Bank of Botetourt Exceeds Budget Expectations, Records Profitable 2025; Board Votes to Increase Dividend by 11.1%
BUCHANAN, Va., Jan. 29, 2026 /PRNewswire/ -- Buchanan-based Bank of Botetourt (OTC-PINK: BORT) and (OTC-PINK: BORTP) announced today its unaudited financial results for the three and twelve months ended December 31, 2025. The Bank produced net income amounting to $2,709,000 or $1.32 per basic share in the fourth quarter. This amount compares to net income of $1,954,000 or $0.94 per share, for the same period last year. For the twelve months ended December 31, 2025, the Bank produced net income amounting to $10,802,000 or $5.25 per basic share. This amount compares to a net income of $7,942,000 or $3.82 per share, for the same period last year.
At December 31, 2025, select financial information and key highlights include:
- Return on average assets of 1.22%
- Return on average equity of 12.29%
- Book value of $44.19
- Total deposit growth of 7.28%
- Total asset growth of 7.70%
- Total loan growth of 11.73%
- Community Bank Leverage Ratio of 10.42%
- Net Interest Margin of 3.64%
The Board of Directors voted to pay the 7.00% preferred dividend, which calculates to $0.49 per share on February 6, 2026, to preferred shareholders of record January 30, 2026. Furthermore, the Board of Directors voted to pay the $0.25 per share quarterly dividend, or $1.00 per share annualized, an increase of 11.1%, which is payable on February 17, 2026, to common shareholders of record February 10, 2026. President & CEO Michelle Austin stated "This was a strong year for Bank of Botetourt, with results that exceeded expectations and reflected the disciplined execution of our strategy. None of this would be possible without the trust of our customers, the support of our communities, and the dedication of our employees. As we look ahead, we remain focused on delivering long-term shareholder value while continuing to invest in the communities we are proud to serve."
Results of Operations
Net income for the three months ended December 31, 2025, was $2,709,000 compared to $1,954,000 for the same period last year, representing an increase of $755,000 or 38.64%. Basic and diluted earnings per share increased $0.38 from $0.94 at December 31, 2024, to $1.32 at December 31, 2025. The increase in net income is primarily due to $1,588,000 more interest and fees on loan income, $181,000 less expense on deposits and other borrowings, offset by $44,000 more provision for credit losses, and $121,000 less investment income.
For the three months ended December 31, 2025, the Bank recorded a provision for credit loss expense of $408,000 compared to $364,000 for the same period last year, representing an increase of $44,000. The provision recorded during the quarter primarily reflected allocations necessitated by net loan growth and adjustments to historical loss factors to better represent expectations for future credit losses. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.10% at the end of the quarter, down six basis points from the prior quarter and down eight basis points from one year prior.
At December 31, 2025, net loans increased 11.73%. Interest and fees on loans at December 31, 2025, increased $1,588,000 over the same three-month period of 2024. Interest expense decreased by $181,000 from $4,302,000 at December 31, 2024, to $4,121,000 at December 31, 2025. The lower interest expense is a result of lower interest rates paid on the balances of interest-bearing deposits than for the same period of 2024 and a decrease of interest on borrowed funds.
Noninterest income increased by $24,000, or 1.62%, to $1,510,000 for the three months ended December 31, 2025, compared to $1,486,000 for same period of 2024. The increase is attributed to an increase in service charges on deposit accounts, income from title insurance subsidiaries, gain on sale of mortgage loans, partially offset by a decrease in other income from the Bank's subsidiaries.
Noninterest expense increased $664,000 from $5,584,000 at December 31, 2024, to $6,248,000 at December 31, 2025. The increase is primarily related to increases in salary and employee benefits, debit card expense, and core processing expenses.
Income tax expense for the three months ended December 31, 2025, was $707,000 compared to $498,000 one year prior. The increase in tax expense is due to more revenue for the quarter.
Financial Condition
At December 31, 2025, total assets amounted to $923,097,000 compared to $857,073,000 at December 31, 2024, an increase of $66,024,000 or 7.70%. Total net loans increased $78,778,000 or 11.73% from $671,590,000 at December 31, 2024, to $750,368,000 at December 31, 2025. Total deposits at December 31, 2024, amounted to $767,221,000, compared to $823,058,000 at December 31, 2025, an increase of 7.28% or $55,837,000.
Stockholders' equity totaled $93,517,000 at December 31, 2025, compared to $82,510,000 at December 31, 2024. The $11,007,000 increase during the period is attributed to net income for 2025, net proceeds from the issuance of common stock from the Dividend Reinvestment and Stock Purchase Plan, a decrease in accumulated other comprehensive loss, partially offset by dividends paid.
Asset Quality
Bank of Botetourt's asset quality remained strong for the fourth quarter of 2025. Provision for credit losses for the fourth quarter of 2025 was $408,000 compared to $326,000 in the previous quarter and $364,000 in the same quarter of 2024.
The Bank had no foreclosed properties at December 31, 2025, and December 31, 2024, respectively. Therefore, non-performing assets only consisted of nonaccrual loans. Non-performing assets decreased $10,000, from $51,000 at December 31, 2024 to $41,000 at December 31, 2025. The decrease is attributable to the addition of three commercial and industrial loans, collateralized by commercial vehicles and a blanket UCC on equipment and two unsecured commercial and industrial loans, offset by the charge-off of the aforementioned loan additions. All loans that were added to non-accrual during 2025 were charged off prior to December 31, 2025. There were no loans added to nonaccrual loans during the fourth quarter. The decrease in nonaccrual loans is attributable to the new additions and the charge-off and payment activity of the aforementioned loans.
Net charge-offs during the fourth quarter of 2025 were $556,000 or seven basis points on total average loans outstanding. Net charge-offs for the fourth quarter of 2025 were comprised of charge-offs of $583,000, partially offset by recoveries of $27,000. Compared to December 31, 2024, net charge-offs increased $359,000 or five basis points on total average loans outstanding.
Capital Ratios
Bank of Botetourt qualified for and adopted the optional, simplified measure of capital adequacy, the community bank leverage ratio framework, consistent with Section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act. A qualifying community banking organization is defined as having less than $10 billion in total consolidated assets, a leverage ratio greater than 9%, off-balance sheet exposures of 25% or less of total consolidated assets, and trading assets and liabilities of 5% or less of total consolidated assets. It also cannot be an advanced approaches institution. Bank of Botetourt qualified to opt-in to the Community Bank Leverage Ratio ("CBLR"). As of December 31, 2025, Bank of Botetourt reported its CBLR ratio at 10.42% which meets the required regulatory minimum ratio. This compares to a CBLR ratio of 10.25% at December 31, 2024.
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.
(unaudited) | (audited) | |||
December 31, | December 31, | |||
2025 | 2024 | |||
Assets | ||||
Cash and Due from banks | $ 13,045,000 | $ 12,439,000 | ||
Interest-bearing deposits with banks | 42,103,000 | 53,381,000 | ||
Federal funds sold | 1,282,000 | 936,000 | ||
Total cash and cash equivalents | 56,430,000 | 66,756,000 | ||
Debt securities held to maturity, net of allowance | 9,182,000 | 9,982,000 | ||
for credit losses of $18,000 at December 31, 2025 and | ||||
December 31, 2024, respectively | ||||
Debt securities available for sale | 69,962,000 | 73,159,000 | ||
Restricted equity securities | 681,000 | 634,000 | ||
Loans, net of allowance for credit losses of $8,374,000 at | 750,368,000 | 671,590,000 | ||
December 31, 2025 and $7,989,000 at December 31, 2024. | ||||
Loans held for sale | 1,737,000 | - | ||
Premises and fixed assets, net | 16,515,000 | 17,356,000 | ||
Bank ownded life insurnace | 7,787,000 | 7,544,000 | ||
Accrued interest receivable | 2,886,000 | 2,633,000 | ||
Other assets | 7,549,000 | 7,419,000 | ||
Total assets | $ 923,097,000 | $ 857,073,000 | ||
Liabilities and Stockholders' Equity | ||||
Liabilities | ||||
Noninterest-bearing deposits | $ 164,542,000 | $ 179,420,000 | ||
Interest-bearing deposits | 658,516,000 | 587,801,000 | ||
Total deposits | 823,058,000 | 767,221,000 | ||
Accrued interest payable | 2,484,000 | 3,544,000 | ||
Other liabilities | 4,038,000 | 3,798,000 | ||
Total liabilities | 829,580,000 | 774,563,000 | ||
Commitments and contingencies | - | - | ||
Stockholders' Equity | ||||
Preferred stock, $1.00 par value; 1,000,000 shares | ||||
authorized; 243,659 issued and outstanding | ||||
at December 31, 2025 and at December 31, 2024, respectively | 244,000 | 244,000 | ||
Common stock, $1.50 par value; 5,000,000 shares | ||||
authorized; 1,970,230 and 1,960,879 issued and | ||||
outstanding at December 31, 2025 and at December 31, 2024 | ||||
respectively | 2,955,000 | 2,941,000 | ||
Additional paid-in capital | 24,504,000 | 24,198,000 | ||
Retained earnings | 67,834,000 | 59,277,000 | ||
Accumulated other comprehensive loss | (2,020,000) | (4,150,000) | ||
Total stockholders' equity | 93,517,000 | 82,510,000 | ||
Total liabilities and stockholders' equity | $ 923,097,000 | $ 857,073,000 |
Bank of Botetourt | |||||||
Consolidated Income Statement | |||||||
For the twelve months ended and three months ended December, 2025 and 2024 (Unaudited) | |||||||
Twelve Months Ended | Three Months Ended | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Interest income | |||||||
Loans and fees on loans | $ 44,455,000 | $ 37,603,000 | $ 11,822,000 | $ 10,234,000 | |||
Federal funds sold | 34,000 | 23,000 | 8,000 | 7,000 | |||
Securities: | |||||||
Taxable | 1,411,000 | 1,572,000 | 365,000 | 360,000 | |||
Exempt from federal income tax | 244,000 | 207,000 | 65,000 | 53,000 | |||
Dividend income | 48,000 | 107,000 | 11,000 | 28,000 | |||
Deposits with banks | 1,774,000 | 2,295,000 | 412,000 | 534,000 | |||
Total Interest income | 47,966,000 | 41,807,000 | 12,683,000 | 11,216,000 | |||
Interest expense | |||||||
Deposits | 15,764,000 | 15,029,000 | 4,120,000 | 4,220,000 | |||
Other borrowings | 19,000 | 825,000 | 1,000 | 82,000 | |||
Total Interest expense | 15,783,000 | 15,854,000 | 4,121,000 | 4,302,000 | |||
Net Interest Income | 32,183,000 | 25,953,000 | 8,562,000 | 6,914,000 | |||
Provision for credit losses | 1,221,000 | 918,000 | 408,000 | 364,000 | |||
Net Interest Income after credit loss expense | 30,962,000 | 25,035,000 | 8,154,000 | 6,550,000 | |||
Noninterest income | |||||||
Service charges on deposit accounts | 1,368,000 | 1,284,000 | 377,000 | 316,000 | |||
ATM and debit card | 2,140,000 | 1,871,000 | 516,000 | 479,000 | |||
Other service charges and fees | 896,000 | 818,000 | 218,000 | 217,000 | |||
Mortgage origination fees | 334,000 | 198,000 | 90,000 | 57,000 | |||
Other income, net of gains | 1,196,000 | 1,220,000 | 309,000 | 417,000 | |||
Total noninterest income | 5,934,000 | 5,391,000 | 1,510,000 | 1,486,000 | |||
Noninterest expense | |||||||
Salaries and employee benefits | 9,850,000 | 8,947,000 | 2,677,000 | 2,356,000 | |||
Occupancy | 1,233,000 | 1,002,000 | 276,000 | 233,000 | |||
Equipment | 1,277,000 | 1,077,000 | 318,000 | 319,000 | |||
Foreclosed assets, net | - | 45,000 | 163,000 | 46,000 | |||
Outside services | 3,171,000 | 2,771,000 | 819,000 | 770,000 | |||
FDIC insurance premiums and assessment | 504,000 | 477,000 | 126,000 | 125,000 | |||
ATM and debit card | 1,650,000 | 1,455,000 | 412,000 | 375,000 | |||
Franchise tax | 682,000 | 657,000 | 160,000 | 167,000 | |||
Telephone and communication | 351,000 | 320,000 | 87,000 | 76,000 | |||
Other professional fees | 277,000 | 240,000 | 72,000 | 56,000 | |||
Marketing | 1,234,000 | 870,000 | 357,000 | 286,000 | |||
Other operating expenses | 3,032,000 | 2,594,000 | 781,000 | 775,000 | |||
Total noninterest expense | 23,261,000 | 20,455,000 | 6,248,000 | 5,584,000 | |||
Income before income taxes | 13,635,000 | 9,971,000 | 3,416,000 | 2,452,000 | |||
Income tax expense | 2,833,000 | 2,029,000 | 707,000 | 498,000 | |||
Net income | 10,802,000 | 7,942,000 | 2,709,000 | 1,954,000 | |||
Preferred stock dividends | 478,000 | 478,000 | 119,000 | 119,000 | |||
Net income available to common shareholders | $ 10,324,000 | $ 7,464,000 | $ 2,590,000 | $ 1,835,000 | |||
Basic earnings per share | $ 5.25 | $ 3.82 | $ 1.32 | $ 0.94 | |||
Diluted earnings per share | $ 5.25 | $ 3.82 | $ 1.32 | $ 0.94 | |||
Dividends declared per share | $ 0.90 | $ 0.80 | $ 0.225 | $ 0.20 | |||
Basic weighted average shares outstanding | 1,965,975 | 1,956,428 | 1,969,240 | 1,959,791 | |||
Diluted weighted average shares outstanding | 1,965,975 | 1,956,428 | 1,969,240 | 1,959,791 | |||
SOURCE Bank of Botetourt
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