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

Exhibit 99

Section 2: EX-99 (PRESS RELEASE)

FOR RELEASE May 8, 2009

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.May 8, 2009 — Buchanan-based Botetourt Bankshares, Inc. announced today its consolidated financial results for the quarter ending March 31, 2009. Net income for the first quarter amounted to $341,328. This amount compares to $670,804 for the same period last year, representing a decrease of $329,476 or 49.12%. Both basic and diluted earnings per share decreased $0.27 from $0.54 at March 31, 2008 to $0.27 at March 31, 2009.

At March 31, 2009 total assets amounted to $302,350,490, total deposits were $273,601,360, net loans were $257,766,837 and total stockholders’ equity was $25,848,995.

H. Watts Steger, Chairman and Chief Executive Officer of Botetourt Bankshares, Inc., states “Our Company’s earnings remain below our expectations, due primarily to the extended period of historically low interest rates, which has adversely affected our net interest margin, and also due to a continued loan loss provision expense, which is in response to the weakness in the economy. Although we are experiencing credit quality issues due to the current economic environment, the Company’s balance sheet, liquidity and capital levels remain strong.”

Botetourt Bankshares, Inc. is the holding company for Bank of Botetourt, which was chartered in 1899. Bank of Botetourt operates ten full service offices in Botetourt, Rockbridge, Roanoke and Franklin 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-K and its other periodic reports.

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Botetourt Bankshares, Inc.

Consolidated Balance Sheets

March 31, 2009 and December 31, 2008

	(Unaudited) March 31, 2009			(Audited) December 31, 2008
Assets
Cash and due from banks	$	8,847,187		$	8,621,683
Interest-bearing deposits with banks		420,873			200,951
Federal funds sold		3,456,000			—
Investment securities available for sale		16,862,854			16,618,498
Investment securities held to maturity (fair value approximates $607,006 at March 31, 2009 and $1,342,387 at December 31, 2008)		600,000			1,350,000
Restricted equity securities		581,000			550,900
Loans, net of allowance for loan losses of $3,938,564 at March 31, 2009 and $3,780,725 at December 31, 2008		257,766,837			252,940,323
Property and equipment, net		8,207,298			8,301,847
Accrued income		1,504,182			1,454,202
Foreclosed assets		1,300,766			1,363,016
Other assets		2,803,493			2,990,591
Total assets	$	302,350,490		$	294,392,011
Liabilities and stockholders’ equity
Liabilities
Noninterest-bearing deposits	$	32,432,151		$	33,815,283
Interest-bearing deposits		241,169,209			230,727,185
Total deposits		273,601,360			264,542,468
Federal funds purchased		—			1,113,000
Accrued interest payable		868,973			814,621
Other liabilities		2,031,162			2,330,158
Total liabilities		276,501,495			268,800,247
Commitments and contingencies		—			—
Stockholders’ equity
Common stock, $1.00 par value, 2,500,000 shares authorized, 1,245,300 issued and outstanding at March 31, 2009 and December 31, 2008		1,245,300			1,245,300
Additional paid-in capital		1,618,584			1,618,584
Retained earnings		24,234,258			24,067,271
Accumulated other comprehensive loss		(1,249,147	)		(1,339,391	)
Total stockholders’ equity		25,848,995			25,591,764
Total liabilities and stockholders’ equity	$	302,350,490		$	294,392,011

Botetourt Bankshares, Inc.

Consolidated Statements of Operations

For Three Months Ended March 31, 2009 and 2008(unaudited)

	Three Months Ended March 31,
	2009		2008
	(Unaudited)		(Unaudited)
Interest income
Loans and fees on loans	$	4,066,666	$	4,340,172
Federal funds sold		999		19,944
Investment securities:
Taxable		95,542		114,951
Exempt from federal income tax		76,827		87,053
Dividend income		572		12,299
Deposits with banks		114		2,128
Total interest income		4,240,720		4,576,547
Interest expense
Deposits		1,731,480		2,053,540
Federal funds purchased		1,492		18,396
Total interest expense		1,732,972		2,071,936
Net interest income		2,507,748		2,504,611
Provision for loan losses		475,000		45,000
Net interest income after provision for loan losses		2,032,748		2,459,611
Noninterest income
Service charges on deposit accounts		196,545		139,453
Mortgage origination fees		57,371		74,917
Other income		242,702		224,415
Total noninterest income		496,618		438,785
Noninterest expense
Salaries and employee benefits		1,157,780		1,075,641
Occupancy and equipment expense		243,687		254,562
Foreclosed assets, net		72,776		9,391
Other expense		578,112		589,771
Total noninterest expense		2,052,355		1,929,365
Income before income taxes		477,011		969,031
Income tax expense		135,683		298,227
Net income	$	341,328	$	670,804
Basic earnings per share	$	0.27	$	0.54
Diluted earnings per share	$	0.27	$	0.54
Dividends declared per share	$	0.14	$	0.21
Basic weighted average shares outstanding		1,245,300		1,243,746
Diluted weighted average shares outstanding		1,245,300		1,245,293