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H. Watts Steger, 111, Chairman and CEO of the Bank of Botetourt, has released the following statement, assuring the public that both his bank and its competitor, the Bank of Fincastle, are safe and sound despite the situation on Wall Street.

His full statement follows:

To the Botetourt County Community:

Without question, we are involved in a period of financial uncertainty unlike any that most everyone has ever encountered in his or her lifetime.  It has reached a point where there is now an overall lack of confidence in the nation’s entire financial system.  In Botetourt County, we are blessed to have two strong community banks, Bank of Botetourt and The Bank of Fincastle, both of which have existed for well over one hundred years.  The fact that both banks were organized in the nineteenth century gives rise to the fact that both banks survived the Great Depression, numerous recessionary periods, the savings and loan crisis of the 1980’s and we continue today to serve the needs of our depositors and our community.  The problems in our industry today have not been caused by the “Main Street” banks, but rather primarily by the irrational lending practices of financial entities not subject to the rigorous regulatory scrutiny which governs our community banks.  Neither Bank of Botetourt nor The Bank of Fincastle have engaged in any subprime lending practices nor does either bank hold questionable mortgage loan pool investments or derivative products in our bank’s investment portfolio.

Both banks are required to maintain significant capital and reserves and both banks are “well capitalized” by FDIC standards, as are 98 percent of all community banks in the country.

Both of our banks exist today to serve the needs of our communities.  We are taxpayers to both Botetourt County and the incorporated towns of Buchanan, Troutville and Fincastle, contributing in excess of $300,000 annually in taxes to our local governments.  Additionally, we are corporate partners to our county’s school system and many cultural organizations in the area, devoting both employee time and effort and also monetary resources to these enterprises that are so crucial to our area’s growth and progress.

Although the two banks are competitors in many ways, we have jointly participated in many loans which have assisted both private and public enterprise.  We also recognize and are proud of the fact that we are two vitally important engines that help drive the economic progress of our county’s commercial and residential growth.

Rest assured that your two community banks in Botetourt County are safe, sound and strong.  Your deposits assist our banks in delivering the resources that are necessary to continue the economic growth that we have enjoyed in this area.  Your support of and confidence in the community bank system is vital to the continued growth of our local economy and I thank you for both that continued support and confidence.

Sincerely,
H. Watts Steger, 111
Chairman and CEO
Bank of Botetourt