Exhibit 99.1

Monday, October 31, 2016

HomeTown Bankshares Corporation Reports Strong Growth

YTD Revenues up 10% over 2015

News Release

FOR IMMEDIATE RELEASE

For more information contact:

Susan K. Still, President and CEO, (540) 278-1705

Vance W. Adkins, Executive Vice President & CFO, (540) 278-1702

HomeTown Bankshares Corporation Reports Continued Strong Growth through the Third Quarter of 2016

Roanoke, VA (October 31, 2016) – HomeTown Bankshares Corporation, the parent company of HomeTown Bank, generated net income of $903,000, a 6% increase for the third quarter ended September 30, 2016 on a 10% increase in revenues over a comparable period in 2015. Net income available to common shareholders increased 40% over the third quarter of 2015 mostly due to the elimination of preferred dividends of $210,000 beginning July 1, 2016. The elimination of dividends resulted from the Company’s conversion of preferred stock to common stock on June 29, 2016. A net profit of $0.16 per diluted common share was realized for the third quarter of 2016 vs. $0.15 per diluted common share for the third quarter of 2015, after being restated for a 4% stock dividend distributed on July 11, 2016.

Net income for the first nine months of 2016 amounted to $1.52 million or $0.26 per diluted common share. Net income was $340,000 less than the $1.86 million or $0.44 per diluted common share that was earned during the first nine months of 2015, after being restated for the 4% stock dividend. The reduction in year-to-date earnings was mostly due to an expiration of stock options in April of this year as well as provisions for loan losses being made during 2016 vs. no provision in 2015.

Core non-interest income increased 18% to $792,000 in the third quarter of 2016 and amounted to $2.06 million for the nine months ended September 30, 2016 vs. $669,000 and $1.86 million, respectively, during the same period of 2015. The primary growth in non-interest income was revenue generated from continued strong core checking account growth during 2016 as well as a strong increase in mortgage lending and merchant services during the third quarter and year-to-date.

“We are very pleased with the strong growth in revenues and net income available to shareholders during the third quarter of 2016 with the elimination of preferred dividends on July 1, 2016, stated Susan Still, President and CEO. “Continued, strong growth in core deposits and the loan portfolio coupled with a sizable increase in non-interest income contributed to the improvement in earnings.” she continued.

Revenue

Total core revenue for the third quarter was up 10% to $5.7 million while total core revenue for the nine months ended September 30, 2016 up 9% to $16.3 million, $1.3 million ahead of the first nine months of 2015. Higher core revenues reflected increases in both net interest income and non-interest income and exclude gains on sales of investments. Growth in commercial lines and loans, commercial real estate loans, personal lines and loans, as well as non-interest income from treasury and merchant services, title insurance and mortgage income contributed to the increase in total revenue.

Net Interest Income

Net interest income in the third quarter 2016 increased $215,000 to $4.11 million over the third quarter of 2015 with a $154,000 increase from $3.96 million earned from the second quarter of 2016. Net interest income was up $544,000 to $12.0 million or 5% for the first nine months of 2016 vs. $11.4 million over a comparable period in 2015. Higher loan volume helped to offset lower interest rates on loans and increased sub-debt interest expense for the first three quarters of 2016. As anticipated, the cost of our $7.5 million capital raise in December 2015 has had a near-term impact on earnings and our net interest margin while the continued growth in interest income from new loans and investments surpasses the interest expense incurred. Accordingly, a 6 basis point decline was realized in the net interest margin during the third quarter of 2016 from 3.55% in the second quarter to 3.49% at September 30, 2016 with a year-over-year decline of 28 basis points from 3.77% for the first nine months of 2015 vs. 3.49% at September 30, 2016.

Noninterest Income

Core noninterest income increased 18% to $792,000, net of securities gains, in the third quarter 2016 while noninterest income of $2.1 million was realized for the first nine months of 2016, up 11% from $1.9 million realized for the a comparable period in 2015, also net of securities gains. The primary increase for 2016 was continued growth in service charges from new deposit relationships, ATM and interchange income, title insurance, merchant income, and mortgage income.

Noninterest Expense

Noninterest expense increased $149,000 in the third quarter 2016 from the prior quarter due primarily to a 23% reduction in deferred loan costs from the prior quarter. Noninterest expense increased during the first nine months of 2016 compared to 2015 due primarily to cost increases in salaries and benefits for additions to our two new lines of business, Private Wealth and Merchant Services, in addition to increased staffing to support new account growth.

Balance Sheet

Total assets grew to $508 million at September 30, 2016 from $479 million at December 31, 2015. The capital ratios improved from the increase in earnings and remained well above regulatory standards for well-capitalized banks through September 30, 2016.

Loans

Annualized loan growth was 13% for the first nine months of 2016, a 12% increase or $44 million over the twelve months since September 30, 2015 to $404 million. Loan growth was driven by commercial real estate, commercial and industrial lines and term loans as well as consumer lines and loans.

Deposits

Total core deposits were up $43 million or 15% on an annualized basis for the first nine months of 2016 while core deposit growth was up $47 million or 13% over September 30, 2015. Strong core deposit growth was achieved again in 2016 by strong growth in commercial and consumer banking relationships.

Capital

Total stockholders’ equity increased $2.7 million through September 30, 2016 over the previous year. HomeTown Bank’s Total capital ratio, Common equity tier 1 capital, Total risk-based capital, Tier 1 risk-based capital and Tier 1 leverage ratios were 12.1%, 12.9%, 12.1%, and 10.6%, respectively. All ratios continue to exceed the current regulatory standards for well-capitalized institutions. Book value per common share amounted to $8.30 at September 30, 2016 vs. $7.97 at September 30, 2015, on a fully diluted basis.

With the conversion of HMTA Preferred Stock on June 29, 2016, capital will no longer decrease with the reduction in quarterly dividends paid of approximately $200,000 per quarter beginning July 1, 2016.

Asset Quality

Loan quality remained solid thru the first nine months ended September 30, 2016.

Nonperforming Assets

OREO balances decreased significantly - $963,000 or 18% during the first nine months 2016 and $2.4 million or 36% since September 30, 2015. This resulted in a decline in non-performing assets, excluding performing restructured loans, to 1.03% of total assets at September 30, 2016 vs. 1.51% at September 30, 2015. Non-performing assets, including restructured loans, were also down from 2.89% of total assets at September 30, 2015 to 2.25% at September 30, 2016.

Past Due and Nonaccrual Loans

Nonperforming loans, excluding performing, restructured loans, of $935,000 were 0.23% of total loans at September 30, 2016 vs. $436,000 or 0.12% of total loans at September 30, 2015. Past due accruing loans amounted to 0.07% of total loans at September 30, 2016 vs. 0.33% in 2015 while nonaccruals increased to .29% of total loans during the third quarter of 2016 from .15% of total loans at September 30, 2015. Net charge-offs to average loans outstanding at September 30, 2016 were very low at 0.02% for the quarter and 0.25% for the first nine months of 2016.

Allowance for Loan Losses

The Company’s Allowance for Loan Losses amounted to $3.54 million or .88% of total loans at September 30, 2016 vs. $3.30 million and 0.90% of total loans at December 31, 2015, and $3.31 million and .92% of total loans at September 30,

2015.

“The level of bank owned real estate was reduced significantly during the first nine months of 2016 and over the past year,” stated Still. “Our ongoing focus will remain on maintaining low levels of non-performing loans and past dues and continuing to prudently reduce the level of bank owned real estate over the remainder of 2016,” she said.

* * *

Forward-Looking Statements:

Certain statements in this press release may be “forward-looking statements.” Forward-looking statements are statements that include projections, predictions, expectations or beliefs about future events or results that are not statements of historical fact and that involve significant risks and uncertainties. Although the Company believes that its expectations with regard to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results will not differ materially from any future results implied by the forward-looking statements. Actual results may be materially different from past or anticipated results because of many factors, some of which may include changes in economic conditions, the interest rate environment, legislative and regulatory requirements, new products, competition, changes in the stock and bond markets and technology. The Company does not update any forward-looking statements that it may make.

(See Attached Financial Statements for quarter ending September 30, 2016)

Page | 8