Buchanan-based Bank of Botetourt announced today has filed its Call Report with the Federal Deposit Insurance Corporation and reports the following unaudited financial results for year ended December 31, 2021.
Net income for the fiscal year ended 2021 amounted to $6,879,000, exceeding budget expectations. This amount compares to $4,631,000 for the same period of 2020, representing an increase of $2,248,000 or 48.5%. The increase in annual earnings is primarily attributed to less than anticipated contribution to the allowance loan losses and more revenue than projected from the Paycheck Protection Program (“PPP”) and mortgage lending activities.
Both basic and diluted earnings per share amounted to $3.58 at December 31, 2021 compared to $2.44 one year prior. Book value was $29.40 at December 31, 2021 as compared to $27.43 at December 31, 2020. Both earnings per share and book value for the comparative periods have been adjusted to reflect the 10% stock dividend paid on December 17, 2021.
As a result of the exceptional financial performance, the board of directors voted to increase the quarterly dividend payment from $0.18 to $0.185 per share, or $0.74 per share annualized, payable on February 18, 2022 to shareholders of record February 11, 2022. This represents an increase in dividend payment of 2.8%.
For the three months ended December 31, 2021, the bank reported net income amounting to $1,501,000 or $0.77 per basic share in the fourth quarter. This amount compares to a net income of $1,326,000 or $0.70 per basic share, for the same period last year.
At December 31, 2021, total consolidated assets amounted to $662,229,000, an 11.0% increase from $596,595,000 at December 31, 2020, or $65,634,000. Total net loans decreased $28,766,000, or 6.3%, from $454,665,000 at December 31, 2020 to $425,899,000 at December 31, 2021. Total deposits at December 31, 2021 amounted to $597,122,000, compared to $535,547,000 at December 31, 2020, an increase of 11.5% or $61,575,000.
At December 31, 2021, select financial highlights include:
- Return on average assets of 1.06%
- Return on average equity of 12.12%
- Total deposit growth of 11.50%
- Total asset growth of 11.04%
- Net loans decreased 6.3%
- Community Bank Leverage Ratio of 9.14%
- Strong liquidity position
- Outstanding Paycheck Protection Program (“PPP”) loans of $6.0 million at December 31, 2021 with deferred PPP loan servicing fees balance of $460,000
- Nine consecutive years of increased dividend payments
- Largest community bank headquartered in the Roanoke Metropolitan Statistical Area
President & CEO G. Lyn Hayth III stated, “Bank of Botetourt posted exceptional financial results for 2021, exceeding budget expectations. SBA forgiveness of PPP loans and the subsequent revenue recognition contributed to our successful financial results. In addition, strong and consistent revenue generated by our mortgage loan activity added to our profitability. Shareholders were rewarded with a 10% stock dividend in December and on January 26, 2022, the board of directors voted to increase the dividend payment to our shareholders from $0.18 to $0.185 per share.”