Bank of Botetourt's Strong Performance in Recent Quarter
Bank of Botetourt Financial Overview
The Bank of Botetourt (OTCPK: BORT and BORTP) has unveiled its latest financial performance for the quarter ended September 30, showing remarkable growth in their net income. The institution reported a net income of $2,882,000, which translates to $1.40 per basic share, a significant rise from last year’s corresponding quarter, where the net income was $1,967,000 ($0.94 per share).
Year-to-Date Financial Insights
Across the first nine months of the year, the Bank's performance was equally impressive with a total net income of $8,094,000 or ($3.94 per basic share), up from $5,988,000 ($2.88 per share) from the same period last year. This upward trend highlights the institution's strong financial management and strategic objectives.
Performance Metrics
As of September 30, key statistics and financial ratios are noteworthy:
- Return on average assets stood at 1.23%.
- Return on average equity reached 12.48%.
- Book value per share is $42.86.
- Total deposits grew by 1.23%.
- Total assets increased by 4.61%.
- Total loans advanced by a remarkable 8.38%.
- Community bank leverage ratio measured at 10.57%.
- Net interest margin reported at 3.76%.
Dividend Announcements
The Board of Directors has announced a preferred dividend of 7.00%, amounting to $0.49 per share, to be disbursed to preferred shareholders recorded by October 31, with payment on November 7. Additionally, a quarterly dividend of $0.225 per common share will be distributed, reflecting an annualized payout of $0.90, payable on November 17 to common shareholders on record by November 10.
CEO Statement
Michelle Austin, President & CEO, expressed pride in the Bank's results, stating, "Our third-quarter outcomes reinforce the Bank's resilience and adherence to our strategic focus. We aim to provide ongoing value to our shareholders while maintaining a commitment to our communities. Our team's dedication is evident in the positive impacts we are making across our markets."
Profit and Loss Analysis
In the quarter ended September 30, the net income of $2,882,000, represents a 46.52% increase from the previous year, attributed mainly to a significant increase in interest income of $1,585,000. The institution also recorded lesser interest expenses on borrowings and a rise in noninterest income of $125,000.
Credit Quality and Risk Management
The allowance for credit losses to total loans and leases outstanding came in at 1.16%. This marks a gradual decline compared to the previous year, indicating effective management and a cautious approach to credit risk. There were no foreclosed properties reported at either the beginning of the year or at quarter-end.
Conclusion
The Bank of Botetourt continues to perform strongly against competing banks, demonstrating resilience and a commitment to sound financial practices. The achievements over the past quarter and year-to-date showcase a steadfast growth trajectory, which customers and shareholders can confidently regard.
Frequently Asked Questions
1. What was the net income for the recent quarter?
The net income for the recent quarter ending September 30 was $2,882,000.
2. How does this quarter's performance compare to last year's?
This quarter shows an increase in net income of 46.52% compared to the same quarter last year.
3. What are the dividends announced by the Bank?
The Bank announced a preferred dividend of $0.49 per share and a common dividend of $0.225 per share.
4. What is the return on average assets for the Bank?
The return on average assets is 1.23% as of September 30.
5. How much did total loans increase in the last quarter?
Total loans increased by 8.38%, indicating solid growth in lending activities.
About The Author
Contact Dylan Bailey privately here. Or send an email with ATTN: Dylan Bailey as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.
