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

Exhibit 99

Section 2: EX-99 (PRESS RELEASE)

FOR RELEASE August 5, 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.August 5, 2009 — Buchanan-based Botetourt Bankshares, Inc. announced today its consolidated financial results for the quarter ending June 30, 2009. Net income for the three months ended June 30, 2009 was $136,462 compared to $566,890 for the same period last year, representing a decrease of $430,428 or 75.93%. Both basic and diluted earnings per share decreased $0.35 from $0.46 at June 30, 2008 to $0.11 at June 30, 2009.

Net income for the first six months of 2009 amounted to 477,790. This amount compares to $1,237,694, for the same period of 2008, representing a decrease of $759,904 or 61.40%. Basic earnings per share decreased $0.62 from $1.00 at June 30, 2008 to $0.38 at June 30, 2009. Diluted earnings per share decreased $0.61 from $0.99 at June 30, 2008 to $0.38 at June 30, 2009.

At June 30, 2009 total assets amounted to $305,627,257, total deposits were $276,752,659, net loans were $258,226,920 and total stockholders’ equity was $25,671,748.

The Board of Directors of Botetourt Bankshares, Inc., the holding company for Buchanan, VA-based Bank of Botetourt, declared a quarterly dividend payment to $0.14 per share. The cash dividend is payable August 10, 2009 to stockholders of record on July 22, 2009.

H. Watts Steger, Chairman and Chief Executive Officer of Botetourt Bankshares, Inc., “Our Company’s earnings remain below our expectations due to continued stress on the bank’s net interest margin as well as due to the general decline in the economy. While the financial services industry is currently facing many challenges, Botetourt Bankshares, Inc. continues to be profitable, financially strong and well capitalized, as we have been for 109 years.”

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

June 30, 2009 and December 31, 2008

	(Unaudited) June 30, 2008			(Audited) December 31, 2007
Assets
Cash and due from banks	$	8,406,229		$	8,621,683
Interest-bearing deposits with banks		546,505			200,951
Federal funds sold		6,183,000			—
Investment securities available for sale		17,260,965			16,618,498
Investment securities held to maturity (fair value approximates $403,000 at June 30, 2009 and $1,342,387 at December 31, 2008)		400,000			1,350,000
Restricted equity securities		581,000			550,900
Loans, net of allowance for loan losses of $3,609,694 at June 30, 2009 and $3,780,725 at December 31, 2008		258,226,920			252,940,323
Property and equipment, net		8,084,172			8,301,847
Accrued income		1,433,487			1,454,202
Foreclosed assets		1,300,766			1,363,016
Other assets		3,204,213			2,990,591
Total assets	$	305,627,257		$	294,392,011
Liabilities and stockholders’ equity
Liabilities
Noninterest-bearing deposits	$	34,818,748		$	33,815,283
Interest-bearing deposits		241,933,911			230,727,185
Total deposits		276,752,659			264,542,468
Federal funds purchased		—			1,113,000
Accrued interest payable		799,076			814,621
Other liabilities		2,403,774			2,330,158
Total liabilities		279,955,509			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
June 30, 2009 and December 31, 2008		1,245,300			1,245,300
Additional paid-in capital		1,618,584			1,618,584
Retained earnings		24,196,378			24,067,271
Accumulated other comprehensive loss		(1,388,514	)		(1,339,391	)
Total stockholders’ equity		25,671,748			25,591,764
Total liabilities and stockholders’ equity	$	305,627,257		$	294,392,011

Botetourt Bankshares, Inc.

Consolidated Statements of Income

For the Six and Three Months Ended June 30, 2009 and 2008(unaudited)

	Six Months Ended June 30,				Three Months Ended June 30,
	2009		2008		2009		2008
Interest income
Loans and fees on loans	$	8,009,753	$	8,527,795	$	3,943,087	$	4,187,623
Federal funds sold		2,769		43,811		1,770		23,867
Investment securities:
Taxable		210,325		232,386		114,783		117,435
Exempt from federal income tax		146,668		172,567		69,841		85,514
Dividend income		656		22,309		84		10,010
Deposits with banks		1,492		3,270		1,378		1,142
Total interest income		8,371,663		9,002,138		4,130,943		4,425,591
Interest expense
Deposits		3,465,194		4,032,281		1,733,714		1,978,741
Federal funds purchased		1,495		18,782		3		386
Total interest expense		3,466,689		4,051,063		1,733,717		1,979,127
Net interest income		4,904,974		4,951,075		2,397,226		2,446,464
Provision for loan losses		785,000		145,000		310,000		100,000
Net interest income after provision for loan losses		4,119,974		4,806,075		2,087,226		2,346,464
Noninterest income
Service charges on deposit accounts		393,004		294,278		196,459		154,825
Mortgage origination fees		114,688		108,931		57,317		34,014
Net realized gain on sale of AFS securities		8,005		—		8,000		—
Other income		489,638		413,866		246,936		189,451
Total noninterest income		1,005,335		817,075		508,712		378,290
Noninterest expense
Salaries and employee benefits		2,267,271		2,072,323		1,109,491		996,682
Occupancy and equipment expense		507,749		513,901		264,062		259,339
Foreclosed assets, net		83,283		36,538		10,507		27,147
Other expense		1,618,434		1,218,095		1,040,317		628,324
Total noninterest expense		4,476,737		3,840,857		2,424,377		1,911,492
Income before income taxes		648,572		1,782,293		171,561		813,262
Income tax expense		170,782		544,599		35,099		246,372
Net income	$	477,790	$	1,237,694	$	136,462	$	566,890
Basic earnings per share	$	0.38	$	1.00	$	0.11	$	0.46
Diluted earnings per share	$	0.38	$	0.99	$	0.11	$	0.46
Dividends declared per share	$	0.28	$	0.42	$	0.14	$	0.21
Basic weighted average shares outstanding		1,245,300		1,244,336		1,245,300		1,244,925
Diluted weighted average shares outstanding		1,245,300		1,245,779		1,245,300		1,246,257