Exhibit 99.1

UNION BANKSHARES REPORTS INCREASE IN 1^st QUARTER RESULTS

FOR IMMEDIATE RELEASE (Bowling Green, Virginia) — Union Bankshares (NASDAQ: UBSH - News) reports net income for the quarter ended March 31, 2005 of $5.45 million, up 51.1% from $3.61 million for the same period in 2004. Earnings per share on a diluted basis increased 31.9 %, from $.47 to $.62 for the quarter. Return on average equity for the quarter ended March 31, 2005 was 13.36%, while return on average assets for the same period was 1.32%, compared to 11.95% and 1.16% respectively, for the quarter ended March 31, 2004. Results for the first quarter of 2004 do not reflect the May 1, 2004 acquisition of Guaranty Financial Corporation.

On a linked quarter basis (current quarter to most recent prior quarter), net income increased 3.0% from $5.29 million in the fourth quarter of 2004 to $5.45 million in the first quarter of 2005. The Company’s return on average equity and return on average assets increased to 13.36% and 1.32% from 13.13% and 1.27%, respectively, from the fourth quarter of 2004.

As a supplement to Generally Accepted Accounting Principles (“GAAP”), the Company also uses certain non-GAAP financial measures to review its operating performance. Earnings per share on a cash basis for the quarter ended March 31, 2005 was $.64 as compared to $.48 in the same period a year ago and $.62 for the fourth quarter of 2004. Cash basis return on equity for the quarter ended March 31, 2005 was 18.34% compared to 12.69% in the same period a year ago and 18.32% for the fourth quarter of 2004.

“The first quarter results of 2005 reflect continued and renewed efforts to help people find financial solutions,” said G. William Beale, President of Union Bankshares Corporation. “I am pleased to report $.62 earnings per share on net income of $5.5 million. This increase represents growth of 31.9% from a year ago and 3% since last quarter, respectively.

As we reflect on our past successes, we are mindful of the coming year and the challenges and opportunities it will present. Generation of loans and deposits directly correlate to our success and is a reflection of the product offerings and competitive pricing delivered by our seasoned bankers. Growth in our commercial and construction lending portfolios have helped us to increase total loans to $1.27 billion, an increase of $33.1 million over the prior quarter, funded using primarily traditional deposits with less reliance on purchased funds.

The last 18 months have provided significant expansion opportunities for our organization. Our expansion through acquisition into new markets, like Charlottesville, provides a strong platform to make an immediate impact in those markets. Construction of new branches and acquisition of existing locations allow us to expand into contiguous markets and fill gaps in our existing footprint to better serve our customers. While we expect the pace of expansion in 2005 to slow from last year’s pace, we will continue to evaluate opportunities for profitable growth.

In our 2004 annual report we spoke to the right strategic direction leading to profitable growth. Over the last four years we have taken strategic steps to expand our franchise and to structure our balance sheet to create increased earnings in a rising rate environment. We are very pleased to see the results of our planning produce greater earnings for our shareholders.

Our customers continue to reward us for providing the types of financial services they desire with increased deposits and loans. Additionally, we are benefiting from positive responses in our newest markets; Charlottesville and Richmond. Our community bank sector continues to see strong growth opportunities as the vibrant markets we serve expand and prosper. Our mortgage banking sector is experiencing economic and competitive pressures reducing already narrow profit margins.”

Net income in the first quarter for the community banking segment was $5.34 million, an increase of $1.9 million or 53.4% from $3.48 million in the first quarter of 2004. First quarter net income for the mortgage banking segment was $109 thousand, a decrease of $14 thousand or 11% from $125 thousand in the same quarter of 2004. Net income for the community banking segment increased by $441 thousand, or 10% in the first quarter of 2005 from the fourth quarter of 2004, while net income for the mortgage banking segment decreased by $286 thousand, or 72% over the same period.

Net interest income (FTE) increased $5.05 million, or 43%, from the first quarter of 2004. Average earning assets for the quarter grew to $1.54 billion compared to $1.18 billion a year earlier providing the Company with a larger earnings base. Net interest margin (FTE) for the quarter increased 18 basis points from the prior quarter to 4.41% from 4.23% and is attributable to benefits derived from an increase on yields of earning assets from 6.05% to 6.29%. This is due in part to the Company’s favorable position during a rising rate environment. Partially offsetting this income was a higher cost of funds of 2.28% from 2.12% in the comparable period primarily within money market funds. We anticipate this improving trend in the net interest margin to continue as rates rise, albeit at a slower pace than we experienced this quarter. The Company’s net interest margin has improved 41 basis points from the same quarter a year ago, increasing from 4.00% to 4.41%, reflecting its asset sensitive balance sheet supported by its proactive asset/liability management process.

For the quarter ended March 31, 2005, the provision for loan losses was $332 thousand, down from $431 thousand a year earlier. At March 31, 2005, nonperforming assets totaled $10.9 million, including a single credit relationship totaling $10.7 million. The loans in this relationship are secured by real estate, but based on the information currently available management has allocated $1.1 million in reserves. Since the end of the first quarter 2004, the Company has entered into a workout agreement with the borrower. Under the terms of the workout, the Company extended further credit of approximately $1.6 million secured by additional property with significant equity. The Company anticipates that this workout will result in a reduction of overall exposure to the borrower. Despite this large nonperforming asset, overall asset quality is improving. Loans past due 90 days have decreased from $1.1 million at March 31, 2004 to $547 thousand at March 31, 2005. Net charge-offs for the quarter amounted to $140 thousand. Recoveries during the quarter were lower than the same quarter last year and the most recent quarter as the Company completed the recovery of principal on a large loan charged off in prior years. Approximately $101 thousand has been collected in foregone interest on a previously charged off credit and recorded in interest income.

Noninterest income during the first quarter of 2005 increased to $5.3 million, or 14.2%, compared to the same period in 2004. This change includes an increase of $404 thousand, or 18.5%, in gains on the sales of mortgage loans, $256 thousand in other service charges and $54 thousand in income from bank owned life insurance. The increase in other service charges was driven primarily by an increase in income related to debit card and ATM transactions as well as fees on fixed annuities. This increase was partially offset by a $49 thousand decrease in service charges on deposit accounts driven primarily by reduced overdraft and return check charge fees. Mortgage loan production for the first quarter of 2005 totaled $115.5 million as compared to $87.7 million in the first quarter of 2004 and $136.2 million in the fourth quarter of 2004. Despite this increase in production from a year ago, lower mortgage segment income is primarily due to shifts from governmental to conventional loans as well as increases in brokered loans. The increase in gains on the sales of mortgages was offset by a $369 thousand increase in noninterest expense, primarily personnel costs, underwriting fees, and marketing. On a linked quarter basis, (current quarter to prior quarter) noninterest income decreased $899 thousand or 14%. This change includes a decrease of $716 thousand, or 21.7%, in gains on sale of mortgage loans, $226 thousand in service charges on deposit accounts driven primarily by a decrease in overdraft and return check charges. This decrease was partially offset by a $44 thousand decrease in loss on sale of fixed assets that occurred in the fourth quarter 2004.

Noninterest expense during the first quarter of 2005 increased $2.95 million from the same period in the prior year. The acquisition of Guaranty occurred May 1^st of 2004, therefore the prior year’s first quarter does not include Guaranty’s expenses. On a linked-quarter basis noninterest expense declined $493 thousand, or 3.5%, from $13.96 million to $13.47 million. Of this decline in noninterest expense approximately $279 thousand is attributable to lower marketing and advertising costs. During the fourth quarter of 2004 we launched a customer awareness and media campaign in the Charlottesville market as we merged the former Guaranty bank into Union Bank and Trust. In addition, we also incurred expenses by relocating to a full service branch in the Mechanicsville area. Additionally, telecommunications expenses of $113 thousand in the prior quarter have been offset by slightly higher utility expenses of $30 thousand for the period ended March 2005.

Loans were $1.3 billion and $917 million for the first quarters ending 2005 and 2004, respectively. Quarter to quarter growth represents approximately $33.1 million or an increase of 2.62% predominately within the commercial and construction portfolios. Year to year comparisons do not include Guaranty during the first quarter of 2004. Of the $1.3 billion of loans outstanding for the period ended March 2005, approximately $207 million relates to the balances acquired from Guaranty on May 1, 2004. The rising interest rate environment for the last three quarters has improved the Company’s yield on earning assets. In particular, the combined 100 basis point increase in the federal funds rate during the 4^th quarter of 2004 and the 1^st quarter of 2005 resulted in an improved yield on loans (FTE) from 6.12% to 6.38%. During that same period the Company’s cost of funds (FTE) increased, albeit at a slower pace, from 2.21% to 2.28%. Total deposits funding loan demand increased $29.7 million during the first quarter of 2005 to $1.3 billion. Growth of $22.3 million and $12.2 million was experienced in large certificates of deposits (those greater than $100 thousand) and demand deposits, respectively, offset by a decline in money market accounts of $8.94 million. Of the $1.3 billion of deposits outstanding for the period ended March 2005, approximately $188 million relate to balances acquired from Guaranty on May 1, 2004. The rate of deposit growth to loan growth since year end has allowed for less reliance on purchased funds as evidenced by the decline in short term borrowings from $24.5 million to $14.1 million.

At March 31, 2005 total assets were $1.69 billion, up 30.8%, or $400 million from $1.30 billion a year earlier. The Guaranty acquisition represented $251.6 million of this growth. Securities decreased to $222.8 million compared to $259.2 million for the same period. Total assets have increased $27.7 million from $1.67 billion at December 2004 to $1.69 billion at March 2005. Loans increased $33.1 million to $1.29 billion from $1.27 billion. Securities decreased $10.6 million from $233.4 million to $222.8 million. The Company’s capital position remains strong with an equity-to-assets ratio of 9.78 %.

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 (31 locations in the counties of Albemarle, Caroline, Chesterfield, Fluvanna, Hanover, Henrico, King George, King William, Nelson, Spotsylvania, Stafford, Westmoreland and the Cities of Charlottesville and 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 (3 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. Additional information is available on our website at www.ubsh.com. The shares of Union Bankshares Corporation are traded on the NASDAQ National Market under the symbol “UBSH”.

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

In management’s opinion, cash basis earnings are useful to investors because by excluding non-operating adjustments stemming from the consolidation of our organization, they allow investors to see clearly the combined economic results of our multi-bank company. These non-GAAP disclosures should not, however, be viewed in direct comparison with non-GAAP measures of other companies.

UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(dollars in thousands, except share information)

See accompanying notes to condensed consolidated financial statements.

UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(dollars in thousands, except per share amounts)

See accompanying notes to condensed consolidated financial statements.

Union Bankshares Corporation

AVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES (TAXABLE EQUIVALENT BASIS)