8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 9, 2016

(Exact name of registrant as specified in its charter)

UNION BANKSHARES, INC.

(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification Number)
Vermont	001-15985	03-0283552
(Address of principal executive offices)		(Zip Code)
20 Lower Main St., P.O. Box 667		05661-0667
Morrisville, VT

Registrant's telephone number, including area code: (802) 888-6600

(Former name or former address, if changed since last report)

Not applicable

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

cWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

cSoliciting materials pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

cPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

cPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02: Results of Operations and Financial Condition

As provided in General Instruction B.2 to Form 8-K, the information furnished in this Item 2.02 and in Exhibit 99.1 hereto shall not be deemed filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing with the Securities and Exchange Commission, except as shall be expressly provided by specific reference in such filing.

On February 9, 2016, Union Bankshares, Inc. distributed its Fourth Quarter 2015 unaudited Report to Shareholders, a copy of which is furnished with this Form 8-K as Exhibit 99.1, presenting information concerning our results of operations and financial condition for the three and twelve months ended December 31, 2015 and the declaration of a regular quarterly dividend.

Item 9.01: Financial Statements and Exhibits

d) Exhibits:

99.1 Union Bankshares, Inc. Fourth Quarter 2015 Report to Shareholders distributed February 9, 2016 referred to in Item 2.02 of the Report as furnished, not filed; herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Union Bankshares, Inc.
February 9, 2016	/s/ David S. Silverman
	David S. Silverman
	President/Chief Executive Officer
February 9, 2016	/s/ Karyn J. Hale
	Karyn J. Hale
	Chief Financial Officer

EXHIBIT INDEX

Exhibit 99.1 Union Bankshares, Inc., Fourth Quarter 2015 Report to Shareholders distributed February 9, 2016.

EX-99.1

Exhibit 99.1

			February 9, 2016
			We are pleased to provide you with a brief summary of your company’s financial results for the year ended December 31, 2015. Net income for the year was $7.9 million, or $1.77 per share, compared to $7.7 million, or $1.73 per share for 2014. Results for 2015 were positively impacted by increases in net interest income of $217 thousand and in noninterest income of $883 thousand. These positive variances were partially offset by an increase in the provision for loan losses of $205 thousand, noninterest expenses of $710 thousand and the provision for income taxes of $206 thousand. During 2015 total assets grew a modest 0.8% to $628.9 million. Total loans outpaced total asset growth as we used excess liquidity to fund loan demand. Total loans increased 3.2% to $506.7 million as of December 31, despite sales of qualifying residential mortgages to the secondary market totaling $131.1 million for 2015 compared to sales of $94.7 million for 2014. Loans serviced for others grew $56.9 million to $422.3 million as of December 31, 2015 from $365.4 million as the prior year end. The Company had total capital of $53.6 million with a book value per share of $12.02 as of December 31, 2015 compared to $51.4 million and $11.54 per share at December 31, 2014. We would like to offer a few observations about our 2015 financial performance. In general we were pleased with our net income growth, despite it being a modest 2.3% over last year. We would have liked our assets to increase at a more rapid pace than they did in 2015, though a modest reduction in borrowings did mask asset growth a bit. As a result our 2016 business plan calls for increasing our core deposits and overall assets at a more robust pace than in 2015. Finally, we are very pleased with our loan portfolio quality measurements. Traditionally we have maintained a high quality portfolio, but at year end our delinquent loan measurements were better than usual. Our net charge o s for all of 2015 were $42 thousand, good results for a loan portfolio exceeding $500 million. This is probably an apt place to remind our shareholders that past performance does not guarantee future results.		While our local economy is relatively diverse we still rely on visitors to our region spending money on lodging, restaurants, attractions and retailers. Our ski areas have invested literally millions of dollars on enhancing their snow making operations to protect their revenues when snow does not fall. Christmas Eve and Christmas Day brought temperatures in the mid-sixties, essentially melting all of the snow we had and shutting down snow guns throughout the region. We have had poor December’s in the past and will again. Our local businesses are used to adapting to the vagaries of weather and visitor behavior. That said, a poor December will put some strain on the tourism industry and its employees as attempts are made to cut costs and manage diminished cash flow. Inevitably there will be businesses that suffer more than others. We too have managed through difficult tourism seasons and will continue to work with our customers to assist those who are viable to manage through the short term and prosper over the long term. Outside of the poor weather and its effect on the tourism industry, the local economy seems to be holding its own, with some level of improvement year over year. There seems to be a major disconnect between the real economy and stock markets. If we were to believe the message that Wall Street seems to be sending, we would anticipate a slowing, difficult economy over the next months and years. Yet regionally we don’t sense movement in this direction, in fact we sense the opposite. With the mixed signals we are receiving we will continue to operate your company conservatively though opportunistically, seeking growth when it is profitable to do so. Enclosed please find your dividend check or advice of deposit representing a dividend of $.27 per share.
	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 PO Box 667 Morrisville, VT 05661-0667 Investor Relations: UBLOCAL.COM
					Kenneth D. Gibbons Chairman	David S. Silverman President & Chief Executive Officer
			AboutUnion 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 two loan centers and several ATMs throughout its geographical footprint. Union Bank has earned an outstanding reputation for residential lending programs and has recently been named, for the third consecutive year, the USDA RD Vermont lender of the year. Union Bank is also an SBA Preferred lender and has an outstanding Community Reinvestment Act rating.

	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
																						Steven J. Bourgeois		David S. Silverman - President & CEO
	ASSETS	DEC. 31, 2015				DEC. 31, 2014				DEC. 31, 2015			DEC. 31, 2014			DEC. 31, 2015			DEC. 31, 2014			John M. Goodrich		Karyn J. Hale - Chief Financial Officer
																						Timothy W. Sargent		John H. Steel - Secretary
											(3 months ended)						(12 months ended)
																						David S. Silverman		Kristy Adams Alfieri - Assistant Secretary
	Cash and Due from Banks		$	4,217			$	4,822		Interest Income	$	6,378		$	6,298		$	25,144		$	24,852
																						John H. Steel		Jeffrey G. Coslett - Vice President
	Federal Funds Sold & Overnight Deposits		13,744				36,922			Interest Expense	478			521			2,025			2,155		Schuyler W. Sweet
										Net Interest Income	5,900			5,777			23,119			22,697		Neil J. Van Dyke
	Interest Bearing Deposits in Banks		12,753				12,252			Provision for Loan Losses	150			45			550			345				REGIONAL ADVISORY BOARD MEMBERS
																						Union Bank
	Investment Securities		59,327				52,964			Net Interest Income After Provision for Loan Losses	5,750			5,732			22,569			22,352
	Loans Held for Sale		5,635				10,743															DIRECTORS
										Trust Income	181			177			719			726		Kenneth D. Gibbons-Chairman		Michael R. Barrett - St. Johnsbury
	Loans, net		501,021				480,333			Noninterest Income	2,217			1,944			9,073			8,183		Steven J. Bourgeois		Joel S. Bourassa - Northern NH
																						Dawn D. Bugbee		Steven J. Bourgeois - St. Albans
	Reserve for Loan Losses		(5,201		)		(4,694		)	Noninterest Expenses:												John M. Goodrich		Stanley T. Fillion - Northern NH
										Salaries & Wages	2,437			2,222			9,517			8,916		Timothy W. Sargent		Rosemary H. Gingue - St. Johnsbury
	Premises and Equipment, net		13,055				11,853															David S. Silverman		John M. Goodrich - St. Johnsbury
										Pension & Employee Benefits	735			663			2,977			2,725		John H. Steel		Richard L. Isabelle - St. Johnsbury
	Other Real Estate Owned, net		—				297															Schuyler W. Sweet		Christopher M. Knapp - Northern NH
										Occupancy Expense, net	293			293			1,279			1,199		Neil J. Van Dyke		Coleen K. Kohaut - St. Albans
	Accrued Interest & Other Assets		24,328				18,571																	Justin P. Lavely - St. Johnsbury
										Equipment Expense	529			441			1,875			1,674				Daniel J. Luneau - St. Albans
	Total Assets		$	628,879			$	624,063																Mary K. Parent - St. Johnsbury
										Other Expenses	1,690			1,958			6,656			7,080				Samuel H. Ruggiano - St. Albans
																								David S. Silverman - All
										Total	5,684			5,577			22,304			21,594				Schuyler W. Sweet - Northern NH
	LIABILITIES & SHAREHOLDERS' EQUITY	DEC. 31, 2015				DEC. 31, 2014
										Income Before Taxes	2,464			2,276			10,057			9,667
										Income Tax Expense	537			391			2,179			1,973		Union Bank Offices (ATMs at all Branch Locations)
	Noninterest Bearing Deposits		$	99,826			$	90,385
										Net income	$	1,927		$	1,885		$	7,878		$	7,694
	Interest Bearing Deposits		310,203				302,722															VERMONT
										Earnings per share	$	0.44		$	0.43		$	1.77		$	1.73	Danville	421 Route 2 East		802-684-2211
	Time Deposits		150,379				158,957															Fairfax	Jct. Routes 104 & 128		802-849-2600
										Book Value Per Share							$	12.02		$	11.54	Hardwick	103 VT Route 15 West		802-472-8100
	Borrowed Funds		9,564				15,118															Jeffersonville	44 Main Street		802-644-6600
																						Johnson	198 Lower Main Street		802-635-6600
	Accrued Interest & Other Liabilities		5,339				5,447															Lyndonville	183 Depot Street		802-626-3100
																						Morrisville	20 Lower Main Street		802-888-6600
	Common Stock		9,864				9,859																65 Northgate Plaza		802-888-6860
																						Newport	Loan Center
	Additional Paid in Capital		501				418																325 East Main Street		802-334-0750
																						St. Albans	15 Mapleville Depot		802-524-9000
	Retained Earnings		49,524				46,462															St. Johnsbury	364 Railroad Street		802-748-3131
	Accumulated Other Comprehensive (Loss) Income		(2,302		)		(1,380		)														325 Portland Street		802-748-3121
																						S. Burlington	Loan Center
																							30 Kimball Avenue		802-865-1000
	Treasury Stock at Cost		(4,019		)		(3,925		)													Stowe	47 Park Street		802-253-6600
																						NEW HAMPSHIRE
	Total Liabilities & Shareholders' Equity		$	628,879			$	624,063														Groveton	3 State Street		603-636-1611
	Standby letters of credit were $1,614,000 and $1,725,000 at December 31, 2015 and 2014, respectively.																					Littleton	263 Dells Road		603-444-7136
																							76 Main Street		603-444-5321
																						Lincoln	135 Main Street		603-745-4000
																						N. Woodstock	155 Main Street		603-745-2488