BUCHANAN, Va., Oct. 28, 2021 /PRNewswire/ — Buchanan-based Bank of Botetourt (OTCPK: BORT) announced today its unaudited financial results for the three and nine months-end September 30, 2021. The Bank produced net income amounting to $1,816,000 or $1.04 per basic share in the third quarter. This amount compares to a net income of $1,095,000 or $0.64 per share, for the same period last year, an increase of $721,000 or 65.9%. For the nine months-ended the Bank produced net income amounting to $5,378,000 or $3.10 per basic share. This amount compares to a net income of $3,305,000 or $1.92 per share for the same period last year, an increase of $2,073,000 or 62.7%.
At September 30, 2021, select financial information and key highlights include: Return on average assets of 1.12%
Return on average equity of 12.76%
Book value of $33.71
Total deposit growth of 10.0%
Total asset growth of 9.6%
Community Bank Leverage Ratio of 9.09%
Strong liquidity position
Net interest margin of 3.02% at September 30, 2021 compared to 3.07% one year prior.
Outstanding Paycheck Protection Program ("PPP") loans of $26.2 million reported at December 31, 2020 decreased to $0.4 million at September 30, 2021 after receiving SBA forgiveness on $25.8 million. The Bank recognized $747,000 in revenue from the forgiven loans.
In 2021, the Bank participated in the next round of the SBA’s PPP Program, generating $18.0 million new PPP loans. At September 30, 2021, $8.9 million had been forgiven by the SBA leaving portfolio balance of $9.1 million. The bank recognized $523,000 in revenue related to this tranche of PPP lending. At quarter-end, remaining PPP loan balances from both rounds totaled $9.5 million with $629,000 in deferred revenue. As a result of the solid financial performance, the Board of Directors voted to pay the $0.18 per share quarterly dividend, or $0.72 per share annualized which is payable on November 19, 2021 to shareholders of record November 12, 2021. President & CEO, G. Lyn Hayth, III stated, "Our third quarter financial results continued to exceed budget expectations. SBA forgiveness of PPP loans and the subsequent revenue recognition contributed to our successful financial results. In addition, strong and consistent revenue generated by our mortgage loan activity has been a contributor to 2021 earnings." Results of Operations Net income for the three months ended September 30, 2021 was $1,816,000 compared to […]
