Bank Of Botetour Stock Price, News & Analysis

Bank of Botetourt (OTCPK: BORT) is a Buchanan, Virginia-based commercial bank that operates as a full-service community bank. Chartered in 1899, the institution focuses on traditional banking services within the finance and insurance sector, with an emphasis on commercial banking activities. According to company disclosures, Bank of Botetourt serves customers through a network of retail offices and specialized divisions that support lending, deposit, and wealth management needs.

The bank’s common stock trades on the OTC Pink marketplace under the symbol BORT, and its preferred stock trades under BORTP. As a qualifying community banking organization, Bank of Botetourt has adopted the Community Bank Leverage Ratio (CBLR) framework as an optional, simplified measure of capital adequacy. Company reports state that it maintains a leverage ratio above the required regulatory minimum and total consolidated assets below the $10 billion threshold defined for community banking organizations.

Community banking footprint

Bank of Botetourt describes itself as a full-service community bank serving customers through multiple retail offices in Virginia. The bank reports operating fourteen retail offices across Botetourt, Franklin, Roanoke, and Rockbridge counties, as well as in the Cities of Roanoke and Salem and the Towns of Vinton and Rocky Mount in Virginia. Earlier disclosures referenced thirteen offices, reflecting the bank’s branch expansion activities, including the opening of a full-service branch in the Town of Rocky Mount and an application filing for a new office at Melrose Plaza in Roanoke City.

The bank highlights its role in the communities it serves, noting a long history of community engagement and local presence. It has referenced milestones such as its 125th anniversary and describes itself as one of Virginia’s older community banks. Company communications also note that Bank of Botetourt has been recognized by Forbes as a top-ranked bank in Virginia, including being named Virginia’s #1 Best-In-State Bank in 2024, based on an independent consumer survey.

Business model and operating segments

Bank of Botetourt identifies itself as a full-service community bank with several operating components:

• Core commercial banking: The bank reports generating interest income primarily from loans and fees on loans, as well as from securities and deposits with other institutions. It funds its activities largely through noninterest-bearing and interest-bearing deposits. The bank’s financial statements show net interest income as a key contributor to earnings, with interest expense on deposits and other borrowings as significant cost components.
• Residential mortgage division: The bank operates a residential lending division known as Virginia Mountain Mortgage. Company releases state that this division originates mortgage loans and that gains on the sale of mortgage loans contribute to noninterest income. Mortgage origination fees are also reported as a component of noninterest income.
• Wealth management and financial services: Bank of Botetourt operates a financial services division called Botetourt Wealth Management, which the bank describes as offering financial planning and investment services. Noninterest income categories in its financial statements include securities brokerage and annuities, ATM and debit card income, and other service charges and fees.
• Title insurance and related income: Company disclosures attribute portions of noninterest income to title insurance subsidiaries. In several quarters, increases in noninterest income are linked to higher income from these subsidiaries.

Through these activities, the bank reports revenue streams that include net interest income, service charges on deposit accounts, securities brokerage and annuities, ATM and debit card income, mortgage-related income, and other fee-based services.

Financial profile and asset quality

Bank of Botetourt regularly publishes unaudited financial results for quarterly and year-to-date periods. These reports include details on net income, basic and diluted earnings per share, net interest income, noninterest income, and noninterest expense. The bank also discloses select financial ratios such as return on average assets, return on average equity, book value per share, total deposit growth, total asset growth, total loan growth, net interest margin, and its Community Bank Leverage Ratio.

The bank provides commentary on asset quality, including:

• Provision for credit losses and reserves for unfunded commitments.
• The ratio of the allowance for credit losses to total loans and leases outstanding.
• Information on non-performing assets, which the bank reports as consisting only of nonaccrual loans when it has no foreclosed properties.
• Details on net charge-offs, including charge-offs and recoveries, and the impact on total average loans outstanding.

Disclosures also address impaired loans, loss exposure on impaired loans, and changes in nonaccrual loans, often tied to specific categories such as commercial and industrial loans, residential lots, and consumer auto loans.

Capital and regulatory framework

The bank states that it has opted into the Community Bank Leverage Ratio (CBLR) framework, consistent with Section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act. Under this framework, a qualifying community banking organization must have 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, and it cannot be an advanced approaches institution.

Bank of Botetourt reports its CBLR ratio in periodic financial releases and notes that its reported ratios meet the required regulatory minimum. The bank’s balance sheet disclosures show total assets, total deposits, other borrowings, and stockholders’ equity, including preferred stock, common stock, additional paid-in capital, retained earnings, and accumulated other comprehensive loss.

Dividends and capital returns

The Board of Directors of Bank of Botetourt regularly votes on dividends for both preferred and common shareholders. Company announcements describe:

• A 7.00% preferred dividend, with the per-share amount and payment dates specified for preferred shareholders of record on particular dates.
• Quarterly common dividends stated on a per-share basis, with annualized equivalents and record and payment dates disclosed.

These dividend decisions are often linked in management commentary to the bank’s financial performance, budget expectations, and commitment to delivering value to shareholders.

Leadership, governance, and milestones

Bank of Botetourt provides updates on its leadership and governance. Disclosures include the appointment of directors to the Board and changes in executive roles. For example, the bank has announced the retirement of its Chief Executive Officer after nearly four decades with the institution, with that individual remaining as Vice-Chair of the Board and transitioning to a part-time Chief Strategic Officer role. The Board has appointed a successor as President and Chief Executive Officer, effective on a specified date, and has highlighted that executive’s long tenure with the bank and prior roles, including Chief Financial Officer and President and Chief Operating Officer.

The bank has also announced appointments to its Board of Directors, noting the professional background and business experience of new directors. These communications emphasize continuity of leadership and succession planning as part of the bank’s long-term strategy.

Bank of Botetourt marks historical milestones such as its 125th anniversary, referencing its origins as Bank of Buchanan and its evolution into a larger community bank headquartered in the Roanoke Metropolitan Service area. Company communications state that it has grown its footprint through new offices and relocations and that it has been recognized by Forbes in America’s Best-In-State Banks rankings.

Strategic initiatives and expansion

The bank reports on strategic initiatives that support its growth and community presence. Examples include:

• The opening of a fourteenth full-service branch in the Town of Rocky Mount, Virginia, with services such as a 24/7 accessible ATM with deposit capabilities, a drive-thru, and night deposit, and the presence of Virginia Mountain Mortgage at that location.
• An application filing with state and federal regulators to establish a full-service branch at Melrose Plaza in Roanoke City, in partnership with Goodwill Industries. The bank describes plans for a branch that will include an interactive teller machine with deposit capabilities, night deposit, and access to Virginia Mountain Mortgage.
• Plans for the Melrose Plaza office to provide relationship banking, one-on-one counseling, on-site workshops, and educational seminars, with a stated goal of supporting financial wellness and stability in the Northwest Roanoke community.

These initiatives are presented by the bank as extensions of its community banking model and its long-standing presence in its markets.

Recognition and community role

Bank of Botetourt highlights external recognition, including being named Virginia’s #1 Best-In-State Bank by Forbes in 2024 and being recognized as a multi-year top-ranked bank in Virginia. The bank attributes this recognition to factors such as trust, terms and conditions, branch services, digital services, customer service, and financial advice, as noted in the independent survey methodology described by Forbes.

Company communications also reference the bank’s engagement in community and economic development, including participation in programs such as the Paycheck Protection Program (PPP) during the COVID-19 pandemic, where the bank reports having helped small businesses retain thousands of jobs within its footprint. Leadership biographies emphasize involvement in industry associations, educational institutions, and regional economic organizations.

Stock structure and investor considerations

Bank of Botetourt’s financial statements detail its capital structure, including preferred stock with a stated par value and a fixed number of issued and outstanding shares, and common stock with a par value and authorized and outstanding share counts. The bank also reports additional paid-in capital, retained earnings, and accumulated other comprehensive loss, which together comprise total stockholders’ equity.

Investors reviewing Bank of Botetourt (BORT) typically examine:

• Quarterly and annual net income and earnings per share.
• Net interest margin and trends in interest income and interest expense.
• Loan and deposit growth, including changes in noninterest-bearing and interest-bearing deposits.
• Asset quality metrics, such as non-performing assets, allowance for credit losses, and net charge-offs.
• Capital ratios under the CBLR framework and total stockholders’ equity.
• Dividend declarations on both common and preferred stock.

According to available information, Bank of Botetourt continues to operate as an active community bank with ongoing financial reporting, branch expansion, leadership transitions, and regular dividend payments, all within the commercial banking segment of the finance and insurance sector.