Bank of Botetourt (OTC:BORT), which is based out of Buchanan, is expected to be in focus among investors this morning after it announced its unaudited financial results for the first fiscal quarter that ended on March 31, 2024. Hence, it could be a good idea for investors to consider taking a closer look at the numbers reported by the bank. The company announced that it had recorded net income of $1,828,000, which worked out to earnings of $0.88 per basic share. However, that reflected a sharp decline from the $2,294,000 in net income that the Bank of Botetourt posted in the prior-year period.
At the time, earnings per share worked out to $1.12 per share. The decline in net income had been brought about by interest expenses of $2,240,000 and employee salary and benefits of $177,000. However, those were offset to some degree by $2,140,000 in fees and interest on loans and the decline of provision for credit losses by $206,000. In the prior-year period, provisions for credit losses were $272,000, but in the first fiscal quarter of 2024, the provisions were only $660,000.
As of the end of the first fiscal quarter, the net loans had gone up by 2.21%. The interest expense for the quarter had been $3,676,000 as opposed to $1,436,000 at the end of the prior-year quarter. The higher interest expense had been a function of the higher interest rates that had been paid on balances of interest-sharing deposits in comparison to the same period in 2023. The non-interest income earned by the Bank of Botetourt went down by 11.5% on a year-on-year basis to $1,183,000 as opposed to $1,336,000 in the corresponding period in 2023. It may be a good time for investors to perhaps keep a keen eye on the Bank of Botetourt stock.
