The Bank of Fincastle Announces Third Quarter Earnings for 2018

FINCASTLE, Va., Oct. 31, 2018 /PRNewswire/ -- The Bank of Fincastle [SYMBOL: BFTL] has announced its 2018 third quarter financials and reports an unaudited net income of $237,833 for the quarter ended September 30, 2018.

"Our third quarter positive earnings report reflects the continued improvement in our asset quality, non-interest expense reduction, balance sheet management and operational efficiencies," said Scott Steele, President and CEO of The Bank of Fincastle. Steele added, "Our non-interest income is much improved and is driven primarily by the gains on the sale of foreclosure properties and structural changes made to our mortgage company, Colonial Mortgage. Today we have Colonial Mortgage loan originators in three of our branch locations in Fincastle, Daleville and Troutville. We also relocated Colonial Mortgage processing and back office operations to our corporate offices in downtown Fincastle." 

Key highlights include an increase in total assets by $2,008,958 and an increase in total deposits by $1,191,888, since December 31, 2017. Asset quality continues to improve with total nonperforming assets being reduced by 38% during the past twelve months. Net interest income has improved as the Bank continues to grow its loan portfolio.

The Bank's strong capital position exceeds the BASEL III capital requirements. As of September 30, 2018 The Bank of Fincastle reported total capital of 16.53% and tier 1 leverage capital of 12.05%.  Both common equity tier 1 and tier 1 capital ratios were 15.26%.

 Key Highlights

• The Bank has achieved three profitable quarters in a row.
• Increase in total assets by $2,008,958 and an increase in total deposits by $1,191,888, since December 31, 2017
• For the first 9 months of the year, the Bank has achieved a Return on Average Assets of 0.43% and Return on Average Equity 3.51%.
• Asset quality continues to improve. 
• Quarter end 30-89 day delinquencies are 0.37% of the portfolio vs. 0.62% on 9/30/2017.
• Nonaccrual loans are 2.64% of the loan portfolio, an improvement from 3.68% on 9/30/2017.
• OREO as a percentage of total assets has improved from 3.46% at 9/30/2017 to 1.58% at 9/30/2018.
• Quarterly non-interest income was $415,487, an improvement of 64.88% from the same quarter last year.  Non-interest income has improved as our subsidiary businesses Colonial Title Company, LLC and Colonial Mortgage Company, LLC had strong quarterly results.
• Quarterly non-interest expense was $1.85 million for the three months ended September 30, 2018 compared to $1.90 million for the three months ended September 30, 2017. Non-interest expense decreased primarily due to reduced expenses associated with nonperforming loans. The bank had $123,000 in OREO net losses for the three months ended September 30, 2018 as compared to net gains of $896,000 for the three months ending September 30, 2017.
• The bank continues to exceed capital requirements. 

For a detailed news release on our third quarter 2018 earnings, including our income statement and balance sheet please click here or visit our website at https://www.bankoffincastle.bank/investor-relations/

For additional information, please contact Scott Steele, President and CEO, at 540-473-2761.

About The Bank of Fincastle
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. The Bank of Fincastle is a Member FDIC, Equal Housing Lender and Equal Opportunity Employer.  

Information in this press release may contain forward-looking statements that might involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include without limitation, the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, and changes in interest rates.

Media Contact:
Cindy Bailey
Marketing Director
540-966-0248
[email protected]

SOURCE The Bank of Fincastle