Cardinal Bankshares Corporation Announces Operating Results

FLOYD, Va., Nov. 12 /PRNewswire-FirstCall/ -- Cardinal Bankshares Corporation
("CBC" or "The Company") released operating results for the nine months ending
September 30, 2009.

Total assets, loans and deposits all increased over year-end 2008 results.
Total assets of $233.2 million increased 5.5% or $12.2 million. Total loans of
$154.8 million increased $6.9 million or 4.6%. Total deposits of $201.0
million increased 6.3% or $12.0 million.

Net Income was $280 thousand, which represented a 77% decline in earnings
compared to the same period in 2008. Earnings were adversely affected by
continued low interest rates paid on overnight deposits, increasing regulatory
costs, additions to the provision for loan losses and the expensing of the
special FDIC assessment.

The provision for loan losses was increased $576 thousand during the first
nine months of 2009.

Current standards require all banks to maintain Tier 1 Capital of 4% and Total
Capital of 8% to be considered well capitalized. Cardinal Bankshares
Corporation on a consolidated basis has Tier 1 Capital of 18.46% and Total
Capital of 19.5%, while the Bank of Floyd has Tier 1 Capital of 12.64% and
Total Capital of 13.79%.

"Although earnings remain below expectations, the Board and Executive
Management remain optimistic and are encouraged by asset, loan and deposit
growth. The additions to the provision for loan losses were made after
careful and prudent examination of the loan portfolio, taking into
consideration the current state of the economy, anticipated future
deterioration of the commercial real estate market and unprecedented
unemployment not seen since the depression. While focusing on improving
earnings, Cardinal Bankshares Corporation and the Bank of Floyd retain a very
strong capital position during these trying economic times when many fellow
banks are faltering and continues to provide a conservative, safe and sound
financial institution with which its customers can feel confident," stated
Leon Moore, Chairman, CEO & President.

CONTACT:
Leon Moore
Cardinal Bankshares Corporation
540-745-4191
lmoore@bankoffloyd.com

SOURCE Cardinal Bankshares Corporation

Leon Moore of Cardinal Bankshares Corporation, +1-540-745-4191,
lmoore@bankoffloyd.com