EXHIBIT 99

LOGO

2006 ANNUAL REPORT



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Stockholder Information

The Annual Meeting

The Annual Meeting of Shareholders will be held Wednesday, April 25, 2007, at 2:00 p.m. in the Bank
of Floyds conference room, 101 Jacksonville Circle, Floyd, Virginia.

Requests for Information

Requests for additional information should be directed to Mrs. Annette Battle, Corporate Secretary, Cardinal Bankshares Corporation, P.O. Box 215, Floyd, Virginia,
24091; telephone (540) 745-4191.



|                             |  |                        
|---------------------------- |  | -----------------------
|Independent Auditors         |  | Corporate Counsel      
|                             | 
|Elliott Davis, LLC           |  | LeClair Ryan           
|Certified Public Accountants |  | 1800 Wachovia Tower    
|Post Office Box 760          |  | Drawer 1200            
|Galax, Virginia 24333        |  | Roanoke, Virginia 24006

Federal Deposit Insurance Corporation

The Bank is a member of the FDIC. This statement has not been reviewed, or confirmed for accuracy or relevance by the Federal Deposit Insurance Corporation.

Member of Federal Reserve Bank of Richmond

Member of Federal Home Loan Bank of Atlanta

Banking Offices



|                               |  |                            |  |                                         
|------------------------------ |  | -------------------------- |  | ----------------------------------------
|Cave Spring Office             |  | Hillsville Office          |  | Willis Office                           
|4094 Postal Drive              |  | 185 South Main Street      |  | 5598B Floyd Highway South               
|Roanoke, Virginia 24018        |  | Hillsville, Virginia 24343 |  | Willis, Virginia 24380                  
|(540) 774-1111                 |  | (276) 728-2341             |  | (540) 745-4191                          
|ATM location                   |  | ATM location               |  |                                         
|                               |  |                           
|Christiansburg Office          |  | Tanglewood Office          |  | Opening Late Spring 2007 Fairlawn
Office
|2145 Roanoke Street SE         |  | 4309 Starkey Road          |  | 7349 Peppers Ferry Blvd                 
|Christiansburg, Virginia 24073 |  | Roanoke, Virginia 24018    |  | Radford, Virginia 24141                 
|(540) 381-8121                 |  | (540) 776-0800             |  |                                         
|ATM location                   |  | ATM location               |  |                                         
|                               |  |                           
|Floyd Office                   |  | West Salem Office          |  |                                         
|101 Jacksonville Circle        |  | 1634 West Main Street      |  |                                         
|Floyd, Virginia 24091          |  | Salem, Virginia 24153      |  |                                         
|(540) 745-4191                 |  | (540) 387-4533             |  |                                         
|ATM location                   |  | ATM location               |  |                                         



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Board of Directors of Cardinal Bankshares Corporation and Bank of Floyd



|                               |  |                                                   |  |                      
|------------------------------ |  | ------------------------------------------------- |  | ---------------------
|Dr. Joseph Howard Conduff, Jr. |  | Ronald Leon Moore                                 |  | Dorsey H. Thompson   
|General Dentist                |  | Chairman, President & CEO                         |  | Farmer               
|                               |  | Cardinal Bankshares Corporation and Bank of Floyd |  |                      
|William R. Gardner, Jr.        |  |                                                   |  | G. Harris Warner, Jr.
|Semi-Retired Educator          |  |                                                   |  | Attorney-at-Law      
|Floyd County Public Schools    |  | Dr. A. Carole Pratt                               |  | Warner & Renick PLC  
|                               |  | General Dentist                                   |  |                      
|Kevin D. Mitchell              |  | Drs. Pratt and Mansell, D.D.S.                    |  |                      
|Dairy Farmer                   |  |                                                   |  |                      

Officers of Cardinal Bankshares Corporation



|                               |  |                                                                  
|------------------------------ |  | -----------------------------------------------------------------
|Ronald Leon Moore              |  | Chairman of the Board, President, and Chief Executive Officer    
|Dr. Joseph Howard Conduff, Jr. |  | Chair of Audit Committee                                         
|William R. Gardner, Jr.        |  | Vice Chairman of the Board                                       
|Stephanie Sigman               |  | Senior Vice President, Controller and Principal Financial Officer
|Wanda M. Gardner               |  | Senior Vice President  Internal Auditor                         
|Dianne H. Hamm                 |  | Senior Vice President  Compliance                               
|Betty Whitlock                 |  | Senior Vice President  Information Systems                      
|Annette V. Battle              |  | Senior Vice President  Corporate Secretary                      



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Officers of Bank of Floyd



|                               |  |                                                             
|------------------------------ |  | ------------------------------------------------------------
|Executive                      |  |                                                             
|Ronald Leon Moore              |  | Chairman of the Board, President and Chief Executive Officer
|Dr. Joseph Howard Conduff, Jr. |  | Chair of Audit Committee                                    
|William R. Gardner, Jr.        |  | Vice Chairman of the Board                                  
|Fred L. Newhouse, Jr.          |  | Executive Vice President  Lending                          
|Stephanie Sigman               |  | Cashier and Principal Financial Officer                     
|Annette V. Battle              |  | Senior Vice President  Corporate Secretary                 
|                               | 
|Main Office                    |  |                                                             
|Wanda M. Gardner               |  | Senior Vice President  Internal Auditor                    
|Dianne H. Hamm                 |  | Senior Vice President  Compliance                          
|Sunny K. Pratt                 |  | Senior Vice President  Credit Review                       
|Betty A. Whitlock              |  | Senior Vice President  Manager of Information Systems      
|Ola Lee Driskell               |  | Vice President  Lending                                    
|Patricia B. Spangler           |  | Vice President  Funds Management                           
|Marie V. Thomas                |  | Vice President                                              
|Shelby L. Rutherford           |  | Assistant Vice President  Human Resources                  
|Patricia K. Harris             |  | Assistant Vice President  Branch                           
|Carolyn W. Reed                |  | Assistant Vice President  Branch                           
|Ronnie L. Stump                |  | Assistant Cashier  Security Officer                        
|Yara S. Middleton              |  | Administrative Assistant  Finance                          
|Gary D. Young                  |  | Purchasing Officer - Building & Grounds                     
|Sandra K. Mabery               |  | Supervisor  Card Operations                                
|Betty Moran                    |  | Supervisor  Bookkeeping                                    
|Jan R. Rorrer                  |  | Supervisor  Loan Operations                                
|Gail N. Goad                   |  | Supervisor  Computer Operations                            
|                               | 
|Cave Spring Office             |  |                                                             
|Tami I. Millard                |  | Supervisor of Branch Operations                             
|                               | 
|Christiansburg Office          |  |                                                             
|Bill R. Hubble                 |  | Vice President  Branch Manager                             
|Sharon N. Zeman                |  | Assistant Vice President  Supervisor of Branch Operations  
|                               | 
|Hillsville Office              |  |                                                             
|Eugene G. Shockley             |  | Vice President  Branch Manager                             
|Frances I. Sharpe              |  | Assistant Cashier  Supervisor of Branch Operations         
|                               | 
|Tanglewood Office              |  |                                                             
|Keith S. Elliott               |  | Assistant Vice President  Branch Manager                   
|Lisa C. Ratliff                |  | Supervisor of Branch Operations                             
|                               | 
|West Salem Office              |  |                                                             
|                               | 
|Willis Office                  |  |                                                             



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LOGO

Stock Listing

Cardinal
Bankshares Corporation common stock is traded on the OTC Bulletin Board. Current market quotations for the common stock can be obtained at http://otcbb.com/dynamic/using the symbol CDBK.

Stock Transfer Agent

Bank of Floyd serves as transfer agent for
Cardinal. You may write the transfer agent as follows: Stock Transfer Agent, Bank of Floyd, P.O. Box 215, Floyd, VA 24091, telephone 540-745-4191 or toll-free at 1-888-562-4130.

Investor Relations & Financial Statements

Cardinal Bankshares Corporations Annual Report on Form 10-K
and quarterly reports on Form 10-Q, as filed with the Securities and Exchange Commission, may be obtained without charge by visiting the Corporations web site at http://www.bankoffloyd.comand by selecting the Cardinal
Bankshares Corporation link. Copies of these documents can also be obtained without charge upon written request. Requests for this and other financial information about Cardinal should be directed to: Stephanie Sigman, Senior Vice President,
Cardinal Bankshares Corporation, P.O. Box 215, Floyd, VA 24091.



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Cardinal Bankshares Corporation

Post Office Box 215

Floyd, Virginia 24091

Phone: (540) 745-4191

Fax:
(540) 745-4133