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| 8-K - BODY OF FORM 8-K - UNION BANKSHARES INC | unb-20210506.htm |
Exhibit 99.1
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| May 6, 2021 | ||||||||||||||||||||||||||
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| We are pleased to report our financial results for the first quarter of 2021. Consolidated net income was $2.9 million, compared to $2.2 million, for the same period in 2020, an increase of 30.9%. Total assets were $1.1 billion as of March 31, 2021 compared to $883.1 million as of March 31, 2020, an increase of 25.1%. The Board of Directors and Management are pleased with the solid performance in terms of both asset growth and improved net income for the first quarter. More complete financial performance information can be found in the enclosed earnings press release and our upcoming quarterly 10-Q filing. We entered 2021 with cautious optimism about the local economy. In late December 2020 two pivotal things occurred, the beginning of distribution of the Covid 19 vaccine, and the passage of another round of federal stimulus packages including the second round of the SBA Paycheck Protection Program loans. As a result, we re-entered the PPP loan origination business, processing 276 new second round PPP loans for a total of $27 million during the first quarter of 2021. This was in addition to the 700 loans and $70 million in first round PPP loans we originated in 2020. We are now processing PPP forgiveness applications, helping our borrowers turn these loans into grants. While imperfect, the PPP loans and other State and Federal business and consumer aid programs have greatly benefited our customers, our community, and our company. We have worked with our borrowers throughout the pandemic, granting payment deferrals and modifications to allow consumers, businesses, and non-profit entities remain solvent during the time the economy was essentially closed. We had executed 352 deferrals and modifications on outstanding loan balances of $167.2 million as of March 31, 2021. Of the total deferrals issued, 53, representing balances of $28 million remained in effect as of March 31, 2021. The majority of the remaining deferrals return to regular payments during the second quarter of 2021 and we believe most of our borrowers will be able to exit deferral status. | A by-product of the pandemic has been an increase in people from away enjoying prolonged visits to our area. We see more out of state license plates on our roads, and at restaurants and shops. We read about the booming real estate market and see increased applications for loans to purchase real estate. We wonder whether this phenomenon is transitory or structural and how this may impact our communities. Our service area can use an influx in working age people as the recent trend has been slow growth and a general aging of the population. Looking forward, our local economy is improving. Despite a short maple syrup crop, travel and tourism are rebounding with strong pent-up demand from our “drive” markets. Real estate sales and home construction are booming and residential lending is brisk. The chief economic challenges in the short term will be labor shortages and supply chain disruptions. We are collectively in a far better place than we were at this time last year. You should have received your proxy and notice of our Annual Meeting to be held virtually on May 19, 2021 at 3:00pm. We will miss seeing our friends again this year and expect to resume an in-person meeting in 2022. We are pleased to share that the Board of Directors declared a cash dividend of $0.33 per share for the quarter payable May 6, 2021 to shareholders of record as of May 1, 2021. | |||||||||||||||||||||||||
 | 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 | ||||||||||||||||||||||||||
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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 18 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 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 | MARCH 31, 2021 | MARCH 31, 2020 | MARCH 31, 2021 | MARCH 31, 2020 | Timothy W. Sargent-Vice Chair | David S. Silverman - President & CEO | ||||||||||||||||||||||||||||||||||||||||||||
| Joel S. Bourassa | Jeffrey G. Coslett- Vice President | |||||||||||||||||||||||||||||||||||||||||||||||||
| (3 months ended) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Steven J. Bourgeois | Karyn J. Hale - Chief Financial Officer | |||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and Due from Banks | $ | 4,684 | $ | 6,224 | Interest Income | $ | 9,500 | $ | 8,963 | |||||||||||||||||||||||||||||||||||||||||
| Dawn D. Bugbee | John H. Steel - Secretary | |||||||||||||||||||||||||||||||||||||||||||||||||
| John M. Goodrich | Kristy Adams Alfieri - Assistant Secretary | |||||||||||||||||||||||||||||||||||||||||||||||||
| Federal Funds Sold & Overnight Deposits | 51,822 | 35,488 | Interest Expense | 1,101 | 1,457 | Nancy C. Putnam | ||||||||||||||||||||||||||||||||||||||||||||
| Net Interest Income | 8,399 | 7,506 | David S. Silverman | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest Bearing Deposits in Banks | 14,691 | 6,067 | John H. Steel | |||||||||||||||||||||||||||||||||||||||||||||||
| Provision for Loan Losses | 150 | 300 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Investment Securities | 143,063 | 90,028 | Net Interest Income After Provision for Loan Losses | 8,249 | 7,206 | Union Bank | REGIONAL ADVISORY BOARD MEMBERS | |||||||||||||||||||||||||||||||||||||||||||
| Loans Held for Sale | 40,212 | 16,456 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Trust Income | 185 | 173 | DIRECTORS | |||||||||||||||||||||||||||||||||||||||||||||||
| Loans, net | 801,489 | 677,587 | Noninterest Income | 2,436 | 2,345 | Neil J. Van Dyke -Chair | Michael R. Barrett - St. Johnsbury | |||||||||||||||||||||||||||||||||||||||||||
Timothy W. Sargent -Vice Chair | Steven J. Bourgeois - St. Albans | |||||||||||||||||||||||||||||||||||||||||||||||||
| Reserve for Loan Losses | (8,429) | (6,391) | Noninterest Expenses: | Joel S. Bourassa | Andrew A. Dean - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||
| Salaries & Wages | 3,083 | 3,121 | Steven J. Bourgeois | Stanley T. Fillion - Northern NH | ||||||||||||||||||||||||||||||||||||||||||||||
| Premises and Equipment, net | 19,882 | 20,528 | Dawn D. Bugbee | Rosemary H. Gingue - St. Johnsbury | ||||||||||||||||||||||||||||||||||||||||||||||
| Employee Benefits | 1,169 | 982 | John M. Goodrich | John M. Goodrich - St. Johnsbury | ||||||||||||||||||||||||||||||||||||||||||||||
| Accrued Interest & other Assets | 36,904 | 37,100 | Nancy C. Putnam | Christopher M. Knapp - Northern NH | ||||||||||||||||||||||||||||||||||||||||||||||
| Gregory D. Sargent | Coleen K. Kohaut - St. Albans | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total Assets | $ | 1,104,318 | $ | 883,087 | Occupancy Expense, net | 477 | 514 | David S. Silverman | Justin P. Lavely - St. Johnsbury | |||||||||||||||||||||||||||||||||||||||||
| Janet P. Spitler | Daniel J. Luneau - St. Albans | |||||||||||||||||||||||||||||||||||||||||||||||||
| Equipment Expense | 798 | 740 | John H. Steel | Mary K. Parent - St. Johnsbury | ||||||||||||||||||||||||||||||||||||||||||||||
Samuel H. Ruggiano - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||
Christine A. Sheley - Northern NH | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Expenses | 1,926 | 1,815 | David S. Silverman - All | |||||||||||||||||||||||||||||||||||||||||||||||
Union Bank Offices (ATMs at all Branch Locations) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| LIABILITIES & SHAREHOLDERS' EQUITY | MARCH 31, 2021 | MARCH 31, 2020 | Total | 7,453 | 7,172 | |||||||||||||||||||||||||||||||||||||||||||||
| Income Before Taxes | 3,417 | 2,552 | VERMONT | |||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest Bearing Deposits | $ | 231,992 | $ | 139,963 | ||||||||||||||||||||||||||||||||||||||||||||||
| Berlin | 1028 US Route 302 | 802.476.0061 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Bearing Deposits | 648,960 | 449,943 | Income Tax Expense | 541 | 356 | Fairfax | Jct. Routes 104 & 128 | 802.849.2600 | ||||||||||||||||||||||||||||||||||||||||||
| Hardwick | 103 VT Route 15 West | 802.472.8100 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Time Deposits | 126,939 | 146,154 | Net income | $ | 2,876 | $ | 2,196 | Jeffersonville | 5062 VT Route 15 | 802.644.6600 | ||||||||||||||||||||||||||||||||||||||||
| Jericho | 368 VT Route 15 | 802.899.7500 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Borrowed Funds | 7,164 | 62,164 | Earnings per share | $ | 0.64 | $ | 0.49 | Johnson | 198 Lower Main Street | 802.635.6600 | ||||||||||||||||||||||||||||||||||||||||
| Lyndonville | 183 Depot Street | 802.626.3100 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Accrued Interest & Other Liabilities | 9,440 | 11,075 | Book Value Per Share | $ | 17.81 | $ | 16.50 | Morrisville | 20 Lower Main Street | 802.888.6600 | ||||||||||||||||||||||||||||||||||||||||
| 65 Northgate Plaza | 802.888.6860 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | 9,911 | 9,899 | St. Albans | 15 Mapleville Depot | 802.524.9000 | |||||||||||||||||||||||||||||||||||||||||||||
| St. Johnsbury | 364 Railroad Street | 802.748.3131 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Additional Paid-in Capital | 1,504 | 1,226 | 325 Portland Street | 802.748.3121 | ||||||||||||||||||||||||||||||||||||||||||||||
| Retained Earnings | Stowe | 47 Park Street | 802.253.6600 | |||||||||||||||||||||||||||||||||||||||||||||||
| 72,494 | 64,783 | Williston | Branch | |||||||||||||||||||||||||||||||||||||||||||||||
| Accumulated Other Comprehensive Income | 81 | 2,061 | 31 Market St | 802.878.7900 | ||||||||||||||||||||||||||||||||||||||||||||||
 | Loan Center | |||||||||||||||||||||||||||||||||||||||||||||||||
| 31 Market St | 802.865.1000 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Treasury Stock at Cost | (4,167) | (4,181) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Total Liabilities & Shareholders' Equity | $ | 1,104,318 | $ | 883,087 | NEW HAMPSHIRE | |||||||||||||||||||||||||||||||||||||||||||||
| Standby letters of credit were $2,609,000 and $2,306,000 at March 31, 2021 and 2020, 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 | |||||||||||||||||||||||||||||||||||||||||||||||||