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 9, 2019

(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:

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

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

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

c    Pre-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 Exhibits 99.1 and 99.2 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 9, 2019, Union Bankshares, Inc. distributed its First Quarter2019 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, 2019 and the declaration of a regular quarterly dividend.

Also on May 9, 2019, Union Bankshares, Inc. distributed its 2018 Year in Review, a copy of which is furnished with this Form 8-K as Exhibit 99.2.

Item 9.01: Financial Statements and Exhibits

d) Exhibits:

99.1	Union Bankshares, Inc. First Quarter 2019 Report to Shareholders distributed May 9, 2019 referred to in Item 2.02 of the Report as furnished, not filed; herewith.
99.2	Union Bankshares, Inc. 2018 Year in Review distributed May 9, 2019 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 9, 2019	/s/ Karyn J. Hale
	Karyn J. Hale
	Chief Financial Officer

EXHIBIT INDEX

Exhibit 99.1	Union Bankshares, Inc. First Quarter 2019 Report to Shareholders distributed May 9, 2019.
Exhibit 99.2	Union Bankshares, Inc. 2018 Year in Review distributed May 9, 2019.

EX-99.1

Exhibit 99.1

			May 9, 2019
			We are pleased to report a summary of financial results for Union Bankshares, Inc. for the three months ended March 31, 2019. Consolidated net income for the first quarter of 2019 was $2.6 million, or $0.59 per share, compared to $2.7 million, or $0.62 per share, for the same period in 2018. The decrease in earnings for the comparison periods occurred primarily due to a onetime increase in earnings of $443 thousand from the gain on the sale of a former branch building and proceeds from a bank owned insurance policy in 2018 that did not repeat in 2019. Total Assets increased to $813.3 million as of March 31, 2019 due to continued loan demand. Total loans were $656.4 million as of March 31, 2019 compared to $595.4 million of March 31, 2018, an increase of $61 million, which was funded using a combination of core deposits and wholesale funding options such as brokered deposits and Federal Home Loan Bank advances. Total deposits reached $700.4 million as of March 31, 2019 compared to $623.8 million a year ago, an increase of $76.5 million, or 12.3%. The Company had total capital of $66.7 million with a book value per share of $14.94 as of March 31, 2019 compared to $59.2 million and $13.25 per share as of March 31, 2018. Interest income was $8.7 million for three months ended March 31, 2019 compared to $7.6 million for the three months ended March 31, 2018, an increase of $1.1 million, or 14.3%. Interest expense was $1.2 million for three months ended March 31, 2019 compared to $647 thousand for the three months ended March 31, 2018, an increase of $583 thousand, or 90.1%. Competition for customer deposits remains strong and continues to put upward pressure on the cost of funds. At this writing spring is reluctantly emerging after a lengthy and hard winter season. Abundant snow and cold weather were friendly to snow sport enthusiasts, the tourism industry, fuel dealers and snow removal services among others. The local economy is relatively healthy, though a lack of available workers as well as a lack of real estate inventory remains a challenge.		We would like to take this opportunity to remind you that you are invited to the 128th Annual Meeting of Union Bankshares, Inc. which will be held on May 15, 2019 at 3:00pm at the Charlmont Restaurant meeting room, located at 116 Vermont Route 15 West, Morrisville, Vermont. A reception will be held immediately after the Annual Meeting. This year’s Annual Meeting will mark the retirement of Kenneth D. Gibbons from the Board of Directors. Ken joined Union Bank in 1984, became President and CEO in 1991, and served 21 years as CEO. Including his time on the Board, Ken will have served Union Bankshares, Inc. for 35 years. In addition to his service to the bank, Ken has been, and remains very active in the non-profit sector, and was recognized for his commitment to the community by being the recipient of the Outstanding Community Service Banker award in 2011 from the Vermont Banker’s Association. Ken’s many legacies include a history of financial success, staff mentoring, business acumen, guidance, and friendship to current and past shareholders, board members, staff, and customers. He will be missed. On April 17, 2019, the Board of Directors declared a cash dividend of $0.31 payable May 9, 2019 to shareholders of record as of April 30, 2019. 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 P.O. 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 18 banking offices, two 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 127 years ago. Union Bank has earned an exceptional reputation for residential lending programs and has been recognized by the US Department of Agriculture, Rural Development for the positive impact made in lives of first time home buyers. Union Bank is consistently one of the top Vermont Housing Finance Agency mortgage originators. Additionally, 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
	ASSETS	MAR 31, 2019				MAR 31, 2018					MAR 31, 2019			MAR 31, 2018			Neil J. Van Dyke-Vice Chairman		David S. Silverman - President & CEO
																	Steven J. Bourgeois		Karyn J. Hale - Chief Financial Officer
												(3 months ended)
																	Dawn D. Bugbee		John H. Steel - Secretary
	Cash and Due from Banks		$	3,706			$	3,328		Interest Income		$	8,654		$	7,571
																	John M. Goodrich		Kristy Adams Alfieri - Assistant Secretary
																	Nancy C. Putnam		Jeffrey G. Coslett - Vice President
	Federal Funds Sold & Overnight Deposits		22,886				9,918			Interest Expense		1,230			647		Timothy W. Sargent
										Net Interest Income		7,424			6,924		David S. Silverman
	Interest Bearing Deposits in Banks		8,553				9,601										John H. Steel
										Provision for Loan Losses		50			—		Schuyler W. Sweet
	Investment Securities		80,135				68,942			Net Interest Income After Provision for Loan Losses		7,374			6,924		Union Bank		REGIONAL ADVISORY BOARD MEMBERS
	Loans Held for Sale		5,647				2,938
										Trust Income		168			193		DIRECTORS
	Loans, net		650,769				592,457			Noninterest Income		2,002			2,278		Kenneth D. Gibbons-Chairman		Michael R. Barrett - St. Johnsbury
																	Neil J. Van Dyke-Vice Chairman		Steven J. Bourgeois - St. Albans
	Reserve for Loan Losses		(5,572		)		(5,405		)	Noninterest Expenses:							Joel S. Bourassa		Stanley T. Fillion - Northern NH
										Salaries & Wages		2,798			2,649		Steven J. Bourgeois		Rosemary H. Gingue - St. Johnsbury
	Premises and Equipment, net		18,767				14,298										Dawn D. Bugbee		John M. Goodrich - St. Johnsbury
																	John M. Goodrich		Christopher M. Knapp - Northern NH
	Accrued Interest & other Assets		28,441				26,654			Employee Benefits		996			958		Nancy C. Putnam		Coleen K. Kohaut - St. Albans
																	Timothy W. Sargent		Justin P. Lavely - St. Johnsbury
	Total Assets		$	813,332			$	722,731		Occupancy Expense, net		438			395		David S. Silverman		Daniel J. Luneau - St. Albans
																	John H. Steel		Mary K. Parent - St. Johnsbury
										Equipment Expense		565			535		Schuyler W. Sweet		Samuel H. Ruggiano - St. Albans
																			David S. Silverman - All
										Other Expenses		1,727			1,598				Schuyler W. Sweet - Northern NH
																	Union Bank Offices (ATMs at all Branch Locations)
	LIABILITIES & SHAREHOLDERS' EQUITY	MAR 31, 2019				MAR 31, 2018				Total		6,524			6,135
										Income Before Taxes		3,020			3,260		VERMONT
	Noninterest Bearing Deposits		$	127,838			$	128,951
																	Berlin	1028 US Route 302		802.476.0061
	Interest Bearing Deposits		425,897				392,027			Income Tax Expense		399			513		Danville	421 Route 2 East		802.684.2211
																	Fairfax	Jct. Routes 104 & 128		802.849.2600
	Time Deposits		146,638				102,865			Net income		$	2,621		$	2,747	Hardwick	103 VT Route 15 West		802.472.8100
																	Jeffersonville	5062 VT Route 15		802.644.6600
	Borrowed Funds		37,784				31,265			Earnings per share		$	0.59		$	0.62	Johnson	198 Lower Main Street		802.635.6600
																	Lyndonville	183 Depot Street		802.626.3100
	Accrued Interest & Other Liabilities		8,444				8,459			Book Value Per Share		$	14.94		$	13.25	Morrisville	20 Lower Main Street		802.888.6600
																		65 Northgate Plaza		802.888.6860
	Common Stock		9,890				9,882										St. Albans	15 Mapleville Depot		802.524.9000
																	St. Johnsbury	364 Railroad Street		802.748.3131
	Additional Paid-in Capital		967				803											325 Portland Street		802.748.3121
	Retained Earnings																S. Burlington	Loan Center
			60,147				58,604											30 Kimball Avenue		802.865.1000
	Accumulated Other Comprehensive Loss		(83		)		(6,046		)								Stowe	47 Park Street		802.253.6600
																	NEW HAMPSHIRE
	Treasury Stock at Cost		(4,190		)		(4,079		)								Groveton	3 State Street		603.636.1611
																	Littleton	263 Dells Road		603.444.7136
	Total Liabilities & Shareholders' Equity		$	813,332			$	722,731										76 Main Street		603.444.5321
	Standby letters of credit were $2,085,000 and $2,035,000 at March 31, 2019 and 2018, respectively.																Lincoln	135 Main Street		603.745.4000
																	North Conway	Commercial Loan Center
																		2541 White Mountain Hwy		603.662.9408
																	N. Woodstock	155 Main Street		603.745.2488

EX-99.2

Exhibit 99.2

	OFFICERS
	Kristy Adams Alfieri - Assistant Vice President
DIRECTORS	Erica B. Antonucci - Assistant Vice President
	Diana M. Ashley - Assistant Vice President
Kenneth D. Gibbons - Chairman	Danika E. Barry - Credit Administrative Officer
Neil J. Van Dyke - Vice Chairman	Rhonda L. Bennett - Vice President
Steven J. Bourgeois	Karen L. Blanchard Smith - Vice President
Dawn D. Bugbee	Judy R. Boulerice - Vice President
John M. Goodrich	Sherrie A. Bull - Vice President
Nancy C. Putnam	Lisa M. Charland - AssistantVice President
Timothy W. Sargent	Stacey L.B. Chase - Vice President
David S. Silverman	Barbara J. Churchill - Assistant Vice President
John H. Steel	Everett C. Comstock - Assistant Vice President
Schuyler W. Sweet	Jeffrey G. Coslett - Senior Vice President
	Jennifer M. Degree - Assistant Vice President
OFFICERS	Ronald C. Dion - Vice President
	Charles W. Goldstein - Assistant Vice President
Kenneth D. Gibbons - Chairman	Don D. Goodhue - Vice President
David S. Silverman - President & CEO	Jonathan J. Gould - Senior Vice President
Karyn J. Hale - Chief Financial Officer	Melissa A. Greene - Vice President
John H. Steel - Secretary	Stacie W. Griffiths - Assistant Vice President
Kristy Adams Alfieri - Assistant Secretary	Paul E. Grogan - Assistant Vice President
Jeffrey G. Coslett - Vice President	Karyn J. Hale - Senior Vice President
	Randy L. Hannett - Assistant Vice President
	Robert D. Hofmann - Senior Vice President
	Patricia N. Hogan - Senior Vice President
	Lura L. Jacques - Vice President
DIRECTORS	Lynne P. Jewett - Vice President
	Therese H. Johansson - Vice President
Kenneth D. Gibbons - Chairman	Stephen H. Kendall - Senior Vice President
Neil J. Van Dyke - Vice Chairman	Susan F. Lassiter - Vice President
Joel S. Bourassa	Edward L. Levite - Senior Loan Originator
Steven J. Bourgeois	Carrie R. Locklin - Vice President
Dawn D. Bugbee	Stacey M. Madden - Assistant Vice President
John M. Goodrich	Gretchen R. Maginnis - Assistant Vice President
Nancy C. Putnam	John L. Malm - Vice President
Timothy W. Sargent	Debra J. Marcoux - Accounting Officer
David S. Silverman	Robyn A. Masi - Vice President
John H. Steel	Jessica L. Miller - Assistant Vice President
Schuyler W. Sweet	Melynda J. Miller - Assistant Vice President
REGIONAL ADVISORY BOARD MEMBERS	Shane D. Mispel - Assistant Vice President
	Samantha A. Norrie - Assistant Vice President
	Tina L. Norton - Assistant Vice President
Michael R. Barrett - St. Johnsbury	Lisa M. Patch - Commercial Loan Administrative Officer
Steven J. Bourgeois - St. Albans	Susan J. Perry - Vice President
Stanley T. Fillion - Northern New Hampshire	Chandra L. Pollard - Assistant Vice President
Rosemary H. Gingue - St. Johnsbury	Bradley S. Prior - Assistant Vice President
John M. Goodrich - St. Johnsbury	Craig S. Provost - Vice President
Christopher M. Knapp - Northern New Hampshire	Mira M. Rainville- Assistant Vice President
Coleen K. Kohaut - St. Albans	Timothy M. Ross - Vice President
Justin P. Lavely - St. Johnsbury	David S. Silverman - President & CEO
Daniel J. Luneau - St. Albans	Abbie L. Small - Assistant Vice President
Mary K. Parent - St. Johnsbury	Curtis C. Swan - Vice President
Samuel H. Ruggiano - St. Albans	Carrie W. Tallman - Assistant Vice President
David S. Silverman - All	Linda M. Watson - Retail Credit Administrative Officer
Schuyler W. Sweet - Northern New Hampshire	Melyssa S. Whitcomb - Vice President
	Suzanne M. Whitney - Marketing Officer

	MAY 9, 2019
				2018			2017			2016			2015
			Balance Sheet Data				(Dollars in thousands, except per share data)
Overall, the directors and management are pleased with our 2018 financial performance, despite the one-time charge to earnings of $3.7 million, net of tax effect. Total assets reached a new record of $805.3 million as of December 31, 2018 representing growth of 8.0% compared to a year ago. We are pleased to provide you with additional highlights of our year ended December 31, 2018: • Total stockholders’s equity increased 9.9% to $64.5 million compared to December 31, 2017; • Book value per common share increased 9.9% to $14.44 as of December 31, 2018; • Increase in dividends paid per common share from $1.16 in 2017 to $1.20 in 2018. We have previously discussed the termination of our Defined Benefit Pension Plan (DBPP) in our quarterly shareholder letters. In 2012, the bank froze the DBPP, while also making significant enhancements to the company sponsored 401k plan. In November 2018, the plan was terminated and participants received their choice of life annuities or lump sum distributions. This removed the longtime potential pension benefit liability from the company’s balance sheet and eliminated related earnings volatility. Through strategic decisions coupled with opportunism we have worked on four geographic growth initiatives. In July 2018, we successfully transitioned our Barre loan office to a nearby full-service branch on US Route 302 in Berlin, Vermont. During 2017, the Board and management discussed and planned expanding our presence into Chittenden County, Vermont’s most populous county. We were able to identify two excellent sites in Jericho and Williston. Site selection, permitting, design and bidding took most of the year which led to breaking ground at both sites in the fall. We anticipate opening the Jericho office in a few weeks and the Williston Office in mid-July. The Williston facility will host a new branch as well as the residential and commercial lending staff currently located in South Burlington. We are very excited about these two new branch locations.	We have also been looking east and evaluating additional locations in New Hampshire. We identified the North Conway region as being a good fit for Union Bank. We were fortunate to recruit an experienced commercial lender with deep roots in the area and have opened a Loan Production Office on US Route 302 in North Conway. We are now working on recruiting a residential lender and eventually hope to open a full service branch. In 2018, we developed new advertising to exemplify the customer service that underpins the Union Bank brand. In addition to detailing what Union Bank means to commercial banking customers and to our capable employees, we featured the story of a first-time homebuyer and how our mortgage lending team helped make her dreams a reality. We effectively serve the full range of customer needs and as a result, more Vermonters choose us for their mortgage needs than any other bank. We are particularly proud to have again been recognized in 2018 as a leader in affordable housing lending. Both the advertising and the specifics on our affordable lending awards appear on our web homepage, www.UBLocal.com. We invite you to the 128th Annual Meeting of Union Bankshares, Inc. on Wednesday, May 15, 2019 at 3:00pm at the Charlmont Restaurant meeting room, located on Route 15 in Morrisville, Vermont. Along with normal business, the Board, employees and shareholders will have the occasion to mark Ken’s retirement from the board and his total of 35 years’ service to the bank. We will also hold a question and answer session followed by a reception. We always enjoy meeting and chatting with our shareholders and hope you will attend.		Total assets		$805,337			$745,831			$691,381			$628,879
			Investment securities	73,405			66,439			66,555			59,327
			Loans and loans held for sale	645,360			594,562			541,093			506,141
			Allowance for loan losses	5,739			5,408			5,247			5,201
			Deposits	706,770			647,574			597,660			560,408
			Borrowed funds	27,281			31,581			31,595			9,564
			Stockholders' equity1	64,491			58,661			56,279			53,568
			Income Statement Data
			Total interest and dividend income		$32,180			$29,017			$26,836			$25,144
			Total interest expense	(3,581		)	(2,255		)	(2,061		)	(2,025		)
			Net interest and dividend income	28,599			26,762			24,775			23,119
			Provision for loan losses	(450		)	(200		)	(150		)	(550		)
			Noninterest income	9,473			9,395			10,140			9,792
			Noninterest expenses	(29,363		)	(23,905		)	(23,656		)	(21,820		)
			Income before provision for income taxes	8,259			12,052			11,109			10,541
			Provision for income taxes	(1,187		)	(3,603		)	(2,598		)	(2,663		)
			Net income		$7,072			$8,449			$8,511			$7,878
			Per Common Share Data
			Net income2		$1.58			$1.89			$1.91			$1.77
			Cash dividends paid	1.20			1.16			1.11			1.08
			Book value1	14.44			13.14			12.61			12.02
			Weighted average number of shares outstanding	4,465,675			4,462,192			4,459,001			4,458,037
	Sincerely,		Number of shares outstanding	4,466,679			4,465,576			4,462,135			4,457,177
			1Stockholders' equity includes unrealized gains or losses, net of applicable income taxes, on investment securities classified as "available-for-sale" and includes the unfunded liability for pension benefits, net of taxes for the defined benefit pension plan.
	Kenneth D. Gibbons	David S. Silverman	2Computed using the weighted average number of shares outstanding for the period.
	Chairman	President & CEO

2018 Year In Review 2018 Year In Review