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 15, 2003

           (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 15th 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 15th we announced fourth quarter and year to date
            earnings 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.

             CAUTIONARY ADVICE ABOUT FORWARD LOOKING STATEMENTS

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 those
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,
including those beyond the control of management, 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
      accounting, 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
*     Acts of terrorism
*     Adverse changes in the securities market
*     Unanticipated lower revenues, loss of customers or business or higher
      operating expenses

While relying on forward-looking statements to make decisions with respect
to the Company, investors and others are cautioned to consider these and
other risks and uncertainties.

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

      99.1  Union Bankshares, Inc., Dividend Announcement dated as of
            January 15, 2003.
      99.2  Union Bankshares, Inc., Fourth Quarter Press Release announcing
            fourth quarter and year to date earnings and declaration of a
            dividend dated January 15, 2003.


                                 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 17, 2003                       /s/ Kenneth D. Gibbons
                                       ----------------------------------
                                       Kenneth D. Gibbons, President

January 17, 2003                       /s/ Marsha A. Mongeon
                                       ----------------------------------
                                       Marsha A. Mongeon, Chief Financial
                                       Officer


                                EXHIBIT INDEX

      99.1  Union Bankshares, Inc., Dividend Announcement dated
            January 15, 2003.

      99.2  Union Bankshares, Inc., Fourth Quarter Press Release announcing
            fourth quarter and year to date earnings and declaration of a
            dividend dated January 15, 2003.

EX-99

                                                               EXHIBIT 99.1


On January 15, 2003 the Board of Directors of Union Bankshares, Inc. (AMEX
- - UNB) declared a quarterly dividend on its common stock of $.30 per share
payable January 28, 2003 to shareholders of record January 25, 2003.

EX-99

                                                               EXHIBIT 99.2

                            FOR IMMEDIATE RELEASE

  Union Bankshares Announces 2002 Earnings and Quarterly Dividend Payment

Morrisville, VT January 15, 2003 - Union Bankshares, Inc. (AMEX - UNB)
today announced net income for the quarter ended December 31, 2002 was
$1.532 million or $.51 per share compared to $1.197 million or $.39 per
share for the same period last year. Net income for the year ended December
31, 2002 was $5.18 million or $1.71 per share compared to $4.83 million or
$1.59 per share for 2001.

During the fourth quarter 2002 $13 million in fixed rate residential
mortgage loans were sold into the secondary market in an effort to better
position the loan portfolio in the event interest rates rise. The income
generated from the sale of these loans was partially responsible for the
fourth quarter's improved earnings. As of December 31, 2002, total assets
were $344 million, deposits $293 million and loans $256 million.

A quarterly dividend of $.30 per share was declared on January 15, 2003 to
shareholders of record January 25, 2003, payable January 28th.

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.


Statements made in this press release that are not historical facts are
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. When we use any of the words "believes," "expects,"
"anticipates" or similar expressions, we are making forward-looking
statements. The following factors, among others, could cause actual results
to differ from those indicated in the forward-looking statements:
uncertainties associated with general economic conditions; changes in the
interest rate environment; inflation; political, legislative or regulatory
developments; the markets acceptance of and demand for the company's
products and services; technological changes, including the impact of the
internet on the company's business and on the financial services market
place; impact of competitive products and pricing, and dependence on third
party suppliers. For further information, please refer to the Union
Bankshares reports filed with the Securities and Exchange Commission at
www.sec.gov.