Exhibit 99.1

UNION BANKSHARES CORPORATION REPORTS EARNINGS

FOR IMMEDIATE RELEASE (Bowling Green, Virginia) — Union Bankshares Corporation (the “Company”) (NASDAQ: UBSH - News) reports net income for the quarter ended September 30, 2008 of $4.3 million, down $78 thousand or 1.8% as compared to the most recent quarter ending June 30, 2008. Earnings per share, on a diluted basis, declined $.01 from $.32 to $.31, representing a decline of 3.1%. Return on average assets and return on average equity were .71% and 7.87%, respectively. These results were largely attributable to increased provisions for loan losses partially offset by lower funding costs, gains from the sale of bank owned property and other increases in noninterest income.

“Any comments on the third quarter results for Union Bankshares seem insignificant when compared with recent industry-changing news of rescue packages, the U. S. Treasury’s guaranteeing money market mutual funds, the Federal Reserve’s taking ownership of the world’s largest insurance company, the remaining two largest investment banks’ becoming bank holding companies, and the U.S. Treasury’s potentially taking a significant ownership position in many U.S. banks, including the nine largest,” said G. William Beale, President and Chief Executive Officer of Union Bankshares Corporation. “We know the operating environment for financial institutions has changed. We do not yet know how the changes will shape the future landscape of our industry.

Considering the state of the national and our marketplace economies, Union Bankshares had a good quarter. I am pleased to report all of our subsidiaries were profitable for the quarter and net income was equal to our second quarter results. Earnings, when compared to last year, are lower, but reflective of reduced economic activity and increased credit costs associated with the weakened economy.

Loan growth was slowed both by design and as a result of decreased economic activity during the quarter. Liquidity concerns dominated the banking landscape and deposit growth remained a challenge for a myriad of reasons, but our third quarter results reflected positive deposit growth. We increased our provision for loan losses to reflect both the analysis of our loan portfolio and the studied expectation that economic weakness will continue for at least the next eighteen months.”

For the three months ended September 30, 2008 net income was $4.3 million, down 20.6% from $5.4 million for the same quarter in 2007. Earnings per share, on a diluted basis, decreased $.09, or 22.5%, to $.31 from $.40 for the same quarter a year ago. Return on average equity for the quarter ended September 30, 2008 was 7.87%, while return on average assets for the same period was 0.71%, compared to 10.32% and .97%, respectively, for the prior year’s same quarter.

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This year to year decline was largely the result of increased provisions for loan losses, the costs associated with the purchase of six bank branches, effective September 7, 2007, the opening of one de novo branch and nonrecurring expenses related to merging affiliate banks. These increased expenses were partially offset by gains from the sale of bank owned property, increased profitability in the mortgage segment and growth in service charge income on deposit accounts. The six purchased branches and the de novo branch are referred to collectively herein as the “new branches”.

For the nine months ended September 30, 2008 net income was $12.2 million down $3.9 million, or 24.2%, from $16.1 million compared to the same period a year ago. This decline represents a decrease in earnings per share, on a diluted basis, of $.29, or 24.2%, from $1.20 to $.91. Return on average equity for the nine months ended September 30, 2008 was 7.61%, while return on average assets was .70%, compared to 10.59% and 1.01%, respectively, for the same period in 2007. The decrease was partially related to increased provisions for loan losses, noninterest expenses associated with the purchase of new branches, partially offset by gains from the sale of bank owned property, increased profitability in the mortgage segment and growth in service charge income on deposit accounts.

As a supplement to U.S. generally accepted accounting principles (“GAAP”), the Company also uses certain alternate financial measures to review its operating performance. Diluted earnings per share on a cash basis for the quarter ended September 30, 2008 were $.34 as compared to $.42 for the same quarter a year ago and $.35 for the quarter ended June 30, 2008. Additionally, cash basis return on average tangible equity for the quarter ended September 30, 2008 was 12.26% as compared to 15.90% in the prior year’s third quarter and 12.64% for the quarter ended June 30, 2008.

NET INTEREST INCOME

The targeted Federal funds rate was maintained at 2.00% from April 30, 2008 through September 30, 2008 by the Federal Open Market Committee (“FOMC”) of the Federal Reserve Board of Governors. That rate remained unchanged until a coordinated effort, on October 8, 2008, among major central banks cut that rate an additional 50 basis points. The economic events and financial turmoil of the months leading up to this coordinated rate cut have placed stress on deposit pricing and competition for those deposits, both having an impact on the Company’s net interest margin.

On a linked quarter basis, net interest income, on a tax-equivalent basis, increased $497 thousand, or 2.4%, to $21.1 million. The tax-equivalent net interest margin declined 3 basis points to 3.89% from 3.92% over the most recent quarter. Contributing to this decline was a slight decrease in earning asset yields as compared to costs associated with the funding of those assets. Additionally, increased volumes in money market savings accounts amid a decline in checking accounts and demand deposits put pressure on the net interest margin. Total average interest-bearing liabilities increased $50.2 million and the related cost declined 5 basis points to 2.91%. Total average interest-earning asset yields declined 6 basis points to 6.42% on increased total average earning-asset volumes of $44.9 million.

For the three months ended September 30, 2008, net interest income, on a tax-equivalent basis, increased $1.0 million, or 5.1%, to $21.1 million compared to the same period last year. This increase in net interest income was achieved despite a decline in the net interest margin of 18 basis points, from 4.07% to 3.89%. This net interest margin decline was partially attributable to the inability of increased loan volumes to cover the decline in loan yields despite a reduction in the cost of funds during this period. Yields on average earning-assets declined 107 basis points and the cost of interest-bearing liabilities declined 108 basis points. The increase in net interest income was primarily driven by increased loan volume and lower cost of borrowings and certificates of deposit greater than $100 thousand. Of the increase in funding sources, average money market volumes increased $114.8 million, certificates of deposit less than $100 thousand increased $50.3 million and other borrowings increased $50.6 million partially offset by lower demand deposit volumes of $10.5 million.

For the nine months ended September 30, 2008, net interest income, on a tax-equivalent basis, increased by $2.8 million, or 4.7%, to $61.7 million compared to the same period last year. This increase in net interest income was achieved despite a decline in the net interest margin of 23 basis points, from 4.12% to 3.89%.

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This net interest margin decline was partially attributable to the decline in yields on earning-assets as compared to costs of interest-bearing liabilities. Yields on earning-assets declined 89 basis points and the cost of interest-bearing liabilities declined 83 basis points. Additional pressure on the net interest margin related to lower yields on earning assets had a greater impact than the increase in loan volumes despite lower costs to fund those loans during this period. The increase in net interest income was principally due to favorable loan volumes, lower costs of certificates of deposit greater than $100 thousand and lower costs associated with borrowings.

A variety of investment and funding activity occurred during 2007 and is stated herein for comparative purposes. For the nine months ended September 30, 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 combined with additional funds were used to pay off approximately $15.0 million of higher cost (6.3%) Federal Home Loan Bank (“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 income for the nine months ended September 30, 2007. Absent this interest expense adjustment, the net interest margin would have been 4.16%, instead of 4.12%, for the nine months ending September 30, 2007.

ASSET QUALITY/LOAN LOSS PROVISION

Industry concerns over asset quality, precipitated by issues related to subprime mortgage lending, declining real estate activity and general economic conditions, continued to increase during the third quarter. The impact of these concerns has begun to be reflected in the economic markets in which the Company operates, principally through slowing real estate activity. The Company has a significant concentration in real estate loans. Although the Company has experienced reduced activity in that sector, the markets in which the Company operates remain relatively stable with no significant deterioration in the quality of the Company’s loan portfolio. The Company’s loan portfolio does not include exposure to subprime mortgage loans. Residential acquisition and development lending and builder/construction lending have been scaled back as housing activity across our markets has declined. Several new nonperforming loans have come out of those portfolios and are being worked vigorously. 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.

Despite increasing industry concerns over credit issues and an increase in loan losses, the Company’s asset quality remains strong. Net charge-offs were $897 thousand, or 0.19% of loans, for the quarter ended September 30, 2008, compared to net charge-offs of $229 thousand, or 0.05%, in the same quarter last year and $478 thousand, or 0.11 %, for the quarter ended June 30, 2008. These charge-offs in the current quarter principally related to indirect auto lending of $303 thousand and residential real estate of $208 thousand. As of September 30, 2008, total past due loans were $12.1 million, or 0.65%, of total gross loans, up from 0.46% at September 30, 2007. At September 30, 2008, nonperforming assets totaled $17.1 million, including a single credit relationship totaling $7.0 million. Excluding this single credit relationship, total nonperforming assets increased $9.0 million since September 30, 2007 and $7.3 million since December 31, 2007. Net nonperforming assets increased $4.3 million during the third quarter of 2008. This third quarter increase was related to one acquisition and development relationship and one residential home building relationship, respectively. The second quarter increase was $2.2 million and primarily related to one commercial relationship operating in a construction-related industry. The remaining increase of $748 thousand occurred during the first quarter of 2008. The Company continues to closely monitor exposure in its loan portfolio, particularly in acquisition and development and residential construction relationships.

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The Company entered into a workout agreement with the borrower in the aforementioned $7.0 million 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 from the borrower, to $7.0 million at September 30, 2008. Despite the lengthy nature of this workout, the Company continues to work with the borrower toward a resolution of the affiliated loans and anticipates 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).

For the quarter ended September 30, 2008, the provision for loan losses increased $3.2 million from September 30, 2007. On a linked quarter basis, the provision for loan losses increased $2.0 million. The provision for loan losses increased $7.1 million for the nine months ending September 30, 2008 compared to the same period a year ago. During the first quarter of 2007, the Company recaptured $750 thousand in provision for loan losses due to the reduction in the estimated loss exposure on a non-performing loan to a single credit relationship. Absent this recapture, the increase in the provision for loan losses was $6.3 million. The increases in the provision for loan losses and the current levels in the allowance for loan losses reflect continued loan growth, charge-off and delinquency trends, uncertainty with regard to general economic and other credit risk factors that the Company considers in assessing the adequacy of the allowance for loan losses.

NONINTEREST INCOME

For the three months ended September 30, 2008, noninterest income increased $2.8 million, or 45.1%, from $6.3 million to $9.1 million compared to last year’s same quarter. This increase includes gains on the sales of two parcels of bank owned real estate totaling approximately $1.4 million. Additionally, this increase also reflects an increase in mortgage segment revenue of approximately $766 thousand and an increase of $458 thousand in revenue from service charges on deposit accounts (primarily overdraft and returned check fees) from the same quarter a year ago. For comparative purposes during the three months ended September 30, 2007, the Company recorded a gain of $324 thousand from the sale of its former operations center.

On a linked quarter basis, noninterest income increased $1.5 million, or 19.0%, to $9.1 million from $7.7 million for the quarter ended June 30, 2008. This increase includes the aforementioned gains on the sales of two parcels of bank owned real estate totaling approximately $1.7 million. Additionally, the Company had lower mortgage segment revenue as gains on sales of loans decreased by approximately $389 thousand from the prior quarter. Absent this third quarter real estate gain and gains on mortgage loan sales, noninterest income increased approximately $76 thousand, or 1.7%, from the quarter ended June 30, 2008.

For the nine months ended September 30, 2008, noninterest income increased $5.4 million, or 28.9%, to $24.1 million from $18.7 million for the same period in 2007. This increase included gains from the sale of mortgage loans of approximately $2.5 million, increased revenue of $1.3 million from service charges on deposit accounts and gains from sales of bank owned real estate totaling approximately $1.6 million over the same period a year ago.

During the first nine months of 2008, the Commonwealth of Virginia, exercising its eminent domain rights, acquired bank owned real estate for a public easement, which resulted in a gain of $127 thousand. The initial public offering of Visa, Inc. common stock during March 2008 resulted in the mandatory redemption of certain classes of common stock to financial institution members of Visa U.S.A. The Company recorded a gain of $198 thousand relating to this redemption of its member banks’ Visa, Inc. common stock. Additionally during the third quarter of 2008, the Company sold two parcels of bank owned real estate resulting in gains of approximately $1.8 million. For comparative purposes during the same period in 2007, the Company recorded a gain of $508 thousand on sales of trust preferred securities called by the issuer and a gain of $324 thousand from the sale of its former operations center. Absent these real estate and securities gain transactions and mortgage segment revenue during the nine month period ended September 30, 2008 and 2007, noninterest income increased $1.7 million, or 14.5%, compared to the same period in 2007.

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For comparative purposes, noninterest income for the nine months ended September 30, 2008 and 2007 included income associated with the purchase of six bank branches since their September 2007 purchase date. It also includes the opening of one de novo bank branch in December 2007. The purchased six bank branches contributed approximately $16 thousand of noninterest income during the year and for the quarter ending September 30, 2007. During the first nine months of 2008, these new branches contributed $309 thousand toward the increase in noninterest income. Absent the noninterest income associated with the new branches, real estate and securities gain transactions and mortgage operations during the nine month period ended September 30, 2008 and 2007, noninterest income increased approximately $1.4 million, or 11.9% compared to the same nine month period ended September 30, 2007.

NONINTEREST EXPENSE

For the three months ended September 30, 2008, noninterest expense increased $2.1 million, or 11.9%, to $20.1 million over the same quarter a year ago, primarily related to increases in salaries and benefits, the new branches and mortgage segment operations. Salaries and benefits increased $1.8 million for the three months ended September 30, 2008 as compared to the same quarter a year ago. Of the $1.8 million increase, $1.1 million related to normal compensation increases and profit sharing expenses, $397 thousand was incurred at the mortgage segment related to commissions on increased loan production, and $296 thousand related to employees at the new branches. Occupancy expenses increased $195 thousand of which $109 thousand related to the new branches. Other operating expenses and furniture and equipment expenses increased $91 thousand and $29 thousand, respectively. Excluding the new branches and mortgage segment operations the increase in noninterest expense was approximately $1.2 million, or 8.0%, from the same quarter a year ago.

On a linked quarter basis, noninterest expense increased by $75 thousand, or 0.4%, to $20.1 million for the three months ended September 30, 2008. Salaries and benefits expenses declined $233 thousand, or 2.1%, primarily attributable to lower mortgage segment commissions, but were offset by increased other operating expenses of $262 thousand, including $143 thousand related to exhausting Federal Deposit Insurance Corporation (“FDIC”) insurance assessment credits during the quarter. Occupancy expenses and furniture and equipment expenses increased $36 thousand and $10 thousand, respectively. Without the expenses associated with the new branches and mortgage segment operations, noninterest expenses increased $503 thousand, or 3.1%, over the prior quarter.

For the nine months ended September 30, 2008, noninterest expense increased by $6.5 million, or 12.1 %, to $60.1 million compared to the nine months ended September 30, 2007. Increases in salaries and benefits of $4.6 million, or 16.0%, were primarily attributable to increased mortgage segment commissions of $1.5 million as well as additional personnel in the new branches and normal compensation increases. Occupancy expenses increased $809 thousand, or 18.5%, and were principally attributable to increased facilities costs associated with the Company’s new operations center and the new branches. Some of these increased costs included depreciation, rental expenses and, to a lesser extent, utility costs. Operating expenses increased $837 thousand, or 4.9%, and principally related to ongoing infrastructure enhancements to support the Company’s continued growth as well as higher FDIC insurance costs due to exhausting assessment credits. Infrastructure enhancements included such things as Voice-over Internet Protocol and the associated hardware and software to support this technology. Approximately $269 thousand of operating expenses related to conversion costs incurred to merge an affiliate bank. Furniture and equipment expenses increased $229 thousand, or 6.5%, and were attributable to the related depreciation of the new branches and the new operations center.

For comparative purposes, noninterest expense for the nine months ended September 30, 2008 and 2007 includes expense associated with the purchase of six bank branches acquired in September 2007, and the opening of one de novo bank branch in December 2007. These new branches contributed approximately $192 thousand of noninterest expense during the month of September in 2007. During the first nine months of 2008,

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these new branches contributed $928 thousand toward the increase in salaries and benefits, $392 thousand in occupancy expenses, $256 thousand in other operating expenses and $171 thousand in furniture and equipments expenses. Absent the noninterest expense associated with the new branches, merger-related costs, and mortgage segment expenses, noninterest expense increased approximately $2.6 million, or 5.7%, over the same nine month period ended September 30, 2007.

BALANCE SHEET

At September 30, 2008, total assets were approximately $2.4 billion compared to $2.2 billion and $2.3 billion at September 30, 2007 and December 31, 2007, respectively. Net loans increased $176.1 million, or 10.6%, from September 30, 2007, and increased $112.8 million, or 6.5% from December 31, 2007. The year over year increase in loan growth was spread among consumer and commercial loan portfolios. Total cash and cash equivalents increased $34.1 million to $84.5 million at September 30, 2008 from $50.5 million a year ago, and increased $26.2 million from $58.3 million at December 31, 2007. This increase was in Federal funds sold and represented excess liquidity from an FHLB advance. Deposits increased $151.8 million, or 9.1%, and $154.6 million, or 9.3%, from September 30, 2007 and December 31, 2007, respectively, primarily due to increases in money market accounts and the issuance of approximately $81.7 million in brokered certificates of deposit. Total borrowings (including repurchase agreements) increased $71.8 million from September 30, 2007, but decreased by $10.9 million from December 31, 2007 to $401.8 million at September 30, 2008. The Company’s equity to assets ratio was 8.74% at September 30, 2008. The Company’s current strategic plan includes a targeted equity to asset ratio between 8% and 9%.

While not immune from the effects of weakening economic conditions, the Company remains focused on maintaining adequate levels of liquidity and capital during this challenging environment, and believes its sound risk management practices in underwriting and lending will enable it to successfully weather this period of economic uncertainty.

SEGMENT INFORMATION

Mortgage Segment

For the three months ended September 30, 2008, the mortgage segment reported net income of $75 thousand, a $246 thousand increase from $171 thousand net loss for the same quarter in 2007. Originations increased 18.3% from the same period last year, resulting in an increase in loan revenue of $768 thousand driven by loan origination growth within core market areas. Total noninterest expenses increased $469 thousand. Of this increase, $397 thousand related to salaries and benefits, a function of increased commission expense resulting from higher loan originations. Other operating expenses increased $44 thousand principally as a result of other costs related to increased loan growth and the addition of new branch offices.

On a linked quarter basis, mortgage segment net income declined by $13 thousand from net income of $88 thousand in the second quarter of 2008 to net income of $75 thousand. Revenue from the sale of loans declined $396 thousand, or 12.4%, while originations fell 18.6%. Salaries and benefits declined $455 thousand correlating to the decrease in originations. Operating expenses and furniture and equipment expenses each increased $41 thousand and $8 thousand, respectively, from the prior quarter. Occupancy expenses declined $23 thousand, principally due to lower maintenance costs.

For the nine months ended September 30, 2008, mortgage segment net income increased by $606 thousand from a net loss of $473 thousand to net income of $133 thousand. Revenue from the sale of loans increased $2.5 million, or 38.1%, as a result of revised fee schedules, consumer demand for loans with increased profit margins and an increase in originations of 21.1%. Salaries and benefits increased $1.5 million, principally due to commissions and other expenses related to increased loan originations. Operating and occupancy costs increased $119 thousand and $93 thousand, respectively, while furniture and equipment costs increased $36 thousand. These costs were largely driven by origination growth and additions to the branch office network.

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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 (38 locations in the counties of Albemarle, Caroline, Chesterfield, Fairfax, 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) and Bay Community Bank (4 locations in Williamsburg, Newport News and Grafton). 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.

On March 14, 2008, the Company completed the previously announced merger of its Prosperity Bank & Trust Company affiliate into Union Bank and Trust Company (“Union Bank”).

On May 28, 2008, the Company announced that its affiliate Bay Community Bank will merge into its largest bank affiliate, Union Bank. The projected completion date of the merger is October 31, 2008.

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.

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UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS

(in thousands, except share data)

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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.

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UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except share amounts)

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UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share amounts)

(Unaudited)