Bank of Botetourt Achieves Strong Financial Growth and Increased Dividends for 2024

Bank of Botetourt's Financial Success in 2024

The Bank of Botetourt, located in Buchanan, Virginia, has recently announced its unaudited financial performance for the concluding months of 2024. This community-focused bank recorded a remarkable net income of approximately $1.954 million for the fourth quarter, which translates to earnings of $0.94 per share. This figure is an improvement compared to $1.800 million or $0.86 per share for the same period last year.

In terms of annual performance, the bank's total net income for the year stood at $7.942 million, demonstrating a slight decline to $3.82 per share from $8.173 million and $3.95 per share in 2023. However, the earnings report reveals significant growth indicators that showcase the bank's resilience and robust standing in the financial sector.

Among the notable financial metrics, the bank achieved a return on average assets of 0.97% and a return on average equity of 10.10%. The book value per share climbed to $38.78 with total deposits appreciating by 10.94%, indicating a strong preference among depositors. The bank's total assets also rose by 8.35%, reaching nearly $857 million. Net loans surged by 13.20%, reflecting increasing customer engagement and loan approval rates.

In light of these positive financial results, the Bank of Botetourt’s Board of Directors decided to enhance the dividend rates for shareholders. A preferred dividend of 7% will be payable on February 7, 2025, alongside a quarterly dividend of $0.225 per common share, payable on February 18, 2025. CEO and Vice Chairman G. Lyn Hayth III emphasized the commitment to delivering value to shareholders while supporting community initiatives. He stated, "We have surpassed our budget expectations for 2024 and remain dedicated to sustainable growth and innovation."

Upon examining the operations, the bank's net interest income reached $25.953 million over the year, attributed heavily to interest and fees from loans. However, the costs associated with deposits and borrowing also saw a rise, stressing the importance of maintaining a balanced financial approach. Noninterest income experienced a notable increase of 22.61%, landing at $1.486 million for the fourth quarter.

The bank's financial condition mirrored a steadfast quality in its asset management. With no foreclosures reported at year-end, the volume of non-performing assets decreased significantly, depicting a more favorable credit environment. The asset quality reinforced by the allowance for credit losses demonstrated prudent risk management practices executed by the bank.

Capital ratios established through a community bank leverage ratio framework were also highlighted, as the bank reported a CBLR of 10.25%. This figure not only meets regulatory standards but reflects the bank's commitment to maintaining a robust capital base.

As part of strategic advancements, Bank of Botetourt opened its fourteenth full-service branch in Rocky Mount on December 23, 2024. This expansion signifies the intent to broaden the bank's services while ensuring community accessibility to banking resources. The new location will offer an array of services, including a 24/7 accessible ATM and support from the bank's mortgage division, Virginia Mountain Mortgage.

Overall, the Bank of Botetourt showcased a promising trajectory heading into 2025, with a solid focus on community engagement, financial prudence, and shareholder value. This local institution stands as an emblem of growth and persistence amid an ever-evolving financial landscape.