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| 8-K - BODY OF FORM 8-K - UNION BANKSHARES INC | unb-20200806.htm |
Exhibit 99.1
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| August 6, 2020 | ||||||||||||||||||||||||||
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| We are enclosing our press release dated July 15, 2020 which details our operating results for the second quarter of 2020 and year to date through June 30th. This allows us to provide more information to you about bank operations and local economic conditions, and potential impact on your company’s financial performance, all in the context of the pandemic health crisis our country faces. Thus far, the areas we serve, Northern Vermont and Northern New Hampshire, have fared well during the pandemic from a human health standpoint. Bank operations have settled into a “new normal” as our branch lobbies have re-opened with plexiglass shields at teller windows, limits on the number of customers entering at a given time, and staff wearing masks. We have approximately 60 employees now working from home that we are not yet ready to bring back into bank facilities, though some are more than ready to return. We are developing a plan for bringing staff back into our offices while following appropriate social distancing protocols. We, like many businesses, are anxiously watching how schools and daycare facilities are going to operate this fall as this will greatly impact our workforce. As the pandemic has unfolded, the economic impact on our communities has been uneven, with both positive and negative consequences for the people and businesses in our region. The variables have been government directives, the consumer’s reaction to the pandemic, and the creativity and resilience of business managers. Government directives for businesses to close and requiring people to stay home have obviously had a deleterious effect on all businesses not deemed “essential.” Many of these businesses such as residential construction, farm and garden, outdoor recreation retailers, and take out food service have roared back to life and in some cases are exceeding pre-pandemic sales as government restrictions have been lifted. Lodging and “dine in” restaurants and their employees continue to have their sales volumes off, in many cases significantly. As we | discussed in our first quarter letter, we have participated fully in the SBA Payroll Protection Program and been able to grant nearly $70 million of these 100% government guaranteed loans to our business customer base. Between the PPP loan program and other loan and grant programs we believe that the majority of our business customers are financially stable, at least temporarily. The federal and state assistance is serving to mask the potential long-term impacts of the pandemic caused recession on many of our business borrowers. We are continually assessing our asset quality by staying close to our customers with regular communications so we may assist them assess their individual circumstances. and understand which borrowers may ultimately default. The very low interest rate environment is creating challenges and opportunities for the bank. While our net interest margin is being squeezed, mortgage lending is much busier than expected. This is benefiting us as we generate gains on residential loans sold on the secondary market. Long term, our region and economy are benefiting from families relocating to our rural, less densely populated region, reversing a persistent outmigration trend. Thus far in 2020 we have substantially increased our Loan Loss Reserve compared to prior years. Management continues to monitor the variables that impact the loan loss reserve which may warrant further increases in reserves for the balance of 2020. We considered the adequacy of our loan loss reserve, our overall capitalization, and our strong earnings year to date when the Board of Directors approved a 32 cent per share dividend, to holders of record as of July 27, 2020, payable on August 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 | ||||||||||||||||||||||||||
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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 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 | JUNE 30, 2020 | JUNE 30, 2019 | JUNE 30, 2020 | JUNE 30, 2019 | JUNE 30, 2020 | JUNE 30, 2019 | Timothy W. Sargent-Vice Chair | David S. Silverman - President & CEO | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Joel S. Bourassa | Jeffrey G. Coslett- Vice President | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (3 months ended) | (6 months ended) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Steven J. Bourgeois | Karyn J. Hale - Chief Financial Officer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and Due from Banks | $ | 6,049 | $ | 4,285 | Interest Income | $ | 9,139 | $ | 8,904 | $ | 18,102 | $ | 17,496 | ||||||||||||||||||||||||||||||||||||||||||||||
| Dawn D. Bugbee | John H. Steel - Secretary | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| John M. Goodrich | Kristy Adams Alfieri - Assistant Secretary | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Federal Funds Sold & Overnight Deposits | 30,579 | 21,404 | Interest Expense | 1,361 | 1,397 | 2,818 | 2,624 | Nancy C. Putnam | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Interest Income | 7,778 | 7,507 | 15,284 | 14,872 | David S. Silverman | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Bearing Deposits in Banks | 9,802 | 7,311 | John H. Steel | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision for Loan Losses | 500 | 150 | 800 | 200 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment Securities | 86,221 | 80,568 | Net Interest Income After Provision for Loan Losses | 7,278 | 7,357 | 14,484 | 14,672 | Union Bank | REGIONAL ADVISORY BOARD MEMBERS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans Held for Sale | 43,550 | 8,983 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Trust Income | 178 | 183 | 351 | 351 | DIRECTORS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans, net | 691,837 | 606,474 | Noninterest Income | 2,810 | 2,288 | 5,155 | 4,352 | Neil J. Van Dyke -Chair | Michael R. Barrett - St. Johnsbury | ||||||||||||||||||||||||||||||||||||||||||||||||||
Timothy W. Sargent -Vice Chair | Steven J. Bourgeois - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reserve for Loan Losses | (6,888) | (5,676) | Noninterest Expenses: | Joel S. Bourassa | Andrew A. Dean - Northern NH | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Salaries & Wages | 2,829 | 2,903 | 5,950 | 5,701 | Steven J. Bourgeois | Stanley T. Fillion - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Premises and Equipment, net | 20,379 | 21,259 | Dawn D. Bugbee | Rosemary H. Gingue - St. Johnsbury | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Employee Benefits | 1,231 | 1,062 | 2,213 | 2,061 | John M. Goodrich | John M. Goodrich - St. Johnsbury | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accrued Interest & other Assets | 35,554 | 29,280 | Nancy C. Putnam | Christopher M. Knapp - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gregory D. Sargent | Coleen K. Kohaut - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Assets | $ | 917,083 | $ | 773,888 | Occupancy Expense, net | 477 | 421 | 991 | 859 | David S. Silverman | Justin P. Lavely - St. Johnsbury | ||||||||||||||||||||||||||||||||||||||||||||||||
| John H. Steel | Daniel J. Luneau - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equipment Expense | 756 | 574 | 1,496 | 1,139 | Mary K. Parent - St. Johnsbury | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Samuel H. Ruggiano - St. Albans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Christine A. Sheley - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Expenses | 1,818 | 1,840 | 3,633 | 3,567 | David S. Silverman - All | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Union Bank Offices (ATMs at all Branch Locations) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LIABILITIES & SHAREHOLDERS' EQUITY | JUNE 30, 2020 | JUNE 30, 2019 | Total | 7,111 | 6,800 | 14,283 | 13,327 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Before Taxes | 3,155 | 3,028 | 5,707 | 6,048 | VERMONT | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest Bearing Deposits | $ | 188,741 | $ | 128,010 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Berlin | 1028 US Route 302 | 802.476.0061 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Bearing Deposits | 484,496 | 365,645 | Income Tax Expense | 487 | 498 | 843 | 897 | Fairfax | Jct. Routes 104 & 128 | 802.849.2600 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Hardwick | 103 VT Route 15 West | 802.472.8100 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Time Deposits | 146,255 | 159,145 | Net income | $ | 2,668 | $ | 2,530 | $ | 4,864 | $ | 5,151 | Jeffersonville | 5062 VT Route 15 | 802.644.6600 | |||||||||||||||||||||||||||||||||||||||||||||
| Jericho | 368 VT Route 15 | 802.899.7500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Borrowed Funds | 9,497 | 42,381 | Earnings per share | $ | 0.60 | $ | 0.56 | $ | 1.09 | $ | 1.15 | Johnson | 198 Lower Main Street | 802.635.6600 | |||||||||||||||||||||||||||||||||||||||||||||
| Lyndonville | 183 Depot Street | 802.626.3100 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accrued Interest & Other Liabilities | 12,327 | 9,971 | Book Value Per Share | $ | 16.93 | $ | 15.38 | Morrisville | 20 Lower Main Street | 802.888.6600 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 65 Northgate Plaza | 802.888.6860 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | 9,901 | 9,890 | St. Albans | 15 Mapleville Depot | 802.524.9000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| St. Johnsbury | 364 Railroad Street | 802.748.3131 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Additional Paid-in Capital | 1,306 | 1,020 | 325 Portland Street | 802.748.3121 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retained Earnings | Stowe | 47 Park Street | 802.253.6600 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 66,020 | 61,292 | Williston | Branch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accumulated Other Comprehensive Income (Loss) | 2,717 | 722 | 31 Market St | 802.878.7900 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
 | Loan Center | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 31 Market St | 802.865.1000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Treasury Stock at Cost | (4,177) | (4,188) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Liabilities & Shareholders' Equity | $ | 917,083 | $ | 773,888 | NEW HAMPSHIRE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Standby letters of credit were $2,346,009 and $2,078,000 at June 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||