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 12, 2007

             (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)
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

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:

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

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

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

o     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 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 January 12, 2007, Union Bankshares, Inc. issued a press release, a
      copy of which is furnished with this Form 8-K as Exhibit 99.1, announcing
      net income and net income per share for 2006 and for our fourth quarter
      ended December 31, 2006, as well as the declaration of a regular
      quarterly cash dividend.

Item 8.01 Other Events

On January 12, 2007 the Board of Directors of Union Bankshares, Inc. declared a
quarterly cash dividend of $.28 per share. The dividend is payable on January
25, 2007 to shareholders of record on January 22, 2007.

Item 9.01. Financial Statements and Exhibits

The following Exhibit, referred to in Item 2.02 of the Report is furnished, not
filed; herewith:

      (c) Exhibits

          Exhibit 99.1 Union Bankshares, Inc. Press Release dated January 12,
          2007, announcing a regular quarterly dividend and year and fourth
          quarter ended December 31, 2006 net income and net income per share

                                   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 12, 2007                       /s/ Kenneth D. Gibbons
                                       ----------------------------------------
                                       Kenneth D. Gibbons, President & CEO


                                 EXHIBIT INDEX

          Exhibit 99.1 Union Bankshares, Inc. Press Release dated January 12,
          2007, announcing a regular quarterly cash dividend and year and
          fourth quarter ended December 31, 2006 net income and net income per
          share.

EX-99

                                                                   Exhibit 99.1

                             FOR IMMEDIATE RELEASE

  Union Bankshares Announces Year and Fourth Quarter Ended December 31, 2006
                    Earnings and Quarterly Dividend Payment

Morrisville, VT January 12, 2007 - Union Bankshares, Inc. (AMEX - UNB) today
announced net income for the year ended December 31, 2006 was $6.255 million or
$1.38 per share compared to $6.237 million or $1.37 per share for the same
period in 2005. Year to date improvements in net interest income of 3.5% and
federal tax credits were partially offset by an increase in the loan loss
provision and salary and benefit costs. Total loans have grown $10.4 million or
3.4% to $317.5 million at December 31, 2006 from $307.1 million at December 31,
2005. Net Income for the fourth quarter of 2006 was $1.586 million or $.35 per
share compared to $1.916 million or $.42 per share for 2005. Earnings for the
fourth quarter of 2005 included a gain on the sale of other real estate owned
of $335 thousand.

A quarterly cash dividend of $.28 per share was declared on January 12, 2007 to
shareholders of record January 22, 2007, payable January 25, 2007. Total
dividends paid per share for 2006 were $1.06 per share.

Union Bankshares, Inc., with headquarters in Morrisville, Vermont is the bank
holding company parent of Union Bank, which offers deposit, loan, trust and
commercial banking services throughout northern Vermont and New Hampshire. As
of December 31, 2006, the Company had approximately $381 million in
consolidated assets, $319.8 in deposits and operated 12 banking offices and 28
ATM facilities in Vermont, a branch and ATM in Littleton, New Hampshire, and a
loan origination office in St. Albans, Vermont.

Statements made in this press release that are not historical facts are
forward-looking statements. Investors are cautioned that all forward-looking
statements necessarily involve risks and uncertainties, and many factors could
cause actual results and events to differ materially from those contemplated 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 and
events to differ from those contemplated in the forward-looking statements:
uncertainties associated with general economic conditions; changes in the
interest rate environment; inflation; political, legislative or regulatory
developments; acts of war or terrorism; 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 generally; the impact of competitive products and pricing; and
dependence on third party suppliers. For further information, please refer to
the Company's reports filed with the Securities and Exchange Commission at
www.sec.gov.