EXHIBIT 99
FOR RELEASE 9:30 a.m. July 22, 2005
BOTETOURT BANKSHARES, Inc.
19747 Main Street
Buchanan, Virginia 24066
For Further Information Contact:
Michelle A. Alexander, Chief Financial Officer
(540) 591-5013
BOTETOURT BANKSHARES, INC ANNOUNCES RECORD EARNINGS
BUCHANAN, VIRGINIA.July 22, 2005 — Buchanan-based Botetourt Bankshares, Inc. announced today its consolidated financial results for the quarter ending June 30, 2005. Net income for the second quarter amounted to $811,842 which is the highest quarterly income in the history of the company. This amount compares to $503,900 for the same period last year, representing an increase of $307,942 or 61.11%.
Net income for the first sixth months of 2005 amount to $1,562,924. This amount compares to $1,087,720 for the same period of 2004, representing an increase of $475,204 or 43.69%.
At June 30, 2006 total assets amounted to $223,662,764, total deposits were $202,356,652, total loans stood at $176,115,481 and total shareholders’ equity was $20,554,890.
H. Watts Steger, Chairman and Chief Executive Officer of Botetourt Bankshares, Inc., stated “We are pleased to report another record quarterly earnings for our company. The company’s ongoing performance is gratifying after posting the highest record earnings in the history of the organization during 2004. The positive earnings trend for 2005 is reflective of continued strong loan demand, and a higher net interest margin complimented by a rising interest rate environment.”
Botetourt Bankshares, Inc. is the holding company for Bank of Botetourt, which was chartered in 1899. Bank of Botetourt operates eight full service offices in Botetourt, Rockbridge, and Roanoke counties.
Information in this press release contains “forward-looking statements.” These statements involve risks and uncertainties that could cause actual results to differ materially including, without limitation, the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, the risks of changes in interest rates and the effects of competition. Additional factors that could cause actual results to differ materially are discussed in Botetourt Bankshares, Inc.’s recent filings with the Securities and Exchange Commission, included but not limited to its Annual Report on Form 10-KSB and its other periodic reports.
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| (Unaudited) | (Audited) | |||||
June 30, 2005 | December 31, 2004 | |||||
Assets | ||||||
Cash and due from banks | $ | 9,116,334 | $ | 5,789,445 | ||
Interest-bearing deposits with banks | 170,399 | 194,700 | ||||
Federal funds sold | 3,963,000 | 3,782,000 | ||||
Investment securities available for sale | 23,130,054 | 23,752,840 | ||||
Investment securities held to maturity | 2,109,701 | 2,259,662 | ||||
Restricted equity securities | 474,000 | 439,700 | ||||
Loans, net of allowance for loan losses of $2,273,016 at June 30, 2005 and $2,131,534 at December 31, 2004 | 176,115,481 | 168,955,408 | ||||
Property and equipment, net | 5,801,311 | 5,795,172 | ||||
Accrued income | 1,050,421 | 981,683 | ||||
Foreclosed assets | 20,000 | 50,000 | ||||
Other assets | 1,712,063 | 1,346,241 | ||||
Total assets | $ | 223,662,764 | $ | 213,346,851 | ||
Liabilities and stockholders equity | ||||||
Liabilities | ||||||
Noninterest-bearing deposits | $ | 28,630,459 | $ | 27,790,202 | ||
Interest-bearing deposits | 173,726,193 | 164,857,274 | ||||
Total deposits | 202,356,652 | 192,647,476 | ||||
Federal funds purchased | — | — | ||||
Accrued interest payable | 450,341 | 394,572 | ||||
Other liabilities | 300,881 | 848,630 | ||||
Total liabilities | 203,107,874 | 193,890,678 | ||||
Commitments and contingencies | — | — | ||||
Stockholders’ equity | ||||||
Common stock, $1.00 par value, 2,500,000 shares authorized,1,235,668 issued and outstanding at June 30, 2005 and 1,232,745 issued and outstanding at December 31, 2004 | 1,235,668 | 1,232,745 | ||||
Additional paid-in capital | 1,419,367 | 1,361,970 | ||||
Retained earnings | 17,708,615 | 16,491,678 | ||||
Accumulated other comprehensive income (loss) | 191,240 | 369,780 | ||||
Total stockholders’ equity | 20,554,890 | 19,456,173 | ||||
Total liabilities and stockholders’ equity | $ | 223,662,764 | $ | 213,346,851 | ||
Six Months Ended June 30, | Three Months Ended June 30, | |||||||||||
| 2005 (Unaudited) | 2004 (Unaudited) | 2005 (Unaudited) | 2004 (Unaudited) | |||||||||
Interest income | ||||||||||||
Loans and fees on loans | $ | 6,262,159 | $ | 5,306,752 | $ | 3,193,335 | $ | 2,699,446 | ||||
Federal funds sold | 18,582 | 7,085 | 14,217 | 6,961 | ||||||||
Investment securities taxable | 259,801 | 275,538 | 129,197 | 114,034 | ||||||||
Investment securities exempt from federal income tax | 203,419 | 201,944 | 100,574 | 102,249 | ||||||||
Deposits with banks | 2,333 | 1,057 | 1,233 | 486 | ||||||||
Total interest income | 6,746,294 | 5,792,376 | 3,438,556 | 2,923,176 | ||||||||
Interest expense | ||||||||||||
Deposits | 1,828,903 | 1,617,247 | 958,096 | 824,900 | ||||||||
Federal funds purchased | 16,807 | 13,751 | 475 | 1,377 | ||||||||
Total interest expense | 1,845,710 | 1,630,998 | 958,571 | 826,277 | ||||||||
Net interest income | 4,900,584 | 4,161,378 | 2,479,985 | 2,096,899 | ||||||||
Provision for loan losses | 250,000 | 450,000 | 125,000 | 225,000 | ||||||||
Net interest income after provision | 4,650,584 | 3,711,378 | 2,354,985 | 1,871,899 | ||||||||
Non-interest income | ||||||||||||
Service charges on deposit accounts | 278,699 | 250,789 | 140,487 | 137,253 | ||||||||
Net realized gains (losses) on sales of securities | 7,198 | — | — | — | ||||||||
Other income | 492,949 | 328,799 | 225,147 | 174,459 | ||||||||
Total non-interest income | 778,846 | 579,588 | 365,634 | 311,712 | ||||||||
Non-interest expense | ||||||||||||
Salaries and employee benefits | 1,845,241 | 1,583,235 | 913,612 | 803,273 | ||||||||
Occupancy and equipment expense | 402,413 | 361,984 | 197,930 | 195,871 | ||||||||
Other expense | 932,359 | 764,771 | 426,840 | 439,083 | ||||||||
Total non-interest expense | 3,180,013 | 2,709,990 | 1,538,382 | 1,438,227 | ||||||||
Income before income taxes | 2,249,417 | 1,580,976 | 1,182,237 | 745,384 | ||||||||
Income tax expense | 686,493 | 493,256 | 370,395 | 241,484 | ||||||||
Net income | $ | 1,562,924 | $ | 1,087,720 | $ | 811,842 | $ | 503,900 | ||||
