Bank of Botetourt Exceeds Budget Expectations, Records Profitable 2025; Board Votes to Increase Dividend by 11.1%

Rhea-AI Summary

Bank of Botetourt (OTC-PINK: BORT) reported unaudited 2025 results with FY net income $10.802M ($5.25 basic EPS) versus $7.942M in 2024. Key metrics: total assets $923.10M, net loans $750.37M (+11.73%), deposits $823.06M (+7.28%), ROA 1.22%, ROE 12.29%, book value $44.19. The board declared a quarterly common dividend of $0.25 (11.1% increase) payable Feb 17, 2026, and a preferred dividend $0.49 payable Feb 6, 2026.

Positive

• FY net income of $10.80M (basic EPS $5.25), up from $7.94M in 2024
• Net loans grew 11.73% to $750.37M, supporting interest income growth
• Total deposits increased 7.28% to $823.06M, strengthening funding base
• Board raised common dividend by 11.1% to $0.25 quarterly, payable Feb 17, 2026

Negative

• Noninterest expense rose to $6.248M for Q4, an increase of $664,000 year-over-year (>10%)
• Net charge-offs in Q4 were $556,000, an increase of $359,000 versus prior year quarter

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BUCHANAN, Va., Jan. 29, 2026 /PRNewswire/ -- Buchanan-based Bank of Botetourt (OTC-PINK: BORT) and (OTC-PINK: BORTP) announced today its unaudited financial results for the three and twelve months ended December 31, 2025. The Bank produced net income amounting to $2,709,000 or $1.32 per basic share in the fourth quarter. This amount compares to net income of $1,954,000 or $0.94 per share, for the same period last year.  For the twelve months ended December 31, 2025, the Bank produced net income amounting to $10,802,000 or $5.25 per basic share. This amount compares to a net income of $7,942,000 or $3.82 per share, for the same period last year. 

At December 31, 2025, select financial information and key highlights include:

• Return on average assets of 1.22%
• Return on average equity of 12.29%
• Book value of $44.19
• Total deposit growth of 7.28%
• Total asset growth of 7.70%
• Total loan growth of 11.73%
• Community Bank Leverage Ratio of 10.42%
• Net Interest Margin of 3.64%

The Board of Directors voted to pay the 7.00% preferred dividend, which calculates to $0.49 per share on February 6, 2026, to preferred shareholders of record January 30, 2026.  Furthermore, the Board of Directors voted to pay the $0.25 per share quarterly dividend, or $1.00 per share annualized, an increase of 11.1%, which is payable on February 17, 2026, to common shareholders of record February 10, 2026.  President & CEO Michelle Austin stated "This was a strong year for Bank of Botetourt, with results that exceeded expectations and reflected the disciplined execution of our strategy.  None of this would be possible without the trust of our customers, the support of our communities, and the dedication of our employees.  As we look ahead, we remain focused on delivering long-term shareholder value while continuing to invest in the communities we are proud to serve."      

Results of Operations

Net income for the three months ended December 31, 2025, was $2,709,000 compared to $1,954,000 for the same period last year, representing an increase of $755,000 or 38.64%.  Basic and diluted earnings per share increased $0.38 from $0.94 at December 31, 2024, to $1.32 at December 31, 2025.  The increase in net income is primarily due to $1,588,000 more interest and fees on loan income, $181,000 less expense on deposits and other borrowings, offset by $44,000 more provision for credit losses, and $121,000 less investment income.

For the three months ended December 31, 2025, the Bank recorded a provision for credit loss expense of $408,000 compared to $364,000 for the same period last year, representing an increase of $44,000.  The provision recorded during the quarter primarily 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 1.10% at the end of the quarter, down six basis points from the prior quarter and down eight basis points from one year prior.    

At December 31, 2025, net loans increased 11.73%. Interest and fees on loans at December 31, 2025, increased $1,588,000 over the same three-month period of 2024. Interest expense decreased by $181,000 from $4,302,000 at December 31, 2024, to $4,121,000 at December 31, 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 $24,000, or 1.62%, to $1,510,000 for the three months ended December 31, 2025, compared to $1,486,000 for same period of 2024.  The increase is attributed to an increase in service charges on deposit accounts, income from title insurance subsidiaries, gain on sale of mortgage loans, partially offset by a decrease in other income from the Bank's subsidiaries.    

Noninterest expense increased $664,000 from $5,584,000 at December 31, 2024, to $6,248,000 at December 31, 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 December 31, 2025, was $707,000 compared to $498,000 one year prior. The increase in tax expense is due to more revenue for the quarter.

Financial Condition

At December 31, 2025, total assets amounted to $923,097,000 compared to $857,073,000 at December 31, 2024, an increase of $66,024,000 or 7.70%. Total net loans increased $78,778,000 or 11.73% from $671,590,000 at December 31, 2024, to $750,368,000 at December 31, 2025. Total deposits at December 31, 2024, amounted to $767,221,000, compared to $823,058,000 at December 31, 2025, an increase of 7.28% or $55,837,000.

Stockholders' equity totaled $93,517,000 at December 31, 2025, compared to $82,510,000 at December 31, 2024. The $11,007,000 increase during the period is attributed to net income for 2025, net proceeds from the issuance of common stock from the Dividend Reinvestment and Stock Purchase Plan, a decrease in accumulated other comprehensive loss, partially offset by dividends paid.

Asset Quality

Bank of Botetourt's asset quality remained strong for the fourth quarter of 2025. Provision for credit losses for the fourth quarter of 2025 was $408,000 compared to $326,000 in the previous quarter and $364,000 in the same quarter of 2024. 

The Bank had no foreclosed properties at December 31, 2025, and December 31, 2024, respectively.  Therefore, non-performing assets only consisted of nonaccrual loans.  Non-performing assets decreased $10,000, from $51,000 at December 31, 2024 to $41,000 at December 31, 2025.  The decrease is attributable to the addition of three commercial and industrial loans, collateralized by commercial vehicles and a blanket UCC on equipment and two unsecured commercial and industrial loans, offset by the charge-off of the aforementioned loan additions.  All loans that were added to non-accrual during 2025 were charged off prior to December 31, 2025.  There were no loans added to nonaccrual loans during the fourth quarter.  The decrease 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 fourth quarter of 2025 were $556,000 or seven basis points on total average loans outstanding.  Net charge-offs for the fourth quarter of 2025 were comprised of charge-offs of $583,000, partially offset by recoveries of $27,000.  Compared to December 31, 2024, net charge-offs increased $359,000 or five basis points on total average loans outstanding. 

Capital Ratios

Bank of Botetourt qualified for and adopted the optional, simplified measure of capital adequacy, 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 December 31, 2025, Bank of Botetourt reported its CBLR ratio at 10.42% 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)
		December 31,		December 31,
		2025		2024
Assets
Cash and Due from banks		$          13,045,000		$          12,439,000
Interest-bearing deposits with banks		42,103,000		53,381,000
Federal funds sold		1,282,000		936,000
Total cash and cash equivalents		56,430,000		66,756,000
Debt securities held to maturity, net of allowance		9,182,000		9,982,000
for credit losses of $18,000 at December 31, 2025 and
December 31, 2024, respectively
Debt securities available for sale		69,962,000		73,159,000
Restricted equity securities		681,000		634,000
Loans, net of allowance for credit losses of $8,374,000 at		750,368,000		671,590,000
December 31, 2025 and $7,989,000 at December 31, 2024.
Loans held for sale		1,737,000		-
Premises and fixed assets, net		16,515,000		17,356,000
Bank ownded life insurnace		7,787,000		7,544,000
Accrued interest receivable		2,886,000		2,633,000
Other assets		7,549,000		7,419,000
Total assets		$        923,097,000		$        857,073,000
Liabilities and Stockholders' Equity
Liabilities
Noninterest-bearing deposits		$        164,542,000		$        179,420,000
Interest-bearing deposits		658,516,000		587,801,000
Total deposits		823,058,000		767,221,000
Accrued interest payable		2,484,000		3,544,000
Other liabilities		4,038,000		3,798,000
Total liabilities		829,580,000		774,563,000
Commitments and contingencies		-		-
Stockholders' Equity
Preferred stock, $1.00 par value; 1,000,000 shares
authorized; 243,659 issued and outstanding
at December 31, 2025 and at December 31, 2024, respectively		244,000		244,000
Common stock, $1.50 par value; 5,000,000 shares
authorized; 1,970,230 and 1,960,879 issued and
outstanding at December 31, 2025 and at December 31, 2024
respectively		2,955,000		2,941,000
Additional paid-in capital		24,504,000		24,198,000
Retained earnings		67,834,000		59,277,000
Accumulated other comprehensive loss		(2,020,000)		(4,150,000)
Total stockholders' equity		93,517,000		82,510,000
Total liabilities and stockholders' equity		$        923,097,000		$        857,073,000

 

Bank of Botetourt
Consolidated Income Statement
For the twelve months ended and three months ended December, 2025 and 2024 (Unaudited)
	Twelve Months Ended December 31,				Three Months Ended December 31,
	2025		2024		2025		2024
Interest income
Loans and fees on loans	$      44,455,000		$      37,603,000		$      11,822,000		$      10,234,000
Federal funds sold	34,000		23,000		8,000		7,000
Securities:
Taxable	1,411,000		1,572,000		365,000		360,000
Exempt from federal income tax	244,000		207,000		65,000		53,000
Dividend income	48,000		107,000		11,000		28,000
Deposits with banks	1,774,000		2,295,000		412,000		534,000
Total Interest income	47,966,000		41,807,000		12,683,000		11,216,000
Interest expense
Deposits	15,764,000		15,029,000		4,120,000		4,220,000
Other borrowings	19,000		825,000		1,000		82,000
Total Interest expense	15,783,000		15,854,000		4,121,000		4,302,000
Net Interest Income	32,183,000		25,953,000		8,562,000		6,914,000
Provision for credit losses	1,221,000		918,000		408,000		364,000
Net Interest Income after credit loss expense	30,962,000		25,035,000		8,154,000		6,550,000
Noninterest income
Service charges on deposit accounts	1,368,000		1,284,000		377,000		316,000
ATM and debit card	2,140,000		1,871,000		516,000		479,000
Other service charges and fees	896,000		818,000		218,000		217,000
Mortgage origination fees	334,000		198,000		90,000		57,000
Other income, net of gains	1,196,000		1,220,000		309,000		417,000
Total noninterest income	5,934,000		5,391,000		1,510,000		1,486,000
Noninterest expense
Salaries and employee benefits	9,850,000		8,947,000		2,677,000		2,356,000
Occupancy	1,233,000		1,002,000		276,000		233,000
Equipment	1,277,000		1,077,000		318,000		319,000
Foreclosed assets, net	-		45,000		163,000		46,000
Outside services	3,171,000		2,771,000		819,000		770,000
FDIC insurance premiums and assessment	504,000		477,000		126,000		125,000
ATM and debit card	1,650,000		1,455,000		412,000		375,000
Franchise tax	682,000		657,000		160,000		167,000
Telephone and communication	351,000		320,000		87,000		76,000
Other professional fees	277,000		240,000		72,000		56,000
Marketing	1,234,000		870,000		357,000		286,000
Other operating expenses	3,032,000		2,594,000		781,000		775,000
Total noninterest expense	23,261,000		20,455,000		6,248,000		5,584,000
Income before income taxes	13,635,000		9,971,000		3,416,000		2,452,000
Income tax expense	2,833,000		2,029,000		707,000		498,000
Net income	10,802,000		7,942,000		2,709,000		1,954,000
Preferred stock dividends	478,000		478,000		119,000		119,000
Net income available to common shareholders	$      10,324,000		$        7,464,000		$        2,590,000		$        1,835,000
Basic earnings per share	$                  5.25		$                  3.82		$                  1.32		$                  0.94
Diluted earnings per share	$                  5.25		$                  3.82		$                  1.32		$                  0.94
Dividends declared per share	$                  0.90		$                  0.80		$                0.225		$                  0.20
Basic weighted average shares outstanding	1,965,975		1,956,428		1,969,240		1,959,791
Diluted weighted average shares outstanding	1,965,975		1,956,428		1,969,240		1,959,791

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SOURCE Bank of Botetourt

FAQ

How much net income did Bank of Botetourt (BORT) report for full-year 2025?

Bank of Botetourt reported $10,802,000 net income for 2025. According to the company, that compares to $7,942,000 in 2024 and produced basic EPS of $5.25 for 2025.

What dividend increase did Bank of Botetourt (BORT) announce and when is it payable?

The board increased the common quarterly dividend to $0.25 (an 11.1% rise). According to the company, the dividend is payable Feb 17, 2026 to shareholders of record Feb 10, 2026.

How did Bank of Botetourt's loan and deposit balances change at December 31, 2025?

Net loans rose 11.73% to $750.37M, and total deposits increased 7.28% to $823.06M. According to the company, loan growth drove higher interest and fee income for the period.

What capital and profitability metrics did Bank of Botetourt (BORT) report at year-end 2025?

The bank reported a book value of $44.19, ROA of 1.22%, and ROE of 12.29%. According to the company, the Community Bank Leverage Ratio was 10.42%, above the regulatory minimum.

Why did Bank of Botetourt's provision for credit losses change in Q4 2025?

Provision for credit losses increased to $408,000 in Q4 2025 from $364,000 a year earlier. According to the company, the increase reflected net loan growth and adjustments to historical loss factors for future expectations.

Did Bank of Botetourt (BORT) report any material asset quality issues at year-end 2025?

Nonperforming assets were low at $41,000 and the bank reported no foreclosed properties. According to the company, nonaccrual activity was charged off and overall asset quality remained strong.