BUCHANAN, Va., July 30, 2026 /PRNewswire/ -- Buchanan-based Bank of Botetourt (OTCID: BORT and BORTP) announced today its unaudited financial results for the three and six months-ended June 30, 2026. The Bank produced net income amounting to $5,300,000 or $2.62 per basic share in the second quarter. This amount compares to net income of $3,168,000 or $1.55 per share, for the same period last year. For the six months-ended the Bank produced net income amounting to $8,386,000 or $4.13 per basic share. This amount compares to a net income of $5,212,000 or $2.53 per share, for the same period last year. The Board of Directors voted to pay the 7.00% preferred dividend, which calculates to $0.49 per share on August 7, 2026, to preferred shareholders of record July 31, 2026. Furthermore, the Board of Directors voted to pay the $0.25 per share quarterly dividend, or $1.00 per share annualized, which is payable on August 17, 2026, to common shareholders of record August 10, 2026.
The second quarter results benefited from a significant one-time, non-recurring income event, which complemented another quarter of sound operating performance across our Bank. Bearing Insurance Group, LLC ("Bearing") completed its sale to BroadStreet Partners Group, LLC. Bank of Botetourt owned 3 units of Bearing and upon consummation of the sale recorded a one-time, pre-tax gain of $3,800,000 on the transaction, which was recognized in its financial results for the second quarter of 2026. President & CEO, Michelle Austin stated, "The additional earnings generated from this transaction strengthened our capital position and enhanced shareholder value while providing greater flexibility to support our long-term strategic objectives."
Second Quarter 2026 Highlights
Income Statement
Net income of $5,300,000 for the second quarter of 2026, an increase of $2,132,000, or 67.30%, from the same time period in 2025.
Net interest margin for the second quarter of 2026 was 4.02%, an increase of 49 basis points over the same quarter of 2025. The increase is primarily driven by consistent asset yields and a lower cost of interest-bearing liabilities.
For the three months ended June 30, 2026, the Bank recorded a provision for credit loss expense of $505,000 including a reserve for unfunded commitments of $86,000. This compares to $8,000 for the same period last year, representing a increase of $497,000. The provision recorded during the quarter mainly reflected allocations necessitated by net loan growth and adjustments to historical loss factors to better represent expectations for future credit losses.
Noninterest income increased by $1,919,000, or 117.51%, to $3,552,000 for the three months ended June 30, 2026, compared to $1,633,000 for same period of 2025. The increase is attributed to the aforementioned one-time income event, an increase in service charges on deposit accounts, and an increase in gain on sale of mortgage loans.
Noninterest expense increased $500,000 from $5,574,000 at June 30, 2025, to $6,074,000 at June 30, 2026. The increase is primarily related to increases in salaries and employee benefits, debit card expense, and core processing expenses.
Annualized return on average assets ("ROA") was 1.79% for the second quarter of 2026 compared to 1.19% for the same period of 2025. Annualized return on average common equity ("ROE") was 17.31% for the second quarter of 2026 compared to 12.08% for the same period of 2025.
Balance Sheet and Asset Quality
Total unconsolidated assets amounted to $939,409,000, an increase of $13,902,000, or 1.50% above total assets at December 31, 2025.
Debt securities available for sale decreased $8,747,000 from December 31, 2025. The decrease is primarily attributable to the maturity of $9,500,000 in agency securities, $500,000 in corporate bonds, and $710,000 in municipal bonds, offset by the purchase of $2,990,000 mortgage-backed securities and $785,000 municipal bonds during the first six months of 2026.
Net loans increased $22,605,000, or 3.01%. Deposits decreased $4,002,000, or (0.48%). The net effect of these balance sheet changes resulted in an decrease in cash and cash equivalents of $4,788,000, or (8.47%). The Bank's loan to deposit ratio of 94.10%, on June 30, 2026, is a 2.01% increase from 92.09% at December 31, 2025.
The Bank had no foreclosed properties at December 31, 2025, and June 30, 2026, respectively. Therefore, non-performing assets only consisted of nonaccrual loans. One commercial and industrial loan totaling $83,000 was subsequently charged-off during the second quarter therefore, non-performing assets decreased at June 30, 2026, to $35,000, compared to $41,000 at December 31, 2025.
The allowance for credit losses to total loans was 1.14% on June 30, 2026, compared to 1.10% on December 31, 2025 and 1.18% at June 30, 2025.
Book value per share at June 30, 2026, was $47.83, an increase of $3.64 from year-end 2025.
Capital
As of June 30, 2026, Bank of Botetourt reported its CBLR ratio at 11.00% which meets the required regulatory minimum ratio. This compares to a CBLR ratio of 10.42% at December 31, 2025.
About Bank of Botetourt
Chartered in 1899, Bank of Botetourt is a full-service community bank serving customers through fourteen retail offices across Botetourt, Franklin, Roanoke, and Rockbridge counties, as well as the Cities of Roanoke and Salem and the Towns of Vinton and Rocky Mount in Virginia. The Bank also operates Virginia Mountain Mortgage, its residential lending division, and Botetourt Wealth Management, offering financial planning and investment services. Recognized by Forbes as a multi-year top-ranked bank in Virginia, Bank of Botetourt continues to build on its long-standing tradition of service, strength, and local commitment.
Bank of Botetourt | ||||
(unaudited) | (audited) | |||
June 30, | December 31, | |||
2026 | 2025 | |||
Assets | ||||
Cash and due from banks | $ 12,168,000 | $ 13,031,000 | ||
Interest-bearing deposits with banks | 38,528,000 | 42,117,000 | ||
Federal funds sold | 946,000 | 1,282,000 | ||
Total cash and cash equivalents | 51,642,000 | 56,430,000 | ||
Debt securities held to maturity, net of allowance | 8,182,000 | 9,182,000 | ||
for credit losses of $18,000 at June 30, 2026 and | ||||
December 31, 2025, respectively | ||||
Debt securities available for sale | 61,215,000 | 69,962,000 | ||
Loans, net of allowance for credit losses of $8,899,000 at | 772,973,000 | 750,368,000 | ||
June 30, 2026 and $8,374,000 at December 31, 2025. | ||||
Loans held for sale | 1,355,000 | 1,737,000 | ||
Premises and fixed assets, net | 18,118,000 | 16,515,000 | ||
Investment in unconsolidated subsidiaries | 5,564,000 | 3,517,000 | ||
Other assets | 20,360,000 | 17,796,000 | ||
Total assets | $ 939,409,000 | $ 925,507,000 | ||
Liabilities and Stockholders' Equity | ||||
Liabilities | ||||
Noninterest-bearing deposits | $ 185,220,000 | $ 166,954,000 | ||
Interest-bearing deposits | 636,248,000 | 658,516,000 | ||
Total deposits | 821,468,000 | 825,470,000 | ||
Other borrowings | 10,000,000 | - | ||
Other liabilities | 6,927,000 | 6,520,000 | ||
Total liabilities | 838,395,000 | 831,990,000 | ||
Commitments and contingencies | - | - | ||
Stockholders' Equity | ||||
Preferred stock, $1.00 par value; 1,000,000 shares | ||||
authorized; 243,659 issued and outstanding | ||||
at June 30, 2026 and at December 31, 2025, respectively | 244,000 | 244,000 | ||
Common stock, $1.50 par value; 5,000,000 shares | ||||
authorized; 1,975,193 and 1,970,230 issued and | ||||
outstanding at June 30, 2026 and at December 31, 2025, | ||||
respectively | 2,963,000 | 2,955,000 | ||
Additional paid-in capital | 24,720,000 | 24,504,000 | ||
Retained earnings | 74,996,000 | 67,834,000 | ||
Accumulated other comprehensive loss | (1,909,000) | (2,020,000) | ||
Total stockholders' equity | 101,014,000 | 93,517,000 | ||
Total liabilities and stockholders' equity | $ 939,409,000 | $ 925,507,000 |
Bank of Botetourt | |||||||
Six Months Ended | Three Months Ended | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Interest income | |||||||
Loans and fees on loans | $ 24,194,000 | $ 21,304,000 | $ 12,180,000 | $ 10,861,000 | |||
Securities: | |||||||
U.S. Treasury and Government Agencies | 235,000 | 301,000 | 110,000 | 147,000 | |||
Mortgage-backed securities | 276,000 | 109,000 | 143,000 | 53,000 | |||
All other securities | 419,000 | 417,000 | 207,000 | 208,000 | |||
Due from depository institutions | 854,000 | 1,005,000 | 498,000 | 496,000 | |||
Federal funds sold | 16,000 | 17,000 | 8,000 | 9,000 | |||
Total Interest income | 25,994,000 | 23,153,000 | 13,146,000 | 11,774,000 | |||
Interest expense | |||||||
Deposits | 8,038,000 | 7,824,000 | 3,990,000 | 3,830,000 | |||
Other borrowings | 2,000 | - | 2,000 | - | |||
Total Interest expense | 8,040,000 | 7,824,000 | 3,992,000 | 3,830,000 | |||
Net Interest Income | 17,954,000 | 15,329,000 | 9,154,000 | 7,944,000 | |||
Provision for credit losses | 840,000 | 362,000 | 505,000 | 8,000 | |||
Net Interest Income after credit loss expense | 17,114,000 | 14,967,000 | 8,649,000 | 7,936,000 | |||
Noninterest income | |||||||
Service charges on deposit accounts | 725,000 | 634,000 | 361,000 | 319,000 | |||
Securities brokerage and annuities | 179,000 | 124,000 | 100,000 | 49,000 | |||
Other income, net of gains | 4,181,000 | 2,119,000 | 3,091,000 | 1,265,000 | |||
Total noninterest income | 5,085,000 | 2,877,000 | 3,552,000 | 1,633,000 | |||
Noninterest expense | |||||||
Salaries and employee benefits | 5,122,000 | 4,709,000 | 2,500,000 | 2,378,000 | |||
Premises and fixed assets expense | 1,170,000 | 1,187,000 | 572,000 | 567,000 | |||
Other expense | 5,907,000 | 5,380,000 | 3,002,000 | 2,629,000 | |||
Total noninterest expense | 12,199,000 | 11,276,000 | 6,074,000 | 5,574,000 | |||
Income before income taxes | 10,000,000 | 6,568,000 | 6,127,000 | 3,995,000 | |||
Income tax expense | 1,614,000 | 1,356,000 | 827,000 | 827,000 | |||
Net income | 8,386,000 | 5,212,000 | 5,300,000 | 3,168,000 | |||
Preferred stock dividends | 239,000 | 239,000 | 120,000 | 120,000 | |||
Net income available to common shareholders | $ 8,147,000 | $ 4,973,000 | $ 5,180,000 | $ 3,048,000 | |||
Basic earnings per share | $ 4.13 | $ 2.53 | $ 2.62 | $ 1.55 | |||
Diluted earnings per share | $ 4.13 | $ 2.53 | $ 2.62 | $ 1.55 | |||
Dividends declared per share | $ 0.50 | $ 0.45 | $ 0.25 | $ 0.225 | |||
Basic weighted average shares outstanding | 1,973,040 | 1,963,718 | 1,974,323 | 1,965,101 | |||
Diluted weighted average shares outstanding | 1,973,040 | 1,963,718 | 1,974,323 | 1,965,101 |
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