EXHIBIT 99.1

UNION BANKSHARES REPORTS FIRST QUARTER EARNINGS

FOR IMMEDIATE RELEASE (Bowling Green, Virginia) — Union Bankshares (Nasdaq: UBSH - News) reports net income for the first quarter 2004 of $3.6 million, down 8.5% from $3.9 million for the same period in 2003. Over this same period, earnings per share on a diluted basis decreased from $.52 to $.47. Return on average equity for the quarter ended March 31, 2004 was 11.95%, while return on average assets for the same period was 1.16%, compared to 14.97% and 1.43% respectively, for the quarter ended March 31, 2003.

For the quarter, net income for the community banking segment was $3.5 million, an increase of $87,000 or 2.6% from $3.4 million for the first quarter of 2003. First quarter net income for the mortgage banking segment decreased to $125,000, a decline of $421,000 or 77.1% from $546,000 in the same quarter of 2003.

Net interest income for the quarter ended March 31, 2004 was up $654,000 or 6.3% from the first quarter of 2003. Average earning assets grew to $1.18 billion compared to $1.06 billion a year earlier providing the Company with a higher earnings base. This volume growth offset a decrease of 26 basis points in the net interest margin (FTE) which decreased to 4.00% in the first quarter of 2004, down from 4.26% in the same quarter of 2003, but up slightly from 3.99% in the fourth quarter of 2004.

Loans at March 31, 2004 increased 22.3% or $167.4 million from March 31, 2003 and 4.5% or $39.2 million from December 31, 2003. Yields on loans (FTE) decreased from 7.07% during the first quarter of 2003 and from 6.23% in the fourth quarter 2003 to 6.18% for the first quarter of 2004. The cost of funds also declined, from 2.80% in the first quarter of 2003 and 2.46% for the fourth quarter of 2003 to 2.40% in the first quarter of 2004. Loan yields declined by 5 basis points during the first quarter of 2004 while deposits and other borrowings declined by 6 basis points resulting in a relatively stable margin. Deposit levels were up $92.3 million, or 9.8%, from first quarter of 2003 and $32.9 million, or 3.3%, from the fourth quarter of 2003.

For the quarter ended March 31, 2004, the provision for loan losses was $431,000 up $44,000 from $387,000 a year earlier. This increased provision is generally reflective of the loan portfolio’s growth. At March 31, 2004, nonperforming assets totaled $9.4 million, including a single credit relationship comprising $8.1 million. Management has allocated $1.1 million in reserves related to that relationship and is actively working with the borrower to minimize any exposure to the bank.

Noninterest income for the first quarter of 2004 was flat at $4.7 million compared to the first quarter of 2003. This includes a decline of $603,000 in gains on the sales of mortgage loans which was offset by an increase of $502,000 in service charges on deposit accounts and of $165,000 in other service charges. Noninterest income, as compared to the fourth quarter of 2003, was down $587,000 largely as a result of a $245,000 decrease in gains on the sales of mortgage loans, nonrecurring gains on securities of $127,000 and on the sale of land of $123,000, both in the fourth quarter of 2003.

Noninterest expense for the first quarter 2004 increased by $1.2 million or 13.2% from a year ago. This increase is largely attributable to the Company’s expansion efforts. In the first quarter of 2004 compared to first quarter 2003, expenses were up due to the loan production office in Richmond, a new branch in Richmond and staff expansions in Rappahannock and Bank of Williamsburg, staff expansions in support areas and a change in our data support service.

“As expected, our first quarter operating results were impacted by the low interest rate environment. An upward shift in long-term rates early in the quarter slowed mortgage lending activity, continuing the trend we saw in the fourth quarter of 2003 and anticipated for 2004. As a result, our mortgage loan production volumes and related gains on sale of those loans were down approximately 23% from a year ago. Refinance activity has declined significantly, but purchase mortgage activity remains favorable as we enter April and May, typically two of the better home sale months.

Our net interest margin has been relatively stable at or near 4.00% over the past three quarters, but represents a 26 basis point decline from a year ago. Despite the decline in net interest margin, net interest income is up over 6% due to increases in earning assets. The margin continues to be a primary focus for our organization and we believe our balance sheet is postured to benefit from the rising rate environment which we expect to see in the coming months.

We remain focused on building the long-term value of our organization. We are excited about the pending acquisition of Guaranty Financial and the opportunities it presents for us the in attractive Charlottesville market. Our expansion into Richmond also presents a significant opportunity in that $18 billion deposit market. In addition to the previously announced expansion into the west end of Richmond, we recently purchased two branch facilities in Chesterfield County which we expect to open in the second quarter. These ventures require increases in personnel, occupancy and equipment expenses, typically in advance of any revenue generation. While these initiatives will slow the pace of earnings growth in the short-term, they represent very positive long-term opportunities for our organization.”

At March 31, 2004 total assets were $1.30 billion, up 12.4% from $1.16 billion at March 31, 2003. Deposits increased to $1.03 billion, up $92.3 million or 9.8% over $941.0 million at the end of the first quarter 2003, while loans totaled $917.5 million, up $167.4 million or 22.3% over March 2003 levels. Securities declined to $259.2 million at March 31, 2004 compared to $267.4 million a year earlier. The Company’s capital position remains strong with an equity-to-assets ratio of 9.5 %.

The Company recently received approval from the regulatory authorities for its acquisition of Guaranty Financial Corporation, a nearly $200 million in assets company operating sales offices in the Greater Charlottesville area of Virginia. Guaranty’s shareholders are scheduled to vote on the issue at their shareholders meeting on April 22, 2004. If approved, the merger is expected to be effective May 1, 2004. With this merger, Union will become the second largest banking company headquartered in Virginia based on the most recent data available.

In connection with its impending acquisition of Guaranty Financial Corporation, the Company also announces the recent issuance of $22.5 million of trust preferred securities in a pooled transaction.

Under the terms of the transaction, the trust preferred securities will have a maturity of 30 years, bearing interest at a variable rate, reset quarterly, equal to three month LIBOR plus 2.75%. In general, the securities will not be redeemable for five years except in the event of certain special redemption events. While these securities currently qualify as capital for regulatory purposes, no assurance can be given that this capital treatment will continue to apply in the future. The managers for the transaction were FTN Financial Capital Markets and Keefe, Bruyette & Woods, Inc.

The Company also anticipates opening two branches in Chesterfield County late in the second quarter of 2004. These will be the Company’s first locations in this part of the Richmond market and will compliment the two existing Henrico County branches.

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 (21 locations in the counties of Caroline, Hanover, Henrico, 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 ( 2 locations in Williamsburg and Newport News). Union Bank & Trust also operates a loan production office in Manassas. In addition to banking services, Union Investment Services, Inc. provides full brokerage services and Mortgage Capital Investors provides a full line of mortgage products. The Bank of Williamsburg also owns a non-controlling interest in Johnson Mortgage Company, LLC.

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.

Key Financial Data

Key Financial Data

Union Bankshares Corporation

Comparative Income Statements

UNION BANKSHARES CORPORATION

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Union Bankshares Corporation

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