Beverly National 8-K Results of Operations and Financial Condition

Exhibit 99.1

Beverly National Corporation Press Release

FOR IMMEDIATE RELEASE	Contact:	Michael O. Gilles
		978-720-1226

BEVERLY NATIONAL CORPORATION

ANNOUNCES RESULTS FOR THE

QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2008

(Beverly, MA) October 29, 2008—Don Fournier, President and Chief Executive Officer of Beverly National Corporation (AMEX “BNV”) (the “Company”) and its subsidiary, Beverly National Bank (the “Bank”), announced the Company’s results for the quarter and nine months ended September 30, 2008.

The Company reported a net loss for the quarter ended September 30, 2008 of $2.7 million, or a basic and fully diluted loss of $1.00 per share, compared to net income of $921,000, or basic and fully diluted earnings of $0.34 per share, for the same quarter last year. Net income for the quarter was impacted by charges, pre-tax, of $3,724,000 related to the write-down of the Company’s investment in Fannie Mae and Freddie Mac preferred stocks as other than temporarily impaired. The Company also reported a net loss for the nine months ended September 30, 2008 of $748,000, or a basic and fully diluted loss of $0.28 per share, compared to net income of $2.6 million, or basic and fully diluted earnings of $0.95 and $0.94 per share, respectively, for the same period last year.

No tax benefit was recognized on these charges as changes signed into law that would allow financial institutions to treat these as ordinary losses was not signed and made effective until October 3, 2008. Therefore, a tax benefit of approximately $1.5 million was not recognized in the quarter ended September 30, 2008, and will be recognized in the quarter ending December 31, 2008. This tax benefit, had it been recognized in the same quarter as the losses were taken, would have added approximately $0.57 to the Company’s book value and reduced the third quarter loss by $0.57 per share.

Excluding these charges, the Company’s core net income for the quarter would have been $1.05 million, or basic and fully diluted earnings per share of $0.39. The adjusted results for the quarter would represent a 14.0% increase in net income and a 17.6% increase in earnings per share, compared to results for the same quarter last year. Net income for the nine months ended September 30, 2008, excluding the charges, would have been $2.98 million, with basic and fully diluted earnings per share of $1.12. These results would represent a 14.0% increase in net income and an 18.1% increase in earnings per share, compared to the same period last year.

The primary reason for the increase in the core net income and earnings per share for the periods presented, before the charges, is the increase in net interest and dividend income after the provision for loan losses, which increased $342,000, or 8.8%, and $761,000, or 6.6%, for the three and nine months ended September 30, 2008 from the same periods last year. The improvement is a result of the growth in earning assets, the reduction in cost of funds and the replacement of maturing certificates of deposit and FHLB advances at lower interest rates. The net interest margin improved to 3.96% for the quarter ended September 30, 2008, compared to 3.66% for the same period last year.

President Fournier stated, “To say that the current environment for the banking industry is challenging would be an understatement. During the calendar quarter ended September 30, 2008, we faced new challenges and weathered uncertain economic conditions, including action by the Federal government to place Fannie Mae and Freddie Mac in a conservatorship which resulted in the write down of our investments in Fannie Mae and Freddie Mac preferred securities. Excluding the effects of these charges, our core net income and earnings per share increased. In addition, the growth of our net interest margin, the main driver behind the improved core earnings, has been helped by the drop in interest rates by the Federal Reserve and the continued growth of the Company’s earning assets. While we are pleased to report this performance in this challenging and competitive environment, we remain focused on ways to continue to improve our earnings.”

The Company increased its provision for loan losses to $225,000 and $588,000 for the three and nine months ended September 30, 2008, respectively, compared to $75,000 and $325,000 for the same periods last year. The increase was driven by growth in the loan portfolio, uncertain economic conditions, concerns over further potential reduction in real estate values and the impact a prolonged recession or economic downturn would have on the Company’s commercial and small business loan portfolios. Despite these

difficult economic times, the Company’s asset quality remains strong; with non-performing loans of only $255,000, or 0.08% of total loans, at September 30, 2008, compared to non-performing loans of $259,000, or 0.08% of total loans, at December 31, 2007. The allowance for loan losses totaled 1.22% of total loans at September 30, 2008, an increase from 1.12% at December 31, 2007. During the first nine months of 2008, the Bank charged off a total of $149,000 in small business and consumer loans. President Fournier stated, “We have been able to maintain our asset quality while many in the banking industry are facing continued write-downs and significant increases in loan loss provisions.”

Total assets as of September 30, 2008 were $484.7 million, compared to $472.8 million at December 31, 2007, an increase of $11.9 million, or 2.5%. Loans, net of the allowance for loan losses, increased $13.8 million, or 4.3% from $318.4 million at December 31, 2007. Investments in available-for-sale securities decreased $4.4 million, or 3.8% from $114.8 million at December 31, 2007. Deposits increased $7.0 million, or 2.0%, and Federal Home Loan Bank advances increased $10.7 million, or 18.0% from $59.7 million at December 31, 2007. The book value of the Company’s stock has decreased slightly as a result of the OTTI write-down and the increase in unrealized losses on available-for-sale securities. President Fournier stated, “We have been able to maintain steady asset growth over the last nine months, primarily using increases in our deposit levels to fund expansion of the loan portfolio. We remain focused on business development, improvement in operating efficiencies, identifying sound growth opportunities and closely monitoring our strategic focus in the ever-changing economic environment in which we operate.” The Company and the Bank met all of the regulatory capital requirements of a well capitalized institution at September 30, 2008.

BEVERLY NATIONAL CORPORATION AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

	September 30, 2008			December 31, 2007
	(unaudited)
ASSETS
Cash and due from banks	$	10,482		$	10,752
Federal funds sold		3,633			3,706
Interest-bearing demand deposits with other banks		758			115
Short-term investments		363			922
Cash and cash equivalents		15,236			15,495
Investments in available-for-sale securities (at fair value)		110,394			114,793
Federal Home Loan Bank stock, at cost		4,086			3,452
Federal Reserve Bank stock, at cost		553			553
Loans, net of the allowance for loan losses of $4,112 and $3,614, respectively		332,137			318,356
Premises and equipment		7,773			7,321
Bank owned life insurance		6,876			6,661
Accrued interest receivable		1,898			1,805
Other assets		5,758			4,355
Total assets	$	484,711		$	472,791
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Noninterest-bearing	$	72,216		$	72,425
Interest-bearing		285,121			277,885
Total deposits		357,337			350,310
Federal Home Loan Bank advances		70,326			59,616
Securities sold under agreements to repurchase		10,763			11,638
Other liabilities		5,006			5,462
Total liabilities		443,432			427,026
Stockholders’ equity:
Preferred stock, $1.00 par value per share; 300,000 shares authorized; issued and outstanding none		—			—
Common stock, $2.50 par value per share; 5,000,000 shares authorized; issued 2,912,437 shares as of September 30, 2008 and 2,890,690 shares as of December 31, 2007; outstanding, 2,663,545 shares as of September 30, 2008 and 2,641,798 shares as of December 31, 2007		7,281			7,227
Paid-in capital		22,913			22,586
Retained earnings		18,411			21,050
Treasury stock, at cost (248,892 shares as of September 30, 2008 and December 31, 2007)		(4,370	)		(4,370	)
Unearned shares, Restricted Stock Plan (15,755 shares as of September 30, 2008 and 9,005 shares as of December 31, 2007)		(323	)		(197	)
Accumulated other comprehensive loss		(2,633	)		(531	)
Total stockholders’ equity		41,279			45,765
Total liabilities and stockholders’ equity	$	484,711		$	472,791
Book value per share	$	15.50		$	17.32

The accompanying notes are an integral part of these condensed consolidated financial statements.

BEVERLY NATIONAL CORPORATION AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share and per share data)

(unaudited)

	Three Months Ended					Nine Months Ended
	September 30, 2008			September 30, 2007		September 30, 2008			September 30, 2007
Interest and dividend income:
Interest and fees on loans	$	5,026		$	5,272	$	15,218		$	15,440
Interest on debt securities:
Taxable		1,147			1,160		3,442			3,426
Tax-exempt		120			120		361			339
Dividends on marketable equity securities		285			162		878			477
Other interest		64			131		203			349
Total interest and dividend income		6,642			6,845		20,102			20,031
Interest expense:
Interest on deposits		1,498			2,119		5,035			5,797
Interest on other borrowed funds		710			784		2,138			2,329
Total interest expense		2,208			2,903		7,173			8,126
Net interest and dividend income		4,434			3,942		12,929			11,905
Provision for loan losses		225			75		588			325
Net interest and dividend income after provision for loan losses		4,209			3,867		12,341			11,580
Noninterest (charge) income:
Income from fiduciary activities		438			486		1,379			1,427
Fees from sale of non-deposit products		79			60		219			190
Service charges on deposit accounts		166			157		485			452
Other deposit fees		223			198		661			700
Write-down of available-for-sale securities		(3,724	)		—		(3,724	)		—
Gain on sales of loans, net		6			—		6			6
Income on cash surrender value of life insurance		77			54		225			165
Other income		142			304		531			760
Total noninterest (charge) income		(2,593	)		1,259		(218	)		3,700
Noninterest expense:
Salaries and employee benefits		2,235			2,185		6,696			6,460
Director fees		76			68		219			233
Occupancy expense		465			389		1,396			1,164
Equipment expense		213			216		690			638
Data processing fees		298			290		897			854
Marketing and public relations		100			102		320			344
Professional fees		155			186		486			752
Other expense		356			412		1,145			1,249
Total noninterest expense		3,898			3,848		11,849			11,694
(Loss) income before income taxes		(2,282	)		1,278		274			3,586
Income taxes		392			357		1,022			976
Net (loss) income	$	(2,674	)	$	921	$	(748	)	$	2,610
Comprehensive (loss) income	$	(3,576	)	$	1,760	$	(2,850	)	$	2,513
(Loss) earnings per share:
Weighted average shares outstanding		2,663,545			2,748,336		2,660,035			2,755,340
Weighted average diluted shares outstanding		2,666,669			2,764,357		2,663,586			2,770,712
(Loss) earnings per common share	$	(1.00	)	$	0.34	$	(0.28	)	$	0.95
(Loss) earnings per common share, assuming dilution	$	(1.00	)	$	0.33	$	(0.28	)	$	0.94
Dividends per share	$	0.20		$	0.20	$	0.60		$	0.60

The accompanying notes are an integral part of these condensed consolidated financial statements.

BEVERLY NATIONAL CORPORATION AND SUBSIDIARY

SELECTED FINANCIAL INFORMATION

(In thousands, except share and per share data)

	September 30, 2008			December 31, 2007			September 30, 2007
	(unaudited)						(unaudited)
Balance sheet data:
Total assets	$	484,711		$	472,791		$	471,018
Total loans, net of allowance		332,137			318,356			317,374
Allowance for loan losses		4,112			3,614			3,554
Investments (1)		115,033			118,798			118,649
Deposits		357,337			350,310			358,294
Stockholders’ equity		41,279			45,765			46,284
Book value (at end of period)	$	15.50		$	17.32		$	17.13
Asset quality ratios:
Non-performing loans(2)	$	255		$	259		$	26
Non-performing loans to total loans		0.08	%		0.08	%		0.01	%
Non-performing assets to total assets (3)		0.05	%		0.05	%		0.01	%
Allowance for loan losses as a percentage of:
Non-performing loans		1,613	%		1,395	%		13,669	%
Total loans (at end of period)		1.22	%		1.12	%		1.11	%

	Three Months Ended						Nine Months Ended
	September 30, 2008			September 30, 2007			September 30, 2008			September 30, 2007
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Earnings data:
Interest and dividend income	$	6,642		$	6,845		$	20,102		$	20,031
Interest expense		2,208			2,903			7,173			8,126
Net interest and dividend income		4,434			3,942			12,929			11,905
Provision for loan losses		225			75			588			325
Noninterest (charge) income		(2,593	)		1,259			(218	)		3,700
Noninterest expense		3,898			3,848			11,849			11,694
(Loss) income before income taxes		(2,282	)		1,278			274			3,586
Income taxes		392			357			1,022			976
Net (loss) income	$	(2,674	)	$	921		$	(748	)	$	2,610
Per share data:
Net (loss) income-basic	$	(1.00	)	$	0.34		$	(0.28	)	$	0.95
Net (loss) income-diluted		(1.00	)		0.33			(0.28	)		0.94
Cash dividends	$	0.20		$	0.20		$	0.60		$	0.60
Weighted average shares:
Basic		2,663,545			2,748,336			2,660,035			2,755,340
Diluted		2,666,669			2,764,357			2,663,586			2,770,712
Financial ratios:
Return on average assets		-2.19	%		0.78	%		-0.21	%		0.75	%
Return on average equity		-24.28	%		7.94	%		-2.20	%		7.47	%
Net interest margin		3.96	%		3.66	%		3.91	%		3.78	%
Results before OTTI write-down:
Net income	$	1,050					$	2,976
Net income-basic		0.39						1.12
Net income-diluted	$	0.39					$	1.12
Return on average assets		0.86	%					0.81	%
Return on average equity		9.54	%					9.01	%

(1) Includes available-for-sale securities and stock in the Federal Reserve Bank and the Federal Home Loan Bank of Boston.

(2) Non-performing loans are defined as nonaccrual loans and loans that are past due ninety days or more but still accruing interest.

(3) Non-performing assets are defined as non-performing loans and other real estate owned.

* Statements contained in this news release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and expectations of management as well as the assumptions made using information currently available to management. Since these statements reflect the views of management concerning future events, these statements involve risks, uncertainties and assumptions, including, among others: changes in market interest rates and general and regional economic conditions; changes in government regulations; changes in accounting principles; and the quality or composition of the loan and investment portfolios and other factors that may be described in the Company’s quarterly reports of Form 10-Q and its annual report on Form 10-K, each filed with the Securities and Exchange Commission, which are available at the Securities and Exchange Commission’s internet website (www.sec.gov) and to which reference is hereby made. Therefore, actual future results may differ significantly from results discussed in the forward-looking statements.

Beverly National Bank, a subsidiary of Beverly National Corporation, is headquartered in Beverly, MA, and operates full-service branch offices in Downtown Beverly, Cummings Center – Beverly, North Beverly, Danvers, Hamilton, Manchester-by-the-Sea, Salem and Topsfield. The Bank offers a full array of consumer products and services including full electronic banking, financial planning, trust and investment services and business specialties. Incorporated in 1802, Beverly National Bank is the oldest community bank in the United States. The Bank’s deposits are insured by the FDIC in accordance with the Federal Deposit Insurance Act.