Bank of Botetourt Exceeds Budget Expectations, Records Profitable 2025; Board Votes to Increase Dividend by 11.1%

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Jan 29, 2026, 08:30 ET

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 December 31,		Three Months Ended December 31,
	Twelve Months Ended December 31,		Three Months Ended December 31,
	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