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): May 10, 2017

(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 May 10, 2017, Union Bankshares, Inc. distributed its First Quarter2017 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 months ended March 31, 2017 and the declaration of a regular quarterly dividend.

Item 9.01: Financial Statements and Exhibits

d) Exhibits:

99.1 Union Bankshares, Inc. First Quarter 2017 Report to Shareholders distributed May 10, 2017 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.
May 10, 2017	/s/ Karyn J. Hale
	Karyn J. Hale
	Chief Financial Officer

EXHIBIT INDEX

Exhibit 99.1 Union Bankshares, Inc. First Quarter 2017 Report to Shareholders distributed May 10, 2017.

EX-99.1

Exhibit 99.1

			May 10, 2017
			We are pleased to present our First Quarter 2017 financial results. Consolidated net income for the first quarter of 2017 was $1.9 million, or $0.43 per share, compared to $1.8 million, or $0.39 per share, for the same period in 2016. Net interest income was $6.3 million for the quarter ended March 31, 2017, compared to $5.9 million for the same period in 2016, a 6.2% increase. The positive trend in net interest income was supplemented by a reduction in the provision for loan losses of $75 thousand and an increase of $47 thousand in noninterest income for the quarter ended March 31, 2017 compared to the quarter ended March 31, 2016. These positive variances were partially offset by an increase in noninterest expenses of $238 thousand, or 4.2%, for the comparison periods. Total assets increased $35.6 million, or 5.6% to reach $676.5 million as of March 31, 2017 from $640.8 million as of March 31, 2016. Total loans increased $21.2 million, or 4.1% to $541.0 million as of March 31, 2017 compared to $519.8 million as of March 31, 2016. Total deposits reached $582.1 million compared to prior year of $559.0 million, or growth of $23.1 million, or 4.1%. The Company had total capital of $57.2 million with a book value per share of $12.81 as of March 31, 2017 compared to $54.7 million and $12.26 per share as of March 31, 2016. Of particular note, the amount of total loans serviced by the bank exceeded $1.0 billion for the first time at the end of the first quarter. Our strategy of selling primarily residential loans allows us to generate gains on loan sales and recurring servicing revenue while reducing our exposure to long term fixed rates. In contrast to last year, this winter brought cold weather and snow, improving the regional travel and tourism industry’s results significantly. Likewise, the weather cooperated for our local maple sugar producers in Vermont and New Hampshire. Other significant developments bode well for our region.		The announcement that Vail Resorts will buy Stowe Mountain Resort and honor its Epic Pass (season pass) has generated additional interest in the area among entrepreneurs and investors who anticipate a generally busier resort community. The Northeast Kingdom EB-5/Jay Peak disaster seems to be sorting itself out with the opening of the new Hotel at Burke Resort and promises from the Receiver that all contractors who worked on Jay Peak and Burke would be made whole. While the weak Canadian Dollar has reduced some cross border trade and some companies are experiencing difficulty in recruiting staff, for the most part the economic environment is positive. Since 2008 we have seen gradual improvement of this market segment, generally strengthening west to east over time. The market continues to improve across our region, with inventory equilibrium having swung from too much inventory to too little inventory. Though this year started slowly because of the weather, we have seen an uptick in construction loans as folks are opting to build because they cannot find housing to buy. This bodes well for the construction trades. We would like to extend an invitation to you to join us at our 126th Annual Meeting to be held on May 17, 2017 at 3:00pm at the Charlmont Restaurant meeting room located at 116 VT Route 15W, Morrisville, Vermont. On April 19, 2017, the Board of Directors declared a regular quarterly cash dividend $0.29 per share payable May 10, 2017 to shareholders of record as of April 29, 2017. Sincerely,
	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, three loan centers and several ATMs throughout its geographical footprint. Union Bank has been helping people buy homes and local businesses create jobs in area communities since opening its doors over 125 years ago. Union Bank has earned an exceptional reputation for residential lending programs and has recently been named, for the fourth consecutive year, the USDA RD Vermont Home Lender of the year. Union Bank has also been designated as an SBA Preferred lender for its participation in small business lending.

	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	MARCH 31, 2017				MARCH 31, 2016					MARCH 31, 2017			MARCH 31, 2016			Steven J. Bourgeois		Karyn J. Hale - Chief Financial Officer
																	Dawn D. Bugbee		John H. Steel - Secretary
												(3 months ended)
																	John M. Goodrich		Kristy Adams Alfieri - Assistant Secretary
	Cash and Due from Banks		$	3,710			$	4,130		Interest Income		$	6,839		$	6,448
																	Timothy W. Sargent		Jeffrey G. Coslett - Vice President
	Federal Funds Sold & Overnight Deposits		21,257				9,887			Interest Expense		537			513		David S. Silverman
										Net Interest Income		6,302			5,935		John H. Steel		REGIONAL ADVISORY BOARD MEMBERS
	Interest Bearing Deposits in Banks		8,508				12,354										Schuyler W. Sweet
										Provision for Loan Losses		—			75
	Investment Securities		68,638				62,733			Net Interest Income After Provision for Loan Losses		6,302			5,860		Union Bank		Michael R. Barrett - St. Johnsbury
	Loans Held for Sale		2,847				6,725												Joel S. Bourassa - Northern NH
										Trust Income		178			172		DIRECTORS		Steven J. Bourgeois - St. Albans
	Loans, net		538,171				513,123			Noninterest Income		2,055			2,014		Kenneth D. Gibbons-Chairman		Stanley T. Fillion - Northern NH
																	Neil J. Van Dyke-Vice Chairman		Rosemary H. Gingue - St. Johnsbury
	Reserve for Loan Losses		(5,192		)		(5,125		)	Noninterest Expenses:							Steven J. Bourgeois		John M. Goodrich - St. Johnsbury
										Salaries & Wages		2,568			2,458		Dawn D. Bugbee		Richard L. Isabelle - St. Johnsbury
	Premises and Equipment, net		13,272				13,037										John M. Goodrich		Christopher M. Knapp - Northern NH
										Pension & Employee Benefits		879			943		Nancy C. Putnam		Coleen K. Kohaut - St. Albans
	Accrued Interest & Other Assets		25,240				23,955										Timothy W. Sargent		Justin P. Lavely - St. Johnsbury
										Occupancy Expense, net		390			317		David S. Silverman		Daniel J. Luneau - St. Albans
	Total Assets		$	676,451			$	640,819									John H. Steel		Mary K. Parent - St. Johnsbury
										Equipment Expense		534			509		Schuyler W. Sweet		Samuel H. Ruggiano - St. Albans
																			David S. Silverman - All
										Other Expenses		1,570			1,476				Schuyler W. Sweet - Northern NH
	Total		5,941			5,703		Union Bank Offices (ATMs at all Branch Locations)
	LIABILITIES & SHAREHOLDERS' EQUITY	MARCH 31, 2017				MARCH 31, 2016
												Income Before Taxes		2,594			2,343
										Income Tax Expense		664			584		VERMONT
	Noninterest Bearing Deposits		$	110,087			$	101,943
										Net income		$	1,930		$	1,759	Barre	Loan Center
	Interest Bearing Deposits		369,451				311,656											14 North Main Street		802.476.0062
										Earnings per share		$	0.43		$	0.39	Danville	421 Route 2 East		802.684.2211
	Time Deposits		102,527				145,405										Fairfax	Jct. Routes 104 & 128		802.849.2600
										Book Value Per Share		$	12.81		$	12.26	Hardwick	103 VT Route 15 West		802.472.8100
	Borrowed Funds		31,727				21,883										Jeffersonville	5062 VT Route 15		802.644.6600
																	Johnson	198 Lower Main Street		802.635.6600
	Accrued Interest & Other Liabilities		5,489				5,257										Lyndonville	183 Depot Street		802.626.3100
																	Morrisville	20 Lower Main Street		802.888.6600
	Common Stock		9,874				9,866											65 Northgate Plaza		802.888.6860
																	Newport	Loan Center
	Additional Paid-in Capital		658				542											325 East Main Street		802.334.0750
																	St. Albans	15 Mapleville Depot		802.524.9000
	Retained Earnings		53,722				50,080										St. Johnsbury	364 Railroad Street		802.748.3131
	Accumulated Other Comprehensive Loss		(3,054		)		(1,790		)									325 Portland Street		802.748.3121
																	S. Burlington	Loan Center
																		30 Kimball Avenue		802.865.1000
	Treasury Stock at Cost		(4,030		)		(4,023		)								Stowe	47 Park Street		802.253.6600
																	NEW HAMPSHIRE
	Total Liabilities & Shareholders' Equity		$	676,451			$	640,819									Groveton	3 State Street		603.636.1611
	Standby letters of credit were $1,574,000 and $1,624,000 at March 31, 2017 and 2016, 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