Summary of COMMONWEALTH BANKSHARES INC

Item 8.01. Other Events.

On November 4, 2009, Commonwealth Bankshares, Inc. issued a press release announcing results for the quarter and nine months ended September 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 benefit 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                                Nine Months Ended

                                 September 30, 2009       September 30, 2008       September 30, 2009       September 30, 2008

Net (loss)                       $           (12,425 )   $             (9,101 )   $            (11,234 )   $             (4,352 )
Add: Income tax (benefit)                     (6,507 )                 (4,779 )                 (5,892 )                 (2,260 )
Add: Provision for loan losses                21,909                   20,000                   29,410                   21,255
Pre-tax, pre-provision income    $             2,977     $              6,120     $             12,284     $             14,643

Item 9.01. Financial Statements and Exhibits.

99.1 Press Release, dated November 4, 2009, entitled "Commonwealth Bankshares, Inc., Norfolk, VA, Announces Third Quarter Results."