Union Bankshares, Inc. operates as the bank holding company for Union Bank (Union) that provides various banking products and services.
The company’s business is that of a community bank in the financial services industry. The company has one definable business segment, Union Bank, which provides full retail, commercial, municipal banking, and wealth management and trust services throughout its banking offices, loan centers, and several ATMs covering northern Vermont and northern New Hampshire....
Union Bankshares, Inc. operates as the bank holding company for Union Bank (Union) that provides various banking products and services.
The company’s business is that of a community bank in the financial services industry. The company has one definable business segment, Union Bank, which provides full retail, commercial, municipal banking, and wealth management and trust services throughout its banking offices, loan centers, and several ATMs covering northern Vermont and northern New Hampshire. Also, many of Union's services are provided via the telephone, mobile devices, and through its website, www.ublocal.com. Union seeks to make a profit for the company while providing quality retail banking services to individuals and commercial banking services to small and medium sized business corporations, limited liability companies, partnerships, and sole proprietorships, as well as nonprofit organizations, local municipalities, and school districts within its market area.
Services
Services or products offered to the company’s customers include, but are not limited to, the following:
Commercial loans for business purposes to business owners and investors for plant and equipment, working capital, real estate renovation and other sound business purposes;
Commercial real estate loans on income producing properties, including commercial construction loans;
SBA guaranteed loans;
Residential construction and mortgage loans;
Municipal financing, including loans and excess deposits secured by FHLBB letters of credit;
Online cash management services, including account reconciliation, credit card depository, Automated Clearing House (ACH) origination, wire transfers, positive pay and night depository;
Merchant credit card services for the deposit and immediate credit of sales drafts;
Remote deposit capture for merchants;
Online mortgage applications;
Online consumer deposit account opening;
Business checking accounts;
Standby letters of credit, bank checks or money orders, and safe deposit boxes;
ATM services;
Debit MasterCard and ATM cards;
Telephone, internet, and mobile banking services, including bill pay;
Home improvement loans and overdraft checking privileges against preauthorized lines of credit;
Retail depository services, including personal checking accounts, checking accounts with interest, savings accounts, money market accounts, certificates of deposit, IRA/SEP/KEOGH accounts and Health Savings accounts; and
Wealth management and trust services to individuals and organizations.
Consistent with the company's intention of serving the financial needs of individuals, businesses and others within the company’s market areas, the company seeks to concentrate its assets in loans. In addition, the company obtains funds from principal repayments, sales and prepayments of loans, securities and FDIC insured certificates of deposit. Other funding sources may include brokered deposits purchased through CDARS, ICS or through other deposit brokers, and borrowings from the FHLB, correspondent banks or FRB loan facilities, including the discount window.
The company emphasizes residential mortgage lending, commercial real estate and construction lending, as well as municipal loans and both conventional and SBA guaranteed commercial lending.
Deposits
As of December 31, 2023, the company’s deposits were nontime deposits, such as noninterest bearing deposits, interest bearing checking accounts, money market accounts, and savings accounts; and time deposits.
Investment Securities
As of December 31, 2023, the company’s investment securities included U.S. Government-sponsored enterprises; agency MBS (mortgage-backed security); state and political subdivisions; and corporate securities.
Regulation and Supervision
As a bank holding company, the company is subject to regulation, supervision and examination by the FRB under the Bank Holding Company Act of 1956, as amended (‘BHCA’). As a state chartered commercial bank, Union Bank is subject to the regulation and supervision by the FDIC and the Vermont Department of Financial Regulation (‘DFR’).
The company is also under the jurisdiction of the SEC for matters relating to the offer and sale of its securities as well as investor reporting requirements. The company is subject to restrictions, reporting requirements, and review procedures under federal securities laws and regulations.
While the Dodd-Frank Act is focused principally on changes to the financial regulatory system, it includes several corporate governance, disclosure and compensation provisions applicable to public companies, such as the company.
Union is subject to regulation, supervision, and examination by the FDIC and the DFR. As a member of the FDIC, the deposits of Union are insured under the Deposit Insurance Fund (‘DIF’) maintained by the FDIC up to $250,000 per ownership category.
The Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 allows the company to hold reciprocal deposits up to 20 percent of total liabilities without those deposits being treated as brokered for regulatory purposes.
Union is subject to the federal Community Reinvestment Act, which requires banks to demonstrate their commitment to serving the credit needs of low and moderate income residents of their communities.
The company and Union are subject to a number of federal and state laws designed to protect consumers and prohibit unfair or deceptive business practices, including, but not limited to, the Equal Credit Opportunity Act, the Fair Housing Act, the Home Ownership Protection Act, the Fair Credit Reporting Act, as amended by the Fair and Accurate Credit Transactions Act of 2003 (the ‘FACT Act’), GLBA, the Truth in Lending Act, CRA, the Home Mortgage Disclosure Act, the Real Estate Settlement Procedures Act, the National Flood Insurance Act and various state law counterparts. Union is also subject to laws and regulations to protect consumers in connection with their deposit or electronic transactions. These laws include the Truth in Savings Act, the Electronic Funds Transfer Act and the Expedited Funds Availability Act.
The GLBA also requires that the company develop, implement and maintain a comprehensive written information security program designed to ensure the security and confidentiality of customer information (as defined under the GLBA), to protect against anticipated threats or hazards to the security or integrity of such information; and to protect against unauthorized access to or use of such information that could result in substantial harm or inconvenience to any customer.
Union is subject to HMDA (Home Mortgage Disclosure Act) as it has branch offices within the Burlington, Vermont Metropolitan Statistical Area.
The company’s and Union's authority to extend credit, purchase or sell an asset from or to their directors, executive officers and 10% or more stockholders, as well as to entities controlled by such persons, is governed by the requirements of the Federal Reserve Act and Regulation O of the FRB thereunder.
The company has a Related Persons Transactions Approval Policy administered by the company's Audit Committee which incorporates applicable regulatory guidelines and requirements.
History
Union Bankshares, Inc. was founded in 1891. The company was incorporated in the state of Vermont in 1982.
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