Bank of Botetourt reports financial results for the third quarter

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October 30, 2025 8:30 AM EDT

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BUCHANAN, Va., Oct. 30, 2025 /PRNewswire/ -- Buchanan-based Bank of Botetourt (OTCPK: BORT and BORTP) announced today its unaudited financial results for the three and nine months-ended September 30, 2025. The Bank produced net income amounting to $2,882,000 or $1.40 per basic share in the third quarter. This amount compares to net income of $1,967,000 or $0.94 per share, for the same period last year. For the nine months-ended the Bank produced net income amounting to $8,094,000 or $3.94 per basic share. This amount compares to a net income of $5,988,000 or $2.88 per share, for the same period last year.

At September 30, 2025, select financial information and key highlights include:

Return on average assets of 1.23%
Return on average equity of 12.48%
Book value of $42.86
Total deposit growth of 1.23%
Total asset growth of 4.61%
Total loan growth of 8.38%
Community Bank Leverage Ratio of 10.57%
Net Interest Margin of 3.76%

The Board of Directors voted to pay the 7.00% preferred dividend, which calculates to $0.49 per share on November 7, 2025, to preferred shareholders of record October 31, 2025. Furthermore, the Board of Directors voted to pay the $0.225 per common share quarterly dividend, or $0.90 per share annualized, which is payable on November 17, 2025, to common shareholders of record November 10, 2025. President & CEO Michelle Austin stated "Our third quarter results reflect the continued strength of our Bank and the disciplined execution of our strategic priorities. We remain focused on delivering long-term value to our shareholders while staying deeply committed to the communities we serve. I'm proud of our team's efforts and the positive impact we're making across our markets."

Results of Operations

Net income for the three months ended September 30, 2025, was $2,882,000 compared to $1,967,000 for the same period last year, representing an increase of $915,000 or 46.52%. Basic and diluted earnings per share increased $0.46 from $0.94 at September 30, 2024, to $1.40 at September 30, 2025. The increase in net income is primarily due to $1,585,000 more interest income, $234,000 less interest on other borrowings, $125,000 more noninterest income, offset by $52,000 more interest expense on deposits, $818,000 more noninterest expense, and $244,000 more income tax expense.

For the three months ended September 30, 2025, the Bank recorded a provision for credit loss expense of $326,000 and a reserve for unfunded commitments of $(22,000), which is included in other expenses. This compares to $411,000 for the same period last year, representing a decrease of $85,000. 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. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.16% at the end of the quarter, down two basis points from the prior quarter and from one year prior.

At September 30, 2025, net loans increased 8.38%. Interest and fees on loans at September 30, 2025, increased $1,716,000 over the same three-month period of 2024. Interest expense decreased by $182,000 from $4,021,000 at September 30, 2024, to $3,839,000 at September 30, 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 $125,000, or 9.25%, to $1,476,000 for the three months ended September 30, 2025, compared to $1,351,000 for same period of 2024. The increase is attributed to an increase in income from title insurance subsidiaries, an increase in gain on sale of mortgage loans, offset by a slight decrease in service charges on deposit accounts.

Noninterest expense increased $818,000 from $5,043,000 at September 30, 2024, to $5,861,000 at September 30, 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 September 30, 2025, was $697,000 compared to $453,000 one year prior. The $244,000 increase in tax expense is due to more revenue for the quarter.

Financial Condition

At September 30, 2025, total assets amounted to $898,809,000, an increase of 4.61% above total assets at December 31, 2024 of $859,237,000, an increase of $39,572,000. Total net loans increased $56,297,000 or 8.38% from $671,590,000 at December 31, 2024, to $727,887,000 at September 30, 2025. Total deposits at December 31, 2024, amounted to $769,386,000, compared to $778,871,000 at September 30, 2025, an increase of 1.23% or $9,485,000.

Stockholders' equity totaled $90,866,000 at September 30, 2025, compared to $82,510,000 at December 31, 2024. The $8,356,000 increase during the period is net income for 2025, net proceeds from the issuance of common stock from the Dividend Reinvestment and Stock Purchase Plan, and a decrease in accumulated other comprehensive loss, partially offset by dividends paid.

Asset Quality

Bank of Botetourt's asset quality remained strong for the third quarter of 2025. Provision for credit losses for the third quarter of 2025 was $326,000 compared with $8,000 in the previous quarter and $411,000 in the same quarter of 2024.

The Bank had no foreclosed properties at December 31, 2024, and September 30, 2025, respectively. Therefore, non-performing assets only consisted of nonaccrual loans. Non-performing assets increased at September 30, 2025, from $51,000 at December 31, 2024 to $609,000 at September 30, 2025. The increase is attributable to the addition of three commercial and industrial loans, collateralized by commercial vehicles and a blanket UCC on equipment, two unsecured commercial and industrial loans, offset by a charge-off of one commercial and industrial loan that was added in the second quarter. Two commercial and industrial loans totaling $83,000 were added to nonaccrual loans during the third quarter. The increase 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 third quarter of 2025 were $176,000 or three basis points annualized on total average loans outstanding. Net charge-offs for the third quarter of 2025 were comprised of charge-offs of $227,000, partially offset by recoveries of $51,000. Compared to December 31, 2024, net charge-offs decreased $21,000 or one basis points annualized on total average loans outstanding.

Capital Ratios

Bank of Botetourt qualified for and adopted the optional, simplified measure of capital adequacy and, 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 September 30, 2025, Bank of Botetourt reported its CBLR ratio at 10.57% 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)
	September 30,	December 31,
	2025	2024
Assets

Cash and Due from banks	$ 13,807,000	$ 12,390,000
Interest-bearing deposits with banks	39,220,000	53,430,000
Federal funds sold	839,000	936,000
Total cash and cash equivalents	53,866,000	66,756,000
Debt securities held to maturity, net of allowance	9,982,000	9,982,000
for credit losses of $18,000 at September 30, 2025 and
December 31, 2024, respectively
Debt securities available for sale	67,271,000	73,159,000
Loans, net of allowance for credit losses of $8,523,000 at	727,887,000	671,590,000
September 30, 2025 and $7,989,000 at December 31, 2024.
Loans held for sale	425,000	-
Premises and fixed assets, net	17,755,000	17,356,000
Investment in unconsolidated subsidiaries	3,538,000	3,257,000
Other assets	18,085,000	17,137,000
Total assets	$ 898,809,000	$ 859,237,000

Liabilities and Stockholders' Equity
Liabilities
Noninterest-bearing deposits	$ 173,147,000	$ 181,585,000
Interest-bearing deposits	605,724,000	587,801,000
Total deposits	778,871,000	769,386,000

Other borrowings	22,000,000	-
Other liabilities	7,072,000	7,341,000
Total liabilities	807,943,000	776,727,000

Commitments and contingencies	-	-

Stockholders' Equity
Preferred stock, $1.00 par value; 1,000,000 shares
authorized; 243,659 issued and outstanding
at September 30, 2025 and at December 31, 2024, respectively	244,000	244,000
Common stock, $1.50 par value; 5,000,000 shares
authorized; 1,968,293 and 1,960,879 issued and
outstanding at September 30, 2025 and at December 31, 2024
respectively	2,952,000	2,941,000
Additional paid-in capital	24,431,000	24,198,000
Retained earnings	65,687,000	59,277,000
Accumulated other comprehensive loss	(2,448,000)	(4,150,000)
Total stockholders' equity	90,866,000	82,510,000
Total liabilities and stockholders' equity	$ 898,809,000	$ 859,237,000

	Nine Months Ended September 30,		Three Months Ended September 30,
	Nine Months Ended September 30,		Three Months Ended September 30,
	2025	2024	2025	2024
Interest income
Loans and fees on loans	$ 32,633,000	$ 27,369,000	$ 11,329,000	$ 9,613,000
Securities:
U.S. Treasury and Government Agencies	441,000	582,000	140,000	188,000
Mortgage-backed securities	191,000	195,000	82,000	62,000
All other securities	622,000	650,000	205,000	216,000
Due from depository institutions	1,370,000	1,779,000	365,000	458,000
Federal funds sold	25,000	16,000	8,000	7,000
Total Interest income	35,282,000	30,591,000	12,129,000	10,544,000

Interest expense
Deposits	11,645,000	10,809,000	3,821,000	3,769,000
Other borrowings	18,000	743,000	18,000	252,000
Total Interest expense	11,663,000	11,552,000	3,839,000	4,021,000
Net Interest Income	23,619,000	19,039,000	8,290,000	6,523,000

Provision for credit losses	688,000	513,000	326,000	411,000
Net Interest Income after credit loss expense	22,931,000	18,526,000	7,964,000	6,112,000

Noninterest income
Service charges on deposit accounts	976,000	963,000	342,000	351,000
Securities brokerage and annuities	204,000	297,000	80,000	111,000
Other income, net of gains	3,173,000	2,607,000	1,054,000	889,000
Total noninterest income	4,353,000	3,867,000	1,476,000	1,351,000

Noninterest expense
Salaries and employee benefits	7,173,000	6,590,000	2,464,000	2,213,000
Premises and fixed assets expense	1,806,000	1,469,000	619,000	499,000
Other expense	8,158,000	6,854,000	2,778,000	2,331,000
Total noninterest expense	17,137,000	14,913,000	5,861,000	5,043,000
Income before income taxes	10,147,000	7,480,000	3,579,000	2,420,000

Income tax expense	2,053,000	1,492,000	697,000	453,000
Net income	8,094,000	5,988,000	2,882,000	1,967,000
Preferred stock dividends	358,000	358,000	119,000	119,000
Net income available to common shareholders	$ 7,736,000	$ 5,630,000	$ 2,763,000	$ 1,848,000

Basic earnings per share	$ 3.94	$ 2.88	$ 1.40	$ 0.94
Diluted earnings per share	$ 3.94	$ 2.88	$ 1.40	$ 0.94
Dividends declared per share	$ 0.675	$ 0.60	$ 0.225	$ 0.20
Basic weighted average shares outstanding	1,964,889	1,955,299	1,967,206	1,957,708
Diluted weighted average shares outstanding	1,964,889	1,955,299	1,967,206	1,957,708

View original content:https://www.prnewswire.com/news-releases/bank-of-botetourt-reports-financial-results-for-the-third-quarter-302593970.html

SOURCE Bank of Botetourt

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