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): August 9, 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 August 9, 2017, Union Bankshares, Inc. distributed its Second 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 and six months ended June 30, 2017 and the declaration of a regular quarterly dividend.

Item 9.01: Financial Statements and Exhibits

d) Exhibits:

99.1 Union Bankshares, Inc. Second Quarter 2017 Report to Shareholders distributed August 9, 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.
August 9, 2017	/s/ David S. Silverman
	David S. Silverman
	President/Chief Executive Officer
August 9, 2017	/s/ Karyn J. Hale
	Karyn J. Hale
	Chief Financial Officer

EXHIBIT INDEX

Exhibit 99.1 Union Bankshares, Inc. Second Quarter 2017 Report to Shareholders distributed August 9, 2017.

EX-99.1

Exhibit 99.1

			August 9, 2017
			We are pleased to report your company’s financial results for the period ended June 30, 2017. Consolidated net income for the three months ended June 30, 2017 was $2.2 million, or $0.50 per share, compared to $2.1 million, or $0.48 per share, for the same period in 2016, and $4.2 million, or $0.93 per share, for the six months ended June 30, 2017, compared to $3.9 million, or $0.87 per share, for the same period in 2016. Net income for the second quarter of 2017 was up 4.1% for the same period in 2016 and is up 6.6% year to date compared to the same period in 2016. Our SEC quarterly filings have detailed information about your company. We work hard on these filings and recommend at least an occasional review of these documents. We can report a few highlights here in this letter. Year to date net interest income is up 6.5% compared to last year, while non-interest expense only rose by 2.6% year to date. Credit quality remains strong, with nonperforming loans amounting to only 0.57% of total loans, while net charge offs for the first half of year were $79 thousand. Year to date return on average assets was 1.23% and return on average equity was 14.60%. We have just completed another "muni season", our name for the municipal loan cycle. Most of the towns, villages and school districts we serve have a July 1 through June 30 fiscal year. In cases where we issue short term Tax Anticipation Notes, these notes must be paid to zero at least once per year. The typical cycle is that all of these TANs are paid to zero on June 30 and then nearly immediately re-advanced in early July. During part of May and most of June we field opportunities to bid on municipal lending opportunities and it can be very hectic for those involved. We take great pride in being the bank of account for many of our local municipalities, and we strive to retain and expand this business as part of our core deposit acquisition strategy. This year we had a good sized team involved in this process from pricing, to personal interfacing with municipal officials, to keeping track of bids and preparing new documentation. This year we did very well, and it was a terrific team effort.		Economically our region seems to be doing quite well. It appears that all of our region is now participating in the economic recovery, at least based on real estate activity. Travel and tourism is coming off of a very good winter and all reports indicate a robust beginning of the summer/fall season. The maple sugar crop was late but bountiful, reportedly the second largest crop in history. Not unlike other commodities, this has caused producer prices to drop a bit, but hopefully most make up for this financially in volume. There are a couple of clouds on the horizon. Traditional dairy farming remains a challenge, with prices paid to farmers being below the cost of production for many farmers. This is currently coupled by an extremely wet growing season thus far, preventing much hay production and stunting the growth of other feed stock. This forebodes high feed prices in the future. However our exposure to dairy is relatively limited. The other challenge is the weak Canadian dollar. This impacts travel and tourism to a degree, especially in our northern communities and around Lake Champlain. This by itself is not impacting us significantly. As a reminder, our Asset Management Group can assist you and your families with Trust Administration matters as well as Wealth Management. If you would like to discuss this further please contact Lura Jacques, our Managing Director at 802- 527-3220. On July 19, 2017, the Board of Directors declared a regular quarterly cash dividend $0.29 per share payable August 9, 2017 to shareholders of record as of July 28, 2017. Please find your dividend check or advice of remittance enclosed. 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	JUNE 30, 2017				JUNE 30, 2016				JUNE 30, 2017			JUNE 30, 2016			JUNE 30, 2017			JUNE 30, 2016			Steven J. Bourgeois		Karyn J. Hale - Chief Financial Officer
																						Dawn D. Bugbee		John H. Steel - Secretary
											(3 months ended)						(6 months ended)
																						John M. Goodrich		Kristy Adams Alfieri - Assistant Secretary
	Cash and Due from Banks		$	3,466			$	4,220		Interest Income	$	7,101		$	6,688		$	13,940		$	13,136
																						Timothy W. Sargent		Jeffrey G. Coslett - Vice President
	Federal Funds Sold & Overnight Deposits		10,969				19,979			Interest Expense	516			519			1,053			1,032		David S. Silverman
										Net Interest Income	6,585			6,169			12,887			12,104		John H. Steel		REGIONAL ADVISORY BOARD MEMBERS
	Interest Bearing Deposits in Banks		8,356				10,213															Schuyler W. Sweet
										Provision for Loan Losses	—			75			—			150
	Investment Securities		66,976				60,139			Net Interest Income After Provision for Loan Losses	6,585			6,094			12,887			11,954		Union Bank		Michael R. Barrett - St. Johnsbury
	Loans Held for Sale		5,406				6,749																	Joel S. Bourassa - Northern NH
										Trust Income	191			180			369			352		DIRECTORS		Steven J. Bourgeois - St. Albans
	Loans, net		536,908				503,060			Noninterest Income	2,142			2,417			4,197			4,431		Kenneth D. Gibbons-Chairman		Stanley T. Fillion - Northern NH
																						Neil J. Van Dyke-Vice Chairman		Rosemary H. Gingue - St. Johnsbury
	Reserve for Loan Losses		(5,168		)		(5,226		)	Noninterest Expenses:												Steven J. Bourgeois		John M. Goodrich - St. Johnsbury
										Salaries & Wages	2,504			2,442			5,072			4,900		Dawn D. Bugbee		Richard L. Isabelle - St. Johnsbury
	Premises and Equipment, net		13,233				13,090															John M. Goodrich		Christopher M. Knapp - Northern NH
										Pension & Employee Benefits	951			851			1,830			1,794		Nancy C. Putnam		Coleen K. Kohaut - St. Albans
	Accrued Interest & Other Assets		24,777				24,245															Timothy W. Sargent		Justin P. Lavely - St. Johnsbury
										Occupancy Expense, net	363			309			753			626		David S. Silverman		Daniel J. Luneau - St. Albans
	Total Assets		$	664,923			$	636,469														John H. Steel		Mary K. Parent - St. Johnsbury
										Equipment Expense	523			541			1,057			1,050		Schuyler W. Sweet		Samuel H. Ruggiano - St. Albans
																								David S. Silverman - All
										Other Expenses	1,530			1,665			3,100			3,141				Schuyler W. Sweet - Northern NH
	Total	5,871			5,808			11,812			11,511		Union Bank Offices (ATMs at all Branch Locations)
	LIABILITIES & SHAREHOLDERS' EQUITY	JUNE 30, 2017				JUNE 30, 2016
										Income Before Taxes	3,047						2,883			5,641			5,226
										Income Tax Expense	820			744			1,484			1,328		VERMONT
	Noninterest Bearing Deposits		$	108,169			$	103,918
										Net income	$	2,227		$	2,139		$	4,157		$	3,898	Barre	Loan Center
	Interest Bearing Deposits		356,541				333,402																14 North Main Street		802.476.0062
										Earnings per share	$	0.50		$	0.48		$	0.93		$	0.87	Danville	421 Route 2 East		802.684.2211
	Time Deposits		99,913				110,644															Fairfax	Jct. Routes 104 & 128		802.849.2600
										Book Value Per Share							$	13.10		$	12.55	Hardwick	103 VT Route 15 West		802.472.8100
	Borrowed Funds		36,395				27,808															Jeffersonville	5062 VT Route 15		802.644.6600
																						Johnson	198 Lower Main Street		802.635.6600
	Accrued Interest & Other Liabilities		5,448				4,714															Lyndonville	183 Depot Street		802.626.3100
																						Morrisville	20 Lower Main Street		802.888.6600
	Common Stock		9,874				9,869																65 Northgate Plaza		802.888.6860
																						Newport	Loan Center
	Additional Paid-in Capital		697				586																325 East Main Street		802.334.0750
																						St. Albans	15 Mapleville Depot		802.524.9000
	Retained Earnings		54,655				50,970															St. Johnsbury	364 Railroad Street		802.748.3131
	Accumulated Other Comprehensive Loss		(2,722		)		(1,418		)														325 Portland Street		802.748.3121
																						S. Burlington	Loan Center
																							30 Kimball Avenue		802.865.1000
	Treasury Stock at Cost		(4,047		)		(4,024		)													Stowe	47 Park Street		802.253.6600
																						NEW HAMPSHIRE
	Total Liabilities & Shareholders' Equity		$	664,923			$	636,469														Groveton	3 State Street		603.636.1611
	Standby letters of credit were $1,604,000 and $1,624,000 at June 30, 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