Bank of Botetourt posts most profitable quarter in its history
Bank of Botetourt (OTCPK: BORT) reported a historic net income of $1,980,000, or $1.14 per share, for Q1 2021, marking a 90.8% increase from $1,038,000 in Q1 2020. Total assets rose to $641 million, a 7.2% increase, while total deposits grew by 7.6% to $577.7 million. The bank maintained a strong Community Bank Leverage Ratio of 9.20%. Revenue from PPP loans contributed significantly, with a total of $31.5 million in PPP loans outstanding. A quarterly dividend of $0.18 per share was declared, payable on May 19, 2021.
- Record net income of $1,980,000 for Q1 2021, a 90.8% increase from prior year.
- Earnings per share rose significantly to $1.14.
- Total assets increased by 7.2%, reaching $641 million.
- Strong total deposit growth of 7.6%, totaling $577.7 million.
- Community Bank Leverage Ratio stood strong at 9.20%.
- Net interest margin decreased to 2.99% from 3.43% year-over-year.
- Total nonperforming assets remained at $2.7 million, indicating ongoing credit concerns.
BUCHANAN, Va., April 30, 2021 /PRNewswire/ -- Buchanan-based Bank of Botetourt (OTCPK: BORT) announced today its unaudited financial results for the quarter-ended March 31, 2021. The Bank produced net income amounting to
At March 31, 2021, select financial highlights include:
- Return on average assets of
1.29% - Return on average equity of
14.49% - Book value of
$32.05 - Total deposit growth of
7.6% - Total asset growth of
7.2% - Community Bank Leverage Ratio of
9.20% - Strong liquidity position
- Net interest margin of
2.99% at March 31, 2021 compared to3.43% one year prior. - Outstanding Paycheck Protection Program ("PPP") loans of
$26.2 million reported at December 31, 2020 decreased to$18.0 million at March 31, 2021 after receiving SBA forgiveness on$8.2 million . The Bank recognized$343,000 in revenue from the forgiven loans. - In 2021, the Bank participated in the next round of the SBA's PPP Program. During the first quarter, the Bank generated
$15.9 million new PPP loans. The bank recognized$24,000 in revenue related to this tranche of PPP lending. - At quarter-end, PPP loan balances, from both rounds, totaled
$31.5 million with$869,000 in deferred revenue.
As a result of the strong financial performance, the Board of Directors voted to pay the
Management Discussion & Analysis
Results of Operations
Net income for the three months ended March 31, 2021 was
Net income was augmented because there of no provision for loan losses required by the quarterly calculation for the three months ended March 31, 2021 as compared to
Loan growth remained virtually unchanged as net loans increased
Noninterest income increased by
Noninterest expense decreased
Income tax expense for the three months ended March 31, 2021 was
Financial Condition
At March 31, 2021 total assets amounted to
Stockholders' equity totaled
Non-Performing Assets
Non-performing assets, which consist of nonaccrual loans and foreclosed properties decreased from
A loan is considered impaired if it is probable that the Bank will be unable to collect all amounts due under the contractual terms of the loan agreement. Impaired loans amounted to
The Bank historically makes a conscious effort to attempt work-out loan scenarios with past due customers. In some cases, loan restructuring is appropriate. Bank management has procedures and processes in place to identify, monitor, and report troubled debt restructurings. At March 31, 2021, troubled debt restructurings ("TDRs") totaled
Capital Ratios
Bank of Botetourt qualified for and adopted the optional, simplified measure of capital adequacy, the community bank leverage ratio framework, consistent with Section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act. A qualifying community banking organization is defined as having less than
Paycheck Protection Program
Bank of Botetourt is a participant in the Paycheck Protection Program ("PPP") initiated by the U.S. Department of the Treasury. The
In 2021, the Bank participated in the next round of the SBA's PPP Program. During the first quarter, the Bank generated 226 new PPP loans for
At March 31, 2021, PPP loan balances, from both rounds, totaled
The Bank completed the updated requirements to borrow from the Payroll Protection Program Lending Facility ("PPPLF"), if needed, at the Federal Reserve Bank of Richmond. As of March 31, 2021 the Bank had not borrowed any funds from the PPPL facility
COVID-19 Customer & Employee Care
Bank of Botetourt is prepared to assist our customers and employees during the current phase of the pandemic. For loan customers impacted by COVID-19, the Bank has granted extensions, skip-a-payment, and modifications consistent with regulatory guidance. During the first quarter, additional requests for assistance slowed to only 2 requests. As of April 5, 2021 all of our offices are open will full access and all employees who worked from home during the pandemic returned to the office environment. Facemasks are required for all parties consistent with the Governor's Executive Order 72. Plexiglass shields and floor markers assist in complying with social distancing. The Bank had no layoffs as a result of COVID-19. All Bank employees are now eligible for the COVID-19 vaccine. The Bank has encouraged employees to be vaccinated and is monitoring its bank-wide vaccination rate.
About Bank of Botetourt
Bank of Botetourt was chartered in 1899 and operates twelve retail offices in Botetourt, Rockbridge, Roanoke, and Franklin counties and the City of Salem, all in Virginia. Bank of Botetourt also operates a mortgage division, Virginia Mountain Mortgage and a financial services division, Botetourt Wealth Management.
Bank of Botetourt | ||||
(unaudited) | (audited) | |||
March 31, | December 31, | |||
2021 | 2020 | |||
Assets | ||||
Cash and Due from banks | $ 8,618,000 | $ 7,979,000 | ||
Interest-bearing deposits with banks | 130,999,000 | 90,791,000 | ||
Federal funds sold | 357,000 | 387,000 | ||
Total cash and cash equivalents | 139,974,000 | 99,157,000 | ||
Investment securities available for sale | 18,141,000 | 16,802,000 | ||
Equity securities with readily determinable fair values | 66,000 | 51,000 | ||
Loans, net of allowance for loan losses of | 455,581,000 | 454,680,000 | ||
March 31, 2021 and | ||||
Loans held for sale | 716,000 | 686,000 | ||
Premises and fixed assets, net | 13,281,000 | 13,417,000 | ||
Other real estate owned | 1,429,000 | 1,961,000 | ||
Investment in unconsolidated subsidiaries | 2,410,000 | 2,082,000 | ||
Other assets | 9,486,000 | 8,958,000 | ||
Total assets | $ 641,084,000 | $ 597,794,000 | ||
Liabilities and Stockholders' Equity | ||||
Liabilities | ||||
Noninterest-bearing deposits | $ 77,684,000 | $ 65,965,000 | ||
Interest-bearing deposits | 500,053,000 | 470,840,000 | ||
Total deposits | 577,737,000 | 536,805,000 | ||
Other borrowings | 4,000,000 | 4,000,000 | ||
Other liabilities | 3,851,000 | 3,173,000 | ||
Total liabilities | 585,588,000 | 543,978,000 | ||
Commitments and contingencies | - | - | ||
Stockholders' Equity | ||||
Common stock, | ||||
authorized; 1,733,758 and 1,729,880 issued and | ||||
outstanding at March 31, 2021 and at December 31, 2020 | ||||
respectively | 2,600,000 | 2,595,000 | ||
Additional paid-in capital | 11,657,000 | 11,569,000 | ||
Retained earnings | 42,350,000 | 40,681,000 | ||
Accumulated other comprehensive loss | (1,111,000) | (1,029,000) | ||
Total stockholders' equity | 55,496,000 | 53,816,000 | ||
Total liabilities and stockholders' equity | $ 641,084,000 | $ 597,794,000 | ||
Bank of Botetourt | ||||
Three Months Ended | ||||
2021 | 2020 | |||
Interest income | ||||
Loans and fees on loans | $ 5,528,000 | $ 5,380,000 | ||
Investment securities: | ||||
U.S. Treasury and Government Agencies | 11,000 | 55,000 | ||
All other securities | 70,000 | 58,000 | ||
Due from depository institutions | 27,000 | 44,000 | ||
Federal Funds Sold | - | 1,000 | ||
Total Interest income | 5,636,000 | 5,538,000 | ||
Interest expense | ||||
Deposits | 828,000 | 1,247,000 | ||
Federal funds purchased | - | - | ||
Other borrowings | 18,000 | 27,000 | ||
Total Interest expense | 846,000 | 1,274,000 | ||
Net Interest Income | 4,790,000 | 4,264,000 | ||
Provision for loan losses | - | 445,000 | ||
Net Interest Income after provision for loan losses | 4,790,000 | 3,819,000 | ||
Noninterest income | ||||
Service charges on deposit accounts | 151,000 | 195,000 | ||
Securities brokerage and annuities | 23,000 | 33,000 | ||
Other income, net of gains (losses) | 938,000 | 795,000 | ||
Total noninterest income | 1,112,000 | 1,023,000 | ||
Noninterest expense | ||||
Salaries and employee benefits | 1,497,000 | 1,721,000 | ||
Premises and fixed assets expense | 378,000 | 367,000 | ||
Other expense | 1,532,000 | 1,454,000 | ||
Total noninterest expense | 3,407,000 | 3,542,000 | ||
Income before income taxes | 2,495,000 | 1,300,000 | ||
Income tax expense | 515,000 | 262,000 | ||
Net income | $ 1,980,000 | $ 1,038,000 | ||
Basic earnings per share | $ 1.14 | $ 0.60 | ||
Diluted earnings per share | $ 1.14 | $ 0.60 | ||
Dividends declared per share | $ 0.18 | $ 0.175 | ||
Basic weighted average shares outstanding | 1,731,690 | 1,721,652 | ||
Diluted weighted average shares outstanding | 1,731,690 | 1,721,652 | ||
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SOURCE Bank of Botetourt
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