BUCHANAN, Va., April 30, 2026 /PRNewswire/ -- Buchanan-based Bank of Botetourt (OTCID: BORT and BORTP) announced today its unaudited financial results for the three months-ended March 31, 2026. The Bank produced net income amounting to $3,086,000 or $1.50 per basic share in the first quarter. This amount compares to net income of $2,044,000 or $0.98 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 May 8, 2026, to preferred shareholders of record May 1, 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 May 15, 2026, to common shareholders of record May 8, 2026. President & CEO, Michelle Austin stated, "We reported strong first quarter earnings, reflecting the strength of our core banking franchise, disciplined financial management, and consistent execution of our strategic priorities. These results underscore our ability to perform well while maintaining a conservative approach to growth and risk. Our success is driven by the dedication of our employees, whose commitment to our customers and communities continues to differentiate our organization. As we move forward, we remain focused on building long-term shareholder value while staying true to our mission of serving the communities in which we operate through sound banking practices and local engagement."
First Quarter 2026 Highlights
Income Statement
-- Net income of $3,086,000 for the first quarter of 2026, an increase of
$1,042,000, or 50.98%, from the same quarter of 2025.
-- Net interest margin for the first quarter of 2026 was 3.97%, an increase
of 38 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 March 31, 2026, the Bank recorded a provision
for credit loss expense of $335,000 including a reserve for unfunded
commitments of $41,000. This compares to $354,000 for the same period
last year, representing a decrease of $19,000. 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 $289,000, or 23.23%, to $1,533,000 for
the three months ended March 31, 2026, compared to $1,244,000 for same
period of 2025. The increase is attributed to an increase in service
charges on deposit accounts, income from title insurance subsidiaries,
and an increase in gain on sale of mortgage loans.
-- Noninterest expense increased $423,000 from $5,702,000 at March 31, 2025,
to $6,125,000 at March 31, 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 1.33% for the first
quarter of 2026 compared to 0.95% for the same period of 2025. Annualized
return on average common equity ("ROE") was 13.02% for the first quarter
of 2026 compared to 9.77% for the same period of 2025.
Balance Sheet and Asset Quality
-- Total assets amounted to $938,035,000, an increase of $12,528,000, or
1.35% above total assets at December 31, 2025.
-- Debt securities available for sale decreased $4,903,000 from December 31,
2025. The decrease is primarily attributable to the maturity of
$3,500,000 in U.S. Treasury Notes, $500,000 in corporate bonds, and
$710,000 in municipal bonds during the first quarter of 2026. Net loans
increased $4,794,000, or 0.64%. Deposits increased $8,531,000, or
1.03%. The net effect of these balance sheet changes resulted in an
increase in cash and cash equivalents of $12,952,000, or 23.05%. The
Bank's loan to deposit ratio of 91.58%, on March 31, 2026, is a slight
decrease from 92.09% at December 31, 2025.
-- The Bank had no foreclosed properties at December 31, 2025, and March 31,
2026, respectively. Therefore, non-performing assets only consisted of
nonaccrual loans. With the addition of one Commercial and Industrial
loan, non-performing assets increased at March 31, 2026 to $120,000,
compared to $41,000 at December 31, 2025.
-- The allowance for credit losses to total loans was 1.13% on March 31,
2026, compared to 1.10% on December 31, 2025 and 1.20% at March 31, 2025.
-- Book value per share at March 31, 2026, was $45.41, an increase of $1.22
from year-end 2025.
Capital
As of March 31, 2026, Bank of Botetourt reported its CBLR ratio at 10.56% which meets the required regulatory minimum ratio. This compares to a CBLR ratio of 10.42% at December 31, 2025.
About Bank of Botetourt
Chartered 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 Botetourt
Balance Sheets, unconsolidated
March 31, 2026 (unaudited) and December 31, 2025
(unaudited) (audited)
March 31, December 31,
2026 2025
---------------- ----------------
Assets
Cash and Due from banks $ 11,606,000 $ 13,031,000
Interest-bearing deposits with banks 56,858,000 42,117,000
Federal funds sold 918,000 1,282,000
---------------- ----------------
Total cash and cash
equivalents 69,382,000 56,430,000
Debt securities held to maturity, net
of allowance 9,182,000 9,182,000
for credit losses of $18,000 at
March 31, 2026 and
December 31, 2025, respectively
Debt securities available for sale 65,059,000 69,962,000
Loans, net of allowance for credit
losses of $8,604,000 at 755,162,000 750,368,000
March 31, 2026 and $8,374,000 at
December 31, 2025.
Loans held for sale 359,000 1,737,000
Premises and fixed assets, net 17,911,000 16,515,000
Investment in unconsolidated
subsidiaries 3,567,000 3,517,000
Other assets 17,413,000 17,796,000
---------------- ----------------
Total assets 938,035,000 925,507,000
================ ================
Liabilities and Stockholders' Equity
Liabilities
Noninterest-bearing deposits $ 175,291,000 $ 166,954,000
Interest-bearing deposits 658,710,000 658,516,000
---------------- ----------------
Total deposits 834,001,000 825,470,000
Other liabilities 7,893,000 6,520,000
---------------- ----------------
Total liabilities 841,894,000 831,990,000
---------------- ----------------
Commitments and contingencies - -
Stockholders' Equity
Preferred stock, $1.00 par value;
1,000,000 shares
authorized; 243,659 issued and
outstanding
at March 31, 2026 and at December
31, 2025, respectively 244,000 244,000
Common stock, $1.50 par value;
5,000,000 shares
authorized; 1,973,394 and
1,970,230 issued and
outstanding at March 31, 2026 and
at December 31, 2025,
respectively 2,960,000 2,955,000
Additional paid-in capital 24,638,000 24,504,000
Retained earnings 70,308,000 67,834,000
Accumulated other comprehensive loss (2,009,000) (2,020,000)
---------------- ----------------
Total stockholders'
equity 96,141,000 93,517,000
---------------- ----------------
Total liabilities and
stockholders'
equity 938,035,000 925,507,000
================ ================
Bank of Botetourt Income Statement For the three months
ended March 31, 2026 and 2025 (Unaudited)
March 31
2026 2025
---------------------- ----------------------
Interest income
Loans and fees on loans $ 12,014,000 $ 10,443,000
Securities:
U.S. Treasury and
Government Agencies 125,000 154,000
Mortgage-backed
securities 133,000 56,000
All other securities 212,000 209,000
Due from depository
institutions 356,000 509,000
Federal Funds Sold 8,000 8,000
---------------------- ----------------------
Total
interest
income 12,848,000 11,379,000
---------------------- ----------------------
Interest expense
Deposits 4,048,000 3,994,000
---------------------- ----------------------
Total
interest
expense 4,048,000 3,994,000
---------------------- ----------------------
Net interest
Income 8,800,000 7,385,000
Provision for credit losses 335,000 354,000
---------------------- ----------------------
Net interest
income
after
credit loss
expense 8,465,000 7,031,000
---------------------- ----------------------
Noninterest income
Service charges on deposit
accounts 364,000 315,000
Securities brokerage and
annuities 79,000 75,000
Other income, net of gains
(losses) 1,090,000 854,000
---------------------- ----------------------
Total
noninterest
income 1,533,000 1,244,000
---------------------- ----------------------
Noninterest expense
Salaries and employee
benefits 2,622,000 2,331,000
Premises and fixed assets
expense 598,000 620,000
Other expense 2,905,000 2,751,000
---------------------- ----------------------
Total
noninterest
expense 6,125,000 5,702,000
---------------------- ----------------------
Income
before
income
taxes 3,873,000 2,573,000
---------------------- ----------------------
Income tax expense 787,000 529,000
---------------------- ----------------------
Net income 3,086,000 2,044,000
Preferred
stock
dividends 119,000 119,000
---------------------- ----------------------
Net income available to common
shareholders $ 2,967,000 $ 1,925,000
Basic earnings per share $ 1.50 $ 0.98
====================== ======================
Diluted earnings per share $ 1.50 $ 0.98
====================== ======================
Dividends declared per share $ 0.25 $ 0.225
====================== ======================
Basic weighted average shares
outstanding 1,971,742 1,962,321
====================== ======================
Diluted weighted average shares
outstanding 1,971,742 1,962,321
====================== ======================
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SOURCE Bank of Botetourt
(END) Dow Jones Newswires
April 30, 2026 08:30 ET (12:30 GMT)