Bank of Fincastle Announces 3rd Quarter results
The Bank of Fincastle Announces Third Quarter Earnings for 2020 and Community Support
FINCASTLE, Va. (November 6, 2020) –
“Our essential employees at all levels have accepted the challenges of 2020 with hard work and dedication,” said President and CEO Scott Steele. “We are pleased to report a net income of $512,463, up 70.4 percent, net loans at $213.7 million, up 34.8 percent while total deposits ended the quarter at $225.5 million, up 16.8 percent, all increases from the same quarter last year.” Assets and liabilities were $256.9 million and $227.5 million respectively.
“While adjusting to our new working environment and putting in long hours to support our PPP customers, we began processing over 100 forgiveness applications representing $27.5 million in PPP loans, with 30 of these forgiveness applications already approved,” confirmed Steele. “Discounting the impact of the PPP loans, the bank has achieved year-over-year loan growth of 9 percent.”
The bank conducted its annual commercial loan portfolio stress test in the 3rd quarter whereby internal credit officers put the bank through various adverse economic scenarios to see if regulatory capital could withstand a severe hypothetical downturn. Commenting on the portfolio stress test Steele stated “Our results confirm The Bank of Fincastle is well capitalized and well positioned to withstand a severe economic downturn. I am pleased to see we once again passed our annual loan portfolio stress test.” Consistent with being more encouraged and optimistic about the local economic conditions, allocations to the bank’s loan loss reserve were $100,000, which is less than the 2nd quarter allocation of $150,000. At quarter end, The Bank of Fincastle exceeded all Basel III capital requirements.
The Bank of Fincastle and its employees have continued to support our community throughout the pandemic. The Bank held its annual Hot Dog Day community appreciation in September as a curbside event where more than 500 community members received a grilled hot dog and other refreshments. In October, The Bank of Fincastle Fall Run was held jointly with the Botetourt Rotary Club as a virtual 5k Run/Walk. $4,750 was raised by the rotary to benefit Southwest Virginia Feeding America, St. Mark’s Food Pantry and Solomon’s Mission. Funds from the race each year provide scholarships to students in Botetourt County. “We were pleased to present Bank of Fincastle Fall Run scholarships to four outstanding students this quarter; Carly Webster and Ethan Webster from LBHS and Jessica Link and Camden Powell of JRHS,” said Cindy Bailey, Marketing Director and Fall Run Coordinator.
Key Highlights
· Net income of $512,463 vs. net income of $300,683 for same quarter last year
· Third quarter Return on Average Assets was 0.80 percent versus 0.53 percent for the third quarter of 2019.
· Return on Average Equity was 6.90 percent versus 4.41 percent for the same period in 2019.
· Year-over-year net loan growth of 34.8 percent, or 8.8 percent discounting the impact of the PPP loans
· Year-over-year increase in total assets of 20.1 percent and total deposits of 16.8 percent
· Originated 255 PPP loans totaling $41.8 million in rounds 1 and 2 of the program
· Total gross PPP fees are forecasted to approximate $996,000, with earnings recognition amortized through April 2022.
· Net Interest income and Noninterest income increased 12.81 percent and 21.94 percent respectively.
· Net Interest Margin increased two basis points in the second quarter to 3.69 percent.
For a detailed news release on the 2020 third quarter earnings, including the income statement and balance sheet visit the website at https://www.bankoffincastle.bank/investor-relations/
–Submitted by Cindy T. Bailey, Marketing Director, Bank of Fincastle
