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EX-99.1 - EXHIBIT 99.1 CORTESY PDF COPY - UNION BANKSHARES INCexhibit991shrptcourtesy1q.pdf
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Exhibit 99.1

ABOUT UNION BANKSHARES
 
SHAREHOLDER ASSISTANCE
AND INVESTOR INFORMATION


 
 
May 9, 2012
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 northwestern 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 has recently grown through acquisition and operates 17 banking offices, a loan center and 34 ATMs.
 
DEAR SHAREHOLDER,

The first quarter showed significant improvement over last year as assets increased 20.8% and net income 19.4% due to both organic growth and the impact of the branches acquired in May last year.
On the lending side, we continue to experience brisk resi-dential mortgage activity in refinance, purchase and con-struction loans. Interest rates have continued to remain very low, which has contributed to the loan volume. We sold into the secondary market $22.4 million in residential mortgages in the past quarter vs. $16.7 million in the first quarter last year. We remain concerned about long-term interest rate risks when interest rates trend upward, and they will eventually, fixed rate loans will negatively impact net interest income. Residential construction loans outstanding have more than doubled this spring to $15.1 million and are expected to increase more as we move into the height of the Vermont/Northern New Hampshire construction season.
On March 30th we finalized the purchase of the Littleton Main Street building in which our branch office is located. We acquired the branch office in May 2011 and with the lease up for renewal this year, it made more sense to own the entire building than to lease only a portion. With the purchase we also acquired the leases of four long-term tenants which complement nicely our branch operation in this 18,000 S.F. building.
There has been much said about the unusually mild winter, both locally and nationally. Preliminary statistics estimate "skier days" are off 15% nationally. In addition, snow mobile and cross country ski revenues were below normal. Fortunately, last summer and fall tourism revenue in our markets were strong, which helps, to some degree, offset the effects of the below average snowfall.
The day of the annual meeting is also the culmination of our management succession plan announced in November 2010. Ken Gibbons will step down as Chief Executive Officer of your Company and its subsidiary at the close of business on May 16th, and David Silverman will assume CEO responsibilities. We hope you will join us immediately following the 4 PM annual meeting at Spruce Camp Base Lodge, Stowe Mountain Resort for a celebration.
Enclosed is your dividend check or advice of deposit, rep-resenting a dividend of $0.25 per share to shareholders of record April 28, 2012, and payable May 9, 2012.


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 JoAnn Tallman, Assistant Secretary at 802-888-6600 or contact our Transfer Agent at the address and phone number listed below:
 
 
Union Bank is committed to the communities it serves, and encourages employee participation in community events and charitable services. The growing asset base of over $555 million provides the financial strength to successfully serve its constituents.
 
 
 
 
 
Transfer Agent:
Registrar & Transfer Company
Attn: Stock Transfer Department
10 Commerce Drive
Cranford, NJ 07016
Phone: 800-368-5948
Fax: 908-497-2318
E-mail: info@rtco.com
Union Bank has scored an “Outstanding” rating on all Community Reinvestment Act examinations since 1995 and has been an SBA “Preferred Lender” since 1987.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UNION BANK OFFICES
(ATMS AT ALL BRANCH LOCATIONS)
 
 
 
 
NASDAQ Stock Market
VERMONT
MORRISVILLE
S. BURLINGTON
 
Ticker Symbol:
UNB
DANVILLE
20 Lower Main St.
Loan Center
 
Corporate Name:
 Union Bankshares, Inc.
421 Route 2 East
802-888-6600
30 Kimball Ave.
 
Corporate Address:
 20 Lower Main Street
802-684-2211
65 Northgate Plaza
802-865-1000
 
 
PO Box 667
FAIRFAX
Route 100
STOWE
 
 
Morrisville, VT 05661-0667
Jct. Rtes. 104&128
802-888-6860
47 Park St.
 
Investor Relations:
 www.UnionBankVT.com
802-849-2600
ST. ALBANS
802-253-6600
 
 
 
HARDWICK
15 Mapleville Depot
NEW HAMPSHIRE
 
 
 
103 VT Rte. 15
802-524-9000
GROVETON
 
 
 
802-472-8100
ST. JOHNSBURY
3 State Street
 
 
 
JEFFERSONVILLE
364 Railroad St.
603-636-1611
 
 
 
44 Main St.
802-748-3131
LITTLETON
 
 
 
802-644-6600
325 Portland St.
263 Dells Road
 
 
 
JOHNSON
802-748-3121
603-444-7136
 
 
 
198 Lower Main St.
Green Mtn. Mall
76 Main Street
 
 
 
802-635-6600
1998 Memorial Dr.
603-444-5321
 
LYNDONVILLE
802-748-2454
N. WOODSTOCK
 
183 Depot St.
 
155 Main Street
 
 
802-626-3100
 
603-745-2488
 








First Quarter Financial Report
 
 
CONSOLIDATED BALANCE SHEETS (unaudited, in thousands)
 
 
ASSETS
 
March 31, 2012
 
March 31, 2011
 
DIRECTORS - UNION BANKSHARES, INC.
OFFICERS - UNION BANK
Cash and due from banks
 
 
$
5,050

 
$
5,154

 
 
William J. Andreas-Vice President
Littleton
Federal funds sold & overnight deposits
 
 
14,443

 
24,842

Kenneth D. Gibbons-Chairman
David S. Silverman
Tracy Pierce Ash-Assistant Treasurer
Littleton
Interest bearing deposits in banks
 
 
23,482

 
13,065

Cynthia D. Borck
John H. Steel
Rhonda L. Bennett-Vice President
Morrisville
Investment securities
 
 
46,198

 
25,987

Steven J. Bourgeois
Schuyler W. Sweet
Jessica L. Bunnell-Residential Loan Officer
St. Johnsbury
Loans held for sale
 
 
12,084

 
2,614

Timothy W. Sargent
Neil J. Van Dyke
Therese H. Butler-Assistant Vice President
Morrisville
Loans, net
 
 
425,640

 
369,290

 
 
Stacey L.B. Chase-Assistant Treasurer
Morrisville
Reserve for loan losses
 
 
(4,406
)
 
(3,908
)
 
 
Jeffrey S. Ciochetto-Senior Vice President
Morrisville
Premises and equipment, net
 
 
10,368

 
7,896

DIRECTORS - UNION BANK
Jeffrey G. Coslett-Senior Vice President
Morrisville
Other real estate owned, net
 
 
1,426

 
1,410

 
 
John Currier-Assistant Vice President
Groveton
Accrued interest & other assets
 
 
21,117

 
13,302

Kenneth D. Gibbons-Chairman
David S. Silverman
Michael C. Curtis-Vice President
St. Albans
Total Assets
 
 
$
555,402

 
$
459,652

Cynthia D. Borck
John H. Steel
Peter J. Eley-SVP, Managing Trust Officer
Morrisville
LIABILITIES & SHAREHOLDERS' EQUITY
 
 
 
Steven J. Bourgeois
Schuyler W. Sweet
Kenneth D. Gibbons-Chairman & CEO
Morrisville
Noninterest bearing deposits
 
 
$
75,511

 
$
61,362

Timothy W. Sargent
Neil J. Van Dyke
Don D. Goodhue-Vice President
Morrisville
Interest bearing deposits
 
 
249,312

 
195,136

 
 
Melissa A. Greene-Asst. Vice President
Hardwick
Time deposits
 
 
153,187

 
127,521

 
 
Karyn J. Hale-Vice President
Morrisville
Borrowed funds
 
 
27,281

 
26,892

OFFICERS - UNION BANKSHARES, INC.
Claire A. Hindes-Asst. Vice President
Morrisville
Accrued interest & other liabilities
 
 
9,617

 
6,960

 
Robert D. Hofmann-Senior Vice President
Morrisville
Common stock
 
 
9,847

 
9,847

Kenneth D. Gibbons-Chairman & CEO
Patricia N. Hogan-Vice President
Morrisville
Additional paid-in capital
 
 
280

 
267

David S. Silverman-President
 
Tracey D. Holbrook-Regional Vice Pres.
St. Johnsbury
Retained earnings
 
 
38,498

 
37,537

Marsha A. Mongeon-Vice President/Treasurer/CFO
Lura L. Jacques-Asst. VP, Trust Officer
St. Albans
Accumulated other comprehensive loss
 
 
(4,295
)
 
(2,047
)
John H. Steel-Secretary
 
Lynne P. Jewett-Assistant Vice President
Morrisville
Treasury stock at cost
 
 
(3,836
)
 
(3,823
)
JoAnn A. Tallman-Assistant Secretary
Stephen H. Kendall-Vice President
Morrisville
Total Liabilities & Shareholders' Equity
 
$
555,402

 
$
459,652

 
 
Dennis J. Lamothe-Vice President
St. Johnsbury
Standby letters of credit were $1,949,000 and $1,433,000 at March 31, 2012 and 2011, respectively.
 
 
Susan F. Lassiter-Vice President
Jeffersonville
 
 
 
 
 
 
REGIONAL ADVISORY BOARDS
Christine S. Latulip-Regional Vice President
Littleton
CONSOLIDATED STATEMENTS OF INCOME (unaudited, in thousands)
 
 
Edward L. Levite-Senior Loan Originator
So. Burlington
 
 
March 31, 2012
 
March 31, 2011
 
NORTHERN NEW HAMPSHIRE
Virginia M. Locke-Assistant Vice President
Littleton
 
 
 
 
Judy F. Aydelott
Schuyler W. Sweet
Carrie R. Locklin-Assistant Vice President
Morrisville
Interest income
 
 
$
6,196

 
$
5,498

Joel S. Bourassa
Norrine A. Williams
Robyn A. Masi-Vice President
Stowe
Interest expense
 
 
910

 
961

Stanley T. Fillion
 
Sherrie A. Menard-Assistant Vice President
Morrisville
Net interest income


5,286

 
4,537

 
 
Marsha A. Mongeon-Sr. Vice President, CFO
Morrisville
Provision for loan losses
 
 
180

 
150

ST. ALBANS
Karen Carlson Noyes-Vice President
Morrisville
Net interest income after


5,106

 
4,387

Steven J. Bourgeois
Daniel J. Luneau
Barbara A. Olden-Vice President
St. Johnsbury
provision for loan losses
 
 
 
 
 
Coleen K. Kohaut
Samuel H. Ruggiano
Deborah J. Partlow-Asst. VP, Sr. Trust Officer
Morrisville
Trust income
 
 
147

 
132

 
 
Bradley S. Prior-Assistant Treasurer
Morrisville
Noninterest income
 
 
1,756

 
1,269

ST. JOHNSBURY
Craig S. Provost-Vice President
Stowe
Noninterest expenses:
 
 
 
 
 
J.R. Alexis Clouatre
Rosemary H. Gingue
Robert J. Richardson-Vice President
Morrisville
Salaries & wages
 
 
2,234

 
1,730

Dwight A. Davis
Justin P. Lavely
David S. Silverman-President
Morrisville
Pension & employee benefits
 
 
1,058

 
817

Kirk Dwyer
Nancy J. Poulos
Judy R. Smith-Assistant Vice President
St. Albans
Occupancy expense, net
 
 
344

 
290

 
 
John H. Steel-Secretary
Morrisville
Equipment expense
 
 
345

 
296

ALL: Kenneth D. Gibbons
Curtis C. Swan-Assistant Vice President
Fairfax
Other expenses
 
 
1,560

 
1,447

 
 
JoAnn A. Tallman-Assistant Secretary
Morrisville
Total


5,541

 
4,580

 
 
Francis E. Welch-Assistant Vice President
Morrisville
Income before taxes


1,468

 
1,208

 
 
Martha J. Wilkins-Assistant Treasurer
Lyndonville
Income tax expense
 
 
241

 
180

 
 
Lorraine G. Willett-Assistant Vice President
Morrisville
Net income


$
1,227

 
$
1,028

 
 
 
 
Earnings per share
 
 
$
0.28

 
$
0.23

 
 
 
 
Book value per share
 
 
$
9.09

 
$
9.37