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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0000910647-03-000073.txt : 20030219
<SEC-HEADER>0000910647-03-000073.hdr.sgml : 20030219
<ACCEPTANCE-DATETIME>20030219084237
ACCESSION NUMBER:		0000910647-03-000073
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20030218
ITEM INFORMATION:		Other events
ITEM INFORMATION:		
FILED AS OF DATE:		20030219

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			UNION BANKSHARES INC
		CENTRAL INDEX KEY:			0000706863
		STANDARD INDUSTRIAL CLASSIFICATION:	STATE COMMERCIAL BANKS [6022]
		IRS NUMBER:				030283552
		STATE OF INCORPORATION:			VT
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-15985
		FILM NUMBER:		03571728

	BUSINESS ADDRESS:	
		STREET 1:		20 MAIN STREET
		STREET 2:		P O BOX 667
		CITY:			MORRISVILLE
		STATE:			VT
		ZIP:			05661-0667
		BUSINESS PHONE:		8028886600

	MAIL ADDRESS:	
		STREET 1:		20 MAIN STREET
		STREET 2:		P O BOX 667
		CITY:			MORRISVILLE
		STATE:			VT
		ZIP:			05661-0667
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>uni-8k3.txt
<DESCRIPTION>FORM 8-K FOR FEBRUARY 18, 2003
<TEXT>

                     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 18, 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


<PAGE>


Item 5:  Other Events

      1)    On February 18th we publicly announced the planned merger of
            our two subsidiary banks, Union Bank and Citizens Savings Bank
            and Trust Company (Citizens) under the name and banking charter
            of Union Bank as well as the resignation of Jerry Rowe,
            President and CEO of Citizens and Vice President and Director
            of Union Bankshares.  A copy of our press release is filed as
            Exhibit 99.1 to this report.

Item 9:  Regulation FD Disclosure

      1)    On February 18th we mailed a letter to our stockholders
            announcing the planned merger of our two subsidiary banks,
            Union Bank and Citizens as well as the resignation of Jerry
            Rowe, President and CEO of Citizens and Vice President and
            Director of Union Bankshares.  A copy of our letter to
            shareholders is furnished as Exhibit 99.2 to this report.

             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 or war
*     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., Press Release dated February 18, 2003.
      99.2  Union Bankshares, Inc., Letter to Shareholders dated February
            18, 2003.


<PAGE>


                                 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 18, 2003                      /s/ Kenneth D. Gibbons
                                       ______________________________
                                       Kenneth D. Gibbons, President

February 18, 2003                      /s/ Marsha Mongeon
                                       ______________________________
                                       Marsha A. Mongeon, Chief Financial
                                       Officer

                              EXHIBIT INDEX

99.1  Union Bankshares, Inc., Press Release dated February 18, 2003.

99.2  Union Bankshares, Inc., Letter to Shareholders dated February 18,
      2003.


<PAGE>


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<FILENAME>uni83-991.txt
<DESCRIPTION>EXHIBIT 99.1
<TEXT>

                                                               Exhibit 99.1

Union Bankshares, Inc. Announces Planned Merger of Subsidiary Banks

Morrisville, VT February 18, 2003.  Union Bankshares, Inc. (AMEX-UNB) today
announced the planned merger of its two subsidiary banks, Union Bank
(Union), Morrisville, VT, and Citizens Savings Bank and Trust Company
(Citizens), St. Johnsbury, VT, under the name and banking charter of Union.
Union Bankshares acquired Citizens in December of 1999.  Since the
acquisition, each subsidiary bank has operated semi-autonomously under the
bank holding company.

Union, serving north-central Vermont, and Citizens, serving northeastern
Vermont, are community banks with combined assets of $343 million as of
December 31, 2002.  Both banks provide commercial, residential and consumer
loans, as well as a wide array of deposit products and trust services.

The purpose of merging the two banks is to provide a higher quality of
service to the communities served by each bank by improving coordination of
products and services as well as enhancing efficiencies.  The tentative
merger completion date is May 1, 2003, subject to receipt of the required
regulatory approvals.

"This is simply a step to increase our competitiveness and delivery
capability to our current and prospective customers," commented Ken
Gibbons, CEO of Union Bankshares and Union.  He added, "the impact of
combining the two banks makes us more competitive, saves us money and
reduces our regulatory burden.  We'd like to focus the savings in time and
money towards our clients.  The merger should be transparent to our St.
Johnsbury customers and will have minimal impact on the staff."

No Citizens offices will be closed as a result of the merger and all branch
offices will be operated as the Citizens division of Union.  Citizens'
Littleton, New Hampshire loan office will also become part of Union, as
will Hometown Trust, Citizens' trust division.  At the time the merger is
completed the Citizens Board of Directors will become an advisory board to
the Citizens Division market area to ensure continued local input and
decision making.  Two members of the Citizens Board will join the Board of
Union.

Effective February 15th, Jerry Rowe, President and CEO of Citizens, and Vice
President and director of Union Bankshares, has decided to leave Citizens
to pursue other interests.  "Jerry has been a key member of the management
team since the acquisition of Citizens and has led Citizens for the past 15
years.  We appreciate very much his contribution," commented Ken Gibbons,
who will also serve as interim president at Citizens until the merger is
completed.

"Our Board of Directors is excited at the opportunities the consolidation
presents for our Company," concluded Mr. Gibbons.  "The greater St.
Johnsbury market will receive increased marketing emphasis and resource
allocation."

                   - - - - - - - - - - - - - - - - - - - -


<PAGE>


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", "estimates" 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 or localized economic
conditions in some or all of the company's market areas; economic
conditions; changes in the interest rate environment; inflation; political,
legislative or regulatory developments; the market's 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 about the company, please refer to the Union
Bankshares reports filed with the Securities and Exchange Commission at
www.sec.gov.


<PAGE>


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>4
<FILENAME>uni83-992.txt
<DESCRIPTION>EXHIBIT 99.2
<TEXT>

                                                               Exhibit 99.2

(On Union Bankshares, Inc. letterhead)

                                                          February 18, 2003

Dear Shareholder:

We are writing you about some important changes happening at your company.

Recently, Jerry Rowe announced his decision to resign his position as
President and CEO of our subsidiary, Citizens Savings Bank and Trust
Company ("Citizens"), effective on February 15th.  After much thought, Jerry
decided it was time to take some time off and to then pursue other
interests.  We are grateful to him for providing over 15 years of
leadership at Citizens.

The Boards of Directors of the company and of Citizens and Union Bank have
each unanimously concluded that it is in the best interest of their
respective institutions for Citizens to merge into Union Bank.  We expect
the merger, which is subject to regulatory approval, will be completed on
or about May 1, 2003.  As of December 31, 2002, Citizens had total assets
of $103 million and Union Bank had total assets of $240 million.

There are two main reasons for the decision to merge the subsidiary banks:

*     With the assistance of Union Bank personnel, the goal is to create a
      new emphasis on growing market share, earnings improvement, and
      quality customer service.  We will be making calls on current and
      potential new business clients designed to bring us to their place of
      business.  An expanded electronic banking option, for example, will
      be rolled out this spring.  Many of the methods Union Bank employs
      successfully in its market will be applied to the Citizens market.
      We expect the results to be better service and products for our
      clients, resulting in new growth for the bank.

*     Not all the contemplated economies of scale have yet been realized as
      a result of the December 1999 acquisition of Citizens.  By
      consolidating our two banks into one, it is estimated annual after
      tax savings of approximately $250,000 can be achieved.  There will,
      however, be one-time costs incurred in 2003 for legal, accounting,
      and other merger-related expenses.

Key aspects of the subsidiary merger include the following:

*     Citizens' branches and ATMs will become part of Union Bank's banking
      network, but will be operated as its Citizens division.  No branches
      or other facilities will be closed and trust department activities
      will remain unchanged.  We believe this will help ensure the
      continued personalized local service enjoyed by Citizens' customers
      and


<PAGE>


      responsiveness to the banking needs of Citizens' markets.  The
      Citizens division will emphasize growing its market share in the
      areas served.

*     Union will provide additional operational support systems and
      financial management for the Citizens division.  That approach
      maximizes efficiencies and builds on a process, begun shortly after
      the acquisition of Citizens in December 1999, of consolidating
      support services for Citizens into Union Bank, including data
      processing, audit, loan review, accounting and payroll functions.

*     Effective on the merger date, two Citizens Directors, William T.
      Costa, Jr. and Franklin G. Hovey II, will be added to the Union Bank
      Board of Directors.  Messrs. Costa and Hovey already serve on the
      Union Bankshares Board of Directors.

*     The members of the Citizens Board will become members of a new
      Citizens Division Advisory Board.  This board will act on loan
      requests to certain amounts, provide guidance on marketing, and
      assist in business development activities for the Northeast Kingdom
      region.

*     Management of the Citizens Division will have operational flexibility
      to ensure continued local decision making, quality service and
      responsiveness to local market conditions and banking needs.

Until the merger is finalized, Ken Gibbons, President and CEO of Union
Bankshares and Union Bank, will also serve as interim president of
Citizens.  It is important to note Citizens has a great group of Directors,
officers, and staff who are dedicated to providing quality service.  We are
confident that their enthusiasm and support will make the transition to one
bank a positive undertaking for them and Citizens' customers.

As always, we welcome your input.  Questions or comments about the
subsidiary merger should be directed to Ken Gibbons at 802-888-6600 or by
mail to PO Box 667, Morrisville, VT 05661.

Sincerely,


W. Arlen Smith                         Kenneth D. Gibbons
Chairman                               President and CEO


<PAGE>


</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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