Exhibit 99.1

UNION BANKSHARES CORPORATION REPORTS NET INCOME

FOR IMMEDIATE RELEASE (Bowling Green, Virginia) — Union Bankshares Corporation (the “Company”) (NASDAQ: UBSH—News) net income was $3.6 million, down 44.0%, from $6.4 million for the same quarter in 2006. Earnings per share, on a diluted basis, decreased $.21, or 43.8%, from $.48 to $.27 for the same quarter a year ago. Return on average equity for the quarter ended December 31, 2007 was 6.80%, while return on average assets for the same period was 0.64%, compared to 13.00% and 1.22%, respectively, for the prior year’s same quarter.

This decline was largely the result of flat net interest income due to funding pressure and declines in yields on earning assets greater than cost of funds. Continued slowing in the mortgage banking sector also contributed to the net decline. The purchase of six bank branches, effective September 7, 2007, the opening of three bank branches and costs associated with the Company’s new operations center contributed to the lower results when compared to the same period a year ago.

“When a bank faces a downturn of the economy in its marketplace, management’s first concerns are asset quality and declining growth of earning assets. I am encouraged that our asset quality has remained strong through 2007 and that loan staff has successfully transitioned from residential based lending to commercial oriented lending,” said G. William Beale, President and Chief Executive Officer of Union Bankshares Corporation. “We continue to undertake initiatives that will create greater long-term shareholder value, but result in a drag on current income growth rates. Our recent branch acquisition, as well as the opening of 3 de novo branches in the last 14 months, is an example of our long term focus. The current demand for deposit growth is exceeding the supply available within our marketplace, which is placing extreme pressure on our margin. In 2008, our challenges will be to continue high levels of credit quality and attract deposits at a level sufficient to meet our customer’s needs.”

On a liked quarter basis, net income declined from the most recent quarter by $1.7 million, or 32.6%, from $5.4 million to $3.6 million for the quarter ended December 31, 2007. This represents a decline in earnings per share, on a diluted basis, of 32.5%, or $.13, to $.27. This net decline was largely attributable to additional provisions for loan losses, costs associated with the acquisition and operation of new branches as well as lower mortgage segment income.

For the twelve months ended December 31, 2007, net income was $19.8 million, down 24.0% from $26.0 million compared to the same period a year ago. This represents a decrease in earnings per share, on a diluted basis of $.47, or 24.2%, from $1.94 to $1.47.

Return on average equity for the twelve months ended December 31, 2007 was 9.61%, while return on average assets was 0.91%, compared to 13.64% and 1.30%, respectively, for 2006. This decrease was partially related to margin compression, as well as a continued slowing in the mortgage banking sector and increases in noninterest expenses.

As a supplement to U.S. generally accepted accounting principles (“GAAP”), the Company also uses certain alternate financial measures to review its operating performance. Earnings per share on a cash basis for the quarter ended December 31, 2007 were $.29 as compared to $.50 for the same quarter a year ago and $.42 for the quarter ended September 30, 2007. Additionally, cash basis return on average tangible equity for the fourth quarter ended December 31, 2007 was 10.93% as compared to 19.95% in the prior year’s fourth quarter and 15.90% for the quarter ended September 30, 2007. Earnings per share, on a cash basis and cash basis return on average tangible equity, were $1.56 and 14.88%, and $2.03 and 20.31%, respectively, for the twelve months ending December 31, 2007 and 2006.

NET INTEREST INCOME

Competition for low cost deposits and other forms of funding continued to impact the Company’s net interest margin in the fourth quarter. For the three months ended December 31, 2007, net interest income, on a tax-equivalent basis, increased slightly to $19.8 million from $19.7 million when compared to last year’s same period. This same income on a larger earning asset base reflected a decline in net interest margin, on a tax-equivalent basis, from 4.15% to 3.89%. This 26 basis point margin decline was driven by increased costs of interest-bearing liabilities, which rose to 3.88%, or 2 basis points, compared to yields on earning assets, which declined 18 basis points to 7.22%. Declining levels of low-cost deposits have continued to put pressure on the funding side of the balance sheet, resulting in the need to grow certificates of deposit, purchased funding from the Federal Home Loan Bank of Atlanta (“FHLB”) and other sources. Average interest-earning assets for the quarter ended December 31, 2007 increased approximately $151.5 million, or 9.6%, compared to only $17.7 million, or 1.3%, for interest-bearing deposits, over the same period a year ago. The remaining growth was funded by purchased funding. Loan growth was driven primarily by increases in the commercial and construction loan portfolios (primarily in owner occupied commercial real estate). Average interest-bearing liabilities for the period ended December 31, 2007 increased approximately $151.5 million, or 9.5%, over the same period a year ago. This growth was driven primarily by increases in certificates of deposit and FHLB advances, offset by lower demand deposit, savings and money market account balances. Included in these amounts are approximately $43.3 million in deposits acquired through the purchase of six bank branches, of which $34.7 million were interest-bearing liabilities.

On a linked quarter basis, the tax-equivalent net interest margin for the quarter ended December 31, 2007 declined 18 basis points from 4.07% to 3.89% from the most recent quarter. Net interest income decreased by $317 thousand to $19.8 million for the quarter ended December 31, 2007. This decrease was largely driven by declining interest rates. The Federal Open Market Committee of the Federal Reserve Board of Governors lowered the target Fed Funds rate 50 basis points during the quarter, one 25 basis point decrease on October 31^st and another on December 11^th to arrive at 4.25% by December 31, 2007. Loan growth of $56.4 million (13.6% increase on an annualized basis) helped to offset a decline in loan yields of 26 basis points. The growth in loans of $56.4 million was primarily within the commercial loan portfolio (principally owner occupied commercial real estate). Also contributing to the lower net interest margin was increased reliance on short-term advances from FHLB and other wholesale sources amid continued strong

competition for maintaining deposit cost levels (cost of interest bearing deposits declined to 3.53% or only 1 basis point) in a declining rate environment. Despite the decline in the Fed Funds rate, competition for funds has left deposit rates uncharacteristically high.

For the year ended December 31, 2007, net interest income, on a tax-equivalent basis, declined $208 thousand, or 0.3%, to $78.8 million compared to a year ago. Net interest margin declined, on a tax-equivalent basis, from 4.37% in 2006 to 4.06% for 2007. The 31 basis point margin decline was driven by increases in certificates of deposit and FHLB advances offset by lower savings and money market levels. Total cost of interest-bearing liabilities increased 46 basis points, to 3.93%, compared to earning asset yield increases of only 14 basis points, to 7.42%. Strong loan growth (principally within the commercial and construction loan portfolios, with an emphasis in owner occupied commercial real estate) of $147.5 million, or 10.0%, over a year ago helped to mitigate the effect of high cost interest bearing liabilities outpacing the yields on earning assets.

The recent 100 basis point cut (50 basis points on 9/18/07, 25 basis points on 10/31/07 and 25 basis points on 12/11/07) in the target Fed Funds rate resulted in the immediate repricing of the Company’s loans tied to prime – representing approximately 33% of the loan portfolio. The liability side of the balance sheet also showed some immediate repricing, as overnight borrowing rates adjusted downward. Competition for deposits, however, has caused the Company’s deposit rates to be less responsive to Fed Funds rate decreases.

For the year ended December 31, 2007, approximately $8.0 million ($6.2 million during the first quarter and $1.8 million during the second quarter) of investment securities were called by the issuers, resulting in gains of $508 thousand ($301 thousand during the first quarter and $207 thousand during the second quarter). The proceeds from these calls, plus additional funds, were used to pay off approximately $15.0 million of higher cost (6.3%) FHLB advances. Penalties of approximately $513 thousand ($316 thousand during the first quarter and $197 thousand during the second quarter) associated with the early payoff of these advances have been reflected as an interest expense adjustment in the net interest margin for the twelve months ended December 31, 2007. Absent this interest expense adjustment, net interest margin would have been 4.08%, instead of 4.06%, for the year ended December 31, 2007.

LOAN LOSS PROVISION/ASSET QUALITY

Despite increasing industry concerns over credit issues, the Company’s asset quality remains strong. Net charge-offs were $393 thousand (.05% and .09% of gross loans for the year and fourth quarter 2007, respectively) for the quarter ended December 31, 2007, compared to net charge-offs of $97 thousand in the same quarter last year and $229 thousand for the quarter ended September 30, 2007, and remain at relatively low levels. At December 31, 2007, nonperforming assets totaled $10.1 million, including a single credit relationship totaling $7.3 million.

The provision for loan losses increased from $154 thousand in the fourth quarter of 2006 to $1.2 million for the same quarter in 2007. On a linked quarter basis, the provision for loan losses increased $741 thousand. This net increase was primarily due to continued loan growth, net charge-offs and increased uncertainty with regard to general economic and other credit risk factors. For the year ended December 31, 2007, the provision for loan losses decreased $390 thousand from $1.5 million a year ago. This decline was largely attributable to the reduction of estimated loss exposure ($750 thousand recapture noted during the first quarter of 2007 on a continuing non-performing loan to a single credit relationship). Without regard for the above recapture, the provision for loan losses increased $360 thousand over this same period.

The Company entered into a workout agreement with the borrower in the aforementioned single credit relationship during March 2004. Under the terms of the agreement, the Company extended further credit secured by additional property with significant equity. During the first quarter of 2007, such equity was extracted from this relationship, reducing nonperforming assets totals on this relationship from $10.6 million as of December 31, 2006 to $7.9 million, and resulting in the recapture of $750 thousand in specific reserves. In the second quarter of 2007, approximately $400 thousand of this relationship returned to accrual status, further reducing the nonperforming balance to $7.5 million as of the end of June 30, 2007. This balance has been further reduced (due to payments) to $7.3 million at December 31, 2007. Despite the lengthy nature of this workout, the Company continues to have dialogue with the borrower toward a resolution of the affiliated loans and anticipates that this workout will result in further reductions of the Company’s overall exposure to the borrower. The loans to this relationship continue to be secured by real estate (two assisted living facilities).

Nationally, industry concerns over asset quality have increased due in large part to issues related to subprime mortgage lending, declining real estate activity and general economic concerns. While the Company has experienced reduced residential real estate activity, the markets in which the Company operates remain stable and there has been no significant deterioration in the quality of the Company’s loan portfolio. Residential loan demand has moderated somewhat but the Company is still experiencing continued loan demand, particularly in owner occupied commercial real estate. Management will continue to monitor delinquencies, risk rating changes, charge-offs, market trends and other indicators of risk in the Company’s portfolio (particularly those tied to residential real estate) and adjust the allowance for loan losses accordingly.

NONINTEREST INCOME

Noninterest income for the three months ended December 31, 2007, declined $942 thousand, or 12.8%, from $7.3 million to $6.4 million compared to last year’s same quarter. This decline reflected lower mortgage segment income from the sale of loans of approximately $204 thousand from the same quarter a year ago. The prior year’s same quarter contained a combination of gains from investment securities, insurance proceeds and bank-owned life insurance (“BOLI”) commissions totaling approximately $1.0 million. During the fourth quarter of 2007, legacy telephone equipment was disposed at a loss of $121 thousand and replaced with voice over internet protocol (“VoIP”) equipment. Absent these transactions and mortgage segment operations, noninterest income increased approximately $401 thousand, or 10.3%. This net increase comes from a combination of increases in other service charges and deposit account charges as well as the income from a full year’s investment in BOLI (additional investment made during December of 2006).

On a linked quarter basis, noninterest income increased $120 thousand, or 1.9%, from the quarter ended September 30, 2007. These results included $362 thousand from deposit accounts and other service charges and $293 thousand from gains on sales of loans within the mortgage segment. The Company recorded a gain of $324 thousand from the sale of its former operations center during the third quarter of 2007. Absent the loss on disposal of legacy telephone equipment (mentioned above), mortgage operations and the prior quarter gain on sale, noninterest income increased approximately $272 thousand or 6.8%.

For the year ended December 31, 2007, noninterest income decreased $3.1 million, or 11.1%, from $28.2 million in 2006 to $25.1 million. The decrease was principally driven by lower gains on sales within the mortgage segment of $2.5 million. Deposit accounts and other service charge income increased $755 thousand, or 5.7%, compared to last year. The prior year gains from the sale of real estate of approximately $837 thousand, insurance proceeds and BOLI commissions of approximately $617 thousand did not recur in 2007 thereby contributing to lower noninterest income.

NONINTEREST EXPENSE

Noninterest expense for the three months ended December 31, 2007 increased $2.7 million, or 15.3%, to $19.9 million over last year’s same period. Other operating expenses increased $1.5 million, or 27.9%, which was principally related to the purchase of six bank branches and their related operations, marketing expenses, the operation of three additional bank branches and infrastructure enhancements to support the Company’s continued growth. Infrastructure enhancements included VoIP and the associated hardware and software to support this technology. Other initiatives include online check deposit (i.e., remote capture) technology, enhancements to our internet banking delivery channel (e.g., increased bandwidth) and improvements in data security and business continuity. Salaries and benefits increased $627 thousand, or 6.7%, and were mainly attributable to normal compensation increases, additional personnel and incentive compensation. This increase of $627 thousand was offset by reductions in profit sharing expense, commission expense from the mortgage segment and group insurance costs. Occupancy expenses increased $366 thousand, or 27.2%, and were principally attributable to increased facilities costs associated with the Company’s continued expansion. Some of these increased costs included depreciation, property insurance, rental expenses and, to a lesser extent, utility costs. In addition, the Company moved into its new 70,000 square foot operations center, in Caroline County, during the second quarter of 2007. This facility will allow for more effective and efficient deployment of the Company’s support services and provide sufficient space for anticipated growth over the next ten years. The fourth quarter of 2007 contained approximately $114 thousand of depreciation related to this new operations center. Other occupancy costs of approximately $141 thousand were attributable to the acquisition of six bank branch facilities, as stated above. Furniture and equipment expenses increased $139 thousand, or 11.9%, and were attributable to the related depreciation and software costs of the additional branches and new operations center.

On a linked quarter basis, noninterest expense increased by $1.9 million or 11.0%, to $19.9 million from $18.0 million for the period ended December 31, 2007. Increases in salaries of $748 thousand or 8.1% are primarily attributable to increases in additional retail staff as a result of acquiring branches during September 2007, incentive compensation and mortgage segment commissions, offset by lower group insurance costs and management incentive compensation. Increases in occupancy expenses of $152 thousand, or 9.7%, are principally due to costs associated with the acquisition of six bank branches. Other operating expenses increased $976 thousand, or 16.3%, principally driven by fourth quarter marketing campaign expenses, communications costs (telephone, internet and software), mortgage segment loan expense on portfolio loans, overdraft returns as well as the direct and operational costs associated with the acquisition of six bank branches. These operating costs of $976 thousand were offset by home equity line expenses. Furniture and equipment expenses increased $93 thousand, or 7.7%, primarily as a result of a full quarter of depreciation related to the acquisition of six bank branches, as well as maintenance on ATMs during the fourth quarter of 2007.

For the year ended December 31, 2007, noninterest expense increased $6.0 million, or 8.9%, from $67.6 million to $73.6 million. These figures include the acquisition of Prosperity Bank & Trust Company (“Prosperity”) on April 1, 2006; therefore, results of operations include twelve months of Prosperity activity for 2007 and only nine months for 2006. Excluding this year’s first quarter of noninterest expense related to Prosperity of $1.0 million, total noninterest expense increased $5.0 million, or 7.4%, when compared to the prior year.

The following increases exclude the first quarter 2007 noninterest expenses of Prosperity. Other operating expenses increased $3.1 million, or 15.0%, and principally related to telecommunications enhancements (approximately $1.2 million), the acquisition of six bank branches (approximately $428 thousand), bank franchise taxes (approximately $248 thousand) and three additional bank branches (approximately $119 thousand). The telecommunications enhancements include the Company’s internet banking delivery channel (e.g., increased bandwidth), and improvements in data security and business continuity. Salary and benefits increased $741 thousand, or 2.0%, which was attributable to normal compensation adjustments, increased retail staff related to branch growth, equity based compensation and group insurance costs. This increase of $741 thousand was offset by lower commissions from the mortgage segment, as well as lower profit sharing expenses. Occupancy expense increased $967 thousand, or 19.3%, and was principally related to the Company’s fixed asset expansion (bank branches and new operations center). These costs included depreciation, property insurance and, to a lesser extent, utility costs. Furniture and equipment expense increased $257 thousand, or 5.7%.

For the year ended December 31, 2007 total acquisition charges of approximately $211 thousand were charged to expense and currently are reflected in the caption “Other operating expenses” in the Company’s Condensed Consolidated Statements of Income. These costs primarily related to system conversion costs.

BALANCE SHEET

At December 31, 2007, total assets were approximately $2.3 billion compared to $2.1 billion and $2.2 billion at December 31, 2006 and September 30, 2007, respectively. Net loans increased $198.2 million, or 13.0%, from December 31, 2006, and increased $63.3 million, or 3.7% from the quarter ended September 30, 2007. Loan growth was concentrated in the commercial real estate and construction loan portfolios (primarily in owner occupied commercial real estate) from a year ago, as well as from September 30, 2007. Total cash and cash equivalents declined $17.6 million (lower Fed Funds sold) to $58.3 million at December 31, 2007 from $75.9 million a year ago, but increased $7.8 million (cash and due from banks), or 15.5%, from $50.5 million as of September 30, 2007. Deposits decreased $6.3 million, or 0.4%, from December 31, 2006 primarily due to lower demand deposits, money market, and savings account balances, partially offset by higher certificates of deposit. Deposits declined $2.8 million from September 30, 2007 and related principally to demand, money market and savings accounts. Total borrowings also increased by $71.1 million and $181.5 million to $270 million, from September 30, 2007 and December 31, 2006, respectively. The Company’s equity to assets ratio remains strong at 9.22% at December 31, 2007.

SEGMENT INFORMATION

Community Banking Segment

For the three months ended December 31, 2007, net income for the community banking segment decreased 39.6% or $2.6 million from $6.5 million to $3.9 million from the same quarter last year. This decline was partially attributable to flat net interest income as a result of increased funding costs and a heavier reliance on purchased funding. The provision for loan loss increased $1.0 million, from $154 thousand to $1.2 million during this period. This net increase was primarily due to continued loan growth, net charge-offs and increased uncertainty with regard to general economic and other credit risk factors.

Noninterest income declined $738 thousand, or 15.1%, in the fourth quarter of 2007 from the same period a year earlier. The prior year’s same quarter contained a combination of gains from investment securities, insurance proceeds and BOLI commissions totaling approximately $1 million. Additionally, during the fourth quarter of 2007, legacy telephone equipment was disposed at a loss of $121 thousand and replaced with VoIP equipment. Absent these transactions, noninterest income increased approximately $401 thousand, or 10.3%. This net increase comes from a combination of increases in other service charges and deposit account charges as well as the income from a full year’s investment in BOLI (additional investment made during December 2006). Noninterest expense increased $2.4 million, or 16.2%, mainly due to increases in other operating expenses. Other operating expenses increased $1.3 million, or 25.3%, which was principally related to marketing expenses, the operation of three additional bank branches, the purchase of six bank branches and their related operations, and infrastructure enhancements to support the Company’s continued growth. Other increases in operating expenses are reflective of the Company’s continued investment in people and technology necessary to support growth and service goals. Increases in salaries and benefits of $620 thousand, occupancy expenses of $316 thousand and furniture and equipment expense of $141 thousand increased primarily as a result of the above noted branch expansion.

On a linked quarter basis, community bank segment net income declined $1.6 million, or 28.7%, for the period ended December 31, 2007. The provision for loan loss increased $741 thousand, from $432 thousand to $1.2 million during this period. Net interest income after the provision for loan losses decreased $1.1 million, or 5.7%. Noninterest income decreased $173 thousand, or 4.0%, and was primarily attributable to the current quarter disposal of legacy telephone equipment, partially offset by higher service charges and fees on deposit accounts. Noninterest expense increased $1.4 million, or 8.9%, and was primarily related to the acquisition of six bank branches and their related operations, a newly opened bank branch (Harrison’s Crossing) and increased marketing expenses related to Company marketing campaigns.

For the twelve months ended December 31, 2007, compared to the same period in 2006, net income for the community banking segment decreased 20.5%, or approximately $5.3 million, from $25.9 million to $20.6 million. Net interest income declined $993 thousand, or 1.3%, as funding costs increased at a greater pace than yields on earning assets. During the first half of 2007 funds from called securities were used to payoff FHLB advances. Approximately $513 thousand in penalties associated with the early payoff of FHLB advances have been reflected as an interest expense adjustment. Net interest income after the provision for loan losses decreased $603 thousand, or 0.8%, from a year ago. Reflected in this net decrease are specific loan loss reserves of $750 thousand that were recaptured during the first quarter of 2007. See Loan Loss Provision/Asset Quality section for additional information.

Noninterest income for the twelve months ended December 31, 2007 decreased $654 thousand or 3.8%. Excluding the gains from called investment securities of $508 thousand, the gain recorded from the sale of the former operations center of $324 thousand in 2007 and prior year gains from the sale of real estate of $856 thousand, investment securities of $276 thousand and Small Business Investment Company income of $150 thousand, the increase in noninterest income was $646 thousand, or 4.2%, over the prior year.

Noninterest expense increased $6.8 million, or 12.1%, to $63.4 million for the twelve months ending December 31, 2007 compared to the same period a year ago. Other operating expenses and salary and benefits increased $3.1 million and $2.4 million, respectively. To a lesser extent, occupancy expenses and furniture and equipment increased $931 thousand and $393 thousand, respectively. These increased costs were a function of three new branches, six purchased bank branches and the completion of the Company’s operations center during 2007. Additionally, twelve months of Prosperity’s noninterest expenses were included in 2007 compared to only nine months for the same period in 2006 (acquired April 1, 2006). This represents approximately $1.0 million of the total increase in noninterest expenses.

Mortgage Segment

For the three months ended December 31, 2007, the mortgage segment reported a net loss of $330 thousand, a $247 thousand decline from an $83 thousand net loss for the same quarter in 2006. The housing market for both new construction and existing sales continued to slump during the quarter, providing fewer origination opportunities than during the same quarter last year. Reduced mortgage loan demand combined with less liquidity in the secondary market and more stringent underwriting requirements have slowed both purchase and refinance production. Loan origination volume decreased 15.3% from the same period last year, resulting in a decline in loan revenue of $204 thousand. Total noninterest expenses increased $170 thousand, including occupancy expense increases of $50 thousand primarily related to the expansion of the branch network in the last quarter, including the addition of new origination offices. Other operating expenses increased $219 thousand principally as the result of losses on repurchased loans and other receivables.

On a linked quarter basis, mortgage segment net income declined $159 thousand from a net loss of $171 thousand to a net loss of $330 thousand. Revenue from the sale of loans increased $293 thousand, or 14.5% while originations rose 3.8% as loan profit margins improved due to consumer demand for more profitable loan products and better secondary market execution. Commission expense increased $308 thousand correlating to a portion of the increase in gain on sale revenue. Occupancy expense increased $58 thousand from the last quarter primarily as a result of expansion of the branch network and maintenance of existing locations. Other operating expenses increased $197 thousand principally as a result of the costs, fixed and variable, associated with the expansion of the branch network and $103 thousand on repurchased loans.

For the year ended December 30, 2007, the mortgage segment reported a net loss of $803 thousand, a decline of $941 thousand from net income of $138 thousand for the year ended December 31, 2006. This was principally due to a 23.3% decline in loan originations, from $484.7 million to $371.9 million, for the years ended December 31, 2006 and 2007, respectively. In addition, the mortgage segment reported loan related losses of $267 thousand during the twelve months ended December 31, 2007, and $103 thousand on repurchased loans.

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ABOUT UNION BANKSHARES CORPORATION

Union Bankshares Corporation is one of the largest community banking organizations based in Virginia, providing full service banking to the Northern, Central, Rappahannock, Tidewater and Northern Neck regions of Virginia through its bank subsidiaries, Union Bank and Trust Company (35 locations in the counties of Albemarle, Caroline, Chesterfield, Fluvanna, Hanover, Henrico, King George, King William, Nelson, Spotsylvania, Stafford, Westmoreland and the Cities of Fredericksburg and Charlottesville); Northern Neck State Bank (9 locations in the counties of Richmond, Westmoreland, Essex, Northumberland and Lancaster); Rappahannock National Bank (7 locations in Washington, Front Royal, Middleburg, Warrenton, and Winchester); Bay Community Bank (4 locations in Williamsburg, Newport News and Grafton), and Prosperity Bank & Trust Company (3 locations in Springfield and Burke). Union Bank and Trust Company also operates a loan production office in Manassas. Union Investment Services, Inc. provides full brokerage services; Union Mortgage Group, Inc. provides a full line of mortgage products; and Union Insurance Group, LLC offers various lines of insurance products. Bay Community Bank also owns a non-controlling interest in Johnson Mortgage Company, LLC.

Additional information is available on the Company’s website at www.ubsh.com. The shares of the Company are traded on the NASDAQ Global Select Market under the symbol “UBSH”.

FORWARD-LOOKING STATEMENTS

Certain statements in this report may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include projections, predictions, expectations or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often characterized by the use of qualified words (and their derivatives) such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate” or other statements concerning opinions or judgment of the Company and its management about future events. Although the Company believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance or achievements of the Company will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Actual future results and trends may differ materially from historical results or those anticipated depending on a variety of factors, including, but not limited to, the effects of and changes in: general economic conditions, the interest rate environment, legislative and regulatory requirements, competitive pressures, new products and delivery systems, inflation, changes in the stock and bond markets, technology, and consumer spending and savings habits. The Company does not update any forward-looking statements that may be made from time to time by or on behalf of the Company.

UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS

(in thousands, except share 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

CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2007 AND 2006

(Dollars in thousands, except share amounts)

UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share amounts)

(Unaudited)

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