BUCHANAN, Va., Feb. 28, 2017 /PRNewswire/ -- Bank of Botetourt (OTCPK: BORT) announced today its consolidated financial results and performance for fiscal period ended December 31, 2016.
For the year-ended December 31, 2016, Bank of Botetourt reported net income of $2.25 million, compared to $2.66 million for the same time period in 2015, a decrease of 15.4%. While net income declined, the bank surpassed budget expectations by 1.33%. Earnings for the year resulted in a return on average assets of 0.7% and a return on average equity of 6.8%, compared to prior year ratios of 0.8% and 8.5%, respectively. Both basic and diluted earnings per share decreased $0.30 per share from $1.88 in 2015 to $1.58 in 2016. Book value of the Bank's stock increased $0.95 from $22.71 at December 31, 2015 to $23.66 at December 31, 2016.
As a result of the continued positive financial performance, the dividend increased 16.7% from $0.12 per share to $0.14 per share in February 2017. CEO G. Lyn Hayth, III states "This action shows our Board of Directors' commitment to providing a return to shareholders as one of its top priorities. Our Board and Management deem that earnings and capital level trends have been sustained over time and another increase in dividend payment is warranted."
At December 31, 2016, total assets amounted to $346,335,000, an increase of 7.6% from the same time period of 2015 of $321,796,000. Total deposits for the year-end 2016 amounted to $309,863,000, compared to $287,123,000 for the prior year, an increase of 7.9%. Net loans grew 7.3%, to $289,416,000 in 2016 from $269,775,000 in 2015.
The BASEL III conservation buffer became effective for the Bank in 2016, requiring even more capital to meet regulatory expectations. Bank of Botetourt remains well-capitalized as we report consolidated total capital to risk-weighted assets at 12.9%, consolidated tier 1 to risk-weighted assets and consolidated tier one common equity capital of 11.9%, respectively, and tier 1 leverage capital to average assets of 9.8% at year-end 2016.
Shareholders continue to take advantage of the Dividend Reinvestment and Stock Purchase Plan. This plan gives shareholders the opportunity to increase their investment in an efficient, cost effective manner while providing the Bank the opportunity to maintain capital at appropriate levels. Participation in the plan surpassed another all-time high in 2016.
Bank of Botetourt was chartered in 1899 and operates twelve retail offices in Botetourt, Rockbridge, Roanoke, and Franklin counties and the City of Salem, all in Virginia and operates a mortgage division, Virginia Mountain Mortgage.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/bank-of-botetourt-exceeds-2016-budget-by-133-300413987.html
SOURCE Bank of Botetourt