The Board of Directors voted to pay the 7.00% preferred dividend, which calculates to $0.49 per share on May 8, 2026, to preferred shareholders of record May 1, 2026. Furthermore, the Board of Directors voted to pay the $0.25 per share quarterly dividend, or $1.00 per share annualized, which is payable on May 15, 2026, to common shareholders of record May 8, 2026. President & CEO, Michelle Austin stated, "We reported strong first quarter earnings, reflecting the strength of our core banking franchise, disciplined financial management, and consistent execution of our strategic priorities. These results underscore our ability to perform well while maintaining a conservative approach to growth and risk. Our success is driven by the dedication of our employees, whose commitment to our customers and communities continues to differentiate our organization. As we move forward, we remain focused on building long-term shareholder value while staying true to our mission of serving the communities in which we operate through sound banking practices and local engagement."
First Quarter 2026 Highlights
Income Statement
Net income of $3,086,000 for the first quarter of 2026, an increase of $1,042,000, or 50.98%, from the same quarter of 2025.
Net interest margin for the first quarter of 2026 was 3.97%, an increase of 38 basis points over the same quarter of 2025. The increase is primarily driven by consistent asset yields and a lower cost of interest-bearing liabilities.
For the three months ended March 31, 2026, the Bank recorded a provision for credit loss expense of $335,000 including a reserve for unfunded commitments of $41,000. This compares to $354,000 for the same period last year, representing a decrease of $19,000. The provision recorded during the quarter mainly reflected allocations necessitated by net loan growth and adjustments to historical loss factors to better represent expectations for future credit losses.
Noninterest income increased by $289,000, or 23.23%, to $1,533,000 for the three months ended March 31, 2026, compared to $1,244,000 for same period of 2025. The increase is attributed to an increase in service charges on deposit accounts, income from title insurance subsidiaries, and an increase in gain on sale of mortgage loans.
Noninterest expense increased $423,000 from $5,702,000 at March 31, 2025, to $6,125,000 at March 31, 2026. The increase is primarily related to increases in salaries and employee benefits, debit card expense, and core processing expenses.
Annualized return on average assets ("ROA") was 1.33% for the first quarter of 2026 compared to 0.95% for the same period of 2025. Annualized return on average common equity ("ROE") was 13.02% for the first quarter of 2026 compared to 9.77% for the same period of 2025.
Balance Sheet and Asset Quality
Total assets amounted to $938,035,000, an increase of $12,528,000, or 1.35% above total assets at December 31, 2025.
Debt securities available for sale decreased $4,903,000 from December 31, 2025. The decrease is primarily attributable to the maturity of $3,500,000 in U.S. Treasury Notes, $500,000 in corporate bonds, and $710,000 in municipal bonds during the first quarter of 2026. Net loans increased $4,794,000, or 0.64%. Deposits increased $8,531,000, or 1.03%. The net effect of these balance sheet changes resulted in an increase in cash and cash equivalents of $12,952,000, or 23.05%. The Bank's loan to deposit ratio of 91.58%, on March 31, 2026, is a slight decrease from 92.09% at December 31, 2025.
The Bank had no foreclosed properties at December 31, 2025, and March 31, 2026, respectively. Therefore, non-performing assets only consisted of nonaccrual loans. With the addition of one Commercial and Industrial loan, non-performing assets increased at March 31, 2026 to $120,000, compared to $41,000 at December 31, 2025.
The allowance for credit losses to total loans was 1.13% on March 31, 2026, compared to 1.10% on December 31, 2025 and 1.20% at March 31, 2025.
Book value per share at March 31, 2026, was $45.41, an increase of $1.22 from year-end 2025.
Capital
As of March 31, 2026, Bank of Botetourt reported its CBLR ratio at 10.56% which meets the required regulatory minimum ratio. This compares to a CBLR ratio of 10.42% at December 31, 2025.
About Bank of Botetourt
Chartered in 1899, Bank of Botetourt is a full-service community bank serving customers through fourteen retail offices across Botetourt, Franklin, Roanoke, and Rockbridge counties, as well as the Cities of Roanoke and Salem and the Towns of Vinton and Rocky Mount in Virginia. The Bank also operates Virginia Mountain Mortgage, its residential lending division, and Botetourt Wealth Management, offering financial planning and investment services. Recognized by Forbes as a multi-year top-ranked bank in Virginia, Bank of Botetourt continues to build on its long-standing tradition of service, strength, and local commitment.
Bank of BotetourtBalance Sheets, unconsolidatedMarch 31, 2026 (unaudited) and December 31, 2025
(unaudited)
(audited)
March 31,
December 31,
2026
2025
Assets
Cash and Due from banks
$ 11,606,000
$ 13,031,000
Interest-bearing deposits with banks
56,858,000
42,117,000
Federal funds sold
918,000
1,282,000
Total cash and cash equivalents
69,382,000
