Exhibit 99.1
November 4, 2021 | ||||||||||||||||||||||||||
We are pleased to report our financial results for the three and nine months ended September 30, 2021. Consolidated net income for the three months ended September 30, 2021 was $3.9 million, compared to $4.1 million for the same period in 2020 and $9.8 million for the nine months ended September 30, 2021, compared to $9.0 million, for the same period in 2020, an 8.7% year over year improvement. Consolidated net income was $9.8 million, or $2.18 per share, compared to $9.0 million, or $2.01 per share, for the nine months ended September 30, 2021 and 2020, respectively. The increase in earnings was due to an increase of $3.0 million in net interest income and a decrease of $1.4 million in the provision for loan losses, partially offset by a decrease in noninterest income of $1.1 million and increases in noninterest expenses of $2.1 million and income tax expense of $424 thousand. Deposit growth during 2021 has continued to outpace expectations, fueled by various Federal and State stimulus programs related to the ongoing pandemic. As a result, total assets increased to $1.16 billion as of September 30, 2021 from $1.01 billion as of September 30, 2020. Total loans were $790.0 million as of September 30, 2021 compared to $798.3 million as of September 30, 2020, a decrease of $8.3 million primarily due to sales of residential loans and PPP loan forgiveness. Since the beginning of the pandemic we have been closely monitoring our loan portfolio, particularly within the hard-hit hospitality industry. We are pleased to report that the vast majority of our commercial loan relationships have completed payment modification and forbearance arrangements and are now back to their scheduled payments. Because of this and other positive factors, no provision for loan losses was recorded for the three months ended September 30, 2021 compared to $800 thousand for the same period in 2020. | On August 26, 2021 we announced that we had completed a private placement of $16.5 million in aggregate principal amount of fixed-to-floating rate subordinated notes due 2031 to certain qualified institutional buyers and accredited investors at a favorable coupon of 3.25%. Proceeds from the sale of the notes were used to provide additional capital support to the Company’s wholly-owned subsidiary, Union Bank, primarily to support the significant growth in its balance sheet over the past two years. We are pleased to announce the opening of our new Shelburne, Vermont branch office on October 4, 2021. This coupled with the other two Chittenden County branches we opened in the summer of 2019 in Williston and Jericho represent a meaningful investment in Vermont’s most populous county. New branches may not be immediately accretive to earnings, but we believe they represent long investments in our future that will be accretive to earnings over the long run. While we are writing this letter in late October, the beginning of our long, dark and dreary “stick season”, we cannot help but reflect on the fall foliage season just ended. It was one for the record books, with glorious colors, warm weather, and bustling highways, byways, villages and mountains. Good for local souls and pocket books. The Board of Directors declared a cash dividend of $0.33 per share for the quarter payable November 4, 2021 to shareholders of record as of October 30, 2021. Please find your dividend check or advice of remittance enclosed. Please contact Kristy Adams Alfieri at 802.888.0982 to receive your dividend using direct deposit. 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 18 banking offices, three 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 | SEPT 30, 2021 | SEPT 30, 2020 | SEPT 30, 2021 | SEPT 30, 2020 | SEPT 30, 2021 | SEPT 30, 2020 | Timothy W. Sargent-Vice Chair | David S. Silverman - President & CEO | |||||||||||||||||||||||||||||||||||||||||||||||||||
Joel S. Bourassa | Jeffrey G. Coslett- Vice President | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(3 months ended) | (9 months ended) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dawn D. Bugbee | Karyn J. Hale - Chief Financial Officer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Due from Banks | $ | 5,029 | $ | 5,100 | Interest Income | $ | 9,852 | $ | 9,343 | $ | 29,250 | $ | 27,445 | ||||||||||||||||||||||||||||||||||||||||||||||
John M. Goodrich | John H. Steel - Secretary | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nancy C. Putnam | Kristy Adams Alfieri - Assistant Secretary | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal Funds Sold & Overnight Deposits | 115,052 | 59,377 | Interest Expense | 706 | 1,158 | 2,786 | 3,976 | Gregory D. Sargent | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net Interest Income | 9,146 | 8,185 | 26,464 | 23,469 | David S. Silverman | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Bearing Deposits in Banks | 12,201 | 8,964 | John H. Steel | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for Loan Losses | — | 800 | 225 | 1,600 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | 185,387 | 88,994 | Net Interest Income After Provision for Loan Losses | 9,146 | 7,385 | 26,239 | 21,869 | Union Bank | REGIONAL ADVISORY BOARD MEMBERS | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Held for Sale | 17,821 | 32,803 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trust Income | 216 | 173 | 599 | 524 | DIRECTORS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, net | 772,222 | 765,514 | Noninterest Income | 3,985 | 5,335 | 9,362 | 10,490 | Neil J. Van Dyke -Chair | Michael R. Barrett - St. Johnsbury | ||||||||||||||||||||||||||||||||||||||||||||||||||
Timothy W. Sargent -Vice Chair | Steven J. Bourgeois - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reserve for Loan Losses | (8,561) | (7,691) | Noninterest Expenses: | Joel S. Bourassa | Andrew A. Dean - Northern NH | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Salaries & Wages | 3,918 | 3,718 | 10,554 | 9,668 | Dawn D. Bugbee | Stanley T. Fillion - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and Equipment, net | 21,808 | 20,452 | John M. Goodrich | Rosemary H. Gingue - St. Johnsbury | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefits | 1,192 | 1,204 | 3,564 | 3,417 | Nancy C. Putnam | John M. Goodrich - St. Johnsbury | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Interest & other Assets | 37,327 | 35,622 | Gregory D. Sargent | Christopher M. Knapp - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
David S. Silverman | Coleen K. Kohaut - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Assets | $ | 1,158,286 | $ | 1,009,135 | Occupancy Expense, net | 425 | 420 | 1,429 | 1,411 | Janet P. Spitler | Justin P. Lavely - St. Johnsbury | ||||||||||||||||||||||||||||||||||||||||||||||||
John H. Steel | Daniel J. Luneau - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equipment Expense | 872 | 770 | 2,542 | 2,266 | Mary K. Parent - St. Johnsbury | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Samuel H. Ruggiano - St. Albans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Christine A. Sheley - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY | SEPT 30, 2021 | SEPT 30, 2020 | Other Expenses | 2,141 | 1,883 | 6,301 | 5,516 | David S. Silverman - All | |||||||||||||||||||||||||||||||||||||||||||||||||||
Union Bank Offices (ATMs at all Branch Locations) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 8,548 | 7,995 | 24,390 | 22,278 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest Bearing Deposits | $ | 252,940 | $ | 204,555 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Before Taxes | 4,799 | 4,898 | 11,810 | 10,605 | VERMONT | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Bearing Deposits | 680,438 | 562,970 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Berlin | 1028 US Route 302 | 802.476.0061 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Time Deposits | 107,266 | 142,554 | Income Tax Expense | 874 | 751 | 2,018 | 1,594 | Fairfax | Jct. Routes 104 & 128 | 802.849.2600 | |||||||||||||||||||||||||||||||||||||||||||||||||
Hardwick | 103 VT Route 15 West | 802.472.8100 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowed Funds | 7,000 | 9,497 | Net income | $ | 3,925 | $ | 4,147 | $ | 9,792 | $ | 9,011 | Jeffersonville | 5062 VT Route 15 | 802.644.6600 | |||||||||||||||||||||||||||||||||||||||||||||
Jericho | 368 VT Route 15 | 802.899.7500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subordinated Debentures and Notes | 16,164 | — | Earnings per share | $ | 0.87 | $ | 0.92 | $ | 2.18 | $ | 2.01 | Johnson | 198 Lower Main Street | 802.635.6600 | |||||||||||||||||||||||||||||||||||||||||||||
Lyndonville | 183 Depot Street | 802.626.3100 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Interest & Other Liabilities | 10,730 | 11,135 | Book Value Per Share | $ | 18.67 | $ | 17.52 | Morrisville | 20 Lower Main Street | 802.888.6600 | |||||||||||||||||||||||||||||||||||||||||||||||||
65 Northgate Plaza | 802.888.6860 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | 9,918 | 9,901 | Shelburne | 5068 Shelburne Road | 802.985.0250 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
St. Albans | 15 Mapleville Depot | 802.524.9000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Paid-in Capital | 1,728 | 1,368 | St. Johnsbury | Operations and Loan Center | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retained Earnings | 364 Railroad Street | 802.748.3131 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
76,452 | 68,735 | Branch | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | (188) | 2,593 | 325 Portland Street | 802.748.3121 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stowe | 47 Park Street | 802.253.6600 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Williston | Branch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury Stock at Cost | (4,162) | (4,173) | 31 Market St | 802.878.7900 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Center | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 1,158,286 | $ | 1,009,135 | 31 Market St | 802.865.1000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Standby letters of credit were $2,364,000 and $3,113,000 at September 30, 2021 and 2020, respectively. | NEW HAMPSHIRE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |