BUCHANAN, Va., April 27, 2015 /PRNewswire/ -- Bank of Botetourt (OTCQB: BORT) announced today its consolidated financial results and performance for fiscal period ended December 31, 2014.
For the year-ended December 31, 2014, Bank of Botetourt reported net income of $2.39 million, compared to $1.98 million for the same time period in 2013, an increase of 20.8%. Earnings for the year resulted in a return on average assets of 0.8% and a return on average equity of 8.2%, compared to prior year ratios of 0.7% and 7.3%, respectively. Both basic and diluted earnings per share increased $0.29 per share from $1.40 in 2013 to $1.69 in 2014. Book value was $21.21 at December 31, 2014 as compared to $20.04 one year prior.
As a result of the continued positive financial performance, the Board of Directors doubled the dividend from $0.05 per share to $0.10 per share on February 20, 2015. "This action shows our Board of Directors' commitment to providing a return to shareholders as one of its top priorities. Our Board and management team deem that earnings and capital level trends have been sustained over time and an increased dividend payment is warranted," stated G. Lyn Hayth, III, President & CEO.
At December 31, 2014, total assets amounted to $313,001,000, an increase of 2.2% from the same time period of 2013 of $306,396,000. Total deposits for the year-end 2014 amounted to $281,020,000, compared to $276,398,000 for the prior year, an increase of 1.7%. Net loans grew 2.1%, to $245,279,000 in 2014 from $240,153,000 in 2013.
The current allowance for loan losses remained sufficient, without additional provisions in 2014, as a result of improved asset quality and stable real estate values. Net charge-offs for the year declined by 75.3% from the 2013 level. "Our Bank has also seen a significant improvement in loan delinquencies and defaults during the past two years," stated Hayth.
There is a continued regulatory push aimed at maintaining the banking industry's capital levels at higher thresholds, levels unprecedented prior to the recession. Known as BASEL III, the new capital standards will be effective for the Bank in 2015. Bank of Botetourt reported consolidated total risk based capital at 14.2%, as of December 31, 2014, up from 13.5% one year ago. Additionally, consolidated tier 1 capital grew from 9.2% at year-end 2013 to 9.6% at year-end 2014. "Our Bank remains well-capitalized according to regulatory standards," stated Hayth.
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 us the opportunity to maintain capital at appropriate levels. Participation in the plan reached an all-time high in 2014.
President Hayth summarized, "Since the economic recession, our earnings, asset quality, and capital ratios have been restored. It's an exciting time for us now. Mobile banking has had a high rate of adoption by our customers and the new Daleville Town Center branch construction has begun."
Bank of Botetourt was chartered in 1899 and operates ten full service offices in Botetourt, Rockbridge, Roanoke, and Franklin counties of Virginia.
SOURCE Bank of Botetourt