#United States #financial results #Net Income #Bank of Botetourt #Buchanan

Bank of Botetourt Reports Strong Second Quarter Financial Results

The Bank of Botetourt, headquartered in Buchanan, Virginia, has announced its impressive financial results for the second quarter of 2025. This regional bank, which has a legacy dating back to 1899, revealed a substantial growth in its net income, bringing families and businesses in its local community more financial reassurance.

In the second quarter, the Bank posted a net income of $3,168,000, translating to $1.55 per basic share. This marks a significant increase of 44.46% compared to the $2,193,000 or $1.06 per share recorded in the same period last year. The positive results continued for the first six months of the year, achieving net income of $5,212,000, or $2.53 per basic share, up from $4,021,000 last year.

Moreover, as of June 30, 2025, the Bank's key financial metrics have displayed robust growth:

• - Return on average assets: 1.20%
• - Return on average equity: 12.26%
• - Book value: $41.32
• - Total deposit growth: 2.60%
• - Total asset growth: 3.14%
• - Total loan growth: 4.43%
• - Community Bank Leverage Ratio: 10.42%
• - Net Interest Margin: 3.70%

In a recent statement, President and CEO Michele Austin expressed pride in leading an organization with such an esteemed legacy, celebrating the continued commitment to serving their community. “Our consistent earnings reflect our hard work and the trust our customers place in us,” she said.

Operational Highlights

During the three-month period, the overall success can be attributed to several contributing factors:

• - There was an increase in interest income by $1,759,000 and a boost in noninterest income by $300,000.
• - Interest expenses saw a slight decrease of $25,000—evidence of the Bank’s prudent management in a fluctuating economic landscape.
• - Despite an increase in noninterest expenses, primarily due to salaries, benefits, and processing expenses, the overall financial health remains robust.

The Bank reported a minimal provision for credit loss expenses of $8,000, reflecting lower than expected defaults and extending strong signals to investors about its asset quality.

Nonperforming assets, which consist of loans where the borrower is not making payments, did rise but remain manageable. Nonaccrual loans increased to $629,000, primarily due to newly classified commercial and industrial loans. Nonetheless, the Bank's strategies to manage these loans remain intact and effective.

Financial Condition

As of June 30, 2025, total assets stood at $886.26 million, a remarkable increase from $859.24 million at the end of 2024. This growth can largely be attributed to an increase in net loans by 4.43%. Deposits also saw a healthy growth of 2.60%, showing customers' faith in the Bank's stability.

Additionally, the Bank’s stockholders’ equity has increased to $87.79 million, up from $82.51 million, showcasing its solid performance amid challenging market conditions.

The Bank of Botetourt remains committed to creating value for its shareholders while maintaining a focus on community service—a principle that has guided the institution for more than a century. Looking forward, the Bank aims to sustain this momentum while continuing to enhance its product offerings and customer service.

In conclusion, the Bank of Botetourt's strong performance and positive growth in Q2 2025 reinforce its strong position in the local banking landscape, promising greater value for its customers and stakeholders in the future.