Bank of Botetourt posts profitable 3rd quarter results

November 3, 2022November 3, 2022 admin

Bank of Botetourt posts profitable third quarter financial results
Media Contact: Michelle R. Austin 540-591-5000
BUCHANAN, VIRGINIA. October 26, 2022 — Buchanan-based Bank of Botetourt (OTCPK: BORT) announced today its unaudited financial results for the three and nine months-end September 30, 2022. The Bank produced net income amounting to $2,308,000 or $1.19 per basic share in the third quarter.

This amount compares to a net income of $1,816,000 or $0.94 per share, for the same period last year. For the nine months-ended the Bank produced net income
amounting to $5,614,000 or $2.91 per basic share. This amount compares to a net income of $5,378,000 or $2.81 per share, for the same period last year.
At September 30, 2022, select financial information and key highlights include:
• Return on average assets of 1.06%
• Return on average equity of 12.79%
• Book value of $30.02
• Total deposit growth of 7.83%
• Total asset growth of 6.51%
• Total loan growth of 6.11%
• Community Bank Leverage Ratio of 9.13%
• Strong liquidity position
• Net interest margin of 3.63% at September 30, 2022 compared to 3.02% one year prior.
As a result of the solid financial performance, the Board of Directors voted to pay the $0.185 per share quarterly dividend, or $0.74 per share annualized which is payable on November 18, 2022 to shareholders of record November 11, 2022.
President & CEO, G. Lyn Hayth, III stated “We are gratified by the performance of our Bank. We have been able to successfully meet business objectives that we established for 2022, especially increasing shareholder value. As we celebrate our 123rd year in community banking, it is rewarding to live out our mission of being Customer Driven and Community
Committed.”
Net income for the three months ended September 30, 2022 was $2,308,000 compared to $1,816,000 for the same period last year, representing an increase of $492,000 or 27.1%. Basic and diluted earnings per share increased $0.25 from $0.94
at September 30, 2021 to $1.19 at September 30, 2022. The increase in net income is primarily due to $1,009,000 increase in investment income, $111,000 increase in loans and fees on loans, partially offset by a $300,000 increase in the provision for loan loss.
Financial Condition
At September 30, 2022 total assets amounted to $706,952,000, an increase of 6.5% above total assets at December 31, 2021 of $663,766,000, an increase of $43,186,000. Total net loans increased $26,006,000 or 6.1% from $425,902,000 at December 31, 2021 to $451,908,000 at September 30, 2022. Total deposits at December 31, 2021 amounted to $598,659,000, compared to $645,544,000 at September 30, 2022, an increase of 7.8% or $46,885,000. The increase in deposits is attributable to organic growth.
As of September 30, 2022 Bank of Botetourt reported its CBLR ratio at 9.13% which compares to a CBLR ratio of 9.14% at December 31, 2021.

In September, the Board of Directors approved a Series A Preferred Stock Rights Offering commencing on October 4, 2022.
The opportunity offers rights to existing shareholders to purchase up to a maximum of 325,000 shares of its noncumulative, convertible, perpetual preferred stock at a price of $28.00 per share. The subscription period expires November 4, 2022.
The Bank intends to use the net proceeds for general corporate purposes which may include increasing its capital position, supporting future growth such as branching and infrastructure, and funding loan demand.

–Submitted by Mary Ann Miller, VP Business Banking and Community Bank of Botetourt