The Bank of Fincastle has reported an unaudited quarterly net income of $216,076 for the second quarter of 2020, with assets of $253.0 million and total liabilities of $224.0 million.
Net loans end the quarter at $207.0 million, up 34.0 percent from the same quarter last year while total deposits ended the quarter at $222.1 million, up 16.8 percent from the prior year.
“Our positive second quarter loan and deposit growth not only reflects the tremendous efforts of our retail and commercial banking staff during the pandemic, but also reflects the impact of the Paycheck Protection Program (PPP) loan fundings,” said President and CEO Scott Steele. The Bank of Fincastle has originated 255 PPP loans totaling $40.9 million in rounds 1 and 2 of the program. Discounting the impact of the PPP loans, the bank has achieved year-over-year loan growth of 7.6 percent.
Steele continued, “Asset quality remains a focus. The bank has not experienced any significant loan losses thus far in 2020 and our asset quality metrics continue to improve. However, given the uncertain economic conditions, we felt it prudent to allocate an additional $150,000 to our allowance for loan losses (ALLL).” At quarter end, the bank’s Allowance for Loan Losses stood at 1.62 percent of total loans (less the SBA guaranteed PPP loans) versus 1.48 percent at March 31, 2020
Commenting on bank operations in the current environment, Steele said, “Part of our Vision Statement is to provide innovative solutions for the evolving needs of our customers, and I believe there has been no better display of this than our quick and immediate response to our customers’ financials needs brought on by the pandemic. Bank operations have continued with minimal disruption, including lobby hours by appointment and strict workplace safety standards such as social distancing requirements, PPE usage and work at home programs. We have adopted new technologies to better enable us to process electronic signatures, hold virtual meetings and work remotely. In addition to participating in the PPP lending program, we have processed numerous requests for temporary payment deferrals to help borrowers who have been economically impacted by the pandemic.” At quarter end, the bank had processed payment deferral requests totaling more than $42.9 million, representing 20.7 percent of the total loan portfolio. As of July 30, $7.9 million, representing 18.6 percent of the deferrals have returned to full payment status.
Key Highlights
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Net income of $216,076 vs. net income of $208,686 for same quarter last year.
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Second quarter Return on Average Assets was 0.35 percent versus 0.39 percent for the second quarter of 2019. Return on Average Equity was 3.00 percent versus 3.21 percent for the same period in 2019.
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Year-over-year net loan growth of 34.0 percent, or 7.6 percent discounting the impact of the PPP loans.
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Year-over-year increase in total assets of 15.5 percent and total deposits of 16.8 percent
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Originated 255 PPP loans totaling $40.9 million in rounds 1 and 2 of the program, with 211 loans, or $9.7 million, in loans less than $350,000.
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Total gross PPP fees are forecast to approximate $977,000.
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Net Interest income and Noninterest income increased 8.48 percent and 52.63 percent respectively.
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Net Interest Margin dropped 12 basis points in the second quarter to 3.67 percent.
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The Bank continues to exceed capital requirements.
For a detailed news release on 2020 second quarter earnings, including income statement and balance sheet, the website at https://www.bankoffincastle.bank/investor-relations/
For additional information, contact Steele at 540-473-2761.
The Bank of Fincastle has been a leading financial services provider in the Roanoke region since 1875, and offers a full range of banking, lending and investment products. Headquartered in Fincastle, the bank has six full-service branches, 13 ATM locations, a 7 a.m. to 7 p.m. drive-through location and offers online deposit account opening, online real-estate and consumer loan applications, online banking, mobile banking and 24/7 telephone banking. The Bank of Fincastle is a Member FDIC, Equal Housing Lender and Equal Opportunity Employer.
