Exhibit 99.1
February 3, 2022 | ||||||||||||||||||||||||||
We are pleased to report our full year 2021 financial results.Consolidated net income was $13.2 million, or $2.94 per share,compared to $12.8 million, or $2.86 per share, for the year ended December 31, 2021 and 2020, respectively. The improvement in earnings was due to a $4.1 million increase in net interest income and a decrease of $2.2 million in the provision for loan losses, partially offset by a decrease in noninterest income of $3.0 million and increases in noninterest expenses of $2.7 million and income tax expense of $227 thousand. Total assets increased to $1.2 billion as of December 31, 2021, from $1.1 billion as of December 31, 2020, growth of $112.1 million, or 10.3%. Balance sheet growth was driven by an increase in customer deposit balances of $100.8 million which funded loan originations and increases in investment securities. The investment portfolio, including interest bearing deposits in banks, increased $162.6 million, or 136.1%, to $282.1 million as of December 31, 2021, from $119.5 million as of December 31, 2020, as higher yields were sought on excess liquidity. Outstanding loan balances were $801.6 million as of December 31, 2021, compared to $803.2 million as of December 31, 2020. Contributing to the slight decrease in outstanding loans year over year was $52.7 million of SBA PPP loans forgiven throughout 2021. During 2020 and 2021, customer deposits have increased $351.1 million, a direct result of monetary and fiscal stimulus at the federal level. Those monies were utilized to fund loan originations and investment purchases. The loan portfolio increased $122.9 million and the investment portfolio increased $187.5 million. We would prefer to deploy funds into loans in order to maximize yield, but it takes longer to carefully source, underwrite, and originate sound and profitable loans than it does to acquire government debt securities. As announced on August 26, 2021, the Company 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. Proceeds from the sale of the notes were used to provide additional capital support to the Company’s wholly-owned subsidiary, Union Bank, to support growth and for other general corporate purposes. The Directors and Management are pleased to have timed the debt issuance to obtain a favorable initial coupon of 3.25%. Looking back at 2020 and 2021 from the Company’s perspective, we are extremely fortunate to have fared as well as we did. Most of our business and retail customers have survived and in some cases are doing much better than in 2019, the last year untouched by the pandemic. Monetary and fiscal policy at the federal level dampened the negative economic impact of the pandemic, though it undeniably harmed those less fortunate among us. Currently, the most immediate challenges our customers (and the bank) are facing include maintaining a stable workforce, supply chain disruptions and elevated inflation. We are blessed to occupy an area much loved by leisure travelers for our variety of outdoor recreation opportunities and world class hospitality amenities. Demand for travel to our area has been excellent. We are pleased to inform you that the Board of Directors declared a cash dividend of $0.35 per share at our meeting held on January 19, 2022, an increase of 6.1% from the cash dividend of $0.33 paid in recent prior quarters, payable February 3, 2022 to shareholders of record as of January 29, 2022. 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 | DEC 31, 2021 | DEC 31, 2020 | DEC 31, 2021 | DEC 31, 2020 | DEC 31, 2021 | DEC 31, 2020 | Timothy W. Sargent-Vice Chair | David S. Silverman - President & CEO | |||||||||||||||||||||||||||||||||||||||||||||||||||
Joel S. Bourassa | Jeffrey G. Coslett- Vice President | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(3 months ended) | (12 months ended) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dawn D. Bugbee | Karyn J. Hale - Chief Financial Officer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Due from Banks | $ | 4,659 | $ | 5,413 | Interest Income | $ | 10,023 | $ | 9,305 | $ | 39,273 | $ | 36,750 | ||||||||||||||||||||||||||||||||||||||||||||||
John M. Goodrich | John H. Steel - Secretary | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nancy C. Putnam | Kristy Adams Alfieri - Assistant Secretary | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal Funds Sold & Overnight Deposits | 61,263 | 117,358 | Interest Expense | 779 | 1,171 | 3,565 | 5,147 | Gregory D. Sargent | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net Interest Income | 9,244 | 8,134 | 35,708 | 31,603 | David S. Silverman | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Bearing Deposits in Banks | 13,196 | 12,699 | John H. Steel | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for Loan Losses | (225) | 600 | — | 2,200 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | 268,951 | 106,810 | Net Interest Income After Provision for Loan Losses | 9,469 | 7,534 | 35,708 | 29,403 | Union Bank | REGIONAL ADVISORY BOARD MEMBERS | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Held for Sale | 13,829 | 32,188 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trust Income | 209 | 183 | 808 | 707 | DIRECTORS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, net | 787,755 | 771,023 | Noninterest Income | 2,793 | 4,806 | 12,155 | 15,296 | Neil J. Van Dyke -Chair | Michael R. Barrett - St. Johnsbury | ||||||||||||||||||||||||||||||||||||||||||||||||||
Timothy W. Sargent -Vice Chair | Steven J. Bourgeois - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reserve for Loan Losses | (8,336) | (8,271) | Noninterest Expenses: | Joel S. Bourassa | Andrew A. Dean - Northern NH | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Salaries & Wages | 3,894 | 3,552 | 14,448 | 13,220 | Dawn D. Bugbee | Stanley T. Fillion - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and Equipment, net | 21,615 | 20,039 | John M. Goodrich | Rosemary H. Gingue - St. Johnsbury | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefits | 1,029 | 1,163 | 4,593 | 4,580 | Nancy C. Putnam | John M. Goodrich - St. Johnsbury | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Interest & other Assets | 42,429 | 36,295 | Gregory D. Sargent | Christopher M. Knapp - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
David S. Silverman | Coleen K. Kohaut - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Assets | $ | 1,205,361 | $ | 1,093,554 | Occupancy Expense, net | 461 | 394 | 1,890 | 1,805 | Janet P. Spitler | Justin P. Lavely - St. Johnsbury | ||||||||||||||||||||||||||||||||||||||||||||||||
John H. Steel | Daniel J. Luneau - St. Albans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equipment Expense | 883 | 791 | 3,425 | 3,057 | Mary K. Parent - St. Johnsbury | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Samuel H. Ruggiano - St. Albans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Christine A. Sheley - Northern NH | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY | DEC 31, 2021 | DEC 31, 2020 | Other Expenses | 2,198 | 2,004 | 8,499 | 7,520 | David S. Silverman - All | |||||||||||||||||||||||||||||||||||||||||||||||||||
Union Bank Offices (ATMs at all Branch Locations) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 8,465 | 7,904 | 32,855 | 30,182 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest Bearing Deposits | $ | 264,888 | $ | 215,245 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Before Taxes | 4,006 | 4,619 | 15,816 | 15,224 | VERMONT | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Bearing Deposits | 723,479 | 637,369 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Berlin | 1028 US Route 302 | 802.476.0061 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Time Deposits | 106,715 | 141,688 | Income Tax Expense | 628 | 825 | 2,646 | 2,419 | Fairfax | Jct. Routes 104 & 128 | 802.849.2600 | |||||||||||||||||||||||||||||||||||||||||||||||||
Hardwick | 103 VT Route 15 West | 802.472.8100 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowed Funds | — | 7,164 | Net income | $ | 3,378 | $ | 3,794 | $ | 13,170 | $ | 12,805 | Jeffersonville | 5062 VT Route 15 | 802.644.6600 | |||||||||||||||||||||||||||||||||||||||||||||
Jericho | 368 VT Route 15 | 802.899.7500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subordinated Debentures and Notes | 16,171 | — | Earnings per share | $ | 0.76 | $ | 0.85 | $ | 2.94 | $ | 2.86 | Johnson | 198 Lower Main Street | 802.635.6600 | |||||||||||||||||||||||||||||||||||||||||||||
Lyndonville | 183 Depot Street | 802.626.3100 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Interest & Other Liabilities | 9,767 | 11,221 | Book Value Per Share | $ | 18.77 | $ | 18.05 | Morrisville | 20 Lower Main Street | 802.888.6600 | |||||||||||||||||||||||||||||||||||||||||||||||||
65 Northgate Plaza | 802.888.6860 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | 9,934 | 9,910 | Shelburne | 5068 Shelburne Road | 802.985.0250 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
St. Albans | 15 Mapleville Depot | 802.524.9000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Paid-in Capital | 1,769 | 1,393 | St. Johnsbury | Operations and Loan Center | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retained Earnings | 364 Railroad Street | 802.748.3131 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
78,350 | 71,097 | Branch | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | (1,552) | 2,636 | 325 Portland Street | 802.748.3121 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stowe | 47 Park Street | 802.253.6600 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Williston | Branch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury Stock at Cost | (4,160) | (4,169) | 31 Market St | 802.878.7900 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Center | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 1,205,361 | $ | 1,093,554 | 31 Market St | 802.865.1000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Standby letters of credit were $2,158,000 and $3,115,000 at December 31, 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 |