Exhibit 99.1

April 14, 2003

UNION BANKSHARES REPORTS 29% INCREASE IN 1st QUARTER EARNINGS

FOR IMMEDIATE RELEASE (Bowling Green, Virginia) —- Union Bankshares is pleased to report net income for the quarter ended March 31, 2003 of $3,944,000, an increase of 29.0 % from $3,058,000 a year ago. Earnings per share on a diluted basis increased by 30% to $.52 from $.40 for the same quarter in 2002. Return on average equity for the quarter was 14.97%, and return on average assets for the same period was 1.43 %, as compared to 13.69% and 1.27%, respectively, for the first quarter of 2002.

For the quarter, net income for the community banking segment was $3.4 million, an increase of $633,000 or 24.2% over $2.7 million for the first quarter of 2002. For the mortgage banking segment, net income for the first quarter of 2003 increased to $546,000, an increase of $223,000 or 69.0% from $323,000 in the same quarter of 2002.

Net interest income was up $830,000 or 8.6% from the first quarter of 2002. Growth in earning assets to $1.083 million offset a decline in the net interest margin (FTE) which decreased to 4.26% in the first quarter of 2003, down from 4.58% in the same quarter of 2002, and down slightly from 4.34% in the fourth quarter of 2002.

Loans increased 18.6% or $117.4 million from the first quarter of 2002 and 4.9% or $35.3 million from the end of 2002. Yields on loans (FTE) decreased from 7.82% and 7.27% during the first and fourth quarters of 2002 to 7.07% for the first quarter of 2003. The cost of funds also declined, from 3.27% and 2.89% for the first and fourth quarters of 2002 to 2.80% in the first quarter of 2003. Deposit levels were up 16.8% from the first quarter of 2002 and 4.8% or $43.4 million from the end of 2002. The Company believes these higher deposit levels are reflective of the uncertainty in other financial markets and a “flight to safety” by consumers. As those other markets improve it is anticipated that a portion of those deposits will return to those markets.

The provision for loan losses was down $443,000 from $830,000 a year earlier due largely to improved asset quality as several substandard loans were paid off in the first quarter of 2003. The Company continues to experience a low level of nonperforming assets and charge-offs relative to its peers. The allowance for loan losses remains at 1.28% of gross loans, up from 1.24% a year earlier.

Noninterest income for the first quarter increased $848,000 or 22.2% from a year ago and reflected a $642,000 or 30% increase in gains on sales of loans. Service charges on deposit accounts showed an increase of $200,000 or 23.7% for the same period, reflecting the 22.8% increase in noninterest bearing deposit accounts.

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Noninterest expense increased by $631,000 or 7.3% from a year ago while assets grew by 15.5%. A significant portion of the growth in expenses was related to increased commissions ($311,000) on mortgage loan sales and to expenses associated with both the Thornburg branch ($62,000) which opened in August 2002 and the loan production offices ($99,000) in Manassas and Richmond. The Company continues to focus on expense controls to create greater operating efficiencies as it grows.

“Our earnings for the quarter reflected an increase of over 29% from last year’s first quarter, providing a good start for 2003.”, said President G. William Beale.

Our community bank segment enjoyed another quarter of profitable growth with earnings for that segment up over 24% from the same quarter a year ago. Continued low interest rates have contributed to increasing pressure on net interest margins. Net interest margin management has been, and will continue to be a critical focus during 2003. We continue to closely manage our balance sheet and pricing decisions to reduce interest rate risk. If interest rates begin to rise, as many expect, we would initially expect additional improvement in the net interest margin as assets reprice faster than our liabilities, a trend that would subside as rates level off.

Low interest rates continued to contribute to strong volumes for our mortgage subsidiary in what is typically a slow quarter for the mortgage business. Loan originations totaled $113.8 million in the first quarter, up from $83.1 million in the first quarter of 2002. Refinances comprised 59.1% of originations, up significantly from 38.9% for the first quarter of 2002.

Corporate scandals, world events and state budget woes have combined with the lowest interest rates in decades to create a business environment which may be unprecedented. Despite the sluggishness of economic and financial markets on a national and state level, our local markets remain strong. Our loan demand, largely driven by real estate, is steady and credit quality remains strong. Asset quality and interest margin management are our biggest challenges and highest priorities. We will continue to exercise prudent lending practices and closely monitor asset quality.”

At March 31, 2003 total assets were $1.155 billion, up 15.5% from $1.001 billion at March 31, 2002. Deposits increased to $941.0 million, up $135.6 million or 16.8% over $805.4 million at the end of the first quarter 2002 while loans totaled $750.1 million, up $117.4 million or 18.6% over first quarter 2002 levels. Securities grew to $267.4 million at March 31, 2003 compared to $252.0 million a year earlier. The Company’s capital position remains strong with an equity-to- assets ratio of 9.5 %.

Union Bankshares is one of the largest community banking organizations based in Virginia, providing full service banking to the Central, Rappahannock, Williamsburg and Northern Neck regions of Virginia through its bank subsidiaries, Union Bank & Trust (19 locations in the counties of Caroline, Hanover, King George, King William, Spotsylvania, Stafford, Westmoreland and the City of Fredericksburg), Northern Neck State Bank (9 locations in the counties of Richmond, Westmoreland, Essex, Northumberland and Lancaster), Rappahannock National Bank in Washington, Virginia and Bank of Williamsburg in Williamsburg and Newport News. Union Bank and Trust also operates a loan production office in Manassas, Virginia and has announced plans to open a Loan Production Office in the Richmond market in the second quarter. A building has been purchased at Parham and Three Chopt Roads and renovation work is expected to be completed in May. In addition, Union Investment Services, Inc. provides full brokerage services and Mortgage Capital Investors provides a full line of mortgage products.

This press release may contain “forward-looking statements,” within the meaning of federal securities laws, that involve significant risks and uncertainties. Statements herein are based on certain assumptions and analyses by the Company and are factors it believes are appropriate in the circumstances. Actual

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results could differ materially from those contained in or implied by such statements for a variety of reasons including, but not limited to: changes in interest rates; changes in accounting principles, policies, or guidelines; significant changes in economic conditions; significant changes in regulatory requirements; and significant changes in securities markets. Consequently, all forward-looking statements made herein are qualified by these cautionary statements and the cautionary language in the Company’s most recent Form 10-K report and other documents filed with the Securities and Exchange Commission. Union Bankshares Corporation does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

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UNION BANKSHARES CORPORATION

Comparative Balance Sheets

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Union Bankshares Corporation

Comparative Income Statements

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