#United States #Dividend #Bank of Botetourt #Buchanan

Bank of Botetourt Reports Strong Financial Growth and Dividend Increase for 2025

The Bank of Botetourt, headquartered in Buchanan, Virginia, has made headlines with its recent financial results for 2025, revealing exceptional growth and profitability. The unaudited figures indicate a robust performance offering insights into the bank’s financial health and strategic direction.

In the fourth quarter of 2025, the bank reported a net income of $2,709,000, translating to $1.32 per basic share. This figure marks a notable increase from the $1,954,000 or $0.94 per share recorded in the same quarter the previous year. For the entire year, the bank achieved a net income of $10,802,000, equating to $5.25 per share, compared to $7,942,000 or $3.82 per share in the prior year.

Key Financial Highlights

• - The bank's Return on Average Assets stood at 1.22%, while the Return on Average Equity reached 12.29%, reflecting effective management in generating profits.
• - The Bank reported a book value of $44.19 with a total asset growth of 7.70%, amounting to assets of $923,097,000 at year-end.
• - Loan growth was also impressive at 11.73%, with net loans totaling $750,368,000.
• - The aggregate deposits increased by 7.28%, totaling $823,058,000 as of December 31, 2025.

Dividend Increase

In light of its strong financial performance, the Board of Directors has decided to increase dividends significantly. A preferred dividend of 7.00%, amounting to $0.49 per share, is scheduled to be paid on February 6, 2026. Additionally, a quarterly dividend of $0.25 per share, representing an 11.1% increase from the previous dividend, will be available on February 17, 2026, for common shareholders.

Michelle Austin, President and CEO of Bank of Botetourt, commented, _"This strong performance in 2025 illustrates our commitment to disciplined execution of our strategy. We are grateful for the trust of our customers, support from our community, and the dedication of our employees. We remain focused on enhancing shareholder value and investing in the communities we serve."_

Operational Insights

An analysis of the operational aspects shows that the increase in net income can primarily be attributed to an additional $1,588,000 from interest and fees on loan income. Meanwhile, the reduction in expenses concerning deposits and other borrowings aided in improving the net position.

However, the bank also faced some challenges, such as a provision for credit losses, which increased from $364,000 in the same quarter last year to $408,000 in 2025. This adjustment took into account recent loan growth and anticipated future credit losses. The bank's allowance for credit losses to total loans and leases outstanding was measured at 1.10%, signifying prudent risk management practices.

Despite the challenges, non-interest income notably increased, with service charges on deposit accounts and other fees propelling growth.

Continuing Community Commitment

Established in 1899, Bank of Botetourt prides itself on being a community-centric bank. With 14 retail offices located in Botetourt, Franklin, Roanoke, and Rockbridge counties, it continues to enhance its services through divisions like Virginia Mountain Mortgage and Botetourt Wealth Management. The bank has garnered recognition by Forbes as one of Virginia's top-ranked banks, underscoring its commitment to customer service and community support.

As the bank forges ahead, its continued focus on delivering shareholder value alongside investing in community development is set to benefit its stakeholders and the broader community.

In summary, Bank of Botetourt enters 2026 on a solid financial footing, equipped for sustainable growth and a proactive approach towards fulfilling its mission and commitments to its customers and community.