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

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Apr 30, 2026, 08:30 ET

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
	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