Bank of Botetourt Records Profitable 2022

Board Votes to Pay Preferred Dividend and Increase Common Dividend

BUCHANAN, VIRGINIA.  February 1, 2023 — Buchanan-based Bank of Botetourt (OTCPK: BORT and BORTP) announced today its unaudited financial results for the three and twelve months-ended December 31, 2022. The Bank produced net income amounting to $2,191,000 or $1.13 per basic share in the fourth quarter. This amount compares to net income of $1,501,000 or $0.77 per share, for the same period last year.  For the twelve months-ended December 31, 2022 the Bank produced net income amounting to $7,805,000 or $4.04 per basic share. This amount compares to net income of $6,879,000 or $3.58 per share, for the same period last year. 

At December 31, 2022, select financial information and key highlights include:

• Return on average assets of 1.10%
• Return on average equity of 12.99%
• Book value of $32.48
• Total deposit growth of 7.8%
• Total asset growth of 7.8%
• Total loan growth of 13.2%
• Community Bank Leverage Ratio of 10.32%
• Strong liquidity position
• Net interest margin of 3.67% at December 31, 2022 compared to 2.98% one year prior.

As a result of the solid financial performance, the Board of Directors voted to pay the 7.00% preferred dividend, which calculates to $0.49 per share on February 9, 2023 to preferred shareholders of record February 2, 2023. The Board voted to increase the quarterly common dividend from $0.185 to $0.1925 per share, or $0.77 per share annualized which is payable on February 17, 2023 to common shareholders of record February 13, 2023. President & CEO, G. Lyn Hayth, III stated “We are gratified by the exceptional financial performance of our Bank during 2022. We were able to successfully meet business objectives that we established for 2022, especially increasing shareholder value.” 

Financial Condition

At December 31, 2022 total consolidated assets amounted to $713,718,000, an increase of 7.8% above total assets at December 31, 2021 of $662,230,000, an increase of $51,488,000. Total net loans increased $56,263,000 or 13.2% from $425,899,000 at December 31, 2021 to $482,162,000 at December 31, 2022. Total deposits at December 31, 2021 amounted to $597,122,000, compared to $643,923,000 at December 31, 2022, an increase of 7.8% or $46,801,000. The increase in deposits is attributable to organic growth.

As of December 31, 2022 Bank of Botetourt reported its CBLR ratio at 10.32% which meets the required regulatory minimum ratio.  This compares to a CBLR ratio of 9.14% on December 31, 2021. 

–Submitted by Mary Ann Miller, VP Business Banking and Community Relations