Bank of Botetourt announces second quarter financial results and quarterly cash dividend

Bank of Botetourt announces second quarter financial results and quarterly cash dividend

PR Newswire

BUCHANAN, Va., July 30, 2026

BUCHANAN, Va., July 30, 2026 /PRNewswire/ -- Buchanan-based Bank of Botetourt (OTCID: BORT and BORTP) announced today its unaudited financial results for the three and six months-ended June 30, 2026. The Bank produced net income amounting to $5,300,000 or $2.62 per basic share in the second quarter. This amount compares to net income of $3,168,000 or $1.55 per share, for the same period last year. For the six months-ended the Bank produced net income amounting to $8,386,000 or $4.13 per basic share. This amount compares to a net income of $5,212,000 or $2.53 per share, for the same period last year. The Board of Directors voted to pay the 7.00% preferred dividend, which calculates to $0.49 per share on August 7, 2026, to preferred shareholders of record July 31, 2026. Furthermore, the Board of Directors voted to pay the $0.25 per share quarterly dividend, or $1.00 per share annualized, which is payable on August 17, 2026, to common shareholders of record August 10, 2026.

The second quarter results benefited from a significant one-time, non-recurring income event, which complemented another quarter of sound operating performance across our Bank. Bearing Insurance Group, LLC ("Bearing") completed its sale to BroadStreet Partners Group, LLC. Bank of Botetourt owned 3 units of Bearing and upon consummation of the sale recorded a one-time, pre-tax gain of $3,800,000 on the transaction, which was recognized in its financial results for the second quarter of 2026. President & CEO, Michelle Austin stated, "The additional earnings generated from this transaction strengthened our capital position and enhanced shareholder value while providing greater flexibility to support our long-term strategic objectives." Second Quarter 2026 HighlightsIncome StatementNet income of $5,300,000 for the second quarter of 2026, an increase of $2,132,000, or 67.30%, from the same time period in 2025.Net interest margin for the second quarter of 2026 was 4.02%, an increase of 49 basis points over the same quarter of 2025. The increase is primarily driven by consistent asset yields and a lower cost of interest-bearing liabilities.For the three months ended June 30, 2026, the Bank recorded a provision for credit loss expense of $505,000 including a reserve for unfunded commitments of $86,000. This compares to $8,000 for the same period last year, representing a increase of $497,000. The provision recorded during the quarter mainly reflected allocations necessitated by net loan growth and adjustments to historical loss factors to better represent expectations for future credit losses. Noninterest income increased by $1,919,000, or 117.51%, to $3,552,000 for the three months ended June 30, 2026, compared to $1,633,000 for same period of 2025. The increase is attributed to the aforementioned one-time income event, an increase in service charges on deposit accounts, and an increase in gain on sale of mortgage loans. Noninterest expense increased $500,000 from $5,574,000 at June 30, 2025, to $6,074,000 at June 30, 2026. The increase is primarily related to increases in salaries and employee benefits, debit card expense, and core processing expenses.Annualized return on average assets ("ROA") was 1.79% for the second quarter of 2026 compared to 1.19% for the same period of 2025. Annualized return on average common equity ("ROE") was 17.31% for the second quarter of 2026 compared to 12.08% for the same period of 2025.Balance Sheet and Asset QualityTotal unconsolidated assets amounted to $939,409,000, an increase of $13,902,000, or 1.50% above total assets at December 31, 2025.Debt securities available for sale decreased $8,747,000 from December 31, 2025. The decrease is primarily attributable to the maturity of $9,500,000 in agency securities, $500,000 in corporate bonds, and $710,000 in municipal bonds, offset by the purchase of $2,990,000 mortgage-backed securities and $785,000 municipal bonds during the first six months of 2026. Net loans increased $22,605,000, or 3.01%. Deposits decreased $4,002,000, or (0.48%). The net effect of these balance sheet changes resulted in an decrease in cash and cash equivalents of $4,788,000, or (8.47%). The Bank's loan to deposit ratio of 94.10%, on June 30, 2026, is a 2.01% increase from 92.09% at December 31, 2025.The Bank had no foreclosed properties at December 31, 2025, and June 30, 2026, respectively. Therefore, non-performing assets only consisted of nonaccrual loans. One commercial and industrial loan totaling $83,000 was subsequently charged-off during the second quarter therefore, non-performing assets decreased at June 30, 2026, to $35,000, compared to $41,000 at December 31, 2025. The allowance for credit losses to total loans was 1.14% on June 30, 2026, compared to 1.10% on December 31, 2025 and 1.18% at June 30, 2025.Book value per share at June 30, 2026, was $47.83, an increase of $3.64 from year-end 2025.CapitalAs of June 30, 2026, Bank of Botetourt reported its CBLR ratio at 11.00% which meets the required regulatory minimum ratio. This compares to a CBLR ratio of 10.42% at December 31, 2025.About Bank of BotetourtChartered in 1899, Bank of Botetourt is a full-service community bank serving customers through fourteen retail offices across Botetourt, Franklin, Roanoke, and Rockbridge counties, as well as the Cities of Roanoke and Salem and the Towns of Vinton and Rocky Mount in Virginia. The Bank also operates Virginia Mountain Mortgage, its residential lending division, and Botetourt Wealth Management, offering financial planning and investment services. Recognized by Forbes as a multi-year top-ranked bank in Virginia, Bank of Botetourt continues to build on its long-standing tradition of service, strength, and local commitment.Bank of BotetourtBalance Sheets, unconsolidatedJune 30, 2026 (unaudited) and December 31, 2025(unaudited)(audited)June 30,December 31,20262025AssetsCash and due from banks$ 12,168,000$ 13,031,000Interest-bearing deposits with banks38,528,00042,117,000Federal funds sold946,0001,282,000 Total cash and cash equivalents51,642,00056,430,000Debt securities held to maturity, net of allowance8,182,0009,182,000 for credit losses of $18,000 at June 30, 2026 and December 31, 2025, respectivelyDebt securities available for sale61,215,00069,962,000Loans, net of allowance for credit losses of $8,899,000 at772,973,000750,368,000 June 30, 2026 and $8,374,000 at December 31, 2025.Loans held for sale1,355,0001,737,000Premises and fixed assets, net18,118,00016,515,000Investment in unconsolidated subsidiaries5,564,0003,517,000Other assets20,360,00017,796,000 Total assets$ 939,409,000$ 925,507,000Liabilities and Stockholders' EquityLiabilities Noninterest-bearing deposits$ 185,220,000$ 166,954,000Interest-bearing deposits636,248,000658,516,000 Total deposits821,468,000825,470,000Other borrowings10,000,000-Other liabilities6,927,0006,520,000 Total liabilities838,395,000831,990,000Commitments and contingencies--Stockholders' EquityPreferred stock, $1.00 par value; 1,000,000 shares authorized; 243,659 issued and outstanding at June 30, 2026 and at December 31, 2025, respectively244,000244,000Common stock, $1.50 par value; 5,000,000 shares authorized; 1,975,193 and 1,970,230 issued and outstanding at June 30, 2026 and at December 31, 2025, respectively2,963,0002,955,000Additional paid-in capital24,720,00024,504,000Retained earnings74,996,00067,834,000Accumulated other comprehensive loss(1,909,000)(2,020,000) Total stockholders' equity101,014,00093,517,000 Total liabilities and stockholders' equity$ 939,409,000$ 925,507,000Bank of BotetourtIncome StatementFor the six months ended and three months ended June 30, 2026 and 2025 (Unaudited)Six Months EndedJune 30,Three Months EndedJune 30,2026202520262025Interest income Loans and fees on loans$ 24,194,000$ 21,304,000$ 12,180,000$ 10,861,000 Securities: U.S. Treasury and Government Agencies235,000301,000110,000147,000 Mortgage-backed securities276,000109,000143,00053,000 All other securities419,000417,000207,000208,000 Due from depository institutions854,0001,005,000498,000496,000 Federal funds sold16,00017,0008,0009,000 Total Interest income25,994,00023,153,00013,146,00011,774,000Interest expense Deposits8,038,0007,824,0003,990,0003,830,000 Other borrowings2,000-2,000- Total Interest expense8,040,0007,824,0003,992,0003,830,000 Net Interest Income17,954,00015,329,0009,154,0007,944,000Provision for credit losses840,000362,000505,0008,000 Net Interest Income after credit loss expense17,114,00014,967,0008,649,0007,936,000Noninterest income Service charges on deposit accounts725,000634,000361,000319,000 Securities brokerage and annuities179,000124,000100,00049,000 Other income, net of gains4,181,0002,119,0003,091,0001,265,000 Total noninterest income5,085,0002,877,0003,552,0001,633,000Noninterest expense Salaries and employee benefits5,122,0004,709,0002,500,0002,378,000 Premises and fixed assets expense1,170,0001,187,000572,000567,000 Other expense5,907,0005,380,0003,002,0002,629,000 Total noninterest expense12,199,00011,276,0006,074,0005,574,000 Income before income taxes10,000,0006,568,0006,127,0003,995,000Income tax expense1,614,0001,356,000827,000827,000 Net income8,386,0005,212,0005,300,0003,168,000 Preferred stock dividends239,000239,000120,000120,000Net income available to common shareholders$ 8,147,000$ 4,973,000$ 5,180,000$ 3,048,000Basic earnings per share$ 4.13$ 2.53$ 2.62$ 1.55Diluted earnings per share$ 4.13$ 2.53$ 2.62$ 1.55Dividends declared per share$ 0.50$ 0.45$ 0.25$ 0.225Basic weighted average shares outstanding1,973,0401,963,7181,974,3231,965,101Diluted weighted average shares outstanding1,973,0401,963,7181,974,3231,965,101