Bank of McKenney reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. The bank reported a third quarter loss of $482,000 due primarily to a $1.2 million provision charge to bolster the reserve for loan losses. This compares to 2008 third quarter earnings of $305,000. A basic and diluted loss per share of $0.25 was reported for the three months ended September 30, 2009, compared to basic and diluted earnings per share of $0.16 for the prior year's results for the same period. Net interest income increased 7.21% to $1,696,000 in the third quarter of 2009 from $1,582,000 in the comparable period in 2008. Net loss before tax for the period was $677,547 against net income before taxes was $432,605 for same period a year ago. Interest and dividend income was $2,442,495 against $2,543,513 for the same period a year ago. For the nine-month period ended September 30, 2009, the Bank reported earnings of $57,000, a decrease of 93.79% when compared to $918,000 through the first nine months of 2008. Again, the reduced earnings are largely the result of provision charges to increase reserves. For the first three quarters of 2009 and 2008, earnings per basic and diluted share of $0.03 and $0.48, respectively, were recorded. Annualized returns on average assets and average equity for the first nine months of 2009 were 0.04% and 0.42%, respectively, compared to 0.74% and 6.63%, respectively, for the same period in 2008. For the first nine months of 2009, net interest income increased to $5,023,000 from $4,479,000 in the comparable period in 2008. Net income before tax for the period was $61,433 against $1,285,537 for same period a year ago. Interest and dividend income was $7,305,523 against $7,564,813 for the same period a year ago.

Bank of McKenney reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2009. The company reported second quarter earnings of $261,000, a decrease of 18.44% over 2008 second quarter earnings of $320,000. The decline in net income is primarily the result of increases to loan reserves, a decline in securities gains recognized, and soaring deposit insurance rates by the Federal Deposit Insurance Corporation (FDIC). Additional charges by the FDIC of a separate special one-time assessment were expensed during the second quarter as well, adding to the overhead costs that reduced earnings. Basic and diluted earnings per share of $0.14 were reported for the three months ended June 30, 2009, $0.03 less than those of the prior year's results for the same period. Net interest income increased $212,000 or 14.62% to $1,662,000 in the second quarter of 2009 from $1,450,000 in the comparable period in 2008. Interest and dividend income was $2,412,613 against $2,501,340 in the comparable period in 2008. Net interest income after provision for loan losses was $1,498,596 against $1,319,630 in the comparable period in 2008. Net income before taxes was $347,529 against $442,112 in the comparable period in 2008. For the six-month period ended June 30, 2009, the bank reported earnings of $540,000, a decrease of 12.05% when compared to $614,000 through the first six months of 2008. For the first two quarters of 2009 and 2008, earnings per basic and diluted share of $0.28 and $0.32, respectively, were recorded. Annualized returns on average assets and average equity for the first six months of 2009 were 0.65 and 6.17%, respectively, compared to 0.74 and 6.66, respectively, for the same period in 2008. For the first six months of 2009, net interest income increased by $430,000 or 14.84% to $3,327,000 from $2,897,000 in the comparable period in 2008. Interest and dividend income was $4,863,028 against $5,021,300 in the comparable period in 2008. Net interest income after provision for loan losses was $3,003,585 against $2,736,697 in the comparable period in 2008. Net income before taxes was $738,980 against $852,932 in the comparable period in 2008.

Bank of McKenney, Annual General Meeting, May 13, 2009 Location: 20718 First Street, McKenney, Virginia, United States. Agenda: To consider and vote on a proposal to elect nine directors, eight of whom are outside directors, to serve until the 2010 annual meeting of shareholders; and to ratify the selection by the Board of Directors' Audit Committee of 'Yount, Hyde & Barbour, P.C.', independent certified public accountants, as the Bank's independent auditors for 2009.