Exhibit 99.1

Xenith Bankshares, Inc. Announces Net Income of $0.3 Million For First Quarter 2012

RICHMOND, VA, May 2, 2012 – Xenith Bankshares, Inc. (NASDAQ:XBKS), parent company of Xenith Bank, today announced improved results for the three months ended March 31, 2012, compared to the three months ended March 31, 2011. The Company reported net income of $0.3 million, or $0.03 per common share, for the three months ended March 31, 2012, compared to a net loss of $1.5 million, or ($0.25) per common share, for the three months ended March 31, 2011.

Performance Highlights

“We continued to make good progress during the first quarter of 2012 and reported our third consecutive quarter of positive earnings,” said T. Gaylon Layfield, III, President and Chief Executive Officer. Our results reflect the successful assimilation of our 2011 acquisitions, which strengthened our market share and competitive profile in the Richmond, Virginia market. Our asset quality remains strong and we continue to make good progress at

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resolving the classified and criticized loans that we acquired in the Virginia Business Bank (VBB) transaction in 2011. Xenith enjoys a strong capital position with all of our ratios significantly above the regulatory thresholds for “well capitalized” status. While we are pleased with the progress we’ve made, we continue to focus on organic growth and, as we have previously stated, we will continue to evaluate the competitive landscape for other growth opportunities in order to build the scale necessary to attain consistent profitability and create added value for our investors.”

Interest income grew by 87% in the three months ended March 31, 2012, to $6.1 million, reflecting a $231.9 million increase in average interest-earning assets compared to the three months ended March 31, 2011. Interest expense increased 111% for the three months ended March 31, 2012 to $1.1 million compared to the three months ended March 31, 2011, primarily reflecting a $169.5 million increase in average interest-bearing liabilities. Net interest income was $5.1 million for the three months ended March 31, 2012, an increase of $2.3 million, or 83%, compared to the three months ended March 31, 2011.

Beginning in March 2012, we began a program of participating with a leading national bank in their lending to mortgage companies who originate residential mortgage loans for sale in the secondary market. Along with the bank, we purchase participations from selected non-bank mortgage originators who are seeking funding to facilitate their ability to originate loans. The originators close mortgage loans consistent with underwriting standards established by approved investors and, once the loans close, the originators deliver the loan to the investor. Substantially all of the loans are conforming loans. Together with the bank, we typically purchase up to an aggregate 99% participation interest with the selected originators financing the remaining percentage. These loans are held for short periods, usually less than 30 days and more typically 10-15 days. Accordingly, these loans are classified as held for sale and are carried at the lower of cost or fair value, determined on an aggregate basis. Importantly, we underwrite each loan originator borrower in a manner consistent with our underwriting standards. Our participations averaged $4.3 million for the three months ended March 31, 2012. Our total participations with the bank were $29.1 million at March 31, 2012.

Net interest margin for the three months ended March 31, 2012 was 4.44%, down 48 basis points compared to 4.92% for the three months ended March 31, 2011. The decrease in net interest margin was a result of a 45 basis-point decline in the yield on earning assets and a 10 basis-point increase in the cost of interest-bearing liabilities. The increase in the cost of the interest-bearing liabilities includes the expiration of certain fair value adjustments related to Xenith Corporation’s merger with and into First Bankshares, Inc. in 2009. Without the benefit of this fair value adjustment in the 2011 period, the cost of interest-bearing liabilities would have declined 49 basis points from the three-month period ended March 31, 2011, to the same period in 2012.

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Noninterest expense increased $1.3 million to $4.7 million for the three months ended March 31, 2012 compared to the three months ended March 31, 2011. The increase in noninterest expenses was primarily due to higher compensation and benefits of $852 thousand as we hired the personnel associated with Paragon Commercial Bank’s Richmond Branch, which we acquired in July 2011, and other personnel. Technology expenses increased $130 thousand, partially due to certain costs related to the conversions of acquired loans and assumed deposits related to the VBB and Paragon acquisitions.

Profile

Xenith Bankshares, Inc. is the holding company for Xenith Bank. Xenith Bank is a full-service, locally-managed commercial bank, specifically targeting the banking needs of middle market and small businesses, local real estate developers and investors, private banking clients, and select retail banking clients. As of March 31, 2012, the Company had total assets of $495.2 million and total deposits of $392.3 million. Xenith Bank’s target markets are the Washington, DC-MD-VA-WV, Richmond-Petersburg, VA, and the Norfolk-Virginia Beach-Newport News, VA-NC metropolitan statistical areas. The Company is headquartered in Richmond, Virginia and currently has six branch locations in Tysons Corner, Richmond and Suffolk, Virginia. Xenith Bankshares common stock trades on The NASDAQ Capital Market under the symbol “XBKS.”

For more information about Xenith Bankshares and Xenith Bank, visit our website: https://www.xenithbank.com/.

All statements other than statements of historical facts contained in this press release are forward-looking statements. Forward-looking statements made in this press release reflect beliefs, assumptions and expectations of future events or results, taking into account the information currently available to Xenith Bankshares, Inc. These beliefs, assumptions and expectations may change as a result of many possible events, circumstances or factors, not all of which are currently known to Xenith Bankshares. If a change occurs, Xenith Bankshares’ business, financial condition, liquidity, results of operations and prospects may vary materially from those expressed in, or implied by, the forward-looking statements. Accordingly, you should not place undue reliance on these forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by these forward-looking statements include the risks discussed in Xenith Bankshares’ public filings with the Securities and Exchange Commission, including those outlined in Part I, Item 1A, “Risk Factors” of Xenith Bankshares’ Annual Report on Form 10-K for the year ended December 31, 2011. Except as required by applicable law or regulations, Xenith Bankshares does not undertake, and specifically disclaims any obligation, to update or revise any forward-looking statement.

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Contact:

Thomas W. Osgood

Executive Vice President, Chief Financial Officer,

Chief Administrative Officer and Treasurer

(804) 433-2209

tosgood@xenithbank.com

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SELECTED FINANCIAL INFORMATION

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SELECTED FINANCIAL RATIOS

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