Botetourt Bankshares (BORT) 8-K Botetourt Bankshares, Inc Announces Record Earnings

EXHIBIT 99

Section 2: EX-99 (PRESS RELEASE)

FOR RELEASE 8:30 a.m. April 25, 2006

BOTETOURT BANKSHARES, Inc.

19747 Main Street

Buchanan, Virginia 24066

For Further Information Contact:

Michelle A. Alexander, Chief Financial Officer

(540) 591-5013

BOTETOURT BANKSHARES, INC ANNOUNCES RECORD EARNINGS

BUCHANAN, VIRGINIA.April 25, 2006 — Buchanan-based Botetourt Bankshares, Inc. announced today its consolidated financial results for the quarter ending March 31, 2006. Net income for the first quarter amounted to $878,140 which is the highest quarterly income in the history of the company. This amount compares to $751,082 for the same period last year, representing an increase of $127,058 or 16.92%. Both basic and diluted earnings per share increased $0.10 from $0.61 at March 31, 2005 to $0.71 at March 31, 2006.

At March 31, 2006 total assets amounted to $247,819,369, total deposits were $224,144,834, total loans stood at $187,794,906 and total shareholders’ equity was $22,412,575.

H. Watts Steger, Chairman and Chief Executive Officer of Botetourt Bankshares, Inc., “We are pleased to report continuing strong earnings in the first quarter ending March 31, 2006, following two consecutive years of record annual earnings. The company’s ongoing performance is gratifying. The continued positive earnings trend for 2006 is reflective of steady loan demand, a lower provision for loan and lease losses, and a result of the positive impact of the Federal Open Market Committee’s monetary policy actions.”

Botetourt Bankshares, Inc. is the holding company for Bank of Botetourt, which was chartered in 1899. Bank of Botetourt operates eight full service offices in Botetourt, Rockbridge, and Roanoke counties.

Information in this press release contains “forward-looking statements.” These statements involve risks and uncertainties that could cause actual results to differ materially including, without limitation, the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, the risks of changes in interest rates and the effects of competition. Additional factors that could cause actual results to differ materially are discussed in Botetourt Bankshares, Inc.’s recent filings with the Securities and Exchange Commission, included but not limited to its Annual Report on Form 10-KSB and its other periodic reports.

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Botetourt Bankshares, Inc.

Consolidated Balance Sheets

March 31, 2006 and December 31, 2005

	(Unaudited) March 31, 2006		(Audited) December 31, 2005
Assets
Cash and due from banks	$	6,286,667	$	8,985,579
Interest-bearing deposits with banks		247,876		291,648
Federal funds sold		13,187,000		6,752,000
Investment securities available for sale		29,004,471		27,940,163
Investment securities held to maturity		1,639,800		1,809,776
Restricted equity securities		524,600		474,000
Loans, net of allowance for loan losses of $2,290,668 at March 31, 2006 and $2,271,074 at December 31, 2005		187,794,906		183,352,611
Property and equipment, net		5,714,121		5,784,284
Accrued income		1,369,047		1,222,811
Foreclosed assets		80,000		—
Other assets		1,970,881		1,920,863
Total assets	$	247,819,369	$	238,533,735
Liabilities and stockholders’ equity
Liabilities
Noninterest-bearing deposits	$	33,553,018	$	31,365,352
Interest-bearing deposits		190,591,816		184,477,729
Total deposits		224,144,834		215,843,081
Federal funds purchased		—
Accrued interest payable		588,643		548,317
Other liabilities		673,317		407,292
Total liabilities		225,406,794		216,798,690
Commitments and contingencies				—
Stockholders’ equity
Common stock, $1.00 par value, 2,500,000 shares authorized, 1,240,521 issued and outstanding at March 31, 2006 and 1,240,121 issued and outstanding at December 31, 2005		1,240,521		1,240,121
Additional paid-in capital		1,518,151		1,510,751
Retained earnings		19,615,217		18,960,299
Accumulated other comprehensive income (loss)		38,686		23,874
Total stockholders’ equity		22,412,575		21,735,045
Total liabilities and stockholders’ equity	$	247,819,369	$	238,533,735

Botetourt Bankshares, Inc.

Consolidated Statements of Income

For Three Months Ended March 31, 2006 and 2005(unaudited)

	Three Months Ended March 31,
	2006 (Unaudited)		2005 (Unaudited)
Interest income
Loans and fees on loans	$	3,661,479	$	3,068,824
Federal funds sold		108,878		4,365
Investment securities:
Taxable		187,081		130,604
Exempt from federal income tax		92,798		95,315
Dividend Income		9,228		7,530
Deposits with banks		2,011		1,100
Total interest income		4,061,475		3,307,738
Interest expense
Deposits		1,329,385		870,807
Federal funds purchased		—		16,332
Total interest expense		1,329,385		887,139
Net interest income		2,732,090		2,420,599
Provision for loan losses		75,000		125,000
Net interest income after provision		2,657,090		2,295,599
Non-interest income
Service charges on deposit accounts		131,439		138,212
Net realized gains (losses) on sales of securities		—		7,198
Other income		241,894		267,802
Total non-interest income		373,333		413,212
Non-interest expense
Salaries and employee benefits		1,088,447		931,629
Occupancy and equipment expense		208,385		204,483
Other expense		474,419		505,519
Total non-interest expense		1,771,251		1,641,631
Income before income taxes		1,259,172		1,067,180
Income tax expense		381,032		316,098
Net income	$	878,140	$	751,082
Basic earnings per share	$	0.71	$	0.61
Diluted earnings per share	$	0.71	$	0.61
Basic weighted average shares outstanding		1,240,197		1,235,367
Diluted average shares outstanding		1,242,339		1,236,200