UNION BANKSHARES, INC.
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September 30, 2000
Third Quarter Report
[LOGO] CITIZENS
SAVINGS BANK
AND TRUST COMPANY
[LOGO] UNION BANK
Wholly Owned Subsidiaries
October 17, 2000
Dear Shareholder,
We are headed into the fourth quarter of 2000 and time has passed rather
quickly so far this year. The "back room" consolidation and productivity
efforts are continuing to move forward and again we are pleased with the
progress and cooperation displayed by all involved. Teamwork is alive and
well!
The expansion of trust services to Lamoille County is now on track with the
addition of Deb Partlow, a seasoned trust officer of Citizens Savings Bank
and Trust Company located at the main office of Union Bank in Morrisville.
Deb has over 20 years of banking experience and is well versed in trust
services and products.
Citizens has expanded their initiatives in the area of merchant credit card
servicing by providing improved service and local support which has
received a warm acceptance by merchants who have signed on. Together, Union
and Citizens have over 500 businesses utilizing this product which
complements the "full service" line offered commercial customers.
A bit of a pleasant surprise this year has been the continued strong demand
for both residential and commercial loans. The loan portfolio has grown
$13.6 million or 6.4% over September 1999. Year to date over $9 million in
residential construction loans have been committed with the outlook for
2001 to be more of the same. We have taken advantage of the favorable
advance rates offered by the Federal Home Loan Bank to fund some of this
growth.
On July13th Union Bankshares, Inc. began trading on the American Stock
Exchange (AMEX) under the symbol UNB. We feel listing your company's stock
on a national exchange provides better liquidity and a more consistent
trading environment. AMEX also offers assistance to listed companies in a
number of areas which we can take advantage of such as shareholder
relations, regulatory compliance and other programs.
On the following pages you will find our unaudited financial statements.
Assets have increased 3% and income 10% over the quarter ended September of
1999. Year to date shows a similar trend.
Enclosed is a dividend check or advice of deposit representing a dividend
of $.26 per share to shareholders of record October 14, 2000.
Sincerely,
/s/ Arlen Smith /s/ Kenneth D. Gibbons
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W. Arlen Smith Kenneth D. Gibbons
Chairman President
Shareholder
Assistance
and
Investor Information
If you need assistance with a change in registration of certificates,
reporting lost certificates, nonreceipt or loss of dividend checks,
information about the Company, or to receive copies of financial reports,
please contact us at the address and phone number listed below:
Corporate Name: Union Bankshares, Inc.
Transfer Agent: Union Bank
P.O. Box 667
Morrisville, VT
05661-0667
Phone: 802-888-6600
Fax: 802-888-4921
Email: [email protected]
Website: www.unionbankvt.com
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Consolidated Balance Sheet (unaudited)
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September 30, 2000 September 30, 1999
<S> <C> <C>
ASSETS
Cash and Due from Banks $ 10,292,803 $ 10,035,324
Federal Funds Sold 5,355,000 6,798,794
Interest Bearing Deposits 2,098,948 2,109,798
U.S. Government Securities 29,583,090 33,270,737
State and Municipal Securities 4,802,648 4,876,609
Corporate Securities 22,337,903 22,444,278
Loans, net 224,988,479 211,385,895
Less: Reserve for Loan Losses (2,867,193) (2,910,744)
Bank Building and Equipment, net 3,860,971 4,161,735
Other Real Estate Owned 137,090 34,151
Other Assets 6,605,093 5,967,412
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Total Assets $307,194,832 $298,173,989
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LIABILITIES AND SHAREHOLDERS' EQUITY
Demand Deposits $ 34,198,044 $ 35,696,671
Savings and Time Deposits 224,957,769 223,707,356
Borrowed Funds 10,464,590 3,282,884
Other Liabilities 3,569,476 3,151,367
Common Stock 6,527,378 6,526,378
Paid in Capital 239,903 236,029
Retained Earnings 29,491,743 27,834,050
Accumulated Other Comprehensive Income (661,620) (668,295)
Treasury Stock at Cost (1,592,451) (1,592,451)
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Total Liabilities and Shareholders' Equity $307,194,832 $298,173,989
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Consolidated Statements of Income (unaudited)
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9/30/00 9/30/99 9/30/00 9/30/99
(3 months ended) (9 months ended)
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Interest Income $6,174,556 $5,824,767 $17,830,255 $16,966,205
Interest Expense 2,592,350 2,302,990 7,237,848 6,799,895
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Net Interest Income 3,582,206 3,521,777 10,592,407 10,166,310
Less: Provision for Loan Losses 62,500 62,499 187,500 249,997
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Net Interest Income after
Loan Loss Provision 3,519,706 3,459,278 10,404,907 9,916,313
Trust Income 35,139 47,107 111,358 114,823
Other Income 586,681 567,519 1,793,052 1,804,199
Other Operating Expenses:
Salaries 1,120,320 1,043,598 3,431,197 3,131,200
Employee Benefits 291,384 278,870 868,074 777,463
Occupancy 141,615 130,365 434,162 407,267
Equipment 222,925 268,120 753,293 807,617
Other 618,830 755,949 2,053,475 2,208,704
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Total 2,395,074 2,476,902 7,540,201 7,332,251
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Net Income before Tax 1,746,452 1,597,002 4,769,116 4,503,084
Income Tax Expense 499,314 463,592 1,276,244 1,354,096
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Net Income $1,247,138 $1,133,410 $ 3,492,872 $ 3,148,988
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Earnings per Share $ 0.41 $ 0.37 $ 1.15 $ 1.04
Book Value Per Share $ 11.22 $ 10.68
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DIRECTORS OF
UNION BANKSHARES, INC.
W. Arlen Smith, Chairman
Cynthia D. Borck
William T. Costa, Jr.
Kenneth D. Gibbons
Peter M. Haslam
Franklin G. Hovey II
William F. Kinney
Richard C. Marron
Robert P. Rollins
Jerry S. Rowe
Richard C. Sargent
Walter M. Sargent
OFFICERS OF
UNION BANKSHARES, INC.
W. Arlen Smith Chairman
Cynthia D. Borck Vice-President
Kenneth D. Gibbons President
Peter M. Haslam Secretary
Marsha A. Mongeon Vice President/Treasurer
Jerry S. Rowe Vice President
DIRCETORS OF CITIZENS SAVINGS BANK
AND TRUST COMPANY
Cynthia D. Borck
J.R. Alexis Clouatre
William T. Costa, Jr.
Dwight A. Davis
Kenneth D. Gibbons
Franklin G. Hovey II
Jerry S. Rowe
Joseph M. Sherman
OFFICERS OF CITIZENS SAVINGS BANK
AND TRUST COMPANY
Michelle Brochu Vice President
Patricia G. Coffin Auditor/Compliance Officer
John Dinsmore Assistant Treasurer
Tracey D. Holbrook Assistant Vice President
Susan O. Laferriere Vice President
Dennis J. Lamothe Treasurer
Barbara A. Olden Assistant Vice President
Deborah J. Partlow Trust Officer
Jerry S. Rowe President
Wendy L. Somers Trust Officer
David A. Weed Vice President
DIRECTORS OF UNION BANK
W. Arlen Smith, Chairman
Cynthia D. Borck
Kenneth D. Gibbons
Peter M. Haslam
William F. Kinney
Richard C. Marron
Robert P. Rollins
Richard C. Sargent
Walter M. Sargent
OFFICERS OF UNION BANK
Wanda L. Allaire Assistant Vice President
Ethan A. Allen, Jr. Vice President
Rhonda L. Bennett Vice President
Cynthia D. Borck Senior Vice President
Fern C. Farmer Assistant Vice President
Patsy S. French Assistant Vice President
Kenneth D. Gibbons President
Nathaniel M. Hayward Commercial Loan Officer
Claire A. Hindes Assistant Treasurer
Patricia N. Hogan Vice President
Peter R. Jones Vice President
Margaret S. Lambert Assistant Vice President
Marsha A. Mongeon Senior Vice President/Treasurer
Freda T. Moody Assistant Vice President
Karen Carlson Noyes Assistant Vice President
Colleen D. Putvain Assistant Treasurer
Ruth P. Schwartz Vice President
David S. Silverman Senior Vice President
JoAnn A. Tallman Assistant Secretary
Francis E. Welch Assistant Vice President
Craig S. Wiltshire Vice President
UNION BANK OFFICES
Morrisville Jeffersonville
20 Lower Main Street* 80 Main Street*
(802) 888-6600 (802) 644-6600
Northgate Plaza* Hyde Park
Route 100 250 Main Street
(802) 888-6860 (802) 888-6880
Stowe Remote ATM's at:
Stowe Village* Smugglers' Notch Resort (2)
Park and Pond Streets Johnson State College
(802) 253-6600 Copley Hospital
Cold Hollow Cider Mill
1857 Mountain Road Trapp Family Lodge
Route 108 Stowe Mountain Resort (3)
(802) 253-6642 Big John's Riverside Store
Ben & Jerry's
Hardwick
103 VT Route 15* Express Telebanking
(802) 472-8100 (802) 888-6448
(800) 583-2869
Johnson
198 Lower Main Street*
(802) 635-6600
www.unionbankvt.com
* ATM's at these branches
CITIZENS SAVINGS BANK
AND TRUST COMPANY
OFFICES
St. Johnsbury Remote ATM's at:
364 Railroad Street* East Burke, Route 114
(802) 748-3131 Danville, Route 2
325 Portland Street Express Phone Banking
(802) 748-3121 (802) 748-0815
(800) 748-1018
Lyndonville
183 Depot Street*
(802) 626-3100
St. Johnsbury Center
Green Mountain Mall*
1998 Memorial Drive
(802) 748-2454
www.csbtc.com
* ATM's at these branches
