On August 5, 2009, Commonwealth Bankshares, Inc. issued a press release announcing earnings for the quarter and six months ended June 30, 2009. A copy of the Company's press release is attached as Exhibit 99.1 hereto and is herby incorporated herein by reference.

Certain information provided in the news release attached as Exhibit 99.1 regarding pre-tax, pre-provision income excludes income tax and provision expense and, therefore, may be deemed to be a non-GAAP financial measure. Below is a reconciliation of this non-GAAP financial measure to the most directly comparable financial measure calculated and presented in accordance with GAAP.

Pre-tax, Pre-provision Income

While pre-tax, pre-provision income is a non-GAAP performance metric, management believes it is useful in analyzing underlying performance trends, particularly in times of economic stress.

The reconciliation of pre-tax, pre-provision income to the comparable GAAP financial measure can be found below:

(in thousands)                                              Three Months Ended                       Six Months Ended

                                                    June 30, 2009        June 30, 2008       June 30, 2009       June 30, 2008

Net income                                         $           595      $         2,397     $         1,192     $         4,749
Add: Income tax                                                317                1,272                 615               2,519
Add: Provision for loan losses                               3,496                  800               7,500               1,255
Pre-tax, pre-provision income                      $         4,408      $         4,469     $         9,307     $         8,523

(c) Exhibits.

99.1 Press Release, dated August 5, 2009, entitled "Commonwealth Bankshares, Inc., Norfolk, VA, Announces Second Quarter Profits."