,148,988 ====================================================== Earnings per Share $ 0.41 $ 0.37 $ 1.15 $ 1.04 Book Value Per Share $ 11.22 $ 10.68
DIRECTORS OF UNION BANKSHARES, INC. W. Arlen Smith, Chairman Cynthia D. Borck William T. Costa, Jr. Kenneth D. Gibbons Peter M. Haslam Franklin G. Hovey II William F. Kinney Richard C. Marron Robert P. Rollins Jerry S. Rowe Richard C. Sargent Walter M. Sargent OFFICERS OF UNION BANKSHARES, INC. W. Arlen Smith Chairman Cynthia D. Borck Vice-President Kenneth D. Gibbons President Peter M. Haslam Secretary Marsha A. Mongeon Vice President/Treasurer Jerry S. Rowe Vice President DIRCETORS OF CITIZENS SAVINGS BANK AND TRUST COMPANY Cynthia D. Borck J.R. Alexis Clouatre William T. Costa, Jr. Dwight A. Davis Kenneth D. Gibbons Franklin G. Hovey II Jerry S. Rowe Joseph M. Sherman OFFICERS OF CITIZENS SAVINGS BANK AND TRUST COMPANY Michelle Brochu Vice President Patricia G. Coffin Auditor/Compliance Officer John Dinsmore Assistant Treasurer Tracey D. Holbrook Assistant Vice President Susan O. Laferriere Vice President Dennis J. Lamothe Treasurer Barbara A. Olden Assistant Vice President Deborah J. Partlow Trust Officer Jerry S. Rowe President Wendy L. Somers Trust Officer David A. Weed Vice President DIRECTORS OF UNION BANK W. Arlen Smith, Chairman Cynthia D. Borck Kenneth D. Gibbons Peter M. Haslam William F. Kinney Richard C. Marron Robert P. Rollins Richard C. Sargent Walter M. Sargent OFFICERS OF UNION BANK Wanda L. Allaire Assistant Vice President Ethan A. Allen, Jr. Vice President Rhonda L. Bennett Vice President Cynthia D. Borck Senior Vice President Fern C. Farmer Assistant Vice President Patsy S. French Assistant Vice President Kenneth D. Gibbons President Nathaniel M. Hayward Commercial Loan Officer Claire A. Hindes Assistant Treasurer Patricia N. Hogan Vice President Peter R. Jones Vice President Margaret S. Lambert Assistant Vice President Marsha A. Mongeon Senior Vice President/Treasurer Freda T. Moody Assistant Vice President Karen Carlson Noyes Assistant Vice President Colleen D. Putvain Assistant Treasurer Ruth P. Schwartz Vice President David S. Silverman Senior Vice President JoAnn A. Tallman Assistant Secretary Francis E. Welch Assistant Vice President Craig S. Wiltshire Vice President UNION BANK OFFICES Morrisville Jeffersonville 20 Lower Main Street* 80 Main Street* (802) 888-6600 (802) 644-6600 Northgate Plaza* Hyde Park Route 100 250 Main Street (802) 888-6860 (802) 888-6880 Stowe Remote ATM's at: Stowe Village* Smugglers' Notch Resort (2) Park and Pond Streets Johnson State College (802) 253-6600 Copley Hospital Cold Hollow Cider Mill 1857 Mountain Road Trapp Family Lodge Route 108 Stowe Mountain Resort (3) (802) 253-6642 Big John's Riverside Store Ben & Jerry's Hardwick 103 VT Route 15* Express Telebanking (802) 472-8100 (802) 888-6448 (800) 583-2869 Johnson 198 Lower Main Street* (802) 635-6600 www.unionbankvt.com * ATM's at these branches CITIZENS SAVINGS BANK AND TRUST COMPANY OFFICES St. Johnsbury Remote ATM's at: 364 Railroad Street* East Burke, Route 114 (802) 748-3131 Danville, Route 2 325 Portland Street Express Phone Banking (802) 748-3121 (802) 748-0815 (800) 748-1018 Lyndonville 183 Depot Street* (802) 626-3100 St. Johnsbury Center Green Mountain Mall* 1998 Memorial Drive (802) 748-2454 www.csbtc.com * ATM's at these branches