Bank of Botetourt's 2017 Net Income Increases 1.3%; Witnesses Double Digit Loan and Deposit Growth
BUCHANAN, Va., March 6, 2018 /PRNewswire/ -- Bank of Botetourt (OTCPK: BORT) announced today its consolidated financial results and performance for fiscal period ended December 31, 2017.
For the year-ended December 31, 2017, Bank of Botetourt reported net income of $2.28 million, compared to $2.25 million for the same time period in 2016, an increase of 1.3% and surpassing budget expectations by 1.6%. Earnings for the year resulted in a return on average assets of 0.6% and a return on average equity of 6.6%, compared to prior year ratios of 0.7% and 6.8%, respectively. Both basic and diluted earnings per share increased $0.02 per share from $1.58 in 2016 to $1.60 in 2017. Book value of the Bank's stock increased $0.84 per share from $23.66 at December 31, 2016 to $24.50 at December 31, 2017.
As a result of the continued positive financial performance, the quarterly dividend increased 7.1% from $0.14 per share to $0.15 per share in February 2018. CEO G. Lyn Hayth, III stated "Providing a return on investment to shareholders is one of our top priorities. The vote by our Board to again increase the dividend solidifies our commitment to this goal."
At December 31, 2017, total assets amounted to $387,736,000, an increase of 12.0% from the same time period of 2016 of $346,335,000. Total deposits for the year-end 2017 amounted to $341,000,000, compared to $309,863,000 for the prior year, an increase of 10.0%. Net loans grew 16.7% to $337,665,000 in 2017 from $289,416,000 in 2016.
Bank of Botetourt remains well-capitalized as we report consolidated total capital to risk-weighted assets at 11.9%, consolidated tier 1 to risk-weighted assets and consolidated tier one common equity capital of 10.9%, respectively, and tier 1 leverage capital to average assets of 9.4% at year-end 2017.
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 the Bank the opportunity to maintain capital at appropriate levels.
Last month, the Bank announced that Raymond James and Associates is quoting a market in Bank of Botetourt, under the symbol BORT, on the Over the Counter Markets. Hayth continued
"We hope that this action will provide shareholders additional liquidity for their shares".
Bank of Botetourt announced at its website some new initiatives during the first quarter. These include a reissuance of debit cards with EMV chip technology, two-way text for fraud alerts, and a $500 "Taking Care of You" Community Scholarship available to high school seniors and existing college students relying on Bank of Botetourt to provide their banking services.
Bank of Botetourt was chartered in 1899 and operates twelve retail offices in Botetourt, Rockbridge, Roanoke, and Franklin counties and the City of Salem, all in Virginia. Bank of Botetourt also operates a mortgage division, Virginia Mountain Mortgage and a financial services division, Botetourt Wealth Management.
SOURCE Bank of Botetourt
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