Exhibit 99.1

UNION BANKSHARES REPORTS 54% INCREASE IN 3rd QUARTER EARNINGS

FOR IMMEDIATE RELEASE (Bowling Green, Virginia) -— Union Bankshares (NASDAQ: UBSH—News) reports net income for the third quarter ended September 30, 2005 of $6.9 million, up 54% from the same quarter in 2004. Earnings per share, on a diluted basis increased from $.51 to $.78 over the same time period. Return on average equity for the quarter ended September 30, 2005 was 15.62%, while return on average assets for the same period was 1.56%, compared to 11.42% and 1.09 %, respectively, for the quarter a year earlier.

On a linked quarter basis (current quarter to most recent quarter) net income improved 4% from $6.61 million to $6.88 million for the quarter ending September 2005. This represents an earnings per share increase, on a diluted basis, of $.03, or 4%, for the quarter.

For the nine months ended September 30, 2005 net income increased to $18.9 million from $12.6 million for the same period a year ago. Over this same period, earnings per share on a diluted basis increased 42% from $1.51 to $2.14. Return on average equity for the nine months ended September 30, 2005 was 14.96%, while return on average assets for the same period was 1.48%, compared to 11.82% and 1.16%, respectively, for the nine months ended September 30, 2004. Results for the first four months of 2004 do not reflect the May 1, 2004 acquisition of Guaranty Financial Corporation (“Guaranty”).

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 September 30, 2005 was $.80 as compared to $.53 in the same period a year ago and $.77 for the second quarter of 2005. Cash basis return on average tangible equity for the quarter ended September 30, 2005 was 20.88% compared to 16.17% in the same period a year ago and 21.54% for the second quarter of 2005.

“It is a pleasure to report third quarter earnings results of $.78 per share which represents a 53% increase over the same quarter a year ago,” said G. William Beale, Union Bankshares President. We are continuing to see the benefits of having an asset sensitive balance sheet in a rising rate environment. While both deposit and loan growth remain strong, we have begun to see some softening in loan demand which has allowed deposit growth to support current funding needs. Our mortgage sector had a good quarter driven by continued high demand for housing within its footprint.”

Segment Information

Third quarter net income for the community banking segment was $6.3 million, an increase of $2.2 million or 54% from $4.1 million in the third quarter of 2004. Net income for the mortgage banking segment was $567 thousand, an increase of $213 thousand or 60% from $354 thousand in the same quarter of 2004. For the nine months ended September 30, 2005, net income for the community bank segment increased to $17.8 million from $11.6 million at September 30, 2004, while the mortgage segment increased to $1.1 million from $1 million for the same period of 2004.

The community banking segment net income, on a linked quarter basis, increased $149 thousand or 2.4% to $6.3 million. Margin expansion of $888 thousand, lower operating expenses of approximately $157 thousand, offset by increases in salary and benefits of $317 thousand, increases to the loan loss provision of $296 thousand as well as occupancy expenses of $70 thousand, net of $200 thousand in income taxes drove the quarterly profit net increase. Operating expense reductions consist of lower costs for seminars, director training and other communication activity.

Mortgage segment net income increased $121 thousand to $567 thousand from the prior quarter, primarily as a result of strong loan origination activity created by a low mortgage rate environment, an expanding portfolio of loan products and increased housing supply. While the rise in short-term rates has not yet resulted in increases in long-term interest rates, some economic forecasts suggest higher long-term rates over the next 12 months, any such increases would likely result in slower mortgage activity, offset by the forecasted stability in housing starts.

Net Interest Income

Net interest income on a fully tax equivalent (FTE) basis increased $3.0 million, or 19.3% to $18.5 million for the quarter as compared to the same quarter in 2004. Average earning assets increased $126.9 million, or 8.5%, funded by total interest-bearing deposit growth of $89.8 million, or 8.5%. Additionally, demand deposits contributed $38.6 million to fund loan demand and represented a 17.8% increase over the prior year’s quarter. These factors coupled with increased yields on loans of 6.84%, from 6.02%, offset by an increased cost of funds on deposits of 2.35%, from 1.94%, moved the net interest margin up by 39 basis points to 4.53%. Of the $126.9 million in average earning asset growth (primarily in the commercial and construction portfolios), approximately 31.3% was funded by noninterest bearing deposits, positively contributing to the increased margin. For the nine months ended September 30, 2005, net interest income (FTE) increased $11.8 million or 28.8% over the same period a year ago. Yields on average earning assets increased 53 basis points, or 8.9%, on growth of $234.8 million in interest earning assets. Yields on interest bearing liabilities increased 20 basis points, or 8.9%, on growth of $176.7 million in interest bearing liabilities. The remaining margin improvement was due to growth of demand deposit accounts of $55.6 million. Since June 2004 we have experienced an increase in the Federal funds target at each Federal Reserve Board Open Market Committee (“FOMC”) meeting, benefiting the Company due to its asset sensitivity. Management anticipates the Company’s net interest margin to improve slightly with any additional rate increases, albeit at a slower rate than recent quarters. In an effort to protect its improved net interest margin,

management will continue to monitor its interest rate risk as the FOMC nears the anticipated end of the current tightening cycle

On a linked quarter basis (FTE) net interest margin grew by $950 thousand, or 5.4% for the quarter ending September 30, 2005. This translates into a nine basis point expansion in the net interest margin during the quarter, from 4.44% to 4.53%. Increases in demand deposits helped to offset the escalating cost of interest bearing liabilities. Loan yields increased by 29 basis points to 6.84% while cost of funds increased by 15 basis points to 2.58%. Large certificates of deposit (those greater than $100 thousand), on average, continued to experience growth albeit at a slightly slower pace when compared to the prior quarter and contributed net growth of $21.8 million to the total interest bearing funding base of $1.3 billion.

Asset Quality

The Company’s asset quality remains good as reflected in the $737 thousand decrease in provision for loan losses from $1.6 million for the nine months ended September 30, 2004 to $897 thousand for the nine months ended September 30, 2005. Contributing to the year to year decline in the provision for loan losses has been improved credit quality and the payout of a number of low credit quality loans. On a linked quarter basis, the provision for loan losses increased $295 thousand from $135 thousand for the quarter ended June 30, 2005 to $430 thousand for the quarter ended September 30, 2005. This increase is largely a result of loan growth and an increase in the specific reserve.

At September 30, 2005, nonperforming assets totaled $11.2 million, which included a single credit relationship of $10.9 million. The loans to this relationship are secured by real estate and based on the information currently available management has allocated $1.3 million in reserves. An additional $140 thousand in loan loss provision was allocated to this credit this quarter as a result of deterioration in the operations of one of the borrower’s facilities. The Company entered into a workout agreement with the borrower in March 2004. Under the terms of the agreement, the Company extended further credit secured by additional property with significant equity. The Company continues to have constructive dialogue with the borrower towards resolution of the affiliated loans; however, bankruptcy filings by some affiliates of the borrower have delayed the accomplishment of targeted actions. The Company continues to anticipate that this workout will ultimately result in a reduction of the Company’s overall exposure to the borrower.

Net charge-offs were $162 thousand for the quarter compared to $312 thousand in net recoveries the same quarter last year. Recoveries during the quarter were lower than the same quarter last year as the Company completed, in 2004, the recovery of principal on a large loan charged off in prior years. This year approximately $233 thousand has been collected in foregone interest on the aforementioned credit and has been recorded in interest income.

Noninterest Income

Noninterest income for the third quarter of 2005 increased by $1.2 million to $7.3 million, or 19.5%, compared to the same quarter in 2004. This change includes an increase of $986 thousand, or 33%, in gains on sales of mortgage loans, $328 thousand in other service charges and a decrease in other operating income of $65 thousand. Mortgage loan production for the third quarter of 2005 totaled $172.2 million as compared to $123.3 million in the third quarter of 2004 and is the primary driver of increased gains on sales of mortgage loans. The increase in

other service charges was driven primarily by a $120 thousand increase in income related to debit card and ATM transactions. Letter of credit and exchange fees contributed an additional $108 thousand. Additionally, brokerage commissions from our investment company contributed $66 thousand in income. Other operating income declined primarily as a result of $38 thousand in credit card incentives from our credit card processor received during the second quarter offset by increased income from our investment in Johnson Mortgage Company, LLC of $29 thousand in the third quarter.

On a linked quarter basis, noninterest income increased $270 thousand or 3.8%. This change includes an increase of $325 thousand, or 8.8%, in gains on sales of mortgage loans, an increase of $44 thousand in other service charges offset by declines of $31 thousand in service charges on deposit accounts. Other current quarter variance declines related to prior quarter gains in other real estate owned and fixed assets of $43 thousand and prior quarter income related to our investment in Bankers Insurance Group of $54 thousand. Mortgage loan production increased $18.3 million, or 12%, from the prior quarter representing most of the increase in the gain on sale of mortgages. The increase in other service charges was driven primarily by increases in letters of credit, exchange fees and debit card income totaling $54 thousand, ATM related fees of $21 thousand followed by $18 thousand of rebates from the sale of checks. These increases were offset by a decline in brokerage commissions of $55 thousand.

For the nine months ending September 30, 2005, noninterest income increased $2.6 million or 15.2%, to $19.7 million. Driving the increase were gains on the sale of mortgages which increased $10.3 million for the year and represented a $1.7 million or 20.2% increase over the same period. Mortgage loan production increased 23% to $442 million driving the increased gains on loan sales. Additionally, other service charges and fees increased $854 thousand, or 36% to $3.2 million. This increase is primarily due to increases in debit card, letter of credit and exchange fees. Service charges on deposit accounts remained flat when compared to the prior year but contributed $5.1 million for the nine months ending September 30, 2005. Other operating income increased $114 thousand or 12.5%. Income from bank owned life insurance ($73k) and Income from Bankers Insurance Group ($54k) contributed to this increase.

Noninterest Expense

Noninterest expense during the third quarter of 2005 increased $824 thousand from the same quarter in the prior year. This includes an increase of $1.1 million in salaries and benefits, $99 thousand increase in occupancy expense, $68 thousand increase in furniture and equipment expense and $400 thousand decline in other operating expenses. The increase in salary and benefits is due to the opening of additional branches, hiring additional support staff, increased commissions in the mortgage segment related to increased loan production, as well as compensation adjustments. The increase in occupancy and furniture and equipment expense is also due primarily to new branch openings. Other operating expense improvements are primarily related to the conversion of Guaranty’s data processing platform to the Company’s data processing platform and represent nonrecurring charges of approximately $311 thousand included in the prior year. The remaining cost savings within operating expenses and related to the Guaranty acquisition are from one-time conversion expenses of $213 thousand incurred in the same period a year ago. These conversion expenses are merger related items including data and systems conversion, marketing, communications, and other integration costs. These nonrecurring charges in the prior year were offset by current quarter increases in expenses relating to bankcard data processing of $50 thousand, ATM related charges of $30 thousand and increased mileage reimbursement of $18 thousand.

On a linked quarter basis noninterest expense increased $322 thousand or 2.2%. This change includes an increase of $427 thousand in salaries representing increased commissions paid as a result of increased mortgage loan production in the mortgage segment and compensation adjustments during the quarter. Increases in occupancy and furniture and fixtures expenses increased $60 thousand, or 6.0%, and $30 thousand, or 3.1%, respectively. Other operating expenses decreased $196 thousand compared to the most recent quarter. Contributing to this current quarter decline in operating expenses are costs associated with employee and director training and seminars of $74 thousand, lower costs related to equity lines of $27 thousand and declines in professional fees of $25 thousand. Other net charges compared to the prior quarter were $70 thousand.

For the nine months ended September 30, 2005, noninterest expense increased $5.5 million, or 14.8% from the period a year ago. Driving the increase were salary and benefits expenses of $3.6 million, or 17.1%. Occupancy and furniture and fixture expenses increased $593 thousand, or 24.1% and $349 thousand, or 13.9%, respectively. Lastly, other operating expenses increased $937 thousand, or 8.5%. Increased expenses are a direct result of the Company’s growth initiatives which have increased profitability. As described above, the increase in salary and benefits is due to the opening of additional branches, hiring additional support staff, increased commissions in the mortgage segment related to increased loan production as well as compensation adjustments. Occupancy and furniture and fixture expense increases correlate to additional branch openings and other operating costs associated with maintaining our branch network. Of the $937 thousand increase in other operating expenses, approximately $484 thousand resulted from increased courier services, internet activity and communication expenses with customers, $270 thousand from media and advertising campaigns, $211 thousand relates to amortizing additional core deposit intangibles related to the Guaranty acquisition, $134 thousand was from increased ATM processing and placing additional machines within our existing footprint and $119 thousand was due to additional data processing costs related to increased activity in the bankcard department. These expenses were offset by lower data processing costs of $485 thousand and conversion charges, as described above, of $192 thousand both relating to the Guaranty acquisition. Other notable expense increases relate to training and seminars ($103k), director fees and education ($80k) as well as mileage reimbursement ($52k).

Balance Sheet

Net loans were $1.33 billion and $1.22 billion for the third quarters ending September 30, 2005 and 2004, respectively. Quarter to quarter growth totaled approximately $35 million or an increase of 2.7% predominately within the commercial real estate and construction portfolios. The rising interest rate environment has improved the Company’s yield on earning assets. In particular, the 275 basis point increase in the Federal funds target rate since the FOMC began raising rates in June 2004, from 1%, has helped with improving yields (FTE) on loans, and for the quarter resulted in an increase from 6.55% to 6.84%. During that same period the Company’s cost of funds increased from 2.43% to 2.58%. Total deposits increased $50 million during the third quarter of 2005 to $1.4 billion and represent increased growth compared to the prior quarter. Growth of $30.8 million and $7.0 million was experienced in large certificates of deposits (those greater than $100 thousand) and money market accounts, respectively, with additional growth in noninterest bearing deposits of $7.8 million albeit a slower pace than experienced in the prior quarter. Moreover, greater deposit growth compared to net loan growth for the quarter has allowed for less reliance on purchased funds as evidenced by the decline in short-term borrowings from $7.6 million to zero.

At September 30, 2005 total assets were $1.79 billion, up 8.5%, or approximately $140 million from $1.65 billion a year earlier. Securities decreased to $227.4 million compared to $240.2 million for the same period. Total assets have increased $50.0 million from $1.74 billion at June 2005 to $1.79 billion at September 2005. Securities increased $2.8 million from $224.6 million to $227.4 million. The Company’s capital position remains strong with an equity-to-assets ratio of 9.90 %.

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ABOUT UNION BANKSHARES CORPORATION

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 (32 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 investment advice to our clients 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”.

FORWARD-LOOKING STATEMENTS

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.

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

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UNION BANKSHARES CORPORATION AND SUBSIDIARIES

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