Exhibit 99.1
 
upperleftimagepg1.jpg
 
 
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February 8, 2018
 
 
 
 
 
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We are pleased to report the financial results for your Company for the three and twelve months ended December 31, 2017. Consolidated net income for the three months ended December 31, 2017 was $1.9 million, or $0.43 per share, compared to $2.3 million, or $0.53 per share, for the same period in 2016, and $8.4 million, or $1.89 per share, for the year ended December 31, 2017, compared to $8.5 million, or $1.91 per share, for the same period in 2016. The decrease in earnings for three and twelve month comparison periods is due to a one-time charge to earnings of $447 thousand for the revaluation of the Company’s deferred tax assets as a result of the Tax Cuts and Jobs Act being signed into law on December 22, 2017. Net income before taxes increased $943 thousand or 8.5% year over year.

2017 was a year of good growth in key balance sheet measurements. Total assets increased to $745.7 million, up 7.9% year over year. Likewise, total loans increased to $595.4 million, up 9.9% year over year, and total deposits increased to $647.6 million, up 8.4% year over year. Asset quality at the end of the year remained very good, with only $36 thousand of Other Real Estate Owned on the balance sheet and net charge o¥ s for the year only amounting to $39 thousand on an almost $600 million book of loans.

There are several economic tailwinds combining to help our region’s economy. Good early season snow and cold temperatures provided for great snow sport conditions for the past holiday season. While extended bitter cold temperatures may have dampened visitors enthusiasm to be outdoors, our local restaurants and retailers were more than happy to provide sustenance and activities to keep our guests captivated. Residential construction has continued strong and unabated, answering the need for more housing inventory as purchase activity has decreased properties available for sale in most of the markets we serve. Regional manufacturers and distributors report good
sales and solid books of business. Even on a Federal level, despite the sophomoric displays, from all participants, the eased regulatory climate and corporate tax reform appear to have a positive economic impact, at least measured by the unemployment rate and the stock market. The greatest concern among our local businesses has become recruiting and retaining a strong workforce to enable them to meet their customer’s demands.

We have many projects, large and small, being worked on in 2018. If you have been around here you may have noticed that we have our Main O­ffice lobby closed for renovations.We anticipate completion of this project in April. As has been previously discussed, we are converting our digital and mobile banking applications to new, state of the art delivery products with conversion slated for March and April. Much work has gone into this project and we are very excited to offer this improved service to our customers. Also, as has been previously discussed, we are planning on terminating our Defined Benefit Pension Plan during the fourth quarter of 2018. This will have a one-time negative impact on fourth quarter earnings. Finally, we expect a positive impact on our effective Federal Tax Rate brought to us by the Tax Cuts and Jobs Act signed into law on December 22, 2017.

The Board of Directors met on January 17, 2018 and considered 2017 financial performance and expected financial performance in 2018 and declared a dividend of 30 cents per share to record holders on January 27, 2018 payable on February 8, 2018. This represents a 1 cent increase compared to the previous quarter’s dividend.

Sincerely,
 
 
 
 
 
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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:
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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
PO Box 667
Morrisville, VT 05661-0667
Investor Relations: UBLOCAL.COM
 
kdgsignaturea10.jpg
dsssignaturea10.jpg
 
 
Kenneth D. Gibbons
Chairman

David S. Silverman
President & Chief Executive Officer
 
 
 
 
 
 
 
 
 
 
 
 
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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 17 banking offices and 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 125 years ago. Union Bank has earned an exceptional reputation for residential lending programs and has recently been named, for the fourth consecutive year, the USDA RD Vermont Home Lender of the year. 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
 
 
 
Kenneth D. Gibbons-Chairman
Kenneth D. Gibbons - Chairman
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Neil J. Van Dyke-Vice Chairman
David S. Silverman - President & CEO
 
ASSETS
DEC. 31, 2017
 
DEC. 31, 2016
 
 
DEC. 31, 2017
 
DEC. 31, 2016
 
DEC. 31, 2017
 
DEC. 31, 2016
 
 
Steven J. Bourgeois
 
Karyn J. Hale - Chief Financial Officer
 
 
 
 
 
 
 
Dawn D. Bugbee
 
John H. Steel - Secretary
 
 
 
 
 
 
(3 months ended)
 
(12 months ended)
 
 
 
 
 
 
 
 
 
 
 
 
John M. Goodrich
 
Kristy Adams Alfieri - Assistant Secretary
 
Cash and Due from Banks
 
$
3,857

 
$
4,272

 
Interest Income
$
7,680

 
$
6,914

 
$
29,017

 
$
26,836

 
 
 
 
 
 
 
 
 
 
Timothy W. Sargent
 
Jeffrey G. Coslett - Vice President
 
Federal Funds Sold & Overnight Deposits
 
34,651

 
35,003

 
Interest Expense
615

 
558

 
2,255

 
2,061

 
David S. Silverman
 
 
 
 
 
 
 
 
 
Net Interest Income
7,065

 
6,356

 
26,762

 
24,775

 
John H. Steel
 
REGIONAL
ADVISORY BOARD
MEMBERS
 
Interest Bearing Deposits in Banks
 
9,352

 
9,504

 
 
 
 
 
Schuyler W. Sweet
 
 
 
 
 
Provision for Loan Losses
50

 

 
200

 
150

 
 
 
 
Investment Securities
 
66,439

 
66,555

 
Net Interest Income After
Provision for Loan Losses
7,015

 
6,356

 
26,562

 
24,625

 
Union Bank
 
Michael R. Barrett - St. Johnsbury
 
Loans Held for Sale
 
7,947

 
7,803

 
 
 
 
 
 
Joel S. Bourassa - Northern NH
 
 
 
 
Trust Income
191

 
214

 
739

 
737

 
DIRECTORS
 
Steven J. Bourgeois - St. Albans
 
Loans, net
 
587,409

 
533,939

 
Noninterest Income
2,132

 
2,339

 
8,656

 
9,403

 
Kenneth D. Gibbons-Chairman
Stanley T. Fillion - Northern NH
 
 
 
 
 
 
 
 
 
 
 
Neil J. Van Dyke-Vice Chairman
Rosemary H. Gingue - St. Johnsbury
 
Reserve for Loan Losses
 
(5,408
)
 
(5,247
)
 
Noninterest Expenses:
 
 
 
 
 
 
 
 
Steven J. Bourgeois
 
John M. Goodrich - St. Johnsbury
 
 
 
 
 
 
 
Salaries & Wages
2,615

 
2,681

 
10,257

 
10,203

 
Dawn D. Bugbee
 
Richard L. Isabelle - St. Johnsbury
 
Premises and Equipment, net
 
14,255

 
13,525

 
 
 
 
 
John M. Goodrich
 
Christopher M. Knapp - Northern NH
 
 
 
 
 
 
 
Pension & Employee Benefits
924

 
866

 
3,708

 
3,525

 
Nancy C. Putnam
 
Coleen K. Kohaut - St. Albans
 
Other Real Estate Owned, net
 
36

 

 

 
 
 
 
 
 
 
 
Timothy W. Sargent
 
Justin P. Lavely - St. Johnsbury
 
 
 

 

 
Occupancy Expense, net
342

 
340

 
1,415

 
1,263

 
David S. Silverman
 
Daniel J. Luneau - St. Albans
 
Accrued Interest & Other Assets
 
27,210

 
26,027

 
 
 
 
 
 
 
 
 
 
John H. Steel
 
Mary K. Parent - St. Johnsbury
 
 
 
 
 
 
 
Equipment Expense
619

 
512

 
2,208

 
2,115

 
Schuyler W. Sweet
 
Samuel H. Ruggiano - St. Albans
 
Total Assets
 
$
745,748

 
$
691,381

 
 
 
 
 
 
 
 
 
 
 
 
David S. Silverman - All
 
 
 
 
 
 
 
Other Expenses
1,652

 
1,722

 
6,317

 
6,550

 
 
 
Schuyler W. Sweet - Northern NH
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
6,152

 
6,121

 
23,905

 
23,656

 
Union Bank Offices
(ATMs at all Branch Locations)
 
 
LIABILITIES & SHAREHOLDERS' EQUITY
DEC. 31, 2017
 
DEC. 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Before Taxes
3,186

 
2,788

 
12,052

 
11,109

 
 
 
 
 
 
 
 
 
Income Tax Expense
1,264

 
442

 
3,603

 
2,598

 
VERMONT
 
 
 
 
Noninterest Bearing Deposits
 
$
127,824

 
$
112,384

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
1,922

 
$
2,346

 
$
8,449

 
$
8,511

 
Barre
Loan Center
 
 
Interest Bearing Deposits
 
418,621

 
382,083

 
 
 
 
 
 
 
 
 
 
 
14 North Main Street
802.476.0062
 
 
 
 
Earnings per share
$
0.43

 
$
0.53

 
$
1.89

 
$
1.91

 
Danville
421 Route 2 East
802.684.2211
 
Time Deposits
 
101,129

 
103,193

 
 
 
 
 
 
 
 
 
 
Fairfax
Jct. Routes 104 & 128
802.849.2600
 
 
 
 
 
 
 
Book Value Per Share
 
 
 
 
$
13.17

 
$
12.61

 
Hardwick
103 VT Route 15 West
802.472.8100
 
Borrowed Funds
 
31,581

 
31,595

 
 
 
 
 
 
 
 
 
 
Jeffersonville
5062 VT Route 15
802.644.6600
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Johnson
198 Lower Main Street
802.635.6600
 
Accrued Interest & Other Liabilities
 
7,770

 
5,847

 
 
 
 
 
 
 
 
 
 
Lyndonville
183 Depot Street
802.626.3100
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Morrisville
20 Lower Main Street
802.888.6600
 
Common Stock
 
9,882

 
9,874

 
 
 
 
 
 
 
 
 
 
 
65 Northgate Plaza
802.888.6860
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Newport
Loan Center
 
 
Additional Paid-in Capital
 
755

 
620

 
 
 
 
 
 
 
 
 
 
 
325 East Main Street
802.334.0750
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
St. Albans
15 Mapleville Depot
802.524.9000
 
Retained Earnings
 
56,359

 
53,086

 
 
 
 
 
 
 
 
 
 
St. Johnsbury
364 Railroad Street
802.748.3131
 
Accumulated Other
Comprehensive Loss
 
(4,096
)
 
(3,279
)
 
 
 
 
 
 
 
 
 
 
 
325 Portland Street
802.748.3121
 
 
 
 
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S. Burlington
Loan Center
 
 
 
 
 
 
 
30 Kimball Avenue
802.865.1000
 
Treasury Stock at Cost
 
(4,077
)
 
(4,022
)
 
 
Stowe
47 Park Street
802.253.6600
 
 
 
 
 
 
 
 
NEW HAMPSHIRE
 
 
Total Liabilities & Shareholders' Equity
 
$
745,748

 
$
691,381

 
 
Groveton
3 State Street
603.636.1611
 
Standby letters of credit were $2,064,000 and $1,624,000 at December 31, 2017 and 2016, respectively.
 
 
Littleton
263 Dells Road
603.444.7136
 
 
 
 
76 Main Street
603.444.5321
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Lincoln
135 Main Street
603.745.4000
 
N. Woodstock
155 Main Street
603.745.2488
 
 
 
 
 


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