Bank of Botetourt announces second quarter financial results and quarterly cash dividend
Rhea-AI Summary
Bank of Botetourt (OTCQX: BORT, BORTP) reported unaudited second quarter 2026 net income of $5.3 million, or $2.62 per basic share, up from $3.17 million, or $1.55, a year earlier. Six‑month 2026 net income was $8.39 million, or $4.13 per share, versus $5.21 million, or $2.53, in 2025.
Results included a $3.8 million pre‑tax one‑time gain from the sale of Bearing Insurance Group units. Net interest margin rose to 4.02%; ROA and ROE were 1.79% and 17.31%. Total assets reached $939.4 million, net loans grew 3.01%, and deposits declined 0.48% since year‑end.
The board declared a quarterly $0.25 common dividend ($1.00 annualized) payable August 17, 2026, and a 7.00% preferred dividend of $0.49 per share payable August 7, 2026. Book value per share increased to $47.83, and the CBLR capital ratio was 11.00%. Nonperforming assets totaled $35,000 with no foreclosed properties.
Positive
- Q2 2026 net income $5.3M, up 67.3% year over year
- Six‑month 2026 net income $8.39M vs. $5.21M in 2025
- Net interest margin 4.02% in Q2 2026, up 49 bps vs. 2025
- Noninterest income up 117.5% to $3.55M in Q2 2026
- Book value per share $47.83, up $3.64 from year‑end 2025
- CBLR capital ratio 11.00% vs. 10.42% at December 31, 2025
- Net loans up $22.6M (3.01%) since December 31, 2025
- Nonperforming assets reduced to $35,000, no foreclosed properties
Negative
- Provision for credit losses $505,000 in Q2 2026 vs. $8,000 in 2025
- Deposits down $4.0M (0.48%) since December 31, 2025
- Noninterest expense up $500,000 to $6.07M in Q2 2026
- Other borrowings increased to $10.0M from $0 at year‑end 2025
- Earnings boosted by non‑recurring $3.8M pre‑tax gain from Bearing sale
AI-generated analysis. How Rhea-AI works. Not financial advice.
The second quarter results benefited from a significant one-time, non-recurring income event, which complemented another quarter of sound operating performance across our Bank. Bearing Insurance Group, LLC ("Bearing") completed its sale to BroadStreet Partners Group, LLC. Bank of Botetourt owned 3 units of Bearing and upon consummation of the sale recorded a one-time, pre-tax gain of
Second Quarter 2026 Highlights
Income Statement
- Net income of
$5,300,000 $2,132,000 67.30% , from the same time period in 2025. - Net interest margin for the second quarter of 2026 was
4.02% , an increase of 49 basis points over the same quarter of 2025. The increase is primarily driven by consistent asset yields and a lower cost of interest-bearing liabilities. - For the three months ended June 30, 2026, the Bank recorded a provision for credit loss expense of
$505,000 $86,000 $8,000 $497,000 - Noninterest income increased by
$1,919,000 117.51% , to$3,552,000 $1,633,000 - Noninterest expense increased
$500,000 $5,574,000 $6,074,000 - Annualized return on average assets ("ROA") was
1.79% for the second quarter of 2026 compared to1.19% for the same period of 2025. Annualized return on average common equity ("ROE") was17.31% for the second quarter of 2026 compared to12.08% for the same period of 2025.
Balance Sheet and Asset Quality
- Total unconsolidated assets amounted to
$939,409,000 $13,902,000 1.50% above total assets at December 31, 2025. - Debt securities available for sale decreased
$8,747,000 $9,500,000 $500,000 $710,000 $2,990,000 $785,000 - Net loans increased
$22,605,000 3.01% . Deposits decreased$4,002,000 0.48% ). The net effect of these balance sheet changes resulted in an decrease in cash and cash equivalents of$4,788,000 8.47% ). The Bank's loan to deposit ratio of94.10% , on June 30, 2026, is a2.01% increase from92.09% at December 31, 2025. - The Bank had no foreclosed properties at December 31, 2025, and June 30, 2026, respectively. Therefore, non-performing assets only consisted of nonaccrual loans. One commercial and industrial loan totaling
$83,000 $35,000 $41,000 - The allowance for credit losses to total loans was
1.14% on June 30, 2026, compared to1.10% on December 31, 2025 and1.18% at June 30, 2025. - Book value per share at June 30, 2026, was
$47.83 $3.64
Capital
As of June 30, 2026, Bank of Botetourt reported its CBLR ratio at
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.
Bank of Botetourt | ||||
(unaudited) | (audited) | |||
June 30, | December 31, | |||
2026 | 2025 | |||
Assets | ||||
Cash and due from banks | $ 12,168,000 | $ 13,031,000 | ||
Interest-bearing deposits with banks | 38,528,000 | 42,117,000 | ||
Federal funds sold | 946,000 | 1,282,000 | ||
Total cash and cash equivalents | 51,642,000 | 56,430,000 | ||
Debt securities held to maturity, net of allowance | 8,182,000 | 9,182,000 | ||
for credit losses of | ||||
December 31, 2025, respectively | ||||
Debt securities available for sale | 61,215,000 | 69,962,000 | ||
Loans, net of allowance for credit losses of | 772,973,000 | 750,368,000 | ||
June 30, 2026 and | ||||
Loans held for sale | 1,355,000 | 1,737,000 | ||
Premises and fixed assets, net | 18,118,000 | 16,515,000 | ||
Investment in unconsolidated subsidiaries | 5,564,000 | 3,517,000 | ||
Other assets | 20,360,000 | 17,796,000 | ||
Total assets | $ 939,409,000 | $ 925,507,000 | ||
Liabilities and Stockholders' Equity | ||||
Liabilities | ||||
Noninterest-bearing deposits | $ 185,220,000 | $ 166,954,000 | ||
Interest-bearing deposits | 636,248,000 | 658,516,000 | ||
Total deposits | 821,468,000 | 825,470,000 | ||
Other borrowings | 10,000,000 | - | ||
Other liabilities | 6,927,000 | 6,520,000 | ||
Total liabilities | 838,395,000 | 831,990,000 | ||
Commitments and contingencies | - | - | ||
Stockholders' Equity | ||||
Preferred stock, | ||||
authorized; 243,659 issued and outstanding | ||||
at June 30, 2026 and at December 31, 2025, respectively | 244,000 | 244,000 | ||
Common stock, | ||||
authorized; 1,975,193 and 1,970,230 issued and | ||||
outstanding at June 30, 2026 and at December 31, 2025, | ||||
respectively | 2,963,000 | 2,955,000 | ||
Additional paid-in capital | 24,720,000 | 24,504,000 | ||
Retained earnings | 74,996,000 | 67,834,000 | ||
Accumulated other comprehensive loss | (1,909,000) | (2,020,000) | ||
Total stockholders' equity | 101,014,000 | 93,517,000 | ||
Total liabilities and stockholders' equity | $ 939,409,000 | $ 925,507,000 | ||
Bank of Botetourt | |||||||
Six Months Ended | Three Months Ended | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Interest income | |||||||
Loans and fees on loans | $ 24,194,000 | $ 21,304,000 | $ 12,180,000 | $ 10,861,000 | |||
Securities: | |||||||
| 235,000 | 301,000 | 110,000 | 147,000 | |||
Mortgage-backed securities | 276,000 | 109,000 | 143,000 | 53,000 | |||
All other securities | 419,000 | 417,000 | 207,000 | 208,000 | |||
Due from depository institutions | 854,000 | 1,005,000 | 498,000 | 496,000 | |||
Federal funds sold | 16,000 | 17,000 | 8,000 | 9,000 | |||
Total Interest income | 25,994,000 | 23,153,000 | 13,146,000 | 11,774,000 | |||
Interest expense | |||||||
Deposits | 8,038,000 | 7,824,000 | 3,990,000 | 3,830,000 | |||
Other borrowings | 2,000 | - | 2,000 | - | |||
Total Interest expense | 8,040,000 | 7,824,000 | 3,992,000 | 3,830,000 | |||
Net Interest Income | 17,954,000 | 15,329,000 | 9,154,000 | 7,944,000 | |||
Provision for credit losses | 840,000 | 362,000 | 505,000 | 8,000 | |||
Net Interest Income after credit loss expense | 17,114,000 | 14,967,000 | 8,649,000 | 7,936,000 | |||
Noninterest income | |||||||
Service charges on deposit accounts | 725,000 | 634,000 | 361,000 | 319,000 | |||
Securities brokerage and annuities | 179,000 | 124,000 | 100,000 | 49,000 | |||
Other income, net of gains | 4,181,000 | 2,119,000 | 3,091,000 | 1,265,000 | |||
Total noninterest income | 5,085,000 | 2,877,000 | 3,552,000 | 1,633,000 | |||
Noninterest expense | |||||||
Salaries and employee benefits | 5,122,000 | 4,709,000 | 2,500,000 | 2,378,000 | |||
Premises and fixed assets expense | 1,170,000 | 1,187,000 | 572,000 | 567,000 | |||
Other expense | 5,907,000 | 5,380,000 | 3,002,000 | 2,629,000 | |||
Total noninterest expense | 12,199,000 | 11,276,000 | 6,074,000 | 5,574,000 | |||
Income before income taxes | 10,000,000 | 6,568,000 | 6,127,000 | 3,995,000 | |||
Income tax expense | 1,614,000 | 1,356,000 | 827,000 | 827,000 | |||
Net income | 8,386,000 | 5,212,000 | 5,300,000 | 3,168,000 | |||
Preferred stock dividends | 239,000 | 239,000 | 120,000 | 120,000 | |||
Net income available to common shareholders | $ 8,147,000 | $ 4,973,000 | $ 5,180,000 | $ 3,048,000 | |||
Basic earnings per share | $ 4.13 | $ 2.53 | $ 2.62 | $ 1.55 | |||
Diluted earnings per share | $ 4.13 | $ 2.53 | $ 2.62 | $ 1.55 | |||
Dividends declared per share | $ 0.50 | $ 0.45 | $ 0.25 | $ 0.225 | |||
Basic weighted average shares outstanding | 1,973,040 | 1,963,718 | 1,974,323 | 1,965,101 | |||
Diluted weighted average shares outstanding | 1,973,040 | 1,963,718 | 1,974,323 | 1,965,101 | |||
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SOURCE Bank of Botetourt