Attached files
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| 8-K - BODY OF FORM 8-K - UNION BANKSHARES INC | unb-20210205.htm |
Exhibit 99.1
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| February 5, 2021 | ||||||||||||||||||||||||||
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| We are pleased to greet you in this new year. As we have in past quarters, the press release is enclosed announcing year end results to save room to provide more detail on bank matters, including our current state of operations and impacts on our customers, communities, and our staff. We are naturally pleased to inform you that we generated record earnings for 2020 of $12.8 million, compared to $10.6 million in earnings in 2019, our previous record. During 2020, our balance sheet grew 25%, cresting the $1 Billion mark for the first time. Candidly, we did not expect this level of earnings and growth when we began the year, and would not have predicted it once the pandemic was in full bloom. A fortunate confluence of events plus a great deal of hard work by our dedicated staff allowed us to take advantage of the unique circumstances. The Federal Reserve’s reaction to the pandemic was swift and massive. They simultaneously dropped short term interest rates and increased their purchases of financial assets, flooding the markets with liquidity that eventually found its way to bank balance sheets, including Union’s. The resulting sharp drop in residential loan interest rates sparked residential purchase financings and residential re-financings, increasing our loan volume dramatically, which in turn generated a significant increase in fee income from premiums on the sale of loans to the secondary market. In addition, the fee income generated from the origination of US Small Business Association (SBA) Payroll Protection Program (PPP) loans, unplanned for in our budget process, also helped our bottom line. We are writing this letter during a light snow fall with our surrounding mountains barely visible behind clouds, simulating the lack of clarity we have to future economic conditions. We have been working with our consumer and business customers using loan modifications, forbearances and various Federal | and State programs to keep our customers in their homes and in business. We are now processing the second draw SBA PPP program, targeted at the businesses and nonprofits hardest hit by the pandemic. Though administering this program has been taxing on our team, it has been a needed lifeline for our business community who have suffered severe declines in revenue through no fault of their own. The re-opening of our economy and our general wellbeing is largely dependent on the distribution and acceptance of the COVID vaccination. Thus far, the distribution has not gone well, delaying the economic recovery further and causing greater health problems. Our balance sheet and loan loss reserve are well positioned to absorb potential losses that may or may not materialize. Operationally, we remain in a guarded stance, keeping our branch lobbies closed with access-by-appointment and continuing to have approximately 80 of our staff work from home with others dispersed at bank facilities throughout our footprint. We continue to offer our full range of services, though in some cases using different distribution channels. It is unlikely that we will be able to resume normal operations until late Spring at the earliest. Similarly, it is unlikely that we will be able to host our Annual Meeting in May in person. This is truly unfortunate, as we really enjoy visiting with our shareholders at the Annual Meeting. We are pleased to inform you that the Board of Directors declared an increase in the cash dividend to $0.33 per share for the quarter, payable February 5, 2021 to shareholders of record as of February 1, 2021. 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 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 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 | DEC 31, 2020 | DEC 31, 2019 | DEC 31, 2020 | DEC 31, 2019 | DEC 31, 2020 | DEC 31, 2019 | Timothy W. Sargent-Vice Chair | David S. Silverman - President & CEO | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Joel S. Bourassa | Jeffrey G. Coslett- Vice President | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (3 months ended) | (12 months ended) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Steven J. Bourgeois | Karyn J. Hale - Chief Financial Officer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and Due from Banks | $ | 5,413 | $ | 5,405 | Interest Income | $ | 9,305 | $ | 9,234 | $ | 36,750 | $ | 35,870 | ||||||||||||||||||||||||||||||||||||||||||||||
| Dawn D. Bugbee | John H. Steel - Secretary | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| John M. Goodrich | Kristy Adams Alfieri - Assistant Secretary | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Federal Funds Sold & Overnight Deposits | 117,358 | 45,729 | Interest Expense | 1,171 | 1,483 | 5,147 | 5,600 | Nancy C. Putnam | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Interest Income | 8,134 | 7,751 | 31,603 | 30,270 | David S. Silverman | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Bearing Deposits in Banks | 12,699 | 6,565 | John H. Steel | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision for Loan Losses | 600 | 425 | 2,200 | 775 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment Securities | 106,810 | 88,083 | Net Interest Income After Provision for Loan Losses | 7,534 | 7,326 | 29,403 | 29,495 | Union Bank | REGIONAL ADVISORY BOARD MEMBERS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans Held for Sale | 32,188 | 7,442 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Trust Income | 183 | 173 | 707 | 692 | DIRECTORS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans, net | 771,023 | 671,287 | Noninterest Income | 4,806 | 2,856 | 15,296 | 9,763 | Neil J. Van Dyke -Chair | Michael R. Barrett - St. Johnsbury | ||||||||||||||||||||||||||||||||||||||||||||||||||
Timothy W. Sargent -Vice Chair | Steven J. Bourgeois - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reserve for Loan Losses | (8,271) | (6,122) | Noninterest Expenses: | Joel S. Bourassa | Andrew A. Dean - Northern NH | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Salaries & Wages | 3,552 | 3,048 | 13,220 | 11,821 | Steven J. Bourgeois | Stanley T. Fillion - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Premises and Equipment, net | 20,040 | 20,923 | Dawn D. Bugbee | Rosemary H. Gingue - St. Johnsbury | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Employee Benefits | 1,163 | 1,102 | 4,580 | 4,210 | John M. Goodrich | John M. Goodrich - St. Johnsbury | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accrued Interest & other Assets | 36,767 | 33,600 | Nancy C. Putnam | Christopher M. Knapp - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gregory D. Sargent | Coleen K. Kohaut - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Assets | $ | 1,094,027 | $ | 872,912 | Occupancy Expense, net | 394 | 519 | 1,805 | 1,806 | David S. Silverman | Justin P. Lavely - St. Johnsbury | ||||||||||||||||||||||||||||||||||||||||||||||||
| John H. Steel | Daniel J. Luneau - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equipment Expense | 788 | 711 | 3,054 | 2,475 | Mary K. Parent - St. Johnsbury | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Samuel H. Ruggiano - St. Albans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Christine A. Sheley - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Expenses | 2,007 | 1,760 | 7,523 | 7,160 | David S. Silverman - All | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Union Bank Offices (ATMs at all Branch Locations) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LIABILITIES & SHAREHOLDERS' EQUITY | DEC 31, 2020 | DEC 31, 2019 | Total | 7,904 | 7,140 | 30,182 | 27,472 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Before Taxes | 4,619 | 3,215 | 15,224 | 12,478 | VERMONT | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest Bearing Deposits | $ | 215,245 | $ | 136,434 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Berlin | 1028 US Route 302 | 802.476.0061 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Bearing Deposits | 637,369 | 458,940 | Income Tax Expense | 825 | 456 | 2,419 | 1,830 | Fairfax | Jct. Routes 104 & 128 | 802.849.2600 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Hardwick | 103 VT Route 15 West | 802.472.8100 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Time Deposits | 141,688 | 148,653 | Net income | $ | 3,794 | $ | 2,759 | $ | 12,805 | $ | 10,648 | Jeffersonville | 5062 VT Route 15 | 802.644.6600 | |||||||||||||||||||||||||||||||||||||||||||||
| Jericho | 368 VT Route 15 | 802.899.7500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Borrowed Funds | 7,164 | 47,164 | Earnings per share | $ | 0.85 | $ | 0.61 | $ | 2.86 | $ | 2.38 | Johnson | 198 Lower Main Street | 802.635.6600 | |||||||||||||||||||||||||||||||||||||||||||||
| Lyndonville | 183 Depot Street | 802.626.3100 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accrued Interest & Other Liabilities | 11,694 | 9,878 | Book Value Per Share | $ | 18.05 | $ | 16.06 | Morrisville | 20 Lower Main Street | 802.888.6600 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 65 Northgate Plaza | 802.888.6860 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | 9,910 | 9,897 | St. Albans | 15 Mapleville Depot | 802.524.9000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| St. Johnsbury | 364 Railroad Street | 802.748.3131 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Additional Paid-in Capital | 1,393 | 1,124 | 325 Portland Street | 802.748.3121 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retained Earnings | Stowe | 47 Park Street | 802.253.6600 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 71,097 | 64,019 | Williston | Branch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accumulated Other Comprehensive Income | 2,636 | 986 | 31 Market St | 802.878.7900 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
 | Loan Center | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 31 Market St | 802.865.1000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Treasury Stock at Cost | (4,169) | (4,183) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Liabilities & Shareholders' Equity | $ | 1,094,027 | $ | 872,912 | NEW HAMPSHIRE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Standby letters of credit were $3,092,000 and $2,308,000 at December 31, 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||