Exhibit 99.1

Contact:	D. Anthony Peay—(804) 632-2112             Senior Vice President/ Chief Financial Officer
Distribute to:	Virginia State/Local Newslines, NY Times, AP, Reuters, S&P, Moody, Dow Jones, Investor Relations Service
July 16, 2003	4:00 p.m.             Traded: NASDAQ                 Symbol: UBSH

UNION BANKSHARES REPORTS 26% INCREASE IN 2nd QUARTER EARNINGS

FOR IMMEDIATE RELEASE (Bowling Green, Virginia)—Union Bankshares is pleased to report net income for the quarter ended June 30, 2003 of $4,336,000, an increase of 25.6 % from $3,453,000 a year ago. Earnings per share on a diluted basis increased by 26.6% to $.57 from $.45 for the same quarter in 2002. Return on average equity for the quarter was 15.60%, and return on average assets for the same period was 1.50 %, as compared to 14.80% and 1.38%, respectively, for the second quarter of 2002.

For the six months ended June 30, 2003, net income increased to $8.3 million from $6.5 million for the same period in 2002, an increase of 27.2%. Over this same period, earnings per share on a diluted basis increased 25.6% to $1.08 from $.86 for the same period in 2002. Return on average equity for the six months ended June 30, 2003 was 15.29%, while return on average assets for the same period was 1.47%, compared to 14.25% and 1.33% respectively, for the six months ended June 30, 2002.

For the second quarter net income for the mortgage banking segment increased to $917,000, an increase of $711,000 or 345.0% from $206,000 in the same quarter of 2002. For the quarter, net income for the community banking segment was $3.4 million, an increase of $172,000 or 5.3% over $3.2 million for the second quarter of 2002. For the six months ended June 30, 2003, net income for the community bank segment increased to $6.8 million from $6.0 million at June 30, 2002 , while the mortgage segment increased to $1.5 million from $529,000 for the same period in 2002.

For the Company, net interest income was up $684,000 or 6.8% from the second quarter of 2002. Average earning assets grew to $1.089 million compared to $937.1 million in the prior year quarter providing the Company with a higher earnings base compared to last year. This volume growth offset a net interest margin decrease of 40 basis points as the net interest margin (FTE) decreased to 4.20% in the second quarter of 2003, down from 4.60% in the same quarter of 2002, and down slightly from 4.26% in the first quarter of 2003.

Loans increased 17.7% or $118.6 million from the second quarter of 2002 and 10.4% or $74.0 million from the end of 2002. Loans for the second quarter compared to the first quarter of 2003 increased 5.2% or $38.7 million. Yields on loans (FTE) decreased from 7.58% during the second quarter of 2002 and from 7.07% in the first quarter 2003 to 6.81% for the second quarter of 2003. The cost of funds also declined, from 3.09% in the second quarter of 2002 and 2.80% for the first quarter of 2003 to 2.70% in the second quarter of 2003. Comparing first quarter to second quarter 2003 yields, loans declined by 26 basis points while deposits declined by only 10 basis points which led to the narrowing margin. Deposit levels were up17.8% from the second quarter of 2002 and 1.8% or $17.1 million from the first quarter of

2003. This reflects a slowing in deposit growth, with lower rates and an improving equity market pushing consumers to look for alternatives to earn more from their funds.

The provision for loan losses was down $537,000 from $1,569,000 a year earlier. This is reflective of general improvement in overall asset quality, despite an increase in non-accrual loans. At the end of June, two credits totaling $8.1 million were placed on non-accrual status. The Company is working with the borrower to protect its interest, but has allocated $550,000 in loan loss reserves to this relationship. This brought nonperforming assets to $10.5 million at June 30, 2003. Without these credits, nonperforming assets would have been $2.3 million, down from $2.9 million the prior year and $3.0 million the first quarter of 2003. The allowance for loan losses is up slightly at 1.30% of gross loans from 1.26% a year earlier.

Noninterest income for the second quarter increased $2.4 million or 62.1% from a year ago and reflected a $1.9 million or 91.4% increase in gains on sales of loans. Service charges on deposit accounts showed an increase of $223,000 or 22.0% for the same period, reflecting the 28.1% increase in noninterest bearing deposit accounts and the impact of a new overdraft protection product introduced during the quarter.

Noninterest expense for the second quarter 2003 increased by $1.6 million or 18.7% from a year ago while assets grew by 16.3%. A significant portion of the growth in expenses was related to increased commissions ($771,000) on mortgage loan sales and to expenses associated with both the Thornburg branch which opened in August 2002, the loan production offices in Manassas and Richmond, the Newport News relocated branch opening and new product advertisements. The Company continues to focus on expense controls to create greater operating efficiencies as it grows.

“We are pleased with the overall performance of the Company for the first six months of 2003, said President G. William Beale Clearly, our mortgage segment has produced tremendous results and favorably impacted the Corporation’s profitability. The near term prospects for the mortgage sector appear good. We do expect net income in the mortgage sector to lessen when interest rates rise.

The community banking sector has continued to perform well. I see three factors contributing to slowing of net income growth in this segment of our business. Competition for loan assets, driven by excess liquidity in banks, has become fierce. The result is lower top line yields. Second, is the Company’s balance sheet structure. Our balance sheet is currently asset sensitive and prepared for improved performance in a rising rate environment. Declines in short term rates over the last three quarters have adversely impacted our margin, our largest driver of revenue. Finally, we have invested in people and additional locations to take advantage of fallout from recent mergers in our market and build our Company for long term growth.

During the quarter, our Richmond loan production office, which had been operating out of our Atlee loan center since opening in January, moved to its permanent location at the intersection of Parham and Three Chopt in Richmond’s West End. Rick Ocheltree and Jim Tyler form a strong nucleus for that operation which has closed over $15 million in loans to date and built a strong pipeline with loan demand in that market. Our Manassas LPO has exceeded $20 million in production and its pipeline is also strong.

The large bank consolidations continue to provide us with growth opportunities. We have submitted an application for a Union Bank & Trust Company branch adjacent to the Richmond LPO and, subject to regulatory approval, expect to open that location in December 2003. Union also has plans for two additional branches in the Richmond market: on Rt 360 and on Pole Green Road, both in

Mechanicsville. In addition, Rappahannock National Bank will open its new main office in August 2003.”

At June 30, 2003 total assets were $1.188 billion, up 16.3% from $1.022 billion at June 30, 2002. Deposits increased to $958.1 million, up $144.4 million or 17.8% over $813.7 million at the end of the second quarter 2002 while loans totaled $788.8 million, up $118.6 million or 17.7% over second quarter 2002 levels. Securities declined to $255.5 million at June 30, 2003 compared to $260.4 million a year earlier. The Company’s capital position remains strong with an equity-to- assets ratio of 9.6 %.

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 (19 locations in the counties of Caroline, Hanover, King George, King William, Spotsylvania, Stafford, Westmoreland and the City of Fredericksburg), Northern Neck State Bank (9 locations in the counties of Richmond, Westmoreland, Essex, Northumberland and Lancaster), Rappahannock National Bank in Washington, Virginia and Bank of Williamsburg in Williamsburg and Newport News. Union Bank & Trust also operates loan production offices in Manassas and Richmond, Virginia. The new Richmond LPO is located at Parham and Three Chopt Roads, close to the Regency Square shopping mall. In addition, Union Investment Services, Inc. provides full brokerage services and Mortgage Capital Investors provides a full line of mortgage products.

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	For the three months ended						For the six months ended
	June 30,						June 30,
	2003			2002			2003			2002
RESULTS OF OPERATIONS
Interest income	$	16,751		$	16,119		$	33,277		$	31,986
Interest expense		6,020			6,072			12,084			12,307
Net interest income		10,731			10,047			21,193			19,679
Provision for loan losses		645			739			1,032			1,569
Net interest income after provision for loan losses		10,086			9,308			20,161			18,110
Noninterest income		6,211			3,832			10,887			7,660
Noninterest expenses		10,264			8,649			19,544			17,298
Income before income taxes		6,033			4,491			11,504			8,472
Income tax expense		1,697			1,038			3,224			1,961
Net income		4,336			3,453			8,280			6,511
Interest earned on loans (Fully Tax Equivalent)	$	13,535		$	12,578		$	26,719		$	24,875
Interest earned on securities (FTE)		3,850			4,203			7,786			8,407
Interest earned on earning assets (FTE)		17,417			16,827			34,604			33,394
Net interest income (FTE)		11,399			10,755			22,526			21,087
Net income (FTE)		5,074			4,230			9,749			8,056
Interest expense on certificate of deposits		4,424			4,177			8,848			8,568
Interest expense on interest bearing deposits		5,036			5,034			10,122			10,249
Core deposit intangible amortization		143			148			289			296
								—
Net income—community banking segment	$	3,419		$	3,247		$	6,816		$	5,982
Net income—mortgage banking segment		917			206			1,464			529
KEY PERFORMANCE RATIOS
Return on average assets (ROA)		1.50	%		1.38	%		1.47	%		1.33	%
Return on average equity (ROE)		15.60	%		14.80	%		15.29	%		14.25	%
Efficiency ratio		60.58	%		62.31	%		60.92	%		63.27	%
Efficiency ratio (excluding mortgage segment)		59.02	%		57.93	%		58.72	%		59.28	%
Net interest margin (FTE)		4.20	%		4.60	%		4.23	%		4.59	%
Yield on earning assets (FTE)		6.42	%		6.90	%		6.50	%		6.97	%
Cost of interest bearing liabilities		2.70	%		2.71	%		2.75	%		2.79	%
PER SHARE DATA
Net income per share—basic	$	0.57		$	0.46		$	1.09		$	0.86
Net income per share—diluted		0.57			0.45			1.08			0.86
Cash EPS		0.58			0.47			1.11			0.89
Cash dividends paid (semi-annual payment)		0.29			0.25			0.29			0.25
Book value per share		15.04			12.93			15.04			12.93
Tangible book value per share								14.24			12.05
FINANCIAL CONDITION
Assets							$	1,188,017		$	1,021,755
Loans, net of unearned income								788,792			670,160
Earning assets								1,114,190			955,399
Goodwill								864			864
Other intangibles								5,211			5,797
Deposits								958,107			813,672
Stockholders’ equity								114,382			97,757

Averages
Assets	$	1,155,668		$	1,000,720		$	1,138,479		$	988,874
Loans, net of unearned income		760,843			652,687			744,500			632,563
Loans held for sale		49,122			15,079			42,976			21,019
Securities		262,491			258,978			264,915			258,157
Earning assets		1,088,608			937,073			1,073,837			926,002
Deposits		936,508			801,841			921,546			791,686
Certificates of deposit		482,085			408,166			475,794			407,833
Interest bearing deposits		799,337			689,869			790,508			683,260
Borrowings		94,838			100,645			96,093			100,229
Interest bearing liabilities		894,175			790,514			886,601			783,489
Stockholders’ equity		111,497			93,597			109,178			92,113
ASSET QUALITY
Beginning balance Allowance for loan loss	$	9,592		$	7,827		$	9,179		$	7,336
plus provision for loan loss		645			739			1,032			1,569
less charge offs		(227	)		(272	)		(453	)		(702	)
plus recoveries		242			140			494			231
Allowance for loan losses		10,252			8,434			10,252			8,434
Allowance as % of total loans		1.30	%		1.26	%		1.30	%		1.26	%
Nonaccrual loans							$	8,791		$	636
Foreclosed properties & real estate investments								464			1,087
Total nonperforming assets								9,255			1,723
Loans past due 90 days and accruing interest								1,219			1,175
Total nonperforming assets plus 90 days								10,474			2,898
Nonperforming assets to loans plus foreclosed properties								1.16	%		0.26	%
OTHER DATA
Market value per share at period-end							$	28.16		$	26.43
Price to book value ratio								1.87			2.04
Price to earnings ratio								13.04			15.37
Weighted average shares outstanding, basic		7,600,395			7,552,222			7,594,980			7,544,071
Weighted average shares outstanding, diluted		7,667,993			7,623,790			7,659,651			7,602,925
Shares repurchased		—			—			1,000			—
Average price of repurchased shares		—			—			24.07			—
Mortgage loan originations		158,893,970			74,955,961			272,706,304			158,088,976
% of originations that are refinances		54.6	%		26.2	%		56.5	%		32.8	%
End of period full time equivalent employees								467			449
Number of full service branches								31			30
Number of Bank subsidiaries								4			4
Number of ATMs								31			28

UNION BANKSHARES CORPORATION

Comparative Balance Sheets

							Change
(Dollars in thousands)	6/30/2003			6/30/2002			$			%
ASSETS
Cash and due from banks	$	28,966		$	25,160		$	3,806		15.13	%
Interest-bearing deposits in other banks		1,773			1,276			497		38.95	%
Money market investments		199			98			101		n/m
Federal funds sold		7,150			4,067			3,083		n/m
Total cash and cash equivalents		38,088			30,601			7,487		24.47	%
Securities available for sale, at fair value		255,525			260,375			(4,850	)	-1.86	%
Investment securities, at amortized cost		—			—			—		n/m
Total securities		255,525			260,375			(4,850	)	-1.86	%
Loans held for sale		60,751			19,423			41,328		212.78	%
Loans, net of unearned income		788,792			670,160			118,632		17.70	%
Less allowance for loan losses		(10,252	)		(8,434	)		(1,818	)	21.56	%
Net loans		778,540			661,726			116,814		17.65	%
Bank premises and equipment, net		24,766			19,848			4,918		24.78	%
Other real estate owned		464			1,087			(623	)	-57.31	%
Other assets		29,883			28,695			1,188		4.14	%
Total assets	$	1,188,017		$	1,021,755		$	166,262		16.27	%
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest bearing demand deposits	$	152,443		$	119,054		$	33,389		28.05	%
Interest-bearing deposits:
NOW accounts		136,018			121,547			14,471		11.91	%
Money market accounts		94,558			84,050			10,508		12.50	%
Savings accounts		89,172			78,114			11,058		14.16	%
Time deposits of $100,000 and over		162,400			131,578			30,822		23.42	%
Other time deposits		323,516			279,329			44,187		15.82	%
Total interest-bearing deposits		805,664			694,618			111,046		15.99	%
Total deposits		958,107			813,672			144,435		17.75	%
Customer repurchase agreements		37,393			37,590			(197	)	-0.52	%
Federal funds		—			—			—		n/m
Other short-term borrowings		—			—			—		n/m
Long-term borrowings		61,764			62,275			(511	)	-0.82	%
Total borrowings		99,157			99,865			(708	)	-0.71	%
Other liabilities		16,371			10,461			5,910		56.50	%
Total liabilities		1,073,635			923,998			149,637		16.19	%
Stockholders' equity
Common stock		15,211			15,119			92		0.61	%
Surplus		1,795			1,011			784		77.55	%
Retained earnings		88,077			76,046			12,031		15.82	%
Unrealized gain (loss) on securities available for sale, net of deferred taxes		9,299			5,581			3,718		66.62	%
Total stockholders' equity		114,382			97,757			16,625		17.01	%
Total liabilities and stockholders' equity	$	1,188,017		$	1,021,755		$	166,262		16.27	%

Union Bankshares Corporation

Comparative Income Statements

This Quarter vs. Same Quarter Last Year

	Three Months Ended					Change
(in thousands)	6/30/2003		6/30/2002			$			%
Interest income:
Interest and fees on loans	$	13,456	$	12,472		$	984		7.9	%
Interest on Federal funds sold		21		37			(16	)	-43.2	%
Interest on interest bearing deposits with other banks		8		4			4		100.0	%
Interest on money market investments		4		6			(2	)	-33.3	%
Interest on investments:
Taxable		2,123		2,432			(309	)	-12.7	%
Tax exempt		1,139		1,168			(29	)	-2.5	%
Total interest income		16,751		16,119			632		3.9	%
Interest expense:
Interest on deposits		5,035		5,034			1		0.0	%
Interest on Federal funds		7		2			5		250.0	%
Interest on short-term borrowings		66		114			(48	)	-42.1	%
Interest on long-term borrowings		912		922			(10	)	-1.1	%
Total interest expense		6,020		6,072			(52	)	-0.9	%
Net interest income		10,731		10,047			684		6.8	%
Provision for loan losses		645		739			(94	)	-12.7	%
Net interest income after provision for loan losses		10,086		9,308			778		8.4	%
Noninterest income:
Service charges on deposit accounts		1,238		1,015			223		22.0	%
Other service charges and fees		667		650			17		2.6	%
Gains (losses) on securities transactions, net		1		(162	)		163		-100.6	%
Gain on sales of loans		3,963		2,071			1,892		91.4	%
Gains (losses) on other real estate owned and bank premises, net		10		67			(57	)	-85.1	%
Other operating income		332		191			141		73.8	%
Total noninterest income		6,211		3,832			2,379		62.1	%
Noninterest expenses:
Salaries and benefits		6,495		5,082			1,413		27.8	%
Occupancy expenses		635		554			81		14.6	%
Furniture and equipment expenses		601		653			(52	)	-8.0	%
Other operating expenses		2,533		2,360			173		7.3	%
Total noninterest expenses		10,264		8,649			1,615		18.7	%
Income before income taxes		6,033		4,491			1,542		34.3	%
Income tax expense		1,697		1,038			659		63.5	%
Net income	$	4,336	$	3,453		$	883		25.6	%