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

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Jul 30, 2026, 08:30 ET

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 Highlights

Income Statement

Net 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 Quality

Total 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.

Capital

As 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 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 June 30, 2026 (unaudited) and December 31, 2025

	(unaudited)	(audited)
	June 30,	December 31,
	2026	2025
Assets

Cash and due from banks	$ 12,168,000	$ 13,031,000
Interest-bearing deposits with banks	38,528,000	42,117,000
Federal funds sold	946,000	1,282,000
Total cash and cash equivalents	51,642,000	56,430,000
Debt securities held to maturity, net of allowance	8,182,000	9,182,000
for credit losses of $18,000 at June 30, 2026 and
December 31, 2025, respectively
Debt securities available for sale	61,215,000	69,962,000
Loans, net of allowance for credit losses of $8,899,000 at	772,973,000	750,368,000
June 30, 2026 and $8,374,000 at December 31, 2025.
Loans held for sale	1,355,000	1,737,000
Premises and fixed assets, net	18,118,000	16,515,000
Investment in unconsolidated subsidiaries	5,564,000	3,517,000
Other assets	20,360,000	17,796,000
Total assets	$ 939,409,000	$ 925,507,000

Liabilities and Stockholders' Equity
Liabilities
Noninterest-bearing deposits	$ 185,220,000	$ 166,954,000
Interest-bearing deposits	636,248,000	658,516,000
Total deposits	821,468,000	825,470,000

Other borrowings	10,000,000	-
Other liabilities	6,927,000	6,520,000
Total liabilities	838,395,000	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 June 30, 2026 and at December 31, 2025, respectively	244,000	244,000
Common 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,
respectively	2,963,000	2,955,000
Additional paid-in capital	24,720,000	24,504,000
Retained earnings	74,996,000	67,834,000
Accumulated other comprehensive loss	(1,909,000)	(2,020,000)
Total stockholders' equity	101,014,000	93,517,000
Total liabilities and stockholders' equity	$ 939,409,000	$ 925,507,000

Bank of Botetourt Income Statement For the six months ended and three months ended June 30, 2026 and 2025 (Unaudited)

	Six Months Ended June 30,		Three Months Ended June 30,
	Six Months Ended June 30,		Three Months Ended June 30,
	2026	2025	2026	2025
Interest income
Loans and fees on loans	$ 24,194,000	$ 21,304,000	$ 12,180,000	$ 10,861,000
Securities:
U.S. Treasury and Government Agencies	235,000	301,000	110,000	147,000
Mortgage-backed securities	276,000	109,000	143,000	53,000
All other securities	419,000	417,000	207,000	208,000
Due from depository institutions	854,000	1,005,000	498,000	496,000
Federal funds sold	16,000	17,000	8,000	9,000
Total Interest income	25,994,000	23,153,000	13,146,000	11,774,000

Interest expense
Deposits	8,038,000	7,824,000	3,990,000	3,830,000
Other borrowings	2,000	-	2,000	-
Total Interest expense	8,040,000	7,824,000	3,992,000	3,830,000
Net Interest Income	17,954,000	15,329,000	9,154,000	7,944,000

Provision for credit losses	840,000	362,000	505,000	8,000
Net Interest Income after credit loss expense	17,114,000	14,967,000	8,649,000	7,936,000

Noninterest income
Service charges on deposit accounts	725,000	634,000	361,000	319,000
Securities brokerage and annuities	179,000	124,000	100,000	49,000
Other income, net of gains	4,181,000	2,119,000	3,091,000	1,265,000
Total noninterest income	5,085,000	2,877,000	3,552,000	1,633,000

Noninterest expense
Salaries and employee benefits	5,122,000	4,709,000	2,500,000	2,378,000
Premises and fixed assets expense	1,170,000	1,187,000	572,000	567,000
Other expense	5,907,000	5,380,000	3,002,000	2,629,000
Total noninterest expense	12,199,000	11,276,000	6,074,000	5,574,000
Income before income taxes	10,000,000	6,568,000	6,127,000	3,995,000

Income tax expense	1,614,000	1,356,000	827,000	827,000
Net income	8,386,000	5,212,000	5,300,000	3,168,000
Preferred stock dividends	239,000	239,000	120,000	120,000
Net income available to common shareholders	$ 8,147,000	$ 4,973,000	$ 5,180,000	$ 3,048,000

Basic earnings per share	$ 4.13	$ 2.53	$ 2.62	$ 1.55
Diluted earnings per share	$ 4.13	$ 2.53	$ 2.62	$ 1.55
Dividends declared per share	$ 0.50	$ 0.45	$ 0.25	$ 0.225
Basic weighted average shares outstanding	1,973,040	1,963,718	1,974,323	1,965,101
Diluted weighted average shares outstanding	1,973,040	1,963,718	1,974,323	1,965,101