Buchanan-based Bank of Botetourt announced its unaudited financial results for the three months-ended June 30, 2019.
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The Bank produced net income amounting to $1,104,000 or $0.64 per basic share in the second quarter.
This amount compares to a net income of $1,109,000 or $0.77 per share, for the same period last year.
For the six months-ended the Bank produced net income amounting to $2,258,000 or $1.32 per basic share.
This amount compares to a net income of $2,221,000 or $1.55 per share, for the same period last year.
Net income for the three months ended June 30, 2019 was $1,104,000 compared to $1,109,000 for the same period last year, representing a decrease of $5,000 or 0.5%.
Basic and diluted earnings per share decreased $0.13 from $0.77 at June 30, 2018 to $0.64 at June 30, 2018 as a result of the capital stock raise in December 2018 whereby 275,000 additional shares of common stock were issued.
Net income is consistent between the two time periods.
Total interest income at June 30, 2019 increased $745,000 over the same three month time period of 2018.
Interest expense increased from $768,000 at June 30, 2018 to $1,142,000 at June 30, 2019.
The higher interest expense is a result of both an increase in rate and volume on interest-bearing deposits.
Net interest income increased $371,000 from June 30, 2018 to June 30, 2019.
The provision for loan losses was $400,000 for the three months ended June 30, 2019 as compared to no reserve for the three months-ended June 30, 2018.
The increase in the provision is due to the overall growth in the loan portfolio and increased identified exposure on certain credits.
Net charge-offs were $239,000 at June 30, 2019 as compared to recoveries exceeding charge-offs by 13,000 at June 30, 2018.
Noninterest income increased by $345,000, or 55.4%, for the three months ended June 30, 2019 compared to the same time period of 2018.
The increase is attributable primarily to debit card transaction income, gain on sales of other real estate, and income from subsidiaries.
Noninterest expense increased $330,000 or 11.1% from the three months-ended June 30, 2018 to the three months-ended June 30, 2019.
The increase is primarily related to an increase in salaries, employee benefits, and debit card related expenses.
Income tax expense for the three months ended June 30, 2019 was $304,000 compared to $313,000 one year prior. ■