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 NET INCOME FOR THE QUARTER AND SIX MONTHS ENDED JUNE 30, 2009

(Beverly, MA) July 23, 2009—Don Fournier, President and Chief Executive Officer of Beverly National Corporation (NYSE Amex: “BNV”) (the “Company”) and its subsidiary, Beverly National Bank (the “Bank”), announced the Company’s results for the quarter and six months ended June 30, 2009.

The Company reported net income for the quarter ended June 30, 2009 of $666,000, or basic and fully diluted earnings of $0.25 per share, compared to net income of $1.0 million, or basic and fully diluted earnings of $0.38 per share, for the same quarter last year. Net income for the quarter was impacted by pre-tax charges of $443,000 for transaction-related expenses and the FDIC’s special assessment, which was applicable to all FDIC insured institutions. During the quarter, the Company evaluated several potential affiliation transactions and on June 16, 2009 the Company entered into an Agreement and Plan of Merger which provides for the proposed merger of the Company with and into Danvers Bancorp, Inc. Consummation of the merger transaction is subject to a number of customary conditions including receipt of all necessary regulatory and shareholder approvals. Aggregate transaction related expenses for the above matters for the quarter totaled $217,000.

The Company also reported net income for the six months ended June 30, 2009 of $1.6 million, or basic and fully diluted earnings of $0.60 per share, compared to net income of $1.9 million, or basic and fully diluted earnings of $0.72 per share, for the same period last year.

The periods presented reveal an increase in net interest and dividend income after the provision for loan losses, a reduction in noninterest income and a higher level of noninterest expense. The slight improvement in net interest and dividend income after the provision for loan losses is primarily a result of the reduction in cost of funds, spurred by lower interest rates than in the comparable periods last year. This decline outweighed the lower yields on the Bank’s interest-earning assets, as the Bank’s liabilities were set to reprice in a more accelerated manner than its assets. The net interest margin for the three and six months ended June 30, 2009 was 3.99% and 4.16%, respectively, compared to 3.97% and 3.88%, respectively, for the same periods last year.

Noninterest income decreased for the three and six months ended June 30, 2009 as compared to the same periods last year, as fees collected on deposit and loan services declined. Income from wealth management services and the sale of non-deposit products also declined, as they were impacted by the current economic environment and a decline in the market value of assets under management. Noninterest expenses increased, primarily a result of an industry-wide increase in FDIC insurance assessments, which rose from $10,000 and $20,000, respectively, for the three and six months ended June 30, 2008 to $376,000 and $511,000, respectively, for the three and six months ended June 30, 2009. The current year amounts include the June 30, 2009 special assessment, a charge to the Bank of an estimated $226,000. It is generally anticipated that the FDIC regular assessment will continue at increased rates due to significant decreases in the reserves of the FDIC’s Deposit Insurance Fund and that another special assessment charge may be necessary later in 2009.

President Fournier stated, “While we find ourselves in the midst of an incredibly challenging operating environment for a financial institution, we are proud to be reporting strong core operating results for the quarter and six months ended June 30, 2009. During the periods presented, the banking industry faced challenges brought on by increasing unemployment, a recessionary economy, rising levels of loan delinquencies, a growing number of foreclosures and additional asset write-offs by many banks across the country. I am pleased to report that despite such challenges, the Bank maintained strong loan asset quality and remains a strong community bank committed to providing commercial and consumer credit. We remain focused on maintaining our core earnings base and strong asset quality in 2009.”

The Company made provisions for loan losses during the three and six months ended June 30, 2009 of $150,000 and $375,000, respectively, compared to $235,000 and $363,000, respectively, for the same periods last year. The level of provision in 2009 has been driven by the decrease in the size of the loan portfolio and the resulting increase in the coverage ratio. In addition, the quality of the loan portfolio has remained strong despite challenging economic conditions and concerns over potential reduction in real estate collateral values. Non-performing loans totaled $163,000, or 0.05%, of total loans at June 30, 2009, compared to non-performing loans of $233,000, or 0.07%, of total loans at June 30, 2008. The allowance for loan losses totaled $4.5 million, or 1.4%, of total loans at June 30, 2009, an increase from 1.2% at December 31, 2008. President Fournier stated, “Our discipline and adherence to sound underwriting standards enabled our asset quality to remain strong while many in the banking industry are facing write-downs and charge-offs. Nonetheless, in the current economic environment it is prudent to continue to build loan loss reserves, even if at levels less than recent prior periods.”

Total assets as of June 30, 2009 amounted to $497.7 million, an increase of $12.2 million, or 2.5%, compared to $485.5 million at December 31, 2008. Cash and cash equivalents totaled $41.6 million, an increase of $25.0 million, or 150.6%, from $16.6 million at December 31, 2008. Loans, net of the allowance for loan losses, totaled $321.7 million, a decrease of $12.9 million, or 3.9%, from $334.6 million at December 31, 2008. Deposits increased $30.8 million, or 9.1%, and Federal Home Loan Bank advances decreased $27.3 million, or 32.3%, from $84.4 million at December 31, 2008. Securities sold under agreements to repurchase increased $7.4 million, or 55.6%, from $13.3 million at December 31, 2008. Total stockholders’ equity was $42.0 million, or 8.4% of total assets, and the book value increased from $15.41 at December 31, 2008 to $15.63 at June 30, 2009, a result of the Company’s net income and the decrease in unrealized losses on available-for-sale securities. President Fournier stated, “We remain focused on maintaining asset quality, improving operating efficiencies, identifying sound growth opportunities, and closely monitoring changes in economic conditions in the areas we operate.” As of June 30, 2009, the Bank continued to meet the definitions and regulatory capital requirements of a well-capitalized institution.

BEVERLY NATIONAL CORPORATION AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

(unaudited)

	June 30, 2009			December 31, 2008
ASSETS
Cash and due from banks	$	11,118		$	9,046
Federal funds sold		7,390			6,550
Interest-bearing demand deposits with other banks		22,176			591
Short-term investments		913			363
Cash and cash equivalents		41,597			16,550
Investments in available-for-sale securities (at fair value)		103,415			103,623
Federal Home Loan Bank stock, at cost		4,171			4,086
Federal Reserve Bank stock, at cost		554			553
Loans, net of the allowance for loan losses of $4,493 and $4,127, respectively		321,695			334,639
Premises and equipment		8,277			8,386
Bank owned life insurance		7,093			6,950
Accrued interest receivable		1,689			1,769
Other assets		9,169			8,949
Total assets	$	497,660		$	485,505
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Noninterest-bearing	$	74,058		$	74,872
Interest-bearing		296,256			264,661
Total deposits		370,314			339,533
Federal Home Loan Bank advances		57,087			84,425
Securities sold under agreements to repurchase		20,680			13,289
Other liabilities		7,612			7,220
Total liabilities		455,693			444,467
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 2,934,364 shares as of June 30, 2009 and December 31, 2008; outstanding, 2,685,472 shares as of June 30, 2009 and December 31, 2008		7,336			7,281
Paid-in capital		23,228			22,917
Retained earnings		18,986			18,459
Treasury stock, at cost (248,892 shares as of June 30, 2009 and December 31, 2008)		(4,370	)		(4,370	)
Unearned shares, Restricted Stock Plan (30,180 shares as of June 30, 2009 and 15,755 shares as of December 31, 2008)		(550	)		(323	)
Accumulated other comprehensive loss		(2,663	)		(2,926	)
Total stockholders’ equity		41,967			41,038
Total liabilities and stockholders’ equity	$	497,660		$	485,505
Book value per share	$	15.63		$	15.41

BEVERLY NATIONAL CORPORATION AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share and per share data)

(unaudited)

	Three Months Ended					Six Months Ended
	June 30, 2009		June 30, 2008			June 30, 2009		June 30, 2008
Interest and dividend income:
Interest and fees on loans	$	4,727	$	5,064		$	9,561	$	10,192
Interest on debt securities:
Taxable		1,003		1,173			2,114		2,295
Tax-exempt		123		120			247		241
Dividends on marketable equity securities		195		344			396		593
Other interest		16		51			26		139
Total interest and dividend income		6,064		6,752			12,344		13,460
Interest expense:
Interest on deposits		1,056		1,606			2,071		3,538
Interest on other borrowed funds		537		732			1,089		1,427
Total interest expense		1,593		2,338			3,160		4,965
Net interest and dividend income		4,471		4,414			9,184		8,495
Provision for loan losses		150		235			375		363
Net interest and dividend income after provision for loan losses		4,321		4,179			8,809		8,132
Noninterest income:
Income from fiduciary activities		380		467			766		941
Fees from sale of non-deposit products		45		90			69		140
Service charges on deposit accounts		154		159			305		318
Other deposit fees		176		212			358		438
Income on cash surrender value of life insurance		74		75			148		148
Other income		215		190			362		390
Total noninterest income		1,044		1,193			2,008		2,375
Noninterest expense:
Salaries and employee benefits		2,214		2,246			4,425		4,461
Director fees		95		66			181		143
Occupancy expense		453		466			947		931
Equipment expense		188		231			367		477
Data processing fees		269		311			621		600
Marketing and public relations		86		115			187		220
Professional fees		415		164			632		330
FDIC insurance assessments		376		10			511		20
Other expense		407		400			792		769
Total noninterest expense		4,503		4,009			8,663		7,951
Income before income taxes		862		1,363			2,154		2,556
Income taxes		196		347			563		630
Net income	$	666	$	1,016		$	1,591	$	1,926
Comprehensive income	$	635	$	(287	)	$	1,840	$	726
Earnings per share:
Weighted average shares outstanding		2,667,204		2,663,448			2,665,384		2,658,261
Weighted average diluted shares outstanding		2,669,032		2,667,014			2,666,409		2,662,035
Earnings per common share	$	0.25	$	0.38		$	0.60	$	0.72
Earnings per common share, assuming dilution	$	0.25	$	0.38		$	0.60	$	0.72
Dividends per share	$	0.20	$	0.20		$	0.40	$	0.40

BEVERLY NATIONAL CORPORATION AND SUBSIDIARY

SELECTED FINANCIAL INFORMATION

(In thousands, except share and per share data)

(unaudited)

	June 30, 2009			December 31, 2008
Balance sheet data:
Total assets	$	497,660		$	485,505
Total loans, net of allowance		321,695			334,639
Allowance for loan losses		4,493			4,127
Investments (1)		108,140			108,262
Deposits		370,314			339,533
Stockholders’ equity		41,967			41,038
Book value (at end of period)	$	15.63		$	15.41
Asset quality ratios:
Non-performing loans(2)	$	163		$	186
Non-performing loans to total loans		0.05	%		0.05	%
Non-performing assets to total assets (3)		0.03	%		0.04	%
Allowance for loan losses as a percentage of:
Non-performing loans		2,756	%		2,219	%
Total loans (at end of period)		1.38	%		1.22	%
	Three Months Ended						Six Months Ended
	June 30, 2009			June 30, 2008			June 30, 2009			June 30, 2008
Earnings data:
Interest and dividend income	$	6,064		$	6,752		$	12,344		$	13,460
Interest expense		1,593			2,338			3,160			4,965
Net interest and dividend income		4,471			4,414			9,184			8,495
Provision for loan losses		150			235			375			363
Noninterest income		1,044			1,193			2,008			2,375
Noninterest expense		4,503			4,009			8,663			7,951
Income before income taxes		862			1,363			2,154			2,556
Income taxes		196			347			563			630
Net income	$	666		$	1,016		$	1,591		$	1,926
Per share data:
Net income (loss)-basic	$	0.25		$	0.38		$	0.60		$	0.72
Net income (loss)-diluted		0.25			0.38			0.60			0.72
Cash dividends	$	0.20		$	0.20		$	0.40		$	0.40
Weighted average shares:
Basic		2,667,204			2,663,448			2,665,384			2,658,261
Diluted		2,669,032			2,667,014			2,666,409			2,662,035
Financial ratios:
Return on average assets		0.54	%		0.83	%		0.65	%		0.80	%
Return on average equity		6.31	%		8.86	%		7.62	%		8.39	%
Net interest margin		3.99	%		3.97	%		4.16	%		3.88	%

(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, wealth management, 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.