UNION BANKSHARES INC

Union Bankshares, Inc. is a one-bank holding company operating in the financial services industry as a community bank. Incorporated in Vermont in 1982, its sole subsidiary is Union Bank, which was organized and chartered as a state bank in 1891. Both entities are headquartered in Morrisville, Vermont. The Company's common stock trades on the Nasdaq Global Market under the symbol "UNB". Union Bankshares, Inc. operates with one definable business segment, Union Bank. This segment provides full retail, commercial, municipal banking, and wealth management and trust services. These services are delivered through 18 branch banking locations, three loan centers, and several ATMs across northern Vermont and northern New Hampshire. Additionally, many services are accessible via telephone, mobile devices, and its website, www.ublocal.com. Union Bank aims to provide quality retail banking services to individuals and commercial banking services to small and medium-sized business corporations, limited liability companies, partnerships, sole proprietorships, nonprofit organizations, local municipalities, and school districts within its market area. The Company's income primarily comes from interest and fees on loans and earnings on other investments. Its main expenses include interest paid on deposits and borrowings, salaries and wages, health insurance and other employee benefits, and general overhead expenses, including occupancy and equipment. Profitability largely depends on net interest income, which is the difference between interest and dividend income on interest-earning assets (such as loans, investment securities, and interest-earning deposits in banks) and interest expense on interest-bearing liabilities.