Buchanan-based Bank of Botetourt has announced its unaudited financial results for the quarter ended March 31, 2022. The bank produced net income amounting to $1,543,000. The net income equated to $0.80 per basic share in the first quarter. This amount compares to a net income of $1,980,000 or $1.04 per share, for the same period last year.
At March 31, 2022, select financial information and key highlights include:
- Return on average assets of 0.90%
- Return on average equity of 10.41%
- Book value of $30.91
- Total deposit growth of 6.07%
- Total asset growth of 5.54%
- Community Bank Leverage Ratio of 9.13%
- Strong liquidity position
- Net interest margin of 2.91% at March 31, 2022 compared to 2.99% one year prior.
As a result of the solid financial performance, the board of directors voted to pay the $0.185 per share quarterly dividend, or $0.74 per share annualized which is payable on May 19 to shareholders of record May 12.
President & CEO G. Lyn Hayth III said, “Our first quarter financial results exceeded budget expectations. SBA forgiveness of PPP loans and the subsequent revenue recognition contributed to our successful financial results. In addition, strong and consistent title insurance revenue generated by our subsidiaries has been a contributor to 2022 earnings.”
Net income for the three months ended March 31, 2022 was $1,543,000 compared to $1,980,000 for the same period last year, representing an decrease of $437,000 or 22.07%. Basic and diluted earnings per share decreased $0.24 from $1.04 at March 31, 2021 to $0.80 at March 31, 2022. The decrease in net income is primarily due to $322,000 less loan interest income, $205,000 more provision for loan losses, and a $437,000 increase in noninterest expense, primarily salaries, benefits, and fixed asset expenses.
Financial Condition
At March 31, 2022 total assets amounted to $700,538,000, an increase of 5.54% above total assets at December 31, 2021 of $663,766,000, an increase of $36,772,000. Total net loans decreased $9,352,000 or 2.20% from $425,902,000 at December 31, 2021 to $416,550,000 at March 31, 2022. Total deposits at December 31, 2021 amounted to $598,659,000, compared to $635,001,000 at March 31, 2022, an increase of 6.07% or $36,342,000. The increase in deposits is attributable to organic growth. As of March 31, 2022 Bank of Botetourt reported its CBLR ratio at 9.13% which meets the required regulatory minimum ratio.
Paycheck Protection Program
Bank of Botetourt was a participant in the Paycheck Protection Program (“PPP”) initiated by the U.S. Department of the Treasury. Both rounds of PPP lending totaled $44,200,000, with $40,100,000 receiving forgiveness from the SBA through March 31, 2022. As a result, $4,100,000 million of PPP loans remain on the balance sheet at the end of the first quarter. Deferred PPP loan servicing fees totaled $261,000 at March 31, 2022 while the Bank recognized $199,000 in revenue during 2022.
Strategic Initiative & Award
Bank of Botetourt’s website, www.bankofbotetourt.com, launched a refreshed and a more modernized version with easy-to-use navigation on April 6, 2022. On April 21, 2022, Bank of Botetourt was honored with the Chancellor’s Award for Leadership in Philanthropy in Richmond, Virginia. The Virginia Foundation for Community College Education annually honors individuals and organizations who through their leadership and dedication to philanthropy have improved the quality of life in their communities across the Commonwealth of Virginia.