On November 17, 2009, the Board of Directors of First Century Bankshares Inc. declared its fourth quarter dividend to shareholders. The Board declared a regular dividend, in the amount of $0.15 per common share. The dividend is payable to shareholders of record December 18, 2009, and are expected to be paid on or about December 30, 2009. The dividend represents a 50% decrease over the 2008 fourth quarter total dividend of $0.30 per common share, which consisted of $0.27 per share regular dividend, and $0.03 per share special dividend.

On September 3, 2009, First Century Bankshares Inc. learned of the death of its director, Dr. J.J. Booker. Dr. Booker had faithfully and selflessly served as a director of the Corporation since 2007, and also as a director of First Century Bank, NA since 1999.

First Century Bankshares Inc. reported earnings results for the second quarter and six months ended June 30, 2009. For the quarter ended June 30, 2009, the company reported net income of $391,000 compared to $1,004,000 earned during the second quarter of 2008. On a per share basis, net income was $0.21 per diluted share for the quarter ended June 30, 2009, and $0.52 per diluted share for the three months ended June 30, 2008. Core net interest earnings were stable during the quarter however net income was reduced due to higher provisions for the loan loss allowance, the special and ongoing FDIC insurance assessments and the write-off of equity investment in the failed Silverton Bank, which the FDIC announced during the quarter. Net income for the second quarter of 2009 produced an annualized return on average equity of 3.75% and an annualized return on average assets of 0.36% compared with second quarter 2008 ratios of 9.79% and 0.92%, respectively. Net interest income, for the quarter was $3,727,000, a decrease of $8,000, or 0.2%, as compared to $3,735,000 for the second quarter of 2008. Net charge-offs were $180,000 compared to net recoveries of $6,000 for the quarter ended June 30, 2008. For the six-month period ending June 30, 2009, the company reported that net income was $1,111,000, representing a 35.6% decrease from the $1,726,000 earned during the same period in 2008. On a per share basis, net income decreased to $0.58 per diluted share from $0.90 per diluted share for the six-month period ended June 30, 2008. Again, the same factors that reduced second quarter earnings were the primary drivers of reduced earnings for the first half of 2009 when compared to the first half of 2008. Net income for the first six months of 2009 produced return on average equity of 5.33% and return on average assets of 0.51% compared with 8.43% and 0.80%, respectively, for the same period in 2008. Net interest income, period was $7,415,000, an increase of $131,000, or 1.8%, as compared to $7,284,000 for the first six months of 2008. The company also recorded impairment charges for the second quarter of 2009. The company wrote-off its equity investment in the failed Silverton Bank, Atlanta of $168,000.