Exhibit 99.1

UNION BANKSHARES REPORTS 26% INCREASE IN 2nd QUARTER EARNINGS

FOR IMMEDIATE RELEASE (Bowling Green, Virginia)—Union Bankshares is pleased to report net income for the quarter ended June 30, 2003 of $4,336,000, an increase of 25.6 % from $3,453,000 a year ago. Earnings per share on a diluted basis increased by 26.6% to $.57 from $.45 for the same quarter in 2002. Return on average equity for the quarter was 15.60%, and return on average assets for the same period was 1.50 %, as compared to 14.80% and 1.38%, respectively, for the second quarter of 2002.

For the six months ended June 30, 2003, net income increased to $8.3 million from $6.5 million for the same period in 2002, an increase of 27.2%. Over this same period, earnings per share on a diluted basis increased 25.6% to $1.08 from $.86 for the same period in 2002. Return on average equity for the six months ended June 30, 2003 was 15.29%, while return on average assets for the same period was 1.47%, compared to 14.25% and 1.33% respectively, for the six months ended June 30, 2002.

For the second quarter net income for the mortgage banking segment increased to $917,000, an increase of $711,000 or 345.0% from $206,000 in the same quarter of 2002. For the quarter, net income for the community banking segment was $3.4 million, an increase of $172,000 or 5.3% over $3.2 million for the second quarter of 2002. For the six months ended June 30, 2003, net income for the community bank segment increased to $6.8 million from $6.0 million at June 30, 2002 , while the mortgage segment increased to $1.5 million from $529,000 for the same period in 2002.

For the Company, net interest income was up $684,000 or 6.8% from the second quarter of 2002. Average earning assets grew to $1.089 million compared to $937.1 million in the prior year quarter providing the Company with a higher earnings base compared to last year. This volume growth offset a net interest margin decrease of 40 basis points as the net interest margin (FTE) decreased to 4.20% in the second quarter of 2003, down from 4.60% in the same quarter of 2002, and down slightly from 4.26% in the first quarter of 2003.

Loans increased 17.7% or $118.6 million from the second quarter of 2002 and 10.4% or $74.0 million from the end of 2002. Loans for the second quarter compared to the first quarter of 2003 increased 5.2% or $38.7 million. Yields on loans (FTE) decreased from 7.58% during the second quarter of 2002 and from 7.07% in the first quarter 2003 to 6.81% for the second quarter of 2003. The cost of funds also declined, from 3.09% in the second quarter of 2002 and 2.80% for the first quarter of 2003 to 2.70% in the second quarter of 2003. Comparing first quarter to second quarter 2003 yields, loans declined by 26 basis points while deposits declined by only 10 basis points which led to the narrowing margin. Deposit levels were up17.8% from the second quarter of 2002 and 1.8% or $17.1 million from the first quarter of

2003. This reflects a slowing in deposit growth, with lower rates and an improving equity market pushing consumers to look for alternatives to earn more from their funds.

The provision for loan losses was down $537,000 from $1,569,000 a year earlier. This is reflective of general improvement in overall asset quality, despite an increase in non-accrual loans. At the end of June, two credits totaling $8.1 million were placed on non-accrual status. The Company is working with the borrower to protect its interest, but has allocated $550,000 in loan loss reserves to this relationship. This brought nonperforming assets to $10.5 million at June 30, 2003. Without these credits, nonperforming assets would have been $2.3 million, down from $2.9 million the prior year and $3.0 million the first quarter of 2003. The allowance for loan losses is up slightly at 1.30% of gross loans from 1.26% a year earlier.

Noninterest income for the second quarter increased $2.4 million or 62.1% from a year ago and reflected a $1.9 million or 91.4% increase in gains on sales of loans. Service charges on deposit accounts showed an increase of $223,000 or 22.0% for the same period, reflecting the 28.1% increase in noninterest bearing deposit accounts and the impact of a new overdraft protection product introduced during the quarter.

Noninterest expense for the second quarter 2003 increased by $1.6 million or 18.7% from a year ago while assets grew by 16.3%. A significant portion of the growth in expenses was related to increased commissions ($771,000) on mortgage loan sales and to expenses associated with both the Thornburg branch which opened in August 2002, the loan production offices in Manassas and Richmond, the Newport News relocated branch opening and new product advertisements. The Company continues to focus on expense controls to create greater operating efficiencies as it grows.

“We are pleased with the overall performance of the Company for the first six months of 2003, said President G. William Beale Clearly, our mortgage segment has produced tremendous results and favorably impacted the Corporation’s profitability. The near term prospects for the mortgage sector appear good. We do expect net income in the mortgage sector to lessen when interest rates rise.

The community banking sector has continued to perform well. I see three factors contributing to slowing of net income growth in this segment of our business. Competition for loan assets, driven by excess liquidity in banks, has become fierce. The result is lower top line yields. Second, is the Company’s balance sheet structure. Our balance sheet is currently asset sensitive and prepared for improved performance in a rising rate environment. Declines in short term rates over the last three quarters have adversely impacted our margin, our largest driver of revenue. Finally, we have invested in people and additional locations to take advantage of fallout from recent mergers in our market and build our Company for long term growth.

During the quarter, our Richmond loan production office, which had been operating out of our Atlee loan center since opening in January, moved to its permanent location at the intersection of Parham and Three Chopt in Richmond’s West End. Rick Ocheltree and Jim Tyler form a strong nucleus for that operation which has closed over $15 million in loans to date and built a strong pipeline with loan demand in that market. Our Manassas LPO has exceeded $20 million in production and its pipeline is also strong.

The large bank consolidations continue to provide us with growth opportunities. We have submitted an application for a Union Bank & Trust Company branch adjacent to the Richmond LPO and, subject to regulatory approval, expect to open that location in December 2003. Union also has plans for two additional branches in the Richmond market: on Rt 360 and on Pole Green Road, both in

Mechanicsville. In addition, Rappahannock National Bank will open its new main office in August 2003.”

At June 30, 2003 total assets were $1.188 billion, up 16.3% from $1.022 billion at June 30, 2002. Deposits increased to $958.1 million, up $144.4 million or 17.8% over $813.7 million at the end of the second quarter 2002 while loans totaled $788.8 million, up $118.6 million or 17.7% over second quarter 2002 levels. Securities declined to $255.5 million at June 30, 2003 compared to $260.4 million a year earlier. The Company’s capital position remains strong with an equity-to- assets ratio of 9.6 %.

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 & Trust also operates loan production offices in Manassas and Richmond, Virginia. The new Richmond LPO is located at Parham and Three Chopt Roads, close to the Regency Square shopping mall. 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 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.

UNION BANKSHARES CORPORATION

Comparative Balance Sheets

Union Bankshares Corporation

Comparative Income Statements

This Quarter vs. Same Quarter Last Year