Bank of Botetourt announces third quarter financial results and quarterly cash dividend

Quarterly common dividends declared per share rose to $0.25 from $0.225 a year earlier.

Rhea-AI Summary

Bank of Botetourt (OTCQX: BORT and BORTP) reported third-quarter net income of $3,969,000, up 37.72% from a year earlier. Basic earnings per share rose to $1.95 from $1.40. Nine-month net income reached $12,355,000 versus $8,094,000, with basic earnings per share of $6.08 versus $3.94. Results are unaudited.

Third-quarter net interest margin increased 35 basis points to 4.11%. Noninterest income rose 19.31%, while noninterest expense increased $274,000. Since year-end, net loans grew 4.15% and deposits grew 0.64%; nonperforming assets increased to $75,000 from $41,000. The community bank leverage ratio reached 11.29%, meeting the regulatory minimum.

The bank declared a $0.25 common dividend payable November 16, 2026, to holders of record November 9. A $0.49 preferred dividend is payable November 6, 2026, to holders of record October 30.

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• Moderate pointThird-quarter net income rose 37.72% to $3,969,000; basic earnings per share increased to $1.95 from $1.40.
• Moderate pointThird-quarter net interest income increased to $9,581,000 from $8,290,000 a year earlier.
• Moderate pointThird-quarter net interest margin expanded 35 basis points to 4.11% year over year.
• Moderate pointThird-quarter noninterest income increased 19.31% to $1,761,000 from $1,476,000 a year earlier.
• Moderate pointThird-quarter credit-loss provision decreased to $204,000 from $326,000 a year earlier.
• Moderate pointThird-quarter annualized return on average assets improved to 1.76% from 1.23% a year earlier.
• Moderate pointThird-quarter annualized return on average common equity increased to 16.70% from 12.48% a year earlier.
• Moderate pointTotal assets increased 1.75% to $941,677,000 from December 31, 2025.
• Moderate pointNet loans increased 4.15% to $781,507,000 from December 31, 2025.
• Moderate pointDeposits increased 0.64% to $830,753,000 from December 31, 2025.
• Moderate pointBook value per share reached $49.29, up $5.10 from year-end 2025.
• Moderate pointCommunity bank leverage ratio rose to 11.29% from 10.42% at year-end 2025, meeting the regulatory minimum.

5 minor points

• Minor pointNine-month net income increased to $12,355,000 from $8,094,000; basic earnings per share rose to $6.08 from $3.94.
• Minor pointNine-month net interest income increased to $27,535,000 from $23,619,000 a year earlier.
• Minor pointNine-month noninterest income rose to $6,846,000 from $4,353,000 a year earlier.
• Minor pointQuarterly common dividends declared increased to $0.25 from $0.225 per share a year earlier.
• Minor pointNine-month common dividends declared increased to $0.75 from $0.675 per share a year earlier.

Negative

• Moderate pointThird-quarter noninterest expense increased $274,000 to $6,135,000 from $5,861,000 a year earlier.
• Minor pointNine-month noninterest expense increased to $18,334,000 from $17,137,000 a year earlier.
• Minor pointNine-month credit-loss provision increased to $1,044,000 from $688,000 a year earlier.
• Minor pointNonperforming assets increased to $75,000 from $41,000 at year-end 2025.
• Minor pointCash and cash equivalents decreased $236,000, or 0.42%, from December 31, 2025.
• Minor pointAccumulated other comprehensive loss widened to $2,418,000 from $2,020,000 at December 31, 2025.

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BUCHANAN, Va., Oct. 29, 2026 /PRNewswire/ -- Buchanan-based Bank of Botetourt (OTCQX: BORT and BORTP) announced today its unaudited financial results for the three and nine months-ended September 30, 2026. The Bank produced net income amounting to $3,969,000 or $1.95 per basic share in the third quarter. This amount compares to net income of $2,882,000 or $1.40 per share, for the same period last year.  For the nine months-ended the Bank produced net income amounting to $12,355,000 or $6.08 per basic share. This amount compares to a net income of $8,094,000 or $3.94 per share, for the same period last year.  The Board of Directors voted to pay the 7.00% preferred dividend, which calculates to $0.49 per share on November 6, 2026, to preferred shareholders of record October 30, 2026.  Furthermore, the Board of Directors voted to pay the $0.25 per share quarterly dividend, or $1.00 per share annualized, which is payable on November 16, 2026, to common shareholders of record November 9, 2026.

President & CEO, Michelle Austin stated, "We are pleased to report another successful quarter of strong financial performance, reflecting the continued strength and the disciplined execution of our long-term strategy. Our results demonstrate steady growth across the organization while maintaining our commitment to serving customers with the personalized banking experience they expect from Bank of Botetourt. We remain focused on creating long-term shareholder value, supporting the communities we serve, and investing in opportunities that position the Bank for continued success. I would like to thank our customers for their trust, our shareholders for their investment, and our employees for their dedication, professionalism, and commitment to excellence each day." 

Third Quarter 2026 Highlights

Income Statement

• Net income of $3,969,000 for the third quarter of 2026, an increase of $1,087,000, or 37.72%, from the same time period in 2025.

• Net interest margin for the third quarter of 2026 was 4.11%, an increase of 35 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 September 30, 2026, the Bank recorded a provision for credit loss expense of $204,000 including a reserve for unfunded commitments of $72,000. This compares to $326,000 for the same period last year, representing a decrease of $122,000.  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. 

• Noninterest income increased by $285,000, or 19.31%, to $1,761,000 for the three months ended September 30, 2026, compared to $1,476,000 for same period of 2025.  The increase is attributed to an increase in service charges on deposit accounts and an increase in gain on sale of mortgage loans. 

• Noninterest expense increased $274,000 from $5,861,000 at September 30, 2025, to $6,135,000 at September 30, 2026.  The increase is primarily related to increases in salaries and employee benefits, debit card expense, and core processing expenses.

• Annualized return on average assets ("ROA") was 1.76% for the third quarter of 2026 compared to 1.23% for the same period of 2025. Annualized return on average common equity ("ROE") was 16.70% for the third quarter of 2026 compared to 12.48% for the same period of 2025.

Balance Sheet and Asset Quality

• Total unconsolidated assets amounted to $941,677,000, an increase of $16,170,000, or 1.75% above total assets at December 31, 2025 of $925,507,000.

• Debt securities available for sale decreased $20,927,000 from December 31, 2025.  The decrease is primarily attributable to the maturity of $22,000,000 in low yielding agency securities, $1,000,000 in corporate bonds, and $2,400,000 in municipal bonds, offset by the purchase of $5,175,000 mortgage-backed securities, $785,000 municipal bonds, $1,000,000 treasury notes, and $1,000,000 agency securities during the first nine months of 2026. 

• Net loans increased $31,139,000, or 4.15%.  Deposits increased $5,283,000, or 0.64%.  The net effect of these balance sheet changes resulted in a decrease in cash and cash equivalents of $236,000, or (0.42%).  The Bank's loan to deposit ratio of 94.07%, on September 30, 2026, is a 1.98% increase from 92.09% at December 31, 2025.

• The Bank had no foreclosed properties at December 31, 2025, and September 30, 2026, respectively.  Therefore, non-performing assets only consisted of nonaccrual loans.  One commercial and industrial loan totaling $44,000 was added during the third quarter, offset by continued payments on the existing non-performing assets, therefore, non-performing assets increased at September 30, 2026, to $75,000, compared to $41,000 at December 31, 2025. 

• The allowance for credit losses to total loans was 1.13% of total loans on September 30, 2026, compared to 1.10% on December 31, 2025 and 1.16% at September 30, 2025.

• Book value per share at September 30, 2026, was $49.29, an increase of $5.10 from year-end 2025.

Capital

As of September 30, 2026, Bank of Botetourt reported its CBLR ratio at 11.29% which meets the required regulatory minimum ratio. This compares to a CBLR ratio of 10.42% at December 31, 2025.

About Bank of Botetourt

Founded in 1899, Bank of Botetourt is a full-service community bank dedicated to helping individuals, families, businesses, and organizations achieve their financial goals through personalized service, local decision-making, and trusted relationships. Offering personal banking, business banking, mortgage lending, and wealth management services throughout western Virginia, the Bank is known for its award-winning service, financial strength, and unwavering commitment to the communities it serves. For more than 125 years, Bank of Botetourt has remained focused on delivering exceptional customer experiences while supporting the economic vitality of the region.

Bank of Botetourt Balance Sheets, unconsolidated September 30, 2026 (unaudited) and December 31, 2025
		(unaudited)		(audited)
		September 30,		December 31,
		2026		2025
Assets
Cash and due from banks		$             13,323,000		$             13,031,000
Interest-bearing deposits with banks		42,141,000		42,117,000
Federal funds sold		730,000		1,282,000
Total cash and cash equivalents		56,194,000		56,430,000
Debt securities held to maturity, net of allowance		8,832,000		9,182,000
for credit losses of $18,000 at September 30, 2026 and
December 31, 2025, respectively
Debt securities available for sale		49,035,000		69,962,000
Loans, net of allowance for credit losses of $8,952,000 at		781,507,000		750,368,000
September 30, 2026 and $8,374,000 at December 31, 2025.
Loans held for sale		1,361,000		1,737,000
Premises and fixed assets, net		18,252,000		16,515,000
Investment in unconsolidated subsidiaries		5,620,000		3,517,000
Other assets		20,876,000		17,796,000
Total assets		$           941,677,000		$           925,507,000
Liabilities and Stockholders' Equity
Liabilities
Noninterest-bearing deposits		$           188,814,000		$           166,954,000
Interest-bearing deposits		641,939,000		658,516,000
Total deposits		830,753,000		825,470,000
Other liabilities		6,978,000		6,520,000
Total liabilities		837,731,000		831,990,000
Commitments and contingencies		-		-
Stockholders' Equity
Preferred stock, $1.00 par value; 1,000,000 shares
authorized; 243,659 issued and outstanding
at September 30, 2026 and at December 31, 2025, respectively		244,000		244,000
Common stock, $1.50 par value; 5,000,000 shares
authorized; 1,976,780 and 1,970,230 issued and
outstanding at September 30, 2026 and at December 31, 2025,
respectively		2,965,000		2,955,000
Additional paid-in capital		24,803,000		24,504,000
Retained earnings		78,352,000		67,834,000
Accumulated other comprehensive loss		(2,418,000)		(2,020,000)
Total stockholders' equity		103,946,000		93,517,000
Total liabilities and stockholders' equity		$           941,677,000		$           925,507,000

 

Bank of Botetourt Income Statement For the nine months ended and three months ended September 30, 2026 and 2025 (Unaudited)
	Nine Months Ended September 30,				Three Months Ended September 30,
	2026		2025		2026		2025
Interest income
Loans and fees on loans	$      36,752,000		$      32,633,000		$      12,558,000		$      11,329,000
Securities:
U.S. Treasury and Government Agencies	328,000		441,000		93,000		140,000
Mortgage-backed securities	430,000		191,000		154,000		82,000
All other securities	639,000		622,000		220,000		205,000
Due from depository institutions	1,218,000		1,370,000		364,000		365,000
Federal funds sold	26,000		25,000		10,000		8,000
Total Interest income	39,393,000		35,282,000		13,399,000		12,129,000
Interest expense
Deposits	11,855,000		11,645,000		3,817,000		3,821,000
Other borrowings	3,000		18,000		1,000		18,000
Total Interest expense	11,858,000		11,663,000		3,818,000		3,839,000
Net Interest Income	27,535,000		23,619,000		9,581,000		8,290,000
Provision for credit losses	1,044,000		688,000		204,000		326,000
Net Interest Income after credit loss expense	26,491,000		22,931,000		9,377,000		7,964,000
Noninterest income
Service charges on deposit accounts	1,103,000		976,000		378,000		342,000
Securities brokerage and annuities	269,000		204,000		90,000		80,000
Other income, net of gains	5,474,000		3,173,000		1,293,000		1,054,000
Total noninterest income	6,846,000		4,353,000		1,761,000		1,476,000
Noninterest expense
Salaries and employee benefits	7,672,000		7,173,000		2,550,000		2,464,000
Premises and fixed assets expense	1,712,000		1,806,000		542,000		619,000
Other expense	8,950,000		8,158,000		3,043,000		2,778,000
Total noninterest expense	18,334,000		17,137,000		6,135,000		5,861,000
Income before income taxes	15,003,000		10,147,000		5,003,000		3,579,000
Income tax expense	2,648,000		2,053,000		1,034,000		697,000
Net income	12,355,000		8,094,000		3,969,000		2,882,000
Preferred stock dividends	358,000		358,000		120,000		119,000
Net income available to common shareholders	$      11,997,000		$        7,736,000		$        3,849,000		$        2,763,000
Basic earnings per share	$                   6.08		$                   3.94		$                   1.95		$                   1.40
Diluted earnings per share	$                   6.08		$                   3.94		$                   1.95		$                   1.40
Dividends declared per share	$                   0.75		$                0.675		$                   0.25		$                0.225
Basic weighted average shares outstanding	1,974,027		1,964,889		1,975,969		1,967,206
Diluted weighted average shares outstanding	1,974,027		1,964,889		1,975,969		1,967,206

 

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SOURCE Bank of Botetourt

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Bank of Botetourt's third-quarter 2026 earnings?

Bank of Botetourt reported unaudited third-quarter net income of $3,969,000 and basic earnings per share of $1.95. These compare with $2,882,000 and $1.40, respectively, for the same period in 2025.

When will Bank of Botetourt pay its common and preferred dividends?

The $0.25 common dividend is payable November 16, 2026, to common shareholders of record November 9, 2026. The $0.49 preferred dividend is payable November 6, 2026, to preferred shareholders of record October 30, 2026.

Why did Bank of Botetourt's third-quarter 2026 net interest margin improve?

The bank attributed the improvement primarily to consistent asset yields and a lower cost of interest-bearing liabilities. Net interest margin increased 35 basis points from the same quarter of 2025 to 4.11%.

What caused Bank of Botetourt's nonperforming assets to increase in 2026?

A $44,000 commercial and industrial loan was added to nonperforming assets during the third quarter, partly offset by continued payments on existing nonperforming assets. Nonperforming assets consisted entirely of nonaccrual loans; the bank had no foreclosed properties at September 30, 2026, or December 31, 2025.