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 8, 2018

(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 8, 2018, Union Bankshares, Inc. distributed its Fourth 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 twelve months ended December 31, 2017 and the declaration of a regular quarterly dividend.

Item 9.01: Financial Statements and Exhibits

d) Exhibits:

99.1 Union Bankshares, Inc. Fourth Quarter 2017 Report to Shareholders distributed February 8, 2018 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 8, 2018	/s/ David S. Silverman
	David S. Silverman
	President/Chief Executive Officer
February 8, 2018	/s/ Karyn J. Hale
	Karyn J. Hale
	Chief Financial Officer

EXHIBIT INDEX

Exhibit 99.1 Union Bankshares, Inc. Fourth Quarter 2017 Report to Shareholders distributed February 8, 2018.

EX-99.1

Exhibit 99.1

			February 8, 2018
			We are pleased to report the financial results for your Company for the three and twelve months ended December 31, 2017. Consolidated net income for the three months ended December 31, 2017 was $1.9 million, or $0.43 per share, compared to $2.3 million, or $0.53 per share, for the same period in 2016, and $8.4 million, or $1.89 per share, for the year ended December 31, 2017, compared to $8.5 million, or $1.91 per share, for the same period in 2016. The decrease in earnings for three and twelve month comparison periods is due to a one-time charge to earnings of $447 thousand for the revaluation of the Company’s deferred tax assets as a result of the Tax Cuts and Jobs Act being signed into law on December 22, 2017. Net income before taxes increased $943 thousand or 8.5% year over year. 2017 was a year of good growth in key balance sheet measurements. Total assets increased to $745.7 million, up 7.9% year over year. Likewise, total loans increased to $595.4 million, up 9.9% year over year, and total deposits increased to $647.6 million, up 8.4% year over year. Asset quality at the end of the year remained very good, with only $36 thousand of Other Real Estate Owned on the balance sheet and net charge o¥ s for the year only amounting to $39 thousand on an almost $600 million book of loans. There are several economic tailwinds combining to help our region’s economy. Good early season snow and cold temperatures provided for great snow sport conditions for the past holiday season. While extended bitter cold temperatures may have dampened visitors enthusiasm to be outdoors, our local restaurants and retailers were more than happy to provide sustenance and activities to keep our guests captivated. Residential construction has continued strong and unabated, answering the need for more housing inventory as purchase activity has decreased properties available for sale in most of the markets we serve. Regional manufacturers and distributors report good		sales and solid books of business. Even on a Federal level, despite the sophomoric displays, from all participants, the eased regulatory climate and corporate tax reform appear to have a positive economic impact, at least measured by the unemployment rate and the stock market. The greatest concern among our local businesses has become recruiting and retaining a strong workforce to enable them to meet their customer’s demands. We have many projects, large and small, being worked on in 2018. If you have been around here you may have noticed that we have our Main O­ffice lobby closed for renovations.We anticipate completion of this project in April. As has been previously discussed, we are converting our digital and mobile banking applications to new, state of the art delivery products with conversion slated for March and April. Much work has gone into this project and we are very excited to offer this improved service to our customers. Also, as has been previously discussed, we are planning on terminating our Defined Benefit Pension Plan during the fourth quarter of 2018. This will have a one-time negative impact on fourth quarter earnings. Finally, we expect a positive impact on our effective Federal Tax Rate brought to us by the Tax Cuts and Jobs Act signed into law on December 22, 2017. The Board of Directors met on January 17, 2018 and considered 2017 financial performance and expected financial performance in 2018 and declared a dividend of 30 cents per share to record holders on January 27, 2018 payable on February 8, 2018. This represents a 1 cent increase compared to the previous quarter’s dividend. 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 and 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	DEC. 31, 2017				DEC. 31, 2016				DEC. 31, 2017			DEC. 31, 2016			DEC. 31, 2017			DEC. 31, 2016			Steven J. Bourgeois		Karyn J. Hale - Chief Financial Officer
																						Dawn D. Bugbee		John H. Steel - Secretary
											(3 months ended)						(12 months ended)
																						John M. Goodrich		Kristy Adams Alfieri - Assistant Secretary
	Cash and Due from Banks		$	3,857			$	4,272		Interest Income	$	7,680		$	6,914		$	29,017		$	26,836
																						Timothy W. Sargent		Jeffrey G. Coslett - Vice President
	Federal Funds Sold & Overnight Deposits		34,651				35,003			Interest Expense	615			558			2,255			2,061		David S. Silverman
										Net Interest Income	7,065			6,356			26,762			24,775		John H. Steel		REGIONAL ADVISORY BOARD MEMBERS
	Interest Bearing Deposits in Banks		9,352				9,504															Schuyler W. Sweet
										Provision for Loan Losses	50			—			200			150
	Investment Securities		66,439				66,555			Net Interest Income After Provision for Loan Losses	7,015			6,356			26,562			24,625		Union Bank		Michael R. Barrett - St. Johnsbury
	Loans Held for Sale		7,947				7,803																	Joel S. Bourassa - Northern NH
										Trust Income	191			214			739			737		DIRECTORS		Steven J. Bourgeois - St. Albans
	Loans, net		587,409				533,939			Noninterest Income	2,132			2,339			8,656			9,403		Kenneth D. Gibbons-Chairman		Stanley T. Fillion - Northern NH
																						Neil J. Van Dyke-Vice Chairman		Rosemary H. Gingue - St. Johnsbury
	Reserve for Loan Losses		(5,408		)		(5,247		)	Noninterest Expenses:												Steven J. Bourgeois		John M. Goodrich - St. Johnsbury
										Salaries & Wages	2,615			2,681			10,257			10,203		Dawn D. Bugbee		Richard L. Isabelle - St. Johnsbury
	Premises and Equipment, net		14,255				13,525															John M. Goodrich		Christopher M. Knapp - Northern NH
										Pension & Employee Benefits	924			866			3,708			3,525		Nancy C. Putnam		Coleen K. Kohaut - St. Albans
	Other Real Estate Owned, net		36				—															Timothy W. Sargent		Justin P. Lavely - St. Johnsbury
										Occupancy Expense, net	342			340			1,415			1,263		David S. Silverman		Daniel J. Luneau - St. Albans
	Accrued Interest & Other Assets		27,210				26,027															John H. Steel		Mary K. Parent - St. Johnsbury
										Equipment Expense	619			512			2,208			2,115		Schuyler W. Sweet		Samuel H. Ruggiano - St. Albans
	Total Assets		$	745,748			$	691,381																David S. Silverman - All
										Other Expenses	1,652			1,722			6,317			6,550				Schuyler W. Sweet - Northern NH
	Total	6,152			6,121			23,905			23,656		Union Bank Offices (ATMs at all Branch Locations)
	LIABILITIES & SHAREHOLDERS' EQUITY	DEC. 31, 2017				DEC. 31, 2016
										Income Before Taxes	3,186						2,788			12,052			11,109
										Income Tax Expense	1,264			442			3,603			2,598		VERMONT
	Noninterest Bearing Deposits		$	127,824			$	112,384
										Net income	$	1,922		$	2,346		$	8,449		$	8,511	Barre	Loan Center
	Interest Bearing Deposits		418,621				382,083																14 North Main Street		802.476.0062
										Earnings per share	$	0.43		$	0.53		$	1.89		$	1.91	Danville	421 Route 2 East		802.684.2211
	Time Deposits		101,129				103,193															Fairfax	Jct. Routes 104 & 128		802.849.2600
										Book Value Per Share							$	13.17		$	12.61	Hardwick	103 VT Route 15 West		802.472.8100
	Borrowed Funds		31,581				31,595															Jeffersonville	5062 VT Route 15		802.644.6600
																						Johnson	198 Lower Main Street		802.635.6600
	Accrued Interest & Other Liabilities		7,770				5,847															Lyndonville	183 Depot Street		802.626.3100
																						Morrisville	20 Lower Main Street		802.888.6600
	Common Stock		9,882				9,874																65 Northgate Plaza		802.888.6860
																						Newport	Loan Center
	Additional Paid-in Capital		755				620																325 East Main Street		802.334.0750
																						St. Albans	15 Mapleville Depot		802.524.9000
	Retained Earnings		56,359				53,086															St. Johnsbury	364 Railroad Street		802.748.3131
	Accumulated Other Comprehensive Loss		(4,096		)		(3,279		)														325 Portland Street		802.748.3121
																						S. Burlington	Loan Center
																							30 Kimball Avenue		802.865.1000
	Treasury Stock at Cost		(4,077		)		(4,022		)													Stowe	47 Park Street		802.253.6600
																						NEW HAMPSHIRE
	Total Liabilities & Shareholders' Equity		$	745,748			$	691,381														Groveton	3 State Street		603.636.1611
	Standby letters of credit were $2,064,000 and $1,624,000 at December 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