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Bank of Botetourt: A Record-Setting Third Quarter

The Bank of Botetourt, headquartered in Buchanan, Virginia, has unveiled its third quarter financial results for 2026, reflecting a robust performance and an optimistic outlook for the institution. With its unaudited figures now released, the bank's net income climbed to an impressive $3,969,000, equating to $1.95 per basic share. This marks a substantial increase from the $2,882,000, or $1.40 per share, reported during the same period in the previous year.

For the nine-month period ending September 30, 2026, the bank's net income totaled $12,355,000, translating to $6.08 per basic share. This too showcases growth from the previous year’s $8,094,000 and $3.94 per share.

Quarterly Dividends and Shareholder Value

With shareholders in mind, the Board of Directors has declared a 7.00% preferred dividend, amounting to $0.49 per share, set to be paid on November 6, 2026, to preferred shareholders registered as of October 30, 2026. Additionally, a quarterly dividend of $0.25 per share, which totals an annualized $1.00 per share, will be distributed on November 16, 2026, to common shareholders whose records are up to date as of November 9, 2026.

President and CEO Michelle Austin expressed her enthusiasm regarding the bank’s performance: “We are pleased to report another successful quarter of strong financial performance, reflecting the continued strength and disciplined execution of our long-term strategy.” She noted that these results demonstrate a steady growth trajectory while underlining the bank's commitment to personalized banking experiences for its customers.

Financial Highlights from Q3 2026

• - Net Income Growth: The bank saw a 37.72% increase in net income compared to Q3 2025, which reinforces its stable financial positioning.
• - Net Interest Margin: The bank’s net interest margin improved to 4.11%, a rise of 35 basis points over last year, primarily driven by stable asset yields and decreased costs in interest-bearing liabilities.
• - Noninterest Income: Noninterest income surged to $1,761,000, marking a 19.31% increase from the previous year, mostly due to higher service charges and increased mortgage loan sales.

However, the bank’s noninterest expense also increased, climbing to $6,135,000, primarily due to rising salaries, employee benefits, and operational costs. Despite these rising expenses, the bank’s Return on Average Assets (ROA) increased to 1.76% from 1.23%, and Return on Average Common Equity (ROE) rose to 16.70% from 12.48% compared to last year.

Strength in Balance Sheet and Asset Quality

The Bank of Botetourt continues to exhibit strength in its balance sheet, showcasing total unconsolidated assets reaching $941,677,000—an increase of 1.75% since December 31, 2025. The net loans also rose by $31,139,000, indicating active lending strategies and an increase in deposits by $5,283,000, showing customer trust and retention.

What's noteworthy is the maintaining of a loan-to-deposit ratio of 94.07% as of September 30, 2026. Although there was a slight increase in non-performing assets, primarily due to one new added loan, the bank’s overall asset quality remains sound with no foreclosures reported.

Conclusion

The latest quarterly results from the Bank of Botetourt reflect an efficient execution of strategic initiatives aimed at ensuring sustained growth and operational excellence. With dividends on the horizon, expectations from shareholders remain high as the bank continues to prioritize their needs while investing in community-centric solutions. As noted, the Bank of Botetourt stands ready to face future challenges while fostering relationships built on trust and grounded in financial expertise.