#United States #financial results #Bank of Botetourt #Buchanan #BORTP

Overview of Financial Performance

The Bank of Botetourt, based in Buchanan, Virginia, shared its financial results for the third quarter ending September 30, 2025. The bank reported a net income of $2,882,000, which translates to $1.40 per basic share, reflecting a significant increase compared to the net income of $1,967,000, or $0.94 per share, for the same period in the previous year. Over the first nine months of 2025, the bank's total net income rose to $8,094,000, from $5,988,000 in 2024, showcasing a robust improvement across various financial metrics.

Key Financial Highlights

• - The return on average assets stands at 1.23%.
• - The return on average equity is recorded at 12.48%.
• - The book value per share rose to $42.86.
• - Total deposits grew by 1.23%, and total assets increased by 4.61%.
• - Notably, total loans saw an increase of 8.38% during the reporting period.
• - The Community Bank Leverage Ratio (CBLR) reached 10.57%, indicating strong capital adequacy.
• - The net interest margin is reported at 3.76%.

Dividend Announcements

In line with their solid financial performance, the Board of Directors declared a preferred dividend of 7.00%, which amounts to $0.49 per share, payable on November 7, 2025. Additionally, a quarterly dividend of $0.225 per common share, totaling $0.90 per share annually, was approved, set to be disbursed on November 17, 2025.

Commentary from Management

Michelle Austin, President and CEO, noted, "Our third quarter results reflect the continued strength of our Bank and the disciplined execution of our strategic priorities. We remain focused on delivering long-term value to our shareholders while staying deeply committed to the communities we serve. I’m proud of our team’s efforts and the positive impact we’re making across our markets."

Operational Insights

The significant increase in net income was influenced by a rise in interest income amounting to $1,585,000. This rise was paired with a reduction in interest expenses on other borrowings, highlighting the bank's efficient management of its debt and income generation.
An increase in noninterest income to $1,476,000, from $1,351,000 during the same period last year, was also a positive driver of the bank's profitability. This growth can be partly attributed to improved performance from title insurance subsidiaries and higher gains from mortgage loan sales, despite a slight decline in service charges from deposit accounts.

Expense Analysis

However, noninterest expenses increased significantly, amounting to $5,861,000 compared to the previous year's $5,043,000, primarily driven by higher salaries, employee benefits, and core processing expenses. This rise in operational costs needs to be managed effectively to sustain profitability.
Income tax expenses also rose year-over-year to $697,000 from $453,000, reflecting the overall increase in revenue for the quarter.

Financial Position

As of September 30, 2025, the Bank’s total assets reached $898,809,000, showing a 4.61% increase over the preceding year. Net loans also saw an encouraging increase of 8.38%, climbing to $727,887,000, while total deposits grew by 1.23% to reach $778,871,000.
The bank’s stockholders' equity increased to $90,866,000 compared to $82,510,000 at the end of the previous year, underlining the bank's robust financial foundation and growth potential moving forward.

Asset Quality and Risk Management

The asset quality remained strong, with a provision for credit losses of $326,000 in Q3—lower than the comparable figure of $411,000 from last year. Non-performing assets are primarily composed of non-accrual loans, which increased to $609,000, attributed to newly added loans and charge-offs. Overall, the bank's risk management strategies seem to be effective amidst the growing loan portfolio.

Conclusion

In summary, Bank of Botetourt has demonstrated impressive financial strength in its third-quarter results for 2025, showcasing growth in income, assets, and loans. This performance reaffirms the bank's commitment to providing value to its shareholders and the communities it serves, solidifying its position as a trusted financial institution in Virginia. Looking ahead, the bank aims to maintain its upward trajectory, ensuring that it adapts to market conditions while supporting its core strategies and values.