DALEVILLE – Bank of Botetourt announced last week its unaudited financial results for the quarter-ended Sept, 30, 2020, slipped 26 percent from the same time last year.
The bank produced net income amounting to $1,095,000 or $0.64 per basic share in the third quarter compares to a net income of $1,483,000 or $0.86 per share, for the same period last year, according to a bank press release.
For the nine months-ended of 2020 the bank net income was down more than 11 percent compared to the same period in 2019, $3,305,000 or $1.92 per basic share versus net income of $3,741,000 or $2.18 per share, the release states.
The bank reported as of Sept. 30:
• Return on average assets of 0.80 percent
• Return on average equity of 8.53 percent
• Book value of $30.75
• $1.60 million year-to-date provision for loan losses
• Third quarter loan extension, skip-a-payment, and modification requests slowed to 21 loans with balances of $1 million bringing the year-to-date total to 251 loans with balances of $57.1 million
• Community Bank Leverage Ratio (“CBLR”) of 9.25 percent
As a result of its financial performance, the Board of Directors voted to pay the $0.175 per share quarterly dividend, or $0.70 per share annualized which is payable on Nov. 19, 2020, to shareholders of record Nov. 12, 2020
Basic and diluted earnings per share decreased 25 percent from $0.86 at Sept. 30, 2019, to $0.64 at September 30, 2020. The decrease in net income is primarily due to a $395,000 higher loan loss provision compared to the prior year, the release states.
The decrease in net income is primarily attributed to an increase in a higher provision for loan losses related to the uncertain economic conditions related to the COVID-19 health pandemic. Provision for loan losses totaled $1,610,000 at Sept. 30, 2020 compared to $620,000 the same time last year, the release states.
“The increase is related to growth in the portfolio as well as accounting for the environmental factors related to the large span of industries negatively impacted by the social distancing guidance, unemployment claims, and the anticipated expiration of the temporary increase in unemployment compensation benefits under the Federal Pandemic Unemployment Compensation program,” the release explains.
At the end of Q3 total assets amounted to $586,724,000, an increase of 19.1 percent above total assets at December 31, 2019 of $492,817,000, an increase of $93,907,000.
Paycheck Protection Program
Bank of Botetourt is participating in the Paycheck Protection Program (“PPP”) initiated by the U.S. Department of the Treasury on April 3. As of Sept. 30, 2020, the bank has processed and received approval from the U.S. Small Business Administration on 488 applications for approximately $30.1 million. Bank of Botetourt funded these loans using its on-balance sheet liquidity.