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): January 4, 2002

           (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                          000-28449             03-0283552

(Address of principal executive offices)
20 Main St., P.O. Box 667         (Zip Code)
Morrisville, VT                   05661-0667

Registrant's telephone number, including area code: (802) 888-6600

        (Former name or former address, if changed since last report)

                               Not applicable


Item 5: Other Events

      1)   On January 4th we announced the declaration of a quarterly
           dividend to the American Stock Exchange, the Federal Reserve
           Bank of Boston, Dow Jones/Wall Street Journal, Reuters Ltd., The
           Depository Trust Company and various brokerage houses.

      2)   On January 4th we announced fourth quarter and year-to-date
           earnings for 2001 and a dividend via a press release to the
           American Stock Exchange, the Federal Reserve Bank of Boston, Dow
           Jones/Wall Street Journal, Reuters Ltd., The Depository Trust
           Company and various brokerage houses.


The Company may from time to time make written or oral statements that are
considered "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements may
include financial projections, statements of plans and objectives for
future operations, estimates of future economic performance and assumptions
relating thereto. The Company may include forward-looking statements in its
filings with the Securities and Exchange Commission, in its reports to
stockholders, in other written materials, and in statements made by senior
management to analysts, rating agencies, institutional investors,
representatives of the media and others.

By their very nature, forward-looking statements are subject to
uncertainties, both general and specific, and risk exists that predictions,
forecasts, projections and other estimates contained in forward-looking
statements will not be achieved. Also when we use any of the words
"believes," "expects," "anticipates" or similar expressions, we are making
forward-looking statements. Many possible events or factors could affect
the future financial results and performance of our company. This could
cause results or performance to differ materially from those expressed in
our forward-looking statements. The possible events or factors that might
affect our forward-looking statements include, but are not limited to, the
following:

*     Uses of monetary, fiscal and tax policy by various governments
*     Political, legislative or regulatory developments in Vermont, New
      Hampshire or the United States including changes in laws concerning
      taxes, banking and other aspects of the financial services industry
*     Developments in general economic or business conditions, including
      interest rate fluctuations, market fluctuations and perceptions, and
      inflation
*     Changes in the competitive environment for financial services
      organizations
*     The company's ability to retain key personnel
*     Changes in technology including demands for greater automation.

(a)   Exhibits. The following exhibits are filed herewith as part of this
report:

      99.1  Union Bankshares, Inc., Dividend Announcement dated as of
            January 4, 2002.
      99.2  Union Bankshares, Inc., Fourth Quarter Press Release announcing
            fourth quarter and year-to-date 2001 earnings and declaration
            of a dividend dated January 4, 2002.


      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.


January 7, 2002                    /s/ Kenneth D. Gibbons
                                   ------------------------------------------
                                   Kenneth D. Gibbons, President

January 7, 2002                    /s/ Marsha A. Mongeon
                                   ------------------------------------------
                                   Marsha A. Mongeon, Chief Financial Officer

- ---------------------------------------------------------------------------
                                EXHIBIT INDEX

      99.1  Union Bankshares, Inc., Dividend Announcement dated
            January 4, 2002.

      99.2  Union Bankshares, Inc., Fourth Quarter Press Release announcing
            fourth quarter and year-to-date earnings and declaration of a
            dividend dated January 4, 2002.

EX-99

                                                               Exhibit 99.1

On January 4, 2002 the Board of Directors of Union Bankshares, Inc. (AMEX -
UNB) declared a quarterly dividend on its common stock of $.28 per share
payable January 17, 2002 to shareholders of record January 14, 2002.

EX-99

                                                               Exhibit 99.2

                            FOR IMMEDIATE RELEASE

   Union Bankshares Announces 2001 Earnings and Quarterly Dividend Payment

Morrisville, VT January 4, 2002 - Union Bankshares, Inc. (AMEX - UNB) today
announced net income for the quarter ended December 31, 2001 was $1.197
million or $.40 per share compared to $1.307 million or $.43 per share for
the same period last year.

Net income for the year ended December 31, 2001 was $4.83 million or $1.59
per share compared to $4.80 million or $1.58 per share for 2000.

A dramatic decrease in interest rates during the year narrowed the
companies' interest margins, which was partially offset by a $26 million
increase in loans outstanding and asset growth of $33 million.

A quarterly dividend of $.28 per share was declared on January 4, 2002 to
shareholders of record January 14, 2002, payable January 17th.

Union Bank and Citizens Savings Bank and Trust Company are wholly-owned
subsidiaries of Union Bankshares, Inc. offering deposit, loan, trust and
commercial banking services in North Central Vermont.


This press release contains forward-looking statements. Investors are
cautioned that all forward-looking statements involve risks and
uncertainties, and several factors could cause actual results to differ
materially from those in the forward-looking statements. Forward-looking
statements relate to anticipated revenues, gross margins, earnings, and
growth of the market for our products. The following factors, among others,
could cause actual results to differ from those indicated in the forward-
looking statements: uncertainties associated with market acceptance of and
demand for the company's products, impact of competitive products and
pricing, dependence on third party suppliers, uncertainties associated with
the development of technology, and the dependence on intellectual property
rights. Investors are directed to the company's 2000 annual report, which
is available from the company without charge for a more complete
description of the company's business.