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): November 8, 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 November 8, 2016, Union Bankshares, Inc. distributed its Third Quarter 2016 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 nine months ended September 30, 2016 and the declaration of a regular quarterly dividend.

Item 9.01: Financial Statements and Exhibits

d) Exhibits:

99.1 Union Bankshares, Inc. Third Quarter 2016 Report to Shareholders distributed November 8, 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.
November 8, 2016	/s/ David S. Silverman
	David S. Silverman
	President/Chief Executive Officer
November 8, 2016	/s/ Karyn J. Hale
	Karyn J. Hale
	Chief Financial Officer

EXHIBIT INDEX

Exhibit 99.1 Union Bankshares, Inc. Third Quarter 2016 Report to Shareholders distributed November 8, 2016.

EX-99.1

Exhibit 99.1

			November 8, 2016
			We are pleased to report net income for the three and nine months ended September 30, 2016. Consolidated net income for the three months ended September 30, 2016 was $2.3 million, or $0.51 per share, compared to $2.1 million, or $0.45 per share, for the same period in 2015, and $6.2 million, or $1.38 per share for the nine months ended September 30, 2016, compared to $6 million, or $1.33 per share, for the same period in 2015. We are also pleased to report that during the past twelve months ended September 30, 2016 total assets increased $52.3 million, or 8.4%, to $672.6 million; loans increased $27.6 million, or 5.45% to $533.2 million; deposits increased $28.3 million, or 5.20%, to $572.2 million; and total shareholders’ equity increased 5.6% to $56.8 million compared to September 30, 2015. Key performance ratios for the nine months ended September 30, 2016 include a Return on Average Assets of 1.28% and a Return on Average Equity of 14.83%. Both ratios place us in the upper percentiles in comparison to peer banks. We are pleased with our financial performance to date, especially with our pace of balance sheet growth, which was an area of emphasis for this year. We recently learned of big news in the Northern New England Banking scene. It was announced that the largest bank domiciled in Vermont will be acquired by an $8 billion bank domiciled in upstate New York. This will reduce the number of Vermont based banks to eleven from approximately thirty five in the 1980’s. In the near term, we view these sort of out of area consolidations to be generally positive for us as we have opportunities to acquire customers reluctant to depend on a large, out of area bank. Long term, we fear further consolidation may		reduce access to banking services in the rural markets we serve. We are committed to providing personalized deposit and loan services within our market area, while at the same time enhancing our Digital Banking capabilities. Our first snowfall happened in mid-October when we awoke to fresh snow on some of our mountain peaks, with accumulations of as much as 9 inches in some areas. While seemingly early, this bodes well for the nearing winter tourism season. Fortunately, the preceding summer and fall tourism seasons were equally as good as the winter was bad. We are hoping to string two solid tourism seasons together to further improve our area’s economy, which is generally pretty good. In some areas, businesses are unable to attract sufficient workers to be open all of the hours they would like to be, whether travel and tourism or manufacturing. This has to eventually translate into wage price pressure and modest inflation, certainly enough to cause the Federal Reserve to increase interest rates, which would be beneficial to Union Bank. Enclosed please find your check or advice of deposit of the quarterly dividend of $.28 per share declared on October 19, 2016, payable to shareholders of record as of October 29, 2016. As a reminder, we would be pleased to help you set up automatic deposit of your dividend either to a Union Bank account or a financial institution of your choice. Please contact Assistant Secretary Kristy Adams Alfieri for assistance at 802.888.0982.
	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 three 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
																						Neil J. Van Dyke-Vice Chairman		David S. Silverman - President & CEO
	ASSETS	SEPT. 30, 2016				SEPT 30, 2015				SEPT. 30, 2016			SEPT 30, 2015			SEPT. 30, 2016			SEPT 30, 2015			Steven J. Bourgeois		Karyn J. Hale - Chief Financial Officer
																						Dawn D. Bugbee		John H. Steel - Secretary
											(3 months ended)						(9 months ended)
																						John M. Goodrich		Kristy Adams Alfieri - Assistant Secretary
	Cash and Due from Banks		$	3,952			$	4,498		Interest Income	$	6,786		$	6,373		$	19,922		$	18,766
																						Timothy W. Sargent		Jeffrey G. Coslett - Vice President
	Federal Funds Sold & Overnight Deposits		31,622				9,186			Interest Expense	471			461			1,503			1,547		David S. Silverman
										Net Interest Income	6,315			5,912			18,419			17,219		John H. Steel		REGIONAL ADVISORY BOARD MEMBERS
	Interest Bearing Deposits in Banks		9,753				12,753			Provision for Loan Losses	—			150			150			400		Schuyler W. Sweet
	Investment Securities		60,670				56,181			Net Interest Income After Provision for Loan Losses	6,315			5,762			18,269			16,819		Union Bank		Michael R. Barrett - St. Johnsbury
	Loans Held for Sale		10,214				7,256																	Joel S. Bourassa - Northern NH
										Trust Income	171			171			523			538		DIRECTORS		Steven J. Bourgeois - St. Albans
	Loans, net		523,010				498,390			Noninterest Income	2,633			2,362			7,064			6,856		Kenneth D. Gibbons-Chairman		Stanley T. Fillion - Northern NH
																						Neil J. Van Dyke-Vice Chairman		Rosemary H. Gingue - St. Johnsbury
	Reserve for Loan Losses		(5,226		)		(5,044		)	Noninterest Expenses:												Steven J. Bourgeois		John M. Goodrich - St. Johnsbury
										Salaries & Wages	2,622			2,426			7,522			7,080		Dawn D. Bugbee		Richard L. Isabelle - St. Johnsbury
	Premises and Equipment, net		13,377				12,860															John M. Goodrich		Christopher M. Knapp - Northern NH
										Pension & Employee Benefits	865			739			2,659			2,242		Timothy W. Sargent		Coleen K. Kohaut - St. Albans
	Other Real Estate Owned, net		—				59															David S. Silverman		Justin P. Lavely - St. Johnsbury
										Occupancy Expense, net	297			293			923			986		John H. Steel		Daniel J. Luneau - St. Albans
	Accrued Interest & Other Assets		25,207				24,127															Schuyler W. Sweet		Mary K. Parent - St. Johnsbury
										Equipment Expense	553			479			1,603			1,346				Samuel H. Ruggiano - St. Albans
	Total Assets		$	672,579			$	620,266																David S. Silverman - All
										Other Expenses	1,842			1,737			5,219			4,966				Schuyler W. Sweet - Northern NH
	Total	6,179			5,674			17,926			16,620		Union Bank Offices (ATMs at all Branch Locations)
	LIABILITIES & SHAREHOLDERS' EQUITY	SEPT. 30, 2016				SEPT 30, 2015
										Income Before Taxes	2,940						2,621			7,930			7,593
										Income Tax Expense	672			571			1,764			1,642		VERMONT
	Noninterest Bearing Deposits		$	116,381			$	103,614
										Net income	$	2,268		$	2,050		$	6,166		$	5,951	Barre	Loan Center
	Interest Bearing Deposits		350,376				308,946																14 North Main Street		802.476.0062
										Earnings per share	$	0.51		$	0.45		$	1.38		$	1.33	Danville	421 Route 2 East		802.684.2211
	Time Deposits		105,429				131,325															Fairfax	Jct. Routes 104 & 128		802.849.2600
										Book Value Per Share							$	12.74		$	12.07	Hardwick	103 VT Route 15 West		802.472.8100
	Borrowed Funds		37,513				17,421															Jeffersonville	44 Main Street		802.644.6600
																						Johnson	198 Lower Main Street		802.635.6600
	Accrued Interest & Other Liabilities		6,075				5,142															Lyndonville	183 Depot Street		802.626.3100
																						Morrisville	20 Lower Main Street		802.888.6600
	Common Stock		9,869				9,864																65 Northgate Plaza		802.888.6860
																						Newport	Loan Center
	Additional Paid-in Capital		605				495																325 East Main Street		802.334.0750
																						St. Albans	15 Mapleville Depot		802.524.9000
	Retained Earnings		51,989				48,801															St. Johnsbury	364 Railroad Street		802.748.3131
	Accumulated Other Comprehensive (Loss) Income		(1,635		)		(1,326		)														325 Portland Street		802.748.3121
																						S. Burlington	Loan Center
																							30 Kimball Avenue		802.865.1000
	Treasury Stock at Cost		(4,023		)		(4,016		)													Stowe	47 Park Street		802.253.6600
																						NEW HAMPSHIRE
	Total Liabilities & Shareholders' Equity		$	672,579			$	620,266														Groveton	3 State Street		603.636.1611
	Standby letters of credit were $1,624,000 and $1,514,000 at September 30, 2016 and 2015, 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