If You Invested in BANK OF BOTETOURT BUCHANAN VA (BORTP)

Bank of Botetourt PFD (BORTP) represents the preferred stock of Bank of Botetourt, a Buchanan, Virginia-based community bank. Bank of Botetourt is identified in the provided information as a full-service community bank and operates in the commercial banking industry within the finance and insurance sector. The preferred shares are referenced alongside the common stock under the over-the-counter ticker symbols BORT and BORTP.

According to multiple company news releases, Bank of Botetourt was chartered in 1899 and has grown into a regional community bank with a network of retail offices in Virginia. The bank states that it operates retail offices across Botetourt, Rockbridge, Roanoke, and Franklin counties, as well as in the City of Roanoke, the City of Salem, and the Towns of Vinton and Rocky Mount in Virginia. These offices provide full-service community banking to individuals and businesses in its markets.

Bank of Botetourt also reports operating a residential lending division called Virginia Mountain Mortgage and a financial services division called Botetourt Wealth Management. Through these divisions, the bank indicates that it offers mortgage-related services and financial planning and investment services. The bank describes itself as a full-service community bank and notes that it has been recognized by Forbes as a top-ranked bank in Virginia in multiple years, including being named Virginia's #1 Best-In-State Bank in 2024.

In its news releases, the bank highlights that it qualifies as a community banking organization under the Community Bank Leverage Ratio framework, which applies to institutions with less than $10 billion in total consolidated assets and certain other criteria. Bank of Botetourt reports that it has adopted this framework and periodically discloses its Community Bank Leverage Ratio in its financial updates.

The bank emphasizes its long operating history, referring to its 125th anniversary and noting that it is one of Virginia's older banking institutions. It describes a tradition of service, strength, and local commitment, and notes that it has expanded its footprint over time through additional offices and branch locations in its Virginia markets. The bank also reports that it has opened and applied for new full-service branches in locations such as Rocky Mount and Roanoke City.

The preferred stock associated with the BORTP symbol is referenced in the bank's financial news as having a 7.00% preferred dividend. The Board of Directors repeatedly reports voting to pay this preferred dividend, calculating to $0.49 per preferred share on specified payment dates to preferred shareholders of record. These disclosures indicate that the preferred stock is part of the bank's capital structure and that preferred shareholders receive periodic dividend payments when declared by the Board.

Bank of Botetourt’s financial updates describe its operations in terms of net interest income, noninterest income, noninterest expense, loan growth, deposit growth, asset quality, and capital ratios. The bank reports that it generates interest income from loans and securities, interest expense on deposits and other borrowings, and noninterest income from service charges on deposit accounts, income from title insurance subsidiaries, securities brokerage and annuities, and other income. It also reports noninterest expenses such as salaries and employee benefits, premises and fixed assets expense, debit card expense, core processing expenses, and other operating costs.

The bank regularly discusses its asset quality, noting the level of nonperforming assets, nonaccrual loans, net charge-offs, and the allowance for credit losses. It reports that it has had no foreclosed properties in certain periods, and that nonperforming assets have consisted only of nonaccrual loans. The bank explains changes in nonaccrual loans and net charge-offs in terms of specific loan categories such as commercial and industrial loans and auto loans, and describes collateral arrangements including commercial vehicles and blanket liens on inventory, equipment, and accounts.

In addition, Bank of Botetourt provides information on its capital position, including stockholders’ equity, retained earnings, accumulated other comprehensive loss, and its Community Bank Leverage Ratio. The bank notes that it meets the required regulatory minimum ratio under the Community Bank Leverage Ratio framework and discloses that it has less than $10 billion in total consolidated assets, consistent with the definition of a qualifying community banking organization.

For investors evaluating BORTP, these disclosures provide context on the issuing bank’s business profile as a full-service community bank, its geographic focus in Virginia, its mortgage and wealth management divisions, its long operating history since 1899, and its use of preferred stock with a stated dividend rate that the Board has voted to pay in multiple reported periods.

Business model and operations

Based on the financial and narrative information in the news releases, Bank of Botetourt’s activities include originating and holding loans, accepting deposits, investing in securities, and providing related financial services. The bank reports net interest income derived from loans and securities less interest expense on deposits and borrowings, and it reports noninterest income from service charges, title insurance subsidiaries, securities brokerage and annuities, and other income. The bank also notes that it operates Virginia Mountain Mortgage and Botetourt Wealth Management as divisions within its overall community banking business.

Geographic footprint

The bank states that it operates retail offices in multiple Virginia localities, including Botetourt, Franklin, Roanoke, and Rockbridge counties, the City of Roanoke, the City of Salem, and the Towns of Vinton and Rocky Mount. It has described operating thirteen or fourteen retail offices in various periods, reflecting branch expansion such as the opening of a full-service branch in Rocky Mount and an application to establish a full-service branch in Roanoke City at Melrose Plaza.

Preferred stock characteristics

The preferred stock identified by the BORTP symbol is described in the bank’s financial disclosures as preferred stock with a par value of $1.00 per share, with 1,000,000 shares authorized and 243,659 shares issued and outstanding in the balance sheet presentations provided. The bank reports that its Board of Directors has voted in multiple periods to pay a 7.00% preferred dividend, which it calculates to $0.49 per preferred share on specified dates to preferred shareholders of record. These details indicate that the preferred stock is a separate class of equity from the common stock and that it carries a stated dividend rate when declared.

Recognition and longevity

Bank of Botetourt notes that it was chartered in 1899 and has celebrated its 125th anniversary. It reports that it is one of Virginia’s older banks and that it has been recognized by Forbes as a top-ranked bank in Virginia, including being named Virginia’s #1 Best-In-State Bank in 2024. The bank associates this recognition with its history of service, its community focus, and its financial performance.

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