Buchanan-based Bank of Botetourt has announced its unaudited financial results for the quarter-ended March 31, 2019. The bank produced net income amounting to $1,154,000 or $0.67 per basic share in the first quarter. This amount compares to a net income of $1,112,000 or $0.78 per share, for the same period last year. The increase in net income is primarily due to higher total interest income.
The bank has realized continued strong loan demand in 2019 as gross loans increased 2.9 percent. Interest and fees on loans at March 31, 2019 increased $721,000 over the same three month time period of 2018.
At March 31, 2019 total assets amounted to $457,731,000, an increase of 5.0 percent above total assets at December 31, 2018 of $435,765,000, an increase of $21,966,000. Total net loans increased $11,135,000 or 2.9 percent from $380,404,000 at December 31, 2018 to $391,539,000 at March 31, 2019. Total deposits at December 31, 2018 amounted to $386,324,000, compared to $406,320,000 at March 31, 2019, an increase of 5.2 percent or $19,996,000. The increase in deposits organically funded the loan demand without reliance on borrowed funds.
Book value was $27.54 at March 31, 2019 as compared to $25.05 one year prior. As a result of the solid financial performance, the Board of Directors voted to pay the $0.16 per share quarterly dividend, or $0.64 per share annualized which is payable on May 17, 2019 to shareholders of record May 10, 2019.
President & CEO, G. Lyn Hayth III said, “Our 2019 performance is off to a great start. Strong loan and deposit growth has helped the bank surpass our first quarter budget expectations.”
Bank of Botetourt continues to be a well capitalized institution and exceed the BASEL III capital requirements. As of March 31, Bank of Botetourt reported tier 1 leverage capital of 10.81 percent and total capital of 14.12 percent. Both common equity tier 1 and tier 1 capital ratios were 13.14 percent.
Bank of Botetourt’s construction to expand and relocate its limited service office at 3214 Electric Road, Roanoke, to a standalone full-service office located at 3232 Electric Road, Roanoke is nearing completion. The bank previously received regulatory approval and the new Cave Spring office will be 2,660 square feet and include an ATM with deposit capabilities and will continue housing the bank’s mortgage company, Virginia Mountain Mortgage. The grand opening celebration is scheduled for June 7.
Bank of Botetourt was chartered in 1899 and operates 12 retail offices in Botetourt, Rockbridge, Roanoke, and Franklin counties and the City of Salem. Bank of Botetourt also operates a mortgage division, Virginia Mountain Mortgage, and a financial services division, Botetourt Wealth Management.