Botetourt Bankshares (BORT) 8-K Botetourt Bankshares, Inc Announces Annual Earnings for 2011

Exhibit 99

FOR RELEASE March 23, 2012

BOTETOURT BANKSHARES, Inc.

19747 Main Street

Buchanan, Virginia 24066

For Further Information Contact:

Michelle A. Crook, Chief Financial Officer

(540) 591-5013

BOTETOURT BANKSHARES, INC ANNOUNCES ANNUAL EARNINGS FOR 2011

BUCHANAN, VIRGINIA.March 23, 2012 — Buchanan-based Botetourt Bankshares, Inc. announced today its consolidated financial results for the quarter and year-to-date periods ending December 31, 2011. The net loss for the fourth quarter amounted to $(519,780) or $(0.41) per share. This amount compares to a net loss amounting to $(330,179), or $(0.26) per share, for the same period last year.

The net loss for the fiscal year 2011 amounted to $(2,922,048). This amount compares to $(117,417) for the same period of 2010. Both basic and diluted earnings per share were $(2.33) at December 31, 2011 compared to $(0.09) at December 31, 2010.

At December 31, 2011 total assets amounted to $306,618,031 and total deposits stood at $280,823,643.

H. Watts Steger, III, Chairman and Chief Executive Officer of Botetourt Bankshares, Inc., said “The Company’s performance in 2011 was below our own expectations. We were adversely impacted by a higher provision for loan losses as we responded to loan delinquencies, impaired loans, and loss exposure resulting from the decline in real estate values collateralizing specific loans. The anemic economic recovery related to our regional housing market’s decreasing collateral values, slow sales, foreclosures, and bankruptcies have impacted the ability of some borrowers to service debt. Our Company’s 112-year history and “well capitalized” position enabled us to withstand the financial impact of 2011.”

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

December 31, 2011 and December 31, 2010

	(Audited) 2011			(Audited) 2010
Assets
Cash and due from banks	$	7,376,113		$	6,232,356
Interest-bearing deposits with banks		19,235,517			12,190,985
Federal funds sold		680,000			1,728,000
Total cash and cash equivalents		27,291,630			20,151,341
Time deposits with banks		250,000			500,000
Investment securities available for sale		15,622,899			15,042,933
Investment securities held to maturity (fair value approximates $100,000 in 2010)		—			100,000
Restricted equity securities		536,000			581,000
Loans, net of allowance for loan losses of $5,994,825 in 2011 and $5,147,790 in 2010		243,854,200			257,557,882
Property and equipment, net		7,344,643			7,661,323
Accrued income		1,039,676			1,338,662
Foreclosed assets		5,251,939			1,850,665
Other assets		5,427,044			4,700,925
Total assets	$	306,618,031		$	309,484,731
Liabilities and Stockholders’ Equity
Liabilities
Noninterest-bearing deposits	$	36,359,242		$	33,006,463
Interest-bearing deposits		244,464,401			248,041,302
Total deposits		280,823,643			281,047,765
Accrued interest payable		451,663			520,373
Subordinated debt		300,000			—
Other liabilities		1,420,074			2,051,912
Total liabilities		282,995,380			283,620,050
Commitments and contingencies		—			—
Stockholders’ equity
Common stock, $1.00 par value; 2,500,000 shares authorized; 1,253,542 and 1,250,375 shares issued and outstanding in 2011 and 2010, respectively		1,253,542			1,250,375
Additional paid-in capital		1,714,975			1,687,446
Retained earnings		20,720,004			23,692,067
Accumulated other comprehensive loss		(65,870	)		(765,207	)
Total stockholders’ equity		23,622,651			25,864,681
Total liabilities and stockholders’ equity	$	306,618,031		$	309,484,731

Botetourt Bankshares, Inc.

Consolidated Statements of Operations

For the Year Ended December 31, 2011 and 2010

	(Audited) 2010			(Audited) 2009
Interest income
Loans and fees on loans	$	14,565,904		$	15,613,824
Federal funds sold		1,478			8,641
Investment securities:
Taxable		207,428			313,561
Exempt from federal income tax		209,446			240,750
Dividend income		4,926			2,143
Deposits with banks		42,999			23,124
Total interest income		15,032,181			16,202,043
Interest expense
Deposits		4,117,633			5,163,198
Long-term debt		5,095			—
Federal funds purchased		33			—
Total interest expense		4,122,761			5,163,198
Net interest income		10,909,420			11,038,845
Provision for loan losses		7,485,000			4,045,000
Net interest income after provision for loan losses		3,424,420			6,993,845
Noninterest income
Service charges on deposit accounts		1,174,541			1,094,093
Other service charges and fees		241,727			213,254
Mortgage origination fees		165,373			201,505
Commissions on title services		39,991			48,996
Net realized gains on sale of AFS securities		2,650			2,675
Other income		348,617			367,285
Total noninterest income		1,972,899			1,927,808
Noninterest expense
Salaries and employee benefits		4,639,938			4,877,701
Occupancy		525,981			535,881
Equipment		524,559			653,576
Foreclosed assets, net		1,182,514			379,020
Advertising and marketing		139,485			147,745
Outside services		397,714			352,427
FDIC insurance premiums and assessment		410,986			485,688
ATM and debit card		306,373			278,712
Franchise tax		189,319			193,918
Collection		287,950			124,974
Other operating expenses		1,349,102			1,226,674
Total noninterest expense		9,953,921			9,256,316
Loss before income taxes		(4,556,602	)		(334,663	)
Income tax benefit		(1,634,554	)		(217,246	)
Net loss	$	(2,922,048	)	$	(117,417	)
Basic loss per share	$	(2.33	)	$	(0.09	)
Diluted loss per share	$	(2.33	)	$	(0.09	)
Basic weighted average shares outstanding		1,252,128			1,248,142
Diluted weighted average shares outstanding		1,252,128			1,248,142