Exhibit 99

Cardinal Bankshares Corporation

101 Jacksonville Circle

Floyd, Virginia 24091

Contact:	Leon Moore	Telephone: (540) -745-4191
	Chairman of the Board and CEO	FAX: (540-) 745-4133

February 8, 2005	Traded: OTC Bulletin Board	Symbol: CDBK
For Immediate Release

Cardinal Bankshares Corporation Announces Strong Earnings for 2004

FLOYD, VA – Cardinal Bankshares Corporation is pleased to report an earnings increase over 2003. “ With the added cost of federal regulations, competition, interest rate uncertainty, branch expansion and automation upgrades, it is particularly gratifying to report strong earnings”, stated Leon Moore, chairman and chief executive officer. Moore also stated that 2004 was the second best year for net income in the Company’s history.

Net income amounted to $2,242,000, an increase of $217,000 over the 2003 income of $2,025,000. Basic earnings per share amounted to $1.46, an increase of $.14 over the $1.32 per share in 2003.

Net income for the 4^th quarter of 2004 increased by 4% over 2003, ending at $527,375, compared to $507,018 in the 4^th quarter 2003.

Total assets ended the year at $190,633,000. Net loans increased by $4 million and ended the year at $123,042,000.

Moore added, “Our continued strong performance allows Cardinal to add value to our shareholders, to the communities we serve and to our staff.”

Cardinal provides a wide range of commercial banking services to individuals and small to medium-sized businesses through its main office located in Floyd, Virginia and its branch locations in Christiansburg, Hillsville, Roanoke, Salem and Willis, Virginia.

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Cardinal Bankshares Corporation and Subsidiaries

Consolidated Balance Sheets

December 31, (In thousands, Unaudited)	2004			2003
Assets
Cash and due from banks	$	4,162		$	3,419
Interest-bearing deposits in banks		3,602			4,316
Federal funds sold		7,175			9,125
Investment securities available for sale, at fair value		20,942			21,771
Investment securities held to maturity		20,001			18,560
Restricted equity securities		603			598
Total loans		124,673			120,730
Allowance for loan losses		(1,631	)		(1,697	)
Net loans		123,042			119,033
Bank premises and equipment, net		4,205			2,437
Accrued interest receivable		933			883
Foreclosed properties		—			385
Bank owned life insurance		4,483			4,327
Other assets		1,485			1,558
Total assets	$	190,633		$	186,412
Liabilities and Stockholders’ Equity
Liabilities
Noninterest-bearing deposits	$	27,211		$	22,959
Interest-bearing deposits		134,044			136,256
Total deposits		161,255			159,215
Securities sold under agreements to repurchase		2,493			1,826
Accrued interest payable		110			123
Other liabilities		925			794
Total liabilities		164,783			161,958
Commitments and contingencies		—			—
Stockholders’ equity
Common stock, $10 par value; 5,000,000 shares authorized; 1,535,733 shares issued and outstanding		15,357			15,357
Additional paid-in capital		2,925			2,925
Retained earnings		7,444			5,970
Accumulated other comprehensive income		124			202
Total stockholders’ equity		25,850			24,454
Total liabilities and stockholders’ equity	$	190,633		$	186,412

Cardinal Bankshares Corporation and Subsidiaries

Consolidated Statements of Income

Years ended December 31, (In thousands, except share and per share data, Unaudited)	2004		2003
Interest income
Loans and fees on loans	$	7,971	$	7,804
Federal funds sold and securities purchased under agreements to resell		97		119
Investment securities:
Taxable		902		961
Exempt from federal income tax		924		921
Deposits with banks		26		69
Total interest income		9,920		9,874
Interest expense
Deposits		3,102		3,781
Borrowings		55		28
Total interest expense		3,157		3,809
Net interest income		6,763		6,065
Provision for loan losses		55		30
Net interest income after provision for loan losses		6,708		6,035
Noninterest income
Service charges on deposit accounts		267		308
Other service charges and fees		87		86
Net realized gains on sales of securities		4		—
Income on bank owned life insurance		156		178
Other income		256		302
Total noninterest income		770		874
Noninterest expense
Salaries and employee benefits		2,719		2,479
Occupancy and equipment		618		553
Foreclosed assets, net		12		36
Other operating expense		1,260		1,254
Total noninterest expense		4,609		4,322
Income before income taxes		2,869		2,587
Income tax expense		627		562
Net income	$	2,242	$	2,025
Basic earnings per share	$	1.46	$	1.32
Diluted earnings per share	$	1.46	$	1.32
Weighted average basic shares outstanding		1,535,733		1,535,733
Weighted average diluted shares outstanding		1,535,733		1,535,733