Bank of Botetourt sets record earnings in 2019; Board votes to increase dividend

Buchanan-based Bank of Botetourt (OTCPK: BORT) announced today that it has filed its Call Report with the Federal Deposit Insurance Corporation and reports the following unaudited financial results for year ended December 31, 2019. Net income for the fiscal year ended 2019 amounted to $4,979,000, marking the highest recorded earnings in the Bank’s 120-year history. This amount compares to $4,300,000 for the same period of 2018, representing an increase of $679,000 or 15.8%. Both basic and diluted earnings per share amounted to $2.90 at December 31, 2019 compared to $2.98 one year prior. Book value was $28.12 at December 31, 2019 as compared to $26.55 one year prior. As a result of the solid financial performance, the Board of Directors voted to increase the quarterly dividend payment from $0.16 to $0.175 per share, or $0.70 per share annualized which is payable on February 18, 2020 to shareholders of record February 11, 2020.

This represents an increase in dividend payment of 9.4%. For the three months ended December 31, 2019, the Bank reported net income amounting to $1,238,000 or $0.72 per basic share in the fourth quarter. This amount compares to a net income of $836,000 or $0.57 per basic share, for the same period last year. At December 31, 2019 total assets amounted to $491,660,000, an increase of 13.1% above total assets at December 31, 2018 of $434,764,000, an increase of $56,896,000. Loan demand exceeded 2019 budget expectations.

Total net loans increased $41,013,000 or 10.8% from $380,404,000 at December 31, 2018 to $421,417,000 at December 31, 2019. Total deposits at December 31, 2019 amounted to $433,111,000, compared to $385,314,000 at December 31, 2018, an increase of 12.4% or $47,797,000.

At December 31, 2019, select financial highlights include: • Return on average assets of 1.07% • Return on average equity of 10.31% • Net loan growth of 10.8% • Total deposit growth of 12.4% • Total asset growth of 13.1% • Seven consecutive years of increased dividend payments

President & CEO, G. Lyn Hayth, III stated, “We are so happy to share the results of the Bank’s solid performance in 2019. Strong loan growth combined with a favorable local economy allowed our Bank to surpass earnings expectations. As a result, the Board of Directors voted to increase the dividend payment to our shareholders.”

Bank of Botetourt continues to be a Well Capitalized institution and exceed the BASEL III capital requirements. As of December 31, 2019, Bank of Botetourt reported tier 1 leverage capital of 10.39% and total capital of 13.92%. Both common equity tier 1 and tier 1 capital ratios were 12.91%. At December 31, 2018 the ratios were 10.90%, 13.78%, and 12.85%, respectively.

Bank of Botetourt is expanding its merchant card services program with the hiring of an officer to focus exclusively on growing this revenue stream as part of the Bank’s treasury services. Bank management feels there is untapped potential in our markets to grow the number of participating merchants in the program.

In addition, Bank of Botetourt is now offering the Insured Cash Sweep (‘ICS”) service to its customers whereby they are eligible for multi-million-dollar FDIC insurance by working with our bank to place deposits throughout a nationwide network of participating institutions

–Submitted by Mary Ann Miller, VP Bank of Botetourt