The Bank of Fincastle announced this week that it has returned a profit in the second quarter of $17,683, its first profitable quarter since the first quarter of 2015.
The bank has been focused on a return to profitability and second quarter results demonstrate a positive response to its efforts to ensure the bank’s long-term viability, according to an announcement by the bank. The bank continues to make progress with its problem assets, and the ongoing execution of its strategic plan is restoring the health of the financial institution, the announcement said.
The bank also successfully completed a $14.3 million private placement of common stock. The bank issued 7,718,084 shares of common stock at $1.85 per share to institutional and accredited investors. Net proceeds from the offering are estimated to be approximately $13.3 million and will be reflected in the bank’s third quarter financial statements.
Net proceeds from the private placement of common stock have restored the bank’s capital levels to the standards required by federal banking regulations, while providing additional capital to encourage future growth and support general corporate purposes, the announcement said.
Scott Steele, President and Chief Executive Officer, commented, “We are pleased with the results of the bank’s strategic decisions made over the past year, our return to profitability and the response to our capital raise. The successful offering was a vote of confidence by the investment community showing strong support for our bank. This new capital will allow the bank to continue to grow organically and will support the capital needs for our future.”
The bank engaged the investment banking firm of FIG Partners LLC to act as its sole placement agent to assist with the common stock offering. Grady & Associates acted as Placement Agent counsel. The law firm of Cowan Perry, PC acted as bank legal counsel.