Cardinal Bankshares Corp. reported earnings results for the nine months ended September 30, 2009. Net income was $280,000, 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.

Cardinal Bankshares Corp. announced it has reduced its semi-annual dividend to $0.08 cents per share of common stock. This is a reduction of 73% from the June 30, 2008 payment of $0.29 cents. The cash dividend will be paid on June 30, 2009 to shareholders of record on June 25, 2009.

At the Annual Meeting of shareholders of Cardinal Bankshares Corp. on April 22, 2009. The meeting was adjourned without action being taken with respect to a proposed Amendment to the Articles of Incorporation to allow the authorization of 5 million shares of preferred stock.