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

EXHIBIT 99

Section 2: EX-99 (PRESS RELEASE)

FOR RELEASE November 9, 2007

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 EARNINGS

BUCHANAN, VIRGINIA.November 9, 2007 — Buchanan-based Botetourt Bankshares, Inc. announced today its consolidated financial results for the quarter ending September 30, 2007. Net income for the third quarter amounted to $835,775. This amount compares to $840,633 for the same period last year, representing a decrease of $4,858 or 0.58%. Both basic and diluted earnings per share decreased $0.01 from $0.68 at September 30, 2006 to $0.67 at September 30, 2007.

Net income for the first nine months of 2007 amounted to $2,560,076, as compared to $2,673,628 for the same nine month period of 2006, a decrease of $113,552, or 4.25%. Basic earnings per share decreased $0.10 from $2.16 at September 30, 2006 to $2.06 at September 30, 2007. Diluted earnings per share decreased $0.10 from $2.15 at September 30, 2006 to $2.05 at June 30, 2007.

At September 30, 2007 total assets amounted to $280,421,953, total deposits were $252,117,986, net loans were $226,870,406 and total stockholders’ equity was $25,549,163.

On October 24, 2007, the Board of Directors of Botetourt Bankshares, Inc., the holding company for Buchanan, VA-based Bank of Botetourt, declared a quarterly dividend payment to $0.20 per share. The cash dividend is payable November 10, 2007 to shareholders of record on October 24, 2007.

H. Watts Steger, Chairman and Chief Executive Officer of Botetourt Bankshares, Inc., “We are pleased with our Company’s earnings performance the for the first nine months of 2007, particularly with regard to the challenging environment which the banking industry is encountering. Although net income has declined slightly as compared to last year due primarily to lower mortgage loan origination fees, lower title insurance commissions, and slightly higher provision for loan losses, the Company’s earnings performance remains well above average among our peer community banks.”

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

September 30, 2007 and December 31, 2006

	(Unaudited) June 30, 2007			(Audited) December 31, 2006
Assets
Cash and due from banks	$	7,223,346		$	8,258,003
Interest-bearing deposits with banks		210,334			163,151
Federal funds sold		10,685,000			—
Investment securities available for sale		21,537,080			24,798,980
Investment securities held to maturity (fair value approximates $1,345,866 at September 30, 2007 and $1,525,353 at December 31, 2006)		1,350,000			1,539,933
Restricted equity securities		505,500			524,600
Loans, net of allowance for loan losses of $2,302,695 at September 30, 2007 and $2,502,122 at December 31, 2006		226,870,406			209,541,312
Property and equipment, net		6,458,748			5,625,914
Accrued income		1,587,034			1,513,122
Foreclosed assets		1,475,000			—
Other assets		2,519,505			2,417,302
Total assets	$	280,421,953		$	254,382,317
Liabilities and stockholders’ equity
Liabilities
Noninterest-bearing deposits	$	35,769,770		$	33,768,568
Interest-bearing deposits		216,348,216			193,460,839
Total deposits		252,117,986			227,229,407
Federal funds purchased		—			1,341,000
Accrued interest payable		1,249,142			943,449
Other liabilities		1,505,662			1,245,669
Total liabilities		254,872,790			230,759,525
Commitments and contingencies		—			—
Stockholders’ equity
Common stock, $1.00 par value, 2,500,000 shares authorized, 1,242,850 issued and outstanding at September 30, 2007 and 1,241,750 issued and outstanding at December 31, 2006		1,242,850			1,241,750
Additional paid-in capital		1,568,684			1,546,984
Retained earnings		23,358,700			21,544,114
Accumulated other comprehensive (loss)		(621,071	)		(710,056	)
Total stockholders’ equity		25,549,163			23,622,792
Total liabilities and stockholders’ equity	$	280,421,953		$	254,382,317

Botetourt Bankshares, Inc.

Consolidated Statements of Income

For the Nine and Three Months Ended September 30, 2007 and 2006(unaudited)

	Nine Months Ended				Three Months Ended
	September 30,				September 30,
	2007		2006		2007		2006
Interest income
Loans and fees on loans	$	13,003,632	$	11,267,219	$	4,336,389	$	3,898,662
Federal funds sold		298,406		337,588		148,094		79,108
Investment securities:
Taxable		479,993		596,575		160,550		208,071
Exempt from federal income tax		261,196		279,003		83,854		92,893
Dividend income		35,640		30,677		12,225		11,360
Deposits with banks		7,427		9,696		2,725		3,443
Total interest income		14,086,294		12,520,758		4,743,837		4,293,537
Interest expense
Deposits		5,951,602		4,391,710		2,104,619		1,567,308
Federal funds purchased		7,224		7,322		—		7,322
Total interest expense		5,958,826		4,399,032		2,104,619		1,574,630
Net interest income		8,127,468		8,121,726		2,639,218		2,718,907
Provision for loan losses		250,000		225,000		100,000		75,000
Net interest income after provision		7,877,468		7,896,726		2,539,218		2,643,907
Non-interest income
Service charges on deposit accounts		473,912		439,179		142,001		159,781
Mortgage origination fees		179,082		237,562		57,033		93,667
Other income		622,849		687,800		213,247		202,172
Total non-interest income		1,275,843		1,364,541		412,281		455,620
Non-interest expense
Salaries and employee benefits		3,126,640		3,166,189		970,301		1,024,823
Occupancy and equipment expense		663,578		682,562		210,870		247,556
Foreclosed assets, net		35,988		711		4,444		—
Other expense		1,602,459		1,532,917		536,500		603,437
Total non-interest expense		5,428,665		5,382,379		1,722,115		1,875,816
Income before income taxes		3,724,646		3,878,888		1,229,384		1,223,711
Income tax expense		1,164,570		1,205,260		393,609		383,078
Net income	$	2,560,076	$	2,673,628	$	835,775	$	840,633
Basic earnings per share	$	2.06	$	2.16	$	0.67	$	0.68
Diluted earnings per share	$	2.05	$	2.15	$	0.67	$	0.68
Dividends declared per share	$	0.60	$	0.54	$	0.20	$	0.18
Basic weighted average shares outstanding		1,242,592		1,240,565		1,242,850		1,240,900
Diluted average shares outstanding		1,245,843		1,243,942		1,246,057		1,243,208