Attached files
| file | filename |
|---|---|
| 8-K - BODY OF FORM 8-K - UNION BANKSHARES INC | unb-20201106.htm |
Exhibit 99.1
 |  | |||||||||||||||||||||||||
| November 6, 2020 | ||||||||||||||||||||||||||
 |  | |||||||||||||||||||||||||
| As we have done in past quarters, we include our Third Quarter Earnings Press Release to provide you with an update of our financial position while allowing us to spend more space discussing topics we believe are important to our owners. By most measures, 2020 has been a difficult year for our nation and the world at large. Many lives have been lost to the lethal Coronavirus. Many businesses were temporarily or permanently put out of business through no fault of their own. Countless families are experiencing financial hardships due to loss of employment. Despite this, many segments of our economy have survived, and in some cases thrived, allowing us to be cautiously optimistic for the future. The economic environment caused by the pandemic has impacted people and business at varying degrees. While the low interest rate environment has continued to pressure our net interest spread, it has also precipitated a boom in residential refinances and increased the already strong real estate purchase market fueled by increased migration into our communities. This has nearly doubled the volume of our residential real estate loan business line compared to 2019, allowing us to more than offset lower loan yields with gains on real estate loans sold. As a result, we have been able to achieve strong earnings despite the ongoing economic uncertainty created by the pandemic. Though the global economic future is uncertain, we are gaining some clarity about the impact of the pandemic on your company. We have come to understand that borrowers seeking payment deferments on their loans has not been a predictor of defaults and credit losses. Rather, because of the uncertainty caused by the pandemic and economic shutdown, prudent borrowers asked for deferments to preserve cash until they were better able to understand the impact of the pandemic on their individual situations. Of the approximately $172 million of loan relationships for which we issued some sort of payment accommodations, $131 million have now | returned to making contractual payments. We are now focusing our attention on the far smaller number of borrowers who have asked for additional payment deferments. These borrowers are primarily in the restaurant and lodging business segments. At this point we have not identified specific cases where we foresee defaults and losses, but expect this will become clearer during the first and second quarters of 2021. We draw your attention to the discussion about the increase in the loan loss provision in the accompanying earnings release. As mentioned above, we have not identified specific losses yet, but have increased our loan loss provision based on the qualitative factors we assign to our loan portfolio components which reflect the current economic uncertainty we face. Our goal is to position our balance sheet to enter 2021 with continued financial strength. Our region has been a beneficiary of the trend of people pursuing active outdoor recreation in all forms. Regional ski resorts have been determining how best to re-open and are generally reporting solid advance season ticket sales. We are hopeful we will have moderately strong winter tourism season. Our financial results are better than expected given the pandemic. We could not accomplish this without a strong team of dedicated professionals. We are honored to work among them. During our Board of Directors meeting held on October 21, 2020 your Directors voted to declare a 32 cents per share dividend to record holders as of October 30, 2020, payable on November 6, 2020. Sincerely | |||||||||||||||||||||||||
 | 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 | |||||||||||||||||||||||||
 | 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 20 banking offices, two 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 127 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. | ||||||||||||||||||||||||||
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 | SEPT 30, 2020 | SEPT 30, 2019 | SEPT 30, 2020 | SEPT 30, 2019 | SEPT 30, 2020 | SEPT 30, 2019 | Timothy W. Sargent-Vice Chair | David S. Silverman - President & CEO | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Joel S. Bourassa | Jeffrey G. Coslett- Vice President | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (3 months ended) | (9 months ended) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Steven J. Bourgeois | Karyn J. Hale - Chief Financial Officer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and Due from Banks | $ | 5,100 | $ | 5,126 | Interest Income | $ | 9,343 | $ | 9,140 | $ | 27,445 | $ | 26,636 | ||||||||||||||||||||||||||||||||||||||||||||||
| Dawn D. Bugbee | John H. Steel - Secretary | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| John M. Goodrich | Kristy Adams Alfieri - Assistant Secretary | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Federal Funds Sold & Overnight Deposits | 59,377 | 24,774 | Interest Expense | 1,158 | 1,493 | 3,976 | 4,117 | Nancy C. Putnam | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Interest Income | 8,185 | 7,647 | 23,469 | 22,519 | David S. Silverman | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Bearing Deposits in Banks | 8,964 | 7,062 | John H. Steel | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision for Loan Losses | 800 | 150 | 1,600 | 350 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment Securities | 88,994 | 85,886 | Net Interest Income After Provision for Loan Losses | 7,385 | 7,497 | 21,869 | 22,169 | Union Bank | REGIONAL ADVISORY BOARD MEMBERS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans Held for Sale | 32,803 | 13,561 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Trust Income | 173 | 168 | 524 | 519 | DIRECTORS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans, net | 765,514 | 658,904 | Noninterest Income | 5,335 | 2,555 | 10,490 | 6,907 | Neil J. Van Dyke -Chair | Michael R. Barrett - St. Johnsbury | ||||||||||||||||||||||||||||||||||||||||||||||||||
Timothy W. Sargent -Vice Chair | Steven J. Bourgeois - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reserve for Loan Losses | (7,691) | (5,808) | Noninterest Expenses: | Joel S. Bourassa | Andrew A. Dean - Northern NH | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Salaries & Wages | 3,718 | 3,072 | 9,668 | 8,773 | Steven J. Bourgeois | Stanley T. Fillion - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Premises and Equipment, net | 20,452 | 22,507 | Dawn D. Bugbee | Rosemary H. Gingue - St. Johnsbury | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Employee Benefits | 1,204 | 1,047 | 3,417 | 3,108 | John M. Goodrich | John M. Goodrich - St. Johnsbury | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accrued Interest & other Assets | 35,622 | 32,876 | Nancy C. Putnam | Christopher M. Knapp - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gregory D. Sargent | Coleen K. Kohaut - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Assets | $ | 1,009,135 | $ | 844,888 | Occupancy Expense, net | 420 | 428 | 1,411 | 1,287 | David S. Silverman | Justin P. Lavely - St. Johnsbury | ||||||||||||||||||||||||||||||||||||||||||||||||
| John H. Steel | Daniel J. Luneau - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equipment Expense | 770 | 625 | 2,266 | 1,764 | Mary K. Parent - St. Johnsbury | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Samuel H. Ruggiano - St. Albans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Christine A. Sheley - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Expenses | 1,883 | 1,833 | 5,516 | 5,400 | David S. Silverman - All | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Union Bank Offices (ATMs at all Branch Locations) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LIABILITIES & SHAREHOLDERS' EQUITY | SEPT 30, 2020 | SEPT 30, 2019 | Total | 7,995 | 7,005 | 22,278 | 20,332 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Before Taxes | 4,898 | 3,215 | 10,605 | 9,263 | VERMONT | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest Bearing Deposits | $ | 204,555 | $ | 137,239 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Berlin | 1028 US Route 302 | 802.476.0061 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Bearing Deposits | 562,970 | 419,646 | Income Tax Expense | 751 | 477 | 1,594 | 1,374 | Fairfax | Jct. Routes 104 & 128 | 802.849.2600 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Hardwick | 103 VT Route 15 West | 802.472.8100 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Time Deposits | 142,554 | 159,844 | Net income | $ | 4,147 | $ | 2,738 | $ | 9,011 | $ | 7,889 | Jeffersonville | 5062 VT Route 15 | 802.644.6600 | |||||||||||||||||||||||||||||||||||||||||||||
| Jericho | 368 VT Route 15 | 802.899.7500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Borrowed Funds | 9,497 | 47,164 | Earnings per share | $ | 0.92 | $ | 0.62 | $ | 2.01 | $ | 1.77 | Johnson | 198 Lower Main Street | 802.635.6600 | |||||||||||||||||||||||||||||||||||||||||||||
| Lyndonville | 183 Depot Street | 802.626.3100 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accrued Interest & Other Liabilities | 11,135 | 10,382 | Book Value Per Share | $ | 17.52 | $ | 15.80 | Morrisville | 20 Lower Main Street | 802.888.6600 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 65 Northgate Plaza | 802.888.6860 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | 9,901 | 9,892 | St. Albans | 15 Mapleville Depot | 802.524.9000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| St. Johnsbury | 364 Railroad Street | 802.748.3131 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Additional Paid-in Capital | 1,368 | 1,099 | 325 Portland Street | 802.748.3121 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retained Earnings | Stowe | 47 Park Street | 802.253.6600 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 68,735 | 62,645 | Williston | Branch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accumulated Other Comprehensive Income | 2,593 | 1,163 | 31 Market St | 802.878.7900 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
 | Loan Center | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 31 Market St | 802.865.1000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Treasury Stock at Cost | (4,173) | (4,186) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Liabilities & Shareholders' Equity | $ | 1,009,135 | $ | 844,888 | NEW HAMPSHIRE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Standby letters of credit were $3,093,000 and $2,308,000 at September 30, 2020 and 2019, respectively. | 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 | Commercial Loan Center | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2541 White Mountain Hwy | 603.662.9408 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||